Elemica Acquires Optimum Logistics

e-Marketplace launching global multi-modal logistics platform for the chemical industry

Elemica Logo 577d6e5c5e0cb

Tempe, AZ — March 18, 2003 — Chemical industry e-marketplace Elemica is set to acquire a marine logistics provider in a bid to offer a global multi-modal logistics platform for the industry.

Elemica has signed a definitive agreement to acquire Optimum Logistics, a global marine logistics services provider to the chemical industry. Under the terms of the agreement, Elemica will acquire the full technology platform and the ongoing business operations of Optimum.

The e-marketplace said it would integrate Optimum's technology into the current Elemica platform to launch a global ground, rail, container and marine logistics solution for companies signed up for the Elemica Network, a service that automates processes by providing connectivity between industry trading partners at the enterprise resource planning (ERP-to-ERP) level.

Elemica also said that it would expand its network to include logistics service providers, terminal and warehouse operators, and freight forwarders.

The cornerstone of the Elemica Logistics solution will be the acquired TransLink application integrated with the Elemica Connected Solution. Together, they provide land and marine based transportation arrangement; logistics service provider and shipper Web-based visibility and data entry; supply chain event management, alerting and reporting; integration with online document preparation and management; and integration with shipper and logistics service providers' ERP systems.

This solution will be available through the Elemica Network as an Elemica hosted application. The marine solution is available today and Elemica expects the ground-based logistics offering to be available shortly in Europe and North America as Elemica is expecting to go live with their first shipper customer in April 2003.

Commenting on the acquisition, Elemica Network member Rick Gerardo, vice president of global supply chain at The Dow Chemical Co., said: "We view the acquisition of Optimum Logistics by Elemica as a positive move for the chemical industry. Dow currently uses this solution as part of a joint venture and is enthused that Elemica will integrate this logistics platform into the Elemica offering."

"In order to fully realize the benefits of any logistics solution it must be integrated into the shippers' ERP system, connected to every logistics service provider and linked to the supply chain and order processing business processes," said Chuck Gruber, Elemica's senior vice president of global supply chain and logistics. "As we worked with Optimum's offering in the maritime environment, it became obvious that the same functionalities could be applied to other modes. Our shipper members' told us they wanted a globally consistent 'look and feel' and a standard set of capabilities across all modes and geographies. We then realized we could best deliver those capabilities by aligning even more closely with Optimum Logistics."

Optimum clients will benefit from the acquisition, too, Elemica pledged. Jeffrey Hemmer, vice president for supply chain at Optimum client Lyondell Chemical Co., noted that his company had worked extensively with Optimum Logistics to develop a marine logistics information solution. "We ... believe it has tremendous potential to become the leading multi-modal technology solution for the chemical industry," Hemmer said.