Challenges & Possibilities In Chemical
Supply Chain Management
The chemical industry is undoubtedly one of the most significant and primary industries in the
world. Likewise, in chemical supply chain management, from manufacturing to storage and
distribution, the chemical industry runs a complex yet well-managed organization.
Stakeholders in the chemical supply chain include chemical producers or manufacturers,
distributors, retailers, and end consumers. The stakeholders experience many kinds of
challenges while striving to handle operations running smoothly and efficiently.
Explain The Term Chemical Supply Chain
Management
Chemical warehousing is an umbrella term for different processes involved in the chemical
supply chain. The methods involve production, storage, transportation, and final distribution of
chemicals from distributors or retailers to the end-users. A chemical warehouse is a complicated
and long process involving numerous organizations and is strictly regulated by government
authorities, the chemical industry, and related parties.
Let us explore the highlighting features of the
chemical industry and its supply chain dynamics:
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The chemical industry is an important sector with a powerful and complicated supply
chain.
The chemical industry uses advanced technologies and artificial intelligence to automate
tasks related to production, risk management, inventory control, and so on.
AI or artificial intelligence empowers supply chain management by providing futuristic
and real-time visibility to check inventory levels, assess production needs, and optimize
robust performance across all operational levels.
Some of the challenges faced by chemical manufacturers are poor quality assurance
standards, poor visibility, lack of proper planning during production, lack of coordination
during material delivery, poor inventory management, and average cost efficiency.
AI systems can help optimize such challenges and offer winning solutions by presenting
free trade warehousing zones.
How do free trade zones help the chemical industry?
Free trade zones along with high tech automated systems can optimize all supply chain
operations to offer regulatory relief, easy contract negotiation, optimized truck loadings, best
route selection, safe storage of hazardous chemical materials in modern warehousing facilities,
etc.
From superior quality assurance standards, good visibility, best inventory management, to
competent cost efficiency, a free trade zone can offer various benefits to chemical
manufacturers and exporters. Implementing new technologies and automated services are
some of the key advantages found within a free trade warehousing zone. You can partner with
logistics service providers Onnsynex Ventures Pvt. Ltd. to gain entry into their free trade zones
in India and make use of their premium warehousing facilities.
FTZ & The Evolving Journey of Supply Chains for
Chemical Products
The supply chains for chemical goods have evolved and adapted conveniently to modern digital
technologies in recent years. Using digital software systems and AI tools is a part of this
growing trend. With more and more chemical businesses turning to AI tools to serve various
purposes and get tailored solutions, there is an urgent demand for finding a one-stop place that
can handle all the chemical supply chain management activities. To meet this demand, free
trade warehousing zones can fit the bill perfectly.
From chemical production, allocation, risk management, mitigation, inventory control, and
regulatory compliance, everything can be sorted out in an organized and efficient manner within
a cost-effective FTZ framework. This can drastically improve the chemical supply chain
management performance and increase your profits via the introduction of efficient processes
while protecting the safety of the products as well as human health along with environmental air
quality.
A free trade zone can streamline and optimize the performance quality of a chemical supply
chain. Through a trusted free trade zone such as OSV FTWZ, chemical manufacturers,
suppliers, and other stakeholders can leverage logistics for their chemical supply chain
management needs.
Chemical Industry - Salient Points
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The chemical industry is one of the biggest global economic sectors.
Almost 96% of all manufactured products or goods largely depend on chemicals directly
or indirectly.
Chemical manufacturers create or produce over four trillion dollars worth of chemicals
every year
The chemical industry is a highly competitive international industry offering a diverse
product portfolio.
Different Sub-Sectors in the Chemical Industry
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Petrochemicals - The chemical products derived from petroleum, fossil fuels like gas,
renewable fuels like Maze and palm oil via refinery process are called petrochemicals.
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Agrochemicals and Fertilizers - Those chemical products that are used for agricultural
purposes, gardening, and soil-related purposes to develop growth fertilizers or pesticides
are known as agrochemicals and fertilizers.
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Bulk Chemicals - Chemicals like plastics, rubber, detergents, solvents, fibers, and
cleaning agents come under the bulk chemicals category. These are primarily used in
industries.
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Specialty Chemicals - Those chemical products made to serve some special function
related to the paint, colors, cosmetic additives, food, and fragrances industries are called
specialty chemicals.
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Pharmaceuticals - Chemicals play a significant role in the manufacturing of various
pharma products such as topical creams, medicines, vaccines, baby milk formulations,
food supplements, etc.
The chemical industry relies heavily on chemical supply chains to get their raw materials, goods,
and other facilities for processing their unfinished goods. The chemical storage warehouse is
solely focused on securing proper inventory to wherever it needs to move or store goods at any
given time at nominal costs and minimum duty fees.
Modern Supply Chain Mechanics Through FTZ
While chemical manufacturers and distributors are looking to fulfill their product needs, they
have to manage a complex supply chain. The whole process begins with the purchase of raw
materials from suppliers and converting them into suitable chemical products. These finished
chemical goods are then sent to distributors who sell these chemicals to numerous industries.
With the advent of free trade and warehousing zones, chemical companies find it convenient
and easy to manage their supply chain.
The existing new era supply chain for chemicals combines the united efforts of logistics
companies, warehousing facilities, chemical manufacturers, and distributors to fulfill their varied
product requirements. Operating within a state-of-the-art free trade zone, chemical companies
can successfully manage or handle their supply chain processes to leverage customs duty-free
and tax-free exports. Global exporters of chemicals use such OSV FTWZ warehousing units to
streamline their supply chain and considerably reduce their supply chain costs.