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Regional Meetings Winter 2014. USDA Foods Single Bank. USDA Foods. HPS as your Commodity Administrator. The HPS Commodity Portal HPS staff Fee structure and Billing Volume Discounts HPS experience. HPS Commodity Portal. http://epcmec.hpsusdafoods.org Browsers that work the best

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Regional meetings winter 2014

Regional Meetings

Winter 2014

USDA Foods Single Bank

USDA Foods


Hps as your commodity administrator
HPS as your Commodity Administrator

  • The HPS Commodity Portal

  • HPS staff

  • Fee structure and Billing

  • Volume Discounts

  • HPS experience


Hps commodity portal
HPS Commodity Portal

  • http://epcmec.hpsusdafoods.org

  • Browsers that work the best

    • Mozilla Firefox

    • Google Chrome


Hps staff
HPS Staff

President & CEOTom LaPres

  • Senior Director of Finance & Administration

    Rick Jones

  • VP of Member Development and Customer Relations

    Michelle Pleiness

  • VP of Contracting and New Business Development

    Kevin Crampton

Contracting

National Contracts MedAssets-Healthcare

Furniture, Finishes, & Equipment

Member Relations

Healthcare Members

Administration

Member Relations

Associate Members

Interior Design

Support Services

Contracting

Regional Contracts

All Segments

Member Relations

Education Members

Technology

Business Development

USDA Foods Administration

Corporate Communications

Member Development

All Segments


Hps staff1
HPS Staff

  • Dedicated Point Person

  • Customer Service hours 8a.m.-5p.m. (est)

  • Established Vendor/Broker relationships

  • Backup staff at office


Fee structure
Fee Structure

  • Transparent

  • One bill a year, billed by Awarded Distributor

  • In Conjunction with Volume Discount


Volume discounts
Volume Discounts

  • All discounts given will be passed on to districts

  • The awarded distributor (GFS) will distribute the Volume Discounts in Conjunction with the EPC/MEC Commodity Administration Bill

  • Report available on Portal

  • **May be in year two**



How will that work example
How will that work? (Example)

You will be receiving the Volume Discount for School Year (SY) 2013-2014.  Disbursement of these rebates is in conjunction with your one-time annual fee for your Commodity Administration Service (CAS) for SY 2014-15.  The Volume Discount for SY 2013-2014 will be in one of two forms:

GFS Credit Memo:

  • The amount shown on the credit memo is the net effect of the credit less the annual fee for Commodity Administration Services due to EPC/MEC.

  • This rebate has covered your fee to EPC/MEC and your district is paid in full for CAS for SY 2012-13.

  • Please process as a typical credit memo with GFS.

    GFS Invoice:  

  • The amount shown on the invoice means either:

    • The credit earned covered a portion of the CAS fee

      OR

    • Your district did not accrue any Volume Discounts in SY 2011-12 (there were no purchases from the manufacturers offering Volume Discounts).

  • Please submit payment to GFS, which in turn will remit payment for your EPC/MEC CAS fee. This process eliminates the need for you to cut an additional check for your CAS fee.

  • If your district does not receive either form of this communication from GFS, your district will receive a CAS fee bill directly from HPS.


Hps experience
HPS Experience

  • Transparency

  • Expertise (USDA Relationships)

  • A presence at ACDA

  • Branded Portal website

  • Excellent Customer Service for your members

    • Same Time Zone

    • Dedicated point person

    • Back-up personnel


Usda foods basics
USDA Foods Basics

  • What do commodities mean to customers

  • Importance of customers staying on track

  • Concept of Single Bank


What commodities mean to customers
What commodities mean to Customers

  • Schools earn @$0.27 per meal served

    • Do not lose track of this Fact:

      Your schools earned this amount by serving meals

      • This is not “Free Money”

      • It is not just given to the school

      • Schools can make a difference based on performance

      • Schools need to earn and utilize these funds to have a successful program.


