SUPPLY CHAIN

E-World Online and Costco partner on program to reduce waste

BY Katherine Boccaccio

Vista, Calif. — Consumer electronics recycler E-World Online said Wednesday that it has teamed with Costco Wholesale Corp. on the launch of a national program to make managing merchandise returns more sustainable.

E-World Online’s Retail Return Program will track returned merchandise and find markets for reusable or recyclable products. Costco has implemented, trained and deployed E-World Online’s RRP program in all of its U.S. warehouses, making it the largest such retail return program, according to E-World Online.

Since the program first launched in June 2012, 1.1 million items equaling 14 million pounds of returned material have been transported, cataloged, recycled, remarketed or salvaged. Each warehouse enters data into a customized material tracking system that streamlines and unifies the reporting process across every warehouse, recycling facility and transportation center.

E-World Online’s Retail Return Program is based on its Manufacturer Interstate Take-back System, which provides retailers greater control over returned merchandise.

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News

Supply chain firm makes top-level changes

BY CSA STAFF

PITTSBURGH, Pa. — Supply chain and reverse logistics provider Genco has appointed Herb Shear as executive chairman and Todd R. Peters as CEO.

Genco is a leading third-party logistics provider for manufacturers, retailers and U.S. government. It operates 130 value-added warehouse locations totaling 38 million sq. ft. and manages $1.5 billion in freight annually throughout North America.

Shear has been the company’s chairman and CEO for the past 40 years. He will now focus principally on the company’s strategic direction and long-term business growth. In his role as CEO, Peters will lead Genco’s business initiatives, leveraging the company’s recognized leadership position in product lifecycle and reverse logistics to pursue opportunities in target markets, including technology, healthcare, retail, consumer and industrial and government.

Peters was appointed vice chairman of Genco in October 2010, following the acquisition of ATC Technology Corporation. He will continue serving in his role as vice chairman and as a member of the board.

"Todd is a strong leader and has played a critical role in enhancing our competitive position," said Shear. "With Todd’s help, we have leveraged additional opportunities with our existing and prospective customers." Mr. Shear added, "Under Todd’s leadership, I am confident that Genco will continue to grow and provide unmatched expertise, operational excellence and value to our customers."

Two years after merging with ATC Technology Corporation to form GENCO ATC, the company is uniting under the GENCO brand and will officially retire the ATC brand.

Genco’s complete range of product lifecycle services include inbound logistics; warehousing and distribution; fulfillment; contract packaging; transportation management; systems integration; returns processing and disposition; test, repair, refurbishment; product liquidation and recycling.

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FINANCE

Supervalu in deal with private-investor group led by Cerberus

BY Katherine Boccaccio

Minneapolis — Supervalu Inc. announced Thursday that it has reached a deal to sell its Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies to a private equity group in a transaction valued at $3.3 billion.

AB Acquisition, a consortium of investors led by Cerberus Capital Management, will get 877 stores across the various banners in the deal. The investor group also includes Kimco Realty Corp., Klaff Realty LP, Lubert-Adler Partners and Schottenstein Real Estate Group.

Post-transaction, Supervalu will consist of the Independent Business, a leading food wholesaler which serves1,950 stores across the country; Save-A-Lot, with approximately 1,300 stores; and regional supermarket banners Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s. The company is expected to generate annual revenues in excess of $17 billion.

Once the deal closes, Supervalu will be headed by grocery retail veteran Sam Duncan, who will serve as president and CEO. He will replace current president, CEO and chairman, Wayne Sales.

In addition, effective upon the closing of the transactions, five current Supervalu directors will resign.

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