In the competitive arena of the chemical industry, a Chemical B2B Lead Generation Platform emerges as an indispensable tool for businesses. These platforms are ingeniously crafted to streamline the process of identifying and engaging potential clients, a task that is particularly challenging in this sector. By employing advanced data analysis and targeting capabilities, companies can connect more effectively with leads that have a higher likelihood of converting into loyal customers.
Such a robust platform typically encompasses features like insightful market analysis, tracking of customer behaviors, and personalized communication strategies. This allows for a tailored approach, crucial in the nuanced world of the chemical industry. Additionally, the integration with CRM systems ensures that leads are nurtured effectively through every stage of the sales funnel.
With the right platform in place, chemical companies can significantly enhance their sales pipeline, improve conversion rates, and drive substantial revenue growth. It’s a strategic investment that redefines how chemical suppliers and manufacturers expand their market reach and secure long-term business deals.
TABLE OF CONTENTS
Introduction: Understanding the Importance of Lead Generation in the Chemical Industry
Challenges in the Chemical B2B Sector and the Need for a Specialized Lead Generation Platform
Features and Benefits of a Chemical B2B Lead Generation Platform
How to Choose the Right Platform for Your Chemical Business
Revolutionizing Chemical B2B Lead Generation
Tips and Best Practices for Maximizing Lead Generation on a Chemical B2B Platform
Future Trends and Advancements in Chemical B2B Lead Generation Platforms
Conclusion: Harnessing the Power of a Chemical B2B Lead Generation Platform for Business Growth
Introduction: Understanding the Importance of Lead Generation in the Chemical Industry
Lead generation in the chemical industry is a nuanced and vital process, indispensable for business growth and sustainability. The industry, known for its specialized products and complex supply chains, demands a lead generation strategy that goes beyond standard marketing techniques. It’s not just about attracting a high volume of leads, but about finding those who are genuinely interested in and have a need for the specific products or services offered.
In this context, the importance of understanding and targeting the right audience cannot be overstated. This involves deep industry knowledge, insights into customer behavior, and an awareness of current market trends. Effective lead generation in this sector means identifying potential clients who are not only in the market for chemical products but are also the right fit for the specific solutions offered.
Moreover, the long sales cycles and high value of transactions in the chemical industry make it crucial to nurture leads effectively. It’s not just about the initial contact; it’s about building relationships, understanding client needs, and providing tailored solutions that meet these needs. This process often involves educating potential customers about the products, their applications, and the value they add.
The role of technology in lead generation is also paramount. Utilizing data analytics and digital marketing tools can significantly enhance the efficiency and effectiveness of lead generation strategies. These tools can help identify potential leads, track their engagement, and provide insights that can be used to refine marketing and sales approaches.
In conclusion, lead generation in the chemical industry is a complex yet critical component of business strategy. It requires a combination of industry knowledge, targeted marketing, relationship building, and technological integration to be successful. Understanding its importance is the first step towards developing a robust lead generation strategy that drives growth and secures a competitive edge in this dynamic industry.
Challenges in the Chemical B2B Sector and the Need for a Specialized Lead Generation Platform
The chemical industry faces unique challenges in B2B lead generation. One primary challenge is the high degree of product specialization. Chemical products often have specific applications, requiring businesses to target a narrow and highly informed customer base. Another challenge is the stringent regulatory environment, making it crucial for companies to ensure compliance and communicate this effectively to potential leads.
Furthermore, the industry’s long sales cycles demand sustained engagement strategies. Unlike industries with quick turnaround times, chemical sales involve lengthy deliberations, necessitating a persistent and informed follow-up approach. The complexity of these products also means that potential clients often require extensive education and consultation before making a purchase decision.
Additionally, the global nature of the chemical market introduces challenges like language barriers, cultural differences, and varying regulatory standards. This global reach requires a lead generation platform that can navigate these complexities effectively.
Given these challenges, the need for a specialized lead generation platform in the chemical industry becomes evident. Such a platform must be capable of handling the specificities of the industry, including understanding the technical aspects of the products, navigating the regulatory landscape, and engaging with a highly specialized target audience over extended periods. The ideal platform would leverage advanced data analytics to identify and target potential leads, utilize digital marketing strategies to reach a global audience, and provide tools for effective communication and relationship building.
Features and Benefits of a Chemical B2B Lead Generation Platform
A specialized Chemical B2B Lead Generation Platform typically offers a range of features designed to meet the unique needs of the chemical industry. These features include:
Targeted Marketing Tools: The platform provides advanced tools for segmenting and targeting potential leads based on industry-specific parameters. This ensures that marketing efforts are focused on the most relevant audience.
Regulatory Compliance Assistance: Given the strict regulatory environment of the chemical industry, these platforms often include features to help businesses stay compliant, such as updates on relevant laws and regulations.
Detailed Analytics and Reporting: In-depth analytics enable businesses to track the effectiveness of their lead generation strategies and make data-driven decisions.
Global Market Reach: With features designed to navigate different languages and cultural nuances, these platforms can extend a company’s reach to international markets.
CRM Integration: Seamless integration with Customer Relationship Management systems ensures that leads are nurtured efficiently throughout the sales cycle.
The benefits of using such a platform are manifold:
Increased Efficiency: Automating and streamlining lead generation processes saves time and resources.
Higher Quality Leads: Targeted marketing results in leads that are more likely to convert.
Compliance Assurance: Staying on top of regulatory changes reduces risk.
Data-Driven Insights: Analytics aid in continuously refining marketing strategies.
Expanded Market Presence: Access to global markets opens up new business opportunities.
How to Choose the Right Platform for Your Chemical Business
Choosing the right lead generation platform is crucial for success in the chemical industry. Consider the following key factors:
Industry Specificity: Ensure the platform is tailored to the chemical industry’s unique needs.
Compliance and Regulatory Features: The platform should help navigate the industry’s complex regulatory environment.
Global Reach and Localization: It should support international business with multi-language and localization capabilities.
Integration with Existing Systems: Check for compatibility with your current CRM and other business systems.
Data Analytics and Reporting: Look for platforms with robust analytics for informed decision-making.
Customer Support and Training: Good customer support and training resources are essential for maximizing the platform’s potential.
Scalability: The platform should grow with your business, accommodating expanding needs.
User Reviews and Testimonials: Research and consider feedback from current users in the chemical industry.
Selecting the ideal chemical B2B lead generation platform involves a strategic approach. Begin by identifying your target market and business goals, ensuring the platform aligns with these objectives. It’s important to choose a platform that specializes in the chemical industry to guarantee relevance and expertise.
Consider the quality and sourcing methods of the platform’s data. High-quality, accurate data is crucial for lead generation success. Also, evaluate the platform’s integration capabilities with your existing CRM or sales tools to ensure a seamless workflow.
Customer support level is another critical factor. A platform with responsive support can significantly aid in overcoming any challenges. Lastly, consider the pricing structure and potential ROI in relation to your budget.
