CHEMICAL
Managing chemical supply chains is a dangerous business – successfully delivering a finished commodity is a clear marker for an organization's reputation as managing consistent, on-time delivery is synonymous with how well an enterprise’s customer satisfaction scores are. But with so many parties involved, from transportation to suppliers, any bottleneck or preventable disruption can cause a slowed process at the recipient's end. Well-documented disruptions like the Red Sea Crisis have shown that untimely disruption on a global scale has a cascading impact - conflicting with lean manufacturing strategies.
The industry itself is heavily regulated by laws and Transportation of Dangerous Goods (TDG) lists designed to promote standardized measures and proper conduct throughout the shipping and handling process. Some of these extensive regulations include itemized hazard classification, labeling, chemical registration, storage, transportation, waste disposal, and import/export controls. Complying with these regulations is paramount to avoiding legal ramifications and reputational risks – often spurred by preventable human error and oversight.
Transporting hazardous materials requires strict adherence to safety regulations – often relying on specialized equipment and comprehensive checklists. IATA, for instance, actively updates its regulatory lists and protocols on an annual basis, which means shippers must also actively update their hazmat information to stay in touch with international health and safety protocols.
Fluctuating raw material prices and supply shortages pose added challenges to your supply chain - impacting production costs and profitability. Poor cost management often stems from inadequate supply chain visibility and disorganized financial data, especially when multiple users collaborate simultaneously. When supply chain visibility is limited, chemical shippers can often struggle to accurately forecast demand and optimize procurement, leading to inefficient resource allocation and increased freight costs. Efficient cost management is essential to remain competitive.
KEYS TO SUCCESS
COMPLEXITY OF HAZARDOUS MATERIALS HANDLING
Most chemicals include hazardous classifications and specialized shipping labels for handling, storage, and transportation instructions - including managing risks related to flammability, toxicity, and environmental impacts, which makes accurate carrier-compliant shipping labels and documentation all the more critical to shipping success.
SUPPLY CHAIN SCREENING
The global reach of chemical supply chains makes them susceptible to disruptions caused by geopolitical tensions, restricted parties, natural disasters, pandemics, and trade embargoes. Automated compliance screening ensures that all transactions and shipments adhere to these regulations, helping to avoid legal penalties, fines, and operational shutdowns.
SUSTAINABILITY AND ENVIRONMENTAL IMPACT
The pressure is mounting: chemical companies are being pushed by government organizations to reduce their environmental footprint, manage waste, and ensure sustainable sourcing of raw materials. This requires integrating sustainability into every aspect of the supply chain. Failure to address sustainability can result in regulatory fines, loss of market share, and damage to the company's reputation.
MANAGING FREIGHT
Accurate freight cost management is crucial for maintaining profitability, as transportation is a significant expense. It ensures precise budgeting, prevents cost overruns, and supports competitive pricing. Cost tracking helps in compliance with regulations, enhances decision-making, and improves overall supply chain efficiency.
GLOBAL ROUTING
Chemical supply chains require all modes of delivery—road, rail, sea, and air—to ensure flexibility, safety, and timely delivery of products. A comprehensive list of transportation modes allows for optimized logistics, cost efficiency, and compliance with safety regulations across diverse global routes.
Chemical Chain Reactions: Overcoming Challenges with a Comprehensive ERP Solution
Maintaining regulatory compliance in the chemical industry often emerges as a primary concern for shippers. Meanwhile, cost management remains an ever-present issue as many shippers struggle to identify problematic freight spending. These recurring struggles have been exacerbated by today’s frequently fluctuating raw material prices and supply shortages.
An integrated ERP solution can enhance and facilitate demand forecasting, inventory management, and scheduling production runs to meet growing customer orders. Financial tracking capabilities allow for monitoring costs associated with freight, handling, and any additional charges throughout the shipping process.