Cost focus could lead to logistic opportunities

15 April 2008 17:12  [Source: ICIS news]

DUSSELDORF (ICIS news)--Continued pressure from chemical management boards to reduce costs in the supply chain will yield opportunities, Joe Przeworski, global supply chain director of INEOS ChlorVinyls, told delegates at a logistics conference on Tuesday.


"Darker days are ahead at the moment almost inevitably, and there is pressure on costs and managing them," he said.


Factors driving costs up include fuel, which represents about 30% of haulage costs, steel and wood for pallets and packaging, and labour, which also accounts for about 30% of haulier costs.


Congestion at ports and on the railways and roads along with inbalanced transport flows are also adding to the problem.


Przeworski said that the opportunities for backloading have decreased in recent years mainly because of industry rationalisation.


Opportunities exist for companies that can consider alternative routes to market such as intermodal services and consolidate their infrastructure and freight services, he said.


Collaboration with customers and suppliers can also optimise logistics, he added.


LogiChem's 7th European Chemical Logistics & Supply Chain conference is taking place on Tuesday and Wednesday.


By: Elaine Burridge
+44 20 8652 3214

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