Forecasting for the Procurement of Foods

Training Basic foundation for forecasting the procurement of foods Intro Basic foundation for forecasting the procurement of foods Presentation does not include regulations Bike rack Ground rules

Training Overview Stakeholders Menus Intro Stakeholders Menus Inventory, Product Movement, and Cost Management Product Categories Product Screening Product Specifications Child Nutrition (CN) Label Products Forecasting

Comfort Level Intro

Pre-Assessment Intro Place an identifier on the top right corner of the handout. The same identifier will be used at the conclusion of the training on the post- assessment. Handout: Pre-Assessment

Icebreaker Intro What would you like learn about forecasting the procurement of foods?

USDA Professional Standards and Learning Objectives Intro Handout: USDA Professional Standards and Learning Objectives

Terms and Definitions Serve as a reference Intro Handout: Terms and Definitions

Planning Intro Taking a systematic approach before releasing the solicitation What are some factors that contribute to the successful forecasting for the procurement of foods?

School Nutrition Supply Chain Intro SFA staff State agency Distributor Broker Manufacturer USDA

Stakeholders Specific role Basic knowledge of the other’s operation Lesson 1 Specific role Basic knowledge of the other’s operation Steadfast approach in same goal providing a healthy school environment Handout: Stakeholders’ Responsibility Handout: Stakeholders’ Tasks

Lead Time Lesson 1 Amount of time necessary to prepare for delivery of product to the district Complexity of the solicitation requirements Time needed for pre-solicitation, award meetings, and site visits State and district’s requirement

Receiving a Product Advanced, detailed planning Lesson 1 Advanced, detailed planning More cost effective price Fewer menu shortages, purchasing and delivery errors, and problems to manage Handout: Lead Time Activity: Receiving Product Handout: Procuring Timeline Example

Menu Begins the procurement process Must meet all federal guidelines Lesson 2 Begins the procurement process Must meet all federal guidelines Provide variety of shapes, textures, colors, temperatures, flavors Consider equipment, food cost, skill level, cultural foods, labor cost, environmental friendliness, USDA Foods

Using Common Denominator Units When Listing Products Lesson 2 Cases Count Pounds Edible serving size CN label (e.g., 2 oz. meat/meat alternate product)

Food Buying Guide Lesson 2

As Purchased (AP) and Edible Portion (EP) Lesson 2 AP: weight of the product as it exists when purchased EP: part of the product that can be consumed AP weight is greater than the EP weight

Unit of Measurement and Cost per Serving Lesson 2 Give careful consideration in the awarding of product Product and pack size essential

Updating Quantities Accurate Up-to-date Valid Lesson 2 Activity: Purchasing Decisions

Recipes Standardized recipes are required Lesson 2 Standardized recipes are required Tested, produces the same results and yield Determines the type and quantity to purchase Handout: USDA Foods Product Information Sheet Activity: Recipe Calculations

Stock Keeping Units (SKUs)/Product Codes Lesson 2 A unique identifier for each unit of product Often the product code number

Reducing SKUs Using the same product for more than one menu item Lesson 2 Using the same product for more than one menu item Allowing only substitutions that have been approved by the person responsible for purchasing Activity: SKUs Diced Chicken

Inventory Management Manage inventory efficiently is crucial Lesson 3 Manage inventory efficiently is crucial Increased food and labor costs can occur with erratic orders Maintain balance between inventory and receiving food Control cost while meeting needs of organization

Inventory Know the value of food and supplies Lesson 3 Know the value of food and supplies Effective receiving procedures System of accounting for items removed from inventory Effective counting of items in stock Calculate the financial value of the inventory

Inventory Tracking Automated system Assist with forecasting Lesson 3 Automated system Assist with forecasting Reduced inventory, labor cost, and paperwork

Par Stock Predetermined inventory quantity for a particular item Lesson 3 Predetermined inventory quantity for a particular item Serves as an indicator on when to reorder the product Activity: Par Stock Calculation Worksheet

Receiving Food Inventory management Quality control Cost control Lesson 3 Inventory management Quality control Cost control Monitoring contract performance – 2 CFR 200.318 (b) Handout: Ordering and Receiving Guide of Approved Products (Example)

Product Categories Distributor’s Choice Label Private Label Lesson 4 Distributor’s Choice Label Private Label Manufacturer’s Brand Label Activity: Product Categories Worksheet

Screening Products Provide a list of preapproved, equal product brands Lesson 5 Provide a list of preapproved, equal product brands Forbid specifying only a brand name product (federal regulation) Must allow a preapproved equal product to be offered Handout: Product Screening Chart

Sample Screening Evaluation Tool Lesson 5 Paper screening Appearance screening Taste screening Activity: Pasta Primavera Screening Evaluation Tool

Product Specifications Lesson 6 A set of requirements to be satisfied by a product, material, and/or process Not overly restrictive Handout: Product Description Summary Chart Activity: Mock Bean Burrito Product Description

Child Nutrition (CN) Labeling Program Lesson 7 Option to include a standardized food crediting statement on product label Authorized by USDA Requires an evaluation of a product’s formulation by FNS

CN Label Identifies contribution toward the meal pattern requirements Lesson 7 Identifies contribution toward the meal pattern requirements Serves as protection from claims Provides warranty against audit claims Simplifies cost comparison of similar products Handout: Sample CN Label

Forecasting Lesson 8 Analyzes current and historical data to accurately determine future trends Estimates the goods, products, and/or services needed Helps to maximize the use of products

Average Daily Participation (ADP) Lesson 8 Number of students that participate in the school meals program per day

Strengthening Bid Integrity Lesson 8 Develop good forecasts Ensure quantities are accurate

Sample Velocity Report Lesson 8 Provides quantity, date of purchase, and other information about each item received Is a tool for SFA staff to use when forecasting Activity: Forecasting

Forecasting is a Process Lesson 8 Average Daily Participation (ADP) Velocity reports USDA Foods Availability

USDA Foods Ready-to-use processed end-products Lesson 8 Ready-to-use processed end-products May be a cost saving for high quality products Check with State food distribution agency before entering into a contract Clarify state procurement procedures to determine a competitive process

Forecasting—Past, Present, and Future Lesson 8 Handout: Forecasting Questions Handout: Forecasting Good Practices

Conclusion Stakeholders Menu Lesson 8 Stakeholders Menu Inventory, Product Movement, and Cost Management Product Categories Product Screening Product Specifications Child Nutrition (CN) Label Program Forecasting Activity: Take Home Messages

Thank You Post-Assessment Evaluations Activity: Post-Assessment and Evaluation