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Module 2 Assignment 4

Supply Chain as a Competitive Advantage

Submitted in partial fulfillment of requirements of the Course

Udit A Parmar

Indiana Institute of Technology

MBA 5410: Operations & Technology Management

Dr. David D. Pitcher

August 4,2021

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1. List 4-5 supply chain management strengths that BASF emphasizes.

2. For each strength explain how it helps BASF position itself atop other global chemical companies.

I think that the first advantage that BASF has is that they are close to their customers and know their

requirements, this helps them with being able to use a real-time visibility to drive supply chain

excellence. The second advantage would be BASF using digitalization. This helps them with better

reliability and sustainable business. Using just the technology is not enough, putting the software to its

best use could require a significant efforts in both internal and partner culture issues and improving

processes. BASF achieves this by providing customized services and developing a seamless transparency

in the whole supply chain process, helping with the efficiency of the process. Employees with great

amount of experience and an out-the-box thinking i ii

The third would be getting a timely forecast from the business analyst which helps them plan further

ahead. An article from BASF states the use of mobile tank concept being implemented at one of the

sites. It’s said to be the world’s largest patented tank containers. This helps them supply productions

plants faster and at a lower costs. The fourth strength would be implementing a global logistics visibility

platform with connections to 600 carriers.iii Their digital platform combines global traffic data with

significant weather conditions and news feeds from traditional and social media sources. This far more

complete view allows their logistics and customer support teams to collaborate on events affecting their

supply chain, providing customers with more immediate and accurate information.

The fifth strength of BASF is that they use the approach of Verbund, this means the intelligent

intertwining of energy flows, production plants and infrastructure. BASF takes the by-products of one

plant and uses it as a starting material for another, saving them over one billion euros annually. Using

this approach chemical process conserves resources, using lesser energy and producing higher yields. iv

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Verbund not only keeps track of the company's internal operations, but it also assists in the integration

of the company's value chain with its customers, resulting in a circular supply chain. These circular

supply chains utilize or discover ways to use process byproducts at client sites in other locations. v BASF’s

efficient supply chain program has helped create some of the world’s largest automatic guided vehicles

(AGVs). AGV being able to supply the company’s productions plants faster and at a lower costs. vi

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References

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 i Banker, S. (2018, April 30). BASF uses real-time visibility to drive supply Chain Excellence. Logistics Viewpoints.

https://logisticsviewpoints.com/2018/04/30/basf-uses-real-time-visibility-to-drive-supply-chain-excellence/

ii Supply chain. BASF. (n.d.). https://www.basf.com/global/en/who-we-are/digitalization/smart-supply-

chain.html

iii Dixit, P. (2019, September 27). BASF group: Innovation & integration in Chemicals' supply chain management.

Medium. https://medium.com/excellence-in-operations-supply-chain-management/basf-group-innovation-

integration-in-chemicals-supply-chain-management-ad7e04aafc59

iv Banker, S. (2018, September 18). One of the world's most Innovative supply chains. Forbes.

https://www.forbes.com/sites/stevebanker/2018/09/18/one-of-the-worlds-most-innovative-supply-chains/?

sh=6ba2a3775fae

v Dixit, P. (2019, September 27). BASF group: Innovation & integration in Chemicals' supply chain management.

Medium. https://medium.com/excellence-in-operations-supply-chain-management/basf-group-innovation-

integration-in-chemicals-supply-chain-management-ad7e04aafc59

vi Banker, S. (2018, September 18). One of the world's most Innovative supply chains. Forbes.

https://www.forbes.com/sites/stevebanker/2018/09/18/one-of-the-worlds-most-innovative-supply-chains/?

sh=6ba2a3775fae

Banker, S. (2018, April 30). BASF uses real-time visibility to drive supply Chain Excellence. Logistics Viewpoints

Supply chain. BASF. (n.d.)

Dixit, P. (2019, September 27). BASF group: Innovation & integration in Chemicals' supply chain management.

Medium.

Banker, S. (2018, September 18). One of the world's most Innovative supply chains. Forbes.

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