N. FRYER, Sheer Logistics, Chicago, Illinois (U.S.)
Chemical supply chains experienced major disruptions in 2024 and, unfortunately, the prevalence of these kinds of crises does not seem to be dissipating. Market shifts and changing tides in the chemical industries continue to place pressure on chemical manufacturers.
Those who manage to stay the course and achieve operational excellence despite these fluctuations are often those who have set themselves up with accurate, real-time supply chain visibility. No matter how chaotic things get, these are the businesses that can keep their finger on the pulse.
From better quality control to more optimized production scheduling, this article will outline the key benefits of real-time visibility, the technology making it possible and the trends shaping the future of chemical supply chains.
Navigating complexities in chemical supply chain management. Chemical supply chains are beset with concerns that include more general supply chain disruptions1 from geo-political issues and natural disasters, as well as more specific security worries such as pipeline vandalism2 and thievery.
What makes things particularly tricky for chemical supply chains, as opposed to other industries, is that disruptions can have safety consequences as well as financial ones. The fact that most chemical supply chains span multiple countries—and continents—and are part of dense networks creates an even more complex situation to navigate.
The sheer size of many of these supply chains can increase the risk of inventory mismanagement and make it nearly impossible to respond to changes nimbly. Real-time data helps address the crux of these issues: visibility.
By achieving a greater sense of where everything is in a supply chain at any given moment, and the ability to measure a myriad of data points as well as overall supply chain performance, companies avoid the murkiness that can hinder their operations. Instead, they can catch delays and inefficiencies early and steer production along the most successful routes.
Leveraging real-time data for operational excellence. Real-time data refers to any kind of data stream that tracks a supply chain and its surrounding factors, in real time. The benefit of real-time data is that it can inform both large-scale decision-making as well as daily operations. The following are some of the areas where it tends to have the biggest impact:
Quality control: Real-time data that tracks the temperature, pressure and environmental conditions of chemical products can help businesses maintain quality and safety compliance. Too often, an issue is only noticed when there is already a problem with the product, but real-time monitoring and alert systems can ensure speedy responses and a safer supply chain overall.
Optimized production scheduling: A bottleneck with raw materials can quickly turn into a production nightmare for any chemicals company, especially if that bottleneck is conveyed too late for production managers to adjust their schedules. AI-powered scheduling software used alongside real-time tracking can help optimize things from all sides so that production scheduling is directly timed according to accurate information on supply deliveries.
More accurate inventory management: Another factor that influences quality control and scheduling is real-time data that keeps tabs on inventory numbers, location and condition. Better inventory management means a lower risk of overproduction and, in the case of supply chain delays, allows chemical supply chains to accurately update customers on delivery changes.
Overall supply chain visibility: By tracking inventory, suppliers, deliveries, etc., businesses can build highly visible supply chains. This leads to more informed decision-making, greater resilience and makes sustainability compliance that much simpler.3
Cutting-edge technologies enhancing supply chain visibility. The following are some of the most cutting-edge technologies that businesses can integrate to leverage real-time data for greater supply chain visibility:
Real-time transportation visibility platforms (RTTVPs): These platforms use data from GPS, radio-frequency identification (RFID) and Internet of Things (IoT) sensors to track shipments and other assets in real time and send alerts if there is even the slightest delay or change. Even a small route deviation will trigger an update.
Transportation management systems (TMSs): RTTVPs are all about goods in transit, whereas a TMS looks at optimizing how those goods are being moved in terms of scheduling, carrier selection, route planning, etc. These systems often use AI-powered algorithms that consider not only where goods are being picked up and delivered, but weather and traffic conditions, freight costs and various other factors that affect routing and scheduling so that businesses can make the most efficient transport decisions.
Inventory management systems (IMSs): These systems are primarily focused on keeping track of inventory, as well as the most efficient locations in which to store it. They automate the identification of slow-moving stock, assist with demand forecasting and ensure more accurate inventory management overall.
IoT devices: IoT devices can be used to track the condition of goods. They can monitor all kinds of factors, including temperature and chemical concentration to ensure that any fluctuation is flagged before it causes damage.
RFID tracking: Powered by radio frequency, these tags each have a unique ID number that allows businesses to track both raw materials and final products at every stage of the supply chain.4
Emerging trends shaping the future of chemical supply chains. A key trend noted in Deloitte’s 2025 Chemical Industry Outlook was a bigger shift toward visible, agile supply chains powered by new technologies.5 Many of those technologies have been mentioned in this article, but it is likely they will be rolled out on a larger scale, especially as AI becomes more widely used.
Sustainability measures are also becoming more of a factor in chemical supply chains as countries and organizations update compliance standards. Here again, a visible supply chain is vital, as it can assist with fuel tracking and more efficient routing.
Climate-related natural disasters and geo-political instability are not going anywhere. The only upside to these disruptions is that they are encouraging chemical supply chains to embrace data-driven solutions that will ultimately build greater resiliency overall. HP
REFERENCES
Fryer, N., “Managing supply chain disruption,” December 4, 2024, online: https://sheerlogistics.com/blog/supply-chain-disruption/
Panle, R. A., “Improving supply chain strategies towards mitigating the effect of crude oil theft and pipeline vandalism in the Nigerian oil and gas industry: A case study of the Nigerian National Petroleum Corporation,” July 2024, online: https://www.scirp.org/journal/paperinformation?paperid=135031
Messina, D., A. L. Soares, A. C. Barros and R. Zimmerman, “How visible is your supply chain? A model for supply chain visibility assessment,” Supply Chain Forum, 2023, online: https://www.tandfonline.com/doi/abs/10.1080/16258312.2022.2079955
Unhelkar, B., S. D. Joshi, M. Sharma, S. Prakash, A. K. Mani and M. Prasad, “Enhancing supply chain performance using RFID technology and decision support systems in the industry 4.0—A systematic literature review,” International Journal of Information Management, May 2022, online: https://www.researchgate.net/publication/360860513_Enhancing_supply_chain_performance_using_RFID_technology_and_decision_support_systems_in_the_industry_40-A_systematic_literature_review
Yankovitz, D., K. Hardin, R. Kumpf and A. Christian, 2025 Chemical Industry Outlook, November 2024, online: https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/chemical-industry-outlook.html
Nick Fryer is the Vice President of Marketing for Sheer Logistics. He has more than a decade of experience in the logistics industry, spanning marketing, public relations, sales enablement, M&A and more.