Del Monte and Pacer Ink Global Logistics Pact; Pacer Will Manage Deliveries to More Than 2,800 Distribution Centers and Retail O
July 19 2005 - 8:00AM
Business Wire
San Francisco-based Del Monte Foods and Pacer International, Inc.
(Nasdaq:PACR), the Concord-based North America logistics and
freight transportation provider, said Pacer's supply-chain services
unit will provide comprehensive logistics services to Del Monte.
Del Monte, one of the country's largest and best known producers,
distributors and marketers of premium quality, branded and private
label food and pet products, generated more than $3 billion in net
sales in fiscal 2004. According to Sourabh Roy, vice president of
Transportation and Logistics for Del Monte Foods, "The new
multi-year agreement is aimed at improving the reliability of Del
Monte's deliveries to our customers, while reducing long-term
distribution costs." He said the Supply Chain Services division of
Pacer Global Logistics, based in Dublin, Ohio, will help manage
deliveries of Del Monte products from more than 30 plants and
distribution facilities to more than 2,800 customer distribution
centers and retail outlets annually, using its multi-modal
expertise and web-enabled tracking capabilities. "Pacer will handle
virtually every Del Monte product that the American consumer can
find on a retail shelf," said Mike Fielden, president of the Supply
Chain Services division. The division will manage the contract and
will serve as Del Monte's single point of contact. "In the
process," he said, "Pacer will manage or directly provide service
using every appropriate transportation mode -- whether intermodal,
highway (truckload), ocean, or conventional rail." Key to Value
"One of our unique strengths in this arrangement is that Pacer can
leverage all the freight transport and logistics capabilities that
already reside in the Pacer International group, as well as using
other providers, in an effort to provide the most cost-effective,
reliable service possible for Del Monte," said Fielden. "This is
the key to maximizing value for both parties." Pacer
International's chief executive officer, Don Orris, said: "We are
delighted with the confidence Del Monte has placed in Pacer's
ability to further strengthen the national Del Monte distribution
network. Along with product quality, effective distribution has
been one of their hallmarks." He added: "Our goal is to add value
to this distribution network and drive greater customer
satisfaction for Del Monte and its customers." Both Del Monte and
Pacer extolled the agreement for its strong emphasis on
collaboration. "We will engage in joint planning of future
distribution requirements so that, with Pacer's support, Del Monte
can drive its business forward. We will accordingly share in
cost-savings that will be generated through our close
collaboration," said Del Monte's Roy. Specific Services Pacer will
provide a wide range of third-party logistics services for Del
Monte, basically handling the movement of all food and pet
products, including refrigerated and frozen products, between
production or packing plants; Del Monte and customer distribution
centers; and in many cases, to the ultimate point of sale. The
agreement includes imported as well as domestic products.
Specifically, Pacer will receive and manage product orders
electronically; negotiate rates and tender shipments to carriers;
manage and track shipments; verify deliveries; evaluate and pay
carriers; manage claims transactions; and provide operating and
financial performance reports to Del Monte management. Fielden
noted that the entire operation will essentially be managed without
paper, other than exception-based reports. Concluded Sourabh Roy of
Del Monte: "While Del Monte has long been recognized for its
national distribution capabilities, these are challenging and
competitive times, and our quest for further improvement is strong.
With driver shortages, security issues, capacity and congestion
concerns and other uncertainties, we are especially pleased to have
a third-party logistics industry leader as our distribution
solutions provider." ABOUT DEL MONTE FOODS -- Del Monte Foods
Company (NYSE:DLM) is one of the country's largest and most
well-known producers, distributors and marketers of premium
quality, branded and private label food and pet products for the
U.S. retail market, generating over $3 billion in net sales in
fiscal 2004. With a powerful portfolio of brands including Del
Monte(R), Contadina(R), StarKist(R), S&W(R), Nature's
Goodness(TM), College Inn(R), 9Lives(R), Kibbles 'n Bits(R),
Pup-Peroni(R), Snausages(R), and NawSomes!(R), Del Monte products
are found in nine out of ten American households. For more
information on Del Monte Foods Company, visit the Company's Web
site at www.delmonte.com. ABOUT PACER INTERNATIONAL -- Pacer
International, a leading non-asset based North American third-party
logistics and freight transportation provider, offers a broad array
of logistics and other services through its subsidiaries and
divisions to facilitate the movement of freight from origin to
destination. Its wholesale services include Stacktrain
(cost-efficient, two-tiered rail transportation for containerized
shipments) and cartage (local trucking) services, and its retail
services include intermodal marketing, truck brokerage, truck
services, warehousing and distribution, international freight
forwarding, and supply-chain management services. Pacer
International is headquartered in Concord, California. Its business
units Pacer Stacktrain and Pacer Global Logistics are headquartered
in Concord, California, and in Dublin, Ohio, respectively. Web
site: www.pacer-international.com.
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