Chemical Supply Chain
- 1. Increasing Commercial Viability of Your Chemical Supply Chain Making SC Contributions Visible Logichem 2010 Andreas Claussen Director Global SC & Information Management, BASF Intermediates
- 2. Operating Division Intermediates Key Characteristics of BASF Intermediates Butanediol Polyalcohols Acids & Specialty Amines & Derivatives & Specialties Intermediates 1.9 bn Sales to 3rd Parties in 2009 > 600 product species 2.5 million t/a 3.000 customers serving a broad variety of industries like Plastics Agro Construction Pharma Gas Textile Textile Treatment Chemicals 06.04.2010 logichem 2010, Düsseldorf 2
- 3. Operating Division Intermediates Increasing the Commercial Viability of Your Chemical Supply Chain Key Topics Fitting Your Supply Chain into Commercial Objectives Aligning Your SC Strategy with Business Needs Fostering Commercial Orientation in Your Team KPIs to Drive Commercial Performance => Making SC-Contributions to Business Success Visible 06.04.2010 logichem 2010, Düsseldorf 3
- 4. Operating Division Intermediates Commercial Viability in all Main Processes SC-Model according to SCOR Plan Make Deliver Source Make Deliver Source Make Return Return Your Suppliers Your Business Your Customers => Generating Economic Value 06.04.2010 logichem 2010, Düsseldorf 4
- 5. Operating Division Intermediates Fitting SCM into Commercial Objectives Simplified Value Tree Delivery Capability Sales Delivery Reliability Non Conformances CM1 Order Pattern, Lead Time SC Influence - Variable Packaging, Labeling Costs EBIT Production Site, Plant Production Campaigns Freight Costs € - Fixed Costs Infrastructure Average IT-Tools & Costs Fixed Cost of Cap. + Assets Container Fleet - Capital x Costs Inventory, Structure Operating Inventory Assets Demand F’cast, Volatility How to actively shape the Supply Chain Set-up? 06.04.2010 logichem 2010, Düsseldorf 5
- 6. Operating Division Intermediates Aligning SC Strategy with Business Needs Differentiation Innovation Collaboration Constraints => SC-Design according to Business Model 06.04.2010 logichem 2010, Düsseldorf 6
- 7. Operating Division Intermediates Example for active Supply Chain Design Supply Chain Optimization Starting Point Payload Payload Payload - X Payload + X Payload + X Final Design Improvements Results Freight Costs Logistics Costs => €/t * 0.5 Infrastructure Same assets => Volume * 2 Order Process Additional Biz => CM1 * 3 06.04.2010 logichem 2010, Düsseldorf 7
- 8. Operating Division Intermediates Fostering Commercial Orientation in Your SC-Team Communi- Contribution cation Commercial What helps us? Spirit What hinders us? Many Opportunities No P&L for SCM Tangible Examples „It‘s my job anyway“ Recognition Commercial Thinking Evaluation Difficult => It’s more than savings! 06.04.2010 logichem 2010, Düsseldorf 8
- 9. Operating Division Intermediates Commercial Viability of Your Chemical Supply Chain Summary Making Your SC-Contribution Visible K PIs Understand your Business Model Needs & Limits # Translate your SC-KPIs into Monetary Value +# % Evaluate Supply Chain Contribution to Biz Success -# % % # %+ # - Assess your team‘s Specific Share (not shy, not bold) %+ % Agree share with Other Contributing Functions Collect examples in a Log-file for Communication Use €-Contribution Target to focus team’s effort 06.04.2010 Do Good… and Talk About It !! logichem 2010, Düsseldorf € 9
- 10. Operating Division Intermediates Increasing the Commercial Viability of Your Chemical Supply Chain Key Topics Fitting Your Supply Chain into Commercial Objectives Aligning Your SC Strategy with Business Needs Fostering Commercial Orientation in Your Team KPIs to Drive Commercial Performance => Making SC-Contributions to Business Success Visible 06.04.2010 logichem 2010, Düsseldorf 10
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