Chemical/Petroleum

Supply Chain Planning for the Chemical/Petroleum industry involves the consideration of numerous challenges, including:

• Managing raw material supply and cost volatility
• Impact of capital expenditures on transportation and inventory
• Managing production plans and capacity utilization
• Factoring exchange agreements with competitors
• Warehousing and transportation of hazardous products
• Incorporating green supply chain initiatives and regulations

Many Supply Chain Guru® features have been designed to specifically support the challenges facing the Chemical/Petroleum industry. For instance, the concept of exchange agreements with competitors can be modeled directly, as can pipeline operations. Network Optimization is often used for production and sourcing analysis to identify the lowest supply chain costs while maintaining overall service goals.

Analysts can model Transportation Assets and Containers to determine the optimal number of assets (rail cars, ships, containers, etc.) and the proper positioning throughout the network. Network and Inventory Optimization combined can be used for raw material recipe analysis to understand the implications of different recipes on production, logistics, and inventory costs.

Supply Demand Balancing evaluates the tradeoffs between production, transportation, warehousing, and inventory related costs and capacities to meet service and demand goals. GHG Emissions Analysis can be used to identify cost tradeoffs associated with reducing greenhouse gas emissions.