EAC’s strategic business, EAC Industrial Ingredients, has set up distribution services in Singapore. The company has thus taken yet another important step towards becoming a full-service regional distributor covering all major markets in South East Asia. An agreement has been made with the first partner for distribution in Singapore, and negotiations are under way with several others.
Jan Dam Pedersen, CEO of EAC Industrial Ingredients, explains the background:
“We have had an office in Singapore since 1992, providing administrative and accounting support for our operations in the region, but with effect from October 1 we have set up proper sales, logistics and warehousing facilities. The new unit represents another strategic arm in the development and co-ordination of our activities.
We have already made an agreement with one of our existing partners – the British Avecia, which was formerly part of the ICI Group. Avecia produces biocides, an additive which prevents the development bacteria, fungus, algae and similar growths in wet materials such as paint, cleaning fluids, etc. We already co-operate with Avecia in several other countries in the region, and the new unit will enable us offer them our whole range of services in Singapore as well,” says Jan Dam Pedersen, who is applying the same strategy to a number of the company’s other existing partners – and negotiations are currently going on with a number of other partners. There would seem to be a sound economic basis right from the outset but Jan Dam Pedersen has wider intentions with the new central business unit.
He says: “In the long term we envisage Singapore playing a key role in our supply chain. As in the case Avecia, it is important for a number of our other partners that we can co-operate in several countries the region. In practical terms, products are currently imported into individual countries in the region and we handle onward distribution at the national level”.
“We are currently pursuing a strategy which would enable us to operate a central supply chain into South East Asia. Products where there is sufficient scale will continue to be channelled directly to individual markets, whereas speciality products, which are sold in small quantities may be imported in full container loads into the region, for example to Singapore. From here we can redistribute the products to the rest of SE Asia as customer demand require. It could give our partners and us the economic benefit of scale, which would in turn strengthen our competitive position in the region. Moreover, it will contribute to increase our stock turnover while at the same time improving customer service.”
The new strategic unit in Singapore is managed by a strong team including Jonathan Lau, who is responsible for sales and marketing, and Katherine Koh, whose areas of responsibility are finance, accounts, customer service and administration.