Overview of the Pulp and Paper Chemicals Industry
The global pulp and paper chemicals industry is expected to proliferate in the coming years owing to the rising demand for specialty papers in packaging as well as printing applications. Recycling in the paper industry increases the demand for different specialty chemicals; thereby, driving the pulp and paper chemicals market. Also, favorable industrial production activities in developing countries strengthen the prospects of the pulp and paper chemical industry. Moreover, the increasing literacy rate especially in emerging economies, such as India, and rising demand for papers with high print performance and quality are expected to drive the pulp and paper chemicals industry.
Let’s look at some of the fundamental factors that will influence the growth prospects of pulp and paper chemicals industry in the coming years.
- New raw materials: Plants and grasses should be genetically altered and strategically sourced to reduce pulping costs, unwanted waste products, and maturation times; to enhance desirable fiber properties and yield, and to convert annual growth cycles to perennial. Also, one must keep track of the supply chain risk involved in the sourcing of these new raw materials.
- New machinery and processes: In this competitive environment, there is a rare time-window to design manufacturing equipment from the ground up and to incorporate modern technological advances. For instance, the development of high-power, solid-state electronics has made the generation of intense ultrasonic and microwave fields practical and economical. These technologies could help in redesigning pulping and papermaking processes.
These factors are forcing companies operating in the pulp and paper chemicals industry to leverage the use of supply chain analysis to implement an end-to-end follow-up process to resolve any discrepancy across the supply chain. The supply chain analysis solutions also help firms operating in the pulp and paper chemicals space to devise cost-effective and best-in-class product and service offerings to the customers and increase overall profitability.
The Business Challenge and Journey
Our client, a leading player in the pulp and paper chemicals industry was facing serious issues of equipment and capacity shortages. Moreover, a significant increase in plant capacity and volume growth, coupled with a lack in equipment and vessel capacity, meant the client needed a robust, flexible, and a reliable supply chain to maintain their service levels. Therefore, to cope with these growth and capacity issues, the pulp and paper chemicals client worked closely with SpendEdge.
To help the client overcome their supply chain issues, the supply chain analysis experts at SpendEdge, tailored a comprehensive research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.
During the course of this engagement, the pulp and paper chemicals client was able to analyze their existing domestic distribution network. Additionally, the client gained actionable insights into the scope and deliverables, before choosing an export transloading solution. This also helped them their distribution network less dependent on equipment and vessels.
Key questions answered in this supply chain analysis engagement
The supply chain solution helped the pulp and paper chemicals client develop a robust, flexible, reliable supply chain to maintain their service levels. Furthermore, the client saved USD 0.6 million in logistics costs and eliminated 4.4 days each year from its supply chain.