The chemical industry is vital in producing goods and services that touch every aspect of our lives. It’s a competitive market to be in.

Adapting to trends is crucial for chemical manufacturers to stay successful. The most profitable companies will be ones that work with business partners who keep them updated on these trends and embrace any changes that may come their way.

Trends Affecting the Chemical Industry

Embracing Artificial Intelligence

The chemical industry has a history of embracing new technologies. Artificial intelligence (AI) is no exception. AI offers many potential benefits for chemical manufacturers. It can help find savings, improve efficiency, and increase productivity. There are so many ways AI can help chemical companies get ahead.

For example, it can help automate manual tasks and analyze vast amounts of data faster. With AI, chemical companies can make more informed decisions and improve quality control. Adopting AI can also help chemical companies improve workplace safety and reduce the risk of human error.

The Growing Significance of Data Analytics

Examining data sets for insights to improve decision-making is becoming more commonplace among chemical companies. Chemical manufacturers can use data analytics in their decision-making to enhance their productivity, reduce costs, and predict critical events that may impact their business. Moreover, they feed AI algorithms this data to forecast better and optimize their operations.

Accessing data can provide insight into the quality control of products or visibility into bottlenecks affecting their chemical supply chain. This data can help them pivot and improve their customer’s experience. Using data analytics is a great opportunity for chemical manufacturers to drive growth and profits.

A Rising Demand for Specialty Chemicals

Many other industries use specialty chemicals, like personal care, electronics, packing, and pharmaceuticals. In fact, the pharmaceutical industry accounts for the largest segment using them as the need for more medication grows.

Additionally, agrochemicals are another significant user of specialty chemicals. The growing population means an increased need for food and food production. Agricultural land is dwindling, and increasing the crop yield per acre of land becomes more important, increasing the demand for specialty chemicals.

Sustainability

The pressure on chemical manufacturers to reduce the environmental impact of their operations and products has never been greater. Regulatory agencies have placed stringent regulations with ambitious emission reduction goals for 2030. While many in the chemical industry have prioritized sustainability in their business, there is still work to do.

Green chemistry is part of this trend that’s gaining momentum. Green chemistry focuses on the processes and products to reduce the effect of hazardous materials and negative environmental impact while conserving natural resources for future generations. Green chemistry embraces recycling technologies, alternative energy resources, and other sustainable practices. This pushes many chemical manufacturers to review their current business strategies.

A Greater Need for Renewable and Bio-based Chemicals

A growing demand for renewable and bio- or plant-based chemicals should be no surprise.

This trend aligns with sustainability goals and brings the chemical industry opportunities for savings and new market opportunities. Companies are exploring avenues like synthetic biology, bioremediation, and the production of bioplastic or biodegradable materials

Prioritizing Safety and Reducing Risk

Safety and mitigating risk are huge concerns for businesses in the chemical industry.

Cybersecurity is a rising trend and threat for many companies. We see it all over the news. Hackers and scammers are becoming more tactical in cyber-attacks and company breaches of private information. It’s crucial for chemical companies to put in place security measures and training to keep their businesses safe.

The transport of hazardous chemicals has also recently gained special attention in the news. Rail transport accounts for around 19 percent of chemical shipments. Recent derailments, like in East Palestine, Ohio, have raised concerns about transportation safety.

Many chemical companies are also investing more in developing safer chemicals and products. Their concerns are not only to be less harmful to the environment but to human health as well.

Improving workplace safety is another concern. Companies install new safety protocols, enhance employee training, and use technology to address this.

Building a Resilient Supply Chain

In the last few years, companies realized how vulnerable their supply chains were.

In a survey by the American Chemical Council, 97 percent reported modifying operations due to supply chain disruptions. Chemical companies are focusing on reducing supply chain risk and increasing flexibility. With 25 percent of the U.S. economy depending on the chemical industry, it’s important their supply chains keep moving.

Keep Your Chemical Supply Chain Ahead of the Trends

Keeping your chemical company ahead of evolving trends and the competition is important. Having business partners that stay tuned to what’s happening in the chemical industry can be invaluable.

Trinity Logistics can help you with many of these trends through our services. Whether you have sustainability goals, are looking to build supply chain resiliency, or need technology to improve visibility and offer data analytics, we have solutions.

We’re members of many industry-related associations like the National Association of Chemical Distributors (NACD) and are Responsible CareⓇ Certified, so you don’t have to worry about falling behind in news or trends that may affect your business. When you work with Trinity Logistics, your designated expert will keep you so informed that you’ll likely know what’s affecting the chemical industry before any of your competitors do.  

That’s just part of Trinity’s People-Centric service you’ll get to experience when working with us. We understand that people are at the heart of all businesses, so that’s who you’ll talk to – a dedicated relationship at Trinity. It’s also who we truly serve – your people.

Our goal is to improve lives, and when you decide to work with Trinity Logistics, you’ll see just that – improved life satisfaction amongst your employees and customers.

I’D LIKE TO DISCOVER HOW TRINITY IMPROVES CHEMICAL SUPPLY CHAINS

The chemical industry adheres to strict regulations with their products. With those regulations can come recalls and audits. To stay ahead of those headaches, traceability is needed in the supply chain for chemical manufacturers. Gaining traceability can help prevent possible recalls and offer preparedness for audits, while bringing many other benefits.

Shared Data

To get the greatest benefit from supply chain traceability, data needs to be easily shared across supply chain partners. The use of technology for end-to-end supply chain traceability is vital for recording and exchanging data with all. Having transparency amongst all supply chain partners brings accountability and trust.

Replace Manual Processes

Even today, a lot of traceability processes are still manual. It often takes contacting many individuals through phone or email to get the information you need. Using technology for traceability in the supply chain helps eliminate those manual processes. With current technology, you can find the information you need in minutes with one application.

Improve Customer Service

With all supply chain partners having transparency, there is great potential for customer service to be improved. Distributors can better manage their delivery times, improving communication and customer satisfaction. Retailers can provide consumers with access to product information, building loyalty and relationships. Shippers can see shipment activity and schedule heavy or light volumes, creating happier transportation partners. From end to end of the chain, it improves consumer satisfaction.

Quick Problem Solving

Traceability allows you to be more proactive should you need to cancel an order, stop a production cycle, have products re-inspected, etc. It gives you the opportunity to quickly detect problems and deliver greater service by providing solutions and visible communication right away.

Better Stock Management

Easily meet customer demand by knowing what is going on within your supply chain. Tracking and tracing shipments and orders leads to more efficient stock management. With better management brings the potential for costs savings.

Traceability With TMS

Transportation Management Systems (TMS) are one of the technologies available to gain traceability in your supply chain. They allow function and resources for all supply chain stakeholders. To reduce cost, working with a third-party logistics (3PL), such as Trinity Logistics, can give you access to their TMS technology, as well as their experience in supply chain solutions.

Looking to learn more about TMS? Click here to read our Guide on TMS.

Creating a connected supply chain adds value and strengthens those relationships with all stakeholders. It makes a company more desirable to work with and to buy from. The smallest of details can make a difference in the success of a company. Traceability is one of those finer details in your chemical supply chain that you can’t be without.

If you’re ready to make a move towards having traceability in your supply chain, connect with us and find your solution.

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