Increasing Commercial Viability of Your Chemical Supply Chain Making SC Contributions Visible By Andreas Claussen LogiChem 2011 will be the event's tenth anniversary and an opportunity for the most senior chemical supply chain & global logistics directors from the European chemicals community to come together once again share experiences, make new contacts and benchmark the latest chemical supply chain initiatives. Not only will LogiChem 2011 be a chance for the chemical industry to reminisce about the last ten years but an opportunity to shape the next decade. To celebrate a decade of LogiChem, there will be an exciting three day programme filled with networking opportunities in our new location, Antwerp.

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
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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
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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
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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?
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6. Operating Division Intermediates
Aligning SC Strategy with Business Needs
Differentiation
Innovation
Collaboration
Constraints
=> SC-Design according to Business Model
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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
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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!
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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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