CHEMICALS, OIL, PHARMACEUTICALS

Efficiency is the key to success

Global sourcing, sinking margins, constant innovations – and barely a day goes by without mergers and takeovers. Very few sectors feel the pressures of change caused by globalization as directly as the chemicals, pharmaceuticals and oil refining industries.

Soaring costs are forcing companies to rethink as meanwhile the increased prices for raw materials constitute as much as 50 percent of total production costs. Rises in the costs for R&D activities also represent a growing challenge for the sector.

Successful companies are meeting these challenges head on by systematically improving efficiency. They are accelerating moves to set up electronic raw materials and product market places and developing their Supply Chain Management rigorously. Indeed, they are making their processes so cost efficient that even the production of commodities is becoming profitable again. Additionally, their organizational and operational structures in administration are the most efficient to be found anywhere.

Competence

We are fully versed in all the pertinent methods of increasing efficiency and have already developed and implemented individual concepts in numerous companies across the world. Not only do we deal with modeling corporate processes, we also design management control concepts. The growing number of M&A activities make it necessary to focus attention on harmonizing corporate control systems. What will decide the success or failure of many chemicals and pharmaceuticals companies today and in the future is decisive management of research and development activities, continuous optimization of the supply chain and tailored, efficient procedures and structures in administration.

This is where Horváth & Partners’ proven and innovative solutions, tailored to meet the specific needs of the different industries, come into play:

• Introducing the Balanced Scorecard
• Strategic control through value management
• Process and cost analysis as a cost-cutting instrument
• Reorganization and efficiency enhancement programs
• Finance Excellence
• Supervision and coordination of post-merger integration

Ever since we were founded in 1981, Horváth & Partners have been supporting companies from the chemicals, oil and pharmaceuticals sector. Our consultants have extensive experience of the sector and know exactly how to work hand-in-hand with their clients to achieve promising results. Thanks to our global projects, we know how this sector has developed over the years and are fully aware of its special and distinctive characteristics – such as the highly complex manufacturing methods and the resulting complicated product calculations, upon which strategic corporate decisions like make-or-buy or product migrations are based.