behind the scenes - michigan sna...behind the scenes getting food to your door forecasting,...
TRANSCRIPT
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Behind the ScenesGetting food to your door
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Forecasting, Transportation and Warehousing -
Barbra Baillie - Gordon Food Service
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Forecasting
● Forecasting- Expected case sales in the future
● Review year over year trends/seasonality to determine future forecasts and trends
● Add Market intelligence to the forecast
● Review outliers of what was expected to what actually happened
● Finalize forecast and share with the manufacturer what our purchases will be over time
● Forecast accuracy- Expected case sales versus actual case sales
● Communication is key
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Purchasing Considerations
● Manufacturer requires a lead time which ranges from 7-21 days on average● Orders are based on the following criteria
○ Forecast needs○ Lead times○ Manufacturer minimums○ Safety stock needed○ Pallet quantities ○ Manufacturer performance rate for filing the order○ On time delivery from the carrier
● Challenges that affect Inventory Levels
○ Uncommunicated Changes in demand
○ Supply from the Manufacturer
○ Transportation
○ Weather
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Challenges that affect Forecasting and Inventory Levels
● Uncommunicated Changes in demand
○ Demand Variations (menu changes and menu cycles)
○ New/Lost Business
○ Timing (accuracy of when customer orders compared to expected date)
○ Supply from the Manufacturer
● Transportation
● Weather
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Transportation
The trucking industry is experiencing a low truck supply but a high
demand for freight.
● For every 2 trucks need there is 1 driver
● Driver shortages will increase
● Younger generation not as interested
● Rising wage impacts freight
● Rising freight costs
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Warehousing
Warehouses and Distributor Centers will continue to implement tech-based handling solutions in
2019 as they strive to work faster, smarter, and with fewer human resources.
● There is a big push in the industry to investigate into many types of technology...from better
data and information to mechanization, automation, and worker assist technology such has
handheld applications and ergonomic solutions.
● Market demands...flexibility, SKU offering, service profiles and workforce availability.
● The industry will be seeking to make the most physically challenging work easier and more
amenable to a more diverse workforce.
● The greatest resource (capacity) issue would be people. Scarcity of resources quickly causes
labor shortages and can easily create a cascading effect on the remaining people. Major
metropolitan areas are the most significantly impacted, but the challenge is present
everywhere.
● Staffing will remain as a priority in order to succeed. Warehousing is traditionally a very
physically and mentally demanding.
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Manufacturing - Alice Woods
Jennie O Turkey Store
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Jennie-O Turkey Store
• Jennie-O is headquartered in Willmar MN
• 11 Company owned laying farms
• 4 hatcheries that produce 45 million poults annually
• 8 feed mills
• 7 processing plants
Business Units
• Retail
• Foodservice
• Deli
• Export/Commodity
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Jennie-O Turkey Store Foodservice Division
Commercial National AccountsNon-Commercial K-12
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Key team members
• Sales team
• Product Managers
• Research and development
• Quality Assurance team
• Production team
• Veterinary services team
• Farm team
• Scheduling department
• Customer Service
• Accounting
• Marketing team
• Transportation
• Administration
What does this mean?
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Working Together
• Internal teamwork
• External Partners – trucking, distribution, co-packers
• Customers partnerships
Communication is Key!
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Brokerage Companies
Mike Luch - Waypoint
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K12 Bid Process
● Brokers begin with NEW product presentations from
our Clients
● Once approved by Director or Committee, this product
goes into a Student test, once approved
● Product submitted to be on School District Bid
● Pricing requested and submitted
● Award information received
● Notify Distribution of New product
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Forecasting
● Begin process for distribution to stock NEW items
● Gather FORECASTING for distribution to begin the
ordering process for the School year
● School District Menus new product
● School district orders products to be served on menus
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New Item Process
● Food shows are avenues for Brokers to present
● School Districts with NEW products from various
manufacturers
● This opportunity is for School District or Commodity
to see and vote on all new products for upcoming
school year
● Brokers must keep all their Manufacturers informed
on all phases of the selling process
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the Last Mile
Carl Hopp - Gordon Food Service
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“the Last Mile of Fulfillment”
Everything you order has to undergo the “last mile.”
● Consumers today want Anything > Anytime > Anywhere
● If I can order a new laptop with free 2 hour shipping, why can’t
that be done with my grocery order
● Food distributors cover the last mile while preserving the cold
chain. Perishability is high and safety is a must
● To make things faster and more flexible it costs money - there
are tradeoffs
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Fast
● Shorten the distance between origin and delivery
● Creative storage- underwater, mobile markets, BOPIS, BOSS,
● New routing, designating loading zones, drones, bikes
Free
● Estimates put labor at about 70% of last-mile costs
● Use of automation, robots, electric vehicles
Flexible
● Create efficiencies that reduce time and cost.
● Sensor technology, Artificial Intelligence/machine learning to predict what to do next
Customers want: Fast, Free and Flexible
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● Fast, free, and flexible are today’s customer commandments.
● Companies that emphasize flexibility can give customers the power to
choose the right mix of fast and free for today
● Companies will be able to adopt the innovations that’ll make their last-mile
cheaper and faster like their customers will want
● Companies don’t know what things we’ll need to be moved in the future, or
how or where they will be moved to
The Takeaway
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The Rise of Voice and AI
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The Rise of Voice
The mainstream use of voice activated assistants such as Amazon’s Alexa,
Google Assistant, and Apple’s Siri are commonplace today
● Voice is taking over. Soon, everyday household objects - from
refrigerators to deadbots - from washers to mirrors will feature voice
capabilities
● More than 35 million Americans will use voice
technology this year
● Distributors are integrating voice into all customer
facing systems: delivery, placing orders, credit info...
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● 46% of U.S. adults use voice assistants.
○ 42% of users primarily use their smartphone.
● App acceptance and use grows daily.
○ The average smartphone users spends 2h 15m
per day using apps.
● By the year 2020, nearly 80% of businesses will have
their own chatbot to provide proactive assistance to
their customers.
What technology is trending
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Voice
● Phone or smartspeaker
● Listen to articles of
interest or podcasts
● Add product to order
● Truck ETA
● Artificial intelligence
chatbot
Current methods available
App
● Downloadable app
● Truck ETA
● Current delivery products
● Alerts on short ships and
out-of-stocks
● Quick contact information
Chat
● Content is constantly
updated in order to provide
replies that match the
inquiries.
● Answers primary questions
and provides links to
additional information.
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