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Accelerated growth through a focus on chosen industry segments

Univar serves dozens of end markets with different commercial challenges, product requirements and growth profiles. Many of the higher-growth, higher-margin industries rely on differentiated products to compete—products that require innovation and unique ingredients to set them apart.

Customers in these industries require partners with deep knowledge of their challenges. They need collaborators to provide technical support, application expertise and regulatory guidance. They want distribution partners who understand the nuances of their industry.

In 2014, Univar’s EMEA segment created dedicated, industryfocused teams for our food, pharmaceutical, personal care, and coatings and adhesives customers. These teams include sales representatives, application specialists and formulators with the experience and know-how to provide the support our customers value and demand. We also invested in Univar laboratories and kitchens staffed with technicians to provide deeper support. Univar EMEA’s focused-industry teams are highly valued by our customers, and they have delivered consistent double-digit, high-margin growth since their inception while winning many new supplier authorizations.

In 2017, Univar created four focused-industry teams in the USA and plans to extend this model worldwide. We are evaluating additional markets for focused-industry potential, and we will continue investing in this proven business model for chosen industries as we monitor customer response and financial results.

 

Criteria for Future Focused Industry SegmeNTS

  • Double-digit growth potential
  • Accretive margins
  • Market demand for differentiated products

SUPERIOR COMMERCIAL EXECUTION TO PROFITABLY GROW OUR CORE BUSINESS

As we expand and refine our focused-industry model, Univar remains committed to growing and servicing the large core business that has made us a global leader. Thousands of customers rely on Univar’s local chemical distribution network for basic chemicals and ingredients. Many suppliers depend on our bulk chemical distribution capabilities to sell and distribute large volumes of less differentiated chemicals.

The key to profitable growth in these core businesses is operational efficiency. In 2017, Univar invested to optimize and automate our supply chain. These changes make our supply chain performance faster, leaner and more responsive while minimizing operational costs. They included site-by-site transformations to streamline workflow, improve communication, identify and remove barriers, establish new procedures and train our people.

Transportation efficiencies were created through carrier negotiations, interbranch transfer optimization and fleet optimization. Network consolidation and outsourcing transitions were accomplished in advance of establishing a more efficient hub-and-spoke network in 2018. Improved buying strategies and practices were implemented to streamline Univar’s indirect procurement process, and an enhanced continuous improvement program was implemented throughout our business.

The savings garnered from supply chain optimization in 2017 exceeded expectations, and we continue to work hard to deliver value in the face of rising costs and regulatory pressures.

DIGITAL MARKETPLACE LEADERSHIP

Univar also made a substantial investment to launch our new digital commerce portal in the USA to make doing business with Univar as simple, convenient and efficient as possible. MyUnivar.com provides customers with 24/7 access to many benefits from any device: Univar’s complete product catalog; two-click reordering; order tracking; current pricing; live chat support; documents ranging from safety data sheets to bills of lading, proof of delivery, invoices, and many more.

Routine updates to MyUnivar continue to add new functionality to make the portal even more valuable to our customers, and plans are in place to expand this service worldwide. Customer response in the USA has been overwhelmingly positive.

“I love the fact it shows me what I have ordered in the past so I know that I am selecting the right product. Thanks so much for making my job a little easier!” - Jane, Dalton, GA
“I love how my past orders are right there to click to reorder!” - John, Dallas, TX
“We drop ship many products that require an SDS. Instead of emailing our rep, I just pulled it off the website. It was very easy to use!” - Phil, Bakersfield, CA

Digital marketplace leadership differentiates Univar from competitors and increases our value as a chemical and ingredient distribution partner. It simultaneously improves our reach and visibility in the marketplace; streamlines transaction costs and operations; and enhances our ability to promote products and services through social media marketing, email campaigns, thought leadership positioning and digital advertising. Most importantly, it makes life easier and less costly for Univar’s customers.

Popular MyUnivar Features

  • Full order history and order tracking

  • Browse Univar’s full product catalog

  • Request a pricing quote

  • Easy 2-click reordering

Market expansion and acquisitions

Univar is continuously evaluating selective strategic acquisitions to enter new geographies, strengthen end-market capabilities or reinforce our product and service portfolio.

The acquisition of Tagma Brasil Ltda. in 2017 not only expanded Univar’s business in the growing Brazilian agricultural market, but also extended our high-value formulation and packaging service business for agriculture customers throughout a larger geographic footprint in the Americas.

Completion of our acquisition of Kemetyl Industrial Chemicals in January 2018 strengthened our presence in Norway and Sweden while expanding our positions in the European pharmaceutical and water treatment end markets.

We are also actively evaluating additional end-market segments for the expansion of our focused-industry strategy.

Market expansions and strategic acquisitions are an important facet of our five-year growth strategy, and Univar stands ready to invest in the best opportunities.

One Univar collaboration, rigor and discipline

The key to successful implementation of our strategy is creating and strengthening a singular, aspirational Univar culture of outstanding people around the world dedicated to achieving our growth objectives.

One Univar means implementation of uniform systems and processes worldwide for routinely communicating and sharing best practices in all aspects of our business.

One Univar means attracting, training and developing the best people and incentivizing them to grow and perform at their very best.

One Univar means presenting a superior, consistent experience to customers and supplier partners in every market around the world.

Ultimately, One Univar means a team of people with a passion for excellence; a spirit of collaboration; the rigor and discipline to solve problems and create new opportunities; and pride in being part of the most valued chemical and ingredient distributor in the world.