Page 186 - CW E-Magazine (12-11-2024)

Special Report Special Report

Third party logistics: The backbone of chemical and make sure that the chemicals reach tionship management & development advancements like electric and hybrid
safely. Supply chain optimization is and information security. Discretion transportation vehicles, eco-friendly
supply chains another benefi t that the chemical industry and protection of information are criti- packaging materials, effi cient logistics
gets while taking 3PL services. They cal here, meaning that the 3PL provi-
management using energy-effi cient
streamline the transportation routes, ders must meet certain regulations on structures, etc., are now emerging as
he global chemical industry cialty storage services NIKHIL AGARWAL consolidate the shipments, and make data security and cybersecurity. crucial business considerations. Green
contributes more than 7% to the such as temperature- President sure they minimize the transit times. practices are useful not only for envi-
Tworld’s GDP. The chemical sup- sensitive and security CJ Darcl Logistics Ltd. This not only reduces costs but also With the increased adoption of tech- ronmental purposes but also for making
ply chain is a complex logistics verti- storage, which are increases the effi ciency of the chemi- nologies such as Artifi cial Intelligence improvements to a fi rm and adhering
cal, where hazardous or non-hazardous useful, especially in to surge in the demand or unexpected cal supply chain. With the use of 3PL (AI), Internet of Things (IoT), Machine to the existing legislation on environ-
materials are stored, transported, and handling chemicals. inventory situations. They can quickly logistics, chemical companies can Learning (ML) and predictive analysis, mental protection.
distributed. Due to the risks posed by The 3PL providers scale up or scale down the operations, leverage the features of traceability and there is a lot more 3PL services are
many of these chemicals, managing are well versed with the web of laws according to the demand and the trackability. Advanced tools like Trans- poised to offer in the future. The virtues of CONCLUSION
this supply chain requires superior and regulatory compliances and they situation. port Management System (TMS) these technologies include better deci- 3PL providers have proven to be
vigilance in safety and legal standards. take care of it. enable checking the whereabouts of the sion making, improving operations, an essential component of the chemi-
Third-party logistics (3PL) providers The advantages of 3PL providers shipments and ensure the safety of the and being catalysts for safety improve- cal supply chain. These service provi-
provide outsourced services of logis- Another role of 3PL in chemical also includes signifi cant reduction of chemicals. ments. For instance, IoT can track ship- ders offer valuable and niche services
tics like warehousing, transportation, logistics is the signifi cant reduction of transportation and warehousing charges, ments and ensure the safety and on-time needed to support chemical transporta-
storage, and distribution, also known transportation and warehousing charges. since these service providers can Challenges, considerations, and delivery of the same. AI & Predictive tion. As technology and sustainability
as order fulfi lment. 3PL providers are Since these service providers can combine the freight charges of many future trends analytics can process huge amounts continue to drive chemical industry’s
important for today’s chemical supply combine the freight charges of many clients, and increased effi ciency arising While there are several challenges of data and can forecast demand and evolution, the strategic integration of
chain since they offer specialized ser- clients, it enables organisations to focus from previous consolidation of trans- that need to be pondered upon, one of hence let companies know how much 3PL services will be essential for main-
vices necessary to achieve these objec- on their key activities such as product actions. the biggest ones is the procurement of to invest in and ensure proper stocking. taining effi ciency and competitiveness.
tives. The continued and expanded use innovation and design, while the supply 3PL services in chemical logistics. To Additionally, 3PL stakeholders and
of 3PL in the chemical industry under- chain can run effi ciently with shorter Risk management is another factor facilitate cooperation between both 3PL providers are also embracing manufacturers can drive innovation
scores the importance that these service lead times. taken care of by 3PL service providers. parties, some of the key areas that need green methods of transportation and and sustainability, eventually shaping
providers play in preserving quality and They take care of spillage, leakage or to be managed effectively include com- warehousing to decrease their effects the growth trajectory of the chemical
improving effi ciency. Key benefi ts of 3PL providers any mishaps that could endanger the patibility & systems integration, rela- on the environment. Technological industry.
Scalable and fl exible solutions that lives of human/animal lives in transit or
The role and importance of 3PL in fi t chemical companies’ needs during endanger the environment. Chemicals
chemical logistics increased demand for products, enables also need specialized handling such Chemical Weekly | Import-Export Data
Chemical logistics recently have chemical companies to expand into other as temperature-controlled containers,
faced challenges including transporta- markets without capital-intensive in- tankers, and packaging materials. For Market Surveys | Directories
tion shortages, an international trade vestment while at the same time being all this, 3PL service providers train
war, and a pandemic. These events led in a position to respond competently their personnel to handle any mishaps Business Forums | Expositions
to the need for an effi cient solution
which further led to the birth of 3PL The only organisation in India catering exclusively to the needs of the entire chemical industry
chemical logistics.

The role of 3PL in chemical logis- Contact:
tics is crucial as it involves the manage-
ment of the supply chain operations of SEVAK PUBLICATIONS PVT. LTD.
these complex materials – from pharma- 602-B, Godrej Coliseum, K.J. Somaiya Hospital Road,
ceuticals to petrochemicals – which
can be taken care of by 3PL services. Behind Everard Nagar, Sion (E),
The transportation and storage of these
complex materials possess challenges Mumbai 400 022.
like stringent safety rules, and regu- Phone: +91-22-24044471 / 72
latory compliances by governing
authorities nationally and internationally. Email: admin@chemicalweekly.com
Moreover, 3PL providers offer spe-

186 Chemical Weekly November 5, 2024 Chemical Weekly November 5, 2024 187

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