When it comes to the packaging, storage and transportation of chemicals, there is no one-size-fits-all solution due to the complexity of the chemical market supply chain. While one set of chemicals may travel from the manufacturer to the distributor and then on to the end customer, other chemicals may move through even more hands in the supply chain.
Without a clear and complete sustainable packaging solution in place, chemicals may be repackaged multiple times as they move throughout the process. One company may prefer a specific type of packaging and the next may prefer another. On average, packaging can change four to six times depending on a company’s preferences or processes.
Creating a sustainable chemical packaging solution can improve logistics and operational efficiencies while also increasing safety and minimizing costs. Additionally, working with a partner that can help in the preparation and development stages through the execution of a strategy ensures the company creates a packaging solution that best fits their needs.
When developing a packaging strategy, companies should work with their supply chain to ensure the solution doesn’t only work in the now, but in the long run as well. Strategies should be measurable, well-rounded and aligned with corporate strategy and goals, and should not generate disruption in the company’s operations.
The four steps to think about when designing a sustainable chemical packaging strategy are preparation, analysis and development, selection of packaging and, lastly, execution.
The first step when developing the right solution is to think about what the company is already doing in the supply chain. This includes creating a multi-disciplined team of stakeholders to help answer the following questions:
Additionally, the company should gather pertinent information including chemical types and quantities, preferred and available packaging types, plants of origin and destination, etc. This information should provide in-depth information on current processes and strategies, helping identify areas for improvement.
During this step, the information gathered in the preparation stage is analyzed to make sure it is appropriate to use but also to interpret and convert it into meaningful insights to develop the new strategy.
This step is when companies should look at the complexity of their supply chain and everything it entails – mapping vendor locations, the company’s locations, inflows and outflows of chemicals, and every other important movement the chemicals make like transportation, testing requirements and storage locations. This information is critical to helping companies understand just how many steps and hands chemicals go through before reaching the end customer.
Another important part of this step is selecting and monitoring key performance indicators (KPIs) such as average distance ofshipments, average delivery time and average volumes. This helps clarify if technology could and should be used in the packaging strategy.
The last stage of this step includes reviewing and analyzing solutions that can reduce repackaging across the supply chain. Not only does repackaging of chemicals increase cost and waste time, but depending on the type of packaging used, can increase the use of non- or hard-to recycle packaging that can decrease the company’s sustainability efforts.
The third step in the development process is selecting the packaging. In this step, companies should assess all available packaging options. While this is partially dictated by the type of chemical in need of packaging, understanding the available options can help companies select the most sustainable and safe option.
Additionally, when reviewing packaging options, companies should look at renting vs. purchasing packaging based on what works best for their operational needs. For instance, renting removes part of the responsibility in cleaning, management and refurbishing the tanks. On the other hand, companies with enough manpower to oversee the day-to-day management of those assets may not need the rental model.
This is another area in which working with a partner may benefit a company, as they can help calculate which business model works best to fit the chemical manufacturer’s needs.
The execution of the new solution, as well as the final design, should be a true fit for the operation and organization. It should be tailored to the company’s operations and time requirements, and aimed to deliver improved performance, operational efficiency and have a sustainable impact.
Additional benefits include chemical compatibility, controlled and standardized processes and equipment through the supply chain, and informed decision making. The right packaging strategy should limit if not eliminate repackaging of chemicals as they change hands, enable growth and provide owners and operators with worry-free operations.
By Arash Hassanian, SVP Global Sales & Marketing, Hoover Ferguson
