In 1998, the company plant in Fresno, California realized the need to change their distribution and transportation processes. In an effort to increase productivity and reduce operational costs, Mission Foods decided to outsource the plant’s transportation operations.
Already a Penske Truck Leasing customer, Mission Foods selected Penske Logistics to identify and improve areas of inefficiency in the plant’s inbound and outbound transportation operations. By implementing Six Sigma quality tools, Penske reduced the plant's transportation costs by 11 percent within the first 60 days.
Mission Foods quickly saw the opportunity to drive down overall transportation costs while expanding to meet the growing demand for its products in North America. In 1999, Mission Foods employed Penske to manage the transportation network for eight of its existing U.S. plants.
Penske soon identified Mission Foods?greatest logistical challenge ?each plant was using its own set of operating procedures and mode selection processes to manage inbound and outbound transportation. This prevented Mission Foods from maximizing its existing transportation network infrastructure.