Finding the right chemical service provider (SP) for your project requirements and services needs can be quite difficult. Service needs range from chemical and physical blending to packaging, warehousing and transportation. Most companies actually spend 70% of their time on searching and quoting activities and only 30% on sample testing and purchasing. There are many factors to consider when making a selection, such as assuring the potential partner:
Advantages of Outsourcing
Outsourcing can provide many advantages like eliminating the need to invest in equipment and skilled labor, resulting in lower asset costs and fixed costs. It also offers increased flexibility and cheaper raw materials. By outsourcing, you can focus on what’s important to your company and let the service provider solve common problems by providing:
Technical capabilities: You may lack in-house R&D, manufacturing, packaging, warehousing and logistics capabilities. Whether it is a new product that is being introduced into the market or an existing operation, you can outsource the capacity either partially or completely to an experienced partner.
Flexibility: You may need a partner to manage surges in demand caused by factors such as seasonality. A professional SP should be able to assist in turning on production when it’s needed and off again when required.
CAPEX/OPEX: A project may require certain equipment needs that you would otherwise have to purchase. Outsourcing can give you access to a wide variety of different equipment without having to pay for the purchasing costs or the overhead costs of the space needed to house the equipment.
Logistics: Partnering with SP’s closer to the final destination prevents you from having to ship products over long distances, bringing cost and delivery efficiencies.
7 Criteria to Consider When Choosing a Chemical Service Provider
Selecting a service provider for your chemical project is a critical decision that requires careful analysis. Here are 7 criteria to consider:
Conclusion
Outsourcing your chemical project to a SP is a critical decision that can save you time and money but requires careful research and analysis of numerous factors to ensure success. Unfortunately, the traditional search and quoting process is inefficient and often leads to undue frustration, sub-optimal partnerships and compromised quality. ChemVM Technologies aims to change this with a customer-centric online experience that is efficient and thorough. Using our precise matching software that efficiently matches your unique project to ideal service providers, you can cut the time spent on searching and quoting activities from months to days. In turn, using ChemVM, SP’s can connect with best-fit customers matched to their capabilities to maximize profit and capacity utilization.
Chemical Process Engineers and Procurement Leaders Get Started with ChemVM
Chemical procurement and supply chain leaders, chemical process engineers, entrepreneurs and other buyers needing a private label product made, market testing, production outsourcing, or formulation and process engineering support can get started by entering their project at chemvm.com/customers.