Agenda Product reformulations Canned Fruit Market info - PowerPoint PPT Presentation

Agenda • Product reformulations • Canned Fruit Market info • Lead-time for orders/forecasting • Review of Region 1 purchases • Integration review • What’s new at Labatt • Review Texas 20 vs Region 1

Product Reformulations

Changes Due to Product Reformulation • Half of grains must be whole ‐ grain rich • The industry standard of identity for whole ‐ grain products changed to 16 grams • Zero grams trans fat per portion This has contributed to over 150 Labatt item # changes for the 2013 ‐ 2014 School Year

Canned Fruit Market

Processed Canned Fruit Processor 2008 2009 2010 2011 2012 Del Monte 171,300 187,600 162,500 139,800 139,500 Seneca 113,300 128,700 133,700 122,700 106,400 PCP 117,900 131,800 117,100 113,100 105,700 Freezers 12,300 12,300 11,200 8,000 8,200 Total Tons 414,800 460,400 424,500 383,600 360,100

Region 1 Canned Fruit Purchases Canned Fruit Sales Canned Fruit Cases Sold $7,000,000 180,000 160,000 $6,000,000 140,000 $5,000,000 Sales Dollars 120,000 $4,000,000 Cases 100,000 80,000 $3,000,000 60,000 $2,000,000 40,000 $1,000,000 20,000 $ ‐ ‐ 11 ‐ 12 12 ‐ 13 13 ‐ 14 11 ‐ 12 12 ‐ 13 13 ‐ 14 School Year School Year

Canned Fruit Sales VS. Total Tons Processed 180,000 440,000 160,000 420,000 140,000 120,000 400,000 Tons Processed 100,000 Cases 380,000 80,000 60,000 360,000 40,000 340,000 20,000 0 320,000 10 ‐ 11 11 ‐ 12 12 ‐ 13 13 ‐ 14 School Year Cases Sold Processed Tons

Lead ‐ time on orders

Reach ‐ Out & Lead Time • Reach out days composed of cycle and lead • Cycle – how often Labatt cuts a PO • Lead – how long it takes product to reach our warehouse once the PO has been cut • Add cycle and lead together to obtain reach out days or lead time for the product • Company average for reach out is 21 days for all vendors

Schwan’s Supply Chain Planning • Our demand planning process is driven by a weekly, item ‐ level customer forecast • Typically, our production schedule is “locked or firm” for the next 3 weeks and 6 weeks for items that use pepperoni or unique packaging/raw materials • Our inventory On ‐ Hand levels are normally 40 Days of historical Sales or less

Bid Forecasting System

Purchasing & Forecasting • System quickly responds to increase in purchases (menu changes, start of school) • System immediately notifies the Labatt sales rep of any unusual or order quantities • Allows for “real-time” adjustments to the Labatt buyer’s purchasing forecast via the web

Closure Dates

Forecast Exception Task Queue

Forecast Exception Detail

Purchases

Labatt School Growth 1998 ‐ 2013 2006 1998 Current 2002 School Districts serviced by Labatt Labatt Distribution Center

Scope of Labatt’s School Business School Districts: 730 districts Campus Locations: 3,350 locations Avg Weekly Deliveries: 4,000 deliveries Total Students: 2,570,000 Annual Purchases: $390,000,000 Single Source Coops serviced by Labatt Region 1 ESC West Texas Coop Region 3 ESC Tejas Coop (Sodexo) Region 7 ESC NM School Nutrition Coop Texas 20 Coop Multi-Region Coop

Region 1 Historical Growth With Labatt Sales $ $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 *2014 sales are projected

Region 1 Historical Growth With Labatt Cases 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 *2014 cases are projected

Purchases Year Purchase $ Cases 11 ‐ 12 $70,619,892 2,638,857 12 ‐ 13 $76,521,525 2,754,967 13 ‐ 14* $81,661,086 2,840,126 *2014 cases are projected

Fill Rate Cases Cases Fill Year Ordered Shipped Rate 11 ‐ 12 2,666,382 2,628,523 98.6% 12 ‐ 13 2,809,506 2,746,976 97.8% 13 ‐ 14 2,889,215 2,832,058 98.0%

