Chemical industry

•  Deficit of port capacity on transshipment of products.

• Deficit of special rolling stock.

• Continuous production cycle.

• Specific conditions of storing, processing and transportation of products.

• Imperfect legislative base regulating and setting requirements to environmental and industrial safety, including the one related to storing and transportation of products.

• Specific requirements to cleaning and preparation of wagons.

• Need in additional costs for logistics and utilization of wastes.

Many enterprises of chemical industry have started and successfully modernize production. New production capacities are introduced, there is an increase in ready products loads; thus, consumption of raw materials increases. Having this as a background, it is required to urgently solve tasks of provision with dynamic delivery and off-load of ready products with minimal operation costs with high service quality.

It can be reached through introduction of effective logistics procedures on procurement stage, by modernizing transport and warehouse infrastructure, as well as through development of organizational and managerial structure and personnel motivation system.

• Absence of logistics strategy resulting to big risks and costs upon production volume increase, widening inventory and geography of sales. Absence of complex approach in production modernization.

• Insufficient understanding of environmental risks and industrial safety in implementation of logistics operations related to storing, processing, transportation and transshipment of chemical products.

• Additional expenses in sale of ‘transition’ product. Frequent change of produced goods inventory at enterprises with continuous production cycle leads to appearance of low quality ‘transition’ product which is sold based on low price, however, bears logistics loss on the same level.

• Logistics functions are washed out within units. There is no transparent management of products shipment from loading from supplier to delivery of goods to clients. Multiple chain of responsibility delegation, when each unit is stewed in its own juice, there is no coordination and responsibility for final outcome.

• ‘Dispatcher’ management instead of regulatory one. Dispatcher’s functions are sometimes implemented by heads of units, regulating order of operational processes and responding on failures. Regulations are not perfect and don’t reflect real processes. Regulations are there for a form, but not designed for assistance in decision making and personnel training.

• Deficit of qualified personnel, in regions, in particular.  

•  Production and commercial warehouses don’t correspond with modern requirements.

• Deficit of warehouse facilities.

• Exhausted equipment for internal warehousing transportation and execution of loading and off-loading activities.

• Imperfect labor consuming warehousing processes.

• Imbalance of loading warehousing facilities.

• Loss of products in storing and excessive loads.

• Lacks and errors in weight control of stock.

• Insufficient flexibility of delivery chain management. Large logistics cost in execution of ‘fast’ contracts related to a need in production coordination

• Low turnover of ready products stock.

• Failure in delivery and low level of logistics service.

• Large amount of illiquid assets in total amount of material and technical resources.

• Old-fashioned stock norms, in particular, in supplying maintenance and exploitation needs.

• Excessively large planning horizon, insufficient precision of deliveries.

• Concentration and non-dynamics of deliveries.

• Absence of adequate informational support of planning and control of procurement processes.

• High costs for maintenance and exploitation of own fleet, uncompetitiveness of own transport.

• Exhaustion of equipment, large costs for renovation.

• Insufficient efficiency of transport utilization in internal warehouse and external carriage. Low level of motor transport dispatcher system.

• High level of misuses related to transport, fuel and lubricants.

• Deficit of rail way vehicles.

• Provision with empty wagons, not suitable for loading final products (strict requirements to technical conditions of wagons).

• Aging of wagon fleet and infrastructure.

• Low integration of logistics units into the rail way system.

Based on assessment of our experts, it is feasible to obtain improvement of the following indicators: