How Coatings Manufacturers are Reinventing Their Supply Chains
Coatings industry supply chain challenges have intensified over the past years, with raw material shortages and logistics issues disrupting production across the sector. A delay or shortage of just one material can create a ripple effect.
Shortages lead to price increases. This raises manufacturing costs and makes it tough for businesses to compete. The coatings industry faces challenges. However, new technology and better supply chain strategies bring hope.
Unpacking the Raw Material Crisis in the Coatings Industry
Before we look at solutions, let’s examine the factors behind the raw materials crisis. This issue affects the entire billion-dollar industry in many ways:
- Global supply chain disruptions from the pandemic: The pandemic caused a two-year crisis. The number of raw material producers decreased, leading to higher prices and longer lead times. Recovery has been slow, with other factors complicating the situation.
- Petrochemical price volatility: The price of petrochemicals, essential for many coatings, has fluctuated due to inflation, shortages, and rising demand. This makes sourcing these materials more challenging and costly.
- Geopolitical conflict: The Russian-Ukrainian war disrupted the supply of titanium feedstocks and other materials, worsening inflation. Conflicts in the Middle East have also interrupted vital shipping routes for the chemical industry.
- Regulatory and environmental challenges: Sustainability efforts have caused some chemicals to be banned or limited. Manufacturers are moving to eco-friendly options. But they often struggle to find the right alternative raw materials. This is especially true with demand on the rise.
Emerging Strategies to Navigate Supply Chain Disruptions
Here are key strategies for coatings manufacturers to tackle the raw materials crisis:
- Diversify supplier networks: Having multiple suppliers reduces the risk of shortages. If one supplier faces a delay, others can step in.
- Nearshoring: By sourcing materials closer to home, manufacturers can respond faster to disruptions, reducing reliance on distant suppliers.
- Real-time visibility: Technologies like IoT devices and AI can improve supply chain visibility. They help manufacturers track performance, spot delays early, and minimize the impact of shortages.
- Embracing sustainability: Staying compliant with environmental regulations is crucial. Focusing on sustainability helps maintain resilience against disruptions.
The Role of Technology in Reinventing Supply Chain Operations
Technologies like IoT and GPS trackers provide real-time data and insights. AI systems analyze this data, transforming supply chain operations. They enhance visibility for coatings manufacturers, allowing quicker responses to disruptions.
This technology helps with routing and transport planning. It cuts fuel costs and speeds up delivery times. Solving the materials shortage is tough, but using new technologies in supply chain management is crucial.
How CheMondis Supports Coatings Procurement Teams
Navigating today’s coatings industry supply chain challenges has intensified over the past years, with raw material shortages and logistics issues disrupting production across the sector. Requires more than reactive sourcing; it demands smarter supplier selection, faster decision-making, and greater supply chain transparency.
At CheMondis, we help procurement teams in the coatings industry secure the right raw materials with confidence. Our Procurement Discovery service gives you structured access to verified chemical manufacturers across Europe, China, and beyond.