By thoroughly assessing these factors, you’ll be able to select a platform that not only meets your current business needs but also supports future growth through effective, targeted lead generation.
Revolutionizing Chemical B2B Lead Generation: A Closer Look at Chemondis
Chemondis has emerged as a significant player in transforming B2B lead generation within the chemical industry. Founded in mid-2018, this platform represents a novel business model that combines chemical expertise with technological know-how, making it unique in its approach. Located in Cologne, Germany, Chemondis is becoming a central figure in the startup ecosystem, driven by a culture that values openness, innovation, and humor.
Marketplace Connectivity: Chemondis connects buyers and suppliers of chemicals, providing a user-friendly sourcing experience that revolutionizes chemical trade.
Global Reach: The platform supports international business transactions, offering a range of products and enabling companies to expand their supplier network.
Digital Communication: Chemondis modernizes trade communications, moving away from traditional methods like fax and phone to real-time chat messages and digital document sharing.
Automated Sourcing and Tender Opportunities: The platform includes features like Saved Searches for automatic updates on new suppliers, and a bulletin board for industry-wide tender and deal opportunities.
Tips and Best Practices for Maximizing Lead Generation on a Chemical B2B Platform
Maximizing lead generation in a specialized industry like chemicals requires a strategic approach. Here are some tips and best practices:
Understand Your Audience: Know who your target customers are, including their needs, pain points, and decision-making processes.
Leverage Data Analytics: Use the platform’s analytics tools to gain insights into market trends and customer behavior. This data can guide your marketing and sales strategies.
Create Engaging Content: Develop informative and relevant content tailored to your audience. This could include product details, case studies, industry news, and practical applications of your products.
Optimize Product Listings: Ensure that your product listings are clear, detailed, and accurately reflect the features and benefits of your products. Use keywords that potential customers might use to search for your offerings.
Active Engagement: Regularly update your profile and interact with potential leads through the platform. Prompt responses to inquiries and active participation in discussions can build credibility and trust.
Utilize Digital Marketing Tools: Integrate your platform activities with broader digital marketing strategies, such as email campaigns, social media marketing, and SEO.
Offer Competitive Pricing and Terms: Stay competitive with your pricing strategies and be transparent about your terms of sale, delivery options, and any other pertinent information.
Continuous Learning and Adaptation: Stay updated with the latest features of the platform and adapt your strategies accordingly. Participate in webinars or training sessions offered by the platform to enhance your skills.
Network Building: Use the platform to build a network of contacts within the industry. Networking can lead to partnerships, collaborations, and new business opportunities.
Monitor and Adjust Strategies: Regularly review the performance of your lead generation activities and be prepared to adjust your strategies based on feedback and results.
By following these tips and best practices, businesses can effectively utilize chemical B2B platforms to generate quality leads, build strong relationships, and ultimately drive sales growth in the chemical industry.
Future Trends and Advancements in Chemical B2B Lead Generation Platforms
Advancements in chemical B2B lead generation platforms are expected to bring significant changes in how companies engage with potential clients. Key future trends include a greater reliance on data analytics and AI for predicting buying patterns and identifying high-potential leads. Seamless CRM integration will provide real-time insights for personalized marketing. Additionally, platforms will likely offer sophisticated tools for segmentation and targeting, focusing on the most relevant prospects. The use of immersive technologies like virtual and augmented reality for product demonstrations could make the sales process more interactive and engaging. Blockchain technology might also be integrated for enhanced data security and transaction transparency. Lastly, with the increasing importance of sustainability, platforms could prioritize leads aligning with eco-friendly practices, aiding companies in responsible business connections.
The landscape of chemical B2B lead generation is evolving rapidly, driven by technological advancements and changing market dynamics. Key future trends include:
Data Analytics and AI: Expect a surge in the use of data analytics and AI. These technologies will be pivotal in predicting buying patterns and identifying high-conversion potential leads.
Seamless CRM Integration: The integration with CRM systems will become more streamlined, offering real-time insights and enabling personalized marketing strategies.
Advanced Segmentation and Targeting Tools: Platforms will likely offer sophisticated tools for segmentation and targeting, allowing businesses to focus on the most relevant prospects.
Interactive Sales Processes: The adoption of virtual and augmented reality for product demonstrations could make the sales process more interactive and engaging.
Blockchain Technology: Blockchain might be used for enhancing data security and transaction transparency.
Sustainability Focus: With the growing emphasis on sustainability, platforms could prioritize leads that align with eco-friendly practices, aiding companies in making responsible business connections.
These advancements are poised to revolutionize the way companies in the chemical industry identify and engage with potential clients, enhancing efficiency, personalization, and security in the lead generation process.
Harnessing the Power of a Chemical B2B Lead Generation Platform for Business Growth
A chemical B2B lead generation platform is pivotal for business growth in the industry. Such platforms, with their advanced lead generation strategies, enable companies to significantly expand their market reach. By employing optimized lead forms, targeted campaigns, and effective online marketing, businesses can attract and convert high-quality leads. It’s important to understand the nature and importance of leads in B2B contexts, as they represent potential clients interested in your products or services. Implementing a robust lead generation process not only drives traffic but also converts visitors into valuable leads. In today’s digital landscape, focusing on the quality of leads rather than quantity is crucial. Embracing a specialized B2B lead generation platform can lead to substantial growth and success for your chemical business.
Chemical safety regulations have undergone significant evolution, particularly over the last few decades. This evolution has been largely driven by the growing awareness of the potential hazards posed by chemicals to both human health and the environment. The REACH regulations, instituted by the European Union in 2007, represent a landmark development in this field. REACH stands for Registration, Evaluation, Authorisation, and Restriction of Chemicals. The primary goal of REACH is to ensure a high level of protection for human health and the environment from the risks posed by chemicals. It is also aimed at enhancing innovation and competitiveness within the chemical industry.
In-depth Analysis of REACH Regulations
The REACH regulation imposes comprehensive obligations on companies to manage the risks associated with the chemicals they produce and market in the EU. This includes a mandatory registration for all chemicals manufactured or imported in quantities exceeding one ton per year. The registration process involves a detailed evaluation of the substance, including its properties, uses, and potential hazards. Particularly hazardous substances are subject to additional scrutiny, which may include a requirement for authorization before they can be used. The regulation also empowers authorities to restrict the use of certain chemicals that are deemed too risky.
Case Studies
Company A’s Compliance Journey: This section could elaborate on how Company A, a mid-sized paint manufacturer, adapted its operations to comply with REACH regulations. Initially facing challenges with the extensive data requirements for registration, Company A invested in a comprehensive chemical management system. This system not only streamlined the compliance process but also improved their overall safety protocols and environmental footprint.
Impact of Non-Compliance: In contrast, another case could focus on a textile company that faced significant penalties due to non-compliance with REACH. This company, unaware of the full extent of its obligations under REACH, failed to register a key dye used in its products. The resultant legal actions led to hefty fines and a temporary shutdown of its operations, underscoring the importance of thorough compliance.
