Chemical Inventory Management – Why Is It So Important?

Listed here are 5 reasons stating the importance of chemical inventory management.
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Effective chemical inventory management is an absolute must for any organization that uses chemicals as a part of its day-to-day operations. Not only is it a mandatory requirement by OSHA but also an essential component for hazard management. This blog elucidates the importance of chemical inventory management.

To begin with, let’s understand what exactly is chemical inventory management?
Simply put, chemical inventory management is the process of organizing and tracking chemicals at all stages – right from their procurement, storage and usage to disposal.

So why is it so important?
Listed below are 5 reasons stating the importance of chemical inventory management –

1. Safety At Workplace:
   First and foremost, it plays a significant role in ensuring safety at workplace. Some of the chemicals can be highly hazardous or toxic in nature and if handled inattentively, can lead to accidents, explosions, health complications or some serious injuries at work. Meticulous chemical inventory management enables organizations to take active steps to minimize such risks to a great extent.
2. Legal Compliance:
   Next, practising thorough chemical inventory management is also a mandatory requirement under certain regulations. For example, OSHA’s Hazard Communication Standard (HCS) requires organizations that use hazardous chemicals to evaluate the hazards of the chemicals they produce or import, and prepare labels and safety data sheets to convey the hazard information to their downstream customers. In addition to that, it asks them to train their employees for appropriate handling and usage of these chemicals.
   
3. Cost-Effectiveness:
   As mentioned earlier, chemical inventory management involves maintaining records and tracking inventory at regular intervals. By analyzing this data, one can understand their exact inventory requirement and make informed decisions for procurement of chemicals in the future. In essence, it facilitates organizations to operate efficiently by avoiding ordering in excess which can lead to a potential loss to the business.
4. Promotes Sustainability:
   Thereafter, as a result of optimum utilization of resources, it helps in reducing wastage thereby promoting sustainability! In current times, consumers and investors alike take into account a company’s commitment to sustainability before associating with it. Hence, as an added advantage, it helps organizations nurture their relationship with their stakeholders and gain a competitive advantage.

   To learn about the top 4 benefits of carbon management, click here.

5. Emergency Response:
   Last but not the least, it is a key component of an emergency response plan (ERP). An emergency reponse plan is a set of written procedures for dealing with emergencies that prioritizes life safety, minimizes the impact of the event and facilitates recovery from the event. Since chemical inventory management involves maintaining complete information regarding the hazardous chemicals like their properties, quantity in stock and where they are located, it proves to be of great help while taking crucial decisions during an emergency.

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