India Chem 2000
October 6-8,2000
e-Commerce for the Chemicals Industry
The indian Chemicals industry
- A US$ 25 billion industry
- More than 6,000 manufacturers
- More than 40,000 intermediaries
- Specification based trade
Issues
- Fragmented - dispersed
- Multilayered - Opaque
- Logistics - internal inefficiencies
- Time & manpower intensive
- Credit based trade - validation of buyers a major
problem
- Small buyers have no access to large reputed suppliers
- Small and medium suppliers are contained by lack
of infrastructure
Possible e-Commerce Solutions
- Information sites
- Plain billboards
- Matchmaking sites
- Storefronts & community without physical
support systems
- Auction/ reverse auction sites
- Exchanges
- E-marketplaces
What e-commerce is not?
- magic
- A money shower
- A get rich quick scheme
- A no work - high rewards tool
- A scam
- A standalone replacement of old business practices
How can e-commerce help?
- Save time & effort
- Increase efficiency
- Increase reach
- Better customer service
- Facilitate transparency
- Reduce the final cost of transaction
Obstacles
- Lack of trust
- Lack of communication
- Perceived lack of security
- Influence of non-value adding trade channels
- Mindset
Issues needing address
- recognition/ familiarity
- Authentication
- Negotiation capabilities
- Credit
- Neutrality
Solutions required
- On the ground physical support system
- Validated buyer community
- Fulfillment
- Replicating physical transactions without the inefficiencies
- Building communities
- Focus on adding value
- Facilitate easier and faster information exchange
- Integrate buyer and seller communities
- Expand reach for SME's
- Allow access without prohibitive infrastructure
costs
The future
- Integration
- Shrinking world
- Standardised solutions
- Customer specific tailoring
- Outsourced facilitation
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