Redefining The Business with Chemicals: The Payment for The Utility of Chemicals and Not for The Amount

By Vojislavka Satric & Maria Grineva
10 January 2020 | Article

Let’s look at the business of chemicals: the main interest of chemical users is not to buy and possess chemicals products. They are rather interested in the best solutions for their product (performance, quality) and/or processes where chemicals are applied.

Key Words: Service-based economy, utility of chemicals, chemical industry, performance-based business model, Chemical Leasing.

The shift to a service-based economy is leading to the development and application of new business models in which the service component of products provides the added value to customers and as such becomes the essential part of business relations. Service-based business models facilitate recycling, take-back and reuse. Consequently, such models reduce resource consumption, waste and emissions to the air and water. At the same time, these models contribute to more cost-efficiency for businesses.

Let’s look at the business of chemicals: the main interest of chemical users is not to buy and possess chemicals products. They are rather interested in the best solutions for their product (performance, quality) and/or processes where chemicals are applied.

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Are you interested in learning more the performance-based model of Chemical Leasing?

References:

  • Chemical leasing website www.chemicalleasing.org. The website was developed under the UNIDO global Chemical Leasing programme.
  • Denis Kuzniatsou, Performance-Based Contracts: Making the Shift from Products to Services

Source: The article was published for the first time in: www.linkedin.com/pulse/redefining-business-chemicals-payment-utility-amount-maria-grineva
Image copyrights: Shutterstock

Vojislavka Satric

An experienced chemical engineer, international expert on sustainable chemicals management and Chemical Leasing, author ofscientific articles on green chemistry and Chemical Leasing, the winner of several Chemical Leasing awards.

Maria Grineva

An external consultant of UNIDO, experienced in the coordination of industrial development projects, PR and communication solutions. Conceptualized and developed the web-version of the Chemical Leasing toolkit and IAMC toolkit. Communication manager for the Global Chemical Leasing Award 2020. Co-founder of Athenea International.

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