Title:
Optimization of Chemical Supply Chains for Regulatory Compliance and Sustainability: An SME-Focused Framework for India and the EU

Abstract:

Chemical supply chains are increasingly challenged by strict regulatory requirements—such as the European Union’s REACH and the Globally Harmonized System (GHS)—alongside growing expectations for sustainability and cost efficiency. For small and medium-sized enterprises (SMEs), these dual pressures are particularly acute due to resource constraints and exposure to multi-jurisdictional markets in India and the EU.

Existing supply chain research often treats regulatory compliance and sustainability as separate domains: compliance studies emphasize legal and documentation requirements, while sustainability studies focus on environmental and operational efficiency. This separation limits the development of integrated, practical decision-support approaches for SMEs.

This paper proposes a conceptual framework for optimizing chemical supply chains by integrating regulatory compliance and sustainability objectives. The framework highlights four key dimensions: compliance drivers (REACH, GHS, hazard communication), sustainability drivers (circular economy, carbon reduction), SME constraints (limited resources, expertise), and supply chain decision areas (supplier selection, logistics planning, inventory management).

By analyzing trade-offs and synergies between compliance, sustainability, and efficiency, the framework offers pathways for SMEs to align operations with both regulatory obligations and sustainability goals. This study bridges two fragmented research areas and proposes an integrated agenda for developing scalable, SME-focused tools. The outcomes are intended to guide both academics and practitioners in designing compliant, resilient, and sustainable chemical supply chains.

Keywords: Supply Chain Optimization, Regulatory Compliance, Sustainability, SMEs, REACH, GHS