MAJOR MERGER CREATES ONE OF OHIO’S LARGEST MINORITY-OWNED COMPANIES – FORMER CLEVELAND INDIANS STAR IN LEAD
ASW Services and GPI Procurement Services Merge; Economic Development Opportunities Created in Northeast Ohio
AKRON, Ohio (January 31, 2007) – Akron-headquartered ASW Services Inc., a leading supply chain management company, and Cleveland-based GPI Procurement Services announced a major merger today, creating career opportunities and economic growth potential in Northeast Ohio.
Changing its name to ASW Global, the company is focused on growth, capabilities and customer service. Previously having a regional focus, serving primarily the Eastern and Midwestern United States, ASW Global plans to expand its facilities and offerings to a global market through growth with existing blue-chip clients and strategic acquisitions.
During this change and into the future, ASW Global is committed to remaining headquartered in Northeast Ohio.
“Not only is Northeast Ohio my home, it is an exceptional environment for business growth in the supply chain industry,” said new ASW Global Chairman & CEO André Thornton. “This is a great location and it’s a sensible business decision to keep ASW Global headquartered here as it grows.”
The company has operations in the Ohio cities of Akron, Cleveland, Green and Mogadore, as well as Belleville, Michigan. With more than one million square feet in facility space, ASW Global employs more than 200 industry workers.
The announcement was made today at a press conference hosted by Akron Mayor Don Plusquellic. The city of Akron, through Mayor Plusquellic, is in discussions with ASW Global and the International Warehouse Logistics Association (IWLA) to create work force development in Northeast Ohio.
Under New Leadership
André Thornton is a well-known and highly successful Cleveland entrepreneur and former Cleveland Indians baseball star. He has taken the lead role as majority owner at ASW Global, and former majority owner, Phil Maynard, is now minority owner. This means that ASW Global now becomes one of the largest minority-owned businesses in Ohio.
Thornton’s experience includes his role as president and CEO of GPI Procurement Services as well as one of the founding principals of Apple Partners, a highly successful restaurant management group that was sold to Applebee’s International. Thornton was also featured twice in McGraw-Hill/Irwin national educational videos for his entrepreneurial and marketing leadership success at GPI Procurement Services.
In 1979, Thornton received the prestigious Roberto Clemente Award. This award is given to one Major League Baseball player per year in recognition of his character and charitable contributions to his community.
“Phil and I have similar values and beliefs as to how to lead a successful company. He grew ASW from the ground up to the success it is today. My entrepreneurial style and motivation have shaped the way I lead our family of companies. Therefore, the ownership changeover of ASW has been a seamless transition,” Thornton said. “I am passionate about customer satisfaction and our organization is committed to the highest level of customer service possible.”
Maynard said, “André has the knowledge, ability and perseverance to take ASW Global to the next level. He possesses rare skills that will enable him to grow the company’s capabilities globally, while remaining committed to each individual client.”
Mayor Plusquellic said, "We're really thrilled about this merger and about André Thornton making this investment; especially through a company that has been an integral part of our community for so many years. And even though competition for jobs among cities is fierce and worldwide now, this shows that some of the best opportunities are still in our own back yard."
Client Opportunities with ASW Global
ASW Global promotes the core competencies that deal with supply chain and logistical management. The company reduces supply chain management costs for its clients by offering organized, effective services, such as just-in-time inventory, which reduces inventory-related costs. It also assesses, designs and implements service solutions, and realizes innovative business ideas for clients.
ASW Global operates within Foreign Trade Zone #181, which allows for reduced tariffs on goods that cross borders. The supply chain management company has the ability and capacity to service virtually all logistical, warehouse, distribution and outsourcing needs. It is adept in information management, inventory, supply, transportation, production and property management.
Some of ASW Global’s clients include Wal-Mart®/Sam’s Club®, The Goodyear Tire & Rubber Company, Honda, KeyBank, Diebold Incorporated, The Davey Tree Expert Company, Cleveland Clinic, The Lubrizol Corporation and National City Corporation®.
