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INDUSTRY ASSOCIATIONS. Efficient Foodservice Response. September 24, 1998 Presented by: Co-Chairs, Canadian EFR Steering Committee Peter McLaughlin, President, Clover Group Gord Wilson,General Manager, Nabisco Out of Home Channels Division. EFR Completes the Food Supply Chain Puzzle.

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efficient foodservice response

Efficient Foodservice Response

September 24, 1998

Presented by: Co-Chairs, Canadian EFR Steering Committee

Peter McLaughlin, President, Clover Group Gord Wilson,General Manager, Nabisco Out of Home

Channels Division

efr completes the food supply chain puzzle
EFR Completes the Food Supply Chain Puzzle

Efficient Foodservice Response

C

O

N

S

U

M

E

R

S

Efficient Consumer Response

Quick Response

canadian efr vision
Canadian EFR Vision
  • To facilitate a more competitive, demand-driven foodservice supply chain, by encouraging adoption of recommended Best Practices for industry-wide processes
efr motivators why do we need it
EFR Motivators (Why do we need it?)

Adversarial Relationships

New Technology Enablers

Eroding Profit Margins

Time Poor,

Value ConsciousConsumer

FoodserviceSupply Chain

Lack of Basic Capabilities

Channel Blurring

Non-TraditionalCompetition

Operator

Labor

Synergy with ECR, timing is right!

why should we do efr
Why should we do EFR?
  • 1996 KPMG supply chain review concluded:
    • 52 days of inventory in the supply chain
    • Supply chain technology not well used
    • Potential savings: $400 million (Canada)
  • 1997 U.S. study -- $14 billion annual savings
process in canada
- Steering Committee comprised of manufacturers, distributors, operators, brokers

- 4 “project” committees each co-chaired by manufacturer & distributor

- EFR Steering Committee aligned with ECR Steering Committee;

- share learnings, avoid duplication, share resources

- 4 sponsoring associations (secretariats & resource support)

- Co-operative alliance with U.S. EFR initiative

FCPMC

CCGD

CFBA

ECCC

Process in Canada

EFR

ECR

Product ID Bar Code

Electronic Commerce

Supply Chain Demand Forecasting

U.S. EFR

Education/Communication

principles
Principles ….
  • Agenda based on common enablers pertinent to all companies, irrespective of size or sector.
  • Companies to “pilot” recommendations to identify implementation issues and critical success factors.
  • Participating companies to set an example by implementing EFR recommendations.
what are we doing
What are we doing?
  • 4 EFR Committees
  • 1. Product Identification/Barcodes
  • 2. Electronic Commerce
  • 3. Supply Chain Demand
  • Forecasting
  • 4. Communications and Education
what are we doing10
What are we doing?
  • Three project committees to:
    • assess situation in foodservice industry through surveys, etc. (form hypotheses, assumptions)
    • conduct pilots and/or studies to determine “business case”, critical success factors, barriers to implementation
    • publish “best practice” recommendations in report to industry
    • scorecard and benchmark
product identification barcodes
Product Identification/ Barcodes
  • Objective:
  • To implement and use standard product identification codes as per industry (ECCC) standards and guidelines, including barcodes on SKUs, cases and pallets.
  • Guiding Principle:
  • Use accurate and timely information in a computer-based system to support effective marketing, production and logistics decisions.
product identification barcodes12
Product Identification/Barcodes
  • Action:
  • 1. Reviewed standards and ECR best practices
  • 2. Mapped out business requirements to identify
  • gaps for foodservice
  • 3. Surveyed industry (April) to understand level of
  • barcode activity and implementation readiness
  • 4. Established recommended industry
  • implementation timeline
  • 5. Publishing “Barcoding Basics” report
product identification barcodes13
Product Identification/Barcodes
  • Recommendation:
    • UPC and SCC-14 numbers assigned to all products and cases, price lists updated, by October 31, 1998
    • All cases marked with scannable barcodes by October 31, 1999
    • Major distributors to sign-off and send letter to suppliers requesting compliance
  • Endorsed by EFR Steering Committee, FCPMC Foodservice members, CFBA
electronic commerce
Electronic Commerce
  • Objective:
  • To integrate Electronic Commerce (EDI) into common business practices, from the order through to reconciliation.
electronic commerce15
ElectronicCommerce
  • Action:

1. Survey of foodservice manufacturers, operators and distributors conducted. Information session for distributors held (April);

2. Pilots/projects underway: - Lipton/SERCA;

Lynch/Gordon; Cara/Summit/Nabisco

Business case (based on ABC analysis) being developed for each;

3. Technical analysis of applicability of VICS 4010 to

foodservice being done

supply chain demand forecasting
Supply Chain Demand Forecasting
  • Objective:
  • To develop communication and information sharing guidelines (bar coding, EDI, demand data sharing, etc.) that facilitate trading partner planning processes and results in the reduction of waste/cost throughout the supply chain.
slide17

Supply Chain Demand Forecasting

  • Action:
  • 1. Extensive list of issues affecting the ability to effectively forecast developed:
  • 2. Three separate Manufacturer/Distributor pilots established to test hypotheses regarding key issues of SCDF effect on inventory levels and communication;
  • 3. Study conducted to identify operators’ perspectives regarding EFR, technology, and SCDF-related issues
education communications
Education &Communications
  • Objectives:
  • To communicate progress and promote participation in EFR initiatives to all participants in the foodservice supply chain through trade media and associations.
education communications19
Education &Communications
  • Action:
    • 1. Extensive mailing list 5,000+ of key audiences developed (operators, distributors, manufacturers, media, associations,etc.)
    • 2. Associations actively spreading news (newsletters, events, press releases): CRFA to support communicating
    • 3. Updates given at industry conferences/events:
      • - September 24 session at ECR Conference
      • - February 15 EFR Conference
    • 4. Series of fax bulletins initiated
    • 5. Presence on Web (through ECR)
summary
Summary
  • Work in progress--12 - 18 month timeframe to complete recommendations
  • Regular progress reports through associations, foodservice events
  • Quarterly Steering Committee meetings
  • Seek more operator involvement on all four committees
conclusion
Conclusion

“The future just ain’t what it used to be”

Yogi Berra