Transplace Designs New Combined Distribution Network for New World Pasta and Riviana Foods
New distribution network design allows growing businesses to reduce costs and improve customer service
Sept. 18, 2007 (Plano, TX) - Transplace, a leading provider of logistics technology and transportation management services, has successfully designed a new combined distribution network for two leading food companies-New World Pasta and Riviana Foods. New World Pasta is the leading branded pasta company in the United States and Canada, and was acquired last year by Ebro Puleva, S.A., a leading multinational food group in the rice, pasta, sugar and dairy businesses. Riviana Foods, also a subsidiary of Ebro Puleva, is the market leader of rice products in the United States.
With a rich background and proven expertise in designing, implementing and managing consumer packaged goods (CPG) distribution and transportation, Transplace was able to design a new network for New World Pasta and Riviana Foods that would better serve customers, improve the distribution efficiency and reduce costs.
The network study involved detailed analysis of both companies SKU-level product information over a span of one year of historical data. Transplace worked in tandem with teams in place for both Riviana Foods and New World Pasta in order to understand the current transportation structure as well as to establish an accurate cost baseline by which all optimization would be evaluated.
Once the historical network baseline was validated, Transplace proceeded to the analysis phase of the project by first scrutinizing the product flows, then using both the production information as well as customer consumption to determine the appropriate placement of distribution centers throughout the United States and Canada. The distribution center placement was decided by balancing real world operational constraints put in place by both companies with the need to service a majority of customers within a specified time frame, all while factoring in current market conditions for transportation rates into and out of each distribution center market.
"Based on our experience in consumer package goods transportation, we studied New World Pasta and Riviana Foods customers, existing design networks and historical consumption data to develop the optimal location for the combined distribution center network," said George Abernathy, executive vice president and chief marketing officer for Transplace. "The new network of distribution center locations included establishing a new facility in New Kingston, PA, which is an ideal location for both companies to efficiently service customers on the East Coast, and will result in reduced overall transportation cost."
The development and implementation of the new logistics network will enable the two leading food companies to optimize customer service. "New World Pasta and Riviana Foods lead the pasta and rice categories, respectively, in innovation and customer service. Our work with Transplace supports these continuing initiatives," said Scott Greenwood, CEO of New World Pasta. "Transplace's ability to design the optimal distribution network for New World Pasta and Riviana Foods solved several complex issues for us. Transplace will help us achieve our goal of successfully combining the distribution network of both business units, position our products optimally in terms of our customers and the ultimate consumers and also will help us reduce our operating expenses."
"With integrated distribution channels, New World Pasta and Riviana Foods will be able to provide greater customer service through quicker response times and reduce transportation costs," added Abernathy.
After completing the network design analysis, Transplace also provided an on-line Carrier Bid that included the core carriers of New World Pasta and Riviana Foods, and other transportation service providers. This established the carrier assignments for the shipping lanes and should result in transportation savings.
To learn more about Transplace logistics services and technology, please visit www.transplace.com
About New World Pasta Company.
New World Pasta is a leading marketer and supplier of branded dry pasta and noodles in the United States and Canada, with well-known brands such as Ronzoni®, Healthy Harvest®, Smart Taste(TM), Creamette®, San Giorgio®, American Beauty®, Skinner®, Prince®, Catelli® and Lancia®. Headquartered in Harrisburg, Pennsylvania, New World Pasta has over 700 employees in the United States and Canada. To visit the New World Pasta website, go to www.newworldpasta.com.
About Riviana Foods Inc.
Based in Houston, Texas, Riviana Foods is one of the largest processors, marketers and distributors of branded and private label rice products in the United States. Principal brands include Mahatma®, Carolina®, Minute®, Success®, Gourmet House® and S&W®. Visit Riviana´s website at www.riviana.com.
About Ebro Puleva, S.A.
Ebro Puleva is headquartered in Madrid, Spain and has annual worldwide sales in excess of $3 billion. It is the leading group in the Spanish food sector in terms of sales, profits and market capitalization. It is a worldwide leader in the sugar, rice, pasta and value-added dairy sectors, and has a wide variety of leading brands. To visit the Ebro Puleva website, go to www.ebropuleva.com.
Transplace designs new combined distribution network,
Transplace
Transplace is a non-asset based third-party logistics (3PL) provider offering manufacturers and retailers the optimal blend of logistics technology and transportation management services. From complete logistics management outsourcing to intelligent transportation management systems (TMS) to supply chain network planning and design to high-quality brokerage services, Transplace has proven the ability to deliver both rapid return on investment and consistent value to customers. The company is recognized among the elite 3PLs in North America by a customer base that includes many of the largest shippers in the world.
In 2007 Transplace has been awarded with the Global Logistics and Supply Chain Strategies "100 Great Supply Chain Partners" distinction for the fourth consecutive year and by Supply & Demand Chain Executive as a "Top 100" provider in supply chain transformation for the third consecutive year. In 2006, Transplace was recognized by Inbound Logistics as a Top 10 3PL for the fourth consecutive year, and by Logistics Management as the highest ranked Quest for Quality 3PL.
Contacts:
Suzy Watson
sgwatson@outlookmarketingsrv.com
312-873-3423
