Typical Chemical and Waste Supply Chain Flow

Inefficient supply chains generally consist of a number of different raw material manufacturers or distributors, transportation, warehousing, on-site service and waste management service providers who lack the ability to coordinate and optimize all of the supply chain activities. They also typically cost customers more money because each provider charges for their services. The numerous hand-offs of your materials between all your supply chain service providers increases the risk of mishandling, damaging and misplacing of materials and results in overall higher costs.

The most concerning element is the profit margins recognized by each entity handling the materials and waste – known by CLM as a “Stacked Profit Model”. Most companies haven't considered the profits received by all the entities within the material and waste supply chain. Companies should identify how many suppliers and supporting entities handle raw materials and waste.

CLM can assist in determining the Total Chemical Lifecycle Cost and provide recommendations on how to decrease cost, reduce the number of instances of mishandled and misplaced materials and provide visibility into the supply chain.

Below are three supply chain models; 1) A typical raw material and waste supply chain model representing a raw material like speciality chemicals received from supplier or distributor, 2) A typical supply chain model representing raw materials received from four suppliers or distributors and 3) the CLM streamlined raw material and waste supply chain model representing a flow of multiple materials and waste streams from all suppliers or distributors through CLM.

TYPICAL SUPPLY CHAIN MODEL - CHEMICALS FROM ONE SUPPLIER

11 or more handoffs between 11 different companies

TYPICAL SUPPLY CHAIN MODEL - CHEMICALS FROM FOUR SUPPLIERS

In this example the number of companies and handoffs quadruples, leading to: (1) increased risk of mishandling, (2) margin stacking, (3) poor visibility & lack of coordination, and (4) costly oversight. Procurement and on-site services would quadruple as well.

CLM STREAMLINED CHEMICAL AND WASTE SUPPLY CHAIN FLOW

The following model represents the CLM – Chemical Lifecycle Management supply chain flow. CLM offers a unique mix of all the services needed to manage your entire raw material and waste supply chains with access to material visibility, specs and reporting features through a single online technology interface.

BENEFITS:

• One single point-of-contact and simplified invoicing.
• One standard set of procedures and one entity handling your products.
• Access to visibility of product throughout the supply chain via CLM’s Supply Chain Management Website.
• The CLM Supply Chain Management Website gives you direct access to critical data related to chemical procurement, inventory management at the warehouse and at your production sites, waste collection, transportation and waste recycling/disposal activities and information.
• Ease of regulatory and compliance reporting with a central repository of data regarding your raw material and waste actitivies.