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Following on from the high-level panel session, Dr Christian Kohlpaintner, CEO of Brenntag, had some comments in a brief interview. He noted that, through the pandemic, people have been key, although the adaptability of the wider chemical industry has been vital. He added that innovation is largely taking place within smaller companies and start-ups, advising larger companies to keep an eye on what is going on there and tap into the possibilities. As head of one of the world’s largest chemical distributors, Dr Kohlpaintner was keen to point out the role that such players in the market can offer, providing a link and possibly a market for ideas. LINKS IN THE CHAIN For HCB readers, a core aspect of the EPCA Annual Meeting is always the supply chain session and this year was no different, with conversations following on from the topics covered in previous meetings. Dirk Verstraeten, chair of EPCA’s Supply Chain Programme Committee (SCPC) and senior expert logistics at Covestro Deutschland, described how the group was “continuing our journey on digitisation and sustainability” in the chemical supply chain. This year it has held two workshops, which were designed to bring in expertise both from the digital world and from sectors outside the chemical supply chain. Those workshops also involved the participation of Professor Ann Vereecke from Vlerick Business School, who has been
working with EPCA on the topic for some years now. She offered some insights gained from the meetings on the progress of the journey to create a sustainable petrochemical supply chain through digitisation. “Climate change is hitting so many people,” she observed. “There is a duty to reduce the impact of the supply chain.” Furthermore, natural disasters are becoming more frequent and often have impacts on the supply chain that can raise costs. Pressure for change is coming from consumers – especially the young – but also from downstream customers, regulators and investors. “The time has come to reimagine the supply chain,” Prof Vereecke said, laying out some pointers. The petrochemical supply chain needs to become more eco-efficient; gains can be made by “connecting the dots” between partners in the chain. What does it mean for the petrochemical supply chain to change from linear to circular? It certainly implies more recycling – but does taking used plastics back into the chain threaten production? Probably not, Prof Vereecke said: it should in fact deliver more opportunity, more jobs and more profit. Digital technologies can provide a way towards a smarter and more circular supply chain, as the two workshops agreed. Firstly, a smart emissions simulator/calculator can allow carbon emissions to be calculated along with time and cost, so as to accurately reflect the environmental cost of transport. Ovinto
has helped develop this idea with a pilot that can help supply chain buyers make informed decisions – but it has also raised some questions. Primarily, to roll this out in the real world will need data. “Operators need to be willing to share their data,” Prof Vereecke said. Secondly, to build some circularity into the supply chain will involve the participation of consumers and they will need to be helped to find ways to easily have their used goods returned and recycled. Workshop participants had envisioned a social media platform through which consumers could signal that they have goods to be collected and then taken into the correct recycling stream. To do this will take artificial intelligence, governance and, quite possibly, legislation. Reimagining a future supply chain that is sustainable and circular highlights the need for data to be shared in order to create visibility. “If we don’t measure, we don’t know,” Prof Vereecke said. A reluctance to be open and share data is a major barrier to progress. Secondly, trust needs to be there along the supply chain; tools will be needed to help build that and create an environment in which transparency can be provided. One thing that came out of the SCPC’s workshops was that there is a lot going on downstream of the chemical industry in these areas. Companies operating in the textiles, construction, packaging and retail sectors feel more pressure from consumers and can provide the chemical sector with inspiration for improvements in eco-efficiency and the creation of very different ecosystems. What will be needed to make this happen? Prof Vereecke was clear: investment and leadership. AWAY FROM CHEMICALS The themes described by Prof Vereecke were picked up in the panel session that followed, which again brought in speakers from a range of fields outside the immediate confines of the chemical industry. And it was evident that things are already moving. Mark Noordhoek
DIGITAL TECHNOLOGIES CAN HELP LOGISTICS PLAYERS COPE WITH SUPPLY CHAIN DISRUPTIONS
HCB MONTHLY |NOVEMBER 2021
