Digitization is the new currency that is transforming the face of manufacturing processes across industries. Manufacturers especially in the chemical sector, who are fast in adopting digitally advanced practices are gaining an authority in the industry by exploiting emerging technologies. Given India’s focus on being self-reliant, we need to rapidly develop manufacturing capabilities that can help in the fast delivery of product cycles. The rise of digital technologies has given birth to Industry 4.0 that is transforming businesses to produce, enhance, and distribute their goods more efficiently. Further, technologies like Internet of Things (IoT), cloud computing, analytics, AI, and machine learning are bringing a complete overhaul in operations.
COVID-19 has significantly accelerated the momentum of digitization among chemical facilities, as it has with every industry that saw uptick in demand. A KPMG survey showed that 96% of CEOs in the manufacturing industry observed an acceleration of the digital transformation in their organizations, while 48% stated that it had advanced by a few years. Digital technology is now a crucial link in the value chain, from research and development to customer interaction. The broad array of technological advancements improves the effectiveness of chemical operations from R&D through the final stages of the supply chain.
Here are some business verticals in which advanced technology adoption has proved to be a game changer for the chemical sector-
Research and Development:
Initially, technology was leveraged in research and development to complete processes like molecular modelling, chemical analysis, and database searching. Advance analytics and machine learning has changed the picture of research and development in the chemical sector. There is a scope to accelerate the development of better quality and higher-margin products based on R&D. Using high-throughput optimization, chemical companies will be able to create and modify molecules that have more useful properties. Additionally, they will be able to imitate tests using advanced analytic tools and techniques, employ predictive ability to progressively improve formulations for quality and profitability. In order to increase the effectiveness of R&D teams and the pipeline for new ideas, companies will also be able to decide how to best deploy resources.
Manufacturing:
Manufacturing in the modern day is a highly automated and technologically advanced business. It depends on the implementation of cutting-edge technology and processes that are revolutionizing production in several ways. Manufacturing has become so digitally integrated that it is now referred to as Industry 4.0, the fourth industrial revolution. Industry 4.0 is powered by connections, data and cyber system. Advanced automation and robotics, artificial intelligence, internet of things is boosting the production process speed, adaptability, and efficiency. Leveraging these technologies will help in reducing energy and resource consumption. Another important goal that all the industry players are striving to achieve is safety of people working in the shop floor. The tech advancement drives safe operation helping to achieve zero incident status. Chemical manufacturers have used this to their advantage since automation in chemical manufacturing can enable continuous running of experiments, increase productivity of the workforce and increase the overall output yielding higher returns.
Supply Chain:
Many global companies are realigning their supply chain by having ‘China-Plus-One Strategy’, to create an alternative to China. India is likely to be a big beneficiary of this shift. The policy support from the Indian Government through schemes like Performance Linked Incentive (PLI), under Aatmanirbhar Bharat, is likely to provide opportunities in the near term. This opportunity spans the whole supply chain, comprising inbound and outbound logistics as well as warehousing, for multiple segments of the chemical industry. Accurate forecasting can be made feasible by advanced analytics, improving every step of the supply chain. The supply chain disruptions of the previous year have been a learning lesson for all organizations. Businesses are now developing supply chains with geographically scattered shipping and supplier choices that employ data and technology to boost flexibility. The technological advancement is being used for a variety of tasks, including inventory management, risk assessment and mitigation, allocation management, and chemical production optimization.
Advanced Maintenance Analytics:
Along with big data storage and shared information via cloud services, advanced analytics can also be used to increase the overall effectiveness of plant operations. By applying advanced analytics chemical manufacturers have begun to use their data to get the most out of their costly assets. Predictive-maintenance systems can avoid glitches that would remain unnoticed when using traditional methods. It is a key alteration to modern chemical manufacturing and is being closely followed by the industry. As per a recent report by McKinsey & Company, by applying advanced analytics companies can determine the circumstances that tend to cause a machine to break. They can then monitor all relevant parameters and intervene before breakage happens, or be ready to replace a component when it does, minimizing downtime. Predictive maintenance typically reduces machine downtime by 30% to 50% and increases machine life by 20% to 40%. This indicates huge benefits chemical companies can reap by investing in the appropriate technology.
Cloud Storage and Information Sharing:
Although computers have revolutionized businesses, the chemical sector has lagged behind in utilizing cloud data storage to its full potential. This delay may have been caused due to concerns over security breaches. The concept of keeping confidential company information, formulas, and pricing information in an unidentified location may give many executives at chemical companies’ nightmares. Hence, investing in high-tech storage systems can help companies be better prepared against cybercrime threats.
Digital transformation is still in the budding stage for the Indian chemical industry. A comprehensive understanding of readiness will be necessary for digitalization in the sector. Chemical firms require a unified framework for evaluating present state, establishing future goals, and outlining precise milestones on the digital journey. The chemical industry is poised for accelerated growth in the future, and digital transformation will help the businesses attain their full potential.