Rinchem Is ATMI's Lead Logistics Provider, Cuts Costs

Problem

ATMI Inc., a leading manufacturer of specialty chemicals and gases for the semiconductor industry, was seeking a lead logistics provider who could help it to consolidate and reduce costs associated with its North America logistics network. As ATMI continued to increase in size, it realized that effective management of logistics activity would require substantial investment and potentially divert resources away from its core competencies. Partnership with a capable logistics provider would provide access to world-class systems, processes and expertise at a fraction of what ATMI would spend to acquire these capabilities internally. ATMI also desired a partner with chemical management expertise who could meet its specialized storage and transport requirements and insure compliance with all applicable regulations associated with the management of regulated chemicals and gases.

Solution

Rinchem was selected as a lead logistics provider to coordinate and manage all logistics related activities. Rinchem spearheaded an effort to evaluate logistics related costs, modes of transport, capacity utilization levels and opportunities for greater coordination. Rinchem also worked with ATMI to develop a set of key performance measures to monitor the health and performance of ATMI’s distribution network. During the first quarter of 2008, Rinchem focused upon consolidating and optimizing transportation from ATMI manufacturing facilities to the Port of Los Angeles.

Benefit

A six percent reduction in ATMI’s overall logistics cost is expected to be achieved when the optimization of shipments to the Port of Los Angeles is fully implemented. Through an ongoing process of logistics network improvement, Rinchem and ATMI hope to increase that percentage to at least eight percent by the end of 2008.