Nestle FoodServices, a division of Nestle USA, has invested in, and will become a member of, the EFS electronic supply chain network. In addition, Allan Lutz, president of Nestle USA FoodServices Division, will occupy an observer seat on EFS' board of directors.
Nestle FoodServices joins other foodservice companies with existing investments in EFS Network including Sysco, Cargill, Kraft Foods, Tyson and eMac Digital, a partnership between McDonald's and Accel/KKR.
The EFS electronic order management system eliminates costs from the foodservice supply chain and enhances the trading relationships between foodservice distributors and suppliers. The solution is said to be configurable to address the diversity of technology capabilities among the companies in the industry. EFS claims that it reduces the costs associated with ordering goods and managing supply chain transactions by replacing manual, error-prone processes with more efficient and accurate electronic processing.
"It is very gratifying to have Nestle FoodServices as a member and investor," said Hank Lambert, chief executive officer of EFS Network. "We look forward to leveraging their industry knowledge, as well providing them with value-added solutions that enhance relationships and collaboration with their trading partners."
"EFS Network addresses an urgent industry need and offers pragmatic tools that work to reduce costs and inefficiencies," said Lutz. "As an investor, Nestle FoodServices will help to shape and develop future EFS offerings. As an EFS member, Nestle FoodServices will utilise the network as an important step in reducing our costs and enhancing our current trade relationships."
EFS Network is an electronic supply chain network for the $411 billion (€443bn) foodservice industry. Based in Chicago, the company aims to enhance the trading relationships of foodservice companies and eliminates costs throughout the supply chain. EFS Network is co-owned by leading companies within the foodservice industry.