1. FY17 Controller Call Series
The presentation will begin momentarily
February 2017

2. Unit Controller Calls – February 7 & 9
Kronos Analytics (Arlene Cabrera)
Inventory (Umberto DAlessandro)
Updates to AR Dashboard (Bridget Jozwiak)
eVAR update (Carol Smith)
Questions
Unit Controller Calls – February 7 & 9
Unit Controller Call February 2017

3. Time for Progress Lead with Labor Program and Analytics Overview
Feb. 7, 2017
T4P - Lead with Labor Program
Confidential and proprietary to Sodexo. Do not share or post without proper consent.

4. Agenda
Review the importance of Time for Progress and achieving our labor targets
Introduce the Lead with Labor program
Provide an overview of Analytics
Discuss your role in driving true workforce management
Capture your feedback and answer your questions
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5. Why a New Labor Approach was Needed
Profitable Growth
We continue to lag behind our competition
We simply cannot compete in the market place with our current disadvantage
Cost per Employee:
Sodexo’s cost/employee is 6% higher than our main competitors
Opportunity: $40M to $60M a year savings through labor optimization
Sodexo
Cost per Employee
Competitor
Cost per Employee
Source: Sodexo, Compass, BPI Research 5

6. Three Key Metrics Labor Optimization Clock Punch % Schedule vs Actual
Consistently punching on the clock 85% or higher.
Labor Optimization
Schedule vs Actual
Actual hours within +/- 5% of scheduled hours.
Scheduled Overtime
Operating less than 3% of actual hours for 7 day business and 1.5 % for 5 day business
11/14/2018
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7. Lead with Labor Program
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8. Lead with Labor Objectives1
Develop Capabilities
Scheduling & Timekeeping
Labor analytics
Supporting tools and processes 2
Drive Adoption
Behaviors that drive growth and better decision making
POM
Decisions based on labor metrics
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9. Lead with Labor Program -- Two Pronged Approach
High Impact Accounts
Broad Organization
Site visits
Training Modules
Regional Meetings
Labor Champions
Focused topic areas
Open Forums
Communications
Toolkits
Goals:
Improve performance through high touch approach
Uncover underlying drivers
Best practices on how to address and coach for improvement
Goals:
Build and reinforce true workforce management mindset
Uncover underlying drivers for each topic
Best practices on how to address and coach for improvement
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10. Time for Progress Analytics
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11. Time for Progress Analytics
The Time for Progress Analytics Dashboard is our next step toward becoming best in class in managing our workforce.
The dashboard will provide:
Timely insight into how efficiently and effectively we are managing our labor
Never before visibility such as:
FT/PT Ratio
Actual vs Schedule
Unscheduled Overtime
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12. Time for Progress Analytics Dashboard
T4P - Lead with Labor Program

13. Security Access to the Kronos Dashboard
Info Security Access to Kronos is required to use the dashboard:
All VPs and DMs have access to their units and will have dashboard access
All GMs and Managers that have access to the frontline employees (AKA – they manage time and attendance in their unit) will have it.
For those of you that need access to the dashboard…
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14. Complete the Information Security Request Form
Review how unit controllers and finance professionals can request access
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15. Analytics Training and Resources
Ingenium Course Now Available
Keyword Search: Analytics
Course assigned to DMs, GMs and Unit Managers this month
Analytics Toolkit
Weekly Discussion Topics
Presentation Deck with Talking Points
Lead with Labor Quiz
Analytics Overview
Lead with Labor Video
FAQs
Analytics Job Aid (aka How-to Guide)
T4P - Lead with Labor Program

16. Your Role
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17. The Critical Role You Play
Log into Ingenium and complete the Analytics training
Monitor Time for Progress Analytics dashboard and help your unit take corrective action
Utilize the Lead with Labor Program by incorporating it into:
1:1 Discussions
Team Meetings
Business Reviews
Action Plans
Reach out to your Market Labor Lead if:
Your accounts need immediate attention
You have any questions or concerns
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18. Market Labor Resources
Market Labor Leads
Rob O’Connell – Overall Business Operations Support
Bob Schondelmeier – Corporate Services, Hospitals and Seniors
Tom Wilson – Universities, Schools, Government and Leisure
Market Labor Team
Jessica Townley – Schools
Parker Williamson – Hospitals and Universities
Megan Corcoran – Corporate Services
Kristen Andolina – Leisure, New Account Openings and Scheduling Support
SVP/RVP Labor Partners
Hospitals – Paul Fite, Dina Ciaffone, Janet Hall
Universities – Cal Thetford, Dave Hanson
Schools – Chuck Thomas
Seniors – Mike Hollen
Corp Serv. – Dave Kimball
Govt. Serv. – David Bennett
Leisure – Open
Canada – Lisa Ranger

19. Questions?
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20. Monthly Inventory Initiative
February 2017

21. Marc Kronthaler Sr Project Manager, SAP Initiatives
Presenters
Marc Kronthaler Sr Project Manager, SAP Initiatives
Umberto D’Alessandro Director, OPTI

