How can global chemical control costs?

Global chemical cost control needs to be implemented from multiple dimensions such as supply chain optimization, production management, and energy utilization. Typical cases show that:
Supply Chain Management
Adopting centralized procurement and long-term agreements to reduce procurement costs, and ensuring price advantages through supplier screening mechanisms. For example, Wanhua Chemical has achieved a self-sufficiency rate of over 90% in key raw materials through vertical integration, significantly reducing external procurement costs.  ‌
Production process optimization
Implement lean production management to reduce energy consumption and raw material waste. Wanhua Chemical's fifth generation MDI technology reduces energy consumption by 28% for a single unit, extends catalyst life by 30%, and reduces annual costs by approximately 120 million yuan.  ‌
Energy structure optimization
Utilizing local resources to reduce costs, such as achieving a self-sufficiency rate of 75% for Wanhua Chemical's cogeneration energy, which saves 40% of energy costs compared to international peers.  ‌
Inventory and Procurement Strategy
Adopting the first in, first out principle and regular inventory system to reduce inventory backlog. Wanhua Chemical has compressed non raw material costs to 60% of its international peers through a circular economy model.  ‌