We were making the wrong decisions based on assumptions that we had held to be true. The PTAI analysis revealed that we were not as competitive as we had believed. Our performance paradigms clearly had to be changed at the top and throughout the organization.”
“We did not fully understand how the margins on various product lines could be optimized. When we were able to see our costs in a true competitive context for the first time, we made some dramatic changes in our sales strategies that almost immediately improved our gross margins.”
SVP, Sales and Marketing
“We realized that our sales incentives did not fit our competitive strategy.”
Director of Sales
“Our competitive position had changed, but we were able to learn why and how to change course with reliable information. The type of benchmarking cleared our vision and gave us the facts to act.”
The Industry Leader in Benchmarking Aromatics
PTAI’s aromatics benchmark began over ten years ago. The benchmark is conducted on a two year cycle (odd years for even year data). The benchmark was initially developed jointly between PTAI and a consortium of major aromatics producers. The benchmark is continuously enhanced based on feedback from the participants.
The main products in the aromatics benchmark are benzene and PX. However, the benchmark also looks at co-products such as toluene, OX, cyclohexane, etc… Since each aromatics operation is unique and can be quite complex, the benchmark is broken down into nine sections (NHT, Reformer, Reformer Fractionation, Pygas, BTX, TDP, HDA, PX Loop, Cyclohexane). In addition to the section KPI’s, there are also KPI’s that look at the aromatics complex as a whole. There are overall indexes for energy, fixed costs and productivity.
The motivations and objectives of companies who participate in a benchmarking project are as diverse as the projects themselves. These are some of the more common objectives that our Clients have in participating in a peer group/benchmarking project:
- to quantify and understand their strengths and weaknessess relative to others in their industry
- to gain insight into their competitive position in their industry (or industry sector) on a regional or global basis
- to make changes in costs and operating practices that impact efficiencies across the enterprise
- to make discoveries allowing management to re-allocate capital and other resources for certain business units or for the company overall
- to determine how well their company (or business unit) is actually performing in the marketplace, rather than just against its own historical data
Benchmarking programs executed by PTAI ensure complete confidentiality of all parties and are in full anti-trust compliance.
Learn more about the benefits of benchmarking >>
Contact Phillip Townsend Associates >>