Detailed Discussion on Each SVHC
The classification of Substances of Very High Concern (SVHCs) is a cornerstone of the REACH regulations. SVHCs are substances that have properties that might cause cancer, mutate DNA, or impair fertility. They also include substances that persist in the environment and accumulate in living organisms, posing long-term risks to the health of humans and wildlife. For example, a detailed discussion on a specific SVHC, like Bisphenol A (commonly used in plastics), could include its widespread use, the health risks associated with its exposure, and the industry’s response to finding safer alternatives.
Compliance Strategies
Implementing compliance strategies for REACH regulations can be complex but crucial for businesses. This section could provide a step-by-step guide on achieving compliance. For instance:
Inventory and Data Collection: Companies must start by taking inventory of all chemicals used or produced in their operations and gather comprehensive data on these substances.
Risk Assessment and Management: Assessing the risks associated with each substance and developing management plans to mitigate these risks is essential. This could include substituting hazardous substances with safer alternatives.
Documentation and Communication: Maintaining detailed documentation for compliance and communicating safety information along the supply chain ensures transparency and regulatory compliance.
Global Perspective on Chemical Safety
The EU’s REACH regulations have set a high standard for chemical safety, influencing policies worldwide. Countries like Canada, South Korea, and Japan have adopted similar approaches, emphasizing the need for more rigorous chemical management. For instance, South Korea’s Act on the Registration and Evaluation of Chemicals (K-REACH) mirrors many aspects of the EU’s REACH, focusing on the registration and evaluation of chemicals to ensure safety and environmental protection. This section can elaborate on these international parallels, offering a global view of chemical management strategies.
Future Trends in Chemical Safety
The future of chemical safety is likely to see tighter regulations and a shift towards green chemistry. Innovations in biodegradable materials and non-toxic alternatives are gaining momentum. Technological advancements such as AI and big data analytics are expected to play a significant role in chemical assessments, providing more accurate risk analyses and enabling predictive modeling for chemical interactions. This section can discuss these trends, offering insights into how the field of chemical safety might evolve.
Interactive Elements
REACH Regulation Quiz: To test readers’ understanding of REACH, the blog includes an interactive quiz covering key aspects like SVHC identification, compliance requirements, and safety measures. The quiz offers immediate feedback, helping readers gauge their knowledge and learn from any misconceptions.
Infographic on Chemical Registration Process: A visually appealing infographic simplifies the complex process of chemical registration under REACH. It breaks down the steps from data collection to risk assessment and submission, providing a clear and concise overview suitable for both experts and novices.
Interactive Case Study Analysis: The blog features a virtual case study of a company navigating REACH compliance. Readers can interact with different scenarios, making decisions on compliance strategies and seeing the potential outcomes. This element not only educates but also immerses the reader in the practicalities of REACH compliance.
REACH Compliance Checklist Tool: An interactive checklist tool assists companies in self-assessing their compliance with REACH regulations. Users can input specific details about their operations and receive a customized checklist of necessary actions and considerations.
FAQ Section
An FAQ section can address common queries about REACH, providing clear, concise answers. Questions could range from basic ones like “What is REACH?” to more specific queries like “How does REACH impact small and medium-sized enterprises?” and “What are the steps a company should take if its product contains an SVHC?”
What is REACH? REACH is a regulation of the European Union, adopted to improve the protection of human health and the environment from the risks posed by chemicals. It stands for Registration, Evaluation, Authorisation, and Restriction of Chemicals.
Who is affected by REACH? REACH affects all companies that manufacture, import, or use chemicals in their business processes within the European Union. This includes not just chemical producers but also companies in various industries like electronics, automotive, textiles, and consumer goods.
What are Substances of Very High Concern (SVHCs)? SVHCs are chemicals that have potentially serious impacts on human health or the environment. They include substances that are carcinogenic, mutagenic, toxic to reproduction, or persistent and bioaccumulative.
What are the obligations of companies under REACH? Companies must identify and manage the risks linked to the substances they manufacture and market in the EU. They must demonstrate how the substance can be safely used and communicate risk management measures to users. If a substance is particularly hazardous, companies must also submit a plan for its substitution.
How does a company register a chemical under REACH? Companies need to gather data about the chemical’s properties, uses, and potential risks. This information is submitted to the European Chemicals Agency (ECHA) through a registration dossier. The registration process involves collaboration with other companies who are registering the same substance.
What happens if a company does not comply with REACH? Non-compliance with REACH can result in substantial fines, legal action, and reputational damage. Authorities in EU member states are responsible for enforcing REACH, and penalties vary by country.
How does REACH impact small and medium-sized enterprises (SMEs)? SMEs are subject to the same REACH regulations as larger companies. However, the regulation recognizes the unique challenges faced by SMEs and provides some support, such as reduced fees for registration and access to guidance materials.
Can non-EU companies be REACH-compliant? Non-EU companies cannot register substances themselves under REACH but they can appoint an EU-based ‘Only Representative’ to fulfill their obligations under the regulation.
What are the steps a company should take if its product contains an SVHC? If a product contains an SVHC in a concentration above 0.1% weight by weight, companies must inform their customers and consumers upon request. They also need to notify ECHA if the total amount of the SVHC exceeds one tonne per year.
Are there any tools or resources to help companies comply with REACH? Yes, there are various tools and resources available. ECHA provides extensive guidance documents, IT tools for submitting registration dossiers, and databases for information on chemical substances. Additionally, many industry associations and consultancies offer support and advice on REACH compliance.
Conclusion
Conclude by emphasizing the crucial role of REACH regulations in promoting safer chemical practices and protecting environmental and human health. Highlight the ongoing need for vigilance, adaptation, and proactive engagement from all stakeholders – including industry, regulators, and the public – in the pursuit of a safer, more sustainable future.
Sodium Citrate, often referred to as Trisodium Citrate when in its common form, is a versatile substance known by the food additive code E331. This compound plays a significant role in various industries, primarily the food sector, due to its unique properties and applications. Understanding the chemistry and function of Sodium Citrate not only provides insight into its widespread use but also underscores its importance in everyday products.
At its core, Sodium Citrate is a salt derived from citric acid, a natural acid found in citrus fruits. This relationship with citric acid is pivotal as it gives Sodium Citrate its ability to modify acidity in food products. The chemical formula for Sodium Citrate, Na3C6H5O7, reveals its composition, consisting of three sodium ions and the citrate ion. It is this specific molecular structure that endows Sodium Citrate with its characteristic properties.
When we delve into the distinction between Sodium Citrate and Trisodium Citrate, it’s crucial to note that these terms are often used interchangeably, but they can refer to slightly different forms of the same compound. Sodium Citrate can exist in several states – monosodium, disodium, and trisodium, with Trisodium Citrate being the most common. This form is particularly notable for its ability to act as a buffering agent, maintaining stability in pH and enhancing the texture and flavor of food products. Trisodium Citrate, in its purest form, appears as a white, crystalline powder with a salty, slightly tart flavor.
