Penske Logistics re-ups contract with Cardinal Health
Under the agreement, Penske Logistics manages the drivers, vehicles, and freight deliveries for Cardinal’s medical supply chain business serving hospitals.
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Penske Logistics, a subsidiary of Penske Truck Leasing, recently stated that it inked an agreement with Cardinal Health to extend their existing dedicated carriage services contract.
Penske officials said financial terms were not disclosed.
In an interview with LM, Dennis Abruzzi, Senior Vice President, East Region for Penske Logistics, said that Penske Logistics entered into an outsourced DCC arrangement with Cardinal Health back in 2008. The agreement came up for renewal several months ago, he said, and under the agreement, Penske Logistics manages the drivers, vehicles, and freight deliveries for Cardinal’s medical supply chain business serving hospitals.
“Penske Logistics leverages its expertise in managing transportation, people, processes, and technologies to continuously optimize Cardinal Health’s supply chain performance,” explained Abruzzi. “This drives efficiencies and cost savings while also ensuring we provide the high-quality, time-critical delivery services hospitals require to ensure quality care for patients.”
Abruzzi declined to disclose the number of DCC contracts held by Penske, but he did say that DCC has been a core business at Penske Logistics for more than 40 years.
“Penske is a leader in the logistics space and has an impressive track record with a variety of high-touch, time-critical industries, including health care,” said Mike Duffy, Executive Vice President, Global Manufacturing and Supply Chain at Cardinal Health, in a statement. “They’ve been reliable in helping us to deliver consistent service, deploy best practices and continuously improve our customer experience, so we’re pleased to extend our longstanding partnership.”
About the AuthorJeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman
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