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University of Vaasa - Vaasan yliopisto

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Anttonen (2008) has divided chemical management services into four typological<br />

classes. Some service providers concentrate on streamlining supply side management<br />

from upstream. These services are closely related to supply side management or<br />

inbound logistics management <strong>of</strong> chemicals. Large proposition <strong>of</strong> these companies<br />

operate in chemicals distribution and have broaden their more traditional delivery<br />

and sourcing. In-house: house: mana managing ging chemicals in production processes processes: In this group<br />

the companies <strong>of</strong> <strong>of</strong>fering services concentrate on operating processes and increase<br />

the process efficiency in the customers’ production facilities. The chemicals involved<br />

are <strong>of</strong>ten support chemicals such as lubricants, coolants, etc. Most <strong>of</strong> these service<br />

providers are business units <strong>of</strong> established chemicals manufacturers. Third group <strong>of</strong><br />

companies <strong>of</strong>fer broad variety <strong>of</strong> IT focused services based solely on different ICT<br />

and s<strong>of</strong>tware solutions and services. These companies are mainly small and medium<br />

size companies that had found their market niche in specialized s<strong>of</strong>tware and<br />

technical solutions (i.e. chemicals purchasing, inventory management, labeling, EHS<br />

and safety data sheet SDS management). Fourth type <strong>of</strong> service provider companies’<br />

are large multinational chemicals manufacturers that have started new business units<br />

to <strong>of</strong>fer comprehensive or integral services from covering all above mentioned<br />

aspects. (Anttonen 2008)<br />

Picture 1. Chemical management se services rvices typology by Anttonen (2008).<br />

The economic benefits for customers mainly accrue from the reduced amount and<br />

consolidated number <strong>of</strong> chemicals used, which reduce the costs <strong>of</strong> chemicals<br />

purchasing. Other economic benefits are created through improved manufacturing<br />

processes (CSP, 2004). Chemical Strategies Partnership found in a study<br />

concentrating on chemical management services in the USA that the first year cost<br />

savings range from 5 to 25 percent (ibid.). For longer time periods, cost savings vary<br />

from rom six to ten per cent per year compared to the starting point. Corbett and Decroix<br />

(2001) argue that long long-term term contracts and partnerships usually <strong>of</strong>fer the greatest<br />

benefits for both the service provider and the customer. In resource management, the<br />

customer’s omer’s economic benefits are created through diminished waste management<br />

costs. Environmental benefits are created by reduced chemical volumes, reduced<br />

303

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