Management Services: Reducing Chemical Use and Risk Through
Innovative Supply Chain Management
Jill Kauffman Johnson and Thomas J. Votta - Chemical Strategies Partnership (SESHA Journal Volume 15 Number 3/4 pp. 55 - 61 )
A new trend in chemical management is emerging due to greater purity requirements for chemicals, increasing complexity in managing chemicals, rising operating costs, and the ever-present challenge of maintaining a safe working environment for employees. Semiconductor manufacturing firms and other electronics firms are fundamentally rethinking the way they purchase, use, and manage their chemicals. This new approach, called "chemical management services" (CMS), is a business model in which manufacturing companies engage a service provider in a strategic, long-term contract to supply and manage their chemicals and related services. Thus, chemical suppliers become chemical service providers and are paid for successfully managing chemicals, not for selling more chemicals. The results of a recent CMS industry survey indicate that approximately 35% of the electronics industry currently uses CMS, many of whom are semiconductor firms. The key to determining whether this new approach is appropriate for a particular company is understanding the total cost to manage chemicals. The Chemical Strategies Partnership (CSP) is helping companies to analyze the total cost of managing their chemicals and the feasibility of implementing a chemical service program. Results from a pilot program conducted by CSP are discussed.