Global commodity

Specifically, how can a global commodity value chain within the... 

Developed frameworks are applied to the specific industry problem to monthly plan a global chemical commodity value chain by volumes and values. Sub-objectives are to elaborate characteristics and planning requirements for a global commodity value chain in the chemical industry and to develop, implement and evaluate the respective model. Research question 2 is directed to a real industry case study demonstrating the real existence of formulated requirements, showing the applicability of the developed model in reality and evaluating the model using industry data. 

There is a lack of having an integrated concept of managing volumes and values across the entire value chain. The specialized concepts with focus either on demand and supply decisions or on value analysis have to be combined to an integrated approach. This integrated approach is required to manage a global commodity value chain end-to-end by values and volumes. 

The value chain management framework is used as conceptual basis for developing a global value chain planning model for the specific scope of a global commodity value chain in the chemical industry. 

The considered global commodity value chain is specified applying a value chain typology. The typology is used also to define the work scope and to derive the value chain planning requirements. 

This overview is further detailed and structured in the following subchapter, where the characteristics of a global commodity value chain as well as the model scope is defined. 

Global Commodity Value Chain in the Chemical Industry... 

A global commodity value chain can be characterized by a multiple set of attributes in a typology to formalize the planning problem. Purpose of this subchapter... 

Models in literature with relation to the scope of this work are reflected by the key words in the title planning, global, commodity and chemical industry in the context to value chain management. Given the comprehensive scope of the value chain planning problem, literature analysis is grouped into these four groups ... 

In this study, two research questions have been investigated 1. How volumes and values within the value chain can be managed in an integrated way and, especially, 2. How a global commodity value chain within the chemical industry can be planned by volumes and values. 

The model has been evaluated by means of a global commodity industry case. The evaluation proved the importance of value chain planning to integrate volume and value decisions from sales to procurement exchange rate, sales and raw material price and elasticity scenarios have key influences on total profit and volume planning decisions within the global value chain network. 

Furthermore, the chemical industry stands apart from other commodity industries in that a wide gap separates the top and bottom performers. In November 2004, for example, the top quartile of chemical companies had a market-to-book ratio 3.1 times the bottom quartile s - a far wider spread than that of other asset-heavy industries, such as automotive (1.9), pulp and paper (1.8), and steel (1.6). Companies in those industries operate in more transparent and global commodity markets with fewer strategic options at the corporate level. By contrast, the far more complex chemical markets are fragmented into thousands of submarkets... 

Global Commodity prices, political pressure from other countries Climate changes, particularly of rainfall patterns (e.g. El Nino)... 

There is almost no production of ammonia and methanol in the United States any more, with such countries as Trinidad, Chile, and Saudi Arabia having become key suppliers. With natural gas expected, in the future, to stay in the range of 4-5 per million BTU versus 50-75 cents per million BTU in countries with plentiful gas and less internal use, ammonia and methanol will largely be produced abroad, having become global commodities with substantial quantities imported into the United... 

The essential oil industry is a very small, tightly knit circle of traders, dealers, producers, and consumers, and apart from some notable exceptions, there is a very strong trade ethos. As it is a relatively small industry in terms of global commodities, statistics are not produced and it is by relationships with customers that information becomes available. Much that is on the Internet is misleading as it is for small quantities or is often written by consultants, and this information can be rapidly out of date as prices can move extremely quickly in either direction. 

However, the annual value of petroleum products is extremely volatile. This is because of the wildly swinging price for crude oil, one of the most heavily traded global commodities. In 2005, the global oil and gas market reached a value of 1.8 trillion. This... 

The issue of power has also been raised in the context of international commodity chains. Several authors have developed the concept of global commodity chains (Gereffi, 1994 Daviron and... 

Daviron, B. and P. Gibbon, 2002. Global Commodity Chains and African Export Agriculture. Journal of Agrarian Change, 2(2) 137-161. 

A global commodity manufacturer saved 120 million from operational improvement initiatives and reduced inventory by 100 million, largely as a result of S OP work. 

Naphtha is derived from crude oil, so its cost is tied to the price of crude oil, while ethane is mostly a byproduct of natural gas extraction, so ethane cost is tied to the price of natural gas. Crude oil is priced as a global commodity, while natural gas is priced on a regional basis. In North America natural gas has become relatively inexpensive since about 2010 due to the development of the fracking revolution. Because natural gas is difficult to transport to other regions, natural gas prices vary as much as a factor of five across the globe. 

Crude oil is a global commodity due to the relative ease with which the product can be transported to all global regions. The cost/barrel is... 

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