CARGOCONNECT-APRIL2025 - Flipbook - Page 68
PANEL 1
INNOVATING CHEMICAL SUPPLY CHAINS FOR RISK
REDUCTION AND FUTURE-READY OPERATIONS
“The chemical supply chain in
India is at a critical juncture,
facing challenges such as
geopolitical shifts, regulatory
pressures, and supply chain
disruptions, while also seizing
opportunities through process
innovations. Risk management
continues to be a top priority,
with companies addressing raw
material volatility, global trade
uncertainties, and stringent safety regulations. Procurement strategies now
emphasise balancing cost e昀케ciency, diversi昀椀cation, and Environmental,
Social, And Governance (ESG) compliance to ensure long-term stability.
Sustainability remains a crucial factor, particularly in the movement
of hazardous cargo, multimodal transportation, and infrastructure
development, which require innovative solutions to optimise e昀케ciency.
Technological advancements are reshaping supply chains, with AI,
blockchain, digital twins, and predictive analytics improving visibility,
risk mitigation, and operational e昀케ciency. Pro昀椀tability now coexists
with a strong focus on sustainability and compliance.”
BHUPENDRA KUMAR, Head– Logistics, IOL Chemicals and
Pharmaceuticals (MODERATOR)
“It's essential to evaluate how
many suppliers you have for
critical items and whether
your supplier base is diversi昀椀ed. Relying on a single supplier or region, like China, can
expose your business to risks
such as geopolitical instability
or trade disruptions. Next, the
evaluation of suppliers plays
a signi昀椀cant role in managing
risk. It’s not enough to simply do business with a supplier; you need
to understand their risk management strategies. This includes how
they produce and dispatch materials, as well as whether they have a
diversi昀椀ed supply chain themselves. Collaboration with suppliers is
also crucial. By forming teams—either internally or with suppliers—you
can collectively address risks related to materials or services. Another
important aspect is leveraging technology—which also plays a vital
role in effective inventory optimisation. Technology tools provide
real-time alerts and information on global events, geopolitical risks,
and supply chain disruptions, helping you anticipate potential risks
and plan ahead.”
MILIND GADRE, GM– Procurement, Gargi Hüttenes-Albertus
“One critical issue is the lack of
transparency within the supply
chain itself. Over the last 昀椀ve
years, we've been talking about
the “China Plus” strategy, yet
the global economy is shifting
its focus toward R&D. When
we compare R&D spending,
India’s investment is less than
1% of its GDP, whereas China
invests between 6% and 10%.
This disparity highlights a crucial gap in our approach. The focus should
be on product development and innovation, not just replicating processes
or merely copying established models. Environmental concerns are
becoming increasingly rigorous and evolving quickly. This is especially
true because technical speci昀椀cations for products vary signi昀椀cantly across
global markets—whether in Europe, Asia Paci昀椀c, or the US. Even though
customs and trade regulations, like CTX are de昀椀ned, their interpretation
can vary widely. This is something we see with Indian customs, where
regulations may be applied inconsistently, further complicating the
supply chain process.”
“From a global perspective,
there are numerous opportunities for Indian industries, particularly in terms of exports.
However, challenges such as
the lack of full ESG compliance
pose barriers. Currently, the
Indian chemical industry is
primarily focussed on safety
aspects—whether it’s personal
safety, process safety, or equipment safety. But when it comes to ESG considerations, many questions
remain unanswered. For instance, global customers are increasingly
asking about gender diversity and other social criteria, areas where
Indian industries are still in the early stages of responding. This is a major
opportunity, or rather, a challenge that must be addressed. Besides that,
logistics-related challenges at ports, or in terms of packaging, labelling
remain prevalent. While domestic logistics are managed reasonably well,
when it comes to exports, issues often arise. This leads to rejections,
corrective actions, and an overall lack of preparedness in addressing
these challenges at the export level.”
AJAY SINGH, Chief Supply Chain Of昀椀cer, Hindustan Platinum
RUTVIK DAVE, Head– Purchase and Supply Chain, Myk Laticrete India
68 | CARGOCONNECT APRIL 2025
