>> Karen Parker, editor-in-chief

More Than Logistics: The Expanding Role of Distributors and Their Part in Sustainability

Every September, ASI sets aside some of its editorial space to look at a critical element in the adhesives and sealants supply chain: distributors. This year, we have a very interesting interview with Eric Byer, president and CEO of the Alliance for Chemical Distribution. Eric explains how the role of chemical distributors goes beyond logistics to include technical support, formulation expertise, regulatory compliance, and sustainability services. He also discusses major challenges facing the industry, including uncertainty caused by the tariffs set by the Trump Administration and issues within the freight industry. I encourage you to read the entire interview.

Another key topic of this issue is sustainable solutions for adhesive formulation, particularly within the packaging space. Packaging is a key part of the supply chain and an important consideration when companies are looking to meet their sustainability targets. Since the COVID-19 pandemic, this connection has become even more evident as online shopping — and its accompanying packaging and shipping — grew considerably. A study by McKinnsey in 2016, well before the pandemic, reported that, for a typical consumer company, its supply chain could contribute up to 80% of greenhouse gas (GHG) emissions, much more of an impact that company’s own operations.

The Environmental Protection Agency (EPA) estimates that transportation is currently the largest contributor to GHG emissions in the United States, accounting for 29% of total emissions. Globally, transportation represents 25% of total GHG emissions. Beyond transportation, waste created from packaging also contributes to the total carbon emissions of moving products from one place to another. Creating packaging materials that can be recycled, thus facilitating a more circular economy, helps to reduce those emissions.

If we set aside environmental concerns, a case can be made for the utility and cost saving potential of reducing carbon emissions within your supply chain. Route optimization and resource efficiency through sourcing processes are ways that companies can reduce carbon emissions within their supply chain, for both environmental and financial benefit. Rokibul Hasan, a researcher at Gannon University in Erie, Pennsylvania, asserts in the paper AI-Enhanced Decision-Making for Sustainable Supply Chains: Reducing Carbon Footprints in the USA that the use of artificial intelligence (AI) can help companies increase recycling, optimize routes and use resources more efficiently. Using larger amounts of data can identify patterns and make predictions that can increase operational effectiveness and reduce waste. AI In logistics can also help to optimize routes and evaluate suppliers. The paper also explains how AI can help to more accurately predict demand, reducing excess inventory and reducing waste and storage needs.

In terms of route optimization, Hasan explains that algorithms can help to identify the most efficient routes, reducing fuel consumption. AI can also be used to manage fleets by monitoring specific vehicle performance and predicting maintenance. All of these can reduce fuel consumption, which in turn reduces the GHG emissions within the supply chain.

The adhesives and sealants industry received an important lesson in the critical role the chemical supply chain plays in its success as an industry in 2020 and 2021, when shipping was impacted by the pandemic and winter storm Uri in Texas reduced availability of certain key raw materials. One of the takeaways from that experience was how important it was to be flexible and be able to respond quickly to change. AI presents another tool for companies to create a more robust and sustainable supply chain.

I hope you enjoy this issue of ASI. As always, please contact me at parkerk@bnpmedia.com with comments or questions.