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Chemicals Links

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Three businesses were all dependent on a single high tonnage but low value chemical produced as a by-product by one of them.

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The manufacturing facility had very limited storage — if the product was not removed continuously regardless quantity or quality they would shut down

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The by-product was a strategic supply for a merchanting company — without guaranteed supplied at the right quality it did not have a business

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It was also a unique and essential raw material for a third business — its alternatives were ruinously expensive

The project involved brokering an agreement between all three businesses that met their interests despite their apparently contradictory nature. Careful analysis of their interests demonstrated that an algorithm for allocating the product could be prepared which would satisfy most requirements. This was implemented by a single organisation who was also responsible for the haulage logistics to ensure continuous removal of the product.

This arrangement provided a strategic platform for all three businesses to move forwards.

Case Study: Product Supply

A complex product supply agreement with competing interests

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