Strategic Planning

Value Chain Management in the Chemical Industry: Global by Matthias Kannegiesser

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By Matthias Kannegiesser

Supply chain administration helped businesses to regulate volumes, fulfil buyer call for and optimize expenditures in creation and distribution. particularly, chemical businesses with excessive complexity in construction and distribution used offer chain administration to guide their operations. faced with globalization and lengthening uncooked fabric and revenues cost volatility, optimizing provide chain bills is not any longer enough to make sure the final profitability of the enterprise. worth chain administration takes offer chain administration to the subsequent point through integrating all quantity and cost judgements from revenues to procurement. The ebook offers the worth chain administration inspiration and demonstrates the way it is utilized in an international price chain making plans version for commodities within the chemical undefined. A entire case examine illustrates the consequences of selection making integration, e.g. the impact of uncooked fabric costs or trade charges on optimum revenues, creation, distribution and procurement plans in addition to total corporation profitability.

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Extra info for Value Chain Management in the Chemical Industry: Global Value Chain Planning of Commodities

Sample text

The value management aspect is not covered including purchase and sales prices. Jörns describes Value Chain Management as a superset of the management concepts SCM, Supplier Relationship Management (SRM), Customer Relationship Management (CRM) and Enterprise Management. This perspective reflects a broader scope of VCM compared to SCM without providing an integrated framework (Jörns 2004, pp. 35-36). Practice-oriented articles as from Trombly (2000) formulate the objective of value chain management to be “full and seamless interaction among all members of the chain, resulting in lower inventories, higher customer satisfaction and shorter time to market”.

G. cross-docking centers • sales locations group one or multiple customers to a logical sales locations The value chain network includes the aspect of aggregating multiple customers and suppliers to logical location(s), which is an important aspect in industry value chain networks operating with hundreds and thousands of customers and individual sites. Distribution locations are included in the company-internal value chain network, if distribution volumes and values are under the control and in the books of the company independent if the warehousing and transportation is outsourced to 3PL distribution companies or not.

Industrial production is defined as “the creation of output goods (products) using material and immaterial input goods (production factors) based on technical processing methods” (Günther/Tempelmeier 2003, p. 6). Production is characterized by the transformation of input goods into output goods using resources such as machineries or assets as well as human resources as illustrated in fig. 13 (Günther/Tempelmeier 2003, p. 7). Production working system Human Resources Input products Production = transformation of input materials Output products Machinery Resources Fig.

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