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Supply Chain Modeling: Logistics Dr. J. Vande Vate

Supply Chain Modeling: Logistics Dr. J. Vande Vate. Teofilo N. Hafeitz Nicholas Lucic George Williams. SYSCO Food Services Inc.

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Supply Chain Modeling: Logistics Dr. J. Vande Vate

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  1. Supply Chain Modeling: LogisticsDr. J. Vande Vate • Teofilo N. Hafeitz • Nicholas Lucic • George Williams

  2. 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.

  3. SYSCO’s History • 1946 Zero Foods is created • 1969 John F. Baugh forms SYSCO Corporation • First year of sales reached $115 million

  4. Company Goals • Provide customers with quality products • Deliver in a timely manner • Remain #1 in the Food Services Market

  5. 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

  6. 101 Distribution Centers • Broadline Facilities - 63 • Specialty Produce - 22 • SYGMA Facilities - 13 • Custom-Cutting Meat Operations - 3

  7. Foodstuffs Produce Meats Poultry Seafood Dairy Dry goods Frozen foods Beverages Food Service Supplies Table top products Equipment Non-foods Products and Services

  8. SYSCO Brands

  9. Suppliers • 1500 suppliers nationwide • Custom made products (SYSCO Brands) • Close relationship with suppliers

  10. Customers • Restaurants • Hospitals Nursing Homes • Schools Colleges • Hotels

  11. SYSCO #1 in Market 3 times as bigger 9% of the Market Closest competitors US Foodservices Alliant PYA Monarch Market Competition

  12. Market Competition

  13. SYSCO Customers Transportation Warehousing Transportation Information Flow Factory Transportation Transportation Vendor/plants/ports Warehousing

  14. SYSCO orders from Suppliers • Inventory Forecasting • Seasonal Items • Individual EOQ calculations • Barcode System (SOS)

  15. Transportation Two possibilities: • Supplier ships the products • SYSCO transports the products

  16. Transportation to Customers • Assignment of routes with RoadNet • Proper loading of trucks • Shuttle System

  17. Delivery Promise • 24-hour lead time guarantee 99.6% • 3-hour service window

  18. 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

  19. SYSCO Food Services of Altanta Inc.

  20. SYSCO’s Future • Implementation of SUS in all locations • “Fold-Out” strategy • Present and Future warehousing designs • Maintain their goal to stay at #1!!!

  21. L-Shape Warehouse Design

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