22. The Inventory Rationalization Initiative
The Opportunity
Cost centers spend approximately 1.8 to 3.7 hours per week counting and reporting inventory.
Over 90% of SDX cost centers do this every week.
The Inventory Rationalization team and OPTI have designed new approaches whereby cost centers reduce the frequency of inventory counting and align the process with their billing schedules.
What we have learned
Pilot cost centers have tried these new approaches with great success and satisfaction.
Why are we presenting this to you now?
We are looking for subject matter experts to partner with and advise us as we roll out this solution to NorAm in March 2017.
The “What” and the “Why”

23. How exactly does this work?
The solution helps cost centers to align inventory processes with their billing schedules, which for many is monthly.
Specifically, inventory is reported during the last four days of the month.
For periods 6 & 12, inventory must be taken on the last day of the month.
What replaces the weekly inventory process?
Review stock rooms frequently during the week and visually inspect what is on- hand. Estimate without counting every box.
Review purchase data if any investigation is needed.
Pilot cost centers tell us that this results in less net time spent reviewing inventory.
Managers have told us that inventories are consistent and predictable and that it is possible to look them over and know where things stand, that writing down metrics is not always needed.

24. What drove the need?
Cost Centers are asking for improvements to their day-to- day work lives.
They are asking for help to reduce administrative responsibilities through process improvements in order to make life easier and reduce non-value added work.
Sodexo North America is moving from a to a Monthly Calendar close in FY2018.
One way to improve efficiencies with inventory is to align the process with the upcoming changes of the Monthly Close project.

25. What will we see as a result of this change?
Other reported benefits:
More frequent walk-throughs have resulted in improved utilization of food on hand.
Theft has not be negatively impacted; missing items can be more frequently caught.
Managers and Chefs invest more time in other activities like
Food Purchasing
Team engagement
Financial reviews
If weekly inventory results in overtime or other labor expenses, counting and reporting inventory once per month could result in potential labor savings.

26. Why is Senior Leadership supportive of this effort?
In FY16 after the end of Q3, we conducted an analysis of the inventories that were reported for periods 7, 8 and 9.
This is what we found:
If all cost centers reported their inventories only once per month, this is what we would have found:
Total Cost Centers
Total Inventories
Est. Labor Expenses
3,809
45,382
$2.46 M
Total Cost Centers
Total Inventories
Est. Labor Expenses
3,809
11,427
$630 K

27. If you volunteer to help us…
We will share the learnings and best practices we currently have, and you will…
Train your team…
Start the process in February (one month before the official rollout)…
Provide your input on what works and what does not…
Commit to joining occasional calls with us to compare results and help us make adjustments to our implementation plan.
We will probably you at various times asking for thoughts and insights to specific questions and issues that come up.
You have to agree to reply to us as soon as you can.

28. We will do the work, but you will agree to…
Provide input into our communications (eBulletins, web pages, broadcast s, podcasts).
Provide testimonials in the future which we can use for future communications.

29. Monthly Inventory At-a-Glance
Why Monthly Inventory?
New Standard for Tracking of Inventory
Benefits
To help provide Quality of Life for operators by lessening the frequency of inventory counting in order to reduce non-value added work
To align inventory process with monthly financial close (Sodexo US is moving from a calendar to a monthly calendar close in FY18)
Conduct inventory once per period (during the last four days of the period) instead of weekly
PD 6 & 12 must be taken on the last day of the period in FY 17and the last of the month starting FY18
Visually survey stock rooms regularly during the period and estimate what you have on hand instead of counting each item weekly
Time savings
Reduction in overtime
More time with clients & customers
Key Notes…
Pilot Group Testimonials
March 2017
The WOR and FAR will pre-populate the prior week’s numbers (no need to re-enter inventory each week)
AF Manual Topics will be updated to reflect the monthly inventory standard
“We saw no negative change in food costs, we provided a more accurate period close inventory and we eliminated unit clerk overtime.” - General Manager
“Managing inventory monthly in place of weekly still allows us to have a control and focus on our purchasing and usage, yet give us more flexibility to focus on our customers.” - Retail Manager
Begin Monthly Inventory!
Questions?
Training and Resources
Operations Process Transformation Initiative (OPTI) at
Inventory course in Ingenium (coming soon)
Inventory Sodexo Net page:
FAQs
Inventory Tips
Live Q&A Schedule (join us!)
Inventory Overview video

30. Updates to AR Dashboard (Demo)
May 2015

31. eVAR Electronic Vendor Action Request
May 2015

32. eVAR Workflow and Outcomes eVAR At-A-Glance Document Timeline
Introduction
Changes to VAR Process
eVAR Workflow and Outcomes
eVAR At-A-Glance Document
Timeline
Your Participation for the New Process
Agenda

33. Process is led by CPS Call Center and Setup is completed by AP
What is the VAR process
VAR = Vendor Action Request form is utilized to setup new suppliers in the AP system
Additional documents are required for setup RAMs provide the approval today
Process is led by CPS Call Center and Setup is completed by AP
As most of you know already, the Vendor Action Request form or VAR is a paper form submitted to establish a new vendor number in the AP system
Additional documents such as the Vendor W-9 or W-8 for CA, Indemnity Agreement, Certificate of Insurance, Supplier Diversity Business Profile are also required. Additionally the vendor should be registering via the Supplier Diversity Portal.

