SMEs in the UK chemical distribution industry: An

Transcript:SMEs in the UK chemical distribution industry: An:
SMEs in the UK chemical distribution industry: An ‘operations management’ perspective Dr Evri Lampadarios Leeds Trinity University 2nd March 2016 Introduction SMEs Definition(s)? Importance Characteristics Success / Failure factors Chemical distribution Rationale Definition Classification Services My research ‘Operations Management’ perspective Contents No agreed upon definition ….varies with country, no of employees and turnover UK Companies Act of 2006 SMEs must satisfy at least two of the following criteria: < 250 employees < £25.9m turnover < £12.9m annual balance sheet European Union (2003): < 250 employees < 50mEUR annual turnover < 43mEUR total annual balance sheet SMEs Definition(s)? The Big Business of Small Enterprises: https://www.youtube.com/watch?v=h3AkfuaMSEo Obama on the Importance of Small Businesses https://www.youtube.com/watch?v=n-EIllwA0Ws Small Business and the Economy https://www.youtube.com/watch?v=bQfjb530Aew SMEs Importance Integral to economic and social development and regeneration Promote economic growth and increase a country’s competitiveness and wealth An ‘engine of growth’ to stimulate recovery in the wake of recession Facilitate rapid industrialisation Key driver to innovation and R&D Above all…employment generation Sources: Amoros et al., 2013; Dobbs and Hamilton, 2007; Cabinet Office, 2013; Halabi and Lussier, 2014; Simpson et al., 2012 SMEs importance Absence of complex formal structures Dominance of owner-managers Limited resources Environmental uncertainty Limited customer base Firefighting opposed to strategic planning But also.. Flexible Adaptable Close to customers Sources: Adams et al., 2012; Forsman, 2008; Storey and Greene, 2010; Unger et al., 2011 SMEs Characteristics No single agreed upon definitions Success: survival, long term viability, growth (turnover, number of employees, market share) and profitability (profit, return on investment) Failure: firm closure, ceasing to trade, entrepreneurial exit, dissolution, deregistering, discontinuance, insolvency, liquidation, organizational mortality and bankruptcy etc… Success / Failure Rationale Definition Classification Services Chemical distribution Chemical distribution originates in the gap between producers who wish to sell large lots without regulatory or logistical complications and customers demanding small volumes and who have very specific needs on technical, regulatory and logistical level (Mortelmans and Reniers, 2012) In essence, chemical distributors allow their principals to profitably reach smaller customers in many industries and countries (Chemagility, 2012) However… genuine chemical distributors add value through an extensive range of services to both customers and suppliers (Hornke, 2012) Chemical distribution Rationale No universally agreed definition….wide variety of functions and confusion with other types of trading in the industry Not logistics Not traders Not agents ‘A company that takes title to bulk and/or non-bulk chemicals from a chemical manufacturer or supplier and re-sells