The chemical industry is vast, with a global revenue of over USD 5 trillion and a diversified product portfolio. Over 95% of all manufactured products rely on chemicals. After the pandemic-induced slowdown, global chemical production grew by 2% in 2022.
Further growth is expected, especially in the consumer chemicals sector, as more opportunities open up, triggered by a shift in customer demands and the emergence of new technologies.
However, there are significant challenges in this industry’s increasingly competitive and evolving market. Whether you are a chemical manufacturer, a producer, a distributor or a stakeholder, you face strong headwinds.
Here are three ways real-time visibility can help.
1. Achieve your company’s carbon emission targets and fight climate change.
The new carbon reporting requirements, International Maritime Organization (IMO) 2023 and the European Union’s corporate sustainability reporting directive (CSRD), which came into force this year, require companies to measure and report Scope 3 emissions.
In addition, the environmental and social governance (ESG) agenda is driven by consumer demand. Customers want their products to be sustainable and from green manufacturing sources. Care for the environment, therefore, must be part of a company’s strategy if it wishes to retain customer trust and avoid regulatory difficulties.
The message has been heard by the chemical industry, according to a recent survey by the American Chemistry Council, which states that companies now allocate roughly a quarter of their capital budgets to renewable technologies.
An estimated 60% of emissions come from a company’s supply chain, and because a chemical supply chain is one of the most complex, it’s here that significant impacts can be made. However, to begin reducing Scope 3 emissions, you must first be able to track and measure them.
project44’s industry-leading visibility platform gives businesses real-time shipment information, enabling them to track emissions globally:
Calculate freight transport emissions through all modes of transport using real-time data
Automate emissions reporting
Make data-driven decisions to reduce your supply chain’s carbon footprint
Achieve your company’s emissions reduction target
You can read more about project44’s commitment to sustainability here.
2. Stay competitive with a resilient supply chain.
With the rise of eCommerce, consumers’ demands are changing. There is a greater expectation for goods and services to be delivered on time at competitive prices.
The global aroma chemicals market is expected to grow by 4.1% from 2023 to 2030 to reach USD 7.72 billion by 2030. To stay competitive in such markets, companies must exceed customer expectations or lose out to the competition.
Having the technology to plan strategically but react quickly to changing situations is vital. Only a flexible, agile, resilient supply chain can meet market challenges. project44’s technology enables businesses to:
React quickly to changing markets and customer requirements
Avoid costly supply chain disruptions and delivery delays
Provide the ultimate customer experience with predictive ETAs, automated updates and full traceability
3. Reduce supply chain costs.
Chemical supply chains are complex and costly. They comprise many components and materials supplied by diverse stakeholders from all over the world.
For the manufacturers, distributors and downstream processors, the raw materials and goods must be precisely where they are needed, when they are needed and in the exact quantities. And because many materials are also hazardous or perishable, it becomes even more challenging. In such a highly regulated industry, batch quality, consistency and traceability are critical to product success and customer satisfaction.
Unfortunately, many manufacturers struggle with these complex supply chains and lack the macro and micro-level insights to make proactive data-based decisions. As a result, companies resort to building excess inventories to ensure uninterrupted supply to their plants, reduce batch variability, and avoid paying expedited shipping costs. However, the risk of wastage on the shelf-life items comes in addition to the inventory costs.
Moving from a reactive mode of supply chain management to a proactive one can be difficult. Fortunately, project44’s platform offers an easy-to-use suite of tools to help you achieve this.
With real-time supply chain visibility, you gain shipping insights across all modes of transport where you can:
Monitor and manage the transportation of all components
Take proactive steps to avoid disruptions
Improve end-to-end inventory management
Reduce spend on logistics and firefighting activities
Delight customers
What do other chemical industry professionals think about project44?
Our recent partnerships with the chemical manufacturer Arkema and the distribution giant Brenntag are proof of the trust that industry leaders place in project44’s platform and industry expertise.
“With project44’s real-time visibility platform, we are positioning Arkema to provide the best customer service in the advanced materials industry.”
“We are excited to work with project44 using its best-in-class platform, which brings together data across all modes of transportation, no matter where our shipments are – across ocean, rail, our own fleet or third party fleet. With this global supply chain transparency, we can unlock real value for our customers and supply partners….”