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.