The value of usda foods
The Value of USDA Foods

  • Average commercial cost of a meal: $1.50

  • Average price of a meal: $2.25

  • Food cost with no commodity: ($1.50/$2.25)66%

  • Food cost with commodity: ($1.50-$0.27)/$2.25)54%

  • Customers must effectively utilize their USDA Foods to realize this 12% in lower food costs.

  • Job one is to Spend Your Money


District level diversion method
District Level Diversion Method

  • District decides how many pounds to go to the processors of their choice.

  • This decision is made in January/February timeframe of the prior school year

  • Cannot spend any more or less than pounds allocated


Inefficiencies of district diversion
Inefficiencies of District Diversion

  • Lower flexibility in the menu offering

  • Allocating dollars to product and unable to utilize in the current school year

  • Low commodity utilization

  • High carryover balances

  • High level of frustration


Single bank
Single Bank

  • What will it mean for me?????


Single bank process
Single Bank Process

  • Michigan piloted SY 2011-2012

  • HPS and GLC implemented SY 2013-2014

  • Ohio and California will start SY 2014-2015

  • HPS has been successfully managing this system in the 2013-2014 school year

    • Great results

    • High member satisfaction

    • State Dept. pleased with results


Why make this change
Why make this change?

  • The system is becoming inefficient

  • Members do not have sufficient data to make the decisions they need to make

  • Converting Commercial Sales to Commodity Sales

  • USDA Utilization Directives

    • Use it or Lose it.

    • What does that mean?


Hps advantages
HPS Advantages

  • Membership dues are paid once per year

  • Volume Rebate

    • (Members receive 100% of rebates earned)

  • Emphasis on Customer Service

    • Customer Service hours 8am-5pm EST.


Single bank system
Single Bank System

  • What does that mean?

  • Timeline

  • Processed Items

  • Volume Discounts

  • Brown Box

  • DoD Produce


What does it mean for your district
What Does it Mean for your District?

  • Time saved on Survey Process

    • No need to calculate pounds

  • Ability to change processors when menu dictates

  • Allows members to focus on what they do best:

    • Feed Kids


What does it mean for your district1
What Does it Mean for your District?

  • Do I need to do a survey for Brown Box and DoD if my district does not want those items?

    • No. If you feel it is best for your district to use all of your entitlement on Processed, do not complete the survey and all of your entitlement will go into the Single Bank System

  • What if I forget to order Brown Box and DoD during the survey period?


What about my carryover
What about my Carryover?

  • Processed

    • Will be included in the Single Bank

    • The Councils will have access to those pounds

    • They do not go back to Processor, get donated, or vanish

  • Non Processed

    • Will Carryover and you will see value of that carryover because you have already landed it


How does it all work
How does it all work?

  • How much Entitlement can I spend in the Single Bank System?

  • What Processors will be available to order from?

  • Can I spend too much at a Processor?

  • What about “Fair Share”?


How much can i spend in the single bank
How much can I spend in the Single Bank?

  • Depends on how much you divert to Non-Processed and DoD Produce.

  • All remaining entitlement will be available in the Single Bank System.

  • As an example if your district has $50,000 in entitlement and you

  • divert $5,000 to Non-Processed and an additional $5,000 to DoD

  • your district would be able to spend $40,000 on in the Single Bank System on Processed vendors.

  • Example

    Total Entitlement – Non-Processed Allocated – DoD Allocated = Single Bank Entitlement

    ($50,000) ($5,000) ($5,000) ($40,000)


What processors will i be available to order from
What Processors will I be available to order from?

  • You can order from ANY approved EPC/MEC Processor.

  • How will I know what items to order?

    • GFS Experience and the Green Shield Icon.

    • Approved Product List on the Portal

C

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What about fair share
What about Fair Share?

  • HPS has a system in place because per USDA a Fair Share must be ensured

  • Each member has a target of pounds at each Processor

  • We will determine targets from purchasing history

  • Once the target is reached, you will not be able to order from that Processor

  • If that happens you will call HPS to see if the overall Councils balance at that Processor would allow you to be loaded with additional pounds


How do these targets work
How do these Targets work?

