ShipChem.com Eastman Sends Chemical Distribution to the Web
Mar 1, 2000 12:00 PM
Eastman Chemical Company has taken a radical new step in announcing that it is outsourcing its distribution operations to a newly formed internet logistics company. Eastman's own distribution department has been virtually eliminated.
Eastman has partnered with Global Logistics Technologies Inc (G-Log) to form ShipChem.com. The new company will be positioned as a virtual logistics provider for the chemical industry.
ShipChem.com is being founded to address the high cost of transporting raw materials and hazardous materials in the chemical industry. The company will offer an internet portal-based logistics gateway to member companies, consisting of chemical manufacturers, distributors, carriers, and third party logistics companies. It will enable them to significantly decrease the costs and risks associated with transporting goods while improving visibility and customer service around the globe.
Barry Dole, president and chief operating officer of ShipChem.com said, "While some recently announced internet companies provide a mode-specific or regional focus, ShipChem.com will provide a global logistics solution for chemical and plastics manufacturers and distributors."
G-Log's e-logistics software infrastructure provides a neutral solution that addresses inefficiencies of the traditional chemical industry supply chain. Dale added that ShipChem.com will allow both chemical producers and logistics service suppliers to collaborate without losing their individual status or identity in the supply chain.
Scott Yetter, ShipChem.com's vice-president of market alliances, said, "ShipChem.com's customizing options will allow customers to choose and pay only for those services they need. Customers may choose their desired level of service-from single shipment transactions for a nominal fee to outsourcing total logistics services as Eastman will do."
Terry K Begley, Eastman's vice-president of global customer supply chain, confirmed that Eastman plans to outsource its logistics operations to ShipChem.com when the new company opens for business in the second quarter of this year. "Our arrangement allows Eastman to focus on our core businesses while committing global logistics solutions to ShipChem.com," he said.
"We expect that a growing community of chemical manufacturers will join us in using Internet-based logistics solutions that result in superior customer service." Begley said. He noted that as more companies invest in ShipChem.com, it would become a neutral logistics portal with no company holding a majority ownership position.
Dale said ShipChem.com would begin marketing its services to potential customers immediately and that he expects to attract interest and activity from all sectors of the chemical supply chain because of its flexibility and neutrality.
Since ShipChem.com is designed for the chemical industry, member companies can be assured that logistics knowledge specific to the industry is part of Dole and Yetter's backgrounds. Combined they have over 40 years of experience in the chemical industry and logistics.The establishment of ShipChem.c om's e-logistics portal provides a solid foundation from which manufacturers and distributors can manage their transportation activities as a single integrated global process. In addition to enabling secure customer access and providing on-line services, ShipChem.com will offer planning and management services for those organizations that want to outsource all or part of their logistics operations.
With headquarters in Shelton, Connecticut, Global Logistics Technologies, Inc (G-Log) was founded in May 1999 to develop a new generation of Internet powered logistics/fulfillment software for global manufacturers, distributors, 3PLs, and retailers. G-Log's e-logistics solutions enable global management of all orders and shipments, both domestic and international, as a single integrated global logistics business process across the multi-enterprise supply chain. In addition to the Global Command and Control Center, G-Log offers a web-based subscription service through its e-Logistics Portal.
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