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What
is CMS?
Paying less for chemicals while getting more service....
The chemical service model delivers results by aligning the incentives
of chemical suppliers and their customers. The supplier's profitability
is independent of the volume of chemicals sold. In other words,
the suppliers no longer get paid based on how well they can sell,
but how well they can manage. This is accomplished by basing
supplier compensation on performance-based metrics and fees, not
chemical sales.
Chemical management
begins with procurement and spans the activities associated with
the use and disposal of the chemical. At each stage, a company
incurs costs of labor, materials, equipment, and the more elusive
costs of space and capital, all to support the management of the
chemicals.
Chemical management services (CMS) are a range of chemical management
activities that are contracted to a chemical service provider,
or Tier 1 supplier. A chemical service provider may be a chemical
supplier, waste hauler, or environmental engineering firm that
offers a range of services to manage your company's chemicals.
They may purchase and deliver chemicals, maintain the inventory,
and track MSDS's, implement process efficiency improvement, collect
data for environmental monitoring and reporting, and manage waste
collection and disposal operations.
The CMS Forum defines chemical management services as:
A strategic, long-term relationship in which a customer
contracts with a service provider to supply and manage the customer's
chemicals and related services. Under a CMS contract, the provider's
compensation is tied primarily to quantity and quality of services
delivered, not chemical volume. CMS goes beyond invoicing and
delivering product to optimizing processes, continuously reducing
chemical lifecycle costs and risk, and reducing environmental
impact.
These chemical services are often performed more effectively
and at a lower cost than companies can do by themselves.
The manufacturer gains a partner in its efforts to manage chemicals
more efficiently; the supplier becomes an integral part of the
business by providing a differentiated, value-added service. If
you think your company is interested in chemical services, click
here to see the benefits
for Manufacturers.
For more information on chemical services, please visit the
Chemical
Strategies Partnership web page or contact us at 415-421-3405.
If you would like to learn more about the CMS Forum, click
here to learn more about our goals and activities.
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