Five years ago, the concept of online trading in chemicals was a panacea.
Pushed by both fear and greed, companies threw massive sums of money and management
time into a wide range of ‚e-business’ ventures. Many of these subsequently
failed, which caused online trading to become somewhat of a pariah, at least
behind closed doors.
This study concludes that both the initial optimism and the ensuing pessimism
are exagerated. Use of the Internet in the chemical industry has made tremendous
changes in communications. Compared to five years ago, vastly more information
is available – immediately, anytime, anywhere and at minimal cost. However,
the Internet has not made major changes in transactions. In fact, despite
massive investment and effort, it is still unclear whether Elemica, the last
survivor of the transaction hubs, will survive.
In communications, online business is a performer, and it has plenty more
potential to be realised. This is where management should focus its attention.
In this report – aimed at commercial managers in the chemical industry
– we review the experimentation with and assess the current status of
online trading. It is organized into five main chapters:
• Overview of online trading in chemicals
• More detailed look at online selling
• More detailed look at online buying
• Costs/economics of online trading
• A look to the future
