N.G.A. AND FDI COMBINE IN NEW ONLINE FLEET BUYING SERVICE FoodFleetXchange, supported by AmeriQuest, now open

ARLINGTON, Virginia (Aug 1, 2001) -- National Grocers Association (N.G.A.) and Food Distributors International (FDI) announced today that they are launching a powerful new transportation and operations buying service that will save member companies that operate truck fleets millions of dollars in lower prices and new efficiencies. The new service, www.foodfleetxchange.com, opened for business today.

FoodFleetXchange, operated with AmeriQuest, a Cherry Hill, NJ-based transportation and logistics company, allows grocery retailers and wholesalers and their suppliers to buy all major brands of tires, lubricants, batteries, brakes, engines, transmissions, tools, truck bodies, shop tools, lift gates, and more at improved pricing levels. This is accomplished through the added volume represented by the fleets of the two associations in combination with existing AmeriQuest users.

"Members and affiliates of N.G.A. participating in the AmeriQuest service will have access to similar pricing and purchasing economies of scale previously available only to the nation's largest retailers and manufacturers," said Thomas K. Zaucha, president and CEO, N.G.A. "The service will help level the playing field for the fleets of N.G.A. members and other participating suppliers."

"This is a major development for the food industry and our members," said FDI president John R. Block. “Fleet operations is one of the largest costs for wholesalers and foodservice distributors, and by aggregating the buying power of our two associations -- combined with the 81,000 power units served by AmeriQuest -- FoodFleetXchange can provide national pricing that will mean significant savings to even our largest members."

The decision to join forces was made by the leadership of the two associations when N.G.A. was set to establish an online buying service through AmeriQuest, which also operated FDI FleetXchange.

"This will allow our member companies to cut their transportation costs dramatically at a time when energy and other pressures are causing them to rise," said Stu Zlotnikoff, senior vice president, N.G.A. and president, N.G.A. Service Corporation (NGASC), an N.G.A. subsidiary, which developed the new transportation purchasing portal with AmeriQuest and FDI.

The NGASC's mission is to help develop and market national, cost-effective, turnkey operational services designed to increase efficiency, control costs and build sales and market share for the N.G.A. constituency.

"Our job is to help our member companies be as operationally efficient as possible," said Zlotnikoff. "The alliance of N.G.A., FDI and AmeriQuest will do just that in transportation, by providing everyday low prices, reliable service, product expertise, and a world-class e-commerce buying system."

An important consideration for fleet managers is that their vendor relationships will not be affected by using the FoodFleetXchange buying service, since orders, deliveries and installation will still be made through them.

"The only thing that changes," said Joe Ciolino, executive vice president of AmeriQuest, "is the price. It gets better. And, your vendor gets paid faster. Your local vendor is informed of your participation in FoodFleetXchange and you'll receive our national pricing."

How It Works
Here's how FoodFleetXchange works:
AmeriQuest arranges preferred pricing and fulfillment with a host of national suppliers. Any of the vendor/dealers who use these suppliers become part of the FoodFleetXchange network. When an N.G.A. or FDI member signs up with FoodFleetXchange, AmeriQuest notifies the supplier and the member's facilities automatically have access to the national pricing program.

Prices are lower because of AmeriQuest's aggregated purchasing power. For most fleet managers, it means business as usual in terms of ordering from the same local vendor, but the prices are better. Once the order is placed, the process becomes paperless for the participating company. Invoicing is done on-line through FoodFleetXchange. Companies using multiple vendors who are part of FoodFleetXchange receive one invoice. Participants have access to their records anywhere at any time. They can examine their order history to detect trends or patterns and plan for the future.

"Our biggest challenge is making fleet managers aware that nothing will change," Ciolino said. "The only difference is that they have access to the national pricing matrix. It is very user friendly. They can still call up their local vendor and order what they need. Eventually, fleet managers will be able to order from the computer screen, if that's what they want to do. But each fleet manager works things out with their vendors as far as how they order."

"This is an evolution, not revolution," said Doug Clark, president & CEO of AmeriQuest. "As with all new initiatives we're not going to force it."

Early Success
Roundy's, a wholesaler based in Pewaukee, WI, used the program as a pilot to purchase tires for its Eldorado, IL, distribution center and is looking toward expanding its use.

