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Supply Chain Roundtable Findings

Supply Chain Roundtable Findings. David Richard Director 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

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Supply Chain Roundtable Findings

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  1. Supply Chain Roundtable Findings David Richard Director of Marketing

  2. 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

  3. Methodology – Define key issues (10) Collaboratively narrowed to three core focus areas • Uniformity - need accepted national nutrition standards for all food and beverage products served • Cost/ Value – need to improve efficiencies throughout the supply chain to maximize value • Commodities – need to have consistent national requirements for commodities & to have standard national commodities procurement requirements that preempt state & local requirements Top Three Issues

  4. 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

  5. 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

  6. 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

  7. Rounding out the Top 10 issues facing our Industry • Forecasting • Technology • Public expectations and demands • Competition • Branding • Politics • Storage Space/ Requirements

  8. The Group Purchasing Solution Michael Brion Executive Vice President Summa Purchasing Group

  9. 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

  10. 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

  11. Value for Manufacturers • Increased demand for products (volume) • Lowers sales & marketing costs • Platform to launch new & innovative products • Speed to market • Increased market share

  12. 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!

  13. 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

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