Pennexx Foods and Bunzl Distribution have formed a supply arrangement to maximize supply side cost savings opportunities.
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Pennexx is a premier case-ready meat supplier and Bunzl is a major supplier to the processor industry. The program is based on Bunzl’s exclusive Integrated Supply Management System (ISMS), a systematic approach to reducing costs and adding value through a comprehensive packaging and plant outsourcing program specifically targeting processors.
According to Mike Queen, president of Pennexx, “We are seeing the benefits of the program in floor space utilization and labor management. Once the process was in place, it showed immediate improvements. As we are meeting the growing demand for case-ready from retailers in the northeast, this program enables us to improve yield and operating efficiency.”
The ISMS process produces savings for food processors like Pennexx in inventory-carrying costs, receiving and handling costs, working capital valuation and administrative expenses.
“ISMS enables us to develop and implement accurate and definable solutions designed to meet each processor’s specific needs,” said Jeff Earnhart, who heads up Bunzl’s Food Processor Group. “Our relationship with Pennexx represents a very effective collaboration in supply side management.”
