Logistics challenges for the Chemical Industry: what they are and how to solve them

by | 16/12/2020

3 minutes to read

Responsible for a volume of 700 million tons of annual cargoes, the chemical industry has a large representation in relation to the global economy.

But the challenges that chemical producers face can lead to losses of billions of reais.

Here in this article we will discuss the main logistical challenges for this sector and present possible solutions.

You can understand better by reading more below. Have a good reading!

The main logistics challenges in the chemical industry

The earnings of revenues from the chemical industry are encouraging, however, Brazil brings great challenges in terms of logistics.

Here are the main ones:

1 – Outsourcing of logistics suppliers to the chemical industry

In order to focus only on the production of raw materials and reduce costs, many companies in the chemical industry choose to outsource logistics services.

The challenge is to maintain quality in terms of delivery and preservation of products.

2 – Lack of security in stock and cargo transportations

Poor stock management results in waste, damage to raw materials and products, and in the case of harmful chemicals, put the safety and health of people at risk.

Cargo transportation, on the other hand, faces insecurity on the roads, one of the biggest factors of financial and human losses for the chemical industry.

According to a 2019 report by NTC&Logistica, Brazil had more than 18 thousand occurrences of cargo theft, a loss of R $ 1.40 billion for the sector.

3 – Complications in delivery logistics

Failure management, precarious roads, insecurity on the highways and lack of intermodal transport alternatives reflect the agility and security of deliveries.

Other common problems are high costs in transport logistics, lack of traceability and communication with the customer.

The good news is that it is possible to minimize them and leverage competitiveness in the chemical sector.

Discover the logistics solutions for the chemical industry

Better balance sheet management

To deal with inventory problems, just-in-time and reduced inventory solutions have advantages such as process agility and cost reduction.

Smart investment in the best logistics assets

Chemical producers must seek the best partners and resources, with services and adequate management software to meet their customers’ demand.

Protection and security

Commitment to implementing a comprehensive security strategy in supply chain management can be a competitive differentiator.

Investments in logistics automation

Logistics automation supports delivery logistics by reducing risks, streamlining processes and facilitating the monitoring of deliveries.

We have seen how the challenges of working with contractors, issues of stock security, cargo transportation and delivery logistics can cause a lot of damage.

Improving management processes and investing in resources that increase the effectiveness of procedures are possible solutions.

It is worth remembering that before adopting any measure, companies in the chemical industry must analyze, plan from end to end and define their logistical needs.

In this way, they will be able to assess resources and strategies most appropriate to their reality and demand.

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