Digital approaches in Chemical Industry for Contractor management

Digital approaches in Chemical Industry for Contractor management

Chemical industry contributes nearly $5.7 trillion and makes for 7% of the world GDP. It supports to the tune of 120 million jobs worldwide and due to its reach every dollar generated by chemical industries generates $4.20 elsewhere in the world[1].

Chemical industry can be broadly classified by the produce or chemicals it manufactures, such as[2]:

  • Base chemicals (petrochemicals and derivatives, basic inorganics and polymers) usually produced in large volumes.
  • Specialty chemicals (active ingredients and co-formulants for the pharmaceuticals industry and plant protection, auxiliaries for industrial processes, paints & inks, biocides, and dyes and pigments) usually produced in lower volumes; and
  • Consumer chemicals (soaps and detergents, perfumes and cosmetics).

CAPEX based project and project management, on which the foundations of chemical industries is laid – crucially rely upon the EPC (Engineering-Procurement-Construction), which implies that contractor and sub-contractor network is responsible to deliver turnkey services.

Partnering approaches, well-networked supply chain networks and alliances built across trust and human capital are the key drivers in such an intensive domain.

Therefore, a digitized platform that can provide coherence, communication and coordination between the organization, its contractors and associated partners becomes pivotal.

Contractor management software can alleviate safety management and bring the contract workforce closer to the process safety driven approaches seen within the plant. It also provides vigilance and monitoring function to the designated personnel in the organization, ensuring transparency and accountability.

Here are some of the direct benefits delivers by a contractor management software within the chemical industry:

  • Provides umbrella HSE policy implementation and sustainable enforcement
    cover by:

    • Measuring and reporting good practices
    • Flagging and reporting violations and failures
    • Safety inspection cover for vehicles and equipment
    • Comprehensive HSE planning and visibility
    • Hazard reporting with incident management & investigation
  • Defines metric based relationship between organization and contractor-vendor.
  • Uniform coverage of site-project-workplace assets (workforce-mechanized)
    and their up-to-date accessibility.
  • Universal training transparency for becoming a productive, efficient and
    ‘skill-first’ strategic employer (organization).
  • Establishes excellent organizational memory via digital records, proactive
    monitoring mechanisms and visible reporting tools.
  • Manages contract worker and vehicular movement in-out of the site-project-workplace
  • With additional qualification and reporting measures in check.
  • Portal based information management delivers better reporting and visibility
  • Kiosk based interaction promises:
    • Faster response times
    • Accurate and timely information capture
    • Superior coverage for ease of access
    • Model system characteristics, propagates better usage
    • User-friendly with multilingual support

Inefficient, inconsistent and untimely applied policies for contractor management can be costly and fraught with safety violations, even worse incidents that cause serious injuries, fatality and overall harm to the company reputation are the setbacks that modern day organizations face.

Contractor management software can ease, uplift and upgrade performance in several key areas of organization-contractor-vendor based chemical industry network.


  1. The Global Chemical Industry: Catalyzing Growth and Addressing Our World’s Sustainability Challenges, ICCA & Oxford Economics, published March 2019, accessed on 15th Jan 2020
  2. Taken from E-Facts (67), Maintenance and hazardous substances – Maintenance in the chemical industry, European Agency for Safety and Health at Work – EU-OSHA, accessed on 15th Jan 2020

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