Chemical industry is constantly changing, with companies operating in the industry seeking to align with international market developments in order to achieve greater market share. Role takers in this industry can be divided into manufacturers, suppliers, petroleum and chemical engineers and logistics.
Manufacturers of chemicals include suppliers of raw materials, mine owners and manufacturers of chemical compounds. Suppliers (exporters, distributers) are companies that purchase chemicals from manufacturers and deliver them to consumers. On the other hand, petroleum and chemical engineers provide solutions for the production and optimization of chemicals.
The operation of each of these sectors has been influenced by developments in the chemical industry. Being aware of how changes come in the chemical supply chain and market forecasting will play a key role in the success of any business. In the following, we will refer to each of these sectors in general, but our main area to focus will be chemical suppliers.
Activity in the specialized field
The chemical market can greatly influence any other markets. It can be said that all industries are directly or indirectly dependent on chemical industry. Therefore, in this situation, choosing a specialized field or target market is essential. Undoubtedly, powerful presence in a specific area of expertise, will have better results. It can also create a specialized brand image for customers and gain confidence.
The choice of specialized field in chemicals maybe based on the industry, product or category of materials. For example, a chemical supplier may supply drilling fluids, or supply variety of minerals, or generally supply all of the chemicals in a particular industry, such as leather, paint, and resin.
One issue that might arise here is that many products are used in different industries. For example, soda ash, which is widely used in the glass industry, is also used in other industries such as detergent and food production. According to this point, using a technical team consisting of the necessary expertise in the field of chemistry, oil and food can increase the technical power of a company.
For example, TEAM chemicals company offers widely used products in the food, medicine, detergent, paper, etc. industries, but by checking the website of this company from here, you will find that their activity is focused on drilling industries. Therefore, the TDS and MSDS files of each product are provided according to their formulation in drilling industry.
Data usage and artificial intelligence
Supply chain management using local data without considering what is happening in the international market won’t have the desired outcome. Artificial intelligence is important for predicting how market changes and forecasting revenue generating areas. This is important not only in choosing the most suitable chemicals for investment, but also in other levels such as the time of purchase, the time required for storage, rising, falling and seasonal trend.
One problem that is currently deteriorated, is the increase in the expenditure of supply chain management. This price increase includes shipping costs, workforce, raw material supply, packaging costs, safety and receiving laboratory approvals. This situation affects all companies, but it will make the situation much more difficult for startup companies.
In this situation, the use of data along with staying updated with rapid changes will be of particular importance due to market changes. The role of artificial intelligence in controlling and optimizing costs and capital is significantly important. Leaving the comfort zone of existing markets and using the analyzed data can largely meet these requirements.
Connecting international markets
Increasing market share and entering international markets means entering tougher competition. This is where having an optimal chemical supply chain can be one of the most important competitive advantages.
New marketing methods
None of the industries, including chemicals, are exempt from Digital Transformation. These changes have made many marketing efforts in chemical industry to become online. Many platforms have been set up around the world to connect manufacturers, suppliers and buyers of chemicals. Therefore, for each order, new sources can be easily identified, as the result different proposals can be received. Presence on these platforms not only generates sales, but also is a reliable method of branding, especially for start-ups that are seeking for finding greater market share.
Finding new chemical suppliers has reached social networks and online space. The low price, free features and the possibility of fast communication have made the popularity of buying and selling chemicals online.
Factors influencing chemical market share
- Speed in submitting purchase documents and prices
- Reduce delivery time
- Technical knowledge about chemicals, characteristics and usage
- Create integrated processes from bid submission to delivery
- Use of customer relationship management systems
- Technical and financial transparency
- Creating a clear brand image to facilitate international communication
- Create added value and distinctive services
- Having the right marketing strategy
- Choosing a field of work commensurate with financial and human capital
- Provide personalized solutions for each customer
The distinguishing features of chemical suppliers
In superficial view, supply of chemicals is just buying from a manufacturer and selling it to a customer. However, this process requires reliable sources of supply. Marketing efforts are always costly, so having an efficient chemical supply chain can make those efforts effective.
In the chemical market, small suppliers are not looking for new customers, but attracting and continuing to work with reliable customers is the first priority.
Since many customers place orders monthly, focusing on existing customers and satisfying them is a top priority.
Professionalism and reliability can be the distinguishing feature of all companies. When competitors are focused only on sales, you can create a different shopping experience for your customer by adding value to the customer and providing expert advice and documentation.
Theme Focusing on providing solutions can turn your business into a solution-oriented company. By providing suitable products for optimizing chemical processes and comparing them with traditional products, you can create a new market share for your brand.