CARGOCONNECT-APRIL2026 - Flipbook - Page 64
Panel 1
Resilient by Design – Building Shock-Proof Chemical
Supply Chains
“In supply chains, vulnerability
does not always appear at the
operational level. Often, it exists
at the level of concentration, hidden
within systems that have been
optimised purely for efficiency.
Excessive concentration, whether
in sourcing, production or logistics
creates signi昀椀cant risks. Developing
alternate suppliers in the chemical
sector requires signi昀椀cant research
and development, validation and scalability e昀昀orts. The entire supply chain
ecosystem, including o昀昀shoring, reshoring and supplier capabilities must
be considered before such decisions are made. At the same time, digital
transformation is reshaping the regulatory and operational landscape.
Governments and regulatory bodies are increasingly introducing integrated
digital platforms to enhance transparency and compliance across supply
chains. However, alongside technology, the human element remains equally
critical. While there is extensive discussion around AI, automation and
advanced digital systems, the e昀昀ectiveness of these technologies ultimately
depends on the people who use them.”
“Building a resilient supply chain
depends on readiness, readiness
and readiness. Today, the key question is whether an organisation is
prepared to respond to geopolitical
developments and external disruptions that may arise at any
time. To ensure this readiness, we
focus heavily on scenario building
and scenario planning. We use
structured processes supported
by digitally enabled tools that continuously monitor global developments
and keep the organisation informed about emerging risks. In parallel, a
closely connected team tracks policy developments, regulatory changes
and geopolitical signals. Another important element is continuous scenario
analysis. Our team regularly evaluates potential disruptions and asks
practical questions: What happens if a port suddenly closes? What if
cargo is delayed in customs clearance? What if a plant producing a highly
specialised raw material shuts down due to operational or safety issues?
By simulating these possibilities in advance, we as an organisation remain
better prepared to manage disruptions when they actually occur.”
“For a company operating in the
chemicals sector, particularly one
that sources raw materials but sells
昀椀nished goods closer to consumer
markets, supplier diversi昀椀cation
becomes important when managing procurement strategies. For
commoditised raw materials,
where there is little differentiation in quality between supplier
A, B or C, multi-sourcing works
well. However, the situation is very di昀昀erent when dealing with specialty
or patented chemicals. In these cases, deeper collaboration with suppliers,
stronger engagement and joint risk management become far more e昀昀ective strategies. There is also a third category of raw materials—highly
specialised products that are manufactured by only a limited number of
companies globally. In this case, the focus must shift toward de-risking
the product itself by reducing dependence on that speci昀椀c ingredient. One
approach gaining traction in this context is the exploration of alternative
chemistries and more sustainable sourcing practices. Some of these unique
or intellectual property–driven products may gradually be replaced by
alternative solutions.”
“Chemical companies form nearly
30% of Allcargo’s overall portfolio. Today, we work with more
than 50–60 chemical companies,
including many leading names in
the industry. On the consultative
logistics side—speci昀椀cally warehousing services—our focus is on
establishing large, fully compliant
warehouse facilities for chemical
companies. These facilities adhere
to strict regulatory and safety standards while o昀昀ering customers the 昀氀exibility and scalability required for their operations. Technology also plays
an important role in our warehousing model. We use in-house developed
systems to manage warehouses where multiple SKUs are stored. These
platforms provide customers with real-time visibility into their inventory,
including insights on fast-moving SKUs and long-tail inventory. Many
of our customers operate in seasonal businesses, which means demand
昀氀uctuates throughout the year. Accordingly, we support them during both
peak and lean periods. For several clients, we operate on a variable pricing
model that aligns with these demand cycles, allowing cost e昀케ciencies to
be passed on to the customer.”
SOMAK CHAKRABORTY, Associate GM– Purchase, Asian Paints
SURESH NARAYANAN, Vice President– Operations, Allcargo Logistics
AJAY SINGH, Chief Supply Chain Of昀椀cer & VP, Hindustan Platinum
(MODERATOR)
64 | CARGOCONNECT APRIL 2026
AVINASH SAINDANE, Head– Procurement (India) and SCM,
PETRONAS Lubricants (India)
