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Overview of Basf Logistics Operation in Southeast Asia

Essay by   •  September 20, 2011  •  Essay  •  280 Words (2 Pages)  •  1,476 Views

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BASF is one of the world's largest chemical companies. It was established in 1865 with the main product was coal tar based dyestuff. It has six main categories of products which are oil and gas, chemicals, agricultural products, plastics and fibers, dyestuff and finishing products and consumer products. The structure of the company is presented by three-dimensional matrix consisting of operating, regional and functional divisions. Since 1960, the company began to expand its operation at a global level through acquisition. In Southeast Asia, the company has over 30 companies in 16 countries through the region of which 12 has the production facilities. Headquarter for the region is located in Singapore.

1.2 The supply chain and logistics operation of the company in Southeast Asia

In terms of the flow of goods in the region, each group company can directly order the material, produce the goods and sell them within the regional market. They build their own physical flow of goods, being relatively independent from the parent company's physical flow of goods. However, only one third of total revenue in the southeast Asia is produced in the region due to the limited production capacity of the group companies, the remaining two-thirds are still mainly supplied from the company's main production site in Germany.

Regarding the information management, there is little information flow within the region as group companies are located in different countries. Besides, each group company has developed its own information system so it is hard to communicate and share information among them. There is almost no systematic information within the regional company due to the lack of computer support.

Then in the organization and structure management, the headquarter in Singapore holds the responsibility for...

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