Risk & regulation :
Challenges facing the chemical supply chain
Tim Doggett , chief executive of the Chemical Business Association , gives an overview of the risks currently facing the chemical supply chain , as well as the impact of regulatory issues on the industry
The chemical supply chain is complex , often involving large numbers of suppliers and spanning several countries with distinct legal and regulatory frameworks . As a result , it is almost inevitably subject to disruption . However , over the last few years , the industry has been impacted by a combination of extraordinary and unparalleled forces that have challenged the entire global supply chain in unprecedented ways .
Chemical supply chain risks
Reliable and cost-effective logistics are crucial for ensuring robust supply chains in the chemical industry . While every country faces specific obstacles , three factors have acted together to destabilise the chemical supply chain in the UK , with knock-on effects elsewhere : Brexit , COVID-19 and significant disruption throughout the global supply chain , including the chronic shortage of HGV drivers . This issue predates Brexit and COVID but has been exacerbated by them . The impact of Brexit has seen a reduction in the number of EU drivers working in the UK , whilst the introduction of regulatory changes and an increase in bureaucracy and paperwork for freight has made it more difficult and expensive to move goods between the UK and the EU . All these issues have combined to slow down or create barriers to the movement of goods and delays in manufacturing . Furthermore , factors such as UK REACH and the widening gap between EU and UK regulations mean that chemicals currently used in the UK may be prohibited or simply become commercially inviable . The impact of this could cause
56 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981