Food Industry Trends
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This document provides strategies for food distributors to stay ahead of competition. It recommends (1) controlling inbound traffic to increase profits, (2) adopting supply chain technologies like mobile devices and analytics software, and (3) benchmarking performance against metrics like space utilization. Additional tips include requiring education through certifications, collaborating through resource pooling, eliminating direct-store-delivery where possible, and embracing social media. The overall message is that distributors must be proactive about change to remain successful.
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Food Industry Trends
- 1. Seek to stay out in frontand dont look back!Richard KocherspergerSummer, 20111Don't look back. Something might be gaining on you. Satchell Paige
- 2. Tell Me and I ForgetTeach Me and I RememberInvolve me and I LearnBen Franklin2
- 4. Goals/ObjectivesView of the Food Industry: Retail/FoodserviceWhat is the Competitive Landscape?Future Insights and Opportunities7 Steps to stay ahead of your competition4
- 5. Food Waste: 40% Grow, Sell, Eat1 Billion people go to bed hungry every night!
- 6. 16,000 kids die everyday due to starvation!
- 7. 1/7 Americans are on food stamps5
- 8. Worlds Best Supply Chains6
- 10. Key Trends8
- 13. Government RegulationsCSA 2010: Expect to lose 150,000 drivers=5%Hours of service to be reduced Electronic Recorders on all vehicles.Carrier ScorecardFood Safety Modernization ACT 2010Most sweeping overhaul of the food safety system since 1938Several provisions are already in effect Increased inspection frequency, Expanded records access, Import certification authority, Mandatory recall authority , Fees, Port shopping, Whistleblower protection11
- 15. Food Industry E R13
- 18. Understand the Competitive Landscape: Leaks16
- 19. Big Moves 17100+ stores in CanadaWalgreensPhilly/Pittsburgh
- 22. Wal-Mart20
- 23. Wal-Mart21
- 24. Wal-Mart22
- 25. Wal-Mart23
- 27. Walgreens
- 28. Walgreens26
- 31. On Line Food Sales29
- 32. Amazon.comSales: $34 Billion55% North America45% InternationalProfits: $1.15 BillionInventory Turnover 11/33 daysAccounts Payable 72 daysMore e-books than hardcover and paperback30
- 33. 31
- 34. 32
- 35. Amazon.com33
- 36. Gilt Group34
- 37. Gilt TasteAmerican Wagyu Steak DuoAmerican wagyu used to be considered a pale imitation of Japanese "Kobe" beef. But that's changing. By carefully breeding Angus and wagyu cattle, Mishima's beef keeps the incredible richness of wagyu, but adds the minerally flavor of a great American steak. This four steak set proves it. Additional information$199.00 Two 6 oz Tenderloin, Two 14 oz Ribeye35
- 38. 36
- 39. Gourmet On the Go: Good Food Goes Trucking37
- 41. The Pop Up Food Store39
- 42. Manufacturers Competition40Everyone wants a piece of your business!
- 43. ThoughtTo Succeed, Stay Out in Front of Change! Sam Walton41
- 44. The Age of the Customer42
- 46. Shopper Marketing44 Shopper Marketing is the use of insights-driven marketing and merchandisinginitiatives to satisfy the needs of targeted shoppers, enhance the shopping experience ,and improve business results and brand equity for retailers and manufacturers.
- 48. Social Media46
- 49. 47
- 51. Social Media49
- 52. Social Marketing: Reality CheckSource: 2011 NGA Consumer Survey Report50
- 53. Reality CheckDespite the flurry of activity, social media marketing remains experimental in nature13% are on TwitterSocial media marketing is going to blow the shingles off the roof once people really figure out how to use itMegan OConnor, Levi Strauss51
- 54. Next Generation of ShoppingTry on clothes in 3D, share photos with friends, and store wish-listed items on smart phones52
- 55. Ipad/Tablet Changes the World53
- 56. QR Quick Response Barcode54A QR code (abbreviation for Quick Response code) is a specific matrix barcode (or two-dimensional code) that is readable by dedicated QR barcode readers and camera phones.
