Sector platforms in the chemical industry how do service and logistic providers react
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Sector platforms in the chemical industry How do service and logistic providers react Content Company Profile Bargelink a public marketplace Chemical industry Characteristics E-Business Marketplaces private or public Types of marketplaces Marketplaces and function in order process

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Sector platforms in the chemical industry How do service and logistic providers react

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Sector platforms in the chemical industryHow do service and logistic providers react


Content

  • Company Profile

  • Bargelink a public marketplace

  • Chemical industry

    • Characteristics

    • E-Business

  • Marketplaces private or public

    • Types of marketplaces

    • Marketplaces and function in order process

    • Analyze for Chemical products and logistic services

    • Public or Private

    • Lowering logistic cost - Choices

  • Conclusion

R.R.J. Brouwer; 20 Feb, 2002.


Pakhoed

Van Ommeren (1839)

Vopak today

  • Leading global position in each of its three core businesses

  • Over 24 million m3 of tank storage

  • 75 tank terminals around the world

  • 225 chemical distribution facilities

  • Access to approximately 225 vessels

  • Integral part of global oil & gas and chemical logistics and distribution infrastructure

  • Sales of EUR5.6bn (FYE 2000)* and EBITDA of EUR535m (FYE 2000)*

  • Listed on Euronext

Chemical Distribution

Chemical Logistics

Oil & Gas Logistics

Company Profile

Vopak’s historic development

Blauwhoed (1616)

Pakhuismeesteren (1818)

Ellis & Everard (1848)

1967

1999

2001

  • 75 years of chemical distribution experience

  • 400 years of logistics experience

R.R.J. Brouwer; 20 Feb, 2002.

Note: * Including 12 months Ellis & Everard, acquired in January 2001


Marketplace for Barges on the River Rhine:Bargelink

R.R.J. Brouwer; 20 Feb, 2002.


R.R.J. Brouwer; 20 Feb, 2002.


R.R.J. Brouwer; 20 Feb, 2002.


Das Bargelink-Prinzip

  • Praxisorientierte Prozesse und Datenbänke

  • Einfache Menübedienung

  • Jeder Nutzer bestimmt seine Geschäftspartner

  • Konditionen und Bedingungen für Transporte frei wählbar

  • Kosten (1,25% vom Transportumsatz) nur bei Erfolg

  • Keine Registrierungskosten

  • Hohe Datensicherheit durch SSL-Verschlüsselung

R.R.J. Brouwer; 20 Feb, 2002.


Bargelink lessons learned

  • E-Readiness of market participants has been underestimated, but interest and activity are growing

  • We knew from the start that the mineral oil barging market is too small, so since sep 2001 also open for dry goods

  • Manage your burn rate, listen to your customers

R.R.J. Brouwer; 20 Feb, 2002.


The Chemical industry

R.R.J. Brouwer; 20 Feb, 2002.


Chemical Industry Characteristics

  • Hazardous materials (mainly liquids)

    • Safety, Health and Environmental protection is top priority

    • Responsible Care: Standards for service providers

    • Service provider needs to comply with minimum requirements

  • Hurdle to continuous change of partners

  • Global industry community

    • Many intra company relationships (sales between companies)

  • Strong drive for standardization on non-competitive items

  • Established industry

    • Mainly commodity products

    • Strategic focus on cost reduction (manufacturing & supply chain)

  • Price pressure on service providers

  • But also partnership to take real cost our of supply chain

  • R.R.J. Brouwer; 20 Feb, 2002.


    Chemical Industry & e-Business

    • Adapted late to new technology: 1999

    • Like any other industry boom in 1999/2000,

      publicity around marketplaces focus extra revenue

    • 2001 Back to reality: Marketplaces consolidated by M&A

    • 2002 Lower industry results : Focus on cost decrease

    • Chemical industry immediately realized standardization will be key to success:

      • CIDX developed Chem-e-Standard for XML messages

      • Elemica : Connectivity Hub initiative of 23 large companies

    R.R.J. Brouwer; 20 Feb, 2002.


    Marketplaces

    R.R.J. Brouwer; 20 Feb, 2002.


    Types of Market places

    Buyer

    Buyers

    Bank

    Buyer

    Marketplace

    HUB

    Marketplace

    Seller

    Seller

    Seller

    Logisticprovider

    • Marketplaces fulfill several roles, need to segregate for a meaningful analysis

    R.R.J. Brouwer; 20 Feb, 2002.


    Market places – Function in order process

    Chemical products: Marketplaces (browser)

    2000

    Elemica (XML)

    2001/2002 2H02/2003 2003

    Promotion

    Request price

    quote

    Negotiate price

    Order & Acceptance

    Invoicing

    & payment

    Customer

    feed back

    Delivery

    Request price

    quote

    Negotiate

    price

    Invoicing

    & payment

    Order logistics

    Transport

    The related transport process flow

    R.R.J. Brouwer; 20 Feb, 2002.


    Marketplaces Chemical products

    R.R.J. Brouwer; 20 Feb, 2002.


    Marketplaces Logistic Services

    R.R.J. Brouwer; 20 Feb, 2002.


    R.R.J. Brouwer; 20 Feb, 2002.


    Private or Public

    • Proof of the pudding is in the eating:

      • No public marketplace is profitable yet!

      • Private marketplaces give internal efficiency gain (at least)

    • Need to take functionality into account

      • Find those functions that give benefit to all parties involved

      • How to share these benefits

    • Nightmare: All clients work via different systems

      • Standardization will be key to success

      • Public marketplaces can play a role in standardization development

    R.R.J. Brouwer; 20 Feb, 2002.


    Transportation marketplaces Lowering logistic cost - Choices

    • Spot relationship:

      • Shipper achieves lowest rate, but uncertain of acceptance

      • Transporter fills empty legs, if fit with offers

      • NEED: Very high liquidity and open market, no constraints.

      • Marketplaces can be an efficient approach for RFQ

    • Contract relationship:

      • Partnership allows for guaranteed fulfillment and quality level

      • Take total cost of supply chain into consideration,

      • Fundamentally decrease cost in parts of process

      • NEED: Trust, openness and willing to jointly reduce cost

      • E-Business: Automatic ordering, order track&trace, collaborative planning

    R.R.J. Brouwer; 20 Feb, 2002.


    Conclusion

    • There will probably be a mix of private and public marketplaces in the short term so LSP should be flexible in order acceptance.

    • After initial focus on RFQ/negotiation part of the process, the focus has shifted to order fulfillment and the logistic order process

    • Vopak effort is currently focused on fulfillment part:

      • Transparency: Order track&trace

      • Automation of orders (avoid errors)

      • Planning of order fulfillment (experiment)

    R.R.J. Brouwer; 20 Feb, 2002.


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