As the chemical industry continues to grow explosively, supply chains grow more complex and are therefore more vulnerable to disruption. The increasingly complex networks must continually adapt in response to evolving demand and changes of growing international trade. Customers want to keep costs down and inventories low, driving the industry toward more frequent shipments of smaller volumes of end-product, delivered just-in-time to customer sites. Chemicals companies must adapt to growing demands while also navigating a complex web of national and international regulations.
Modern risk tools can help address the challenges posed by complexity, supply chain vulnerability and regulation. The risk data collected by these tools allows companies to assess the overall level of risk at every point in their networks and be able to understand the specific nature of those risks at a very granular level. To address the challenges posed by complexity, supply chain vulnerability and regulation, chemicals companies must continually strengthen their risk management processes and capabilities through digitalization.