Chemical Supply Chain Collaboration

Chemical Supply Chain Collaboration and Risks Interview

Collaborate to Cope with Risk in Chemical Supply Chain

Guillermo Fumero is the Head of Supply Chain & Procurement for the BU Pigments division at Clariant. Like many other industries, he is finding that the greatest challenge when it comes to coping with shocks in the supply chain is not the physical, but the economic.

In this video interview filmed at LogiChem, Guillermo shares his strategy behind mitigating chemical supply chain risks and shocks and demonstrating how supply chain collaboration can influence decisions, improve ROI cash management and help you with aligning commercial and Supply Chain activities, including segmentation customer interaction models.

Intervier: Perhaps if we could just start things off by maybe giving us a quick introduction to yourself and Clariant International.
Guillermo: My name is Guillermo Fumero. I'm responsible for supply chain and procurement for the BU pigments of Clariant International. Clariant is a chemical group based in Switzerland with around about seven billion Swiss Francs revenue and 22,000 employees at present in over one hundred countries all over the world.

Interviewer: Now, you are going to be speaking a little later on about volatility and I suppose risk management and new strategies. Perhaps if you could tell us a little bit more about that.
Guillermo: Well, look. I think that all the industries, but especially in chemicals, we have seen a very bouncy time in the last years. And starting with the crisis of 2009 and then going over the last years of recoveries and again a little bit of crisis here and there, so we see a lot of volatility in the market. And this change especially in supply chain, the rules we have to apply in order to be much more effective to manage that.

Interviewer: So what are the specific risks that you're seeing come up? And what are some of those strategies that you are employing in order to overcome those risks?
Guillermo: Well of course the risk is on the one side that you burn cash in the wrong moment. On the other side is the risk that you overdo your sort of restrictions of cash, your location of inventories and then you dissatisfy your customers. So somehow, it's a very risky balance between your financials and your service level commitments.

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