Nutrition Program –South Texas Coop REGION ONE … 1... · • One Inventory Management System...
Transcript of Nutrition Program –South Texas Coop REGION ONE … 1... · • One Inventory Management System...
Child Nutrition Program – South Texas Coop
REGION ONE ESC
Business Review
February 11, 2014
Agenda• Labatt History• Value Added Services
Business Review Available upon RequestData Reports Available to MembersAnnual , Semiannual or Quarterly ReportsIntegrationsCost Analysis
• What is Cost-of-Goods• New Item Requests • Cost Containment Analysis• How Is Fill Rate Calculated• Pros and Cons of Rollover Vs New Bid
From The Beginning
Labatt Food Service Sales Growth
• One Inventory Management System
• One Computer
• One Set of Buyers
• One Accounting Office
• Inventory Transfers
One Company: Multiple Distribution Centers
Distribution Map
Labatt Distribution Centers
Constructed 1971 380,000 ft²
ASI & Silliker Certificates
SCHOOLS31%
NATIONAL ACCOUNTS
23%
QUICK SERVICE17%
MEAT MARKETS10%
INDEP OPERATOR9%
MILITARY7%
HEALTH CARE2%
LABATT ONLINE1%
85% Prime Vendor Customers
Percentage of Sales by Category
Value Added Services
• Order Accelerator
• Nutritional/CN Label Retrieval
• Corporate Reports
• Material Safety Data Sheets
• Labatt Invoice Inquiry
• Accounts Receivable Statements
• Change Password
• Logoff
Customer Web Applications
Order Accelerator
Order Accelerator
Pack/SizeDescription
Last Purchase Price
This Week’s Price
Item #Order Qty
Order History Order Summary
Critical ItemsWednesday September 5, 2012
System Backup
Web Corporate ReportsWeb Corporate Reports
Web Corporate Reports CONFIDENTIAL
Sortable Columns Can Transfer Web Reports into Excel
Drill down into a table of Items with Usage for
a Particular Vendor
Sales Usage Report CONFIDENTIAL
CONFIDENTIALDistributor Usage Reports
Location 1Location 2Location 3Location 4Location 5Location 6Location 7Location 8Location 9Location 10
Distributor Usage Report
Location 1Location 2Location 3Location 4Location 5Location 6Location 7
Location 8Location 9Location 10Location 11Location 12
CONFIDENTIAL
CONFIDENTIALDistributor Usage Reports
Location 4
Integrations
Labatt Retrieves Order for processing
Labatt Connection-Streamline business (Current View)
Point of Sales Systems
EDI System Interfaces
Inventory Systems
• Chef Tech• Systems Design• Horizon• Foodtrack• Posi Touch• B2B• Prizm• SureQuest• Radiant• Visual Boss• Agilysys
• SIMS• ECS• AFMI• SPVI
• Radiant• FoodTrak• SPOT• Bistro• SureQuest
Accounting Interfaces
• QuickBooks• MAS200• Solomon• Great Plains• MiChoice• Pentamation• Lawson• Peachtree• PeopleSoft• Radiant
*not all systems listed; customization available
Computer Systems: Interface Availability
OutsAccounting & Web Tools
Online Invoicing
Online Invoicing
Online Invoicing-Table Detail
Web Accounts Receivable Statements
Online Invoicing-Scanned Copy
OutsOperational Fill Rate
Voice Technology
Operational Efficiency
Warehouse Technology Video
• Mini-Load/Warehouse Automation• Stretch warehouse capacity• Reduce errors• More room for additional SKU’s that have higher velocity
Warehouse
OBC
1. Increased Efficiency in Routing
2. Driver Job Satisfaction
3. Safety
4. Temperature Integrity
5. Reduced Operational Errors (Shorts)
OutsScope Of School Business
Scope of Labatt School Business
School Districts Serviced by Labatt
Labatt Distribution Center
Region 1 Delivery Sites 306
Single Source Coops serviced by Labatt
School Districts: 730 districts
Campus Locations: 3,350 locations
Avg Weekly Deliveries: 4,000 deliveries
Total Students: 2,570,000
Annual Purchases: $390,000,000
Region 1 ESC West Texas Coop
Region 3 ESC Tejas Coop (Sodexo)
Region 7 ESC NM School Nutrition Coop
Texas 20 Coop Multi-Region Coop
Scope of Labatt’s School Business
Customer Cost Of Goods
Manufacturer %,80%
Distributor %, 12%Freight %,
8%
Vendor %
Distributor %
Freight %
OutsCNP-STC Report
Region 1 Historical Growth With Labatt
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales $
*2014 sales are projected
Region 1 Historical Growth With Labatt
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Cases
*2014 cases are projected
Purchases
Year Purchase $ Cases11-12 $70,619,892 2,638,857
12-13 $76,521,525 2,754,967
13-14* $81,661,086 2,840,126
*2014 cases are projected
Year CasesOrdered
Cases Shipped
Fill Rate
11-12 2,666,382 2,628,523 98.6%12-13 2,809,506 2,746,976 97.8%13-14 1,818,117 1,788,127 98.4%
Fill Rate
How Is Fill Rate Calculated
Calculating Fill Rate
• Cases Ordered Minus Cases Shipped Divided By Cases Ordered
• Product shortage is removed from an order if there is a manufacturer shortage, ie; OB Mac
• Product Is Removed From an Order due to short lead time
• Delays due to weather conditions
Operational Service Level
Year UnitsSold
Shorts Damages Mispulls OPSL
11-12 2,638,857 587 1,033 578 99.92%
12-13 2,754,967 532 1,400 270 99.92%
13-14 1,050,847 242 935 56 99.88%
*Company average is 5 errors per 10,000 cases
Scope of Commodity Business
Cases Sold 1.4 Million
Discount Given $17.4 Million
Districts Participate 571
Commodity Vendors 46
Commodity Items 905
*2012-2013 School Year
NOI Commodity Purchases
Year Purchase $ Cases DiscountReceived
11-12 $12,762,026 266,300 $3,316,213
12-13 $14,042,897 288,098 $3,740,017
13-14 $15,588,905 308,473 $4,128,159
Pros and Cons of a RollPros and Cons of a Rollover
Pros of a Rollover
• Leverage – Most manufacturers will not take the full market
increase – They want to reward the customer for extending the
contract• Guaranteed that a rollover is going produce an increase
less than that of a new bid• Anticipate similar increase
– Market research– Preliminary discussions from manufacturers
Cons of a New Bid
• Manufacturers reset– Make up for changes in the market that were
absorbed during the rollover year• Cost Increase
– Distributor reevaluation of overhead/operating expense
– New bid year will never be between 1-2%, like it can on a rollover
Price Increase Percentages
School Year
Type Price Change %
13-14 Rollover 1.06%12-13 Rollover 3.60%11-12 New 3.10%10-11 Rollover 0.05%09-10 Rollover 2.07%08-09 New 6.36%
Cost ContainmentCost Containment
Cost ContainmentSY 2013 vs. 2014
2014 TOTAL: $45,497,580 2013 TOTAL: $45,014,169 DIFFERENCE: $483,411 % DIFFERENCE: 1.06%
Cost Containment Detail – Chain 969
2014 TOTAL: $1,605,9962013 TOTAL: $1,597,629 DIFFERENCE: $8,367% DIFFERENCE: 0.52%
Cost Containment – Chain # 969
Pros and Cons of a RollThank You.