Supplier Webinar Topic: National Supply Chain Execution

Supplier Webinar

Topic: National Supply Chain Execution

***Sysco Proprietary and Confidential***

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Agenda

National Supply Chain Execution Components• RDC Supplier Selection Process – Presented by Susan

Jacobs, Sr. Manager of National Supply Chain Compliance

• Supply Chain Operations / Compliance Requirements – Presented by Susan Jacobs, Sr. Manager of National Supply Chain Compliance

• Supply Chain Inventory Management Information – Presented by Maria Ortiz, Sr. Manager of National Supply Chain Inventory Management

• National Supply Chain Transportation Information – Presented by Yvonne Robinson, Supplier Development Manager

• National Supply Chain Forward Warehouse Network – Presented by Andrew Cafcalas, Sr. Manager Forward Warehouse Network

Frequently Asked Questions (FAQ’s)


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RDC Supplier Selection Process

Designed to Realize Maximum Benefit

Determination of Volume


RDC Supplier Selection Process

Major Costs Considered to determine Supply Adoption Savings

• Savings from Handling and Transactions

• Cost Transfers from Current State Freight, Unloading, Transshipment and Warehouse/Inventory

Network Modeling Tools

Vetting Process

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RDC Supplier Selection - FAQ

How much will it cost a supplier to participate? • There are no fees to participate in the RDC. Sysco wants to

drive costs out of the supply chain and share in that savings with the supplier.

Are there any requirements for a supplier to participate?

• Yes. All RDC suppliers must be cooperative billed through BSCC. There are other requirements like, e-commerce and labeling requirements that are discussed at length during supplier adoption meetings. Through the adoption process, we develop a plan to match each supplier’s capabilities to the requirements for participation. Sysco has a complete Supplier Compliance program, which clearly defines the requirements, on the Sysco website.


RDC Supplier Selection - FAQ

How can a supplier ensure that they are included in the RDC?

• We expect that approximately 40% of the total case volume will flow through the RDC, so not all suppliers will participate. We believe that there are opportunities to be more efficient with every supplier, but will focus our efforts on finding the efficiencies for the RDC volume. Any supplier, who is interested in the benefits of the RDC, should be open to a discussion of changes to improve the Sysco/supplier supply chain.

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National Supply Chain Operations/Compliance

Central Liaison

Supply Chain Operations (SCOPS) Role

SCOPS Goal

SCOPS team members can be reached by e-mail at [email protected]

mailto:[email protected]


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National Supply Chain Compliance

All suppliers participating in the RDC Network should read and agree to comply with the requirements outlined in RDC Network Compliance Manual

These requirements include, but are not limited to: CHEP Pallets are required for all shipments into the RDC All loads are shipper load, count, and seal Electronic Advance Ship Notices (ASN) including Lot Number,

Expiration Date, and/or Manufacture Date must be generated for every Purchase Order

Lot Number and Dating must be physically printed on the case License Plates (LPN) corresponding to the ASN must be applied

to every pallet in approved locations Individual SKUs must be placed on their own pallet Shelf Life at the time of receipt must be sufficient to

redistribute through the entire supply chain Data integrity


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National Supply Chain Compliance

The National Supply Chain Operations / Compliance team collaborates with participating suppliers in two distinct areas:

Ramp Execution

Item Attribute and Supplier Document Collection

Data Validation

Compliance Requirement Readiness

License Plate and Exception Approvals

Steady State

Operational, Shelf Life, and ASN Reporting

Item Attribute Updates and Data Clean Up

Product Quality and Shelf Life Returns

Compliance Issue Arbitration


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National Supply Chain Operations/Compliance - FAQ

What is acceptable shelf life if we cannot achieve 80% for all items?

• We expect to receive the freshest product possible from our suppliers. If you have concerns about meeting 80%, we will work with you during your transition into the RDC to reach agreeable shelf life requirements.

How do I get set up on CHEP pallets?• CHEP pallets are required at the RDC. If you currently are not

shipping on CHEP, we suggest you contact your CHEP representative. If you do not have a CHEP representative you can dial 407-355-6609, extension 6334, to reach a CHEP Insides Sales Associate.

What lot / date information should be transmitted on an electronic ASN?

• The lot / date information shown on the case is the information that needs to be transmitted with the exception of Julianne dates which need to be converted to an actual date.


National Supply Chain Operations/Compliance - FAQ

If partial pallets of product are ordered, do items have to be separated by a CHEP pallet?

• Yes. A pallet should be placed under each unique item of one layer or greater.

Does product ordered in less than full pallet quantities require a label per layer?

• No. One unique label is required for any quantity greater than one layer up to a full pallet.

