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Chemical Suppliers Grow By Helping Customers Reduce Costs, Shows Industry Survey
- Publisher：
- Publication：2009/11/9
CMS providers partner with customers to manage their entire chemical lifecycle and create savings by leveraging purchases
According to the CMS Industry Report 2009, Chemical Management Services (CMS) providers reported 30% revenue growth per year between 2006-2008 by helping their customers significantly reduce their chemical use, waste, and emissions.
Projections indicate that the global market is expected more than triple in the next 5 to 10 years. The estimated current market in the NAFTA region is approximately $1 to $1.2billion.
According to the report survey data, customers have realised hard savings as high as 40 to 50% in the first year of their CMS programme and continue to see savings five to 10 years into their programme.
Reportedly, the customers surveyed for the report represent diverse industries and companies, including: Intel Corporation, Lockheed Martin Corporation, Chrysler Group, Delta Air Lines, Ford Motor Company, United Technologies Corporation, Pacific Gas and Electric Company, Seagate Technology, and a US Department of Energy research lab, among others.
Ralph Gerrard, business development manager at Yorkshire Chemical Focus, said: “We see this as a tremendous opportunity to provide sustained value for industry in the UK. Under the CMS concept, chemical suppliers are developing their business models to focus on providing high value services rather than more volume. CMS providers partner with customers to manage their entire chemical lifecycle and create savings by leveraging purchases, improving inventory management, reducing chemical use and waste, and enhancing IT infrastructure.”
Scott Little, global commodity manager for United Technologies Corporation, said: “key aspect of a CMS provider’s successful value proposition and longevity is devoting strategic leadership and focusing resources to drive cost out of the customer’s chemical supply chain, evolving from moving transactions to moving markets through the power of aggregated leverage.”
SOURCE: web of pharmaceutical business review
According to the CMS Industry Report 2009, Chemical Management Services (CMS) providers reported 30% revenue growth per year between 2006-2008 by helping their customers significantly reduce their chemical use, waste, and emissions.
Projections indicate that the global market is expected more than triple in the next 5 to 10 years. The estimated current market in the NAFTA region is approximately $1 to $1.2billion.
According to the report survey data, customers have realised hard savings as high as 40 to 50% in the first year of their CMS programme and continue to see savings five to 10 years into their programme.
Reportedly, the customers surveyed for the report represent diverse industries and companies, including: Intel Corporation, Lockheed Martin Corporation, Chrysler Group, Delta Air Lines, Ford Motor Company, United Technologies Corporation, Pacific Gas and Electric Company, Seagate Technology, and a US Department of Energy research lab, among others.
Ralph Gerrard, business development manager at Yorkshire Chemical Focus, said: “We see this as a tremendous opportunity to provide sustained value for industry in the UK. Under the CMS concept, chemical suppliers are developing their business models to focus on providing high value services rather than more volume. CMS providers partner with customers to manage their entire chemical lifecycle and create savings by leveraging purchases, improving inventory management, reducing chemical use and waste, and enhancing IT infrastructure.”
Scott Little, global commodity manager for United Technologies Corporation, said: “key aspect of a CMS provider’s successful value proposition and longevity is devoting strategic leadership and focusing resources to drive cost out of the customer’s chemical supply chain, evolving from moving transactions to moving markets through the power of aggregated leverage.”
SOURCE: web of pharmaceutical business review