Differentiated Logistics Services Providing Competitive Advantages for Chemical Companies

• DHL outlines supporting tools to help chemical sector create added
  value for their customers
• Chemical market set to double from 2012 to 2035 to €5.6 trillion
• Evonik Industries case study demonstrates practical ways for
  success and opportunity

MIAMI–(BUSINESS WIRE)–Chemical companies who provide customers with differentiated logistics
service solutions in addition to the products, could be tomorrow’s
leaders of a global industry expected to be worth €5.6 trillion by 2035¹,
according to a new study by DHL Global Forwarding, the air and ocean
freight specialist of Deutsche Post DHL Group. The whitepaper Differentiated
Logistics Services – commissioned by DHL and developed by
Kompetenzgruppe Chemielogistik together with global chemical company
Evonik Industries – presents two tools to help chemical companies make
the transition to a more customer- and service-centric approach to
logistics.

Michael O’Hara, Global Head of Chemicals, DHL Global Forwarding, says
“With B-to-B logistics becoming more service oriented and business
customers demanding e-commerce-like experiences, competitive advantage
is no longer being determined by the product alone but more by the
package of logistics services wrapped around the product offering. As
this trend grows, responsive logistics solutions become not just ‘nice
to have’ but a deciding differentiating characteristic. Chemical
producers who can strategically and quickly change their traditional
view and offer differentiated logistics services will create competitive
advantages, build customer loyalty and increase their bottom-line. To
help chemical companies make this transition in a strategic way, the
whitepaper provides two tools to build differentiated business models
for the chemical companies of tomorrow.”

Developed by Kompetenzgruppe Chemielogistik, an independent team of
experts in Chemical Logistics, and Evonik Industries, the two tools –
Logistics Service Cube and the Cost-Benefit Scale – are designed to help
chemical industry stakeholders make the best decisions whilst exploring
a relatively new and untapped territory. The Logistics Service Cube
enables a more systematic approach to identifying the right logistics
service levels for the product, supply chain type and customer segment.
To define effective logistics strategies requires that chemical
companies, logistics providers and end-customers need to actively work
together.

The Cost-Benefit Scale provides a methodology for action and
implementation – a way to “quantify” the impact of differentiated
logistics services before deciding which level to pursue. The ability to
quantify the impact provides transparency and better risk assessment on
such things as revenues, sales prices and logistics costs.

Thomas Nieszner, Global Chemical Sponsor, DHL Global Forwarding, said,
“Differentiated logistics services make life easier for the customer and
enable chemical companies to add tremendous value – it’s a win-win
situation. With customized logistics services, chemical companies can
deliver the right products in the right amounts to customers, at the
right place and at the right time – every time.”

Benefits of differentiated logistics services

For chemical companies, the benefits of differentiated logistics
services include delivering the right quantities on time; ability to
cover demand fluctuations in cyclical customer businesses without time
delay; reasonable logistics costs and predictability and reliability of
deliveries.

As a relatively new area of opportunity for chemical companies, ‘first
movers’ can establish a real competitive advantage, especially when it
comes to customer loyalty. More importantly, with the projected sector
growth and the broader shift towards a service-orientated approach in
B2B, this is a development that chemical companies cannot afford to
ignore.

Angelos Orfanos, Global Head of Marketing & Sales, DHL Global
Forwarding, said: “The immediate challenge facing chemical companies is
finding the right strategy to meet the changes in demand and choosing
the appropriate service differentiation. This requires high-level
collaboration from top management to production, supply chain to
marketing and sales. The tools outlined in our new whitepaper will help
management move forward in what is a very complex scenario.”

DHL’s whitepaper Differentiated Logistics Services is a
continuation to DHL’s Supply Chain In The Boardroom: 5 Levers to
Boost a Chemical Company’s Bottom Line (2015) which identified
differentiated logistics services as one of the profit levers. In the
new whitepaper, Kompetenzgruppe Chemielogistik together with Evonik
Industries took a deeper look at how differentiated logistics services
can create added value, the challenge to traditional logistics
strategies and how to create new business models.

The new chemical whitepaper Differentiated Logistics Services can
be downloaded under the following link: www.dhl.com/chemical-logistics

You can find the press release for download as well as further
information on dpdhl.com/pressreleases

On the internet: dpdhl.com/press

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DHL – The logistics company for the
world

DHL is the leading global brand in the logistics industry. Our
DHL family of divisions offer an unrivalled portfolio of logistics
services ranging from national and international parcel delivery,
e-commerce shipping and fulfillment solutions, international express,
road, air and ocean transport to industrial supply chain management.
With about 350,000 employees in more than 220 countries and territories
worldwide, DHL connects people and businesses securely and reliably,
enabling global trade flows. With specialized solutions for growth
markets and industries including technology, life sciences and
healthcare, energy, automotive and retail, a proven commitment to
corporate responsibility and an unrivalled presence in developing
markets, DHL is decisively positioned as “The logistics company for the
world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of
more than 57 billion euros in 2016.

¹ https://www.rolandberger.com/en/press/Global-chemicals-market-to-grow-to-5.6-trillion-euros-by-2035-%E2%80%93-Asia-will-play-a.html

Contacts

DHL Media Relations
Jennifer Pakradooni, +1 954-260-7082
[email protected]