A New Era in Chemical Supply Chains: Agility and Partnership as Keys to Success

Date: August 4, 2025
Source: Anhui Royal Chemical Co., Ltd.

The global chemical industry is at an unprecedented crossroads. According to the latest Top 100 Chemical Distributors report by leading industry media outlet ICIS, a "more volatile world" has become the "new normal" the industry must navigate. The European Association of Chemical Distributors (Fecc) points out that tariffs have evolved from mere trade defense tools into instruments of industrial policy sanctions, significantly increasing global trade uncertainty. A recent survey by Gartner also highlights this shift, with 42% of procurement leaders identifying supply disruption as the greatest threat to future success, and geopolitical issues—including tariffs and regulatory changes—ranked as the third biggest risk. In such a landscape, traditional, rigid sourcing models are facing intense pressure.

Responsiveness Over Forecasting

As market conditions can now change dramatically "from morning to afternoon," Tricon Energy CEO Ignacio Torras noted in an interview with ICIS："In the world of distribution and trading, one of the key elements has been the ability to predict...But today, the biggest value is not the ability to predict but the ability to react."

This underscores a fundamental role shift for chemical distributors—from passive intermediaries to proactive shock absorbers and problem solvers in the supply chain. Customers no longer just seek price quotes; they demand partners who can foresee risks, manage volatility, and swiftly provide alternatives during crises. As emphasized by senior executives at Brenntag, the ability to combine regionalized supply chains with global sourcing is now crucial for maintaining supply continuity.

Royalchem's Solution: Built-In Agility and Partnership

Since our founding in 2008, Royalchem has embraced agility and partnership as core pillars of our development. We deeply understand that for global leaders like BASF and Evonik, supply chain stability and reliability are the lifelines of international operations.

Our hybrid "Production + Trading" model provides a resilient solution. In addition to our established global supply network, we also operate manufacturing bases in Nanxiong, Guangdong and Yulin, Shanxi, enabling us to:

• Simplify your procurement process: From sampling and order consolidation to full-service international logistics, we help you focus on your core business.

• Mitigate risk with speed: When international shipping is disrupted by tariffs or geopolitical factors, we can quickly provide a Plan B to avoid supply interruptions.

Sustainability

We also recognize that for leading global enterprises, sustainability is no longer a "nice-to-have" — it's a non-negotiable. According to the Sustainable Procurement Barometer by Stanford Graduate School of Business and EcoVadis, 69% of companies now consider sustainability performance when selecting or renewing suppliers, up from 51% in 2019. Additionally, 63% of executives say achieving sustainability goals is "very important." ICIS reports further affirm that transparency—especially in carbon footprint data—is essential for sustainable progress.

This aligns perfectly with Royalchem's vision. In 2025, we released our first ESG Report, completed our initial carbon footprint assessment, and began active collaboration with platforms like EcoVadis to provide clear and verifiable sustainability data to our partners. We believe that being a responsible, transparent, and compliant supplier is the foundation of long-term trust on the path to building a global ESG chemical brand.

In a world of mounting uncertainty, traditional sourcing models are being redefined. Royalchem offers a forward-thinking approach, combining agility and partnership with integrated production and trade capabilities. What we deliver is not just quality chemicals—but confidence and certainty, from China to the world.

Sources & References

1. ICIS Top 100 Chemical Distributors 2025 - "2025 ICIS Top 100 Chemical Distributors Ranking Revealed," ICIS Press Release, June 16, 2025

2. Gartner Supply Chain Risk Survey - "Gartner Survey Shows Supply Disruption is Top Risk to Procurement's Future Success," Gartner Press Release, October 2024

3. EcoVadis Sustainable Procurement Barometer 2021 - Conducted with Stanford Graduate School of Business Value Chain Innovation Initiative, July 2021