Supplier News Breaks Archives
Hershey, Ferrero unveil warehousing, distribution pact
October 6th, 2011
HERSHEY, Pa., and SOMERSET, N.J. – Hershey Co. and the Ferrero Group in North America have entered a joint warehousing, transportation and distribution arrangement.
The two confectioners said Wednesday that under the alliance, details of which weren't disclosed, they aim to improve supply chain processes and enhance competitiveness in the United States and Canada.
Plans call for Hershey and Ferrero to also work together on corporate social responsibility efforts, with the expectation of reducing carbon dioxide emissions and energy usage in warehousing and freight, such as via fewer vehicle trips to move products to customers.
"Collaborative supply-chain operations are a growing trend across industries as companies seek to fully leverage their logistics infrastructure," John Bilbrey, president and chief executive officer of Hershey, said in a statement. "Although we are initially focusing on one region of our business, we are excited about the full potential of this project."
Productivity improvements are expected to be realized in 2012. The companies noted that the alliance doesn't involve manufacturing, selling or marketing activities. The goal is to enable both companies to serve customers in a more efficient and sustainable way — for example, through shared warehousing facilities and transport, according to Ferrero.
"We are in the early stages of launching this venture but are already excited about its potential to improve supply chain operations," stated Giuseppe D'Angelo, area manager for the Ferrero Anglo/Americas region. "And Hershey is the ideal partner to work with us to achieve this goal."
Hershey's roster of candy brands includes Hershey's Chocolate, Reese's Peanut Butter Cups, Hershey's Kisses, Kit Kat, Twizzlers, Ice Breakers and Jolly Rancher. Ferrero's brand portfolio includes Tic Tac, Nutella and Ferrero Rocher.