2005: Elemica quadruples transactions, becomes profitable
"Business is growing dramatically," says CEO. New executive team named.
Transaction hub Elemica last year maintained its trend of doubling volume about every six months, announced Chief Executive Officer Mike McGuigan, with estimated total transaction value climbing to more than US$35 billion1. McGuigan, who became Elemica’s CEO in June 2005, added that the company was profitable for the June-December period. “Our plan was to break even,” said the former BP executive, “but we outperformed our plan and made a profit.”
2006 promises to be a profitable year, McGuigan added, thanks in part to new customers and new offerings.
“New customers have been signing on faster than ever,” noted McGuigan. “And we also are in discussion with more prospects than ever.” Such lively interest, McGuigan reckoned, is being sparked by three factors. One, in 2005 Elemica dropped its entry-level price substantially. Two, in contrast to alternatives, Elemica offers a single, integrated platform. “When we say ‘connect once, connect to all’ we really mean it,” McGuigan said. And three, Elemica – which last year celebrated its fifth birthday – has become a permanent fixture in the business landscape. Said McGuigan: “Customers tell us that they could not operate without Elemica. Our business value and the operational improvements we enable are sustained and real.”
On the product front, Elemica plans to launch a new product to handle 3rd-party storage transactions. Just as customers can buy, sell, arrange logistics and handle numerous other operational tasks through an Elemica connection, soon they also will be able to arrange thirdparty storage and warehousing. In addition the company plans to offer substantially more in the area of electronic invoicing. For example it will launch digital-signatures for invoices – software that allows electronic invoices to carry digital signatures. This will enable further use of electronic invoicing by Elemica’s customers in the European Union.
A new leadership team also has been named to take Elemica forward. Joining McGuigan on the company’s executive committee are: Scott duFour, recently appointed as Chief Operating Officer, Americas; Scott Miltenberger, Chief Financial Officer; Alok Saxena, recently named as Chief Technology Officer; and Brad Delizia, General Counsel and Executive Vice President of Business Development. All members of the team have been with Elemica for at least 4 years.
ELEMICA is a neutral information network for order processing and supply chain management of contract and repeat transactions. The company offers products that enable buyers, sellers and service providers to streamline business processes and to collaborate – which lead to substantial savings. ELEMICA was established by 22 leading chemical companies.
