ChemDirect marketplace seeks to transform chemical buying
7 Sep 2021 --- Described as the “new and smarter way to purchase and sell chemicals”, ChemDirect aims to connect the chemical world through its digital B2B marketplace, purpose built for the chemical industry. The platform caters to those who need to shop for on-demand chemical supplies with direct shipment. It aims to connect brands, customers and suppliers throughout the BPC industry to enable them to compare and purchase chemicals sold directly from manufacturers.
Launching the platform in August, and promoting its updated 2.0 version, ChemDirect strives to offer chemical buyers better point-click-and-buy capabilities, faster delivery speeds and higher savings. US-based buyers who purchase directly from ChemDirect manufacturers have an average fulfillment time of 3.5 days and the platform gives the BPC industry up to 80% in cost savings, the company states. The marketplace is able to offer this saving to BPC players by providing a digital storefront, at no cost, enabling users to access thousands of new buyers and real-time market analytics. By bringing the chemical buying process online, ChemDirect also says it is helping users avoid the long, complex sales cycles and delivery times commonly associated with traditional sourcing.
Click to EnlargeSource: ChemDirect.Along with saving costs, ChemDirect also says that purchasing ingredients and chemicals directly enables BPC brands to decrease the carbon footprint of products.
“Traditionally, raw materials have several touchpoints as they are shipped from distributor to distributor, whereas with ChemDirect, buyers receive products directly from manufacturers,” says Tyler Ellison, founder and CEO. “Traditional chemical procurement was long overdue for reinvention, and ChemDirect is committed to driving this change.”
With its new website, ChemDirect hopes to offer B2B functionality with a B2C experience that reflects both the technical and non-technical users who navigate the marketplace, as well as simplifying the entire procurement process. “Our new website offers buyers one-stop shopping with transparent access to hundreds of thousands of chemicals shipped directly from vetted manufacturers, enabling faster delivery speeds and significant savings,” adds Ellison.
From a sales perspective, the chemical marketplace is centering its efforts on providing a digital sales and marketing solution with real-time market analytics to enable suppliers to spur sales, grow markets and develop their brand presence. In launching ChemDirect 2.0, the chemical platform’s team wanted to focus on the purchasing experience, account management and supplier storefronts to impact three key areas of e-commerce. Buyers can access marketing materials, accreditation certificates and frequently asked product questions through the new website.
Commenting on how the new marketplace will help service BPC companies, Ellison notes: “As a two-sided marketplace, we have been adding value to both demand creation and supply sourcing. Our model is predicated on being the digital arm of chemical manufacturers with an incredibly short digital supply chain that averages a fast 3.5 days order to fulfillment. In addition, we believe that beauty and personal care companies value the ability to shop and discover in an environment with many options and transparent pricing.”
New generation, new expectations
Sharing how the new website will change the way BPC brands use the marketplace, Ellison outlines: “For suppliers to beauty and personal care brands, a marketplace provides tremendous customer reach and access globally. So, brands need to think through strategies to maximize sales with multiple demographics shopping their products and brands. In addition, beauty and personal care brands will also receive tremendous demand and buyer insights that a marketplace can provide, thus informing their brand strategies.”
ChemDirect's point-click-buy nature provides teams with the ability to streamline their procurement process by purchasing small quantities of products for testing and agile development purposes. Members of BPC teams can collaborate to build ‘saved product lists’.
“We have seen teams build lists around formulations, products, experiments, or any purchasing process within a team,” explains Ellison. “This collaborative approach to procurement brings in procurement/purchasing departments with formulation experts to create a streamlined workflow.” Once BPC brands have created a list of products they need to purchase on a regular basis, brands are able to reorder products from multiple suppliers quickly.
Talking about brands' key consumer demands when it comes to the online marketplace, and how it appeals to these, Ellison explains: “As adult Millennials continue to populate management roles, expectations of the buying experience change. This group wants choice, speed, and a ‘B2C’ buying experience. Additionally, end consumers' purchasing decisions, especially in the beauty and personal care space, are influenced by the product's environmental footprint and the quality of ingredients that go into the product.”
Teaming up with McFadyen Digital, a global agency for e-commerce marketplace strategy and implementation, ChemDirect focused on the overall user experience to ensure both buyers and suppliers could utilize the digital technology and ordering system effectively and efficiently. Several investors back ChemDirect, including TitletownTech, a venture partnership between Microsoft and the Green Bay Packers.
By Natasha Spencer-Jolliffe, BPC Insights Senior Journalist
