Chemicals Logistics: Uncovering Hidden Profit Opportunities for Your Business
- October 02, 2023
Be it a humble household’s income or a major corporation’s profit margins, the maxim holds true: a penny saved is still a penny earned.
When it comes to corporate cost-cutting, logistics is one area of business activity that you may have overlooked. And as a one-stop-shop chemical manufacturer for over 55 years, Seatex has helped countless customers save significant money with packaging, storing, and transporting options and solutions for their chemical products.
Here’s how Seatex can help you save on your logistics spending…
Clear Location Advantages
Reducing transportation distance and time is a surefire way to save on logistics, and Seatex’s four locations along the Texas Gulf Coast are in prime location to do that.
Nearby Houston is one of the largest international trading hubs in America thanks to its two airports, close proximity to five of the nation’s 20 largest ports by tonnage, and two Class I railroads with intermodal facilities at the Port of Houston.
This selection of transport options gives you the luxury of choosing the lowest-cost solution for your products, as well as providing a central location for shipping east, west, or north through the U.S.
Our facilities have immediate access to rail lines and trucking routes for speedy loading and shipment.
Learn more about Seatex’s location advantages.
Smarter HAZMAT Handling
Manufacturers who don’t work with HAZMATs on a regular basis may fall victim to under- or over-protecting them with their packaging.
Inadequate packaging could lead to costly product damage, leaks, and delays, as well as other related business risks. Note that 2023 marked the second year in a row in which the Department of Transportation increased civil penalties for HAZMAT shipping violations.
On the other hand, over-securing HAZMATs or otherwise inefficiently packaging or shipping them can add volume, weight, and ultimately shipping time, all of which cut into your profit margins.
Seatex is well-versed in HAZMAT handling, as are the trusted transportation partners we contract on your behalf. We see to it that your hazardous and non-hazardous materials alike are packaged and shipped securely and cost-effectively.
Lower Procurement Costs
Depending on your industry, chemical purchasing costs can have an enormous impact on profitability. For example, they are equivalent to as much as 70 percent of sales revenue for chemical companies, according to consulting firm McKinsey.
Raw materials of all kinds continue to see dramatic price volatility due to supply disruptions, which can not only hinder profits but create problems throughout the organization, from missed orders to investment and forecasting quandaries.
Working with a manufacturer like Seatex who has established relationships with raw material suppliers gives you access to lower, stabler rates than may be found on the open market or with other custom manufacturers who don’t have the same longevity and established vendor networks as Seatex.
Our Inventory Management and Warehouse system uses barcodes on all raw materials and products to track their movement through our facilities at every stage. This level of data allows you to maximize profits by:
- avoiding delivery delays, damage to items, and lost customers;
- utilizing just-in-time production for decreased overhead costs;
- taking advantage of our FIFO inventory practice to ensure products are cycling through well before their expiration dates, thereby decreasing the likelihood of product malfunctions and returns; and
- easier QA/QC by being able to follow each individual product through each stage of its manufacturing journey.
Keep your facility overhead costs low by letting Seatex store your raw materials or finished goods until time to ship them directly to the customer. We have more than half-a-million square feet of warehousing space across our locations.
Here your products can be carefully stored in the right conditions, in safe proximity to other chemicals, in totes, drums, boxes, super sacks, and more. You’ll save on both storing them yourself and the extra shipping step from us to you.
Integrate into Your ERP System
Advanced logistics features such as an inventory management system are a perfect complement to enterprise resource planning (ERP) software.
The ability to feed your ERP more data and loop logistics activities in with the rest of your business processes will only help these tools do their job better. Cost savings can and should result from more streamlined production, enhanced collaboration with your manufacturer, and improved efficiency.
A Proven Track Record
Seatex has a more than half-century-long history of adding value for our customers. We do this in a number of ways, including advising and assisting with…
- regulatory compliance
- accident reduction
- supply chain management
- route optimization
- inventory management
Save More with a One-Stop-Shop
Discover how a chemical blender and manufacturer with the comprehensive capabilities of Seatex–able to handle everything from R&D to scale-up, dry blending to custom reactions–can increase your profit margins and grow your business. Why leave your business in the hands of less experienced custom manufacturers when you can partner with an industry leader with a long-term proven track record of delivering successes for our customers.