Chemunity - Pragmatic Procurement of Chemicals

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	ChemUnicator - Issue 12 - November 2001 The total value of purchased goods for a manufacturing company normally exceeds 50% of turnover, so savings have a major impact on profitability. For an average chemical company 1% savings in costs of goods purchased will increase net profit by 5%. Improved sourcing is recognized as one of the best options to obtain savings in purchase spend. With a history of unsuccessful IT implementations however, companies are hesitant to commit large amounts of money to projects with unclear ROI. In today's difficult economic climate companies insist on payback periods of less than a year. ChemUnity offers tools for coordinated sourcing of direct goods. The Sourcing Portal compares favorably to other business process automating software by any financial standard, as the implementation costs are very limited. The typical payback is less than six months. To evaluate the savings potential in purchase spent for direct materials ChemUnity has developed a pragmatic Procurement Quick Scan for the chemical industry. Experience has learned that purchasing of strategic materials is normally highly optimized, but there is an untapped savings potential in the rest of the portfolio. If you want to know more about the possibilities of a Purchasing Scan for your organization please contact Mark-Jan Terwindt, CFO ChemUnity at mt@chemunity.com, or call +31 26 8446000. Yours sincerely, Mark-Jan Terwindt CFO ChemUnity