I - RISK MANAGEMENT
Petrochemicals are a pillar of the global economy. Many sectors rely on the constant availability of petrochemical substances for manufacturing and preserving rhythm whilst maintaining a low level of risk in the transportation of these (often unstable) materials on a regular basis is of paramount importance to establish and maintain a dependable petrochemical supply chain.
A single incident will create a ripple effect on the entire supply chain, causing disruption and major losses for companies all along the production and distribution line and tarnishing their image. Risk management plans are key to analyzing, understanding and mitigating risks as much as possible in order to avoid such scenarios.
The first step to build resilience and reduce both the frequency and severity of risks along the supply chain is to pinpoint root causes. This can be done with AI. Intelligent routing systems and real-time visibility are now giving manufacturers the means to study their supply chain’s performance and safety by aggregating data collected from past deliveries and incorporating external factors such as terrain, weather, and traffic. These solutions can analyze itineraries in depth and highlight correlations between past incidents, allowing supply chain managers to rethink itineraries based on concrete data rather than theoretical risks.
II - DEMAND FORECASTING & SUPPLY CHAIN AGILITY
Given the industry’s significance economically, developing and maintaining supply chain agility is crucial for businesses evolving within the petrochemical sector. If demand for petrochemicals isn't showing any sign of slowing down (It has, in fact, experienced constant growth and is set to account for more than a third of the growth in world oil demand by 2030), pricing for energy and raw materials is notoriously unstable. Industries dealing with petrochemicals must deploy strategies to gain in supply chain agility in order to stay ahead of the competition.