Momentx, operator of the INC2inc and Dairy.com e-markets, and Connell Purchasing Services, a division of The Connell Company, today announced a strategic alliance to provide enhanced strategic sourcing services to the food and beverage industry. Connell Purchasing Services specializes in direct material strategic sourcing and ongoing material management, as well as cost of ownership reduction initiatives for food and beverage manufacturers. Momentx offers web-based tools for dairy, food and beverage manufacturers to better collaborate with their suppliers. Together, Momentx and Connell will offer customers a new way to manage the strategic sourcing and direct material acquisition process by leveraging Momentx’s technology platform and Connell’s 200+ years of industry purchasing expertise. The combined solutions are designed to drive long-term reductions in the total cost of ownership of direct materials for food manufacturers.
“Most strategic sourcing initiatives offered today are simple auction mechanisms. Though auctions are a tool we use in the sourcing process, auctions alone are an incomplete solution,” said Randy Briesath, vice president of Connell Purchasing Services. “Our extensive purchasing experience and data mining tools help us understand and evaluate a customer’s total spend to identify the greatest opportunities. We can then apply this knowledge to our strategic sourcing processes to align manufacturers with the right material from the right supplier at the right price. This approach yields significantly greater long-term value to manufacturers and suppliers than an auction-only approach, which focuses primarily on price.”
“After evaluating all of the potential strategic sourcing partners-both online and offline-it was clear that Connell Purchasing Services was the leader in the space,” said Scott Sexton, president of Momentx. “Their combination of strategic purchasing experience, strong relationships and scope of services made them an obvious choice as a partner. Together we will provide immediate cost savings opportunities to our customers.”
The food industry is built on longstanding relationships between ingredients and packaging suppliers and manufacturers. This joint effort continues Momentx and Connell’s commitment to reinforce those relationships. The companies plan to continue their emphasis on improving the processes between trading partners and improving communication to strengthen supplier/manufacturer relationships.
Momentx is an e-market solution provider for the dairy and food and beverage industries and operates the INC2inc and Dairy.com e-markets. For more information visit www.momentx.com.
Dairy.com is the first business-to-business online vertical exchange focused specifically on serving the entire U.S. dairy industry. Dairy.com is an independent neutral company whose services and tools will be open to all dairy industry participants. Dairy.com’s mission is to provide comprehensive internet tools to help the dairy industry create a better way of doing business. Five key functional platforms are under development for the site: a dairy commodity exchange, dairy farmer services, information tools, supply chain management tools and industry-focused community and content. A broad consortium of leading dairy industry organizations representing all segments of the industry founded Dairy.com – farmer owned cooperatives, milk, ice cream and yogurt processors and cheese manufacturers. For more information visit www.dairy.com.
About Connell Purchasing Services
Connell Purchasing Services is the only full line provider of strategic sourcing and outsourced purchasing management services to the food and beverage industries. Connell provides these services to companies ranging in size from startup to multi-billion and across every category of the food and beverage industry. Connell has established a record of delivering savings in multiples of their fees 100% of the time. For more information visit www.connellpurchasing.com.