What Value Should a Chemical Distributor add?

Read time: 4 minutes

In this addition, I’m going to detail a lot more about chemical distributors and the immense value they should be adding to the supply chain. This is more tailored towards customers, but I think its still important for suppliers to understand the value added as well. After all, a distributor is the face of a manufacturers business in some cases.

There will be times when both manufacturers and customers alike will consider bypassing the ‘middleman’ and dealing directly with each other. The truth is though, just like you don’t seek out the manufacturer of your phone or t-shirts, cutting us out may not be the cost-saving strategy it seems. The value we bring impacts not only your wallet, but your entire operational efficiency…

…however, many buyers (and suppliers) driven by the prospect of potential cost savings or margin increases, attempt to bypass distributors. What they don’t realise, are the hidden complexities and risks they’re exposing themselves to.

Having a partner whose entire business is focused on getting a chemical from point A to point B, as efficiently and smoothly as possible, cannot be overlooked. Below you’ll learn how we help with:

1) Regulations
2) Importing
3) Storage
4) Purchasing
5) Problem Solving
… and one bonus ;o)

Distributors are not just middlemen; they are strategic partners, smoothing out complex regulations, logistics, and market dynamics to deliver peace of mind and competitive advantage.

1) Regulations

We all know regulations can be time consuming and laborious. But getting them wrong can be so much worse than taking the time to ensure compliance. Distributors should give you 100% clarity and assurance that regulations are handled. There should be no question marks AT ALL.

Ultimately, saving everyone from costly legal and/or safety pitfalls.

2) Importing

Getting material into different countries, juggling documentation, and making sense of incoterms can become a complex process full of hidden procedures and added costs. Distributors can take all of this on, covering all duty and landed costs.

All built into your costs.

3) Storage

Holding and managing inventory can be resource intensive. Distributors should be offering stocking options and just-in-time deliveries. Freeing up valuable resources and space for more mission-critical tasks.

4) Purchasing

Consolidating purchases through a distributor streamlines the procurement process. Saving time, reducing paperwork, and freeing up resources. They often can secure better prices through extensive networks, as well as offering multiple source security.

5) Problem Solving

Whether it’s delivery issues, overstocking, specific packaging requirements, or operational bottlenecks. Due to their wide network, distributors are reliable problem-solvers. Offering prompt assistance and unique solutions as and when needed.

Often without a charge!!

Bonus) Market Knowledge

Distributors sell both within your industry and across multiple other industries. They are in constant communication with service providers, manufacturers, end-users, CMOs, and other distributors. So, we are often great sources of information.

Which may just give you some really vital information!!

There is so much more value to be added which hasn’t even been touched on, or we’d be here all day…maybe for another newsletter.

Thanks for reading.