There is a lot to take into account in logistics when the product is chemical and the market is highly seasonal. Therefore, we worked intensively with the distribution and storage of one of the many chemical products that H. Daugaard handles for BASF: Balaya.

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Joint effort behind rapid launch

A good example of the flexibility and mutual understanding that characterizes the collaboration between BASF and H. Daugaard came in the spring of 2021. BASF's new product Balaya was eagerly awaited in the agricultural sector, and H. Daugaard's logistics center in Vamdrup had everything in place to get the products out to farmers in Denmark.

Balaya is a product for the control of septoria fungi in agricultural wheat production. To ensure the best yield, it is important to control the fungi at the right time during the growing season. The product has been tested in practice and proven to be very effective.

There was just one “but”: Distribution could not be initiated until the authorities had given their final green light. If the products should fail to reach their end-users during early spring, it would have enormous cost consequences for BASF.

“We had no indication of when to expect the approval. We only knew that it would be in March. And if we did not distribute Balaya in time, our customers would be forced to buy from our competition”

- says Luisa Bülow Boje Ferrentino, Nordic Supply Chain Manager at BASF Agricultural Solutions.

On the certainty that the official approval was expected at some point, BASF had decided to produce a large volume of its new fungicide. It was now being transported from the factory in Spain to the warehouse hotel of H. Daugaard in Vamdrup.

For chemical products, it is extremely important that information on the special product labels is correct. For this reason, labels cannot be printed until the authorities have given their final approval. In Vamdrup, staff was preparing to apply new labels to several thousand, white 5-liter containers. Extra staff was ready to take over in shifts once the approval arrived. All that was left to do was wait.

Product knowledge and a dedicated contact person ensure quality logistics

The cooperation between BASF and H. Daugaard goes back to the beginning of the 2000s. The chemical company BASF had sold off its own logistics business but maintained its ambition to occupy a leading position on the Nordic markets with its Agricultural Solutions division.

As a result, the chemical facilities at H. Daugaard's warehouse in Vamdrup were expanded. Today, we handle around 200 item numbers from BASF. In addition, there are chemicals from a number of other customers.

"H. Daugaard has followed our development, so they have facilitated our growth instead of limiting it"

- says Luisa Bülow Boje Ferrentino.

She underlines the importance of H. Daugaard’s familiarity with BASF products and the special requirements that follow. In this way, time spent explaining and advising can be kept to a minimum. And then she emphasizes the importance of having a dedicated contact person at H. Daugaard, just as several of our other large logistics customers do.

H. Daugaard has always been competitive when we have renegotiated contracts. We might be able to get it slightly cheaper from a competitor, but then we wouldn't get the same service," she says.

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Storage and distribution of chemicals requires knowledge

Some of the special issues when handling chemicals are the many requirements that follow. The authorities and manufacturers are extremely vigilant about the risks involved in the handling of chemicals. Warehouses and trucks must be suitable for the purpose, and all drivers receive special training.

Special demands are also made to warehouse workers and drivers picking and handling goods in the warehouse as well as all products being labeled with batch numbers so that they may be tracked all the way from production to end-user. Many chemicals must also be kept at temperatures above freezing. For this reason, the weather report is a much-used tool for chemical transportation. If there is a risk of frost, the chemicals are transported to customers in thermo trailers.

Basically, it is all about precision, says Jan Nielsen, department head of the 25,000 sq.m. large warehouse hotel of H. Daugaard in Vamdrup.

He explains that the time frame for delivery of chemical products to end-user in agriculture is very limited. It is unacceptable if a farmer has the wrong product on the one day when conditions are ideal for crop spraying.

"We must be extremely precise with our deliveries. There is absolutely no margin for error", says Jan Nielsen.