SUPPLY CHAIN MANAGEMENT
Rakem has seen a similar shift . However , as Rafferty points out , the requirements of the PPT and EPR compliance can present a challenge in reconciling the most suitable packaging format with consumer demand for more sustainable solutions . “ Our conversations with clients around sustainable packaging are becoming much more nuanced and complex ,” he says .
While plastic reduction is a focus for many , the fact is that it is often the best material for transporting chemicals . “ Sustainability in chemical packaging is much more complex ,” says Smith . “ While plastic packs with recycled content meet the demands of the PPT , they must also undergo significant testing to ensure they satisfy the safety requirements of transporting hazardous goods .”
It is not just the demands on packaging in terms of its functionality that is nuanced . The impact of the material ’ s CO 2 footprint is also complicated according to Rafferty .
“ As businesses look at their Scope 3 carbon emissions some alternative materials to plastic have significant footprints , but for many end-users these materials are still deemed to be a more sustainable option . Understanding that material replacement is not always a simple process and finding a suitable solution is a discussion we are increasingly having ,” he says .
Alongside providing advice to their clients , many CMOs have also adopted energy-efficient practices themselves to reduce their carbon footprint . These include optimising manufacturing processes , using renewable energy sources , and minimising waste . Here measurement is key so that the data is available for clients as the industry strives to meet demands of decarbonisation and the move to Net Zero .
Sustainability is a huge focus for Cod Beck . “ Today a full 10- 15 % of each tender we receive
Cod Beck Blenders ’ site offers services including blending , packing and specialised chemical drying of powders and liquids
looks at qualification regarding sustainability ” Meyer says .
“ Within this , understanding emissions and increasingly being able to provide data for Scope 3 reporting is a big challenge for the whole supply chain and one our industry and the whole sector will need to invest in it . We all need to be much more definite about our CO 2 levels and calculations – it is now an integral part of the sales process .”
Delivering production expertise
Ensuring quality in a fast-paced environment , especially in terms of an accredited manufacturing environment , is paramount to all CMOs . Investment in the latest technology and equipment therefore play an important part in the service CMOs deliver to clients .
Specialised production , such as vacuum drying and sieving , milling , grinding and mixing , are all available alongside flexible packing lines , all of which can offer a capability or capacity that companies often do not have themselves .
Health and safety is also key driver for investment with CMOs , ensuring that their working environments are to the highest standards in terms of efficiency and safety . This was a major factor behind the Rakem Group ’ s recent investment in its manufacturing facility ’ s extraction systems , making production more efficient and safer .
A major benefit of outsourcing services is the ability for companies to source a tailored finished product without investing in the installation of in-house facilities . This provides opportunities both for established companies to test new products and for start-up ventures to find a quick route to market .
In recent times , the chemical industry has witnessed a surge in the latter , largely fuelled by the ease of establishing an online business and leveraging sales platforms like Amazon . These emerging enterprises find an indispensable ally in outsourcers , for both the availability of the necessary equipment for product development and the CMOs ’ market knowledge , experience and expertise .
The future for CMOs
So , despite the global economic challenges , CMOs are continuing to play an integral role in the chemical sector . New products and solutions can be provided without high capital expenditure in development , manufacture and packing , while ensuring they meet the latest regulatory and sustainability requirements .
Above all , a customer-centric strategy is paramount to a successful outsourcing relationship , with CMOs tailoring their services to cater to the unique needs of each client . CMOs bring a wealth of expertise , a diverse skill set , and access to cuttingedge equipment and technology , all of which empower customers to navigate the current challenges , fulfil evolving expectations , and seize new opportunities in a dynamic and expanding market . ●
Emma Verkaik
CEO
BCMPA k + 44 1494 582 013 J emmaverkaik @ bcmpa . org . uk j www . bcmpa . org . uk
40 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981