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Two Powerful Tools to Increase Competitive Advantage in the Chemical Industry

Today’s chemical industry is becoming more and more service oriented, which is why chemical companies are having to challenge their traditional logistics strategies and create new business models. For many chemical businesses, future competitive success will be determined not so much by the product itself, but by the quality of logistics services offered in connection with that product. In this environment, more strategic and responsive logistics solutions become not just a “nice to have” but a matter of survival. 

Based on case-study analyses and interviews with representatives from chemical company Evonik Industries, this paper examines current and future challenges in the chemical industry and distils two powerful tools for chemical companies – two ways in which strategic supply chain management can turn challenges into opportunities, and create a competitive advantage.