- 57. Nanotechnology55Contamination Sensors Pesticide ReductionAnti microbial Packaging Tracking, Tracing, Brand ProtectionImproved Food Storage TextureEnhanced Nutrient Delivery FlavorGreen Packaging Bacteria Identification and Elimination
- 58. RF-IDAlive and well!!Developments:Eliminate the check out process at the storeImprove inventory managementReduce mistakes unloading products inbound/outboundMonitor temperatures throughout supply chainMinimize paperwork56
- 59. Next Phase of E/M/F Commerce57
- 60. % of Total Category Sales Online58
- 61. E/M/F Commerce59
- 62. M-Commerce60
- 63. On Line Retailing Battleground61
- 66. F-Commerce64
- 67. Alice.com65
- 68. Pet Products66
- 69. Groupon67
- 71. Future FCPG Industry Supply ChainInformation??????RetailersCommand CenterThe ConsumerStrategic HubInformationInformationDistributorsSuppliersThird PartyManufacturingAlliances,NetworkPartnersRegional, global plantsBulk, Semi-finished,Filling Finishing,InformationInformation69
- 72. 70When there Is no vision, the people perish!
- 76. 7 Steps to Stay Out in Front!Control Inbound TrafficEmbrace TechnologyBenchmarkEducationCollaborationEliminate DSDEmbrace Social Media74
- 77. 1. Control Inbound TrafficBackhaul KPI: 28% of loads; .25 profitNeed professional traffic department CC license; Intrastate authorityPurchase all products: FOB mfg dockSet up inbound movementsDrop trailers with mfgEstablish consolidation centersPartner with other food distributorsReading todays freight bills is a challengeNeed for auditing/transportation billing is complex trying to determine total landed costNet result: Significant increase in profits75
- 78. 76
- 79. 2. Supply Chain Technologies 1. Mobile Computing DevicesSmart Phones/Tablets2. Analytics SoftwarePrescriptive: Whats going on in the supply chain now!Predictive: Whats going to happen in the future?Oil Prices; Food Commodity Prices;3. Game Changers77
- 81. Post PC Era79
- 82. DC ApplicationsSeegrid'sSafetyPickKollmorgens Pick-n-Go solution 80
- 84. Kiva Systems: Slow Movers82
- 85. 3. Benchmark Most public studies are a waste of timeParticipants lie; definitions are different;Industries applications varyKOM InternationalRofdaIFDA Trade with one another. Visit other DCs.83What gets measured , gets managedPeter Drucker
- 86. Dashboard/ScorecardSpace UtilizationEquipment UtilizationInventory AnalysisSlotting AuditsHours AccountabilityKey Performance IndicatorsWeight per CaseCube per CaseValue per CaseItem Count84
- 87. Inventory Analysis8560% of your inventory moves less than 1 pallet a weekMost Important Position: Inventory Control
- 88. Product Mix: Velocity86Most Important Position: Inventory Control
- 89. Audit/Scorecard SystemInternally, formalized performance systemMany vendors/distributors have established scorecardsSustainabilityWal-Mart SustainabilityP&G SustainabilityBusiness CollaborationNet Result: Different costs = Different Prices87
- 90. 4. Require EducationLifelong LearningOnline tools: Skype, Blackboard, Sakai, WebexWebinarsAssociations: Logistics Institute, CSCMP, APICS, ISM, Accenture Supply Chain Academy, IGA Coca Cola Institute, If you think education is expensive, try ignorance88
- 92. CSCMP
- 93. ISM
- 95. WERC
- 96. Accenture Supply Chain Academy89
- 97. 5. CollaborationPooling of resources between manufacturers; between distributors; between retailers for the purposes of reducing costsConsolidation goods for transportSharing of transport vehicles, DCs, Sharing back office processes such as:Finance, customer service, equipment maintenanceReturn center90If you want to be incrementally better: Be competitive. If you want to be exponentially better: Be Cooperative. 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 油 - Unknown
- 98. What Shippers share during horizontal collaboration91
- 99. Barriers Stopping Further Investment92
- 100. 6. Eliminate DSD30% of retail food stores sales are DSD50-75 deliveries per day every storeCost to handle: 15-30% of cost of goodsIncreased energy prices makes it very expensiveEstablish a cross-dock operation to handle all DSD products onto your transportation fleetTesco: 90% flow through DCs93
- 101. 7. Embrace Social MediaUse Social Media to your advantageYoutube: show video of your key operationsOrder selection/Loading customer ordersChecking product temperatures on inbound deliveriesCleaning the docks/aislesWarehouse/Transportation roadeoAssign a supervisor to blog about the operationsConduct a contest in the DC with teamProvide resources to listen: customers, associates94
- 102. Closing ThoughtExcellence is not a skill.油 It is an attitude.油 ~Ralph Marston95
Editor's Notes
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