The difference in these forms comes down to the number of sodium ions present. Monosodium Citrate has one, Disodium Citrate has two, and Trisodium Citrate, as the name suggests, contains three. Each variation has its specific uses depending on the required pH adjustment or desired effect in the product. However, in most practical applications, especially in food and beverage processing, Trisodium Citrate is the preferred choice. Its efficacy in controlling acidity, preserving food, and enhancing flavors makes it a valuable ingredient in a wide array of products, from soft drinks and dairy products to pharmaceuticals.
To better understand the differences between Monosodium Citrate, Disodium Citrate, and Trisodium Citrate, let’s look at a detailed table that breaks down their characteristics and applications:
Form
Sodium Ions
pH Adjustment
Common Uses
Applications
Monosodium Citrate
1
Mild
Buffering in mild acidic foods
Specialized food applications
Disodium Citrate
2
Moderate
Buffering and flavoring in moderately acidic foods
Certain food and beverage items
Trisodium Citrate
3
Strong
Acidity control, preservation, flavor enhancement in a wide range of products
Broad range including soft drinks, dairy products, and pharmaceuticals
As we can see from the table:
Monosodium Citrate contains one sodium ion and is typically used for mild pH adjustments. Its applications are more specialized and less common compared to its counterparts.
Disodium Citrate, with two sodium ions, offers moderate pH adjustment capabilities. It finds its use in specific food and beverage items where a balance between acidity and flavor is desired.
Trisodium Citrate, the most commonly used form, contains three sodium ions. It is highly effective in controlling acidity, preserving foods, and enhancing flavors. This makes it a valuable ingredient in a diverse array of products, including popular items like soft drinks and dairy products, as well as in the pharmaceutical industry for various applications.
Each form of Sodium Citrate plays a unique role in food science and technology, with Trisodium Citrate being the most versatile and widely used due to its strong pH adjustment capacity and beneficial effects in a broad range of products.
E331 in Dietary Contexts
Expanding on the role of E331 in dietary contexts, its compatibility with various dietary practices such as Halal, vegan, and vegetarian diets becomes a focal point. These considerations are especially pertinent given the growing global awareness and adoption of specific dietary lifestyles for health, ethical, or religious reasons.
Focusing on E331 and Halal dietary laws, it’s essential to recognize that the Halal status of a food additive hinges on its ingredients and the processing methods used. E331, or Sodium Citrate, is predominantly derived from plant sources or synthesized through chemical processes. This origin typically aligns with the Halal dietary guidelines, which prohibit the use of any ingredient derived from non-Halal sources, particularly certain animals and alcohol. For a product containing E331 to be deemed Halal, the entire supply chain, from raw material sourcing to the final processing, must comply with Halal standards. This comprehensive approach ensures that the final product is permissible for consumption by individuals following a Halal diet.
Turning to the vegan considerations for E331, the primary question revolves around whether any part of the product’s lifecycle involves animal derivatives. Given that E331 is generally synthesized from citric acid sourced from citrus fruits, it is inherently animal-free, making it suitable for a vegan diet. This diet strictly avoids all forms of animal exploitation and cruelty, encompassing not just food but also other products. However, for strict adherence, it is advisable for vegans to seek products that are certified or have assurances from manufacturers about their vegan compliance, as some manufacturing processes might introduce cross-contamination or use animal-derived processing aids.
Similarly, the relevance of E331 in vegetarian diets follows a comparable logic. Since vegetarianism typically excludes meat and meat products, E331’s usual plant-based or synthetic origin makes it an acceptable additive in vegetarian foods. It’s a common ingredient in many processed foods that are labeled vegetarian, serving various functional roles from flavor enhancement to preservation. However, vegetarians, much like vegans, should be mindful of the broader context of the food products they consume, including the possibility of hidden animal-derived ingredients in the broader manufacturing process.
Thus, E331’s suitability across various dietary preferences highlights its versatility as a food additive. Its alignment with Halal, vegan, and vegetarian principles makes it a widely acceptable ingredient in diverse food products. However, the responsibility for ensuring compliance with these dietary standards lies not only with the manufacturers but also with the consumers, who must remain informed about the products they choose to consume.
Chemical and Nutritional Aspects
Delving deeper into the chemical and nutritional aspects of E331, also known as Sodium Citrate, it becomes evident how this compound plays a crucial role in the food industry. E331 is a salt derived from citric acid and is valued for its ability to modify the acidity in food and beverage products. This modification is essential for both the taste and preservation of many items we consume daily.
When comparing E331 with E330, which is citric acid, the differences in their applications and effects come to light. While both originate from citric acid, E331, being a salt form, has a less pronounced sour taste and is more effective in regulating pH levels without altering the intrinsic flavor of the food. Citric acid (E330), on the other hand, is more commonly used for its sharp, tangy flavor profile and is a natural preservative in its own right. The choice between E331 and E330 in food processing depends largely on the desired outcome in terms of flavor and acidity balance.
E331’s role as an acidity regulator cannot be overstated. It helps maintain a stable pH in food and drinks, which is vital for controlling the growth of microbes, thereby enhancing the product’s shelf life and safety. This stability is crucial in products like sodas, jams, and dairy items, where a specific pH range is necessary for the desired taste and texture.
In addition to its role in pH control, E331 also functions as a preservative and emulsifier. As a preservative, it helps prevent spoilage and extends the shelf life of products by inhibiting the growth of bacteria and mold. As an emulsifier, E331 helps in blending ingredients that normally do not mix well, like oil and water, ensuring a consistent texture in products such as ice creams and cheeses.
Regarding its nutritional impact and side effects, E331 is generally recognized as safe when consumed within the recommended limits. However, excessive consumption can lead to certain side effects like gastrointestinal upset due to its alkalizing properties. It’s important to note that while E331 is used in food processing for its functional benefits, it does not contribute significantly to the nutritional value of the food. Like many food additives, the key lies in moderation to avoid any potential adverse effects while still benefiting from its functional properties in food enhancement and preservation.
Safety and Health Concerns
Shifting focus to the safety and health concerns associated with E331, an area that garners considerable attention, it’s vital to dissect the reality behind common apprehensions. These concerns range from general side effects to more serious allegations, such as potential cancer risks associated with its consumption.
Discussing the side effects of E331, it’s essential to note that while it’s generally recognized as safe for consumption by various food safety authorities, there can be instances of adverse reactions. Overconsumption of E331, like with many additives, might lead to digestive issues such as bloating or discomfort. This is often due to its alkalizing properties, which can affect the natural acidity of the stomach. However, these side effects are typically associated with intake levels far exceeding those normally encountered in a standard diet.
