What are the Characteristics of a Good Chemical Supplier?
From our previous blogs, you probably have a brief idea about what chemical traders do and how their businesses are operated. This blog entry gives you a rough idea on how to be a good chemical supplier so that your chemical business can be operated smoothly.
- MATERIAL SOURCING
Many chemical suppliers usually source their raw materials in bulk and traded extensively around the world on a 24 x 7 basis. Ensure material sourcing decisions are made with good visibility of activities at trading exchanges. This would allow appropriate reaction to be undertaken whenever a good trading deal arrives.
Moreover, a good chemical supplier would provide assistance of support tools to evaluate usefulness of materials based on assay results and plant capabilities.
On the other hand, one must be prudent when exploiting any of such cost-saving opportunities as highly discounted raw materials might compromised on quality. Read more from our previous blog entry.
- SUPPLY DEMAND MANAGEMENT
Many of the customer orders are usually expressed in terms of “at least” or “no more than” certain values of a given attribute. Therefore, demand forecasting that chemical suppliers undertake not only have to be attribute-based, management of customer orders also require understanding of the underlying principle of substitution as well as the rules of acceptable product replacement in production planning.
- SUPPLY CHAIN AND LOGISTIC
Due to the nature of their manufacturing process, many chemical manufactures have to coordinate inbound and outbound transportation of chemical products in bulk. This includes pipelines, tanker ships, tanker rail cars and tanker trucks to support the movement of their materials. Ensure that the transporting hazardous materials follows the regulatory policies such as environmental, safety and security concerns. Also, make sure the transportation tools are subjected to maintenance requirements such as those pertinent to mandatory tank cleaning.
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