34. Process is led by CPS Call Center and Setup is completed by AP
What is the VAR process
VAR = Vendor Action Request form is utilized to setup new vendors in the AP system
Additional documents are required for setup RAMs provide the approval today
Process is led by CPS Call Center and Setup is completed by AP
Why are we changing the process:
Paper VAR process is inefficient and time-consuming
Current VAR process opens door for missing information
The new eVAR process will allow stronger governance over vendor setup
Our goal is to speed the process for new vendor numbers while providing opportunities to use contracted vendors already in the SDX system and ensure that new vendors meet our SDX standards

35. eVAR Workflow
Cost Center verifies if a contracted supplier is available
Contracted Supplier is available via My Supplier Locator or Actionable Datasets & Tools
Use Contracted Vendor & Pay any invoices if applicable
No Contracted Vendor is available
Cost Center completes eVAR submission & uploads documents
Cost Center receives & reviews required Vendor documents
Governance Review is completed within 3 business days
Accounts Payable issues Vendor Number & s to cost center
This is a graph showing a high level review of the eVAR Process:
The initial step is to verify that there is not a contracted supplier for the goods or products being purchased. The cost center should use the My Supplier Locator tool and refer to the Actionable Datasets & Tools by Segment
Next, the Supplier should complete and return the required documents to the cost center. For example: W9 or W8, Indemnity Agreement, Certificate of Insurance, a document with the Vendor’s remit to address, Supplier Diversity Business Profile & verification of Supplier Diversity registration. There are additional documents for food vendors
The cost center will then complete the new eVAR webform and upload all required documents via the webform
The governance team will review the request and approve or reject the request within 3 business days
If approved, the Accounts Payable department will issue the Vendor Number and it to the cost center using the provided on the webform
If denied or rejected, the Call Center will notify the cost center and provide the contracted supplier if available

36. eVAR Webform – Review Process
eVAR Review by RAM/RPM, Supply Managers, Product Quality Assurance & Risk Management
Request Approved
Request Denied
Accounts Payable issues Vendor Number
Vendor Number ed to requestor
RAM/RPMs will provide contracted vendor or work with the requestor to find a suitable alternative
Requestor to be notified (and DM if Site Operator made request)
There are two possible outcomes based on the review…….
Request approved and Vendor Number will be issued & ed to the cost center
Request denied and a contracted supplier or alternate source for the products & services will be provided. Supply Management or the RAM can work with the cost center to find the appropriate supplier

37. eVAR (Vendor Action Request) At-A-Glance

38. eVAR Timeline December January February March April
Begin to socialize with Stakeholder Groups:
SO, Finance, and Segments
Begin Pilot Phase:
Education and Implementation for selected cost centers
Pilot Phase Completion
and
Process Adjustments
North America Communication and
Education Process
Process Release North America Wide
During the month of February we will be completing the pilot phase of the project. March will involve communicating and training North America on the new process. Then we plan to release the eVAR tool the second week of April.

39. eVAR Webform – Volunteers Needed
Volunteer to join the Pilot Program in progress
What will be expected
Join 30 minute training sessions
Use updated Vendor eVAR Packets
Submit VAR requests via the eVAR portal
Provide feedback & suggestions
How do you volunteer
Carol Smith –
If you would like to participate in the pilot program, we are looking for additional volunteers.
I will host 3 additional 30 min training sessions. Those participants that join the sessions will be sent the link to the eVAR, updated vendor documents and the eVAR resource guide
I ask that any new vendors only be submitted via the eVAR process
Then provide any feedback or suggestions on your experience with the tool

40. Your Questions & Comments

41. Resources Questions? Unit Controller Network Call Materials
UFS Launch site
Kronos Analytics
Inventory
Call BSC at – Record Retention
Dashboards in E=nterprise Analysis
Management Reporting and Analysis (MR&A)
eVAR
Accounts Payable Support Center on SodexoNet
Thank you for your participation, your time, and for your support of this very important call series.
Resources for the topics covered on today’s call are listed here.
Copy of today’s deck can be obtained by visiting the Controller Corner on the UFS launch site
The Agenda for our next month’s call is being finalized. Invitations will go out by the first of next month with planned agenda information.
If you are aware of a particular topic that would be helpful to the Controller Network, please reach out to me, or send an to the UFS Administrator mailbox so we can collect and build this call series with your ideas. 41