The chemical logistics management system is complicated, sure. However, unless this system is implemented properly by a company, serious and dangerous inventory issuescan arise.
If you start researching the transportation sector today, you’ll find numerous challenges faced by logistics companies looking to store and transport chemicals nationally and internationally.
In this article, we’ll discuss the best practices for chemical logistics and how an efficient warehouse management system can help you manage this sensitive supply chain.
Best Practices in Chemical Logistics:
1. Transparency in Logistics:
As a manufacturer, you need to be transparent about where you’re sourcing the raw materials from, how you’re producing them, and how you’re storing them and transporting them. The clients might also want to know to whom you’re selling and who you’re collaborating with.
Unless you’re transparent about these details, you might find a lot of obstacles in your path. One of the primary problems that you’ll suffer from is that people look for companies that are clean internally. Once there was a time that people used to be content if the final product was good only. However, now you need to consider other factors, like avoiding animal cruelty, minimizing pollution, etc.
Now, you might think that refraining from publishing these will save you, but that’s not correct. People will peer into your business, and if they find anything out, you know what follows.
2. Information Management:
Reporting what’s going on with your business is very important. This isn’t only important for the customers, but it’s very important for different personnel inside the company. Without the proper information, making the right decision can be pretty tough.
Most companies keep a track of the raw data. However, many companies do not invest a lot in making sense of that data. While raw data is certainly useful, it’s not possible to make something out of that data.
To understand what the data is pointing towards, a company must have interpreters who will study the data and create charts and graphs that can be interpreted easily by everyone. This will save every individual in the company, and it’ll help them make better decisions that can maximize the profits and minimize the losses.
Then again, this information can be used by investors so that they have a better idea about how your company is performing. Without information, no one will show interest in investing in your company.
3. Warehouse Management System:
When it comes to the chemical industry, inventory is a major aspect that many companies overlook. However, overlooking this will only drive your business to its doom. This is why we highly recommend keeping track of your inventory with every action that’s taken.
Inventory management can be challenging, especially with such huge inventories that are affiliated with chemical industries. However, with the invention of modern warehouse management systems, this process has become very easy and simple. If your company is managing its warehouse, then we highly recommend getting warehouse management software, as it will reduce the hassles to a significant degree.
Then again, there’s another approach that’s considered to be wise from a modern perspective. Warehouse management is certainly tough, and if your company doesn’t have a specific revenue stream, then you won’t be able to make a steady profit.
This is where outsourcing comes in. When you operate and manage your warehouse, you’re forced to pay a certain amount no matter how many sales you’re generating. However, if you outsource, then you’ll be able to book other warehouses that will provide you flexibility. If your sales are up, your management costs go up. On the other hand, if the sales are down, the costs go down as well. So, in the end, you’ll be able to maintain a steady revenue stream no matter how much you’re earning.
This is why outsourcing is considered to be a great choice if your company isn’t expecting a steady revenue stream.
4. Keeping the Impact of HOS in Mind:
HOS or Hours of Service is a regulation that has changed everything about logistics. This regulation puts a bar on the amount of time a driver can drive. According to this regulation, drivers can drive around 14 hours on workdays, and 11 hours on other days.
Even though this regulation impacts only extreme situations, sadly drivers affiliated with the chemical industry are usually affected by it. Even though this regulation promotes safety, it can reduce efficiency at the same time.
This is why you need to calculate HOS while estimating the deliveries that you’ll either receive or send. If you ignore this regulation, then your calculation won’t be proper.
5. Keep the Engagement Strategy Flexible:
The way through which you’ll transport must be flexible. When you’re dealing with chemicals, you never know what you might have to transport. Different chemicals might require different containers and trying to cut some costs in this sector will only compromise safety.
This is why we recommend keeping the arrangement flexible, and the transportation crew must be ready to take every necessary measurement at any time on demand. In this way, you’ll be able to minimize the losses to some extent.
Conclusion
Warehouse management system and overall chemical logistics system is a very important sector of the industry. This is why a company must pay extra attention to the details of this sector. Doing so will help the company improve the places with shortcomings and can improve the overall profit of the company. If you’re only starting, then we highly recommend going through the points mentioned above, as you’ll get a general idea about what’s to come.