Operational Service Level Year Units Shorts Damages Mispulls OPSL Sold 2,638,857 587 1,033 578 99.92% 11 ‐ 12 2,754,967 532 1,400 270 99.92% 12 ‐ 13 13 ‐ 14 1,050,847 242 935 56 99.88% *Company average is 5 errors per 10,000 cases

Scope of Commodity Business Cases Sold 1.4 Million Discount Given $17.4 Million Districts Participate 571 Commodity Vendors 46 Commodity Items 905 * 2012-2013 School Year

NOI Commodity Purchases Year Purchase $ Cases Discount Received 11 ‐ 12 $12,762,026 266,300 $3,316,213 12 ‐ 13 $14,042,897 288,098 $3,740,017 13 ‐ 14 $15,588,905 308,473 $4,128,159

Cheese Block

Cheese Barrel

Live Cattle

Chicken Breast

Pork Belly

Diesel $4.40 $4.20 $4.00 $3.80 2011 $3.60 2012 2013 $3.40 $3.20 $3.00

Integrations

Labatt Connection -Streamline business (Current View) Labatt Retrieves Order for processing

Computer Systems: Interface Availability Point of Sales Accounting EDI System Inventory Systems Interfaces Interfaces Systems • Chef Tech • QuickBooks • SIMS • Radiant • Systems Design • MAS200 • ECS • FoodTrak • Horizon • Solomon • AFMI • SPOT • Foodtrack • Great Plains • SPVI • Bistro • Posi Touch • MiChoice • SureQuest • B2B • Pentamation • Prizm • Lawson • SureQuest • Peachtree • Radiant • PeopleSoft • Visual Boss • Radiant • Agilysys *not all systems listed; customization available CONFIDENTIAL

Accounting & Web Tools

Online Invoicing

Online Invoicing

Online Invoicing-Table Detail

Online Invoicing-Scanned Copy

Web Accounts Receivable statements

Web Accounts Receivable Statements

What’s new at Labatt?

New Ordering Site

Home Page Stay up to date with Labatt features

Creating an Order

Select a Location Click here to change locations

Shopping Lists You can toggle back and forth between your shopping lists while building a cart Contains items on Contains items purchased in your default order the last 8 weeks guide

Item Catalog Search for catalog items by keyword or category

Features and Reports

My Reports Last 45 days of invoices, credits, and payment information Weekly produce reports from the Labatt Produce Department

Invoices and Credits Filter by location or invoice # Click on the invoice/credit # to view transaction details

Market Reports

Pending Orders Click on the acknowledgement # to view order confirmation

Order Confirmation Order confirmation for pending orders

Text Capability

Labatt Text Alerts • Required First Name * Last Name * Business* (i.e. Gary's Bar & Grill) Phone Number * Your privacy is important to us. We will never share your information Customer Number Your customer ID number located on your invoices. Additional Phone Number 1 S hare alerts with someone else in your organization Additional Phone Number 2 S hare alerts with someone else in your organization Which alerts are you interested in receiving? (Note: Delivery Delay Updates and Order Reminders will be released soon) Estimated Time of Arrival messages when you are the next customer on our delivery schedule Delivery Delay Updates if we encounter any problems on the road. Order Reminders if you haven't put in your order an hour before your cut off time. Other Job Title (i.e. owner, manager, chef) City Submit

On-Board Computer 1. Increased Efficiency in Routing 2. Driver Job Satisfaction 3. Safety 4. Temperature Integrity 5. Reduced Operational Errors (Shorts)

On Board Computers (OBC) Action Log/Itinerary Map

ETA Where’s My Truck?

Texas 20 vs Region 1

Review of Texas 20 pricing • Region 1 has 1,640 items, only 41.7% exact matches on Texas 20 bid. • Members would have to switch over 820 bid items or purchase off bid. • Depending on item mix, Region 1 bottom line is 2 ‐ 4% cheaper. • Texas 20 increase was an estimated 4 ‐ 4.5% where Region 1 was 2.4% for SY 12/13 to SY13/14 • Region 1 average miles are 210 more miles than Texas 20

What drives pricing? • Volume • Freight • Turn • Miles from the warehouse

Customer Cost-of-Goods Manufacturer %, 80% Vendor % Distributor %, Distributor % 12% Freight %, 8% Freight %

Thank You