F+L Week 2019 | Daniel Sullivan | The Impact of Chemical Regulations on Global Contracts
Businesses that fabricate products in different regions of the world have a goal to optimize the procurement processes that support their manufacturing operations. Global procurement contracts are becoming more prevalent as customers with inter- national manufacturing facilities seek to take advantage of scale and to standardize the quality of the products that they place into multi-national markets. This presentation introduces the many factors that need to be considered to ensure that product pricing and facility support services are competitively determined. This presentation starts with a simple scenario for discussion. The interaction between the supply chain, sales and marketing, and regulatory affairs groups of the lubricant manufacturer are outlined. Questions are raised about the acceptability of lubricant products that address regional issues by offering technically and functionally equivalent product formulations. The discussion delves into the challenges of moving products into countries having different and varying chemical regulatory requirements. Some detailed discussion is provided that addresses Asian and European chemical registrations. Lubricant manufacturers that form integrated teams to prepare global procurement contracts for their customers have a better chance of avoiding unanticipated issues while building their brand and reputation in the international arena.