a collaborative program that engages manufacturers, chain operators and distributors in the development of foodservice best practices that delivers a more efficient and effective supply chain.The output of the work will ensure product is in the right place, right time and right quantity and the consumer is 100% satisfied with their food experience.
SCO CHARTER
The International Foodservice Manufacturers Association (IFMA) assigns the highest priority to full compliance with both the letter and the spirit of all applicable federal and state antitrust laws, and it is vital that this meeting be conducted in a manner consistent with that policy.
It is important to bear in mind that those participating in this meeting may work for your employer’s competitor. Accordingly, in order to ensure both strict compliance with the antitrust laws and the avoidance of any appearance of improper or anticompetitive conduct, all participants in this meeting are prohibited from discussing competitively sensitive information of competitor companies before, during and after this meeting. Competitively sensitive information generally includes non-public information about the setting of prices (including discounts, margins and sales and credit terms), profit margins or cost data, production restrictions, allocation of markets or customers, and your company’s future strategies and planning, as well as any other sensitive competitive information.
If, at any time during the course of the meeting, IFMA’s legal counsel believes that a sensitive topic under the antitrust laws is being discussed, or is about to be discussed, counsel will so advise the participants and halt further discussion of that topic. As participants in this meeting, you should likewise not hesitate to voice any concerns you may have in this regard. In addition, if your employer has an antitrust compliance policy, we encourage you to adhere to it as well. If you have any questions about appropriate topics for discussion, do not hesitate to consult with counsel.
Antitrust Reminder
What to Expect Ground Rules
o Challenge of the status quo o Ideaso Inspiration o New connectionso Some work and some fun o Raise the bar for the industry
o Participate
o Respect agenda / times
o No sacred cows
o There will be debate
o 80/20 alignment
o No sharing of proprietary information
o We will solve many issues and overcome many obstacles together
discovery
foundation & definition process tools
(data & comm.) activation training
pilot industry engagement
PROJECT FLOW
foundation & definition process tools
(data & comm.) activation training
MEETINGS
march 8 april 20 june 22 august 2 tbd
las vegas chicago chicago chicago chicago
TODAY
Retail: $671B (52%)
FS: $624B (48%)
$1.3 trilliontotal food spend
source: Datassential
there is only one dollar
Historic View
Food: $1.3T (100%)
Future View
Just one-third of AFH is eaten at that venue
>50% of AFH food is eaten at home, work or school
74% of food is eaten at home
One in six AFH instances also includes food from home
13%
11%
15%
8% 9%
20%
15%
9%
0 to 3 4 to 5 6 to 10 11 to 15 16 to 20 21 to 30 31 to 50 Over 50
61%LTO ACTIVITY
14.0
14.8
18.619.2
20.820.3
21.7
24.6
22.5
24.8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
LTO ACTIVITY
Starbucks 294Ram Restaurant & Brewery 230
Dunkin Donuts 208Au Bon Pain 204Bonefish Grill 192
Taco Bell 190Perkins Family Restaurant 183
Wawa Food Market 162Red Lobster 158
Maggiano's Little Italy 156Eat'n Park Restaurants 148
Sonic Drive-In 145Ninety Nine Restaurant And Pub 144
Coco's Bakery 138Mcdonald's 136
Granite City Food And Brewery 136Outback Steakhouse 135Carrabba's Italian Grill 132
Baskin-Robbins 131Bob Evans 126
total new items since june 2014
MOST PROLIFIC
suppliers want
operators want
consumers want
permanent menuproduct sales
product salesdifferentiation
differentiationreason for being
Increased Complexity and Volatility
Constantly modify supply chain to meet the ever-changing demands
Commodities ConsumersRestaurantsSuppliers Distribution Transportation
Challenges & Pressures• Ability to defend
food claims• Supply chain
readiness• Product
quality/recalls• Addressing
diversifying consumer preferences
• Sustainability
• Technology adoption
• Accurate demand/supply planning
• Improving inventory planning
• Improving flexibility and responsiveness
• Food safety & shelf life
• Dual sourcing & commodities management
• Improving visibility to supplier operations
• Optimizing network to reduce total landed cost and maintain quality / service
• Expanding distribution to support footprint growth
• Integration-enabling technologies
• Optimizing labor& equipment spend
• Minimizing waste / spoilage
• Omni-channel management
• Expanding choices -traditional & non-traditional
• Customer loyalty & relationship management
Rethinking the Supply Chain
Plan Design Source Distribution Restaurant Operations
• Demand Planning• Supply Planning• LTO / Promotions
Management• Integrated Business
Planning (Marketing, Menu, etc.)
• Network Asset Optimization
• Network Flow Optimization
• Risk / Contingency Management
• Category Management
• Supplier Management• Cost & Price
Management• Quality & Spec.
Management
• Logistics - Supplier to Restaurant
• DC / Warehouse Management
• Inventory Management
• Traceability
• Inventory Management
• Replenishment• Operations and Labor• Customer Experience
Collaboration
Technology / Platform / Analytics
Best Practices / Standards
Supply Chain as a Growth Enabler
Foodservice Supply Chain Capability Framework
your current approachchallenges & opportunitiesyour areas of investmentdesired outputs/outcomes for this workbarriers to implementationfunctions involved
TOPICS
SUPPLY CHAIN OPTIMIZATION
current approach
“Our marketing and LTO calendar is built around
not having waste”
“We don’t do a very good job of talking about the issues that really
need solving”
How would you characterize the effectiveness and efficiency of your current interaction and collaboration between you and your key channel partners around supply chain management?
