5 Common Challenges in Sourcing Specialty Chemicals

The market for specialty chemicals has been at an all-time high, emphasizing its potential for global growth and development. These chemicals, also known as performance chemicals, are used to enhance the safety, sustainability, and performance of processes and products. However, in recent times, companies have faced challenges in sourcing specialty chemicals. In this blog, we have a closer look at the 5 common challenges in sourcing specialty chemicals and how a trusted supplier like Mamta Polycoats overcomes these challenges.

Here are the 5 Common Challenges in Sourcing Specialty Chemicals

Supply Chain Issues

Specialty chemicals consist of different chemicals that themselves are characterized as specialty chemicals. For instance, Triethyl Citrate (TEC) is used as a flavouring agent and foaming stabilizer, primarily serving as a food additive. Also, it is used as an active ingredient in cosmetic & personal care products. So, a drop in the supply of chemicals or other chemicals used as raw materials can disrupt the production process.

Solution: Engage in business with trusted specialty chemical suppliers like Mamta Polycoats, who have extensive experience, quality management, and a strong logistic network. Mamta Polycoats has a proven track record of overcoming these challenges, ensuring a steady supply of high-quality specialty chemicals.

Competitive Market & Highly Regulated

The specialty market is highly competitive with globally recognized brands; this also makes the sector subject to complex regulations. Considering global data and labelling standards, specialty chemicals companies use a single source of truth in a centralized labelling system. So when the government issues new mandate procedures, companies must comply with them. Failure to comply can affect supply and, ultimately, sales.

Solution: Consider how you approach this challenge ‘Do you want to compete with top players? Or are you interested in a low-volume product aimed at a specific niche or demographic?’. Also, make use of modern solutions such as digital platforms that offer real-time data analytics and supply chain visibility to identify blind spots and improve operational productivity and compliance with regulations.

Commoditization of Specialty Chemicals

The advantages of being the first mover in the specialty industry can be short-lived. Attracted by large profits, the entry of competitors can turn products that are unique into other common products, such as commodity products. This, in turn, forces companies to cut on R&D and shift from innovation to commoditization.

Solution: Customization can help carve a market niche with products designed for specific targets.

Sustainability Pressures

Products with minimal impact on the environment are higher in demand by different sections of customers. This puts pressure on the manufacturers and pressures them to comply with complex regulations and standards.

Solution: Practice sustainability and make use of digital platforms to comply with relevant regulations.

Complex Manufacturing Supply Chain

The specialty chemicals manufacturing is different from that of other industries, this is because chemical production can run in as batch production or different kinds of chemicals process merging or ending up as either intermediate or finished goods. Due to this, inventory planning and managing quality is complicated.

Solution: An optimized supply chain can help navigate these challenges. Make use of technology to help you predict the market trends so you can make purchases, increase raw materials storage, and source top ingredients.

Looking to buy top-notch specialty chemicals for your products? Mamta Polycoats is a trusted specialty chemicals exporter, offering a wide range of products tailored specifically for your applications. To place orders or learn more about our solutions, call.