Sales5 Aug 2020 12:57
Sales will have been poor in the past as there were no distribution agreements in place. This has now changed and with that comes a wide network of sales coverage.
Interesting article on distribution of speciality chemicals.
To become an industry leader in the chemical industry, you increasingly need to be able to optimize supply chains, to collaborate intensively in networks with partners who frequently operate in other stages of the value chain.
Chemical distributors are an integral part of the supply chain and serve two primary groups of customers: chemical manufacturers, which need help reaching smaller or more specialized customers, and the end customer that is looking for access to products and services. Within this space, distributors perform myriad value-added services that chemical manufacturers and end customers cannot or choose not to do, including transportation, repackaging bulk products into smaller quantities, reformatting products based on customer specifications, and providing just-in-time delivery and vendor-managed inventory.
Specialty chemicals. Specialty chemicals enjoy an even more robust growth projection of 5.0%-5.5% (with more than 4.0%-4.5% growth expectations for the distribution sector) — a result of lower-volume customers and suppliers’ increasing use of specialty distributors to gain entry into new markets (see Figure 1). To top it off, specialty chemical distribution commands gross margins that are significantly higher than those of commodity chemicals — as much as 40% for complex chemicals such as pharmaceutical additives
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