Last month, members of the Society of Chemical Manufacturers & Affiliates (SOCMA; Arlington, Va.; www.socma.org) gathered in Nashville, Tenn. for the annual SOCMA Show event. At the event, between talk of tariffs, ongoing economic and geopolitical uncertainty, the proliferation of artificial intelligence and ever-changing demand trends and capacity bottlenecks, one word emerged repeatedly as indispensable for continued manufacturing success — trust. In the sometimes labyrinthine value chains of the chemical process industries, where competitive companies are also often each other’s suppliers and customers, and facilities rely on a vast matrix of interconnected third-party vendors, strong relationships built on earned trust and clear communication remain vital. This is especially true in situations where chemical processors rely on toll- or contract-manufacturing partners.
Panelists at the SOCMA Show (Source: Bailey)
Building a reliable foundation
Trust as an essential aspect of supply-chain success was thoroughly underlined in a panel discussion at the SOCMA Show, with insights from large multinational firms, such as BASF SE (Ludwigshafen, Germany; www.basf.com) and Evonik Industries AG (Essen, Germany; www.evonik.com), as well as smaller contract manufacturers. “The real restraint today isn’t capital. It’s not capacity. It’s trust. And trust is not built continuously. It’s built or broken in simple moments that matter, moments under pressure and moments of ambiguity, where rules and priorities collide,” said panel moderator Bryan Kitchen, president and CEO of Ascent Industries, Co. (Schaumburg, Ill.; www.ascentco.com).
An audience poll during the panel probed into the drivers for success and failure in outsourced supplier relationships. Some 60% of respondents pointed to “Poor operational discipline” as a root cause of relationship breakdown. According to the panelists, such “poor-discipline” behaviors that erode trust in a partner included: overstating/overselling technical expertise or operational capabilities; inconsistent procedures and documentation; and a lack of responsiveness and clarity. In fact, “Personal relationships and responsiveness” was chosen by around one-third of respondents in the audience poll for most desirable traits in partner selection, especially at the beginning of a relationship. “Being very open and transparent from the beginning is critical and key. If I have to chase you down to get you to respond to an email, that makes it harder for me to want to continue with that partnership,” said Jessica Whitsitt, head of external manufacturing, Americas, for Evonik Care Solutions.
Confidence and trust
So in an industry that touches nearly every corner of consumer manufacturing, and where much production is driven by proprietary processes and trade secrets, how can partners forge ahead with trust and confidence? “I think it’s really up to leadership to break down those barriers and just kind of say, yes, we have to be open, but we’ve also signed a lot of paperwork to get to this point. You really have to have that beginning, early dialogue where there is comfort on all sides, and ensure that no one has a hidden agenda,” emphasized Cameron Whaley, president of Southern Chemical & Textiles (Dalton, Ga.; www.southern-chemical.com). ■
Mary Page Bailey, Senior Editor