Boulder, Colo.-based Wild Oats Markets, a US natural and organic foods retailer, has signed a distribution contract with Tree of Life, the natural products distributing arm of Dutch food group Koninklijke Wessanen.
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From 1 September 2002 for three years, Tree of Life will be the primary national distribution partner for Wild Oats.
“Over the past several months we have been conducting a thorough review and analysis of our current distribution system and supply chain. The objective of this process was to determine the best distribution partner and system that will enable Wild Oats to optimise our overall supply chain, leverage our purchasing power, reduce costs and improve service to our stores,” said Perry Odak, President and CEO of Wild Oats.
“Tree of Life was selected as our distribution partner due to their extensive distribution and logistics expertise, as well as their advanced information systems and distribution technology,” added Odak.
Richard A. Thorne, chairman of Tree of Life, added: “Both organisations’ management teams have significant experience executing and managing large-scale changes in distribution strategies and, as a result of thorough planning, we believe the transition will be seamless.”
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By GlobalDataWild Oats expects this new distribution relationship will reduce current procurement and distribution costs through competitive product costs, consolidated management of freight and logistics, and reduced store expenses through consolidated deliveries. Additionally, Tree of Life will commit resources for marketing support, product line expansions, performance standards and growth objectives.
“Ultimately, we want a supply chain partner that will help us be a leader in the natural and organic products industry as we continue to grow our business,” said Odak. “We are making a change in our business that we believe will have substantial long-term benefits.”
