The chemical distribution sector in America directly or indirectly employs nearly 100,000 people who prepare and transport chemical products to 750,000 end users in almost every industry, according to the Alliance for Chemical Distribution (ACD).
of sales at the KC Regional Service Center for Trinity Logistics, a Burris Logistics company. “Visibility has taken on new importance, given ongoing supply chain disruptions.” Some visibility solutions can tell where products are located, as well as get detailed information such as whether upstream obstacles in the supply chain might create delays that impact customers. Logistics companies can then act—say, by allocating products between distribution centers—to mitigate bottlenecks before they materialize. LEVERAGING TECHNOLOGY Once technology provides visibility into a supply chain, optimization tools can help companies organize and combine shipments so they can reduce the number of trucks on the road, cutting both costs and the environmental impact. “Leveraging technology to plan and route shipments in an optimal way offers multiple benefits,” Boyle says. “Visibility, such as that offered by transportation management systems (TMS), can help chemical companies and their clients manage labor shortages, keep spending in check, reduce risk, and boost efficiencies,” Lindsey says. “TMS solutions can also provide better
As important as the chemical distribution sector is, it’s not immune to the changes and challenges impacting many industries. “This year was marked with tailwinds and headwinds,” says Eric R. Byer, ACD president and CEO. One example is supply chain disruption. Challenges that initially impact one region, such as a weather event, can throw off supply chains on the other side of the globe. “Even organizations that aren’t geographically close to the area are impacted by ‘the butterfly effect,’” says Robert Boyle, managed services division president with Odyssey Logistics, referring to the theory that describes how small changes to a system’s condition can produce dramatically different outcomes. “None of these issues are local,” Boyle adds. “These are deeply entrenched supply chain challenges that eventually touch everybody that participates.” Successful chemical logistics companies need to get ahead of the disruptions and decide how to respond. TIGHT LABOR MARKET The driver shortage remains an ongoing challenge, particularly when shippers need drivers skilled in the regulations and processes that govern chemical transportation. But trying to attract more workers by raising wages increases transportation costs, notes Scott Buber, director, chemical division, operations, and regulatory compliance with Warehouse Specialists, LLC (WSI), one of the largest privately held logistics companies in the United States. Along with the driver shortage, there has also been an increase in non-driver personnel changes over the past year, which severely impacts how supply chain challenges are addressed.
“Given complicated insurance policies, strict equipment and shipping requirements, and prior cargo restrictions, much of the success of moving bulk chemicals relies on relationships and experience,” says Heston Hodges, president and CEO of Logistics Management Resources, Inc. (LMR), a non-asset-based logistics provider specializing in bulk chemicals. Changes in terminal managers, office personnel, and drivers can lead to performance issues, which might range from a late delivery to product contamination. “In the past year we have seen many high-performing carriers challenged by losing a terminal manager and/or a subset of drivers,” Hodges says. “And, it takes time to rehire and retrain.” “Automating manual processes can also boost visibility within logistics operations,” says Ashley Lindsey, director
Leading chemical logistics providers leverage industry relationships and expertise to ensure bulk chemicals move safely and successfully.
June 2025 • Inbound Logistics 65
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