Agenda Product reformulations Canned Fruit Market info - - PowerPoint PPT Presentation

Agenda

• Product reformulations
• Canned Fruit Market info
• Lead-time for orders/forecasting
• Review of Region 1 purchases
• Integration review
• What’s new at Labatt
• Review Texas 20 vs Region 1

Product Reformulations

Changes Due to Product Reformulation

• Half of grains must be whole‐grain rich
• The industry standard of identity for

whole‐grain products changed to 16 grams

• Zero grams trans fat per portion

This has contributed to over 150 Labatt item # changes for the 2013‐2014 School Year

Canned Fruit Market

Processed Canned Fruit

Processor 2008 2009 2010 2011 2012 Del Monte 171,300 187,600 162,500 139,800 139,500 Seneca 113,300 128,700 133,700 122,700 106,400 PCP 117,900 131,800 117,100 113,100 105,700 Freezers 12,300 12,300 11,200 8,000 8,200 Total Tons 414,800 460,400 424,500 383,600 360,100

‐ 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 11‐12 12‐13 13‐14 Cases School Year

Canned Fruit Cases Sold

$‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 11‐12 12‐13 13‐14 Sales Dollars School Year

Canned Fruit Sales

Region 1 Canned Fruit Purchases

Canned Fruit Sales VS. Total Tons Processed

320,000 340,000 360,000 380,000 400,000 420,000 440,000 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 10‐11 11‐12 12‐13 13‐14 Tons Processed Cases School Year Cases Sold Processed Tons

Lead‐time on orders

Reach‐Out & Lead Time

• Reach out days composed of cycle and lead
• Cycle – how often Labatt cuts a PO
• Lead – how long it takes product to reach our warehouse
• nce the PO has been cut
• Add cycle and lead together to obtain reach out days or

lead time for the product

• Company average for reach out is 21 days for all vendors

Schwan’s Supply Chain Planning

• Our demand planning process is driven by a

weekly, item‐level customer forecast

• Typically, our production schedule is “locked
• r firm” for the next 3 weeks and 6 weeks for

items that use pepperoni or unique packaging/raw materials

• Our inventory On‐Hand levels are normally 40

Days of historical Sales or less

Bid Forecasting System

• System quickly responds to increase in purchases (menu changes, start of school)
• System immediately notifies the Labatt sales rep of any unusual or order quantities
• Allows for “real-time” adjustments to the Labatt buyer’s purchasing forecast via the web

Purchasing & Forecasting

Closure Dates

Forecast Exception Task Queue

Forecast Exception Detail

Purchases

Labatt School Growth 1998‐2013

1998 2002 2006 Current

School Districts serviced by Labatt Labatt Distribution Center

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

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

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 $ Cases 11‐12

$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

Fill Rate

Year Cases Ordered 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

2,889,215 2,832,058 98.0%

Operational Service Level

Year Units Sold 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 Discount Received 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

Cheese Block

Cheese Barrel

Live Cattle

Chicken Breast

Pork Belly

Diesel

$3.00 $3.20 $3.40 $3.60 $3.80 $4.00 $4.20 $4.40 2011 2012 2013

Integrations

Labatt Connection-Streamline business (Current View)

Labatt Retrieves Order for processing

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

Computer Systems: Interface Availability

CONFIDENTIAL

*not all systems listed; customization available

Accounting & Web Tools

Online Invoicing

Online Invoicing

Online Invoicing-Table Detail

Online Invoicing-Scanned Copy

Web Accounts Receivable statements

Web Accounts Receivable Statements

What’s new at Labatt?

New Ordering Site

Home Page

Stay up to date with Labatt features

Creating an Order

Select a Location

Click here to change locations

Shopping Lists

You can toggle back and forth between your shopping lists while building a cart

Contains items purchased in the last 8 weeks Contains items on your default order guide

Item Catalog

Search for catalog items by keyword or category

Features and Reports

My Reports

Last 45 days of invoices, credits, and payment information Weekly produce reports from the Labatt Produce Department

Invoices and Credits

Filter by location or invoice # Click on the invoice/credit # to view transaction details

Market Reports

Pending Orders

Click on the acknowledgement # to view order confirmation

Order Confirmation

Order confirmation for pending orders

Text Capability

Labatt Text Alerts

• Required

First Name * Last Name * Business* (i.e. Gary's Bar & Grill) Phone Number * Your privacy is important to us. We will never share your information Customer Number Your customer ID number located on your invoices. Additional Phone Number 1 S hare alerts with someone else in your organization Additional Phone Number 2 S hare alerts with someone else in your organization Which alerts are you interested in receiving? (Note: Delivery Delay Updates and Order Reminders will be released soon) Estimated Time of Arrival messages when you are the next customer on our delivery schedule Delivery Delay Updates if we encounter any problems on the road. Order Reminders if you haven't put in your order an hour before your cut off time. Other Job Title (i.e. owner, manager, chef) City

Submit

On-Board Computer

• 1. Increased Efficiency in

Routing

• 2. Driver Job Satisfaction
• 3. Safety
• 4. Temperature Integrity
• 5. Reduced Operational

Errors (Shorts)

On Board Computers (OBC)

Action Log/Itinerary Map

Where’s My Truck?

ETA

Texas 20 vs Region 1

Review of Texas 20 pricing

• Region 1 has 1,640 items, only 41.7% exact matches
• n Texas 20 bid.
• Members would have to switch over 820 bid items or

purchase off bid.

• Depending on item mix, Region 1 bottom line is 2‐4%

cheaper.

• Texas 20 increase was an estimated 4 ‐ 4.5% where

Region 1 was 2.4% for SY 12/13 to SY13/14

• Region 1 average miles are 210 more miles than

Texas 20

What drives pricing?

• Volume
• Freight
• Turn
• Miles from the warehouse

Customer Cost-of-Goods

Manufacturer %, 80% Distributor %, 12% Freight %, 8%

Vendor % Distributor % Freight %

Thank You