Brenntag plays a central role in the chemical distribution supply chain and follows an integral approach, which connects customers and suppliers in regional markets around the globe. In particular, Brenntag’s relationships with its suppliers are an essential factor in operating a successful chemical distribution business and fulfilling our philosophy of “ConnectingChemistry”. David O’Connell, Commercial Director, Industrial Chemicals EMEA, describes Brenntag’s philosophy towards supplier relationships as follows:
» We focus on creating value for our suppliers because the way we develop products and solutions for our customers is one of Brenntag’s unique selling propositions. There is, however, no single format or recipe. We operate a variety of different supplier relationship models to best meet the requirements of each party and the relevant market. We have a number of truly global relationships with some of the largest chemical producers, whilst many other relationships are substantial on a regional scale or have a specific customer industry focus. «David O'Connell
The global network of relationships provides the opportunity to exchange best practice and knowledge between our regions, and also offers an unrivalled portfolio of products and services to those customers who also operate on a global basis.
MARKET INFORMATION AND KNOWLEDGE EXCHANGE IS A KEY ASSET
Our suppliers value our substantial resources in terms of people, expertise and infrastructure. Most importantly, Brenntag’s key asset – a factor we can truly leverage – is our capability to convert data, gained from extensive, daily engagement with our business partners, into market information that helps suppliers to better understand markets, application trends and competitive activity. Brenntag has invested in systems and practices that facilitate the capture and further use of a wealth of data. Time and again, our surveys of suppliers’ needs highlight that market information is a key benefit that producers appreciate from Brenntag.
» The common feature in all these relationships is a defined, common vision of success as well as detailed business objectives that ensure market and commercial effectiveness. When these features are in place, we always create true value for our partners and capitalize on Brenntag’s strengths. «David O'Connell
TEAMWORK IS ESSENTIAL TO OUR SUCCESS
Chemical distribution is a people-oriented business. While most customers buy from Brenntag’s local operations, suppliers tend to be regional or even global. We have established regional supplier-facing teams to provide strong supplier relationship stewardship. These teams are highly focused on best-in-class operational execution. Internally, we have a management set-up that enables us to maintain and maximize oversight of our global supplier relationships. Our strong network helps us to anticipate global and regional needs to support informed discussions with suppliers.
FUTURE INFLUENCES ON BRENNTAG’S SUPPLIER RELATIONSHIPS
Mergers and acquisitions amongst chemical manufacturers have been very significant in recent times, as producers look for scale and synergy from globalization. Brenntag is wellpositioned to benefit from producer restructuring due to its position as global leader in chemical distribution.
Sustainability is a critical matter for the chemical industry and increasingly a measure of an individual company. Brenntag has demonstrated its commitment to sustainability with its active participation in the “Together for Sustainability” initiative.
We think that digitalization is a huge opportunity to develop our ways of working with business partners. Faster exchange of market information, more transparency in business development pipelines and better process efficiency will improve business performance and reduce complexity.