Here’s How BASF is Launching Award Winning Smart Containers

Supply chains have been hitting the headlines ever since the COVID-19 crisis first hit the news and brands which operate in the logistics space have been scrambling to catch up to increased demand for thousands of essential products.

This is particularly true for the chemical industry which creates products relied upon many businesses absolutely critical to the fight against COVID. Pharmaceutical brands are at the top of this pile, relying on a steady supply of chemicals to create their life-saving medicines and other treatments. Sanitation and sanitisation have also become key industries during the pandemic as the demand for chemical cleaners and other similar substances has skyrocketed as people try to slow the spread of SARS-COV-2.

However, with the intense focus on these industries and the increased importance of the work they do, the need for them to become more streamlined and transparent has also increased.

Transparency in Logistics

Supply chains are notorious for their insecurity. With the global nature of the modern supply chain, shipments often have to pass through many stakeholders on their journey from manufacturer to the end user and this provides many opportunities for accidents to occur or fraudulent products to penetrate the operation.

There is also the issue of unethical working practices. It’s incredibly hard for a company to accurately assess every country their shipments pass though and identify areas where outdated labour methods may be in operation.

The only way to combat these issues is to increase the transparency of supply chains and find new ways to make sure shipments can be assessed and recorded at every stage of their journey.

BASF

In response to its efforts to make its own chemical supply chain more transparent, German multinational chemical company and the largest chemical producer in the world, BASF was recently awarded the German Innovation Award for Excellence in Business to Business - Chemical Industry.

The award is presented by the German Design Council in recognition of those product innovations, across various industries, which represent a quantum leap forward when compared to the technologies presently available. The Supply Chain Customer Collaboration project is a joint effort between BASF, the lacquer and stain producer Hesse Lignal and Germany-based technology start-up Packwise.

“We faced challenges regarding the transparency of our supply chain that resulted in slow decision-making processes on both sides,” said Senior Team Lead Supply Chain and Logistics Excellence of BASF Dispersions & Pigments, Markus Hofmann. “We decided to add more capabilities to the material flow and selected Packwise as our service provider. We saw more potential in the pilot phase, and we are now talking about a genuine supply chain upgrade. What started as a joint attempt at simplifying business processes has become a journey of an integrated supply chain between business partners.”

The innovation in question involved the use of a Smart Cap, designed by Packwise, which could be fitted to existing intermediate bulk containers and transform them into digitally enabled smart containers, By creating a digital twin of the container back in BASF data centres, the Smart Caps could record and report reams of data from each shipment, including filling level, location, exposure to shock, movement, and temperature through a host of different sensors as it moves through the BASF supply chain.

This data can then be used to determine if the shipments were opened or otherwise disturbed during the process and whether they moved through any parts of the world or individual companies with a poor record on human rights violations and/or the manufacture of counterfeit goods.

BASF then has the power to address any weak points in its supply chain. The increased accountability and transparency these Smart Caps create will help keep supply chains honest and make sure the entire operation flows in accordance with BASF’s own ethical and quality control policies – as well as valuable insights for inventory management and replenishment.

“This is a great example of how new technologies and smart data management can unlock new potential in supply chain management,” said Digital Champion Supply Chain, BASF Dispersions & Pigments, Frank Hildebrandt. “Especially in inventory management, process flow management and condition monitoring, these new data points allow us to further develop and enhance our services together with our customers. Filling in the white spots on the physical flow of material is another step towards building the foundation for an autonomous supply chain,”

Final Thoughts

A more transparent and secure supply chain should be the goal of all of us working in the business of chemical logistics. Not only does it benefit the world in terms of product quality and the reduction of counterfeit goods, but also benefits the customer experience for the end user.

You can hear BASF’s Vice President of Global Inhouse Supply Chain Consulting, Dr. Frank Haunert speak at LogiChem 2022, being held in March at De Doelen ICC Rotterdam, The Netherlands.

Download the agenda today for more information and insights.