For a global chemicals company like SABIC, maintaining robust supply chain resilience and effective risk mitigation strategies is not merely a preference but a fundamental necessity for sustained operational excellence and market competitiveness.

Recognising the inherent vulnerabilities of a highly globalised supply network, the company has focused on building redundancy and flexibility into its procurement and distribution channels.

This involves diversifying sourcing geographies for critical raw materials, establishing robust inventory management systems, and fostering strong, collaborative relationships with a global network of suppliers and logistics providers.

Such partnerships are essential for ensuring a stable and reliable flow of resources, even amidst disruptions.

Furthermore, SABIC leverages sophisticated data analytics and digital tools to enhance visibility across its supply chain, enabling real-time monitoring, predictive analytics, and rapid response to potential bottlenecks or unforeseen events.

The ongoing digital transformation initiatives, including advancements in cybersecurity, play a crucial role in safeguarding the integrity and efficiency of these complex systems.

Beyond operational resilience, SABIC employs a comprehensive risk management framework that systematically identifies and assesses a wide spectrum of potential threats, from market volatility and regulatory changes to operational disruptions and environmental hazards.

This proactive approach allows the company to develop robust mitigation plans, ensuring business continuity and protecting shareholder value.

In a world where supply chain and energy cost risks are intensified by geopolitical uncertainties, as noted in the 2024 Integrated Annual Report, SABIC's ability to navigate these complexities is paramount.