Houston — April 29, 2003 — Chemicals e-marketplace survivor ChemConnect this week unveiled a new offering designed to optimize the purchasing of smaller volumes of product by consolidating them in logical lots as a means to increase buying power.
ChemConnect said that its Leveraged Procurement Solutions evolved from member-specific events managed by ChemConnect and offers a way for customers to streamline smaller volume purchases.
The growth of online procurement for chemicals, plastics and related indirect purchases such as logistics and packaging materials has contributed to the optimization of purchasing and sales processes, the e-marketplace said, but to date, activity has been predominantly focused on large-scale purchases.
However, Leveraged Procurement Solutions offers procurement organizations the opportunity to realize value by aggregating and organizing smaller-value products into manageable and repeatable auction events. ChemConnect's team of domain experts helps members identify goods they may not have considered for online negotiation, and devises and manages aggregation strategies as a means to create larger multiple product lots to drive supplier interest.
For buyers, ChemConnect's service team provides strategic management to help develop effective events. The e-marketplace said that sellers benefit from the consolidation of smaller sales into larger lots, converting what have traditionally been viewed as non-strategic sales into more attractive opportunities. Both buyers and sellers benefit from a streamlined process, resulting in time-savings and optimized internal resources, ChemConnect said.
Ed Snyder, vice president for global sourcing at ChemConnect customer H.B. Fuller, a specialty chemicals company, said that Leveraged Procurement Solutions has allowed his firm to aggregate purchases, control costs and keep its processes efficient.
"ChemConnect provided excellent management of the event from start to finish while demonstrating a genuine understanding of our market, supplier base and industry, delivering ROI well in excess of our expectations," Snyder said.