How Chemical Manufacturers Can Combat Varying Material Costs

06/10/2020 by Christine Griffith

How Chemical Manufacturers Can Combat Varying Material Costs

The chemical industry serves as the support for many other industries, such as agriculture, automotive, construction, and pharmaceuticals. Many chemical manufacturers process raw materials into refined products used among many other industries, or even within the chemical industry itself. Raw material costs, such as crude oil, can vary depending on supply and demand. Chemical manufacturers need to do their best to plan in those variant costs.

When it comes to other operations in their supply chain, they must be as efficient as they can to make room for those fluctuating material costs. Chemical manufacturers can’t control those changing costs of the raw materials they work with, so they need to focus on parts of the supply chain that they can control. One such control is with their logistics. What can be improved? How can costs be reduced?

Find the Right Carrier – in Less Time

We all know the stress and workload of finding a carrier to move your freight. Especially for chemical manufacturers who need carriers that know the ins and outs of handling their products. Capacity can be limited when you are looking for a hazmat certified, or tanker endorsed carrier with a decent shipping rate. Outsourcing your transportation is one solution.

3PLs, such as Trinity Logistics, take over the responsibilities of vetting the carriers, making sure they have the proper credentials, insurance, and experience for your freight. Take control of your time and let someone else take on the workload of vetting, while simultaneously gaining access to their larger and qualified carrier network.

Do you need help arranging your shipments? Gain access to our carrier network

Working with a 3PL also offers you access to their technology services. Technology to track your shipment from pick up to delivery, to automate workflows, engage in collaboration with supply chain partners, and more.

Create Efficiency with a 3PL’s Technology

Replacing your manual and time-consuming processes with technology will offer you more visibility into your supply chain. That visibility will show you what efficiencies can be created to reduce your costs. Technology itself can be an extra cost, so consider choosing a vendor who can provide you the automation and technology tools you need. One who can not only put into place those tools but manage control when necessary to keep operations moving and keep you competitive in the market. To reduce costs and gain a helping hand, chemical manufacturers can choose to outsource to a 3PL for both their transportation needs and technology. As the saying goes, you can kill two birds with one stone.

Transportation Management Systems

Click Here to Download our whitepaper on Guide to Transportation Management Systems.

One such piece of technology offered are Transportation Management Systems or a TMS. A TMS can help your business gain visibility into your supply chain, create new efficiencies, and automate your manual workload, so you can reduce costs in your logistics to make room for those always changing material costs.

When using a 3PL, such as Trinity Logistics, you often have options to choose in how you want to integrate your TMS. You get to choose how integrated you want the technology to be with your systems and get a specialist to work with you every step of the way. No matter what option you choose, you gain the visibility you are looking for in your supply chain.

Control Your Logistics Costs

In business and in life, there are certain aspects that you can manage and control. As a chemical manufacturer, you must manage those costs that you can and plan for those variances in costs for those you cannot. Logistics is one you can manage when you choose to partner with a 3PL. Even more so when you take advantage of the technology one can offer you.

Trinity Logistics is well-versed in the chemical industry and understands your complicated market. Our team of experts is here to help you find the quality carrier you are looking for and offer visibility into your supply chain to create efficiencies. We can help you gain control over your logistics costs, so you can make room for those other unknowns.

Are you ready to take a look into how we can help you gain control with your logistics?

Receive a free consultation.