The analysis of potential cancer risks associated with E331 is a topic that has been the subject of extensive research. To date, scientific evidence does not conclusively link E331 to cancer development. Studies investigating the long-term effects of consuming food additives like E331 often focus on their metabolic and physiological impacts. The results have predominantly shown that when consumed within the limits set by food safety authorities, E331 does not pose a significant cancer risk.
Investigating the claim of E331 causing cancer involves looking into the methodologies and findings of various scientific studies. This scrutiny is necessary to understand the context in which such claims are made. Most research indicates that E331, used within recommended guidelines, does not contribute to cancer risk. However, as with any additive, ongoing research and monitoring are essential to ensure its continued safety in food products. The key takeaway is the importance of consuming such additives within the parameters of a balanced diet, underscoring the principle that moderation is critical in all dietary aspects.
Consumer Information
In the context of consumer awareness, the presence of E331 in everyday foods and its identification on labels are topics that merit attention. This awareness is particularly crucial in an era where consumers are increasingly conscious about the ingredients in their food.
E331, commonly found in a variety of food products, is a staple in many household items. Its application extends to soft drinks, where it serves as an acidity regulator, enhancing the tangy taste while stabilizing the pH. It’s also prevalent in gelatin desserts, contributing to the tart flavor and acting as a preservative. In jams and dairy products, E331 plays a dual role, both as a flavor enhancer and as a stabilizer, ensuring consistency and longevity. Baked goods and candies are other common territories for E331, where it helps in maintaining texture and preventing spoilage.
When it comes to identifying E331 on food labels, it is typically listed as ‘Sodium Citrate’ or directly by its E number, ‘E331’. This information is usually found in the ingredient list, and sometimes, particularly in products where sodium content is notable, it may be mentioned in the nutrition facts panel under ‘sodium’. This transparency in labeling is vital for consumers who are mindful of their intake of additives or have specific dietary restrictions.
The public perception of E331 is an area rife with misconceptions. A common belief is that being a ‘chemical additive’, it is inherently harmful. This viewpoint often overlooks the fact that E331, like many food additives, is rigorously tested and regulated for safety. The general consensus among food safety authorities is that E331 is safe for consumption when used within the prescribed limits. It’s essential for consumers to understand that the term ‘chemical’ does not automatically imply danger; in fact, chemicals in various forms are integral to all food products, whether they are processed or natural.
Educating the public about these aspects of E331 can help dispel myths and foster a more informed understanding of food additives. The key lies in balancing the functional necessity of these substances in food production with a realistic appraisal of their safety and effects. This approach allows consumers to make more informed choices about their diet and health.
Comparative Analysis with Other Additives
Continuing from the consumer-focused discussion on E331, it’s insightful to delve into a comparative analysis with other additives. This comparison sheds light on the unique properties and uses of E331, especially when juxtaposed with similar substances like E330 (Citric Acid), E333 (Calcium Citrate), E450 (Diphosphates), and E339 (Sodium Phosphates).
Starting with E331 versus E330, the primary distinction lies in their chemical nature and resultant uses. E330, known as Citric Acid, is an organic acid naturally found in citrus fruits. It’s renowned for its sharp, sour taste and is widely used as a flavor enhancer and preservative in foods and beverages. E331, on the other hand, is a citrate salt and is less acidic. Its main application is as an acidity regulator, providing a balance in pH without significantly altering the flavor profile of the product. While E330 imparts a distinct tartness, E331 is more subtle, focusing on maintaining the desired consistency and stability of the food item.
Comparing E331 with E333, or Calcium Citrate, we find a different set of functionalities. E333, the calcium salt of citric acid, is primarily used as a firming agent and sometimes as a preservative. It’s often found in canned fruits and vegetables where maintaining texture is key. E331, being a sodium salt, serves a different purpose, mainly in controlling acidity and acting as a buffer in various processed foods.
The relationship between E331 and E450, which are diphosphates, reveals another layer of food additive dynamics. Diphosphates, used as leavening agents and stabilizers, have a distinct role in baking and processed meat products. E331’s role here is not directly comparable, as it focuses more on acidity regulation and emulsification, illustrating the diverse roles additives play in food chemistry.
Lastly, when E331 is compared to E339, or Sodium Phosphates, we observe a divergence in primary functions. E339 is often used as a buffer and a sequestrant, helping to maintain color and moisture in processed meats and bakery products. E331, while also acting as a buffer, leans more towards regulating acidity and enhancing texture in a broader range of products, from dairy to confections.
This comparative analysis underscores the specificity and versatility of food additives. Each additive, including E331, has been developed to serve particular roles in food production, ensuring quality, safety, and palatability. Understanding these nuances not only enlightens the chemical blog readers but also enriches the broader discourse on food technology and safety.
We all feel that the world of work is changing, right? Driven by globalization, digitalization, and global crisis, the work-from-anywhere concept has become one of the working world’s answers to these rapid challenges. Work wherever you can be productive – under palm trees, by the sea or on a lonely mountain, as long as there is a solid internet connection.
A Brief History of Remote Work.
If you look back in time, work models such as working from home or location-independent working have been in existence for about 50 years.
It began with the introduction of the first work from home jobs in the 1970s, prompted by soaring gasoline prices as a result of the 1973 OPEC oil embargo. Consequently, commuting became more expensive. These measures allowed people to work from their homes, coworking spaces, coffee shops and other locations for the first time…
Ultimately, thanks to the advent of computers, laptops and lastly the internet in the 1990s, employees’ geographic flexibility increased significantly.
Working from Home vs. Working from Anywhere.
There are various types of geographic flexibility that are categorized as “remote work” the option to work from any remote location away from company premises. Let’s first clarify what constitutes remote work before we delve into the difference between working from home and working from anywhere.
In distinction to working from home, working from anywhere means working from any other appropriate location to perform your job, except from your home address.
Just imagine this: Instead of the rainy weather in Germany, you wake up in the morning and smell the fresh sea air. While you enjoy the first coffee in the morning sun with bare feet on sand your laptop is slowly booting up.
Sounds too good to be true? Then read on attentively now…
Working From Anywhere Increases Your Productivity by 4.4 Percent.*
According to Nicholas Bloom, employees that are having the opportunity to work remotely, show an increase in work output of 4.4 percent when in the work from anywhere program compared to the baseline of when the employee was in the work from home program.
What are the working from anywhere benefits for employees?
Possibility to travel to other countries, visit family / friends
If an employee can work fully remote from another region / country, living in the preferred geographical location will also result in greater satisfaction or may also retain top international talent, that may want to move back to their home country for more proximity to their family / friend
Broaden horizon= learn a new language, getting to know new cultures
Different environment can also spark creativity and result in new ideas
What are the working from home benefits for employees?
Increase of freedom / flexibility regarding reconciling work and family/private life – e.g. emergency childcare is guaranteed, open the door for technicians…
Saving time (and money) that would otherwise be spent on a long commute allows employees to have better work-life balance and adds hours back into their days.
