How to Save Money When Buying High Purity Chemicals

For most of the cleaning industry’s history, chemical dispensing and control was scattershot at best. Building service contractors had to deal with complex dilution ratios, big jugs of highly concentrated chemicals, and janitors mixing chemicals using guesswork, also known as the “glug-glug” method.

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This was, and is, a problem for may reasons — too high a concentration and the chemical can damage a surface, cause health and safety issues, and waste money. If the janitor doesn’t use enough concentrate, it won’t be effective. In both cases, workers will likely need to re-do the task, generating lost productivity.

“With chemical proportioners, there is no more guessing when it comes to diluting concentrated chemicals. And without that guesswork, cleaning professionals should see a cost savings on their chemical purchases. For typical users, bulk chemical savings average 15 percent, but for large facilities, savings could go as high as 40 percent.”

“Since chemicals will always be diluted at the correct ratio, chemical waste will be reduced. Units will also eliminate improper mixing, which can either be ineffective or damaging to surfaces, causing more work and additional product. Also, chemical proportioners are often free with the chemical purchases, so there is no upfront cost that could offset savings.”

“By knowing the proper dilutions, end users will know how much product is going to be used in a given amount of time, allowing purchasers to lock in costs for their budgets.”

“If you’re still not convinced, start tracking your chemical usage. Look at how much was spent before implementing proportioners and compare it to how much chemical was purchased after the introduction of the dispensing unit. Track costs for six to 12 months. If dispensing correctly, you should see a savings.”

-Dan Welton,
Editor, Contracting Profits Magazine
Resource for Janitorial Contract Professionals

Since the s, when the first chemical proportioners came on the market, BSCs have had a variety of choices for ensuring their cleaning chemicals were diluted, dispensed and used properly. These include closet or wall-based proportioning systems; point of use proportioning systems; pre-moistened towels; and ready-to-use chemicals.

Which devices to use in your business is largely a matter of personal and business preference, says Dave Frank, president of KnowledgeWorx, and founder of the American Institute of Cleaning Science in Highlands Ranch, Colo.

“Common sense and safety must prevail,” Frank says. “Control mechanisms as a whole have been one of the top five significant cleaning innovations in recent history. Control helps with quality, safety, cost-effectiveness, training and communication.”

Concentrates

One common method for ensuring bulk concentrates are diluted properly are closet- or wall-based proportioning systems. These systems mount on a wall or table in a janitor’s closet or supply room, and are connected to a water supply. Users load concentrate into the machine (often in a bag or other container that ensures janitors don’t have to touch the concentrate), and the machine dispenses the concentrate, diluted with water, into a bottle or bucket.

“Concentrates are cheaper; you’re not buying water,” says Rick VanderKoy, president of Secure Clean Building Services Inc. in Marengo, Ill. “You can avoid problems with [closet-based] devices; the user doesn’t have the ability to override the dispense, so it’ll all be diluted properly.”

Another method of using concentrates is a point-of-use dilution system. These include bottles with built-in dilution mechanisms; pre-measured packets that are mixed with water in specially sized bottles or buckets; and liquid- or powder-filled packets that dissolve right into the water, wrapper and all. Some systems even include hoses that attach to standard sinks, so the janitor doesn’t need to return to the closet to refill a bottle.

“I see closet-based solution centers, as well as point-of-use mixing devices, being used well into the future,” Frank says. “Chemical control has been around since the s; since then, most daily-use chemicals are dispensed through chemical systems. There aren’t a lot of people using the glug-glug method anymore.”

With most of these methods, concentrates are mixed with water and dispensed in a secondary container, such as a spray bottle, which must be properly labeled according to guidelines from the U.S. Occupational Safety and Health Administration. Labels must include product name, usage guidelines and safety concerns, as well as other information.

“Users are looking more at the [secondary] bottles,” Frank says. “They’re seeking silk-screened labels, that are both color and number-coded. Many people in the cleaning industry can’t read, or can’t understand English, so you need a common, non-lingual communication device.”

Besides cost, another reason BSCs use concentrates is environmental. They want to cut down on packaging, and the fuel involved in shipping water; also, cleaners working in buildings that are involved with the U.S. Green Building Council’s Leadership in Energy and Environmental Design program must use concentrates in order to earn points toward certification, adds Frank.

Ready-To-Use

Even though chemical concentrates are fast becoming the norm in most cleaning operations, ready-to-use (RTU) spray bottles and aerosol cans still are in common use, especially for specialty products which don’t need to be used in large quantities, and for odor-control applications.

For instance, Rich Short, owner of North Shore Office Maintenance in Deerfield, Ill., has a very small company, and he finds RTU chemicals fit his needs. What they cost in added price, they make up for in convenience.

“I’ve never really gotten into the concentrate — I think ready-to-use works out well,” says Short. “I think the chemicals and dilution get too complicated otherwise.”

Although he uses a wall-mounted proportioner for most chemicals, VanderKoy also uses ready-to-use bowl cleaners and acids in his small operation due to their simplicity and efficacy.

