The global economic situation for the chemical industry is highly unpredictable and volatile. The top management of companies need to keep a close watch on the global trends that would directly or indirectly impact their business. It is also essential to stay up-to-date with the changing trends to get a bigger picture of the market conditions and even to know what exactly your competitors are up to. Curious to know what are the trends that have been keeping chemical companies on their toes in order to make quick alterations in operation and gain the early bird advantage in the market?
The era of digitization
The Internet and mobile phones have taken over the world. The increasing access and exposure to technology have made customers more demanding. Today, the customers want more intimacy and transparency with the company. Even the B2B customers have started demanding detail order receipts and the ability to track shipments in real-time. Vendors and customers are more likely to lose their trust in companies that are technologically obsolete. Therefore it has become the need of the hour for chemical companies to update themselves.
The regulations governing everything from material handling, labeling, manufacturing, storage, and shipping of products keep changing from time to time. The rules and regulations in the chemical industry vary from region to region or from country to country. Therefore, chemical companies operating in different regions, especially across borders must be well aware of the existing regulations and alter their operations accordingly to prevent regulatory and legal interventions.
Distribution Channel Changes
Chemical companies are widely adopting trends like mass customization. Such trends are expected to impact the manufacturing and supply chain of chemical substances. Companies are likely to take advantage of mass communication by shipping directly to customers rather than selling to a few manufacturers that create their own products and manage distribution. With chemical companies becoming more accessible to customers, more number of customers might place smaller orders making it essential for players in the industry to have a strong supply chain.