Strategy and Business Excellence | Value Chain Optimisation
Refiners can earn superior profitability either by locating in attractive markets or by establishing competitive advantage over rivals. Of these two, competitive advantage is most important. Companies can sustain strong growth and high returns on invested capital only if they have a well-defined competitive advantage.
Where external markets are too unstable, internal resources and capabilities provide a more stable base off which to create and sustain competitive advantage. This involves focusing on the core value generating assets that make a disproportionate contribution to ultimate customer value or efficiency through which value is delivered.
Delivering production-centred competitive advantage starts with holding the optimum portfolio of assets and projects in relation to the business environment for which capital can be allocated most effectively, feedstocks sourced and products placed into the market. In doing so, ensuring working capital efficiency.
Thereafter, smart operations delivering manufacturing excellence through focused technology application, production integrity and sustainable workforce development ensures safety, cost containment and overall margin maximisation.