"Sam's Club Logistics has enjoyed a partnership with the ASW team and we look forward to working with the new leadership of ASW Global, LLC," said Ana Maria Rodriguez, Director of Supplier Diversity for Wal-Mart Stores, Inc. "We are also excited to have the opportunity to broaden our diverse supplier network. Wal-Mart's Supplier Diversity program helps to expand and increase business relationships and opportunities with minority and women-owned businesses and further serves to strengthen our overall diversity commitment. Partnerships with ASW Global and other minority businesses have been and will remain critical in serving our customers."
“Having been involved in national procurement services for a number of years, I eagerly take the leadership of this highly successful supply chain management company,” Thornton said. “With its resources and reputation, I’m looking forward to the prosperous future that is ahead for ASW Global.”
Diversity Opportunities Offer Benefits to Businesses
The demographics in America are changing rapidly. In a land where the ratio of white to non-white inhabitants is 1.5-1 in persons aged 10 and younger (note the stark difference from Americans aged 70 and older, where the ratio is 5-1), according to an article from DiversityInc.com, an online news magazine that addresses the role of diversity in strengthening the corporate bottom line, businesses must take into account the percentage they spend with diverse suppliers. And the reasons reach far beyond ‘doing a social good.’
When working with diverse suppliers, such as ASW Global, businesses are working to satisfy their bottom lines along with the desires of customers, employees and government mandates.
Leading world-class procurement organizations that adopt supplier diversity programs at a higher rate than typical organizations are able to generate 133 percent greater return on the cost of procurement operations than average organizations. This drives an additional $3.6 million to the bottom line for every $1 million in procurement operations costs, according to recent research from The Hackett Group.*
Of DiversityInc.com’s list of top-10 companies in 2006, the average percent of procurement budgets allocated to Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) was 13.8. This number is substantially higher than that of businesses not on the top-10 list.
“Minority-owned businesses are often perceived as being too small to handle large business,” Thornton said. “That’s a myth I’m working hard to discredit with ASW Global, which has accounts with Fortune 500 companies such as Wal-Mart® and The Goodyear Tire & Rubber Company.”
Driving Work Force Development
In addition to the benefits it offers its clients, ASW Global is in communication with the city of Akron and International Warehouse Logistics Association, an international trade association of warehouse logistics providers, to create an initiative that creates employment opportunities for Northeast Ohio’s minority youths. The goal of this initiative is to provide training for jobs in the supply chain and logistics industries.
“We plan to work with André, Mayor Plusquellic and educational institutions to pilot this program in Northeast Ohio and then take it national,” said Joel Anderson, president and CEO of IWLA.
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HIGH-RES (300 DPI) VISUALS
To view and download high-res visuals (300 dpi) of André Thornton, Phil Maynard and the ASW Global logo, please go to http://www.aswservices.com/aswglobal/300dpi/.
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About ASW Global
Headquartered in Akron, Ohio, ASW Global is a supply chain management company that services logistical and warehousing needs worldwide. Focused on providing exceptional customer service and logistical capabilities, ASW Global serves such clients as Wal-Mart®,
Honda and The Goodyear Tire & Rubber Company. Led by Chairman & CEO André Thornton, a successful, award-winning, African-American businessman and former Major League Baseball star, ASW Global is one of the leading diversity suppliers in Ohio.
The company operates in Foreign Trade Zone #181, which provides tax and duty benefits for its clients, giving them a competitive advantage. With strategic locations in Ohio and Michigan, ASW Global has direct one-day access to more than 50 percent of the population throughout America and Canada, and boasts more than one million square feet of storage space. ASW Global can be contacted at www.aswservices.com or 888.363.8492.
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Wal-Mart and Sam’s Club are registered trademarks of Wal-Mart Stores Inc. National City Corporation is a registered trademark of National City Corporation.
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*The Hackett Group is a strategic advisory firm and an Answerthink company, and a world leader in best practice research. This information was taken from its August 17, 2006, news release: “The Hackett Group: Supplier Diversity Does Not Drive Increased Costs – World-Class Procurement Organizations That Turn to Women- and Minority-Owned Businesses Don’t Sacrifice Savings; Some Leaders Even See Role of Supplier Diversity in Driving Revenue Growth.”