  • HPS will review your purchasing history and then:

    • Determine a minimum # of pounds that all members will have

    • Establish a buffer

    • This establishes your target

    • Place order with USDA

  • This will ensure Fair Share for all Members


What if i do not use a processor
What if I do not use a Processor?

  • Every member will start with a “Minimum Target” from every processor

  • HPS will reduce the balances by 10% of pounds from those members that had zero usage in any given month

  • Then HPS will re-distribute those pounds to members who are utilizing that processor


What happens if i surpass my target
What Happens if I surpass my Target?

  • A notification will be sent to GFS and you. You will no longer get the Commodity discount for those vendor’s products.

  • At this point you can email HPS to determine if there are enough pounds available to be loaded with some more target pounds.

  • If that is not available you can continue to purchase NOI items from GFS at the Commercial price.


Are brown box and dod part of single bank
Are Brown Box and DoD part of Single Bank?

  • No. These products are ordered exactly as they are today

    • Complete the Survey

    • Products are assigned to your district

    • Place order through GFS

    • Storage Fees for Brown Box still apply

    • Survey dates for Brown Box Feb. 1st thru 21st


How can i manage this program
How can I manage this program?

  • You can monitor progress on your Home Page of http://epcmec.hpsusdafoods.org

  • You will be sent a notification from HPS when your Single Bank is 95% depleted

  • PAL Report


Will i still utilize commodity data companies
Will I still utilize Commodity Data Companies?

  • Yes, these companies are still very important in your managing of the USDA Foods program.

  • They are still your primary source for sales verification and have many resources that can help you utilize the program better.


K12 processor link usage reports
K12 & Processor Link Usage Reports

  • You Will Always be at 100% - Don’t Worry!


What can hps bring to epc mec
What can HPS bring to EPC/MEC?

  • Email Notifications

    • Brown Box Delivery

    • EPC Specific Messages

    • Thresholds Notifications/Entitlement Notifications

  • Reports

    • Product List by DC

    • Broker Contact Information

    • Multiple thermometers for easy monitoring of progress

    • Detailed Brown Box order- With estimated delivery dates

    • Pie Chart of Manufacturers


Need assistance
Need assistance?

  • Please do not hesitate to call or email us!!


Regional meetings winter 20141

Regional Meetings

Winter 2014

Questions?

Kevin Crampton | HPS, LLC

Vice President of Contracting and Business Development

[email protected]|269-795-3308



USDA Foods

  • Monitoring Dollars – districts will no longer monitor pounds. Instead, they will monitor their dollars, much like a checkbook, on the hpsusdafoods.org website.

  • Spending - a district can make commodity purchases until 100% of their Total Entitlement is spend. This data is updated daily on the hpsusdafoods.org site.


USDA Foods

Diverted to Processors Actual Spend

Tyson $20,000 $18,000

JTM $20,000 $17,500

Schwan's $20,000 $19,500

Jennie O $20,000 $17,000

Pilgrims Pride $20,000$16,000

$100,000 $88,000

Carry Over = $12,000 (under spent)


USDA Foods

Diverted to ProcessorsActual Spend

Tyson $20,000 $18,000

JTM $20,000 $17,500

Schwan's $20,000 $19,500

Jennie O $20,000 $17,000

Pilgrims Pride $20,000$16,000

$100,000 $88,000

Single Bank

Allowance $ 20,000

McCain $10,000

Gold Kist $ 5,000

Land O Lakes $ 7,000 $22,000

Additional $22,000 of commodity items to bring down the overall balance.


USDA Foods

  • Per USDA directive the commodity fair market value will not come off of your PAL report until it is delivered to your facility. Thus a district will no longer have a balance at the processor or processor.



Member Diversion

USDA Foods



Product List

USDA Foods


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