Compliance as a competitive advantage: De-risking the chemical supply chain

All logistics directors and managers pay huge attention to safety and compliance. It’s about much more than regulations – they have a willing duty of care to ensure the well-being of their own staff, and also that of partners and customers.

Platform-based TSM is a notable support to this effort, helping to ensure that the right product is in the right dock at the right time and not in conflict with a product at a nearby dock that may threaten a hazard when the two may be unwittingly mixed.

Digital document management (including eCMR) ensures standardised processes and safe, accurate driver and truck registration.

Accurate, compliant cleaning documents are an essential part of this package. But they are complex to deliver because the industry lacks common standards across stakeholders, including shippers, carriers, and cleaning companies.

Network-based platforms have a strong role to play in helping the industry address this imbalance, because they enable trusted data to be shared within that triangle.

IN THE CHEMICALS SECTOR, THE FOLLOWING MUST ALSO BE CONSIDERED:

Hazardous goods requirements

Load/unload rules including staff clothing and protection essentials

Cleaning facilities and certificates

Accurate, approved weighing equipment

Fire hazards information

Maintenance of standards for chemical goods transport

Developing an industry standard around cleaning documents is not that easy, because it’s difficult to bring the different players together – carriers, shippers, cleaning companies – to define those standards. It is similar to the eCMR, there are going to be unique requirements for the chemicals industry in the legislation – the positive part for us is that the technology is already there to enable this process thanks to the platforms; adding the chemical-specific standard is next.

Suzanne Roodenberg

Director of Operations, Shell Chemicals Europe

Hauliers recognise good platforms as good for business

When assessing which platform is best for your business, take a step further. Consider how it will work for your carrier partners, suppliers and contractors.

Your technology strategy impacts directly on the health, efficiency and compatibility of your carrier network—and we’ve seen how the specialist nature of the chemicals sector means that there are fewer carriers in the available pool. They are not so easy to replace. A true partnership requires you as a shipper to bear their needs in mind.

A fruitful collaboration boosts the shipper’s business, too. A good shipper will become a ‘customer of choice’ for carriers, thus securing preferential access to capacity in a constrained market and reducing exposure to volatile spot rates.

The good news is that hauliers recognise the benefits of a unified platform network.

Hauliers like the fact that the single source simplicity cuts complexity.

Hauliers like punctuality and predictability.

Hauliers like the improved efficiency and opportunity coming to their business via optimising tools such as TSM and document management.

Hauliers like the transparency of a commercial relationship in which data-driven evidence plays a central role.

The ultimate prize: Commercial excellence in logistics

In the short term, logistics success is about better delivery at lower cost. Margins are protected or increased, non-conformance penalty costs are cut, risks are mitigated. But the true visionary will seek an ultimate destination.

The real win is to take a holistic approach and balance cost, service, sustainability and margin improvement to deliver true logistics commercial excellence.

THE WIN COMPRISES OF JUST THREE PILLARS:

Resilience

Achieved through network flexibility, communication power and the reassurance to make fast and accurate decisions via data validation.

Global data visibility

The key to agility, transparency and mutual communication support across the supply chain.

Ecosystem collaboration

The route to trusted mutual communication, stronger partnerships and improved efficiencies.

Above all, the data transformation journey is not a single step. It is about the right decisions for your business, at the right time and with the right partner.

If you are ready to build your blueprint for resilience and higher profitability, speak to one of our chemical logistics experts today.

Let’s architect your supply chain future together

Partner with us in Chemical Logistics

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