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For further information, please contact:
Joe Ciolino
AmeriQuest Transportation and Logistics Resources Corp.
(856) 773-0600
jciolino@ameriquestcorp.com
Stu Zlotnikoff or Julie Ecker
National Grocers Association
(703) 516-0700
Szlotnikoff@NationalGrocers.org
Bob Gatty
Food Distributors International
(703) 532-9400
robertg@fdi.org
N.G.A.,
FDI Combine in
New Transportation Procurement Service
Operated By Ameriquest
Cherry Hill, N.J. -- August 1, 2001
-- Food Distributors International (FDI) and National Grocers
Association (N.G.A.) announced today that they are partnering with
AmeriQuest, the transportation and logistics company based here,
to launch a powerful new buying service that will save member companies
that operate truck fleets millions of dollars in lower prices and
new efficiencies. The new service, www.foodfleetxchange.com,
opened for business today.
FoodFleetXchange allows grocery retailers
and wholesalers and their suppliers to buy all major brands of tires,
lubricants, batteries, brakes, engines, transmissions, tools, truck
bodies, shop tools, lift trucks and more at improved pricing levels.
This is accomplished through the added volume represented by the
fleets of the two associations in combination with existing AmeriQuest
users.
"This is a major development for
the food industry and our members," said FDI president John
R. Block. "Fleet operations is one of the largest costs for
wholesalers and foodservice distributors, and by aggregating the
buying power of our two associations combined with the 81,000
power units served by AmeriQuest FoodFleetXchange can provide
national pricing that will mean significant savings to even our
largest members."
"Members and affiliates of N.G.A.
participating in the AmeriQuest service will have access to similar
pricing and purchasing economies of scale previously available only
to the nations largest retailers and manufacturers,"
said Thomas K. Zaucha, president and CEO, N.G.A. "The service
will help level the playing field for the fleets of N.G.A. members
and other participating suppliers."
An important consideration for fleet
managers is that their vendor relationships will not be affected
by using the FoodFleetXchange buying service, since orders, deliveries
and installation will still be made through them.
"The only thing that changes,"
said Joe Ciolino, executive vice president of AmeriQuest, "is
the price. It gets better. And, your vendor gets paid faster. Your
local vendor is informed of your participation in FoodFleetXchange
and youll receive our national pricing."
"This will allow our member companies
to cut their transportation costs dramatically at a time when energy
and other pressures are causing them to rise," said Stu Zlotnikoff,
senior vice president, N.G.A. and president, N.G.A. Service Corporation
(NGASC), which developed the new transportation purchasing portal
with AmeriQuest and FDI.
The NGASCs mission is to help
develop and market national, cost-effective, turnkey operational
services designed to increase efficiency, control costs and build
sales and market share for the N.G.A. constituency.
"Our job is to help our member
companies be as operationally efficient as possible," said
Zlotnikoff. "The alliance of N.G.A., FDI and AmeriQuest will
do just that in transportation, by providing everyday low prices,
reliable service, product expertise, and a world-class e-commerce
buying system."
According to FDIs 2000 Wholesale/Retail
Transportation and Fleet Maintenance Report, the biggest challenge
for fleet manages is controlling expenses. Breakdowns are costly
and out-of-service trucks strain the system. For that reason,
fleet managers seek vendors that provide a balance of good prices
and good service. The report shows that some distributors
even rely on the local tire supplier to maintain cost records for
the fleet.
Still, the bottom-line impact of lower
prices is crucial, especially when it comes to parts and tires,
the top two maintenance expenses. According to the report,
parts account for 56 percent of total repair costs and tires for
21 percent.
How It Works
Heres how FoodFleetXchange works:
AmeriQuest arranges preferred pricing
and fulfillment with a host of national suppliers. Any of the vendor/dealers
who use these suppliers become part of the FoodFleetXchange network.
When an N.G.A. or FDI member signs up with FoodFleetXchange, AmeriQuest
notifies the supplier and the member's facilities automatically
have access to the national pricing program.
Prices are lower because of AmeriQuest's
aggregated purchasing power. For most fleet managers, it means business
as usual in terms of ordering from the same local vendor, but the
prices are better. Once the order is placed, the process becomes
paperless for the participating company. Invoicing is done on-line
through FoodFleetXchange. Companies using multiple vendors who are
part of FoodFleetXchange receive one invoice. Participants
have access to their records anywhere at any time. They can examine
their order history to detect trends or patterns and plan for the
future.
"Our biggest challenge is making
fleet managers aware that nothing will change," Ciolino said.
"The only difference is that they have access to the national
pricing matrix. It is very user friendly. They can still call up
their local vendor and order what they need. Eventually, fleet managers
will be able to order from the computer screen, if that's what they
want to do. But each fleet manager works things out with their vendors
as far as how they order."
"This is an evolution, not revolution,"
said Doug Clark, president & CEO of AmeriQuest. "As with
all new initiatives we're not going to force it."
Early Success
Roundy's, a wholesaler based in Pewaukee, Wis., used the program
as a pilot to purchase tires for its Eldorado, IL, distribution
center and is looking toward expanding its use.
