GPCA releases study results ahead of the 10th GPCA Supply Chain Conference
Collaboration in supply chain will be absolutely key to retain the global competitiveness of the Arabian Gulf chemical industry. This is according to a new report to be released by the Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Arabian Gulf region, ahead of the 10th GPCA Supply Chain Conference to be held in Dubai on 9 and 10 May.
With over 83% of GCC petrochemical output destined for export to over 100 countries worldwide, the industry has the longest supply chain on a global level, making supply chain efficiency crucial factor for maintaining the industry’s competitive advantage.
Cost optimization will be particularly important as the average cost associated with GCC chemical supply chains represents about 30% of landed product prices, which has a significant impact on chemical companies’ bottom line.
Survey supports collaboration
The report is based on findings of the GPCA Supply Chain Collaboration Survey 2018, which gauged the views of 19 GPCA member companies who collectively account for 75% of the total chemical output by volume in the Arabian Gulf. According to the survey, 52.6% of respondents see potential in securing various competitive advantages through intensifying collaboration.
A staggering 95% of the respondents said their organization is taking strategic steps to improve collaboration with Logistics Service Providers (LSPs), with 84.2% seeing collaboration with LSPs as a crucial tool to enhance operational efficiency and optimize costs. Additional 26% of respondents identified mutual benefits and risk sharing as a driver for collaboration.
“The survey results testify to the clear commitment by GPCA member companies to intensify collaboration with supply chain partners, particularly LSPs,” commented Dr. Abdulwahab Al Sadoun, Secretary General, GPCA.
