ChemConnect Doubles Volume in 2002.Business Editors/Technology Writers HOUSTON--(BUSINESS WIRE)--Jan. 21, 2003 Successful integration of acquisitions and increased adoption contribute to $8.8 billion transaction volume; major boosts to product liquidity, connectivity among chief accomplishments ChemConnect Inc., a leader in helping customers optimize their purchasing and sales processes A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. for feedstocks, chemicals, plastics, and related products, today announced business highlights for 2002, a year in which ChemConnect doubled its pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma transaction volume over 2001 with 16,000 transactions valued in excess of $8.8 Billion USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. . 2002 also saw Membership reach more than 30,000 individuals in 150 countries. The year began with the acquisition of CheMatch, quickly followed by ChemConnect's move to Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , in order to be closer to its customer base. Shortly thereafter, ChemConnect acquired the natural gas liquid (NGL NGL - A dialect of IGL. ) Trading Platform of Altra Energy, known as Chalkboard. These strategic moves were designed to bolster product liquidity and, in October, the company completed the integration of these acquisitions by launching its Commodity Markets Platform, which supports the physical and financial trading of NGLs and commodity chemicals, such as aromatics, oxygenates, and olefins. Using ChemConnect's online auctions, Members completed more than 1,000 product negotiations. Of particular note was an increase in sell-side auctions -- comprising over 40% of the total -- as suppliers embraced ChemConnect as a cost-effective sales channel to reach current and new customers. On the purchasing side, a number of customers expanded their use of ChemConnect's online reverse auctions making them an integral part of their procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. process, with the intention of moving more than half of their direct material spend through ChemConnect auctions. In addition, new personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. features allow Members to track only the products they buy or sell. Using these features on the Trading Center, Members actively follow more than 4,700 different products to determine market conditions and identify new business partners around the world. ChemConnect Connectivity solutions continued to expand in 2002 as the company announced a strategic partnership with GE Operation Services, now Intellitrans, for vendor managed inventory Vendor Managed Inventory (VMI) is a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's (VMI VMI Virginia Military Institute VMI Vendor Managed Inventory VMI Vertical Motion Index VMI Valtakunnan Metsien Inventointi (Finnish: National Forest Inventory) VMI Video Module Interface ) tracking and management. Also, ChemConnect and Global eXchange Services (GXS GXS Global Exchange Services (GE) GXS Gun X Sword (anime) ) are exchanging electronic documents through a hub-to-hub connection enabling the transfer messages between thousands of trading partners within and outside the chemical industry. In 2002, more than 30 companies exchanged in excess of 250,000 messages via the ChemConnect hub. ChemConnect CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. John K. Robinson attributes the success of 2002 to the company's team of professionals and the commitment of ChemConnect Members to drive business improvement in a down economy. "In a year characterized by caution, we've made tremendous progress, thanks in no small part to the vision of our customers who continue to use ChemConnect in their push to achieve operational efficiency," Robinson said. "The acquisitions and strategic partnerships we have made combined to promote product liquidity and build bridges to our customers' trading partners in other industries. We are pleased that we have helped to deliver value to our customers in 2002, and we are committed to building on this success in the year ahead as we continue to work with our Members to optimize their sales and purchasing performance." About ChemConnect ChemConnect is a leader in helping customers optimize their purchasing and sales processes for chemicals, feedstocks, plastics, and related products through a unique combination of market information, industry expertise, e-commerce solutions, and an active network of trading partners. More than 9,000 Member companies in multiple industries around the world can use ChemConnect's highly efficient tools and services to streamline transactions and lower costs. Visit www.chemconnect.com for more information. |
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