The Company BASF.BASF, the world’s largest chemical company, headquartered in Germany, has successfully constructed supply chain where the byproducts of one operation get converted into starting materials of another operation. BASF possess six “Verbund” sites, in English, which means “combine” or to “cooperate” is used as the intelligent interlinking of production plants, energy flows and infrastructure to create efficient value chains that extend from basic chemicals to high-value added products such as coatings and crop protection agents. Since by-products can be re-used as the starting materials for another, chemical process definitely consumes less energy, produce higher product yields and conserve resources. This concept of sites not only protects environment, but also saves the company money. The company mentions that they would have saved over one billion euros annually through this concept. Further, Verbund guarantees sustainability of the operation, as BASF saves on raw materials and energy, lowers emissions and cuts logistics costs because the synergistic production operations are near each other, which require fewer truckloads per year. According to the article, this company saved around 19.0 million megawatts per year, since waste heat from production processes is captured to be used as energy in other porudction plants again. Additionally, their digitization effort in site, operating with computer programs that help to forecast how much steam and waste heat the production plants supply at the site, contribute and how much electricity is needed, seems to be surprising. A developed statistical model, which combines individual forecasts of the plant, historical, environmental records, now provides even more precise calculations and has already improved the forecast up to 60 percent. Following these success, BASF also created a smart supply chain program called AGVs, meaning automatic guided vehicles, which allow the company to supply their production plants faster and at lower cost.
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One of the World’s Most Innovative Supply Chains
One of the World’s Most Innovative Supply Chains
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