Supply Chain Management - a Basf Case Study - 5417 Words

Journal of Supply Chain management and other Business issues BASF Case Study Ââ€" Challenges in Supply Chain Management Thomas Schuster, Daan Cramer, Niek Nigg, Bart van Gorp, Myrthe Jansen, Alla Lashmanova, under the supervision of Dr. Peter Bollen University College Maastricht Business Press, Universiteit Maastricht Zwingelput 4, 6220 MD Maastricht Abstract. This paper primarily discusses and analyzes theories and implications of supply chain management. A case study of the German chemical company BASF is going to illustrate main concerns regarding the topic of logistics and especially outlines the challenges and problems companies face when expanding in other geographical areas. BASF failed to realize the importance of an efficient†¦show more content†¦[5] The sixties of the last century brought a change in BASFs strategy. In this decade, production sites were progressively created or acquired abroad in order to increase market share and start an expansion abroad without investing enormous amount of financial resource as well as time. International relations were already established as early as in the beginning of the nineteenth century, however. At that time the company strongly extended its scope of manufacturing as well as marketing, and progressively created production facilities in certain geographical regions in order to focus on customer proximity. The main growth centers of this international approach were North America, Australia, and South-East Asia as the most important region. [1] 2.2 Company Structure Every product category at BASF is governed by a separate operating division such as Engineering plastics, industrial chemicals, coatings colorants, etc. Additional support is ascertained with functional division. These divisions handle accounting, finance, planning controlling tasks, human resources, and many other supplementary tasks. Later parts of this paper are especially going to focus on the logistical challenges, which were mostly apparent in the South Eastern Asian regions. Further, the expansions in various geographical regions lead to the creation of regional departments or regional divisions. In total, there are 14 subdivisions that handle individual group companies. The individual groupShow MoreRelatedScm in Petroleum Industry5215 Words   |  21 PagesLogistics Supply Chain Management. Vol. 1, No. 2, 1 November 2006, 90 – 97. Supply Chain Management in the Petroleum Industry: Challenges and Opportunities RAED HUSSAIN Department of Quantitative Methods Information Systems, Kuwait University, Kuwait TIRAVAT ASSAVAPOKEE Department of Industrial Engineering, University of Houston, Texas, U.S.A. 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