A&P, C&S to combine supply agreements
March 10, 2008
by FoodBusinessNews.net Staff
MONTVALE, N.J. — The Great Atlantic & Pacific Tea Co., Inc. and G&S Wholesale Grocers, Inc. have signed a 10-year agreement to combine the A&P and Pathmark supply agreements, which were previously separate, into one partnership.
"We are extremely pleased to arrive at this ground-breaking agreement," said Eric Claus, president and chief executive officer of A&P. "Our partnering with C&S and its high tech infrastructure combined with our new agreement creates the value that is only delivered from a ‘big business model.’ This leading-edge agreement will provide cost saving efficiencies in warehousing while benefiting all parties, including, most importantly, our customers."
The new contract will change the way A&P and C&S work together, increasing efficiencies across A&P’s distribution network, improving service levels to all stores and enabling both companies to achieve cost savings. Specific parts of the agreement include a new business model, a network of distribution centers, coordination and collaboration of resources, reduction of on-hand inventory, improved in-stock levels, best-in-class service levels with improved speed-to-market delivery and cost reductions resulting in savings for customers.