Experts Statements: Hermann Bach, Covestro

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?

Hermann Bach: Digitalization is becoming part of our daily lives — both professionally and privately. Different to 20 years ago when digital platforms were only rare lighthouse projects in an overall analogue landscape, we face today a much more digital-savvy environment. This change is being further accelerated by the fast-paced nature of technological developments and the omnipresence of digital technologies, in particular data, computing power and connectivity are readily available today. This progress holds enormous potential for digital B2B business in the chemical industry.

Many customers expect more flexible ways to interact and to do business, similar to the many digital opportunities in B2C business. In order to reach the customers at the right time in their decision-making process, successful B2C businesses serve them via their used and preferred channels. And while this practice has rather become standard procedure than competitive advantage in B2C, many B2B companies still need to learn how to establish a seamless experience across the multiple channels used by their customers. However, if you don’t manage to serve your customers on the channels that they prefer to use, someone else will probably do. This is why we choose to serve our customers in multiple ways: on new digital platforms like the Covestro Direct Store and the flagship store on Alibaba 1688 as well as on our proven, traditional channels.