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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

David Richard

Director of Marketing

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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

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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

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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

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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

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3. Commodities distribution economics affect cost

  • 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

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Rounding out the Top 10 issues facing our Industry distribution economics affect cost

  • Forecasting

  • Technology

  • Public expectations and demands

  • Competition

  • Branding

  • Politics

  • Storage Space/ Requirements

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The Group Purchasing Solution distribution economics affect cost

Michael Brion

Executive Vice President

Summa Purchasing Group

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Group Purchasing: An Innovative Solution which addresses distribution economics affect costCost/ 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

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Value for Distributors distribution economics affect cost

  • 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

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Value for Manufacturers distribution economics affect cost

  • Increased demand for products (volume)

  • Lowers sales & marketing costs

  • Platform to launch new & innovative products

  • Speed to market

  • Increased market share

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Value for Schools distribution economics affect cost

  • 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!

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Summa Purchasing Group distribution economics affect cost

  • 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