The three key questions for success in chemicals and process engineering
These are challenging times for the chemicals and process engineering industry. Increased competition, globalisation and regulatory developments are all driving changes to the marketplace. Maintaining profitability and operational effectiveness in such an environment can occupy managers in even the most forward looking of organisations. To meet these challenges smart engineers are asking three key questions.
Does our organisation manage globalisation or merely react?
The burgeoning Asian middle class are creating new patterns of consumption and driving globalisation. This provides new opportunities, but the challenge is to ensure that built assets are in place to respond to this demand. It is vital that the right level of skills and expertise are in place worldwide to support business critical operations. Expertise in operational and capital programme delivery can lever a strong competitive advantage by providing a focus for cost reduction and improved effectiveness.
As a partner for INEOS, we have provided best practice commercial assurance services in support of new and developing operations around the world.
“Turner & Townsend assisted us in developing our entry (asset) strategies into several different territories in the MENA Region and Russia. They carried out their work in a positive and professional way.” INEOS Manager.
How can our governance processes drive business growth?
Regulators and authorities require transparent governance that demonstrates regulatory compliance. Investors require metrics that highlight operational control and performance improvement. The challenge is to create governance frameworks that are transparent, concise and useful. Bad governance has the potential to result in regulation breach, and damage to reputation. Conversely, good governance has the potential to reduce risk and drive growth by enhancing investor relations in difficult financial markets.
At SABIC, we are undertaking a strategic review encompassing the benchmarking of procedures and reporting mechanisms relating to asset maintenance, programmes and supplier procurement.
“Turner & Townsend has certainly helped us on the commercial side and how we are developing our major contracts. They have helped us to get a better insight and control of our costs.” Engineering Services Director, SABIC.
Do operational processes support or hinder our organisational flexibility?
Continuing macroeconomic instability and the challenge of commodity prices add layers of complexity to the management of business risk and long term strategic planning. Flexibility is a pre-requisite to success and can be delivered by the use of operational frameworks that adapt with the business cycle. Strong adaptable procedures for the delivery of operational and capital expenditure provide the basis for effective cost control. In essence, they provide a hedge against market costs that can be imposed on organisations by commodity price fluctuations, regulatory development and movements in product demand.
Global agribusiness giant Syngenta, has appointed us to provide ongoing reviews of mechanisms for the monitoring of capital expenditure programmes. Highlights include the provision of supplier framework assurance, new standardised monitoring mechanisms for projects in multiple countries and development towards systems that manage project business risk. This has all been underpinned by knowledge transfer to internal teams.
The market challenges for your business are clear. We can support your organisation in meeting the demands of today’s marketplace. Our local insight, representing sector knowledge and best practice across the full breadth of project and business cycle, add real value to clients’ programmes and projects. To view our global office footprint click here.