Chemical Companies Balance the Fine Line Between Risk and Opportunity

Vigilance is quickly becoming a critical theme for most chemical companies, especially as we head into a new decade of disruptive opportunities and risks.

Some of these opportunities and risks include:

  • New business models and optimized operations through predictive models and machine learning
  • Widespread adoption of business platform technologies that are expanding industry boundaries to create collaborative, integrated, and innovation-driven ecosystems
  • Continuous threats from high capital costs, fluctuating raw material prices, volatile geopolitical climates, mass commoditization, and an overwhelming amount of regulations

In a perfect world, confronting these challenges would be as simple as embedding intelligence, such as machine learning, into business systems and processes. Unfortunately, today’s industry realities require so much more – namely, new sources of value and unique skills that can transform the value chain and business models.

There is so much at stake throughout the industry. But for many SAP customers, the SAP Model Company service for Chemicals is accelerating and simplifying the path to competitive business transformation.

What Is SAP Model Company for Chemicals?

SAP Model Company for Chemicals is a collection of insights, knowledge, and lessons learned, acquired through decades of experience in working with companies from the chemicals industry. The service is an evolving portfolio of the latest reference solutions, industry best practices, and master data – all designed to provide the knowledge and skills that chemicals businesses need to optimize end-to-end processes and sharpen decision-making.

SAP Model Company for Chemicals – Value proposition and scope

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SAP Model Company for Chemicals – Value proposition and scope

For many customers, SAP Model Company for Chemicals is a critical component in their accelerated conversion to SAP S/4HANA. The service boasts a library of model company offerings that covers a large variety of core processes. It also allows customers to experiment and test new use cases in order to inspire innovative change in areas such as product development, safety, and stewardship; manufacturing and procurement; sales, logistics, and asset management; and IT monitoring. Industry-specific topics are also supported, especially batch traceability, active ingredients subcontracting, quality control, and regulatory compliance.

SAP Model Company for Chemicals is also helping  customers reimagine their operational processes. By providing a blueprint for choosing and implementing the right intelligent technologies and analytics capabilities for their businesses, customers are experiencing considerable changes in product safety and stewardship as well as tank-level monitoring.

As new innovations continue to be added to the model company portfolio, more efficient practices are introduced into functions such as compliance, sales, management of safety data sheets, and dangerous goods management.

Rediscover Your Edge with Unprecedented Business Value and Intelligence

The beauty of SAP Model Company for Chemicals is the potential to turn every business improvement into an opportunity that will shape success for years to come. Whether streamlining existing processes, optimizing decision-making, boosting revenue and profits, improving customer satisfaction, or capitalizing on emerging opportunities, chemical companies can set the priorities that drive the right changes with the right digital tools.


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Maurice Carl Zettel is a business process consultant for SAP Digital Business Services.