Chemical Engineering July 2022 - 12

Newsfront
Traversing a Data-Powered
Supply Chain
Transporting chemical products across global supply chains is complex and challenging, but
data-supported technologies are helping to improve efficiency, sustainability and reliability
M
aterials produced by the
chemical process industries
(CPI) are used in
nearly all global product
chains. According to the Science
Based Targets Initiative, around 95%
of manufactured products rely on
chemical goods. This ubiquity serves
to amplify the supply-chain disruptions
brought about by labor shortages and
the persistent economic effects of
the pandemic. A study conducted in
late 2021 by the American Chemistry
Council (ACC) surveyed 67 chemical
manufacturers, who overwhelmingly
reported that supply-chain problems
were creating lost production (66% of
respondents), shipping delays (94%
of respondents) and increased transport
costs (93% of respondents). Furthermore,
the ACC study indicated
that the materials shortages and cost
increases caused by production and
shipping disruptions were impacting
85% of those surveyed.
This increased focus on supplychain
issues coincides with the CPI's
continued efforts to improve the environmental
sustainability of their
products and processes, and also
the industry's continued foray into
digitalization. This article looks at the
supply-chain trends that are affecting
the CPI and the new technologies
that are aiming to streamline supply
and logistics operations.
Data empowers efficiency
Alongside the physical materials that
traverse through interconnected and
complex global supply chains, a
wealth of critical data also must be
transferred. When transporting dangerous
goods, proper documentation
and storage is essential to ensure that
the products reach the proper destination
while complying with local and
federal regulations, with minimal risk
12
Labelmaster
FIGURE 1. Because hazardous materials require special shipping considerations when compared to nonregulated
materials, access to pertinent data is crucial at all nodes of the supply chain to ensure safe and
compliant shipping
to personnel and the environment.
" When we talk about dangerous
goods, it really boils down to
knowing what you're shipping, what
mode you're using - road, air or
sea - and who is doing the shipping.
When it comes to what you're
shipping, people don't often appreciate
the effort that goes on in the
background to get those products
properly labeled and packaged. You
may be making a brilliant product, but
if you don't know how to ship it, it's
just going to slow down the supply
chain, " says Mario Sagastume, vice
president - software & customer
success at Labelmaster (Chicago, Ill.;
www.labelmaster.com).
Labelmaster has developed the
Dangerous Good Information System
(DGIS; Figure 1) to help with information
management and shipment validation
in the hazardous-materials sector.
Shipment of dangerous materials
often requires many additional steps
when compared to non-regulated
materials, and secure documentation
of product quantity and its regulatory
shipping name is crucial, even when
only minute quantities of hazardous
materials are present. " Some materials
are not allowed to travel by air,
or they cannot do so above a certain
quantity, so shipments may need to be
rerouted and schedules may be delayed, "
explains Sagastume. Another
crucial step is training employees in
understanding dangerous goods and
the surrounding regulations. " As shippers,
we need to know who is doing
the shipment, when they will do it and
how they will do it. Especially within
multi-location users, where only one
person may know the proper procedures,
training and identifying the right
people is key, " he adds.
It is no secret that material shortages
are leading to supply-chain disruptions,
but these issues are also
impacting the shipping and logistics
providers. Especially in the shipment
of dangerous goods, where specialized
preparation and packaging is
required, shortage of shipping materials
is causing logistical challenges.
" The toughest thing, from a supplier
perspective right now, is that all of
the labels that we produce are vetted
by federal authorities, and they have
certain requirements related to how
labels should react under sunlight, or
underwater for maritime transport, for
instance, and to get the right adhesives
and liners is quite challenging.
Dangerous-goods packaging needs
to be specially treated in a lot of cases
as well, and that can also slow down
the process, " explains Sagastume.
Amidst all of these challenges,
being adaptable and communicative
is key. Customers must knowledgeably
articulate their needs so that
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Chemical Engineering July 2022

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