More focus and less distractions – depends of course on the home situation
Increases wellbeing = Allows workers to control ambient workspace elements such as clothing, layout, music
Lower rental costs when a high-priced apartment is not needed in the city.
What are the benefits for employers?
Attract talent: Working from home is a standard demanded by talents, Working from anywher is a great benefit, which especially international talents are seeking for
Saves money: Fewer sick days, saving on rent and equipment, if a free desk policy is implemented
By implementing such a model, companies also have a number of other advantages, such as saving on rent for office space, electricity and infrastructure costs, or the saved workspace can be converted into collaborative space.
It quickly becomes clear that this concept is beneficial for both employees and employers. Doesn’t it?
The Other Side of the Coin.
As with everything, there are some challenges you need to consider.
Depending on the duration of working from anywhere, physical distance can have an impact on your company culture. Face-to-face contact is limited, spontaneous conversations decrease, and you might feel socially and professionally isolated, disconnected from colleagues and the company itself. However, appropriate collaboration tools and a meeting structure designed for this purpose can remedy the situation.
But daily meetings and workshops also face hybrid challenges.
time differences can reduce the daily joint working and coordination time.
technical equipment of laptops, cell phones, headsets, cameras etc. must be available
a stable and strong internet connection forms the basis of course
without physical presence it is more difficult to assess how the other person is doing, what he feels and thinks. Misunderstandings can therefore arise quickly
Accordingly, clear guidelines are needed for successful hybrid work (e.g. camera on / off, etc.).
The CheMondis Approach.
As a startup, we certainly would like to embrace this flexibility in terms of work location. At the same time, we believe that our success is largely determined by our culture and a shared sense of community that requires personal and physical interaction.
Therefore, the following “CheMondis way of working” is the current approach that works best for us.
There is no daily obligation to work from the office
Some teams define autonomously a minimum of 2 days per week to work together from the office
Besides that, everyone has the opportunity to work from anywhere for a defined amount of days per year – as we’re located in Germany, this is currently limited to Europe
Due to this way of working, all our meetings are held hybrid – for everyone in the office in presence and for everyone else remotely. No question that we had to get used to it.
We have been practicing this way of working for about six months now and with great success. Everyone enjoys the time together in the office but equally the flexibility to decide working from another location from time to time. Especially our “work from anywhere” offer has been used extensively – in the last 6 months 12 employees have been working from other locations than their homes or the office. In total we have worked 81 days from 7 countries.
It was precisely during this time, after a long home office period, that we were able to achieve great entrepreneurial success. Flexibility and self-determination due to the working from anywhere model have been a huge boost to our performance.
Ready for the Beach?
The prerequisites for successful remote work must, of course, go hand in hand with organizational procedures, corporate and management culture, appropriate equipment and, obviously, a role that allows working online. Would you offer the remote work option to individual employees only or to nobody at all in this case? There are parameters must be considered before implementing such a model. Also, a high administrative effort and costs for implementation and for processing must be considered and well planned – policies, legal prerequisites, defined processes regarding taxation and social security, as well as visa-support are required depending on the scope of flexibility offered.
You probably guessed it already, there is no one fits all solution. Every company will have to determine which working model fits it best – physical presence in the office, working from home, working from anywhere or as a first iteration from all over your country, etc. Of course, under the legal framework that your country provides for it.
If you take another look at the advantages for companies and employees and consider the ongoing digitization and globalization, it quickly becomes clear where the journey is heading. We are heading straight for a future in which the option for remote work will no longer be just a benefit, but a standard. Many international companies, such as Google or SAP, are pioneers in this field and have already successfully implemented such extremely flexible and innovative solutions.
Thank you for taking the time to read the CheMondis Blog.
SOURCES:
Prithwiraj, R., Cirrus Foroughi, C., Larson, B. (2020). Work-From-Anywhere: The Productivity Effects of Geographic Flexibility. Harvard Business School.
WeWork (2020). The benefits of remote work – for both employees and managers.
For the second time this year, we are hosting our CheMondis Digital Summit. The event is planned for one day and takes place online on November 4th, 2021. Therefore, our preparations are currently running on full speed.
But what does it take to organize such an online event? We share our best practices, tips and tricks around the event and project planning. If you want to have a look at the lineup or buy a ticket before reading this article, you can do that by clicking the button below:
When it comes to the organization of such a big event, we generally recommend going through a step-by-step planning. Of course, there are different approaches and best practices. However, this is how it works best for us:
1. Defining the event goals
2. Creation of the concept
3. Organization of the event
4. The Event Day
5. Taking care of the follow-up tasks
Where lies our focus in each of the individual steps? When do we start with the individual phases and what are our biggest learnings so far? Sit back and read through it: we summarized it for you in the following sections.
Defining the Event Goals.
Usually, this is the very first step for us when starting with the preparations. No matter if it’s the 2nd or 3rd time we are hosting an event. As we re-evaluate our business goals every quarter and flexibly adapt them to the market, it is not unusual that we have 3 different goals for the same event – even if we host it several times.
When it comes to defining goals, there are different approaches. One common method is the SMART-goals method:
S = specific (goals must be clearly defined)
M = measurable
A = appropriate (reasonable for what is to be achieved)
R = realistic (the achievement of the goal must be possible)
T = terminable (deadline must be achievable)
We like to create our goals accordingly to this concept. Within CheMondis, we pay particular attention to making goals measurable by means of KPIs (Key Performance Indicators) and making results comparable. Thus, we would like to go into this point in a bit more detail.
Event KPIs are set up at the very start of the planning process. To do this, we usually look at the achievement of goals from the previous event and our internal KPIs. It is important to ensure that the goals are ambitious but also realistic. This balance must be maintained. In addition, it should always be possible to keep track of everything. Setting 3-5 goals is recommended.
Creation of the Concept.
Once the goals are defined, we start the creation of the concept, which is significantly influenced by our goals. First, of course, the question of the budget should be clarified, because many points of the concept will depend on it.
Now it’s a matter of going into the exact planning of the conditions – in our case, we start with the leading topic. We usually base this on current topics, occasions, events that are interesting for our target group. For example, in the past we had a paints & coatings edition, a digitization special and currently we are planning a sustainability & innovation edition. As soon as the leading topic is set, we go into more detail.
Starting from the leading topic, we define sub-topics for the individual streams. In doing so, we try to find possible subtopics. This will be particularly important later when researching suitable speakers.
Conceptually, it also goes to the planning of the formats. Which event formats are best suited to the content? Workshops? Roundtables? Talks? How long should the individual sessions be? What is a good number of slots?
Since in our case it is an online event, our location is an online event tool. What requirements do we have for the tool and which provider is best suited for this? Where do we get the best price-performance ratio?
As soon as we have found answers to those questions and have set the framework of the event, we can continue with the detailed planning of the content.
Organization of the Event.
