Value Chain Management in the Chemical Industry: Global by Matthias Kannegiesser

By Matthias Kannegiesser

Supply chain administration helped businesses to regulate volumes, fulfil client call for and optimize bills in creation and distribution. particularly, chemical businesses with excessive complexity in creation and distribution used provide chain administration to lead their operations. faced with globalization and extending uncooked fabric and revenues rate volatility, optimizing provide chain charges is not any longer adequate to make sure the general profitability of the enterprise. worth chain administration takes provide chain administration to the subsequent point via integrating all quantity and price judgements from revenues to procurement. The ebook offers the price chain administration inspiration and demonstrates the way it is utilized in an international price chain making plans version for commodities within the chemical undefined. A finished case learn illustrates the consequences of selection making integration, e.g. the effect of uncooked fabric costs or alternate premiums on optimum revenues, construction, distribution and procurement plans in addition to total corporation profitability.

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2). Tallury and Van Ryzin distinguish: • Sales decisions: decisions on where to sell and when to whom at what price • Demand decisions: estimation of demand and its characteristics and using price and capacity control to “manage” demand Tallury and Van Ryzin differentiate three basic categories of demand management decisions in revenue management (Tallury/Van Ryzin 2005, p. 2 Concepts to Manage the Value Chain 27 develop specific approaches such as overbooking, seat inventory control and pricing approaches (McGill/van Ryzin 1999).

Therefore, value chain management has to be defined in this work. Value chain management is the integration of demand, supply and value decisions from sales to procurement using strategy, planning and operational processes. This value chain management definition relies on a three-level structure for strategic, tactical and operative company control introduced by Anthony (1965) and used in controlling and supply chain management literature (Rohde et al. 2000). The key aspect is integration of decisions on each level across the company value chain with the defined interfaces to suppliers and customers.

324). Revenue Management Revenue management (RM) is the most recent, demand-oriented management concept in comparison (Cross 2001; Tallury/Van Ryzin 2005). Alternative terms used are yield management or dynamic pricing. Revenue management is concerned with “demand-management decisions and the methodology and systems required making them” (Tallury/Van Ryzin 2005, p. 2). Tallury and Van Ryzin distinguish: • Sales decisions: decisions on where to sell and when to whom at what price • Demand decisions: estimation of demand and its characteristics and using price and capacity control to “manage” demand Tallury and Van Ryzin differentiate three basic categories of demand management decisions in revenue management (Tallury/Van Ryzin 2005, p.

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