Charlotte, N.C.–Specialy chemicals supplier Clariant is implementing a supply chain optimization effort as part of the Clariant worldwide sustainability program, which has reduced by more than 60 percent the carbon dioxide (CO2) emissions produced when shipping one raw material for its Oil Services operations.
Through supply chain analysis and planning involving Clariant’s Oil Services business and its regional procurement team, the company partnered with the manufacturer of a subsurface chemical to optimize the supply chain by switching from bulk tanker truck deliveries to intermodal transport, reducing CO2 emissions by 65 percent per year. This represents a reduction of 37 tons of emissions for a single product, the company said.
“In a business driven by sustainability, it’s no longer enough to manage your supply chain for cost and service levels,” says Michael Ochoa, Region Head – West US for Clariant Oil Services. “By focusing on the efficiency of our supply chain and working as partners with our suppliers, we can make a positive impact in reducing the carbon footprint associated with these operations.”
Ochoa said the intermodal delivery option was selected based on the volume of material that Clariant consumes on a recurring basis. Bulk tanker truck shipments, the standard means of delivery, tend to be more costly and less efficient when used for cross-country shipping. An analysis was conducted to verify that the transition would have no impact on lead times and quantities required to sustain daily business requirements. The analysis concluded that the cost per unit of intermodal transport was lower than standard delivery methods, while the environmental impact was significant.
Clariant’s Oil Services products, which include scale and corrosion inhibitors and demulsifiers, stop corrosion in oilwell parts, dissolve waxes that build up in oil pipelines and separate unwanted substances in crude oil, all helping oil producers to increase their production and maintain the integrity of their facilities. Regional procurement assists the Oil Services business with negotiating pricing for materials and helps identify suppliers that are committed to partnering with the business to provide best-in-class chemistry and services.
“An awareness of the impact of daily business operations is now part of our decision-making process when it comes to determining supply chain movements,” says Ochoa. “Raising awareness within the supply chain helps us make critical decisions about carefully managing our money and the environment.”