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Optimizing Operational Expenditure in the Chemical and Pharmaceutical Sectors

A more effective approach than just cost reduction

Martijn Karrenbeld

Global Sector Leader - Chemical & Pharmaceutical

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The chemical and pharmaceutical sectors use over one million-million liters of water each year and in 2014 the cost of this exceeded €350 million. Undoubtedly, at a time when expenditure and price sensitivity is at the forefront of many business decisions, this is an expense that could be better managed. 

“The chemical and pharmaceutical sectors use over one million-million liters of water each year”


Traditionally pharmaceutical companies aiming to cut costs have targeted the likes of labor overheads or reduced production output in a bid to make savings. However, this can undermine vital R&D capability, while trimming production can hinder the ability to meet demand.

Arcadis believes that one area that has been largely overlooked, but which has substantial potential to deliver savings, is the cost and use of indirect materials, such as water, energy, maintenance and hidden value in assets.

A fresh focus on these areas – by adopting an integrated approach to resource us – has the potential to yield important savings for businesses seeking to reduce operational expenditure.



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Martijn Karrenbeld

Global Sector Leader - Chemical & Pharmaceutical

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Arcadis White paper

Optimizing Operational Expenditure
Optimizing Operational Expenditure

How can companies in the chemical and pharmaceutical sectors reduce costs through better use of resources?

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