Concerns Regarding Custom Manufacturing Supply Chains

One of the main priorities when professionally sourcing chemicals is ensuring that supply chains remain secure and active. A large portion of modern chemical manufacturing setups are made up of multi-step chemical synthesis processes and as such, being able to easily procure the active ingredients and building blocks used in these processes is essential.

Markets such as pharmaceuticals, agrochemicals and many others are built on a foundation of raw materials and intermediaries which much be securely sourced.

The speciality chemicals used within these processes are generally provided by custom chemical manufacturing vendors, and their role is crucial in ensuring the ongoing success of high-value blockbuster products. However, there is currently some scrutiny of the sourcing landscape – this article will explore some of the core concerns present within the chemicals manufacturing supply chain.

Custom Chemicals Manufacturing Security: Key Issues

Cost is the primary concern for any sourcing professional, whether they are procuring a custom chemical or service in the commercial agricultural or pharmaceutical sector. It is critical that products and/or services are secured at the lowest price possible in order to alleviate budgeting concerns and ensure that returns on investment are as high as they can be.

However, this approach of opting for the cheapest option has led to a number of security issues including working with unknown custom chemical vendors in faraway countries.

One prominent example of this is the current sweep of regulatory compliance in China. As the country has enforced new laws and constitutional amendments on environmental responsibility, existing manufacturers have been forced to shut down overnight. This, in some cases leads to the closure of whole districts of custom chemical manufacturers where just a singlemanufacture was out of compliance with the updated policies.

As a result of this, price concerns have given way to wider issues such as sustainability of supply, availability and the mitigation of risk.

Alternatives have emerged however, and these have been seen due to the ingenuity of custom chemical manufacturers that have become more and more focused on providing value to customers through long-term partnerships.

This change in focus and approach has been enabled by a wide array of circumstantial changes. For example, reduced energy costs – particularly In the United States – and an improved economic climate have enabled manufacturers of custom chemicals to establish reliable and secure supply chains with products and services that are reliably available at highly competitive prices.

Renewed creativity and the previously mentioned opportunities have allowed for new partnerships to be developed, with multiple sites or vendors beginning to affiliate in order to offer a complete array of competencies. These include:

  • Halogenation
  • Alkylation
  • Azo Chemistry
  • Hydrogenation
  • Grignard chemistry
  • Heterocyclic synthesis

These are just some examples, and a whole range of other custom chemical manufacturing processes are also used to produce the desired downstream or active product.

It is anticipated that collaborations between custom manufacturers will become more and more common over the coming years.

Custom Chemical Manufacturing Solutions from Jayhawk

Jayhawk can offer a comprehensive range of custom manufacturing services developed from extensive process development capabilities. The company is also able to offer a wide range of made-to-order products.

Jayhawk’s products are accredited to cGMP/FDA, ISO and Responsible Care® standards. Its expert creative and technical teams can deliver efficiency, quality and cost improvements to customers, allowing those customers to see these benefits within their own manufacturing operations.

This information has been sourced, reviewed and adapted from materials provided by Jayhawk Fine Chemicals Corporation.

For more information on this source, please visit Jayhawk Fine Chemicals Corporation.

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