A full day event with 3 streams and over 20 talks from external speakers requires careful pre-planning. Of course, it’s not just one person doing it alone. For our summit preparations, we have put together an interdisciplinary team. It consists of marketing experts, designers, and business development managers.
About 3 months before the summit, we start with weekly meetings, which we use to work out certain questions together. Of course, we also have a project plan in which all tasks and milestones are scheduled.
During the organization phase, it is time to get down to the details! The concept on paper is put into action. Potential speakers are identified and contacted, slots coordinated, marketing materials designed, the event page built, attendees invited…
Our internal deadline to be ready with everything is about 2 weeks before the event to have an emergency buffer for unwanted surprises.
The Event Day.
And then the time has come. The day of the event. The day before, we calmly prepare the technology and test everything to make sure that everything works properly. On the event day itself, we meet in the office about 1.5 hours before the official start of the first session. Then we have breakfast with everyone from the task force, but also moderators and CheMondis’ speakers. Afterwards there will be a final briefing for the day and a briefing on the location. Everyone grabs a last coffee and then it’s time to go.
What we have learned in the past that it is necessarily important to have two firefighters who take care of the so-called emergencies – on the phone and by mail. Someone has misplaced his event password, can’t find his way around the event page, needs a special invoice and so on. If something goes wrong, it is usually not a problem if the participants are helped immediately. We want everyone to feel that they are in good hands and that we live up to our own quality standards. Therefore, it is very important to us to provide a good service here.
After the first 3 hours is the official lunch break on all streams and we have a little time to breathe. We order pizzas for the whole team and briefly discuss how things are going until it’s time to move on.
At the end of the day, we all come together for a short wrap up. How many participants were there? What specials were there? How was the feedback? Such an event always brings us forward as a team.
Afterwards we usuqlly have a delicious dinner in a great restaurant. We will take care of the office clean up and the follow up tasks another day…
Taking Care of the Follow up Tasks.
For us, after the Summit is as busy as before the Summit. The day after the event there is a lot to do, from thanking the speakers, writing invoices, taking advertisements offline and of course checking how far the goals we set at the beginning have been achieved.
During the week following the event, when everything is still fresh in our minds, we also have a feedback session with all participants, where we analyze feedback, note improvements, and collect ideas for a next event.
Now it is Up to You.
In this sense, we are looking forward to meet you on November 4th in one of our session! The registrations are still open.
For already registered CheMondis marketplace customers the registration for the event is free of charge. For all others: in the first ticket phase we offer early bird tickets for 49 EUR with a “buy one get two” special. *only available until end of October 2021.
Over the past weeks, you probably realized that highways are not so crowded anymore, public transports are punctual and spacious, you get less calls during business hours and business in general seems to slow down. Most people spend time outside, wandering through shopping streets or picnicking in parks. These all are symptoms of the summer break, or, as some newspapers call it: “the summer slump”.
It is a phenomenon that has been known for centuries. More recently, its duration has been narrowed down from the beginning of July to the beginning of September.
Looking at the United States of America, the US national holiday on July 4th traditionally marks the start of the summer season for Americans. This only ends on the first Monday of September, Labor Day, which is also the last day of the summer vacation for the American students.
In Europe, almost all countries also have their school holidays between July and August. Those holidays obviously have an effect on parent’s time off during that period. Europe’s diverse cultural landscape also accounts for numerous public holidays across the continent. Turkey even shuts down most of its business for a whole week in July during Bayram.
Vacationing and public holidays lead the major expenditure streams of the general population into different directions. Revenue in tourism, leisure, and relaxation along with the whole network of supply chain partners gets intensely fueled during this time.
As the ratio of fully vaccinated people is increasing over the past weeks, we are seeing the return of this cyclic pattern. In their latest blog post, Hubspot analyzed the web traffic of 103,000 businesses from April to July and split it up by region and industry sectors (see figure 1a und 1b). You can see a noticeable increase in hospitality as all other sectors experience a slight decline.
Figure 1a: Web traffic of 103,000 businesses from April to July. Source: Hubspot (2021).
Figure 1b: Web traffic of 103,000 businesses from April to July. Source: Hubspot (2021).
Besides web traffic, companies operating in B2B related industries, especially in manufacturing, usually observe a drop in their sales. One can see a first indicator that the cycle also continues this year. Looking at weekly transactional traffic that is generated on CheMondis, the pressure has been taken off the markets finally – delayed however but in accordance with 2020 (see figure 2).
Figure 2: Weekly transactional traffic on CheMondis.
If less people are trading, the overall volume of traded shares is relatively lower. Lower trade volumes result in less market volatility and the stock market appears slack.
Statistically, this can be proven by looking at the relative trade volumes per month averaged over the S&P500 since 1950. Trade volumes see a low point in July. The German stock exchange even issued a “Seasonal DAX” that follows the DAX, but ignores the months of August and September.
And with this strategy, an investor would have scored 72,000 points and would have achieved a performance of an astonishing 13.4% pa (instead of “only” 8.2% pa for the real DAX).
Figure 3a: Monthly relative trade volumes of S&P500 (averaged over 1950-2020). Source: Stockstreet (2021).
Figure 3b: Seasonal DAX that values for August and September. Source: Stockstreet (2021).
Since the stock market doesn’t necessarily reflect the real world, we should evaluate data that shows the productivity and economic output. When looking at the production volume index published by Eurostat, the statistical office of the European Union, you will clearly see that August is usually the month with the lowest production volume. September, on the other hand, usually sees the highest rate change.
Figure 4: Production volume index from 2010 till 2021. Source: Eurostat.
The overall productivity of employees also decreases by 20 percent as a study by Captivate Office Pulse finds. Research from the Harvard Business School explains this drop in productivity with the better weather conditions. Dull weather encourages people to be more productive since they aren’t getting cognitively distracted.
However, it is hard to get anything done when decision-makers are not reachable. A lot of smaller companies even completely close their production lines for a few weeks, most chemical manufacturers in Italy even completely close their factory gates in August.
When everyone returns to normal office hours, things will start to pick up again. As the Eurostat and CheMondis marketplace data suggests, we can assume a significant increase in traffic from mid-September onwards.
A great way to be aware of the latest trends in the market is the CheMondis Market Insights.
We aggregate and analyze internal and external data on e.g. search volumes, product availabilities and prices, to compute our CheMondis Index, a relative index from 0 to 100, based on our proprietary and validated algorithms.
It is a sub summation of a wide variety of market indicators representing the current market situation for selected key chemicals.
It is easy to understand and will help you to obtain better negotiation results and to make smarter purchasing decisions. The CheMondis Index is based on real-time market data and therefore is superior in quality and accuracy compared to traditional market research.
Even though the logistic situation remains tensed, as shipping rates are still at an all-time high, the raw materials shortage has been slightly balanced-out and a lot of products are back in stock. Make sure to check CheMondis regularly to get the best quotes for your requests.
We wish all companies a good start to business after the summer break!
