Delivering Transportation Savings, Plant by Plant

In January 2000, Penske began implementing its transportation savings strategy throughout Mission Foods' plant operations. The Penske/Mission Foods team tackled network and cost-down opportunities at each plant to transition to a centralized transportation management structure.

In July 2003, Penske took over Mission Foods' newest plant in Goldsboro, North Carolina. At the conclusion of the first year, Penske accomplished a cost per pound reduction by networking east coast operations.

Since implementation, Penske has saved Mission Foods an estimated $5.3 million based on the cost per pound benchmarks set in 2000. Despite an increase in product demand and fuel prices, the team continues to deliver substantial savings. The result has been two-fold - Mission Foods' net sales have grown by six percent, while transportation costs have been reduced by nearly 13 percent.

In addition to cost savings, Penske has helped Mission Foods maintain a 99 percent on-time delivery rate throughout its transportation network. This has helped improve productivity at the plant level, thereby reducing inventory and warehouse costs.

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	Case Studies


	- Ford Motor Company - General Motors de Mexico - International Truck & Engine Corporation - Knoll Incorporated (Case Study 1) - Knoll Incorporated (Case Study 2) - Mission Foods - Whirlpool Corporation