The chemical industry is a key industry in many developed countries. As a raw material supplier for almost all other industries it is definitely one of the most important industries in the world. Companies in the chemical industry are faced with a very high level of competition, volatile and difficult to estimate customers requirements, hardly predictable demand, inflexible and complex production processes, and the particular chemical supply chain which influences all activities hence its profitability. Since the market for chemical products is highly competitive, the focus lies heavily on prices. This thesis provides an overview of the supply chain and its challenges of the chemical industry as a part of the process industry. One of the main challenges which is discussed in this thesis is that the customers requirements have to be satisfied as quickly as possible with minimal inventories while increasing service level. Another crucial challenge is that the chemical production is only cost efficient if all plants and capacities are fully utilized. The first part of this thesis contains a thorough literature research, whereas for the second part, interviews with experts were made and they were asked to fill in a questionnaire, in order to gain valuable and applicable insights from practical experience. The findings show that all service level factors are very important for the chemical industry but the ultimate goal should be to offer or to reach the best possible price-performance ratio.