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In the modern business world, traceability is no longer a luxury — it is a necessity.

Nowhere is this more true than for chemical companies where the pressure to demonstrate the origin, composition, and safe disposal of products is most vigorous. In Europe, this is driven by a mix of stringent regulations such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), growing customer demand for transparency, and increased scrutiny around environmental and human health impacts.

At the heart of a chemical product’s traceability is the concept of product lifecycle management. Known simply as PLM, product lifecycle management involves collating the data on production processes, raw material sources, handlers, designers, and sales information from a chemical’s inception to retirement.

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This transparency is vital not just for legal compliance, but also for rapid responses to quality issues, recalls, or sustainability audits. Without managing traceability, chemical companies risk non-compliance, reputational damage, and financial penalties.

Moreover, as the EU moves towards a circular economy and climate-neutral goals, traceability supports sustainability claims and helps companies measure progress against green targets. In essence, it is becoming a core part of the chemical sector.

As is to be expected, there are numerous sets of laws and standards to be met with regards to traceability. As the British Chemical Industry Journal noted in a recent report, “Whether dealing with REACH, OSHA, EPA, CLP, or international standards like ISO 9001 or GMP, chemical manufacturers face some of the strictest requirements in global industry.” Concluding that, “A traceable production process is often a non-negotiable prerequisite for gaining market access or passing audits.”

But because most chemical products are manufactured as a composite of many chemicals and industrial feedstocks, establishing a clear path can be a daunting task.

Fortunately, the Chemical Industry Journal also gives advice on how best to achieve traceability by breaking the task down into more manageable portions. When doing so, areas to be considered include:

Clear Documentation and Communication: Make certain that traceability data, such as batch records, safety data sheets (SDS), and COAs (Certificates of Analysis), is readily available and regularly maintained. If quality problems arise or if recalls become necessary, open and honest communication with suppliers and consumers can help improve credibility and minimise miscommunication.

Labelling, Barcodes, and GHS Compliance: Physical identification of a chemical product is still necessary even with increasingly digitalised settings. For inventory, shipping, and safety compliance, labelling systems should be able to scan barcodes and integrate with ERP systems to connect physical containers with digital data.

Process Tracking and Operator Accountability: Time stamps and operator information should be recorded at every stage of the production process, from weighing and mixing to reaction monitoring and packaging. In the event of deviations or incidents, this offers a documented trail and facilitates root-cause analysis.

Lot and Batch Tracking: Manufacturers of chemicals must use lot or batch numbers to keep track of their raw ingredients, intermediates, and final chemical products. This promotes adherence to safety data sheets (SDS) and regulatory filings and provides complete visibility into which ingredients went into which finished goods.

Make Use of Specialised Traceability Software: The demands of modern chemical manufacture are often simply too great for manual processes to handle. Operational effectiveness, compliance, and real-time visibility are guaranteed if ERP system software with integrated traceability is employed.

Not only is this list not exhaustive, but chemical companies may also adopt some, none, or all of the approaches as they best see fit. For example, the use of traceability software may be a vital tool for one chemical supplier but may be too expensive and unnecessary for another.

Here are how some chemical companies have approached this challenge.

1. ICA Group: Centralizing Compliance with Trace One SDS Authoring

ICA Group, a global manufacturer of wood and glass coatings, faced challenges in keeping up with rapidly changing regulations like REACH, CLP, and GHS. Their existing system struggled to stay current with safety data sheet (SDS) information, leading to compliance risks. By adopting Trace One SDS Authoring, ICA Group centralized its compliance processes, ensuring up-to-date regulatory data and streamlined workflows.

2. BASF: Digitalizing Supply Chain Traceability

As a much larger chemical business, BASF were able to implement their own digital traceability system. Called ‘BASF 4.0’ it is a traceability function which utilises sensors, blockchain technology, and data analytics to achieve end-to-end tracking of raw materials and chemical products. By doing so, BASF hope to enhance efficiency in the paperwork process (now digital), reduce costs, and improve customer satisfaction. Additionally, BASF leveraged traceability data for process optimization and risk reduction.

3. REACHLaw: Supporting Multi-Regional Regulatory Compliance

A North American chemical manufacturer engaged REACHLaw to navigate compliance with EU REACH, Turkey’s KKDIK, and UK REACH regulations. REACHLaw acted as the Only Representative in each region, facilitating registrations and ensuring market access.

Traceability is no longer a back-office concern for chemical companies—it is a strategic imperative. Whether the goal is regulatory compliance, operational excellence, or sustainability leadership, robust traceability systems are fundamental to success.

As demonstrated by chemical industry leaders like ICA Group, BASF, and REACHLaw, investing in digital tools, process transparency, and regulatory foresight not only mitigates risk but also creates competitive advantage. In an era of complex supply chains and rising stakeholder expectations, traceability is the thread that holds accountability, safety, and innovation together—and chemical companies which ignore it, do so at their own risk.

