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Integrated Business Planning for the Chemicals, Oil and Gas Industry



Chemical Industry Current Market Trends


The chemical industry is being driven by four critical forces. Chemical companies need to drive real-time insight, operational excellence, and sustainable product and process innovation to secure profitable growth


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Chemical Industry Challenges

Global economic conditions, volatile prices for raw materials and energy and increased competition to conspire to disrupt the chemical industry landscape. Leading chemical firms must rise to meet these challenges and streamline their operations while continuing to innovate.


  • Product Innovation and Integrity:

        Fragmented product innovation processes and lack of product-centric data yields high costs and delays in delivering new products to market

  • Manufacturing:

      Inconsistent data models and lack of real-time insight into plant floor data leads to inefficient use of manufacturing assets and increased operational risk

  • Supply Chain Management:

        Missing real-time visibility into supply chain events increases supply chain costs and reduces delivery performance

  • Sales and Marketing:

        Poor customer segmentation and pipeline visibility as well as inconsistent pricing policies cause lost revenue and margin


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Critical Success Factors for Effective Integrated Business Planning and Execution


Chemical enterprises need to be agile and better aligned to meet the challenges of today and the future

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New SAP Technology: Enabler of Next-Generation Applications and Capabilities


Next generation SAP solutions built on new SAP technology enable the required capabilities to support integrated planning and execution and transform the company to meet the challenges of today and the future. This is accomplished with:

  • SAP HANA Platform- Foundation for Run Simple, enabling a unified data model, high performance, and real-time analytics on transactional system with predictive analytics
  • An enhanced user interface with SAP Fiori and Excel Front End
  • Consumer Grade Collaboration with SAP JAM

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Transform with SAP


Next generation SAP Solutions on SAP HANA have become the innovation engine and foundation for transforming enterprises to meet the challenges of today and the future. The business benefits from integrated business planning and execution are incredible, with notable statistics shown below:


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Why SAP?

SAP helps the world run better and improves people’s lives by offering solutions to the toughest business challenges… this is what we bring to chemical companies.

We are the market leader in enterprise software with more than 282 000 customers across 199 countries With SAP’s solutions and services our customers stay ahead of trends, make better decisions faster and innovate through simplification.

Our chemical solution portfolio provides:

  • A comprehensive end to end solution on a modern architecture
  • Deep industry experience and customer base
  • Excellent customer reference with tangible results
  • Platforms for the 21st century, innovations to support your business model – on premise, in the cloud, or through a hybrid model

97 of the Top 100 Chemical Companies run SAP:

  • Gain 100 best practice business processes
  • Use our “best run chemicals” maturity model
  • Benefit from our chemical industry network
  • Get access to industry tailored consulting and value engineering services

Our inspiration: “We’ve remained focused on the success of our customers- they are at the heart of our ambitions. The passion of SAP’ employees has brought amazing momentum. Our best ever financial results are a testament to our strategic direction, our customer orientation, and our world class employees.” Bill McDemott, CEO, SAP


Key Differentiators of SAP IBP for the Chemical, Oil and Gas Industry


  • Ability to model and plan for Storage Capacity Scenarios
  • Financial, Unit and rapid “What If” Scenario Planning
  • Complex supply chain Analysis:
    • Finished Goods to Intermediates to Raw Materials
    • Multi-stage
    • Handles all Demand and Supply Complexities
  • Demand Variability Analytic (Seasons, Frequent, Intermittent)
  • Network Visualization
  • Cross Functional Collaboration through SAP JAM
  • Seasonal Scenarios
  • Inventory and Demand Driver Analysis
  • Strong User Group Community


Additional Material


  • Sapphire Integrated Business Planning and Cloud for Customer- Innovation for Chemicals | Blog |
  • Retro Integrated Business Planning | Blog | 2015
  • Key Takeaways from Sapphire 2015 | Blog
  • Customer Implementation Story – Albemarle Recording | PDF


Learn More


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