Chemicals - Chemical Sourcing, Chemical Supply Chain Management, Inventory Management

The global chemical industry is witnessing several changes in the form of new trends and challenges, such as:

Globalization: Expansion into emerging geographies; restructuring and consolidation are leading to increased pressure on margins, growth, change management, costs and portfolio rationalization.
Fluctuating raw material prices and global supply chain: resulting in high chemical inventory (raw materials and finished goods), ineffective procurement and disintegrated supply chains.
Strict industry regulations: Continued focus on international reporting standards and increasing need for standardization of Environmental Health and Safety (EH&S) in emerging markets
while producing at a lower total cost of operations and optimized utilization of assets. from new Asian players and entry into growing markets such as China and India.

These challenges require chemical companies to constantly innovate, increase responsiveness and agility, and grow profitably. Overall, they constantly face challenges in managing a global organization while producing at a lower total cost of operations and optimized utilization of assets.

Genpact helps chemical companies innovate and build supply chain processes to support expansion into new growth economies. Combining our process acumen with analytics and technology, we help clients intelligently unlock revenue opportunities, improve operational effectiveness and maximize ROI from capital assets. Integration of acquisitions is made simpler and faster by leveraging our process re-engineering expertise.

Key Differentiators

Deep process expertise coupled with a highly skilled workforce in Lean and Six Sigma
Rich Heritage – Former GE company – Significant experience working with process and discrete manufacturing industries
Strong governance and customer centric model – High customer satisfaction ratings (Net Promoter Score)
Global company providing services from multiple geographies – we can operate 24x7 and support nearly every country in the world
Expertise and experience with both suppliers (Oil and Gas) and end-user industries (such as plastics, petrochemicals, and polymers)

Genpact provides a comprehensive suite of BPO, Analytics and IT services and solutions to chemical companies:

Enterprise Offerings

Smart Enterprise Processes (SEP^SM) is Genpact’s proprietary business process management framework which can make enterprises more competitive and intelligent. For more details on the different SEP suites, click here
Smart Decision Services
- Analytics and Research - Delivers insights and intelligence to help companies make smarter decisions and address challenges around regulations, risk and growth
- Business Process Re-engineering - Drives chemical process optimization and ongoing effectiveness through the Global Business Services model
Technology Management - Our end-to-end solutions and proprietary process driven tools across Enterprise Application and IT Infrastructure Management help chemical companies maximize their IT investments and operational efficiencies.

Finance

Finance and Accounting Services - End-to-end solutions for the financial supply chain including accounts payable, order to cash, record to report and general ledger
Recovery Audit Services - Post-payment audit to recover excess payment from suppliers
Product Cost Accounting - provides a holistic view of product cost and the related variance analysis enabling fact-based and granular decision making resulting in improved margins

Risk

Enterprise Risk Management - End-to-end risk management solutions across market risk, credit risk and operational risk
Risk Analytics – including contract risk, profitability analysis, credit and market risk for better decision making

Supply Chain

Inventory optimization - helps chemical companies reduce working capital and salvage
Supply Chain Decision Services - help reduce cost and working capital, while improving service levels by optimizing complete chemical supply chain
Logistics Analytics - enhances visibility and optimization across the logistics network including design, distribution centers, carrier sourcing and metrics rationalization
Procurement - End-to-end solutions across both indirect and direct procurement materials, focusing on measurable improvements in compliance, total cost of ownership (TCO), working capital, material and services availability and user satisfaction.

A diversified chemical manufacturing company wanted to optimize inventory and provide products faster to customers. Genpact implemented smarter analytics in the areas of demand and supply planning, inventory management and logistics. This resulted in $3.4 million reductionofaged chemical inventory and a 41 to 35 days reduction in manufacturing lead time.
A global chemical company was not able to effectively manage its on-hand inventory, impacting the bottom line. Genpact assessed their current order to delivery process, applied Six Sigma and Lean methodologies to identify improvement areas and implemented smarter processes and analytics. Result: 27% reduction in on-hand chemical inventory carrying costs, increased inventory visibility and standardized global processes. Read the full case study
A leading specialty chemicals and materials company had cash stuck in the accounts payable process. Genpact designed a new payment strategy, standardized commercial terms and implemented new workflows for dispute resolution. This helped the client realize $18 million cash flow and reduce past due by 51%.
A leading petrochemical manufacturer faced significant challenges in payment processing and in implementing a new payment application. Genpact conducted a payment process audit and analyzed the payment in transit (PIT) account. Result: Strengthened payments process, identified € 1 million working capital blockage and duplicate payments worth €1.3 million. Read the full case study
For a leading US-based chemical manufacturer running on SAP 3.1i, a migration to the latest version of SAP with Unicode support was an essential requirement to meet environmental health and safety (EH&S) regulatory compliance deadlines. Globally, it was a first of its kind – speedy, multi-generational leap from SAP 3.1i to SAP ERP 6.0 for which Genpact took just 10 months and within budget and with no disruption to the client’s business. In addition, Genpact saved both time and significant client dollars for the fully supported SAP ERP 6.0 with SAP EHS Management. Read the full case study