First-rate logistics provision is crucial for any chemical manufacturer, and, if implemented correctly, can be an impressive cost and efficiencies driver for businesses. Here, Gary Dodsworth, Road director at Rhenus Logistics UK, explains why such investment is crucial for Europe’s chemical industry.
The chemical logistics sector is one of the world’s largest markets, expected to reach 3.6 trillion USD by 20251, and with freight demand only set to increase, first-rate logistics and supply chain management is absolutely imperative. Therefore, when looking to transport chemicals or hazardous materials, it is vital for customers to appoint a logistics partner with a strong infrastructure and proven experience within the sector, such as Rhenus Logistics.
Rhenus has its own specialist chemical division, demonstrating a proven capability of pan-European transportation and state-of-the-art facilities in Basildon, Bradford, Cannock, Corby and Manchester, all of which are SQAS (Security & Quality Assessment Systems) certified. Over the years Rhenus has demonstrated its ability to provide top-quality service, irrespective of the market.
With the UK chemical and pharmaceutical industry the second largest in the UK, there is a lot at stake, therefore, the Rhenus team and I have identified five key areas that could be developed to help improve the chemical supply chain.
- Safety and security – a top priority for chemicals companies. The challenge is to turn safety into a strategic advantage. Demonstrating a proactive approach to safety across the international supply chain can be a long-term, profitable differentiator for businesses.
- Efficiency savings and cost reduction – more 3PLs operating across the logistics supply chain should adopt a ‘Total Cost of Ownership’ approach, creating a comprehensive, end-to-end overview of logistics costs.
- Improved inventory management – making better use of just-in-time solutions and freeing up capital will be a key area for the chemical logistics industry over the next decade.
- Investment in technology – calculated investment in appropriate logistics assets encourages a more collaborative and greener approach throughout the supply chain.
- Added value services – in a competitive marketplace, differentiated services designed to meet specific customer requirements can create a competitive advantage in an often saturated industry.
At Rhenus, we recognise our unique position within the market, which is why we have put our theory into action and have developed a best-practice model by appointing in-house chemical specialist teams, which provide advice and solutions on hazardous transport challenges. One of these is the growing demand for a greener chemical industry, with recent years seeing stricter regulations and the desire for greener alternatives becoming a top priority for customers.
Santander has commented that the global market for green chemicals is on track to grow from $11 billion in 2015 to $100 billion by next year2. To prepare for this, our model includes helping UK manufacturers keep up-to-date with the latest trends and legislation for the transportation of chemical products, as well as ensuring exporters are aware of the differing laws and standards for hazardous material from country to country.
Our commitment to the sector will be demonstrated at next year’s ChemUK in EventCity, Manchester, where we will be showcasing our global capabilities within the chemical and hazardous goods market.
1 – https://www.marketwatch.com/press-release/global-chemical-logistics-market-to-reach-usd-36-trillion-by-2025-and-is-anticipated-to-grow-with-a-healthy-growth-rate-of-more-than-1398-over-the-forecast-period-2018-2025-2019-03-26-151974011
The Rhenus Group is a leading logistics service provider with global business operations and an annual turnover of EUR 5.1 billion. Rhenus has business sites at 660 locations worldwide and employs 31,000 people. The Rhenus Group provides solutions for a wide variety of different sectors along the complete supply chain; they include multimodal transport operations, warehousing, customs clearance as well as innovative value-added services.