Verbund is a supply chain method created by BASF, the world’s largest chemical company. In its website, BASF describes verbund as:
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The Verbund system creates efficient value chains that extend from basic chemicals right through to high-value-added products such as coatings and crop protection agents. In addition, the by-products of one plant can be used as the starting materials of another. In this system, chemical processes consume less energy, produce higher product yields and conserve resources. In that manner, we save on raw materials and energy, minimize emissions, cut logistics costs and exploit synergies.
According to this review by Forbes, verbund has a significant impact on the efficiency of BASF supply chain processes.