Inventory Management for Chemical Industry - WorldOfChemicals

Inventory Management in the Chemical Industry

Category : General Chemicals
Published by : Data Research Analyst, Worldofchemicals.com

The chemical industry is a vast and diverse industry, comprising of various sectors. Within the chemical industry, there are various chemicals, raw materials and feedstocks that get stacked up in the warehouses. This unused chemical stock eat up your storage space and your investment. In the production areas of the industry, there is many old, unused and used equipment, such as forklifts, packaging logistics and materials which clutter factories. The effective ways for leveraging your excess chemical stocks and used equipment will be discussed in the further sections.

 

 

Why Excess/Surplus Stocks?

As a manufacturer of chemicals or chemical products and equipment, you normally procure your input raw material in advance, and usually, some of it remains as balance in your storeroom and equipment is not needed after its use. When the production is not planned properly, you end up with excess stock. At times, for some of your chemical products, market demand suddenly fluctuates or slows down. This results in slow-moving chemical stocks or non-moving chemical stocks.

For various reasons, such as a change in product design, change in order specifications or change in requirements of customers, some of the ordered chemical products and even already manufactured products would remain unused for a very long time as well as may never be used and eventually end up as dead stock for your production. Similarly, this could even happen if you are a supplier or a distributor and have been carrying large stocks of various chemicals and equipment in anticipation of future customer demands.

 

Importance of these Stocks

In the chemical industry, it is estimated that excess stock or surplus stock accounts to 5% - 8%, whereas slow moving or nonmoving inventory accounts to 12% - 15% of the entire stock.

Stock management demands constant focus and is an integral aspect of the success of a business. There could even be issues with the best inventory calculations done by chemical companies. Chemical companies face the common issue of inventory of surplus raw material and storing ready stock. Keeping the old stock costs you money and storage space. Chemicals companies also face the issue of old, unused and used equipment, which occupy the limited crucial space of the factory.

This is a huge concern for chemical manufacturers, distributors, wholesalers and traders. The prudence and business acumen of these industry players would make the difference in the smooth functioning of their businesses.

 

What is the Solution? 

Excess chemical stock and used equipment of a company might be of no value to it. However, they might have great value for other companies. This is what companies need to capitalize on, by leveraging their assets through trading. In the present world, there are online marketplaces, which facilitate easy trade between both parties. This ensures the best value for chemical companies when they are trying to buy or sell excess stocks and old equipment. This way chemical companies can prosper by creating space for new equipment and technology.

www.worldofchemicals.com is a leading chemical portal that offers you the way out of this problem by getting rid of your excess stock and old equipment. You can buy and sell excess stock, raw material, ready product, or used equipment. All you must do is list your product and earn money for your excess stock or surplus stock and second hand, unused or used equipment. 

You can enhance the quality of your business by managing stock activities, sales, product management, purchase activities, etc. with a single business management tool - Xobber, which is a CRM dashboard, designed to automate, analyze and stimulate your sales and enrich relationship with customers.


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