Photo credit: Jean Woloszczky on Unsplash, Leslie Saunders, Chelaxy Designs, Alberto Rodriguez, & Guerrilla Buzz

The UK and EU have now signed a significant agreement aimed at resetting their post-Brexit relationship. It is a long-awaited deal following years of resentment and a lack of political will to establish common ground following the UK’s decision to leave the EU.

Unfortunately for the chemical industry, the deal does little to ease the burden of red tape created when the UK left the customs union. Instead, the deal’s highlight appears to be the Sanitary and Phytosanitary (SPS) agreement, which simplifies the export and import procedures for food and agricultural products. Although it is a provision which primarily targets the agrifood sector, the principles of reduced checks and streamlined processes may, possibly, set a precedent for similar arrangements in the chemical sector, facilitating smoother trade in the future.

But there is other good news for British business as the deal also eases cross-channel energy trading. This could go some way to lowering electricity prices where UK manufacturing sectors, such as the chemical industry, pay some of the highest rates in Europe.

However, the best announcement for companies who import and export industrial chemicals between the UK and EU has been the assistance the deal provides on carbon taxes. As Stephen Phipson, head of the manufacturers’ organisation Make UK, notes, “The agreement that the UK and EU will link their carbon markets to avoid taxes on carbon-intensive goods like steel and cement [and chemicals] travelling between the UK and EU is welcome news.”

A further central component of the new agreement is the mutual recognition of conformity assessment (MRCA). This provision allows products certified in one jurisdiction to be accepted in the other, reducing redundant testing and compliance costs. For the chemical industry, this means streamlined processes for certifying products, potentially accelerating time-to-market and reducing administrative burdens.

However, many are reserving judgement on the deal until they have read the small print and seen it in action, such as Steve Parker, the director-general of the British International Freight Association (BIFA), who stated that, “It is now down to government to work out the most practical solutions.”

For its part, the UK’s Chemical Industries Association (CIA) has also expressed cautious optimism regarding the deal, stating that, “The potential platform offered by today’s announcements are where we need to be.”

It applauded the commitments to ease the electricity market but awaited full comment until the details have been checked, especially that made over the Emissions Trading Scheme (a.k.a. carbon tax).

“The Emissions Trading Scheme link might pave the way to a long-lasting solution but in considering options for linking it is important that any solution is adequate and aligned to deliver decarbonisation not deindustrialisation,” the Association said in its press release. “Above all of this, whatever deal is or is not reached, the UK Government must ensure policy and economic stability so that chemical manufacturing sites in the UK who are competing with sites around the world, can attract investment in net zero technologies.”

Certainly, the European chemical sector needs some support. A recent survey of members of the Chemical Business Association in November 2024, found that, “71% faced chronic import/export challenges, while 82% were concerned by regulatory uncertainty.”

As such, any trade deal which eases access to transnational markets will be seen in a productive light. But despite the positive aspects, the chemical industry still faces challenges. The need to comply with both UK and EU regulations remains a significant administrative burden, leading to increased costs for businesses. Small and medium-sized enterprises (SMEs), in particular, may find it difficult to navigate the complexities of dual regulatory systems.

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For while the MRCA and SPS agreements offer benefits, they do not fully address issues related to the UK’s divergence from the EU’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation. Without full alignment, UK chemical companies may still face barriers when accessing the EU market, potentially limiting the effectiveness of the new deal.

Overall, it is felt that the newly signed UK-EU deal presents opportunities for the chemical industry by facilitating trade and reducing certain regulatory burdens. Yet while it marks a positive move towards improved relations and economic growth, continued efforts are necessary to fully resolve the complexities faced by chemical companies operating between the UK and EU markets.

Nothing can replace the boost to business which the chemical industry enjoyed with the barrierless trade of Britain being a member of the EU. As a result, the overwhelming sentiment is one of gratitude that finally the two sides are speaking proactively again and have made a business-friendly deal—however small that may be.

For example, despite the farming and food sectors being one of the biggest winners in the trade deal, even the president of the Northern Ireland farmers’ union, the UFU, remains wary of celebrating too loudly. “This deal isn’t going to remove all obstacles overnight,” he said. “It will take up to 18 months to implement, and much of the content will be complex and require further clarification. But it is,” he concludes, “a step in the right direction.”

Good news for traders of industrial chemicals? The answer, it seems, is a cautious “yes.”

Photo credit: Benny Sun on Unsplash, Chelaxy Designs, Julia Taubitz, & Starline on Freepik

Traditionally, chemical sales relied heavily on direct interactions and manual processes. However, online chemical marketplaces have emerged as crucial venues for buyers and sellers of raw materials in the rapidly changing world of business-to-business interactions.

