Supply Chain Requirements in a VUCA world - volatility, uncertainty, complexity, ambiguity -

Transcription

1 Supply Chain Requirements in a VUCA world - volatility, uncertainty, complexity, ambiguity - Robert Blackburn President Information Services & Supply Chain Operations

2 We create chemistry for a sustainable future Positioning Performance Perspective Geismar, USA Freeport, USA Ludwigshafen, Germany Antwerp, Belgium Nanjing, China Kuantan, Malaysia Verbund site The #1 chemical company 72.1 billion sales, 6.6 billion EBIT bsi in 2012* #1-3 in >75% of businesses, present in >200 countries 6 integrated Verbund sites, production in 60 countries 10 years of strong sales and earnings growth 16.5% average annual total shareholder return** 16% average annual dividend increase, >3% yield in every single year*** Chemistry as an enabler BASF has superior growth opportunities: sustainable innovations Investments emerging markets Ambitious financial targets * Restated numbers, reflecting IFRS 10/11 changes ** August 2003 July 2013 *** for

3 Segment structure of BASF group Chemicals Performance Products Functional Functional Materials && Solutions Solutions Agricultural Solutions Oil & Gas Petrochemicals Monomers Intermediates Dispersions & Pigments Care Chemicals Nutrition & Health Paper Chemicals Performance Chemicals Catalysts Construction Chemicals Coatings Performance Materials Crop Protection Oil & Gas 3

4 Our strategic principles We add value as one company. We drive sustainable solutions. We innovate to make our customers more successful. We form the best team. 4

5 Portfolio development Moving downstream towards customer industries Classical Chemicals Customized Products Functionalized Materials & Solutions 2001 in % of sales** Chemical Industry ~ 50% First customer industries* ~ 50% 2010 in % of sales** ~ 40% ~ 60% 2020 in % of sales** ~ 30% ~ 70% * Agriculture, Construction, Consumer Goods, Health & Nutrition, Electronics, Energy & Resources, Transportation ** Sales excluding Oil & Gas. Targets were published on November 29,

6 Growth with increasing share from emerging markets Developed markets* Emerging markets 2001 in % of sales ( 28 bn**) ~ 78% ~ 22% 2010 in % of sales ( 53bn**) ~ 66% ~ 34% 2020 in % of sales** ~55% ~ 45% *BASF definition: Developed markets include EU15, Norway, Switzerland, North America, Japan, Australia, New Zealand ** Sales excluding Oil & Gas 6

7 BASF Group Information Services & Supply Chain Operations Restructured organization effective July 1, 2013 Employees (as of June 28, 2013): ~ 13,000 Supporting BASF Group strategy as fully globally integrated IT, Supply Chain and Logistics Operations Unit Delighting our customers through ontime delivery of our products supported by state of the art information technology On time every time! 7

8 Simplicity in operating model builds the foundation for excellence in execution Customers One face to the customers GS Strategy Business Relationship Management 1 Develop services Operate services Divisional Support Interface to internal and external service providers Capture business needs and translate into requirements Clear separation of business requirements capturing, strategy, development and ongoing operations Empowers leaders and employees to take entrepreneurial action Our new GS operating model defines the way we work and builds the foundation for the GS vision Internal and external service providers 1) including all Information Managers which are functionally managed by Information Services & Supply Chain Operations 8

9 The chemicals industry experiences significant changes to known patterns and also to traditional growth believes Market trends in chemicals have impact on chemical supply chains Chemicals flow patterns change with regard to volume and direction Trend for towards more specialty chemicals will drive differentiation and complexity in supply chains Wild card regions will make rate of volume growth harder to predict Intensified competition due to new capacity additions drive volatility Growing transportation distances multiply effects of volatile volume development Already constraint capacity on certain routes and regions will put supply chain performance at risk Source: A.T. Kearny study 9

10 Effectiveness and customer orientation at competitive costs is the key differentiator for successful Supply Chains Differentiated services and quality Enhanced alignment and transparency Competitive cost and increased efficiency New and innovative services Increased effectiveness and speed Closer cooperation with our customers 10

11 State-of-the art technologies help Supply Chains to become more effective and efficient Track & Trace Visibility Tools Business Analytics: Statistical Decision Tools Technologies enabling effective and efficient Supply Chains Process automation and collaboration 11

12 Increasing importance of Supply Chain: What are the requirements of BASF? BASF evaluation competency BASF safety requirements Strategic Dialogue / conceptual exchange BASF Partner Joint development of new markets Further Development of Good Practices 12

13 Which questions do you have? 13

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