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• Cost pressures. Today, this is one of the most pressing challenges for chemical manufacturers, and its impact can be felt across the supply chain. From navigating rapidly rising prices to managing business growth within a competitive sector and working to avoid raising their own prices, chemical manufacturers are feeling the pinch from all directions. Some manufacturers may have slowed the pace of implementing sustainability initiatives in order to deal with these cost pressures. It is hard to be first in challenging economic times.
• Reliable supply. Supply chain disruptions can threaten chemical manufacturers鈥� production performance and could, in a worst-case scenario, cause unplanned shutdowns. Unplanned shutdowns can cause significant output losses. These disruptions can also impact the ability to meet sustainable commitments and help customers reduce carbon emissions. About 70% of worldwide chemical manufacturers have goals to achieve net-zero emissions by 2050.²
• Customer pressure. Consumers want more high-quality, sustainable products and packaging. Even though most are willing to pay more to purchase a more sustainable product,³ meeting those quality and cost expectations can be difficult, and some products and industries may be more impacted than others.

For example, a February 2023 report by Shell and Foresight Factory found that when personal care brands make formulation changes to products for sustainability reasons, more than 70% of total consumers in each country surveyed (Great Britain, USA, China, France, Brazil and Germany) aren鈥檛 willing to compromise on performance.³ The survey was sent to 500 national representatives and 300 daily skincare users in each country.

How do you mitigate supply chain disruptions?

By working with a chemical manufacturer with the following key traits, businesses can help mitigate supply chain disruptions and help avoid operational inefficiency.

• Access to adequate quantities of sustainable feedstock. Global infrastructure is a key component of a reliable chemical manufacturer. A manufacturer should be able to secure long-term access to feedstocks, whether conventional or sustainable, for its customers. At Shell Chemicals, we are able to source and secure feedstock supply through Shell鈥檚 trading entity to help ensure more reliability.
• Reliable delivery of sustainable feedstock supply to customers. A chemical manufacturer should not only have reliable access to sustainable feedstock but should also be trusted to deliver it on time to its customers. Delayed delivery times can cause bottlenecks throughout the entire supply chain. Shell Chemicals helps ensure the reliable deliveryto help its customers avoid supply chain disruptions.
• Sustainable feedstock that maintains performance expectations. A reputable chemical manufacturer should be able to offer a portfolio of sustainable options without compromising product performance. Consumers want products that will perform as expected, regardless of the industry or materials in a product. Sustainable chemicals retain the same physical characteristics as those produced from conventional feedstocks. At Shell Chemicals, we鈥檙e able to change and customise feedstocks based on customers鈥� specific needs.
• Scalable chemical solutions that can grow with your organisation. A chemical manufacturer with global reach allows its customers to adjust to ever-changing market needs and grow at their own pace. As companies transition to more sustainable products, scalable, sustainable chemical solutions can help businesses accelerate the pathway to net-zero emissions. Shell Chemicals has a global reach and the ability to deliver at scale.

Companies need to address their sustainability goals at their own pace. Whether you need to meet your corporate net-zero goals within three years or ten, Shell Chemicals is ready to help.

Visit our sustainability page to learn how Shell Chemicals can help your business shape the everyday.
 

1 ACC, ACC Member Supply Chain Report (H2 2022).

2 Deloitte, 2023 Chemical Industry Outlook.

3 Shell Insights and Foresight Factory, Bio-Beauty and Personal Care: Ingredients of Concern, February 2023.