Cleaning Up The Supply Chain: Rolling Out The Safechem Model

Authors: Steger, U; Ionescu-Somers, A.; Salzmann, O
Source: IMD - International Institute for Management Development
Year: 2003
Company Name: Dow Chemical Company
Number of pages: 12

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Abstract:

In order to save the German and European chlorinated solvents market, The Dow Chemical Company founded SAFECHEM as a joint venture in 1992. The subsidiary successfully develops the German, Austrian and Swiss markets by offering a zero-emission closed loop system, called the 'SAFE-TAINER system'. To do so, the company has to establish closer relationships to distributors who provide the system to the end users. Moreover, it necessarily promotes the value of the concept sustainable and safe handling of chemicals to a wide range of stakeholders. Due to its joint venture status, SAFECHEM can only take on the role of coaching Dow's activities to explore the remaining West European markets from 1996 on which pose a great challenge due to less comprehensive legislative frameworks and different public attitudes. Having become a 100% Dow subsidiary in 1998, SAFECHEM gradually takes over international operations and faces the impacts of a new European Union legislation coming into force in the course of 2001 that will trigger investments by end users, either in upgraded chlorinated solvent or alternative technologies. In this situation, the management has to decide how SAFECHEM's service model can be successfully rolled-out in the remaining markets.