Procurement Solutions For The Chemical Industry

Lets talk about chemistry! Probably not the most beloved story for many people.

However a true important one, considering the fundamental value of the (petro) chemical industry.

Without the spectacular world of molecules you would not be able to drive your car, drink bottled water, eat enough food or send rockets to the moon.

Capturing a true understanding of the manufacturing processes used in the chemical business is a major thing because safety rules.

Finding the ideal procurement solutions for this industry would require purchasing people, business stakeholders and vendors to swim in extremely high product and process specifications.

The shift to a greener earth also encourages the authorities to come up with new rules (for example REACH) forcing companies to secure compliance with harmless products (carcinogenic, explosive, corrosive, etc.)

While investigating to deploy the best practices on cost-reduction techniques it is of high importance to think about:

- the validation process going potentially from supplier A to B

- the risk avoidance of mitigation process

- the contingency plan and worst-case scenarios

- the capability to return to the initial phase when something would go wrong

- the specific process environment (refining, absorption, chemical reaction)

- the fact of having a batch or a continuous production process

- the regulatory aspects and its geographical application

- the imposed environmental safety guidelines

- the needs and audit process to validate suppliers in-depth.

As long as above obligations are taking into account, it is perfectly possible to use procurement solutions for the chemicals industry like re-sourcing, value analysis/value engineering, reverse auctions, simultaneous engineering, etc.

Otherwise you might be sitting on a bomb!

by: Johan Van Hamme

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