Arabian Gulf chemical industry must collaborate in supply chain to remain globally competitive

GPCA releases study results ahead of the 10th GPCA Supply Chain Conference

Dubai, United Arab Emirates, 3 May 2018 – 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.

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 a 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.

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 per cent of the total chemical output by volume in the Arabian Gulf. According to the survey, 52.6 per cent of respondents see potential in securing various competitive advantages through intensifying collaboration.
A staggering 95 per cent of the respondents said their organization is taking strategic steps to improve collaboration with Logistics Service Providers (LSPs), with 84.2 per cent seeing collaboration with LSPs as a crucial tool to enhance operational efficiency and optimize costs. Additional 26 per cent of respondents identified mutual benefits and risk sharing as a driver for collaboration.

Dr. Abdulwahab Al Sadoun, Secretary General, GPCA, commented: “The survey results testify to the clear commitment by GPCA member companies to intensify collaboration with supply chain partners, particularly LSPs. With the pace of industry change accelerating in the coming years, collaboration throughout the value chain will be particularly important to realize and maintain the competitive advantage of the chemical industry in the Arabian Gulf.”

“As senior industry leaders prepare to converge in Dubai on 9-10 May for the 10th GPCA Supply Chain Conference, collaboration is coming into acute focus, confirming the need for more cost efficient, streamlined and collaborative supply chains which drive value creation and bottom line results.”

The survey also highlighted trust, leadership commitment, talent, communication, asset sharing and technology collaboration as key components to maximizing the potential of collaboration within supply chain partners. Technology especially enhances data availability, visibility and the agility of supply chains.

The full report will be released during the 10th GPCA Supply Chain Conference taking place in the InterContinental, Dubai Festival City, UAE, under the theme ‘Collaboration for growth: A cultural transformation’.


About the Gulf Petrochemicals & Chemicals Association
The Gulf Petrochemicals and Chemicals Association (GPCA) was established in 2006 to represent the downstream hydrocarbon industry in the Arabian Gulf. Today, the association voices the common interests of more than 250 member companies from the chemical and allied industries, accounting for over 95 percent of chemical output in the GCC. The industry makes up the second largest manufacturing sector in the region, producing over USD 108 billion worth of products every year.

GPCA supports the petrochemical and chemical industry in the Arabian Gulf through advocacy, networking and thought leadership initiatives aimed at helping member companies to connect, share and advance knowledge, contribute to international dialogue, and become prime influencers in shaping the future of the global petrochemicals industry.

Committed to providing a regional platform for stakeholders from around the world, GPCA manages six working committees – Plastics, Supply Chain, Fertilizers, International Trade, Research and Innovation, and Responsible Care – and organizes six world-class events each year. The association also publishes an annual report, regular newsletters and various other industry reports.


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