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This was written as a news item for a corporate e-newsletter
distributed to clients, prospects and editors of industry
trade publications.
The Chemical Credit Industry at the Forefront
of Growing Trend in Globalization
Buffalo, NY - ABC-Amega Inc., headquartered in Buffalo,
New York, is a respected global commercial receivable management
firm and industry credit group managing firm. With its involvement
in international credit since 1960, ABC-Amega is stepping
forward as a key player in facilitating a ground-breaking
trend spearheaded by the chemical credit industry.
As globalization continues to dominate discussion in all
economic sectors, the chemicals manufacturing industry is
positioned as the vanguard of the trend to share information
across international borders. Their bold strategy for succeeding
globally involves sharing commercial accounts receivable information
and benchmarking data with competitors and presenting educational
programs or mentoring overseas when the opportunities arise.
In December 2005, Chinese government industry associations
in Shanghai together with FCIB-China, (an organization formed
by agreement with ABC-Amega) hosted the Second China International
Credit & Risk Management Conference. Celanese Corporation
Credit Director, Tim Thomann, presented a case study on Global
Credit Management in the Chemical Industry.
The study illustrated the global mission of managing credit
as a component of financial shared service centers. Thomann
explained that "the main objective of the credit function
is to support the sales and marketing efforts of the company
while simultaneously minimizing customer delinquency, risk
and bad debts." Benchmarking has an integral position
in this function. Credit industry groups carry this forward
by interacting with competing organizations through involvement
in groups such as the Credit Research Foundation and the National
Chemical Credit Association for education, networking and
the exchange of customer information.
The National Chemical Credit Association, which has existed
since 1938 to facilitate the exchange of commercial credit
information and provide education to members, has taken the
lead in promoting a forum for the global chemical credit community.
The Chinese Government is especially active in support of
dialogue and exchange that promote education in western style
credit management.
As credit group manager for the NCCA, ABC-Amega has participated
in and facilitated a number of forums helping to set the industry
on the fast-track of this important trend in globalization.
In May 2004, The NCCA Executive Board hosted a meeting for
a delegation from the Peoples Republic of China for the purpose
of sharing the concept of business credit systems, including
industry specific credit groups, utilized by U.S. Chemical
Companies.
In March of 2005, Mr. Chen Hao-Ran, Executive Director and
Chairman of China Chamber of Commerce of Metals, Minerals
& Chemicals Importers & Exporters (CCCMC), provided
a teleconference presentation on the status and trends of
the Chinese Chemical Industry to attendees of the NCCA Educational
Conference. Mr. Chen acknowledged that ongoing reforms within
the Chinese banking industry will accelerate the pace of market
entry for Chinese chemical companies. He feels that the establishment
of a Chinese chemical credit association, operating similarly
to the NCCA, is an important component of progress.
In February 2006, chemical credit industry representatives
from Europe, China and other parts of Asia will participate
in the 55th Annual NCCA Educational Conference in Tucson,
AZ. William Bastiaan, former Chairman of FCIB-Global, will
facilitate an interactive benchmarking session. Mr. Chen and
a delegation from CCCMC will provide an update to trends within
the Chinese chemical industry along with an update of the
progress of banking reform. Dr. Hans Belcsak, President-S
J Rundt & Associates, will lead the discussion of international
accounts.
The explosion of China as not only a major producer, but
also the largest growth market for chemicals, has credit managers
from around the globe scrambling to learn how to manage sales
in emerging markets. Credit professionals from U.S. chemical
companies see an opportunity to participate in the evolution
of the Chinese credit system, elevating the level of global
standards and practices.
As the Chinese economy continues to progress toward a market-driven
system, credit is recognized as the crucial function. Naturally,
the training of managers in the discipline of credit continues
to be a high priority. Chemical manufacturing in China, being
a relatively mature industry comprised of a small number of
large companies, is well poised to explore the benefits of
this exchange.
The European chemical industry also supports a professional
credit association, The European Chemical Credit Association.
The ECCA has established an effective network connecting credit
professionals from all of Europe. While not interchanging
commercial receivable data at this point, the ECCA is considering
an initial foray into a comprehensive benchmarking project
- the first of its kind.
Other parts of Asia are beginning to become part of this
growing trend. David Herer, CEO of ABC-Amega, service provider
to the NCCA, has recently met with leading chemical industry
representatives in Japan, inviting them to explore relationships
with existing credit industry groups. "As globalization's
impact expands, competition between Japanese companies and
foreign countries will intensify. To compete successfully,
Japanese companies must gain access to information and education
provided to credit professionals through associations like
the NCCA."
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