A Fortune Global 500, one of the largest chemical companies in the world. This $47 billion multinational chemical company employs around 19,000 people and is a global leader in innovation, consistently developing high-quality chemicals, polymers, fuels, and technologies.

CHALLENGE

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The organization lacked a reliable, unified view of procurement and production cost data, making it difficult to accurately track margins and make informed financial decisions.

Data was fragmented across systems, with no consistent source of truth to compare standard costs against actual production outcomes. Manual processes between procurement and marketing further introduced delays and inaccuracies, limiting the ability to respond to cost fluctuations.

• Limited visibility into procurement-driven financial performance
• No reliable comparison between standard costs and actual production data
• Inability to track cost drivers and variables across the BOM
• Manual, cross-functional processes leading to inefficiencies and errors
• Inaccurate data impacting margin analysis and decision-making

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SOLUTIONS

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Aligned Automation developed an advanced margin optimization solution, creating a unified data model to deliver accurate, real-time insights into cost and profitability.

The solution brought together procurement, production, and market data into a single, integrated platform, enabling cross-functional alignment and more effective decision-making.

Predictive analytics were introduced to model changes in raw material inputs and forecast their impact on production costs and margins, while external market index data was integrated to provide a realistic view of future cost scenarios.

Key capabilities included:

• Unified data model combining procurement, production, and financial data
• Cross-functional visibility to align sourcing and business strategies
• Predictive analytics for forward-looking cost and margin analysis
• Integration of market index data for dynamic cost forecasting
• Scenario modeling to assess the impact of raw material fluctuations

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What Changed

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Margin management shifted from reactive and fragmented to proactive and data-driven.

Teams can now accurately compare standard and actual costs, anticipate changes in raw material pricing, and make more informed decisions to protect and optimize margins.