Industrial and laboratory operations managers often face significant challenges in catering to environmental regulations and effective chemical management. The entire cost of chemical companies does not just include purchase prices but also takes into account factors such as inventory management, safety, compliance, and disposal management cost. Companies often tend to treat procurement of chemicals in the same manner as they handle other purchases. They ignore or the unique storage, reporting and disposal requirements of these hazardous materials. However, neglecting these factors and having an inefficient chemical management approach can become highly risky and cost big for chemical companies in the long run.

We disclose some of the best practices that companies must abide by for successful chemical management in their organizations:

Capture critical data from supply chain

It is imperative for chemical companies to integrate environmental health and safety into their process for ensuring appropriate chemical management in the organization. The data, collected, generated and modified through vendor systems should be captured and transferred to the Environmental Management Information System(EMIS). Initially, the effort taken to collect and manage appropriate data might look difficult, but it will definitely pay off in the long run.

Develop preferred vendor relationships

This is one of the best ways to negotiate prices, standardize products and ensure their timely delivery. Maintaining good relations with the vendor has advantages beyond just cost savings for chemical companies. They also facilitate simplification of material evaluation, reduction of administrative overheads through electronic payments, and also vendors become better sources of market information.

Better management of inventory

Inventory management is one of the crucial aspects of chemical management for companies. The best way to accurately ensure chemical inventory is to have a focused inventory management software or an online application. These systems must interface with vendors, purchasing systems or online suppliers to maintain dynamic inventory data. It is recommended to gather this information electronically from the originating source in fixed intervals because chemical inventories have special requirements for information and availability.

Manage and reduce hazardous waste

To ensure cost savings in waste disposal, companies must first try to minimize the waste. Waste disposal is one of the most expensive costs associated with chemical management. So much that, it sometimes even exceeds the purchase cost of chemicals. Process evaluation along with a clear understanding of costs associated with disposal of hazardous waste is essential to uncover saving opportunities and ensure better chemical management in the company.

 Calculate and re-engineer operations

By calculating the total cost associated with chemical management and evaluating the products regarding waste minimization may help in formulating better processes or less hazardous substitutes. An evolving trend in chemical management is to expand the role of chemical suppliers from simple sale and delivery of chemicals to the management of the customers’ on-site products.

Invest in information management systems

It has become vital for companies looking for a streamlined chemical management process to invest in technologies that help to better manage and utilize the data. The latest technological innovations in the chemical industry are offering advanced data operations and reporting capabilities. These advancements have also made it easier for chemical companies to exchange data with external sources such as vendors and suppliers.

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