Digitalization is a very important topic not only in the chemical industry as a whole, but also in chemical distribution. As Wolfgang Falter states in his article: Customers increasingly search online and initiate digital contacts via websites, social networks, search engines and commercial platforms. Those distributors that they do not find online are no longer present in the relevant markets.

This development has led to many discussions within the chemical distribution industry on how best to address the issue of digitalization.

CHEManager asked executives and industry experts familiar with the development of e-commerce in chemical distribution to share their opinion on what needs to be done in order to survive in an increasingly competitive environment and how to deal with a possible disruption caused by new digital developments. We wanted to know:

Will e-commerce platforms in chemical distribution be more successful today than CheMatch, ChemSystems, ChemConnect et. al. were 20 years ago?

Markus Kanis: Today, almost every product and service are marketed online, including chemicals. However, the chemical industry presents greater challenges as not every chemical product can be sold to every buyer. For example, the placing on the market and use of pesticides is governed by EU and national regulations; in Germany these include plant protection laws. Compliance must be ensured even via online sales. This impacts the potential scope and success of online marketing.

Who in the chemical supply chain from principal to distributor, logistics provider, online retailer, start-up to customer will be winners/losers in online distribution?

"Compliance even
via Online Sales"
Markus Kanis,
Executive vice president Industrial & Chemical,
Imperial Logistic

Markus Kanis: Anyone could be a winner here, subject to satisfying compliance requirements. Sales and processes are simplified and accelerated, transparency and market overview for all involved grows. But IT is a key enabler in this area, and those who do not have the necessary competence will lose out to those who do have it.

What do you (either alone or with partners) plan regarding online distribution?

Markus Kanis: As logisticians for the chemical industry, Imperial Logistics will support its customers in their efforts to implement e-commerce projects, by creating the necessary conditions, structures and communication channels. At the same time, we are actively looking at ways to market our own services across various sectors via e-commerce platforms. For example, Imperial Logistics recently launched the innovative Sharehouse online platform, which matches available warehouse capacity with companies needing space.