DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, recently invited chemical logistics experts to Antwerp, Belgium, to discuss the current developments of the chemicals sector and their impact on the value chain. The global chemicals market is developing very positively. Since 2006, sales have doubled in the chemicals sector, and in 2016 alone, chemicals worth almost 4.6 trillion Euros were sold worldwide. By 2035, the market is expected to grow to 5.6 trillion Euros. But this growth is accompanied by challenges. DHL presented various solutions such as the DHL Resilience360 tool and the Logistics Service Cube as well as the Cost-Benefit scale to meet these challenges and achieve real competitive advantages.
“The Chemical Industry is in a period of sustained change, with many diverse forces, internal and external, having a huge impact on Chemical Supply Chain activity and driving the need for more creative thinking. We see the DHL Chemical Event as a platform for encouraging debate, exchanging ideas, and facilitating dialogue between all partners in the chain,” says Michael O’Hara, Global Head of Chemicals, DHL Global Forwarding.
Today’s supply chains will transform into digital value-added networks and significantly change the world of business. Chemical companies will need to manage significant amounts of data, requiring extensive computing capacity and new algorithms. New supply chain solutions will be required to harness the opportunities created by the technological transformation and foresee potential risks given by external factors.
Real-time risk management for complex supply chains
The transport of highly sensitive and valuable products in the chemicals sector makes it increasingly necessary to identify potential risks and disruptions in the supply chain in order to be able to react early and minimize risks in logistics. For this purpose, DHL offers the risk management solution DHL Resilience360. The tool analyzes in real time whether ships, railways or trucks are experiencing problems during transport. The platform links information on natural catastrophes, socio-political and other risks with customers’ global production and distribution networks. This enables customers to find alternative transport routes or stop the load well before an incident.
“Tools like Resilience360 allow shippers to identify and anticipate risks in an early state. Tools like this are invaluable in the future, “says An D’Haenens, Global Manager Compliance, Sustainability and Logistics Enablement, DuPont, Belgium.
Competitive advantages through differentiated logistics services
But it is not only through the use of digital control systems that processes in supply chains can be optimized. The use of differentiated logistics services can also generate advantages. This is the key conclusion of DHL Global Forwarding’s new white paper “Differentiated Logistics Services”. The study presents two tools – the Logistics Service Cube and the Cost-Benefit Scale – which help chemical companies to make the best possible decisions in a relatively new and largely untapped field of activity.
The Logistics Service Cube enables companies to more systematically identify the right logistics service for a product, a supply chain type and the respective customer segment. The cost-benefit scale also simplifies the selection of suitable measures and solutions by “quantifying” the effect of differentiated logistics services. This increases transparency and enables better risk assessments, for example with regard to sales, selling prices and logistics costs.
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