Highly effective/efficient 10%
Somewhat effective/efficient 75%
neither 2%
Somewhat inefficient/ineffective 13%
Highly ineffective/inefficient 0%
“I don’t know what I don’t know”
State of Current Supply Chain Interaction & Collaboration
Identify your greatest areas of challenge or frustration when it comes to Supply Chain Optimization interaction with suppliers, chain operators and/or distributors?
Collaborative communication
Accurate & timely forecasting
Transparency / information sharing
Inventory management
Top 4 Areas of Challenge or Frustration
“We do not have a published
process for this”
Our greatest inefficiency is...
“the amount of time spent in back and forth communication as a result of not having a
clean process that outlines how stakeholders work together.”
“the lack of true sharing of information between all
trading partners.”
Great results
Predictability
Systems
Time management
Innovation
Forecasting
Sharing
Collaboration
TransparencyData driven
Visibility
Alignment
Communication
Opportunities for Optimization
Process
What is your organization’s single biggest Supply Chain opportunity area relative to interactions with external partners?
Better Communication
Lowering/controlling costs
LTO Management
Demand Predictability
Collaboration
“Accurate forecasts provided by the partner… with the appropriate lead time to execute cost efficient supply.”
“Lowering our total costs”
“Communication and execution. It seems we always have a breakdown in one area with external partners.”
“Testing, forecasting and execution on LTO items.”
“Collaborative communication among cross functional teams.”
your areas of investment
“I haven’t seen a platform worth investing in”
“We have a lot of gaps in information”
What areas have been the focus of your organization’s investment/efforts in improving Supply Chain Optimization
Process improvements 63%
Communication, connecting to the right people 63%
Information accuracy 51%
Execution 32%
Skills & capabilities development 22%
Information accuracy 22%
Investment Areas
“We need ideas on how to take waste
out of the system”
desired outputs / outcomes for this work
“A collaborative process among stakeholders to mitigate issues and help lower costs within
the supply chain”
“A best-practice approach across the three parties that can be leveraged as the basis of
dialogue, planning and execution.”
What is the most important thing you would like this Best Practice to address that would impact your businesses?
Improvement, internally and externally with partners
Collaborative executional processes
Standards in reporting
Metrics for project needs
Win-win efficiency solutions
Effective communication, partnership and relationship building
LTO execution
Creating improved transparency
Minimizing write-offs and excess inventory
A Best Practice for/in…
What do you see as the most valuable OUTPUTS of this IFMA-sponsored best practice model around Supply Chain Optimization?
A collaborative process for gaining better transparency and better communication between channel partners 73%
A best practice that defines an approach/process for managing core products and LTOs 53%
Project Outputs Needed
What do you see as the most valuable OUTCOMES of this IMFA-sponsored best practice model around Supply Chain Optimization?
Improved visibility and communication across the supply chain 82%
Ideas for supply chain flexibility and agility 50%
Ideas that will lead to cost savings 50%
Validation or improvement ideas to your current approach 42%
Project Outcomes Desired
“Our distribution model is the same as it was 20 years ago”
What functions ARE CURRENTLY involved? What functions SHOULD be involved?
Functional Involvement
From To
procurementsupply chain
sales
procurementsupply chainsalesoperationsmarketingsr. managementculinary
barriers to implementation“Old school thinking…
lack of desire to learn new things or change behaviors… secrecy vs transparency between trading partners…
not creating win-win outcomes… a lack of willingness to work toward the common goal”
What are the greatest barriers to implementing a new best practice around supply chain optimization?
Paradigm shift in thinkingResistance to changeBreaking old habitsEstablished behaviorsOld school thinkingSecrecy
SkillsEffective models/processData accuracySystemsPoor forecastsAbility to execute
Having the right partners
CommunicationTrustWillingness to share informationFlexibilityCommitmentAccountability
Budget
Barriers to Implementation
Openness Attitude Enablers
Team $
workshop #1barriers & challenges
discuss at your tablelist 5 to 7 key challenges
identify top 2 and whyreport out to full board
purpose: synthesize the current challenges in Supply Chaintiming: 30 minute discussion
workshop #2solutions that overcome
discuss at your tableidentify potential solutions for top 2 challenges
report out to full board
purpose: brainstorm solutions to address current challenges timing: 30 minute discussion
workshop #3define SCO best practice
review your card deck of DEFINITION WORDSuse blank cards to add more wordspick favorite words for desired state
write a 1-2 sentence definition using favorite wordsreport out to full board
purpose: create future state definition for supply chain optimizationtiming: 30 minute discussion
ForecastingCollaborativeInsight-drivenDataFoodservice industryTransparencySharingValue-addedCross-functionalEfficiencyEffectivenessCost savingsVisibilityCommunicationInventoryValue Chain
card deck starters
UP NEXT
Embassy SuitesRosemont O’hare
8:30am – 4pm
foundation & definition process tools
(data & comm.) activation training
march 8 april 20 june 22 august 2 tbd
las vegas chicago chicago chicago chicago
MEETING #2
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