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Supply Chain Modeling: Logistics Dr. J. Vande Vate Teofilo N. Hafeitz Nicholas Lucic George Williams
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SYSCO Food Services Inc. SYSCO is the largest marketer and distributor of foodservice products in North America. Operating from 101 distribution facilities, the company provides products and services to about 356,000 restaurants and other foodservice operations across the contiguous United States, Alaska, The District of Columbia, Hawaii and portions of Canada.
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SYSCO’s History 1946 Zero Foods is created 1969 John F. Baugh forms SYSCO Corporation First year of sales reached $115 million
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Company Goals Provide customers with quality products Deliver in a timely manner Remain #1 in the Food Services Market
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SYSCO Food Services Inc. Employs approximately 40,000 workers Has 101 Distribution centers 270,000 unique products 356,000 customers nationwide Company Headquarters in Houston, TX
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101 Distribution Centers Broadline Facilities - 63 Specialty Produce - 22 SYGMA Facilities - 13 Custom-Cutting Meat Operations - 3
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Products and Services Foodstuffs Produce Meats Poultry Seafood Dairy Dry goods Frozen foods Beverages Food Service Supplies Table top products Equipment Non-foods
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SYSCO Brands
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Suppliers 1500 suppliers nationwide Custom made products (SYSCO Brands) Close relationship with suppliers
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Customers Restaurants Hospitals Nursing Homes Schools Colleges Hotels
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Market Competition SYSCO #1 in Market 3 times as bigger 9% of the Market Closest competitors US Foodservices Alliant PYA Monarch
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Market Competition
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Information Flow Warehousing Transportation Factory Vendor/plants/ports Customers
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SYSCO orders from Suppliers Inventory Forecasting Seasonal Items Individual EOQ calculations Barcode System (SOS)
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Transportation Two possibilities: –Supplier ships the products –SYSCO transports the products
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Transportation to Customers Assignment of routes with RoadNet Proper loading of trucks Shuttle System
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Delivery Promise 24-hour lead time guarantee 99.6% 3-hour service window
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Atlanta Warehouse 5th largest in the SYSCO network 13,000 unique items (850 suppliers) $19 million inventory Inventory Turnover - 17 to 18 days Plant Tour
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SYSCO Food Services of Altanta Inc.
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SYSCO’s Future Implementation of SUS in all locations “Fold-Out” strategy Present and Future warehousing designs Maintain their goal to stay at #1!!!
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L-Shape Warehouse Design
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