These chemical trading hubs are making it easier to communicate, negotiate, and make transactions effectively, such that they have become central to manufacturers’ feedstock sourcing.

Yet looking to the future, B2B chemical marketplaces are about to be transformed by several key trends. These include:

1. Improved Transparency and Traceability

Chemical industry transparency and traceability has become crucial as consumers look for products from ethical and sustainable sources. At the same time, proposed EU regulations are expected to impose complete raw material to disposal trackability for all industrial chemical products.

In response to these law changes alongside trends in consumer demand, B2B chemical marketplaces are now offering greater openness and documentation. In this sense, chemical trading hubs are differentiating themselves through collaborating with suppliers who meet strict sustainability requirements. B2B online markets enable procurement departments to make well-informed decisions and match company values with their purchases by providing thorough product information, such as certification and origin information.

2. IoT and Supply Chain Management

Chemical company supply chain management is expected to be completely transformed by the Internet of Things (IoT). In order to maintain inventory levels, keep an eye on storage conditions, and facilitate real-time order tracking, B2B markets are anticipated to incorporate IoT devices and sensors to allow for speedy procurement of stock.

This degree of connectedness guarantees improved inventory control, lowers waste, and boosts overall operational effectiveness. For this reason, industrial chemical stakeholders are leading the way in deploying IoT solutions to streamline the trade process because they recognise the value of a smooth supply chain.

3. Promotion of Sustainable Practices

B2B chemical marketplaces are also playing a pivotal role in advancing sustainable practices and supporting the transition to a circular economy. By creating digital platforms where surplus, excess, or off-spec chemicals can be resold or repurposed, these marketplaces help reduce the volume of chemical waste that might otherwise be incinerated or sent to landfill. This not only minimises environmental impact but also enables chemical businesses to recapture value from unused inventory, turning potential losses into revenue streams.

Moreover, many of these platforms actively promote sustainable sourcing by partnering with suppliers who meet recognised environmental and ethical standards. This allows buyers to make more informed decisions aligned with corporate sustainability goals.

In addition, by offering detailed product information—such as origin data, carbon footprint, lifecycle analysis, and disposal guidance—these marketplaces empower procurement professionals to evaluate products not just on cost and performance, but also on their long-term environmental and social impact. Through these efforts, B2B chemical marketplaces are helping to embed sustainability into the core of industrial procurement strategies, making it easier for companies across the chemical value chain to operate more responsibly and efficiently.

4. Artificial Intelligence

The impact of AI is being increasingly felt across all sectors of the economy, but nowhere more so than the chemical industry. Similarly, B2B industrial chemical markets are expected to undergo a transformation as a result of the integration of AI technologies. AI algorithms can improve individualised purchasing experiences, suggest relevant products, and expedite search procedures by utilising data analytics. Advanced AI algorithms that examine customer preferences, historical data, and market patterns are being adopted by industrial chemical marketplaces. This makes it possible for them to offer individualised advice, streamline the purchasing procedure, and give a flawless user experience.

5. B2B Markets Span Geography

Geographical limits are being removed via B2B chemical marketplaces, enabling companies to enter new markets and increase their market share. Industrial chemical marketplaces are giving companies the chance to explore the whole world for sourcing feedstocks, establishing connections, and doing business with chemical industry professionals from anywhere on the planet. This improved accessibility encourages healthy competition, sparks creativity, and creates opportunities for win-win partnerships on a global scale.

6. Customization in Chemical Markets

Industrial chemical sales have traditionally been customised through personal relationships built up over time between chemical suppliers and buyers. Originally, online chemical markets focused on their advantages of speed, ease of use, price comparison etc.

Now B2B chemical platforms are adding value-added services and customisation choices to differentiate themselves in a crowded industry. By providing extra services like quality checks, lab testing, and product customisation, industrial chemical markets are moving beyond the traditional transactional model. Instead, they are modernizing sales and marketing processes by offering solutions that connect the entire buying process—from research to reordering.

Thanks to these value-added services, online B2B markets are positioned as a reliable and all-inclusive platform for chemical trading. They are giving buyers more assurance in their purchases while also facilitating smoother procurement processes.

In conclusion, B2B chemical marketplaces are not just reshaping how industrial chemicals are bought and sold—they are redefining the very nature of business in the chemical sector. As these platforms continue to evolve, the integration of AI, IoT, enhanced transparency, global accessibility, and customisation is setting new standards for efficiency, sustainability, and user experience. By embracing these innovations, chemical marketplaces are poised to become indispensable tools for modern procurement, fostering stronger, more informed, and more agile connections between suppliers and buyers worldwide.

As such, the future of industrial chemical trade lies not just in digital convenience, but in the smart, transparent, and collaborative systems offered by B2B online chemical trading hubs.

Photo credit: Freepik, Freepik, Freepik, Freepik, & Freepik