Supply Unchained: Building Resilient and Sustainable Chemical Networks – Insights for Global Capability Centres | KPMG & Han Digital










Supply Unchained: Building Resilient and Sustainable Chemical Networks – Insights for Global Capability Centres

Published: June 2024 | Author: Your Company Name

Introduction: The Imperative for Resilient and Sustainable Chemical Supply Chains

The chemical industry stands at a pivotal crossroads, facing unprecedented challenges and opportunities in an era marked by global disruptions, regulatory shifts, and the urgent need for sustainability. As highlighted in KPMG’s recent article, “Supply unchained: Building resilient and sustainable chemical networks”, the sector must rethink its supply chain strategies to ensure both resilience and sustainability.

For professional services companies establishing Global Capability Centres (GCCs), understanding these evolving dynamics is critical. Talent, leadership, and digital transformation are at the heart of this shift, and partners like Han Digital, with their deep market intelligence and senior leadership networks, are uniquely positioned to help organizations navigate this transformation.

Understanding the New Landscape: Key Drivers of Change in Chemical Supply Chains

The chemical industry’s supply chains have traditionally been complex, global, and heavily reliant on just-in-time logistics. Recent disruptions, including the COVID-19 pandemic, geopolitical tensions, and climate-related events, have exposed vulnerabilities that threaten business continuity and growth.

  • Geopolitical Instability: Trade wars, sanctions, and shifting alliances have disrupted established supplier relationships and increased the risk of supply chain interruptions.
  • Regulatory Evolution: Increasingly stringent environmental regulations, such as the European Green Deal and the US Inflation Reduction Act, are pushing chemical companies to decarbonize and adopt circular economy principles.
  • Technological Disruption: Digitalization, artificial intelligence, and advanced analytics are transforming how supply chains are managed, monitored, and optimized.
  • Talent Scarcity: The need for new skills in sustainability, digital transformation, and risk management is reshaping talent strategies across the sector.

According to KPMG’s 2024 research, 75% of chemical executives cite supply chain resilience as their top strategic priority, with 68% investing in sustainability initiatives to future-proof their operations.

Resilience and Sustainability: Twin Pillars of the Future Supply Chain

Resilience and sustainability are no longer optional—they are business imperatives. As KPMG’s article underscores, companies must build “shock-proof” networks that can withstand disruptions while meeting environmental and social expectations.

Building Resilience

  • Supplier Diversification: Reducing dependence on single-source suppliers and nearshoring critical inputs to mitigate geopolitical and logistical risks.
  • Advanced Risk Management: Leveraging predictive analytics and scenario planning to anticipate and proactively address potential disruptions.
  • Digital Twin Technology: Creating virtual models of supply chains to simulate and optimize responses to real-world events.

Driving Sustainability

  • Decarbonization: Investing in green chemistry, renewable energy, and low-carbon logistics to reduce greenhouse gas emissions.
  • Circular Economy: Designing products and processes for reuse, recycling, and resource efficiency.
  • Transparent Reporting: Implementing end-to-end traceability and ESG reporting to meet stakeholder and regulatory demands.

Recent research from McKinsey (2024) affirms that companies integrating resilience and sustainability into their supply chains achieve 20% higher operational efficiency and 15% greater shareholder returns.

The Role of Global Capability Centres (GCCs) in Chemical Supply Chain Transformation

GCCs are emerging as strategic hubs for innovation, digital transformation, and talent development in the chemical sector. By centralizing critical functions such as supply chain management, procurement, analytics, and sustainability reporting, GCCs enable chemical companies to respond faster to market changes and regulatory requirements.

  • Centralized Data Analytics: GCCs leverage advanced analytics and AI to optimize supply chain operations, forecast demand, and identify risks in real time.
  • Process Standardization: By harmonizing processes across global operations, GCCs drive efficiency, compliance, and cost savings.
  • Talent Incubation: GCCs serve as talent magnets, attracting and nurturing experts in digital, sustainability, and supply chain management.

A 2024 Deloitte survey found that 60% of chemical companies are expanding their GCC footprint to accelerate digital transformation and sustainability initiatives.

Talent: The Critical Enabler of Resilient and Sustainable Supply Chains

The shift towards resilient and sustainable supply chains is fundamentally a talent challenge. Organizations need leaders and teams with expertise in digital technologies, sustainability, risk management, and stakeholder engagement. The competition for such talent is intense, especially in the context of GCCs, which are often located in global talent hotspots.

Key Talent Strategies for Chemical GCCs

  • Strategic Workforce Planning: Identifying future skill needs and building robust talent pipelines to ensure continuity and agility.
  • Upskilling and Reskilling: Investing in continuous learning programs focused on digital, ESG, and supply chain innovation.
  • Diversity and Inclusion: Building diverse teams to foster creativity, resilience, and better decision-making.
  • Leadership Development: Equipping senior leaders with the skills to drive transformation and manage complex, global supply chains.

