This development has triggered many discussions in the chemical distribution industry on how to best solve digital problems

Customers are increasingly searching online and establishing digital connections through websites, social networks, search engines, and business platforms. Those distributors they couldn't find online no longer appear in the relevant market.

This development has triggered many discussions in the chemical distribution industry on how to best solve digital problems.

CHEManager consulted with executives and industry experts familiar with the development of chemical distribution e-commerce, and shared their opinions on how to survive in an increasingly competitive environment and how to deal with the damage that new digital development may cause. we want to know:

1) Will today's chemical distribution e-commerce platform be more successful than CheMatch, ChemSystems, ChemConnect, etc. 20 years ago?

2) In the chemical supply chain, from the main body to distributors, logistics providers, online retailers, start-ups to customers, who will be the winner/loser of online distribution?

3) What plans do you (alone or with partners) have for online distribution?

Read the expert's in-depth answer here:

"Online commerce is an opportunity,
Not a threat"

Thorsten Lamp
Managing Director Asellion

1) The Internet is changing the way we live and work, and companies must accept this. It should not be about winners or losers, because online business is an opportunity, not a threat. This is an opportunity to improve, transform and add value. Publishing online will promote more openness and transparency. If the opportunity is used properly, it can lead to long-term success. In the long run, end customers will get better products to help them solve problems large and small, because chemistry will find a better way to play its greatest role. Development, production, distribution and logistics capabilities will continue to exist and benefit from better integration.

2) Asellion is an enterprise B2B e-commerce platform that allows chemical product suppliers to establish their own online stores through customized digital transaction channels to sell products to customers directly, privately and more efficiently. Covestro Direct Store is the first supplier and store opened on the Asellion platform. In the short term, we will focus on enhancing online communication and transactions to improve the experience of small and large enterprises. When all this is done, we will continue to focus on the next big thing: for example, we believe that industry-specific theme shops, enhanced analysis and payment terms will be high-demand themes.

"Digital Unicorn
Maybe it will be a winner. "

Hans-Jorg Bertschi
Executive Chairman (Board of Directors), Birch

1) I believe that the digital B2B trading platform-functionally integrated into the ERP of all parties-will play an important role in the near future. They will promote and rationalize the trade and distribution of many chemical products, and connect with supply chains and logistics platforms.

This is a very difficult question. First, the size of the party is not important. What is important is the level of digital capabilities and the speed of the party. Disrupting a party has a great chance of winning, but also a considerable risk. For example, in the field of logistics, digital unicorns or established logistics service providers based on digital assets may be the winners.

3) Birch is investing heavily to digitize its global asset-based chemical logistics services and non-asset-based chemical freight management business, the latter operating under the Elite brand. We are ready to cooperate with successful B2B digital chemical distribution and trading platforms to enable them to provide a complete supply chain and transportation chain.

"more and more important
Adapt to change"

Peter Wilkes
Managing Director of Biesterfeld Spezialchemie

With the rapid development of technology in the past 20 years, we have reason to believe that all of these will accelerate the use of trading platforms in the chemical industry. It turns out that our industry is more complex than other industries, which leads to a different and broader role for chemical distributors: it goes beyond the purely physical distribution of products. Although I see opportunities for the platform mainly in the background management process, I still doubt whether the platform can play a leading role in the next few years. Of course, there will be some changes in our market, and adapting to changes, innovation, and clear, transparent and effective service delivery are becoming more and more important. Those who adjust will have a chance to play, others will not have a chance. Providing online services is a factor, but only one of many factors.


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