| Austin Chemical Company: Platform of Growth |
| Manufacturing | |||
| Written by Amanda Gaines | |||
| Tuesday, 01 April 2008 | |||
 Chairman and CEO Sam Ponticelli outlines this allied chemical and pharmaceutical industry service provider’s strategy for growth.
 Sam Ponticelli, Chairman and CEO Four-tiered offering Having been with the company since 1982, Ponticelli had an intimate understanding of ACCI and wanted the company to increase its focus on capabilities it had developed from its initial service offering. In 2007, he provided a four-tiered product platform to the company’s board, the first tier of which was sourcing and procurement. ACCI was one of the pioneers of sourcing and procurement activities, starting with its relationship with Dow Chemical in 1992. At the time, Dow defined a need that it could better satisfy through outsourcing. ACCI’s focus was to support and enhance the developmental programs of the multiple Dow business units. Just as in 1992, Ponticelli saw the importance of being an asset extension of a customer in addition to being a supplier. “Sourcing and procurement enables ACCI to market itself through the sale and execution of such contracts,” he said. “It’s a tangible product.” Distribution was the second tier of Ponticelli’s growth platform. The company’s fee-oriented distribution service offering includes importation (when appropriate), warehousing, LTL (less than truck load) shipping, invoicing, and collection. At its peak, ACCI handled as many as 800 containers per year; its current handling is between 200 and 300 containers per year. The third tier is logistics support. For ACCI customers, logistics support includes global supply of raw materials to contract research and manufacturing companies, as well as export of the value-added material to the customer’s specific location. ACCI’s systems, procedures, and personnel provide professional support and expertise in international transport regulations. This fee-based contractual arrangement is primarily used for moving products into and out of Southeast Asia. “Negotiations with customs authorities allow fluid movement of product to enhance and accelerate the customer’s developmental program,” said Ponticelli. “Singular export and import entries have been allowed for sample kits of several hundred compounds.” For a brief period of time, Ponticelli left ACCI and further studied the need for these services within the industry through the formation of his own company. During this time, he also attached himself, based on industry contracts, to a consulting company and began to offer a full range of services pertaining to development, manufacturing, regulatory, licensing, and investment needs. Upon his return to ACCI, a business plan was created with a focus on such service-related products. “These were all service-related products that didn’t include direct chemical sales,” he said. “It was still important to provide global supply of chemicals while creating an expanded identity based on services products offerings.” Past, present, and future ACCI is close to completing its restructuring but has not forgotten what secured its place in the industry: products and information. Industry personnel continue to use the company’s Web site for information because they know they can trust what they see. Even today, the company’s Web site receives an average of 42,000 hits per month. By partnering that expertise with its new product offerings, ACCI is an asset extension meeting the ever-changing needs of the pharmaceutical and allied chemical industry. “ACCI has developed an identity as a cost-effective alternative to companies putting their own personnel on the ground in China, India, and the United States by providing the necessary support required by both customers and suppliers,” said Ponticelli. Although headquartered in Buffalo Grove, Ill., ACCI has offices in Shanghai, China and Chennai, India, which means ACCI employees can skillfully tackle international transportation regulations. “We’re well connected within the industry and can bring business forward on behalf of major multinational pharmaceutical and health science companies,” said Ponticelli. “It is equally important to have people on the ground to bridge any business culture differences to achieve the best result.” The current challenge, he said, is to define and continually update which suppliers would provide the best products and services associated with speed, quality, and cost of goods. In 2007, ACCI redefined its supplier relationships. The company has since been meeting with its customers, presenting its own service value products, and reintroducing its global supplier base and respective capabilities. As customers’ needs increase and outsourcing dominates supply chain strategies, ACCI hopes to utilize its historical and growing knowledge to effectively provide practical solutions. “We’ve created a business analysis and trending model, analyzing the activities of our customers in an attempt to define future industry supply chain strategies,” said Ponticelli. “This detail gives credibility to ACCI in building relationships with its manufacturers, helping them to better identify investment and expansion strategies.” |
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© 2008 American Executive - RedCoat Publishing. All rights reserved.
American Executive is a RedCoat Publishing publication.
American Executive is a RedCoat Publishing publication.
