Agribuys and Foodconnex merge to form FoodLink Online
Agribuys and Foodconnex merge to form FoodLink Online
Agribuys in Torrance, CA, which describes itself as the leading provider of supply chain management software and services to the global perishable foods industry, and Foodconnex Worldwide in Roseville, CA, a provider of technology to companies in the perishables and food retail markets, announced May 2 that they have merged to form FoodLink Online.
The merger "has created the leader in supply chain management for perishable foods," combining "the prestigious client lists of both companies, according to a company press release announcing the merger. That "expanded network of buyers provides suppliers with "greater access to buyer organizations.
The FoodLink client list now includes Supervalu, Ahold USA, C&S Wholesale Grocers, U.S. Foodservice and Pathmark, according to the release. It also includes "a large national network of suppliers not only in produce but in other perishables categories as well such as floral, seafood, meat, bakery, deli and dairy.
Vijay Kajnik, who was chief executive officer of Agribuys and who will now become CEO of the newly created Foodlink Online, told The Produce News that although the consolidation of the two companies was "technically a merger, "in reality it is more of an acquisition.
The merger results in several benefits for the produce industry, said Mr. Kajnik, who has more than 30 years of international business experience in U.S. and global food retailing operations.
The principal benefit, he said, is that "it brings together a critical mass of buyers, so that we can provide adequate numbers of participants on all sides of this collaborative commerce solution. & There is a community of suppliers out there and a community of buyers out there, and our platform really resides between these communities to facilitate commerce.
On the buying side, "It enables a buyer to consolidate demand, particularly if the buyer is from a large buying organization with a large store network or a large number of distribution centers, he said.
C&S, Ahold and U.S. Foodservice "are going to be doing a national rollout, Mr. Kajnik said. "That is also something we intend to do with Supervalu. Currently, "we are in the middle of a produce rollout at Supervalu. There are active discussions with other large buyers as well, he said. "That creates a community where there are enough buyers that this particular platform would be of interest to suppliers that sell the product.
Since the company's on-line system is "a hosted solution, he said, "all you need is a browser to come in and use our application.
Another benefit of the FoodLink system to produce suppliers is that "it gives them visibility to the buyers and the ability "to actually conduct commerce.
In addition to supply-chain management, FoodLink will provide "several other services, Mr. Kajnik said. One will be catalog management services.
He noted that the Produce Marketing Association is "about to publish a standard for describing produce, "and we will embrace the standard, he said. FoodLink will provide products and services utilizing the new PMA standards.
The FoodLink service enables "a precise description of what the product is, its quality, its condition, its country-of-origin information, and a whole host of other things, he said. "We today have the ability to provide information about quality and condition within our own software product. But what we will do is conform to the PMA published standard for the benefit of the industry.
Yet another service to the produce industry will provide suppliers with a means for unloading excess inventory through forward auctions, he said.
The merger "has created the leader in supply chain management for perishable foods," combining "the prestigious client lists of both companies, according to a company press release announcing the merger. That "expanded network of buyers provides suppliers with "greater access to buyer organizations.
The FoodLink client list now includes Supervalu, Ahold USA, C&S Wholesale Grocers, U.S. Foodservice and Pathmark, according to the release. It also includes "a large national network of suppliers not only in produce but in other perishables categories as well such as floral, seafood, meat, bakery, deli and dairy.
Vijay Kajnik, who was chief executive officer of Agribuys and who will now become CEO of the newly created Foodlink Online, told The Produce News that although the consolidation of the two companies was "technically a merger, "in reality it is more of an acquisition.
The merger results in several benefits for the produce industry, said Mr. Kajnik, who has more than 30 years of international business experience in U.S. and global food retailing operations.
The principal benefit, he said, is that "it brings together a critical mass of buyers, so that we can provide adequate numbers of participants on all sides of this collaborative commerce solution. & There is a community of suppliers out there and a community of buyers out there, and our platform really resides between these communities to facilitate commerce.
On the buying side, "It enables a buyer to consolidate demand, particularly if the buyer is from a large buying organization with a large store network or a large number of distribution centers, he said.
C&S, Ahold and U.S. Foodservice "are going to be doing a national rollout, Mr. Kajnik said. "That is also something we intend to do with Supervalu. Currently, "we are in the middle of a produce rollout at Supervalu. There are active discussions with other large buyers as well, he said. "That creates a community where there are enough buyers that this particular platform would be of interest to suppliers that sell the product.
Since the company's on-line system is "a hosted solution, he said, "all you need is a browser to come in and use our application.
Another benefit of the FoodLink system to produce suppliers is that "it gives them visibility to the buyers and the ability "to actually conduct commerce.
In addition to supply-chain management, FoodLink will provide "several other services, Mr. Kajnik said. One will be catalog management services.
He noted that the Produce Marketing Association is "about to publish a standard for describing produce, "and we will embrace the standard, he said. FoodLink will provide products and services utilizing the new PMA standards.
The FoodLink service enables "a precise description of what the product is, its quality, its condition, its country-of-origin information, and a whole host of other things, he said. "We today have the ability to provide information about quality and condition within our own software product. But what we will do is conform to the PMA published standard for the benefit of the industry.
Yet another service to the produce industry will provide suppliers with a means for unloading excess inventory through forward auctions, he said.
