SUPPLY CHAIN MANAGEMENT ingredients can be made and BCMPA members are embracing a host of new initiatives to aid this progress .
“ The direction of travel remains to reduce everyone ’ s carbon footprint and waste ,” Usher says . “ Next year we hope to be making full use of solar panels on our roof . We also recognise that , as with many CMOs , our business waste stream requires significant work to minimise the risk of hazardous chemical contamination of some of the inbound packaging materials and are working tirelessly to address this . For example , where we can do so , we already substitute a compostable box tape for the polypropylene one on shipping outers .”
Bulk storage and blending facilities at Grotech in Goole
manufacture of mining chemicals to products used in oil and gas , and are very diverse in nature .”
However , Twiss sounds a note of caution . “ It is true that the EU presented some barriers to trade with some other markets and that one of the bright prospects offered pre-Brexit was the opening up of new markets which would vastly outweigh the value of trade lost with the EU . However , in stepping out of the EU we have lost trade deals negotiated by the EU for their Member States .”
Closer collaboration
These combined challenges , whilst testing for all concerned , have thrown into sharp relief the importance of a robust , frank , and open collaboration between CMOs and their clients . In the main , this partnership has grown in strength , with manufacturers , brand and retailers accepting the inevitability of higher costs and extended lead times .
“ Our customers seem generally understanding of the situation and seem to have become acclimatised to price increases given the numerous supply outages over the last few years ,” Dutton observes . “ Collaborative forecasting , forward planning and effective partnerships have become ever more important in ensuring our customers have supply and can service their end-users .”
Usher , however , adds a note of caution : “ The relationships between supplier and customer up and down the supply chain are crucial and wherever possible a healthy pragmatism has helped everyone along . I fear this will not last indefinitely as the prospect of empty shelves fades . Hopefully the onshoring of some activities will bring us some more options , as stretched supply lines lead to less risky options nearer the market .”
Sustainability
The continual drive from customers to enhance the environmental credentials of their ingredients and products , despite all the supply and inflationary pressures , especially from luxury and blue-chip clients , is still prevalent . This presents CMOs with increasingly difficult choices when it comes to the provision of scarce or alternative ingredients .
Whilst small incremental improvements can still be made , the general concern is that the pressure caused by the need to ensure supply will have a negative impact on the speed at which true , wider sustainability can be achieved . However , advances in areas other than
The future
Given the raft of external pressures currently still being experienced by CMO operators in the field of speciality chemicals – be they inflation , supply fragility , labour shortages or the need for new legislation , and adherence to new regulations – the overall tone for the future remains positive and confident .
Many of the challenges that CMOs have encountered in recent years have now been largely overcome , or reduced in severity and the new landscape of improved collaboration and supply agility is giving many of them cause for optimism . Dutton is keen to highlight this positivity .
“ Most of our supply issues have been resolved and the situation is beginning to improve as products are no longer on force majeure . Demand is also starting to pick up and we are optimistic of growth in 2023 . Continued communication with our suppliers and customers will be key to ensuring this happens over the coming months .” ●
Emma Verkaik
CEO
BCMPA k + 44 1494 582 013 J emmaverkaik @ bcmpa . org . uk j www . bcmpa . org . uk
38 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981