According to a 2024 Gartner report, companies with advanced talent strategies are 2.5 times more likely to achieve their supply chain resilience and sustainability goals.

Han Digital: Bridging the Talent Gap for Chemical Supply Chain Transformation

Han Digital stands out as a strategic partner for professional services companies and chemical organizations establishing or expanding GCCs. With a unique understanding of the talent landscape and deep connections with senior leadership across industries, Han Digital enables organizations to build high-performing teams that drive supply chain resilience and sustainability.

How Han Digital Adds Value

  • Market Intelligence: Han Digital’s proprietary research and talent mapping provide actionable insights into emerging skill trends and talent availability in key global locations.
  • Leadership Network: Their extensive connections with senior leaders help organizations attract top talent and build leadership teams capable of driving transformation.
  • Customized Talent Solutions: Han Digital designs bespoke talent acquisition and development strategies aligned with the unique needs of chemical GCCs.
  • End-to-End Support: From workforce planning to onboarding and retention, Han Digital partners with organizations throughout the talent lifecycle.

For example, Han Digital recently supported a leading chemical company in establishing a GCC in India, sourcing digital supply chain experts and sustainability leaders who played a pivotal role in the company’s successful transformation.

Case Study: Building a Resilient and Sustainable Chemical GCC

Consider the journey of a global chemical major that partnered with Han Digital and KPMG to transform its supply chain through a new GCC in Asia. The company faced significant supply chain disruptions during the pandemic and recognized the need for a more resilient, sustainable approach.

  1. Assessment: KPMG conducted a comprehensive supply chain risk and sustainability assessment, identifying critical vulnerabilities and opportunities for improvement.
  2. Talent Strategy: Han Digital mapped the talent landscape, identifying top digital and sustainability experts in the region, and facilitated senior leadership hires.
  3. Implementation: The GCC centralized supply chain analytics, ESG reporting, and supplier management, leveraging digital tools and standardized processes.
  4. Outcomes: The company reduced supply chain disruptions by 30%, improved ESG performance, and achieved significant cost savings.

This case underscores the importance of integrating supply chain, sustainability, and talent strategies, supported by expert partners like KPMG and Han Digital.

Best Practices for Professional Services Companies Establishing GCCs

For professional services companies supporting chemical clients, the following best practices are essential for building resilient and sustainable supply chains through GCCs:

  • Holistic Risk Management: Adopt a comprehensive approach to risk, encompassing geopolitical, environmental, technological, and talent-related factors.
  • Integrated Digital Platforms: Invest in digital tools that enable real-time visibility, predictive analytics, and agile decision-making across the supply chain.
  • ESG-Driven Culture: Embed sustainability into the organizational DNA, with clear targets, transparent reporting, and accountability at all levels.
  • Strategic Talent Partnerships: Collaborate with talent experts like Han Digital to access market intelligence, leadership networks, and customized talent solutions.
  • Continuous Improvement: Foster a culture of innovation and learning, leveraging feedback and data to refine supply chain and talent strategies.

By following these practices, professional services firms can help chemical companies build supply chains that are not only resilient and sustainable but also agile and future-ready.

Emerging Trends: What’s Next for Chemical Supply Chains and GCCs?

Looking ahead to 2025 and beyond, several trends will shape the future of chemical supply chains and the role of GCCs:

  • AI-Powered Supply Chains: Artificial intelligence will drive real-time optimization, predictive maintenance, and autonomous decision-making.
  • Green Chemistry Innovation: Breakthroughs in sustainable materials and processes will reduce environmental impact and open new market opportunities.
  • Decentralized Supply Networks: Blockchain and IoT will enable greater transparency, traceability, and collaboration across the value chain.
  • Talent Ecosystems: Organizations will increasingly rely on external partners, gig workers, and cross-industry collaborations to access critical skills.
  • Regulatory Convergence: Global harmonization of ESG standards will drive greater consistency and accountability in supply chain management.

Professional services companies and their GCCs must stay ahead of these trends, leveraging data, technology, and talent to build supply chains that are resilient, sustainable, and competitive.

Conclusion: The Path Forward for Resilient and Sustainable Chemical Supply Chains

The chemical industry’s supply chains are being reshaped by powerful forces—disruption, regulation, technology, and talent. As KPMG’s latest research makes clear, building resilient and sustainable supply networks is not just a strategic priority—it is a business necessity.

For professional services companies establishing or expanding GCCs, success depends on integrating supply chain, sustainability, and talent strategies. Partners like Han Digital, with their unrivaled market intelligence and leadership networks, are essential allies in

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