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Supply Chain Inventory Management

After go-live your SCIM Replenishment Analyst is your primary point of contact for day-to-day changes

RDC Order Fill Rates of 99.7% or better

• Supplier shortages may be required to be delivered at supplier expense

Communicate PO quantity changes to your RDC Replenishment Analyst at a minimum of 48 hours before shipment

Item substitution is not allowed without prior discussion and approval from the Replenishment Analyst


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Supply Chain Inventory Management

Provide four weeks advance notice for changes of any type such as packaging, changes in pickup locations, discontinuing items and/or new items

Opportunity to reach an agreement of sharing forecast to assist in production and inventory planning through Collaborative Planning Forecast and Replenishment (CPFR)

Opportunities to align ship dates with supplier production from plant facilities may be possible


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National Supply Chain Inventory Management - FAQ

What will the orders look like from the RDC?• The RDC orders in full truckload, container or railcar increments in almost

every instance.

• SKU level order increments are based on the industry average within Sysco’s supply chain. A supply chain model with plant direct locations may include a commitment to procure key items in vendor pallet increments. Most volume is procured in quantities that enable vendor pallet shipments.

What does Replenishment Analyst mean?• Replenishment Analyst is the team member within Supply Chain Inventory

Management who is responsible for managing the procurement activity for the RDC network.

Do orders from the RDC change after placement?• Our goal is to reduce and minimize cost. Orders will rarely change after

placement.


National Supply Chain Inventory Management - FAQ

Will the orders be consistent?• The order placement day of week and pick up day of week will

be the same. The Replenishment Analyst will work to balance the demand to best meet the needs for all areas.

Is there a way of knowing in advance what will be ordered?

• Through Collaborative Planning, Forecast and Replenishment a supplier can gain insight of future demand at a SKU level. Each week an updated file is provided which shows future demand by day out into the future. Contact your Replenishment Analyst for more information about this tool.

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National Supply Chain Transportation

Freight cost should be reflective of actual transportation cost which includes all delivery components such as line haul, fuel surcharges, unloading, detention, etc.

Transportation requirements - apply to ALL products that are distributed from each ship point, whether sourced, non-sourced

• Pallets

• Shipper Load & Count

Complete the Supply Chain Profile with your freight program along with freight rates or pick up allowances. This document consist of three tabs:

• Questionnaire

• TAB2

• Contact information


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National Supply Chain Transportation - FAQ

If I am a FOB supplier will I need to complete the supply chain profile form?

• Yes. Please complete the questionnaire tab only on the supply chain profile form. This provides more than just rates but gives the Transportation Department current locations, warehouse information or rail capabilities, etc.


Sysco Forward Warehouse Network

Suppliers in the network have access to all Sysco Operating Companies

The Sysco Forward Warehouse Network (F.W.N.) offers suppliers a network of facilities to store products

• Network is available for new supplier additions

• Includes specialty programs – Imports

• Supplier can utilize network for non-Sysco business-Retail for private account sales

• Supplier has the ability to have private, consigned or owned products in F.W.N.

Sysco site managers measure service level, metrics and facility audits monthly

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Sysco Forward Warehouse NetworkFrozen-Chill-Dry capability

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Sysco Forward Warehouse Network – FAQ

How do I get a warehouse rate?• Contact the Sysco Site Manager who will help facilitate the rate

with the appropriate warehouse.• Menu of program options

Private account Owned account Consigned account Cross dock

What is the difference between private, consigned and cross dock accounts?

• Private – Supplier account orders flow thru the supplier; Sysco has no visibility to the inventory.

• Consigned – Supplier account orders flow thru Sysco to the warehouse; Sysco has visibility to orders and inventory.

• Cross Dock - Supplier pays a pallet fee and delivers to the warehouse.

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Sysco Forward Warehouse Network - FAQ

Can you provide pictures of an inbound damage claim?

• The Sysco Site Manager, as part of our Standard Operating Procedures (SOP), has all warehouses take pictures of inbound damage and provide them to Sysco, the supplier and the Site Manager.

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Addendum

The RDC Supplier Selection Process and the National Supply Chain Operations/Compliance sections; Susan Jacobs responsibilities have been transferred to Angela Fay, Supply Chain Operations Manager

The National Supply Chain Transportation section, Yvonne Robinson’s responsibilities have been transferred to Danny Nguyen, Supplier Development Manager

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Wrap-up

Download Linkshttp://sysco.com/supplier/supplier_compliance.html

Supplier questions can be directed through Discussion Section in the eSourcing Tool

http://sysco.com/supplier/supplier_compliance.html

Documents

Supplier Webinar Topic: National Supply Chain Execution