Destruction and Disposal Cost Alternatives for Reducing Destruction and Disposal Cost in the Chemical Industry

Editor: Marion Henig

Every year chemical companies endure disposal and destruction cost of outdated material amounting to millions of Euros. The shorter the shelf life the higher the costs. By means of some simple process optimization measures costs can be reduced may times over.

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Companies that do not organize their operational planning taking into consideration the limited shelf life of their products, waste substantial process and material costs. (Picture: Archive)
Companies that do not organize their operational planning taking into consideration the limited shelf life of their products, waste substantial process and material costs. (Picture: Archive)

Especially auditors pay close attention to the fact that, the time frame between storage of material after production completion and delivery to the customer, does not exceed the official shelf life. In fact, even the additional time of storage at the customer needs to be considered. “Companies that do not organize their operational planning taking into consideration the limited shelf life of their products, waste substantial process and material costs”, explains Omar N. Farhat, Managing Director of the Düsseldorf based Management Consultancy OPC GmbH.

The expert for process optimization in the chemical industry mentions an example based on a producer of resins and varnishes, who was looking for means of how to reduce his destruction and disposal costs. Due to these inefficiencies the company had to endure costs of half a million Euros annually. The average shelf life of finished goods was between three to six months.

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