Behind the ScenesGetting food to your door

Forecasting, Transportation and Warehousing -

Barbra Baillie - Gordon Food Service

Forecasting

● Forecasting- Expected case sales in the future

● Review year over year trends/seasonality to determine future forecasts and trends

● Add Market intelligence to the forecast

● Review outliers of what was expected to what actually happened

● Finalize forecast and share with the manufacturer what our purchases will be over time

● Forecast accuracy- Expected case sales versus actual case sales

● Communication is key

Purchasing Considerations

● Manufacturer requires a lead time which ranges from 7-21 days on average● Orders are based on the following criteria

○ Forecast needs○ Lead times○ Manufacturer minimums○ Safety stock needed○ Pallet quantities ○ Manufacturer performance rate for filing the order○ On time delivery from the carrier

● Challenges that affect Inventory Levels

○ Uncommunicated Changes in demand

○ Supply from the Manufacturer

○ Transportation

○ Weather

Challenges that affect Forecasting and Inventory Levels

● Uncommunicated Changes in demand

○ Demand Variations (menu changes and menu cycles)

○ New/Lost Business

○ Timing (accuracy of when customer orders compared to expected date)

○ Supply from the Manufacturer

● Transportation

● Weather

Transportation

The trucking industry is experiencing a low truck supply but a high

demand for freight.

● For every 2 trucks need there is 1 driver

● Driver shortages will increase

● Younger generation not as interested

● Rising wage impacts freight

● Rising freight costs

Warehousing

Warehouses and Distributor Centers will continue to implement tech-based handling solutions in

2019 as they strive to work faster, smarter, and with fewer human resources.

● There is a big push in the industry to investigate into many types of technology...from better

data and information to mechanization, automation, and worker assist technology such has

handheld applications and ergonomic solutions.

● Market demands...flexibility, SKU offering, service profiles and workforce availability.

● The industry will be seeking to make the most physically challenging work easier and more

amenable to a more diverse workforce.

● The greatest resource (capacity) issue would be people. Scarcity of resources quickly causes

labor shortages and can easily create a cascading effect on the remaining people. Major

metropolitan areas are the most significantly impacted, but the challenge is present

everywhere.

● Staffing will remain as a priority in order to succeed. Warehousing is traditionally a very

physically and mentally demanding.

Manufacturing - Alice Woods

Jennie O Turkey Store

Jennie-O Turkey Store

• Jennie-O is headquartered in Willmar MN

• 11 Company owned laying farms

• 4 hatcheries that produce 45 million poults annually

• 8 feed mills

• 7 processing plants

Business Units

• Retail

• Foodservice

• Deli

• Export/Commodity

Jennie-O Turkey Store Foodservice Division

Commercial National AccountsNon-Commercial K-12

Key team members

• Sales team

• Product Managers

• Research and development

• Quality Assurance team

• Production team

• Veterinary services team

• Farm team

• Scheduling department

• Customer Service

• Accounting

• Marketing team

• Transportation

• Administration

What does this mean?

Working Together

• Internal teamwork

• External Partners – trucking, distribution, co-packers

• Customers partnerships

Communication is Key!

Brokerage Companies

Mike Luch - Waypoint

K12 Bid Process

● Brokers begin with NEW product presentations from

our Clients

● Once approved by Director or Committee, this product

goes into a Student test, once approved

● Product submitted to be on School District Bid

● Pricing requested and submitted

● Award information received

● Notify Distribution of New product

Forecasting

● Begin process for distribution to stock NEW items

● Gather FORECASTING for distribution to begin the

ordering process for the School year

● School District Menus new product

● School district orders products to be served on menus

New Item Process

● Food shows are avenues for Brokers to present

● School Districts with NEW products from various

manufacturers

● This opportunity is for School District or Commodity

to see and vote on all new products for upcoming

school year

● Brokers must keep all their Manufacturers informed

on all phases of the selling process

the Last Mile

Carl Hopp - Gordon Food Service

“the Last Mile of Fulfillment”

Everything you order has to undergo the “last mile.”

● Consumers today want Anything > Anytime > Anywhere

● If I can order a new laptop with free 2 hour shipping, why can’t

that be done with my grocery order

● Food distributors cover the last mile while preserving the cold

chain. Perishability is high and safety is a must

● To make things faster and more flexible it costs money - there

are tradeoffs

Fast

● Shorten the distance between origin and delivery

● Creative storage- underwater, mobile markets, BOPIS, BOSS,

● New routing, designating loading zones, drones, bikes

Free

● Estimates put labor at about 70% of last-mile costs

● Use of automation, robots, electric vehicles

Flexible

● Create efficiencies that reduce time and cost.

● Sensor technology, Artificial Intelligence/machine learning to predict what to do next

Customers want: Fast, Free and Flexible

● Fast, free, and flexible are today’s customer commandments.

● Companies that emphasize flexibility can give customers the power to

choose the right mix of fast and free for today

● Companies will be able to adopt the innovations that’ll make their last-mile

cheaper and faster like their customers will want

● Companies don’t know what things we’ll need to be moved in the future, or

how or where they will be moved to

The Takeaway

The Rise of Voice and AI

The Rise of Voice

The mainstream use of voice activated assistants such as Amazon’s Alexa,

Google Assistant, and Apple’s Siri are commonplace today

● Voice is taking over. Soon, everyday household objects - from

refrigerators to deadbots - from washers to mirrors will feature voice

capabilities

● More than 35 million Americans will use voice

technology this year

● Distributors are integrating voice into all customer

facing systems: delivery, placing orders, credit info...

● 46% of U.S. adults use voice assistants.

○ 42% of users primarily use their smartphone.

● App acceptance and use grows daily.

○ The average smartphone users spends 2h 15m

per day using apps.

● By the year 2020, nearly 80% of businesses will have

their own chatbot to provide proactive assistance to

their customers.

What technology is trending

Voice

● Phone or smartspeaker

● Listen to articles of

interest or podcasts

● Add product to order

● Truck ETA

● Artificial intelligence

chatbot

Current methods available

App

● Downloadable app

● Truck ETA

● Current delivery products

● Alerts on short ships and

out-of-stocks

● Quick contact information

Chat

● Content is constantly

updated in order to provide

replies that match the

inquiries.

● Answers primary questions

and provides links to

additional information.

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