About the ExchangeChemConnect's Online Auctions Deliver An Average Of More Than 1000% Return On Investment In Direct Raw Material Transactions
Buyers and sellers of chemicals and plastics optimize product costs and improve sales and purchasing decisions
San Francisco, CA (May 22, 2001) – ChemConnect Inc.,the company that operates the World Chemical Exchange, offering buyers and sellers of chemicals and plastics a dynamic online marketplace supported by strategic e-commerce services, today released new data that Members experienced an average of more than 1000% Return on Investment when procuring through ChemConnect's Corporate Trading Rooms, private online auctions, for short- and long-term contract negotiations.
Companies realized an average of more than 1000% return on the initial investment made to host Corporate Trading Rooms in Q4 2000 and Q1 2001. In addition, companies reduced negotiation time by an estimated fifty percent with buyers' average savings of 5-25% over market prices and previous contract prices. Both buyers and sellers from multiple industries such as chemicals, household products, plastics, packaging, paints and coatings and pulp and paper use Corporate Trading Rooms for the sales and procurement of direct raw materials. Corporate Trading Room's flexible technology allows participants to make purchasing and sales decisions, not only on price, but also on delivery terms, levels of service and product specifications.
Calculations to determine Return on Investment are based on index price or last contract price. Examples of companies who realized more than 1000% return on investment include:
- A Fortune 500 household products manufacturer realized a 1900% ROI on a
$ 6.0 million purchase of glycol - A leading specialty chemical company realized a 1500% ROI on a $ 3.0 million purchase of a petrochemical feedstock
- A top chemical manufacturer realized a 1700% ROI on a $ 3.0 million purchase of an alcohol
"We're experiencing increased demand for our Corporate Trading Room online auctions as more companies realize they can streamline processes, optimize product costs, and come to agreement faster, at win-win prices, with both new and long-term partners," said John Robinson, ChemConnect CEO. "With just a PC, a Web browser, and World Chemical Exchange Membership, companies can start realizing significant returns from e-commerce immediately."
As part of its auction offering, ChemConnect offers two levels of Corporate Trading Rooms support: Strategic Services and Basic Services. Strategic Services are a full-service offering that cover every detail related to an online auction, from scoping the product to assistance with assessing auction results and awarding the business. Basic Services are built around a proven online auction platform designed for chemicals and plastics, and allow companies to leverage their in-house chemical expertise and conduct repeat online auctions easily, efficiently and cost effectively. Both services offer proven methodologies, in-depth chemical market and e-commerce expertise and technology to achieve optimum auction results. ChemConnect's online e-commerce solutions are browser-based and the implementation costs are minimal, providing a fast track to e-commerce.
About ChemConnect
ChemConnect is a leader in helping customers optimize their purchasing and sales processes for chemicals, 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 7,500 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.
For more information, please contact:
Bob Osmond
UpStart Communications
(510) 457-3111
bosmond@upstart.com
Liz Youngs
UpStart Communications
(843) 881-5751
lyoungs@upstart.com
Note to Editors: ChemConnect is a registered trademark of ChemConnect, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.