Faisal Hitesh Yadav Kreeti Mahajan Pavan Kumar Varun Deep Sajja Venkata Ramanan

SUPPLY CHAIN MANAGEMENT @ SYSCO

Basic Model: Procurement through different vendors and redistribution of the items, SYSCO never got involved in the manufacturing of the products

ROBUST AND WELL CONNECTED DISTRIBUTION NETWORK 15000 separate items including medical and surgical products A dedicated logistics department, in association with the procurement department, organized inspection, purchase, and delivery of the companys three basic grades of products from manufacturers, individual vendors and producers A fleet of 4100 trucks for the delivery of foods from 3000 suppliers to approximately 3,90,000 customers comprising of institutions such as hotels, restaurants, convenience stores, healthcare and educational facilities Internal growth strategy- Fold Out Strategy This involved establishing new distribution centers in established markets The fold out market was established near to the market when compared to the its existing distribution centers

National Supply Chain Project SYSCO established a network of regional distribution channels (RDCs) also known as regional corporative Objective: Optimize the supply chain initiatives by focusing on reduction of inventory, operating cost, working capital requirements and future facility expansion Supplier consolidation facility by bringing products of over 100 suppliers under one roof Results: Shipping accuracy of 99.941 percent Increased coordination among the subsidiaries as orders received by different subsidiaries would go directly to the RDC, where the demand would be aggregated for more efficient distribution. RDC also held the safety stock for the subsidiaries in a centralized manner Increased efficiency of SYSCOs supply chain management system tremendously Increased reliability of the entire system as was able to deliver products to the entire customer base even when one of its RDCs was affected in the Katrina Cyclone Limitation: RDCs required considerable financial investment therefore the number was restricted to 7-9 and were introduced in the phased manner

National Supply Chain Project- Products Categorization

Were carried by the Regional Distribution Centers

Fast moving products- would be received by the subsidiaries directly from the supplying companies

Type B&C
Formed 10 percent of the total products - Handled by forward warehouse network

Type A Type D

All the Products of SYSCO

The ChefEx Program SYSCO established a network of regional distribution channels (RDCs) also known as regional corporative Objective: Deliver to their customers a wide range of high quality products & ingredients by connecting suppliers and customers Results: Simplified the delivery of specialty products which was a great problem because of its low volumes, smaller orders and low shelf life More than 100 suppliers offer more than 700 products Enabled restaurants to offer more choices in their menu without stocking inventory of costly raw materials Robust Supply Chain Initiatives helped the company the following four objectives: 1. Lowest net landed cost in the industry 2. Food security and Safety 3. Operational Flexibility 4. Capacity and Predictability

RESULT of SCM Initiatives

ChefEx Program
Problem Situation Distribution of specialty food products - low volumes, smaller orders, low shelf life Resulted in distribution to only limited regions and customers Proposition Connecting suppliers and customers for efficient delivery of a wide range of the highest quality gourmet poducts and ingredients

Supply Chain Mechanism

Initial quality testing of suppliers products for accredition Products made available to customers through marketing associates and website Orders taken and forwarded to appropriate suppliers Supplier invoices and finalises pricing and delivery with customers, followed by confirmation order by Operating Company through ChefEx program Suppliers delivered products to customers directly Result

Overcame regional and customer limitations in the supply chain 100+ suppliers offering over 700 products enrolled Enabled restaurants to expand choices, while reducing stocking of inventory Customers spoilt for choice in gourmet food, without inconvenience

Vendor Management

Intense understanding of suppliers and SYSCOs businesses

Awards as incentives for suppliers

Vendor Management Success

Collaborative model contributing to mutual profitability

Maintaining close relation with suppliers

IT in Supply Chain
InfoTech Initiatives
Infosys partnership to improve cost and supply chain efficiency Regional distribution centres (RDBCs) created to save transportation and inventory costs; savings worth $ 27 million; extensive integration with existing SYSCO software platforms CriticalArc Tech partnership to connect internet order system with web based supply chain management application Implementation of automated order selection system reduced errors and operating costs Electronically connected to suppliers using EFS technologies for seamless information exchange SYSCO Uniform System implemented to automate filing and indexing invoices, helped in streamlining supply chain invoices Bar coding, RFID and sensor based system implemented; increased accuracy, efficiency levels and better storage standards of foods Measurement of subsidiaries metrics in various parameters for a best practices portal reflecting scorecard for each of them

Benefits of RDBC Integration

Suppliers Fewer destinations and payments Consolidated orders , forecasts Economies of scale in shipments Accurate demand for scheduling SYSCO Lower safety stock Cost efficient transportation Less product handling Increased sales growth Customers Improved service levels Wider product selection Shorter lead times Reduction in incremental cost

Benefits from Redistribution Centers to SYSCOS Supply Chain

Thank You !!