Procurement problems faced by chemical suppliers

Purchasing is the core of any large organization. Finding the raw materials you need at the right price is the key to keep your business going. In the complex and delicate world of the chemical industry, there are very few chemical suppliers who meet all the requirements. The following are seven common procurement problems faced by chemical suppliers:

1. More competition and greater complexity

You're not afraid of competition, but you don't want them to have the upper hand in getting the best sources of chemicals. The industry is complex and demanding, and so are your orders. You need a chemical supplier who fully understands your complex needs and meets them every time.

2. It will exceed the budget

It's much easier than we're willing to admit. Overspending can have direct and serious consequences, affecting credit lines, disrupting profit forecasts, and stopping further purchases. Although this situation can usually be remedied, it is important to make the procurement process streamlined and efficient.

This problem usually comes down to a lack of communication within the organization rather than careless spending activities. This problem should be solved more quickly by regular updating of software and internal accounting.

3. Transparency of supply chain is needed

Your standards are very high, and the quality requirements of suppliers are also very high. Your goal is to find a completely transparent supply chain from source to delivery, otherwise it will not work.

When you find that a supplier provides you with this level of supply chain transparency, but lacks some other basic business practices you need, such as timely delivery and flexible ordering, the challenge comes.

4. More choices of raw materials are needed

When your chemical needs are complex and diverse, you need to be able to buy raw materials for a variety of purposes. When a reliable supplier can't offer you such a choice, you know it's time to make a change.

As your business grows, so does your demand. You need to keep up with your supply. Failure will have a negative impact on your reputation and your business.

5. Damaged goods

You don't accept a damaged order in your personal life, so why do you accept it in your business? Of course, these things may happen, you may feel that you have to cover up a one-time disaster, but repeated orders will lead to damaged spell trouble.

Most chemicals are highly toxic in nature. If the supplier exposes your employees to unnecessary risks, they will soon find their names disappear from your purchasing books.

6. Shipping logistics

Once you place an order, you need to be able to trust that it will arrive in time. Logistics, express delivery, all depend on your supplier. You've paid for your services, and the rest is up to your suppliers.

Having a chemical supplier who takes customers seriously is what you pursue. A person who knows what timely supply means to your company and strives to fulfill their delivery promise. You want to be able to track your orders, you need flexibility and quick tracking service options. You need your suppliers to be as flexible as your business.

7. Accidental order

Just as with over consumption, unexpected orders are often the rough picture of misunderstandings. This software allows you to double your orders, or simply make daily human errors. How flexible is your supplier when returning the wrong order?

Check your purchasing route carefully to find out how the error occurred. Mistakes do happen, but too many mistakes cost money. While your supplier may be happy that you return the first item that you mistakenly ordered, this may not be true for the second or third item.