5 Ways To Optimize Chemical Supply Chains


Creating efficient supply chains is one of the major challenges that all participants in the process industry have to face. This is particularly evident in the chemical industry where globalization, fluctuating prices, the emergence of new markets, and technological advancements contribute towards a dynamic business environment. While there is no doubt that the chemical industry in India is at the threshold of a strong growth curve, its true potential can only be realized with strong supply chain networks. In this blog, we look at 5 ways to optimize chemical supply chains.

1. Better Demand Forecasting


Demand forecasting is at the core of efficient supply chain management. There are multiple benefits of demand forecasting on the supply chain including:

●        Accurate market alignment.
●       Reduced stockouts.
●       Shortened delivery time.
●       Better governance of demand uncertainty.

2. Build Sales Strategy Around Distribution Networks

The impact of distribution networks in the process industry is all-pervasive. Chemical industry players can either integrate a holistic or a clustered approach for improving supply chains. For example, if a chemical supplier is using a software solution for managing supply chains then he must ensure that all moving parts are well integrated. This will streamline communication and information flow among key touchpoints like warehouse managers, inventory managers, transport, etc.

3. Keep Track of Cash Flow

Payment solutions used for paying chemical suppliers and logistics must be easy to track. This must also include the equipment used to pay bills like POS devices, electronic pads used by warehouse staff, etc. Keeping track of the cash flow will offer a bird-eye view of transactions and equip business owners to eliminate process which is time-consuming and inefficient.

4. Set Up Information Channels

A supply chain has many diverse elements including key partners. As such it is of utmost importance that information flow between key supply chain elements is frictionless. If data or information can be shared effortlessly between key participants, a lot of the day to day supply chain challenges like shorter lead time, less inventory, can be easily tackled.

5. Integrate ERP Systems


ERP systems play a key role in unifying the main functional components of any supply chain. They have many added benefits including process standardization and data insights. By integrating an ERP system, chemical industry players can also greatly reduce costs and wastes for increased profitability and efficiency.

The secret to business success in the process industry is an efficient supply chain. Not only can a robust supply chain improve performance but also save business money and time. We hope the tips in this blog will help you create supply chains that make your chemical business efficient and self-sustainable.


Comments

Post a Comment

Popular posts from this blog

Growth of Chemical Industry in India 2019

Image
Chemical industry is one of the oldest known production industries of India which contributes significantly towards our overall GDP and import-export trade. It has been an important element in our national economic growth and has reinforced great trade relations within international province. Import export of chemicals has gone through a progressive age of digitalization and developed to be one of the prime digital-backed industries of our countries. Chemical industry isn’t just about international export and business. The industry has various indigenous applications as well, thereby accounting for countless industrial and agricultural advancements in the country. Market Position It is an evident fact that Indian chemical industry has grown like never before in the past couple of decades. The industry has greatly been associated with every major economical contributor, not just nationally but on internationally grounds as well. It has developed as the backbone of
Read more

5 Facts About India's Chemical Capital Bharuch

Image
With a 3.4% share in the global chemical industry, India’s chemical sector has been a catalyst for its economic growth over the last decade. It is the seventh-largest producer of chemicals in the world. It is expected to become one of the leading global suppliers of chemicals over the next decade. And perhaps no other city would play a more important role in India’s leap towards global chemical dominance as Bharuch, the port city located on the banks of river Narmada in Gujarat. The city is host to some of the biggest names from the chemical industry in India and is rightfully called India’s chemical capital.  Here are 5 facts about India’s chemical capital Bharuch that you did not know: 1. 2nd Oldest City of India Bharuch is over 8000 years old. It happens to be the oldest city of Gujarat and the 2nd oldest city in India after Varanasi. 2. Always A Trade Capital Being a port city, Bharuch has been witness to trade and commerce since its very inception. It was
Read more

5 Must-Know Facts About The EU Chemical Industry

Image
The European Union was established on November 1, 1993, Maastricht, the Netherlands and one of the primary pillars of the EU economy is its chemical industry. While its global competitiveness has taken a backseat in recent years against emerging chemical leaders like India and China, favorable CETA and the EU-Japan Economic Partnership Agreement are expected to boost trade activity in upcoming years. Here are 5 must-know facts about the EU chemical industry. 1. EU Global Chemical Market Share Is Falling The European Union was established on November 1, 1993, Maastricht, the Netherlands and one of the primary pillars of the EU economy is its chemical industry. While its global competitiveness has taken a backseat in recent years against emerging chemical leaders like India and China, favorable CETA and the EU-Japan Economic Partnership Agreement are expected to boost trade activity in upcoming years. Here are 5 must-know facts about the EU chemical industry. In 1998, the EU sh
Read more