The key role of supply chain efficiency and channel to market strategy in future success Steven Holland

Transcription

1 to market strategy in future success Steven Holland Chief Executive Officer Brenntag Group

2 Global market leader Sales over $13 billion Operating in 72 countries Volumes over 12 million tonnes Connecting chemical manufacturers to over 175,000 customers Distributing a portfolio of over 10,000 industrial and specialty chemicals

3 Industry trends and growth drivers within the distributor sector Supply chain efficiency, value added services and market size by region Relevance and importance to future success

4 Industry trends and growth drivers within the distributor sector Manufacturers and end use customers seek to reduce complexity within the supply chain End users consolidating less than full truck load deliveries with fewer distributors both locally and worldwide to reduce total cost of ownership Manufactures developing further downstream added value speciality chemical capability look to the distributor sector to increase market access and market penetration

5 Industry trends and growth drivers Total chemical demand non-distribution relevant products Distribution relevant demand 1) 20 40% of customer spend <EUR 100k per annum Third party chemical distribution BCG Market Report (July 2013) 1) Excluding non-distribution relevant products like ethylene 5

6 Industry trends and growth drivers within the distributor sector Supply chain efficiency, value added services and market size by region Relevance and importance to future success

7 Supply chain efficiency and value added services Chemical distributor provides a function to both producer and the end-user by reducing complexity and cost in the supply chain

8 Third party chemical distributors can add significant value

9 Value added services from the distributor sector

10 Third party chemical distribution estimated market size and market shares Still highly fragmented market with more than 10,000 chemical distributors globally As per end 2012: BCG Market Report (July 2013) 1) Global includes not only the four regions shown above, but also RoW 2) Former Ashland Distribution. 10

11 Industry trends and growth drivers within the distributor sector Supply chain efficiency, value added services and market size by region Relevance and importance to future success

12 Relevance and importance to future success Successful marketing of existing and future products requires an integrated distribution strategy to address global, regional and local market access Capture of business intelligence is creating an increasingly transparent market place and an invaluable data source worldwide

13 Relevance and importance to future success With the right partners significant business, product and market intelligence can be shared to refine sales strategy and product development Finally, the correct selection of distribution partner will support QSHE, compliance and responsible care

14 A clearly defined distributor policy and strategy will deliver future long term and sustainable growth Key elements Market access to hundreds of thousands of end users Supply chain efficiency, value added services Business and market intelligence Enhanced QSHE and overall compliance to international standards

15 Thank You For Your Interest and Attention Steven Holland Chief Executive Officer Brenntag Group