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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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