Chemical strategic partnerships

While local dynamics will always remain vital to the profitability of chemical distributors, strategic partnerships with suppliers and customers will play an increasing role in their performance. To ensure substantial value growth, specific key success factors must be fulfilled to enable distributors to leap to the next industry S-curve as partners of the chemical industry and chemical-consuming manufacturers. 

Gradually partnerships were formed between life sciences and fine chemicals industries, the latter having resources to respond to the specific needs in terms of products and technologies. The relationship between life sciences and fine chemicals industries has evolved from a vendor-purchaser approach to a strategic partnership. There has been a much broader sharing of information, be it with respect to cost improvement programs or to commercial outlook for the product(s). Both partners focus their resources on their core competencies. 

Speciality aroma chemicals produced by complex synthesis require chemical understanding, since the process by which the ingredient is produced will be a key driver of the ultimate cost of the ingredient. An organic chemist is able to explore new potential routes of synthesis and understand the implications and value of each step in the process, and will often strike up a relationship with the supplier whereby the chemistry of the relationship brings a strategic partnership to life. 

To tap these opportunities and create future value, chemical distributors have to strive for excellence as strategic business partners by delivering on the traditional local success factors and, building on these, the partnership-specific ones as well. 

---