RealTime IT News

Virtual Logistics Company Formed for Chemical Industry

Eastman Chemical Co. and Global Logistics Technologies Inc. (G-Log,) a developer of Internet-based logistics systems for the transportation industry, formed a new company called ShipChem.com, a virtual logistics provider for the chemical industry.

ShipChem.com will address the high cost of transporting raw materials and hazardous materials in the chemical industry, the companies said, offering a logistics gateway to member companies -- chemical manufacturers, distributors, carriers and third-party logistics companies -- that will enable them to decrease the costs and risks associated with transporting goods while improving customer service.

"While some recently announced Internet companies provide a mode specific or regional focus, ShipChem.com will provide a global logistics solution for chemical and plastics manufacturers and distributors," said Barry Dale, president and chief executive officer of ShipChem.com.

Dale said that G-Log's e-logistics software infrastructure provides a neutral solution that addresses inefficiencies in the traditional chemical industry supply chain.

Eastman, a $4.5 billion company that manufactures and markets chemicals, fibers and plastics, plans to outsource its logistics operations to ShipChem.com when the new company opens for business in the second quarter of this year.

"Our arrangement allows Eastman to focus on our core businesses while committing global logistics solutions to ShipChem.com," said a spokesman.

G-Log was founded in May 1999 to develop a new generation of Internet powered logistics/fulfillment software for manufacturers, distributors, 3PLs, and retailers. In addition to its Global Command and Control Center, G-Log offers a Web-based subscription service through its e-Logistics Portal.