“We try to use stuff that works well, for one thing – we try to give people the tools to do the job,” he explains. “We started off doing the cleaning ourselves and we know how frustrating things can be if they don’t work.”

Another RTU method BSCs use to control their chemicals is pre-moistened towels. These paper or cloth towels are shipped with glass cleaner, furniture polish, disinfectant or other chemicals impregnated right into the towel. Users then wipe the towel directly on the surface, and dispose of the towel when they’re finished.

Most BSCs agree that pre-moistened towels are useful for specialty applications only, because they’re generally quite expensive compared to liquid chemicals, especially concentrates.

Even though Short uses disposable paper towels in medical facilities to avoid cross-contamination, he avoids disposables in general, because they become too expensive.

Regardless of the methods used to keep chemicals under control, training and hiring good people is vital to ensure the chemicals are used correctly and aren’t pilfered or wasted.

“The only thing we can really do is teach janitors how to use or apply chemicals properly, and hope you’re training as well as you can so they do use it properly when they’re on the job,” Short says.

The company is the world’s best High Purity Chemicals supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.

The chemical industry faces challenges beyond other manufacturers: our work is hazardous by its nature, so safety is our priority. There are innumerate regulations for us to abide by and stay up to date with.

And we have exacting standards for our supply chain.

It’s still possible to save money within these restrictions. We’ll look at some methods below, split between raw materials and indirect goods.

Raw Materials (Direct Goods)

The lynchpin of our processes and delivery to our customers. One impurity can ruin a whole batch.

Understandably, we won’t switch suppliers on a whim. But that doesn’t mean you can’t get better value.

Secondary Sources

It can be hard to find and approve secondary sources for raw materials, but it’s worth the effort. It’s near impossible to get accurate pricing without approving a supplier for use. Price indices can’t give you an accurate picture of what it costs to supply to your site specifically, though they can be a useful guide. Similarly, suppliers are generally protective of their commercial information and other times they will price low to get initial business interest.

One of the benefits of approving a secondary source is that the chemical industry is here for the long term, and even if your new supplier isn’t the cheapest now, there’s no telling what will happen in the coming years. When the competitive landscape changes, you'll be ready.

If you also find a source from a different manufacturer (not just distributor), you're helping reduce your risk profile and making your supply chain more resilient to disruptions.

Analyse Additional Costs

There are always costs beyond the price tag.

One of the biggest things that can save you money is to review how you’re packaging and transporting raw materials. It may sound like the decision of the supplier, but often buying organisations specify things that puts up the price.

For example, are you transporting water or air? Materials should be ordered at the highest viable concentration for your process (and within legal restrictions). Transporting something that’s more diluted means you’re likely paying for water (or similar) to be moved around the country. An example is caustic being ordered at lower concentrations than 47%.

Another factor to look at in your organisation is how quickly materials are being offloading and whether there is any demurrage charged. Offloading bulk materials is time-consuming, but there could be ways to speed it up. By speaking with your supplier you may find that other customers are able to offload faster, or give them a wider window for delivery.

For non-bulk materials there’s a huge range of packaging options. Some of these are chosen for safety reasons and sometimes they’re chosen because ‘we always receive it like that.’ Having non-standard packaging can increase your prices and alter your lead times.

Where possible, speak to your distributors about how most customers take the material and try to receive the goods in the simplest way possible.

Indirect Costs

Indirect costs include anything that doesn’t go into your products, so they’re usually PPE, IT and engineering equipment.

Most industries can easily change their indirect costs, but in the chemical industry we have to consider safety and quality above price.

Consolidate Spend

Even without switching products, sometimes there are opportunities to consolidate spend. This means grouping lots of similar items together to get a price list including all of them. Although you don’t have to commit to an exact quantity of goods to order, the supplier will reward your custom with lower prices because they are becoming the preferred supplier for all items.

It’s possible to consolidate spend and maintain the same specifications for products, so your end users will be happy. For example, you could move all your valve suppliers to one distributor, potentially lowering their prices without changing the valve specification.

Reduce Transaction Costs

Another great way to reduce costs is to look beyond just the price tag. Every time an organisation orders something, it takes time and money. The touch points with the supplier such as asking for a quote, reviewing a specification, placing an order, receiving the goods and paying an invoice are all part of the transaction cost.

These hidden costs can be reduced and free up employees’ time for more productive tasks.

Transaction costs can be reduced by:

• Vendor Managed Inventory
• eSourcing
• Vending machines
• Consolidated invoices

Fully Utilising Suppliers’ Services

Engineering and MRO suppliers are innovative and are setting themselves apart from the competition by offering ‘free’ services such as condition monitoring.

Against common logic, many suppliers want their customers to spend LESS money with them, because it means their products are lasting longer!

Speaking with key suppliers and listening to their suggestions and capabilities can come up with brilliant ideas for saving money.

Conclusion

It may be harder to save money in the chemical industry, but it’s certainly possible. Think innovatively and work closely with your key suppliers.

With a little bit of extra thought, your supply chain will power your business goals. 

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