The Importance of a Sustainable Supply Chain – The Challenges and Opportunities (A Trade Association Perspective)

Synopsis

The chemical and pharmaceuticals industry is the United Kingdom’s second largest industry contributing over £50 billion pounds to the UK economy and is the nation’s number one manufacturing exporter. It is therefore important for the future prosperity of the country that the chemical supply chain industry continues to flourish. The Chemical Business Association (CBA) is the leading trade association representing the complete chemical supply chain. An extensive and diverse membership gives the distinct advantage of a 360-degree view and insight of the global chemical supply chain and factors that will affect it going forward.

A sustainable supply chain needs to be maintained and supported over time. Since the turn of the century, globalisation has rapidly increased with massive volumes of freight travelling vast distances around the world. This has been enabled by an integrated global supply chain which has grown and evolved to become highly optimised, and we have become dependent on its efficient and cost-effective operation which today underpins our society and economy. However, in the last two years several factors including the current Russia-Ukraine crisis, Covid-19 and Brexit have broken down and disrupted key links within the global supply chain, exposing our reliance on its efficient operation.

Companies also need to consider the environmental and social impact of their products’ journey through the supply chain, from raw materials sourcing to production, storage, delivery, and every transportation link in between. There is a growing demand and expectation from consumers for integrating sustainability practices into supply chain management.

The CBA has been working with its members and other organisations to help ensure the chemical supply chain is sustainable, both economically and socially, and this presentation will discuss some of these initiatives and look at the catalysts and underlying root causes that led to the current disruptions in this supply chain, and what the future might hold for the chemical supply chain.