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INDUSTRY ASSOCIATIONS

INDUSTRY ASSOCIATIONS. Efficient Foodservice Response. September 24, 1998 Presented by: Co-Chairs, Canadian EFR Steering Committee Peter McLaughlin, President, Clover Group Gord Wilson,General Manager, Nabisco Out of Home Channels Division. EFR Completes the Food Supply Chain Puzzle.

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INDUSTRY ASSOCIATIONS

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  1. INDUSTRY ASSOCIATIONS

  2. Efficient Foodservice Response September 24, 1998 Presented by: Co-Chairs, Canadian EFR Steering Committee Peter McLaughlin, President, Clover Group Gord Wilson,General Manager, Nabisco Out of Home Channels Division

  3. EFR Completes the Food Supply Chain Puzzle Efficient Foodservice Response C O N S U M E R S Efficient Consumer Response Quick Response

  4. Canadian EFR Vision • To facilitate a more competitive, demand-driven foodservice supply chain, by encouraging adoption of recommended Best Practices for industry-wide processes

  5. EFR Motivators (Why do we need it?) Adversarial Relationships New Technology Enablers Eroding Profit Margins Time Poor, Value ConsciousConsumer FoodserviceSupply Chain Lack of Basic Capabilities Channel Blurring Non-TraditionalCompetition Operator Labor Synergy with ECR, timing is right!

  6. Why should we do EFR? • 1996 KPMG supply chain review concluded: • 52 days of inventory in the supply chain • Supply chain technology not well used • Potential savings: $400 million (Canada) • 1997 U.S. study -- $14 billion annual savings

  7. - Steering Committee comprised of manufacturers, distributors, operators, brokers - 4 “project” committees each co-chaired by manufacturer & distributor - EFR Steering Committee aligned with ECR Steering Committee; - share learnings, avoid duplication, share resources - 4 sponsoring associations (secretariats & resource support) - Co-operative alliance with U.S. EFR initiative FCPMC CCGD CFBA ECCC Process in Canada EFR ECR Product ID Bar Code Electronic Commerce Supply Chain Demand Forecasting U.S. EFR Education/Communication

  8. Principles …. • Agenda based on common enablers pertinent to all companies, irrespective of size or sector. • Companies to “pilot” recommendations to identify implementation issues and critical success factors. • Participating companies to set an example by implementing EFR recommendations.

  9. What are we doing? • 4 EFR Committees • 1. Product Identification/Barcodes • 2. Electronic Commerce • 3. Supply Chain Demand • Forecasting • 4. Communications and Education

  10. What are we doing? • Three project committees to: • assess situation in foodservice industry through surveys, etc. (form hypotheses, assumptions) • conduct pilots and/or studies to determine “business case”, critical success factors, barriers to implementation • publish “best practice” recommendations in report to industry • scorecard and benchmark

  11. Product Identification/ Barcodes • Objective: • To implement and use standard product identification codes as per industry (ECCC) standards and guidelines, including barcodes on SKUs, cases and pallets. • Guiding Principle: • Use accurate and timely information in a computer-based system to support effective marketing, production and logistics decisions.

  12. Product Identification/Barcodes • Action: • 1. Reviewed standards and ECR best practices • 2. Mapped out business requirements to identify • gaps for foodservice • 3. Surveyed industry (April) to understand level of • barcode activity and implementation readiness • 4. Established recommended industry • implementation timeline • 5. Publishing “Barcoding Basics” report

  13. Product Identification/Barcodes • Recommendation: • UPC and SCC-14 numbers assigned to all products and cases, price lists updated, by October 31, 1998 • All cases marked with scannable barcodes by October 31, 1999 • Major distributors to sign-off and send letter to suppliers requesting compliance • Endorsed by EFR Steering Committee, FCPMC Foodservice members, CFBA

  14. Electronic Commerce • Objective: • To integrate Electronic Commerce (EDI) into common business practices, from the order through to reconciliation.

  15. ElectronicCommerce • Action: 1. Survey of foodservice manufacturers, operators and distributors conducted. Information session for distributors held (April); 2. Pilots/projects underway: - Lipton/SERCA; Lynch/Gordon; Cara/Summit/Nabisco Business case (based on ABC analysis) being developed for each; 3. Technical analysis of applicability of VICS 4010 to foodservice being done

  16. Supply Chain Demand Forecasting • Objective: • To develop communication and information sharing guidelines (bar coding, EDI, demand data sharing, etc.) that facilitate trading partner planning processes and results in the reduction of waste/cost throughout the supply chain.

  17. Supply Chain Demand Forecasting • Action: • 1. Extensive list of issues affecting the ability to effectively forecast developed: • 2. Three separate Manufacturer/Distributor pilots established to test hypotheses regarding key issues of SCDF effect on inventory levels and communication; • 3. Study conducted to identify operators’ perspectives regarding EFR, technology, and SCDF-related issues

  18. Education &Communications • Objectives: • To communicate progress and promote participation in EFR initiatives to all participants in the foodservice supply chain through trade media and associations.

  19. Education &Communications • Action: • 1. Extensive mailing list 5,000+ of key audiences developed (operators, distributors, manufacturers, media, associations,etc.) • 2. Associations actively spreading news (newsletters, events, press releases): CRFA to support communicating • 3. Updates given at industry conferences/events: • - September 24 session at ECR Conference • - February 15 EFR Conference • 4. Series of fax bulletins initiated • 5. Presence on Web (through ECR)

  20. Summary • Work in progress--12 - 18 month timeframe to complete recommendations • Regular progress reports through associations, foodservice events • Quarterly Steering Committee meetings • Seek more operator involvement on all four committees

  21. Conclusion “The future just ain’t what it used to be” Yogi Berra

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