"Once you get the vendors set up, it requires nothing more than a phone call or a purchase order," said Scott Aud, fleet manager of the Eldorado facility. "You tell them what you need and they bring it. The system is user friendly. It saves time, and time is valuable." Aud said vendors like the system because it turns money quicker and requires less paperwork. "It streamlines the process and helps both partners," he said. Ciolino said in most cases, vendors are paid within 48 hours instead of the usual 30 days.

"At Roundy's, we consider e-commerce to be a tool for us," Weber said. "We're pleased to be involved as an initial user. It takes time to move towards online purchasing because it's a philosophical change for the fleet manager. Now we are trying to move one step further and get all seven divisions involved." Once all divisions are using FoodFleetXchange, Weber will be able to go online and review purchasing activity.

"We do not have to try to create national pricing for Roundy's," Weber said. "AmeriQuest already has that in place. Because we have multiple sites and can see the same information on the screen, we can plan strategies by having all managers looking at the same information concurrently."

FoodFleetXchange is a huge source for tire purchases. It offers most major brands, including Goodyear, Continental, General, Yokohama, among others. There is a recapped tire program with Bandag and lubricants from Citgo. At the same time, AmeriQuest has developed what amounts to an entire parts catalog for FoodFleetXchange members.

"Our goal is to be able to offer the FoodFleetXchange members not just the lowest acquisition costs, but A through Z in products that touch maintenance facilities," Ciolino said.

Other features will be available, too, such as on-line freight matching service that lists both shippers and carriers. This service will help companies take advantage of backhaul opportunities by allowing them to post available shipments or capacity availability, logistics design (routing and scheduling), and surplus asset disposition.

The Information Exchange
FoodFleetXchange also includes an information exchange through which fleet managers can tap into the accumulated knowledge and experience of their counterparts. It's a forum for fleet professionals, and it's free.

"It's definitely taking off," reported Ciolino. "More and more people are participating. New questions are being posted every day."

Traffic on the information site has increased to some 5,000 visitors per month. By adding the broader audience through N.G.A., those numbers are expected to increase. One unique service involves a new database of ratings on different products in different areas. With tires, for example, every original equipment manufacturer has been rated by participating members.

Roundy's has found the information exchange to be an excellent resource.
"We already have our managers talking directly to each other on common problems," Weber reported. "I believe that will mushroom nationally among FoodFleetXchange users. It will close the loop faster on some issues and allows a manager to avoid making costly mistakes. The value in that on the fleet side is that it will cut the cycle time on finding solutions. People are very willing to discuss common problems and work towards a solution. FoodFleetXchange has given small and medium fleets a voice."

Additional information on FoodFleetXchange can be found at www.NationalGrocers.org or www.fdi.org.

About National Grocers Association
N.G.A. is the national trade association representing the retail and wholesale grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating in a variety of formats. Some are publicly traded but with controlling shares held by the family. Most independent operators are serviced by wholesale distributors, while others may be partially or fully self-distributing. Independents are the true "entrepreneurs" of the grocery industry and dedicated to their customers, associates, and communities. N.G.A. members include retail and wholesale grocers and their state associations, as well as manufacturers and service suppliers. For more information about N.G.A. and the independent sector of the industry, see the N.G.A. website: www.NationalGrocers.org.

About Food Distributors International
Food Distributors International is a trade association comprised of food distribution companies that supply and service independent grocers and foodservice operations throughout the United States, Canada and 19 other countries. The association and its foodservice partner, the International Foodservice Distributors Association (IFDA), have 227 member companies that operate 1244 distribution centers with a combined annual sales volume of $170 billion. IFDA represents member firms that annually sell $48 billion in food and related products to restaurants, hospitals and other institutional foodservice operations. More information on Food Distributors International is available at www.fdi.org.

About AmeriQuest Transportation and Logistics Resources
AmeriQuest Transportation and Logistics Resources provides procurement services, outsourced transportation management services, asset services, and logistics consulting to the commercial trucking industry. AmeriQuest dramatically cuts costs and optimizes operations for their powerful network of more than 525,000 transportation vehicles. AmeriQuest offers significant discounts with commercial trucking suppliers' fleet-related products, and provides technology driven back office process efficiencies. AmeriQuest enables customers to realize immediate bottom-line savings while adding economic and performance value to industry supply chains.