Best Chemical Procurement Practices And Challenges

Chemical procurement is the process of acquiring items and/or ingredients for business purposes. Chemical procurement has to be done with keen eyes and wise knowledge about chemicals. Procurement of chemicals is all about obtaining the raw materials / chemicals at the right price and specification without compromising on quality and quantity.

Best Chemical Procurement Practices

1. Maintaining proper data about feedstock of chemicals through software / datasheet
2. Get COA / MSDS before placing the order
3. Following CAS number is to rule out confusion in identifying compounds and serves as a common link between various nomenclature terms that describe substances.
4. Establishing proper chemical purchase list with CAS number and reviewing it from time to time
5. Maintaining data about the quantity and specifications of the chemicals purchased
6. Ignore traders & procure directly from manufacturer / supplier with assured high-quality
7. Digitalizing the procurement process through an e-commerce platform
8. Transparent communication with suppliers and build supply chain
9. Following proper safety standards while delivering chemicals and make sure labels are intact and information printed are legible at all times
10. Storage of chemicals – The right storage method begins with gaining knowledge on the properties of chemicals, their compatibility & incompatibility with other chemicals, right handling techniques, etc.

There are several best practices followed when it comes to the procurement process. Other industries follow practices like

• Open Tendering
• Restricted Tendering
• Request for Proposals (RFP)
• Two-Stage Tendering
• Request for Quotations
• Single-Source

Challenges faced by Companies in the Procurement Process:

Companies face a handful of challenges like increasing regulations, quality, sustainability, changing demand-supply situations, and more.

1. Increasing Traders
2. Budget goes off-limits
3. Supply Chain Instability
4. Logistics Issue
5. Damaged Goods