How to enable an InCheck Report by following the ZDHC's guidelines

The 2 ways to track chemical inventory

To generate a credible Performance InCheck Report, a supplier can choose between two ways to track its chemical inventory: Delivery and Usage.

Delivery consists of the purchases made by the supplier in the previous month, and the purchased chemicals are assumed to have been used in the production facility for a certain period. 

This type of inventory establishes the transparency of a supplier’s chemical inventory, and it is easier for the supplier to obtain records and start the continuous improvement process.

On the other hand, Usage is defined as the number of chemicals actually used or consumed during the reporting month. 

An InCheck performance report should always reflect the previous month’s consumption levels and can be calculated using the formula: Quantity of usage = (quantity of chemical in stock at the beginning of the month + quantity of chemical delivered in the month) – quantity of chemical in stock at the end of the month.

Using both types of inventory can help a supplier continuously improve its chemical management and achieve desired levels of ZDHC MRSL compliance.

Delivery vs Usage: which is the best?

Compared with Delivery, the Usage-type inventory offers several advantages, including:

• the ability to analyze the root causes of nonconformities in chemicals, such as wastewater, sludge, air and products;
• helps suppliers use load-based calculations to monitor environmental impact, a state-of-the-art method for ensuring sustainability.

To ensure optimal inventory utilization, the amount of utilization should be automatically determined and recorded each month by the supplier’s warehouses or purchasing department. 

This information should then be included in the Gateway Chemical Inventory, which can be easily uploaded to the Approved Solution Provider platform to generate the Performance InCheck.

In addition, it is possible to switch from the Delivery-type inventory to the Usage-type inventory once the systems required to calculate monthly consumption levels have been implemented. 

In summary, Usage-type inventory is a powerful tool for ensuring sustainability in chemical usage, and suppliers can easily switch between inventory types to ensure maximum efficiency and traceability.

Rules for uploading chemical inventory

There are some important rules for uploading chemical inventory to the Approved Solution Provider platform. 

Rule 1: Include all the correct and required information from the CIL.

Although the full CIL is required to meet the requirements of the ZDHC CMS Framework to ensure the safe management of chemicals in the facility, not all information is required for the generation of the Performance InCheck Report. 

The following columns of the ZDHC CIL format must be filled in for inventory upload:

• Chemical product name (in English)
• Name of the formulator (in English)
• The volume (type of use or delivery)
• The unit of measurement (in which the volume is measured).

Rule 2: Include all required chemicals in the inventory upload. 

To get a complete overview of the ZDHC MRSL compliance levels of a supplier’s chemical inventory, it is important to include all chemicals used in the facility. 

However, chemicals not directly applied or used in production processes are not yet recorded on the ZDHC Gateway. Neither are basic chemicals. Therefore, it is currently difficult for a supplier to demonstrate compliance with the ZDHC MRSL for these products. 

Since these chemicals are an important part of most suppliers’ chemical inventory, ZDHC is currently developing a strategy to include them in the scope of ZDHC Gateway.

Rule 3: Verify the correct name of the chemical and chemical formulator in the CIL 

For maximum results, it is important to verify the correct name and spelling of chemicals in a supplier’s chemical inventory before uploading it to the Approved Solution Provider platform. 

This can be done by checking the:

• Invoice
• Label on the chemical container
• Name of the product listed in Section 1 of the SDS (if available)
• Formulator’s name.

Only the name of the Formulator and not the name of the dealer/agent/distributor supplying the product for commercial transactions on behalf of the Formulator should be entered in the inventory format. 

If the information on the SDS and the physical label do not match, the supplier must confirm the correct name of the chemical with the chemical supplier.

How often update the InCheck Performance Report

If you are a supplier who has already started generating Performance InCheck Reports, it is fundamental to know that you should do this once a month. 

Once you have reached a high level of chemical entry into the ZDHC gateway for ZDHC MRSL compliance, the frequency of report generation may be different.

It could be on-demand if you want to align with brand requirements, or once or twice a year, following the Verified InCheck Report exercise and corrective actions completion needed to improve ZDHC MRSL Compliance of the verified inventory.

Remember: keeping your chemical inventory updated and in compliance is an essential step to ensure worker safety and the environment. 

If you need more information or support, we are here to help!