Specifics of Chemical Commodities

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 chemical industry is the application field for the study and the development of a global value chain planning model. General characteristics of the chemical industry as application field are described in this chapter. Particularities of chemical commodities are described in more detail being relevant for the considered case. 

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. 

The chemical industry is presented in an overview with chemical value chain structures, industry specifics, market structures and trends before focusing on commodities. 

The chemical industry is one of the key global industries with chemical product sales of 1,776 billion globally in 2004 (CEFIC 2005, p. 3). Industries can be classified as mainly process, discrete or service industries between natural resources and the final end consumer need as shown in fig. 25. 

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Hence, value chain management and specifically global value chain planning of commodities plays an important role for chemical companies due to the direct relation to globalization, consolidation as well as commoditization. Specifics of chemical commodities are presented in the following. 

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