Supply Chain Modeling: Logistics

Dr. J. Vande Vate

• Teofilo N. Hafeitz

• Nicholas Lucic

• George Williams

SYSCO Food Services Inc.

SYSCO is the largest marketer and distributor of foodservice products in North America. Operating from 101 distribution facilities, the company provides products and services to about 356,000 restaurants and other foodservice operations across the contiguous United States, Alaska, The District of Columbia, Hawaii and portions of Canada.

SYSCO’s History

• 1946 Zero Foods is created

• 1969 John F. Baugh forms SYSCO Corporation

• First year of sales reached $115 million

Company Goals

• Provide customers with quality products

• Deliver in a timely manner

• Remain #1 in the Food Services Market

SYSCO Food Services Inc.

• Employs approximately 40,000 workers

• Has 101 Distribution centers

• 270,000 unique products

• 356,000 customers nationwide

• Company Headquarters in Houston, TX

101 Distribution Centers

• Broadline Facilities - 63

• Specialty Produce - 22

• SYGMA Facilities - 13

• Custom-Cutting Meat Operations - 3

Products and ServicesFoodstuffsProduceMeatsPoultrySeafoodDairyDry goodsFrozen foodsBeverages

Food Service SuppliesTable top productsEquipmentNon-foods

SYSCO Brands

Suppliers

• 1500 suppliers nationwide

• Custom made products (SYSCO Brands)

• Close relationship with suppliers

Customers

• Restaurants

• Hospitals Nursing Homes

• SchoolsColleges

• Hotels

Market Competition

SYSCO

• #1 in Market• 3 times as bigger• 9% of the Market

Closest

competitors• US Foodservices• Alliant• PYA Monarch

Market Competition

Information Flow

Warehousing

Warehousing Transportation

Transportation

Transportation

Transportation

Factory

Vendor/plants/ports

Customers

SYSCO orders from Suppliers

• Inventory Forecasting

• Seasonal Items

• Individual EOQ calculations

• Barcode System (SOS)

Transportation

Two possibilities:

– Supplier ships the products

– SYSCO transports the products

Transportation to Customers

• Assignment of routes with RoadNet

• Proper loading of trucks

• Shuttle System

Delivery Promise

• 24-hour lead time guarantee 99.6%

• 3-hour service window

Atlanta Warehouse

• 5th largest in the SYSCO network

• 13,000 unique items (850 suppliers)

• $19 million inventory

• Inventory Turnover - 17 to 18 days

• Plant Tour

SYSCO Food Services of Altanta Inc.

SYSCO’s Future

• Implementation of SUS in all locations

• “Fold-Out” strategy

• Present and Future warehousing designs

• Maintain their goal to stay at #1!!!

L-Shape Warehouse Design