Table of Contents1. Overview of BASF's Logistics Operations in Southeast Asia1.1 Company Background1.2 The Company's Supply Chain and Logistics Operations in Southeast Asia2. Identifying the business problem2.1 Lack of qualified logistics personnel2.2 Lack of proper logistics strategy2.3 Overlapping organizational structure2.4 Weak information system in the entire region3. Recommendations3.1 Changes in terms of logistics personnel3.2 Implementation of a single logistics strategy within the regional company3.3 Restructuring of the organizational structure3.4 Establishment of a coordinated information system4. Cost and benefit of recommendations4.1 Cost of recommendations4.2 Benefit of recommendations5. Reference listBASF report1. Overview of BASF's Logistics Operations in Southeast Asia1.1 Company BackgroundBASF is one of the world's largest chemical companies. It was established in 1865 and its main product was a coal tar-based dye. It includes six main product categories, namely oil and gas, chemicals, agricultural products, plastics and fibers, dyes and finishing products, and consumer products. The company structure is presented by a three-dimensional matrix composed of operational, regional and functional divisions. Since 1960, the company began to expand its operations globally through acquisitions. In Southeast Asia, the company has more than 30 companies in 16 countries, 12 of which have production facilities. The region's head office is located in Singapore.1.2 The company's supply chain and logistics operations in Southeast AsiaIn terms of the flow of goods in the region, each group company can directly order the material, produce the goods and sell them within the region. walk. They construct their own physical flow of goods, being relatively independent of the physical flow of goods of the parent company. However, only a third of the total turnover in Southeast Asia is generated in the region due to the limited production capacity of the group companies, with the remaining two thirds still mainly supplied from the main production site of the company in Germany. Regarding information management, there is little flow of information within the region because the group companies are located in different countries. Furthermore, each company in the group has developed its own information system, so it is difficult to communicate and share information between them. There is almost no systematic information within the regional company due to lack of IT support. Then, in managing the organization and structure, the head office in Singapore is responsible for the performance in the region, however, each group company is also responsible for one or more of BASF's production line and , therefore, be responsible to the BASF operating division.