SWOT‐Analysis Chemical Logistics: Germany - Central Europe

SWOT‐Analysis Project [ChemLog]
6 INTERNAL WEAKNESSES OF CHEMICAL COMPANIES AND LOGISTIC PROVIDERS
6.1 HIGH SUPPLY CHAIN COST
The logistic costs are 8 to 12 % of the turnover of the chemical enterprises (or even higher).
These costs are an important factor; its optimisation plays an important for the
improvement of competitiveness.
6.2 DEPENDENCE OF MARKET VOLATILITY REGARDING INTEGRATION
The specific product portfolio of the enterprises is underlying different market changes.
Changes in production and exchange of products cause increasing logistic costs.
6.3 INSUFFICIENT RELIABILITY OF SELLING FORECASTS
The enterprises have problems with an insufficient reliability of selling forecasts, which are
the basis for planning of the production. A high optimisation of production processes
reduces in this framework the flexibility and market volatility can cause problems.
6.4 INSUFFICIENT ABILITY TO PLAN THE DEMAND OF RESOURCES
There are general problems caused by modest possibilities to plan the demand for resources.
6.5 CUSTOMER RELATIONS
The stability of customer loyalty in Central and Eastern Europe is lower than in Western
Europe.
o Reliability and fulfilment of agreements
In the business relations to Central and Eastern Europe there are partially problems
with reliability and fulfilment of agreements.
o Often changing contact persons
The often change of responsible employees and contact persons of customers in
Central and Eastern Europe is a big problem
o Communication and Language Barriers
The communication and language barriers especially for international business
activities are a weakness, which has to be especially respected.
Project Partner: GERMANY Page 32/39