Supply Chain

In 2007, BASF purchased approximately 500,000 different raw materials and technical goods as well as services for plant construction, maintenance and logistics.

Procurement Verbund ensures competitive advantage

Global and regional procurement teams link the local purchasing units and pool local needs of different sites. Joint projects with suppliers reduce procurement chain costs.

Central coordination for the purchase of raw materials

We coordinate the purchase of key raw materials centrally by means of global or regional product teams. The most important petrochemical feedstocks used in production at our Verbund sites are naphtha, LPG (liquefied petroleum gas) and natural gas. We also purchase a large number of other raw materials like ammonia, precious metals and even sugar.

Technical purchasing satisfies demand quickly and efficiently

Global and regional procurement teams coordinate our purchasing of technical goods and services such as machines, laboratory equipment, construction and installation work. We work in close collaboration with our engineering and maintenance units in order to bundle our demands quickly and efficiently and to standardize goods and services, thus achieving savings.

Procurement of logistics services

We purchase logistics services for approximately €2.4 billion and thereby ensure that goods reach our sites and customers on time.

We optimize logistics costs and strengthen BASF’s competitiveness by the global coordination for the procurement of air and sea freight as well as the regional planning and control of land freight providers.

More efficiency through e-commerce

In 2007, we focused on the worldwide introduction of electronic catalogs. In addition, we expanded our e-commerce activities. We offer our customers a wide range of information by means of internet portals that are increasingly being used. Our goal is that even more orders are placed electronically in order to ensure rapid and automatic processing. In Europe, half of all incoming orders are already placed on our electronic portals, worldwide the figure is over 40%. In 2007, all regions recorded an increase of sales and information transfer via electronic media.

Sustainability in the supply chain

In our Values and Principles we state our commitment to internationally recognized labor and social standards as well as our responsibility toward the environment. These commitments are being met. For us, it is important that our suppliers and business partners also conduct their business in accordance with these values. Several years ago we therefore established the “Safety Matrix” to systematically assess environmental protection and labor safety standards in the supply chain and evaluate selected suppliers. Supplier selection occurs on the basis of a country and product risk evaluation.

BASF has extended this tried and tested tool with a system to assess internationally recognized labor and social standards. We inform our suppliers with regard to the social standards we expect. A country and industry risk assessment as well as a self-evaluation made by selected suppliers will be further components of our process. Based on these results concrete steps will be developed and taken.
More information can be found at: corporate.basf.com/supplychain