7 suggestions for choosing chemical logistics companies
If you are a chemical company seeking third party logistics support, you will want to make a careful assessment. There are many responsibilities and safety risks associated with the storage and transportation of hazardous materials. This is especially true in the heavily regulated California market.
Customer density in the West Coast market requires chemical manufacturers to maintain local inventories. So, when choosing a chemical logistics company, how do you distinguish an experienced and capable company from a company that only claims to have the ability? Here are some suggestions.
Check the supplier's reputation and objective sources. Don't rely on 3PL's marketing campaign to measure its performance. Check these claims with the opinions of external companies and institutions familiar with the supplier. For example, the local fire department with jurisdiction over the supplier's warehouse will understand the company's ability to manage the health, safety, security and environmental requirements of hazardous material storage.
Look for experience in handling the chemicals you sell. Third party logistics operating one class of chemicals does not necessarily have the qualification to deal with other chemicals. For example, unregulated chemicals do not require the same strict chemical storage procedures as inflammables, oxidants, explosives, corrosive substances and other hazardous materials.
Limit traffic miles. Using chemicals, the less mileage, the better. First of all, the transportation of dangerous chemicals is dangerous. The more mileage, the greater the risk. Secondly, the transportation cost of chemicals is high. Find a central supplier to reach your customer base effectively, which will reduce your costs and risks.
Tap the experience of key personnel. Ask those who supervise and operate your company's chemical logistics experience. These people should advise you on rules and regulations, paperwork and operating procedures, not the reverse. How deep is the supplier's training program? Some third-party logistics companies train only top-level employees, not all employees who have access to the account on a regular basis.
Ask to see a supplier's environmental, health and safety plan, which should include details of the training plan. If transportation management is part of the solution, ensure that the supplier is proficient in the regulatory requirements for packaging and transportation for all relevant modes of transportation - IATA (air), IMDG (SEA), or dot (road transport).
For trucking services, understanding federal regulations is not enough, because regulations change as dangerous goods cross state boundaries. Bottom line: there is a lot of detail and complexity involved in chemical logistics, which should be reflected in the supplier's training plan.
Choose your partner according to your current and future needs. Too many proposal requests only require 3PL's ability to meet current requirements. On the contrary, looking for partners in the future should be able to anticipate the costs involved and be able to meet your needs well. For example, you may not be able to transport goods by rail today, but in the future you may want to take advantage of this low-cost mode of transportation. In this case, it is wise to choose a warehouse with a railway branch line.
Again, what you need today may be simple pallet in / pallet out storage and distribution. But what if future demand involves, for example, repackaging 50 gallon barrels into 10 5-gallon barrels? Can the provider handle the task? Does the provider really want to do this?
Looking for suppliers to provide integrated logistics services. You'll find many chemical warehouse services and many last mile transportation candidates. However, there are far fewer chemical logistics providers that can integrate these services with the seamless visibility of stationary and moving products. Advantages and disadvantages of integrated logistics service
One provider includes:
Maintain product integrity throughout the distribution cycle, including compliance with temperature control requirements.
Create a closed-loop supply chain by bringing reusable containers back to the warehouse after delivery.
Reduce your management burden with a single point of contact.
Find out how active the supplier is in the industry group. Environmental and safety regulations in the chemical industry are constantly changing. Suppliers need to stay active in industry organizations to keep up with these changes. If not, we can fairly question their commitment to serving chemical customers.
The chemical Committee of the international warehousing and Logistics Association, the National Association of chemical distributors, and the warehousing education and Research Committee are just a few organizations that provide practical education in chemical storage and transportation.