"Once you get the vendors set
up, it requires nothing more than a phone call or a purchase order,"
said Scott Aud, fleet manager of the Eldorado facility. "You
tell them what you need and they bring it. The system is user friendly.
It saves time, and time is valuable. "Aud said vendors
like the system because it turns money quicker and requires less
paperwork. "It streamlines the process and helps both partners,"
he said. Ciolino said in most cases, vendors are paid within 48
hours instead of the usual 30 days.
"At Roundy's we consider e-commerce
to be a tool for us," Weber said. "We're pleased to be
involved as an initial user. It takes time to move towards
online purchasing because it's a philosophical change for the fleet
manager. Now we are trying to move one step further and get
all seven divisions involved." Once all divisions are
using FoodFleetXchange, Weber will be able to go online and review
purchasing activity.
"We do not have to try to create
national pricing for Roundy's," Weber said. "AmeriQuest
already has that in place. Because we have multiple sites
and can see the same information on the screen, we can plan strategies
by having all managers looking at the same information concurrently."
FoodFleetXchange is a huge source for
tire purchases. It offers most major brands, including Goodyear,
Continental General and Yokohama, among others. There is a recapped
tire program with Bandag and lubricants from Citgo. At the same
time, AmeriQuest has developed what amounts to an entire parts catalog
for FoodFleetXchange members.
"Our goal is to be able to offer
the FoodFleetXchange members not just the lowest acquisition costs,
but A through Z in products that touch maintenance facilities,"
Clark said.
Other features will be available, too,
such as an on-line freight matching service that lists both shippers
and carriers. This service will help companies take advantage
of backhaul opportunities by allowing them to post available shipments
or capacity availability, logistics design (routing and scheduling),
and surplus asset disposition.
The Information Exchange
FoodFleetXchange also includes an information exchange through
which fleet managers can tap into the accumulated knowledge and
experience of their counterparts. It's a forum for fleet professionals,
and it's free.
"It's definitely taking off,"
reported Ciolino. "More and more people are participating.
New questions are being posted every day."
Traffic on the information site has
increased to some 5,000 visitors per month. By adding the broader
audience through N.G.A., those numbers are expected to increase.
One unique service involves a new database of ratings on different
products in different areas. With tires, for example, every original
equipment manufacturer has been rated by participating members.
Roundy's has found the information
exchange to be an excellent resource.
"We already have our managers
talking directly to each other on common problems," Weber reported.
"I believe that will mushroom nationally among FoodFleetXchange
users. It will close the loop faster on some issues and allows
a manager to avoid making costly mistakes. The value in that
on the fleet side is that it will cut the cycle time on finding
solutions. People are very willing to discuss common problems
and work towards a solution. FoodFleetXchange has given fleets of
all sizes a voice."
Additional information on FoodFleetXchange
can be found at www.NationalGrocers.org
and www.fdi.org.
About Food Distributors International
Food Distributors International is
a trade association comprised of food distribution companies that
supply and service independent grocers and foodservice operations
throughout the United States, Canada and 19 other countries. The
association and its foodservice partner, the International Foodservice
Distributors Association (IFDA), have 227 member companies that
operate 1244 distribution centers with a combined annual sales volume
of $170 billion. IFDA represents member firms that annually sell
$48 billion in food and related products to restaurants, hospitals
and other institutional foodservice operations. More information
on Food Distributors International is available at www.fdi.org.
About National Grocers Association
N.G.A. is the national trade association representing the retail
and wholesale grocers that comprise the independent sector of the
food distribution industry. An independent retailer is a privately
owned or controlled food retail company operating in a variety of
formats. Some are publicly traded but with controlling shares held
by the family. Most independent operators are serviced by wholesale
distributors, while others may be partially or fully self-distributing.
Independents are the true "entrepreneurs" of the grocery
industry and dedicated to their customers, associates, and communities.
N.G.A. members include retail and wholesale grocers and their state
associations, as well as manufacturers and service suppliers. For
more information about N.G.A. and the independent sector of the
industry, see the N.G.A. website: www.NationalGrocers.org.
About AmeriQuest
AmeriQuest® Transportation and Logistics Resources
is a privately held, national leader in transportation and logistics
services for the fleet management industry. Operating from more
than 450 locations and representing the direct purchasing power
of about 230,000 trucks and 100 aggregated fleets, AmeriQuest arranges
preferred pricing and fulfillment with leading suppliers, delivering
substantial savings to the industry. AmeriQuest is also the exclusive
provider of procurement and transportation related services for
its strategic partners, such as Amtralease (American Truck Leasing
Network, Inc.) and Food Distributors International, through the
knowledge and content portal FleetXchange, a wholly-owned subsidiary
of AmeriQuest. AmeriQuest Premier Partners include Bandag
Tires, Citgo, Yale, Morgan Corp., Sterling, Freightliner, ChemStation,
and Allison Transmission, among others. Additional information is
available at www.ameriquestcorp.com.
For more information regarding this
release contact Ronald Margulis at RAM Communications 908.232.3230.
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