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