Tuesday, December 20, 2011

Viterra signs service agreements with CN, CP

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Viterra Inc. signed new service improvement agreements with both Canadian National and Canadian Pacific.

Under the CN agreement, Viterra and CN will work together to review supply chain key performance indicators, cooperate on planning and forecasting and address supply chain issues in a timely manner. The agreement is based on the belief that the actions of all supply chain participants affect the performance of the entire chain.

"At CN, we know that what gets measured can be improved," said Claude Mongeau, president and chief executive officer of CN. "We believe our innovative agreement with Viterra will lead to greater supply chain efficiency, from the Canadian prairie elevators, to the export vessels. Our aim with this supply chain agreement is to further improve upon this service to help Viterra better compete in world markets."

Fran Malecha, Viterra's chief operating officer, grain, said, "With this important new agreement, we will work even closer with CN to achieve greater supply chain reliability and improved service to our grower and export customers. Viterra and CN's commitment to continuous supply chain improvements is based on mutual trust and confidence and will benefit all of our key stakeholders, making our sector even more vibrant."

The CP agreement will empower Viterra and CP to work together on supply chain management, such as sharing performance benchmarks and evaluating opportunities as they arise. This proactive approach to further improve CP's rail-based supply chain will benefit not only Viterra, but growers and other industry stakeholders as well.

"Through our scheduled grain service, enhanced systems for car request management, new productivity tools and customer service agreements, CP is further redefining its models for service reliability and operational efficiency," said Jane O'Hagan, CP's EVP & chief marketing officer. "The results of this work are leading to increased carrying capacity for the railway to the mutual benefit of customers such as Viterra and the entire grain handling system."

"This agreement allows Viterra and CP to work together to ensure supply chain reliability and improve service for our grower and export customers. Viterra works closely with growers to market and handle their grain and provide timely delivery to domestic and international customers. Rail service reliability is a critical component and with this agreement we believe that continuous supply chain improvements can be achieved," said Fran Malecha, Viterra's chief operating officer, grain.

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