supply chain roundtable findings david richard director of marketing
TRANSCRIPT
Supply Chain Roundtable FindingsDavid RichardDirector of Marketing
Purpose of Supply Chain Round Table
• Gain a heightened understanding of the supply chain in order to optimize partnership among the stakeholders
»Manufacturers
»Distributors
»School districts
• Goal: To operate more efficiently and remove cost from the system
Methodology – Define key issues (10)
Collaboratively narrowed to three core focus areas
1. Uniformity - need accepted national nutrition standards for all food and beverage products served
2. Cost/ Value – need to improve efficiencies throughout the supply chain to maximize value
3. Commodities – need to have consistent national requirements for commodities & to have standard national commodities procurement requirements that preempt state & local requirementsT
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Iss
ues
1. Lack of Uniformity
Causes most pain for all stakeholders
• Increased proliferation of state regulations & local wellness policies mandates different sets of nutrition requirements
• Variances from district to district adds cost
»Causes manufacturers to customize products
»Creates excess inventory
2. Cost/Value - Traditional factors associated with distribution economics affect cost
• Volume –amount of groceries purchased
• Product Variety – the more products purchased, the higher the cost of delivery
• Operational dynamics – including size & frequency of deliveries
• Consistency of orders
• Timeliness of payment
3. Commodities
• Each state has different regulations which can be complex & confusing
• Timing cycle for commodity programs is not consistent with commercial bidding cycles
»USDA responsiveness could improve
»Need transparency throughout the process
Rounding out the Top 10 issues facing our Industry
• Forecasting
• Technology
• Public expectations and demands
• Competition
• Branding
• Politics
• Storage Space/ Requirements
The Group Purchasing Solution
Michael Brion
Executive Vice President
Summa Purchasing Group
Group Purchasing: An Innovative Solution which addresses Cost/ Value (2nd ranked priority)
Group Purchasing adds value for all three stakeholders
• Distributors
• Manufacturers
• School food service operations
All three constituents must realize benefit for improvement to occur
Value for Distributors
• Standardization of products
• Strategic relationships
»Reduced administrative costs» Improved back of the house operations»Better inventory turns» Improved forecasting of purchasing»Ability to heighten communication
Value for Manufacturers
• Increased demand for products (volume)
• Lowers sales & marketing costs
• Platform to launch new & innovative products
• Speed to market
• Increased market share
Value for Schools
• Lower supply costs
• Improved Supply Chain
• More participation in bidding process
• National influence in a traditionally regionalized industry
• Heightened communication among stakeholders
There is power in numbers!
Summa Purchasing Group
• Exclusively focused – Built for savings… Designed for Education!
• Risk Free participation
»No cost to participate – “The proof is in the price of the pudding”
»No obligation to buy
• Ready for Spring Bids
• Learn more about Summa tomorrow