Custom Chemical Manufacturing Supply Chain Concerns: An Update

June 18, 2018by Jayhawk
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Supply chain security is one of the top priorities for professionally sourcing custom chemicals. Today’s fine custom chemical manufacturing landscape comprises numerous multi-step chemical synthesis processes. Building blocks and active ingredients vital to agrochemical, pharmaceutical, and other markets depend upon securely sourced raw materials and intermediates. These specialty chemicals are provided by custom chemical manufacturing vendors, whose role is paramount to the continued success of high-value blockbuster products. However, the security of the sourcing landscape itself is currently under scrutiny.

This article will explore some of the key concerns in the chemicals manufacturing supply chain in further detail:

Custom Chemicals Manufacturing Security: Key Issues

Whether a custom chemical or service is being sourced for application in the pharmaceutical, agricultural, or commercial sector, the first concern for any sourcing professional is cost. It is important to secure these products and services at the lowest price possible to maximize returns on investment and meet budgeting concerns. However, this has given rise to several security issues, including working with obscure custom chemical vendors in distant countries.

The current regulatory compliance sweep in China stands out as a recent example. The enforcement of new constitutional amendments on environmental responsibility have led to the overnight shutdown of custom manufacturers, or entire districts where a single manufacturer may be out of compliance with the latest policies. The question of price is now underlined by broader issues: availability; sustainability of supply; and mitigation of risk.

Alternatives have emerged through the ingenuity of custom chemical manufacturers that are focused on providing value through long-term partnerships. This has been enabled by a manifold of changed circumstances. An improving economic climate, and reduced energy costs – particularly in the United States – have afforded custom chemical manufacturers the opportunity to establish a reliable and secure supply chain with products and services available at competitive prices.

Fresh creativity allows for partnerships, with multiple sites or vendors affiliating to offer a full array of competencies, including: alkylation; azo chemistry; hydrogenation; halogenation; heterocyclic synthesis; Grignard chemistry; and other custom chemical manufacturing processes to produce the desired active or downstream product.

These collaborations between custom manufacturers are expected to become increasingly common in the coming years.

Custom Chemical Manufacturing Solutions from Jayhawk

JAYHAWK offers a wide range of toll- and custom-manufacturing services based on extensive process development capabilities, as well as a broad portfolio of made-to-order products. Accredited to ISO, Responsible Care® & cGMP/FDA standards, our teams of creative & technical experts deliver the quality, efficiency & cost improvements that customers expect from their own manufacturing operations.

If you would like any more information about custom chemical capabilities, please do not hesitate to contact us.