Buyers and Suppliers on CheMondis can now easily compare details of their outgoing and incoming requests. This might help both parties in a negotiation to keep the overview of all company’s activities on CheMondis and to find the best deal.
No More Manual Comparison by Opening Emails and Creating Excel Sheets.
Looking from the demand perspective you are always looking to find the best offer, or you want to check the status of different requests.
Looking from the supply perspective you might want to get a simple overview of the different status for a specific product or from a certain buyer. Again, you can select the requests of interest to you and you receive a simple table allowing you to compare them and to be right up to speed again.
The comparison table is kept simple to allow you to give all your attention to what matters most to you.
It allows you to easily compare the following information:
Request type & status
Product name
Buyer / supplier name
Volume
Packaging
Delivery conditions
Offer validity
Price
Payment terms
To start any comparison, please login on chemondis.com and navigate to “Requests” or click the Button below:
Select the requests and negotiations you would like to compare by ticking the boxes that appear when moving the mouse above a certain row.
Click “Compare selected” to open the comparison overview. For a detailed view, you need to scroll down a bit. At the bottom of the table, you will find a button to open any request to continue negotiating. Or, by clicking “add request” you can add a request to the table, by clicking “x” you can remove them.
Now It Is Up to You.
Try the feature now to compare any request you want. If you have any comments, questions, or wishes regarding this feature, please contact us: hello@chemondis.com
How many new requests did I receive? How many new offers do I have? Is there an update on my order? Did I receive a new message or document? Buyers and Suppliers on CheMondis now easily find the number of unread updates.
You can’t miss the updates.
After login, you find your updates in the menu bar displayed as blue dots. The number in the dots shows the number of new developments which are still unread.
After opening a table, a blue dot in the table view will show you where any update happened. The blue dots are displayed with the Request, Agreements, and Orders tables.
How the counter and blue dot work?
The counter considers all status updates as well as all chat messages and shared documents. The status updates include new requests and new offers and confirmed orders. For each update you are assigned to, the blue dot will appear.
After opening the details page of any negotiations, the blue dot will disappear for you as a user. For your colleagues who are also assigned to certain negotiations, the blue dot will stay until those details were read by them personally. This way we can ensure that each user receives all the relevant information, even if there are multiple users for one account.
Now it is up to you.
Do you have any questions or comments about our new feature? If so, feel free to contact us using the options below. We are looking forward to your feedback!
Currently there are supply chain imbalances globally affecting all industries. For the chemical industry this means that players all over the globe are fighting for container slots to deliver raw materials against importers and exporters of high-margin products such as gaming consoles or televisions.
The pressure on supply chains is increasing and difficulties are likely to increase in the coming month. Let’s have a look at the reasons and effects on the chemical industry, focusing on the paints & coatings segment.
Where do the problems come from?
Large amounts of goods, basically everything we can imagine, ranging from sport shoes to chemical raw materials are shipped to us from Asia. Especially from China, where seven of the ten largest container ports in the world are located. Consequently, supply problems arising there permeate many supply chains worldwide.
The shipping issues in Asia began in early 2020 with the outbreak of the pandemic in China. Due to the increased demand for certain goods during the lockdown in many parts of the world and the urgent need for medical supplies and protective equipment to overcome the pandemic, many container ships made their way from China to the United States and Europe. But, with countless delays. Many workers were not allowed to work due to an Covid-19 infection or quarantine. Restrictions at the ports and distancing made the situation even more critical.
Consequently, the ports were overwhelmed and not able to catch up on the backlog. Huge container ships are parked outside the ports and cannot access the berths.
In addition, there is another circumstance which exacerbates the situation. Of course, logistics providers want to act as economic as possible and try to avoid empty runs of the containers to minimize their costs. Consequently, there are many empty containers at the ports around the world waiting to be loaded there, even though there are goods waiting to be loaded on the other side of the world. The result: an imbalance between where the containers are and where they are needed.
This is leading to an increased reluctance on both sides to commit to the shipping, especially when it is unclear whether and at what time it will be possible to return a container. It is becoming some kind of vicious cycle in which the logistics situation is becoming more and more critical to the world’s supplies.
Which other factors are affecting the broken supply chains?
There are also factors, not directly connected to logistics, impacting the current situation. Two examples would be the weather in Texas and congestion triggered by the Ever Given.
Why Texas? Texas was hit by a deep freeze in February 2021. Petrochemical plants located in the area, which produce a significant amount of the world’s plastics, had to shut down their activities to avoid accidents or permanent damage to the plants. These factories are slowly being restarted, but it will take many weeks to replenish supplies. The result is a widespread shortage of plastics. Alternative supplies that could come from Asia are stuck in the previously discussed Pacific Ocean traffic jam. This leads to many shutdowns of plants especially within the automotive industry.
Another impacting factor, which has been broadly spread via the news, is the giant Ever Given container ship that got caught in the Suez Canal – blocking the 6,000 miles passage between Asia and Europe. This situation further troubled global supply chains – schedules were thrown into disarray and congestion at European ports increased.
What specific effects can we observe?
Expected shipments of goods to the rest of the world were delayed or even failed entirely – many supply chains are broken. This impact can be seen in trade and shipping costs and this effect is expected to last over the coming weeks and months. To give a short example: shipping containers to the West Coast of the United States increased by 30 percent in February 2021, compared to 2020.
Logically, the shortage of materials also leads to increased prices. If we take a closer look at the Paints & Coatings Industry for example, we see that prices for epoxy resins, an important binder for many paints and coatings have extremely increased. In the last two months, they increased by up to 60%. Prices for polyester resins, which are often used in powder coatings, have also risen significantly – by up to 45%. Looking at solvents, we see price increases of up to 100%.
Over the last weeks and months we also noticed that the limited availability of one of the very basic ingredients for coatings, titanium white, led to a broken supply chain in many different sectors. You can thus see how individual shortages and problems impact the overall value chains, across market segments.
What market development do we expect in the coming month?
Governments worldwide are trying to accelerate the economy’s recovery with stimulus programs. This will most likely lead to a worsening of the logistics crisis as more goods will be in circulation.
The solution to the problem requires time, new investments in ports, and capacity. Therefore, probably many companies will rethink their sourcing strategies and try to reduce the risk of disruption through diversification. Already now we see intensified efforts to find local alternatives for sourcing in order to reduce shipping risks.
In summary we can say, a quick improvement of the situation is unlikely in the coming weeks.
How CheMondis helps you to overcome these issues.
CheMondis might help you to diversify you sourcing strategy and can get you in touch with new potential business partners, in your region and beyond. We are currently working with more than 1.300 suppliers from all over Europe, offering more than 45,000 products. In times where logistics resources are that scarce, it is also worth mentioning that we can help with this as well. You can book your required logistic services in cooperation with the German logistic company Alfred Talke Logistics right on our platform.
Now it is up to you.
Benefit now from the advantages of the leading marketplace for chemicals in Europe and register your company on CheMondis.
