1. Supply Chain Roundtable Findings David Richard Director of Marketing

2. Purpose of Supply Chain Round Table Gain a heightened understanding of the supply chain in order to optimize partnership among the stakeholders »Manufacturers »Distributors »School districts Goal: To operate more efficiently and remove cost from the system

3. Methodology – Define key issues (10) Collaboratively narrowed to three core focus areas 1.Uniformity - need accepted national nutrition standards for all food and beverage products served 2.Cost/ Value – need to improve efficiencies throughout the supply chain to maximize value 3.Commodities – need to have consistent national requirements for commodities & to have standard national commodities procurement requirements that preempt state & local requirements Top Three Issues

4. 1. Lack of Uniformity Causes most pain for all stakeholders Increased proliferation of state regulations & local wellness policies mandates different sets of nutrition requirements Variances from district to district adds cost »Causes manufacturers to customize products »Creates excess inventory

5. 2. Cost/Value - Traditional factors associated with distribution economics affect cost Volume –amount of groceries purchased Product Variety – the more products purchased, the higher the cost of delivery Operational dynamics – including size & frequency of deliveries Consistency of orders Timeliness of payment

6. 3. Commodities Each state has different regulations which can be complex & confusing Timing cycle for commodity programs is not consistent with commercial bidding cycles »USDA responsiveness could improve »Need transparency throughout the process

7. Rounding out the Top 10 issues facing our Industry Forecasting Technology Public expectations and demands Competition Branding Politics Storage Space/ Requirements

8. The Group Purchasing Solution Michael Brion Executive Vice President Summa Purchasing Group

9. Group Purchasing: An Innovative Solution which addresses Cost/ Value (2 nd ranked priority) Group Purchasing adds value for all three stakeholders Distributors Manufacturers School food service operations All three constituents must realize benefit for improvement to occur

10. Value for Distributors Standardization of products Strategic relationships »Reduced administrative costs »Improved back of the house operations »Better inventory turns »Improved forecasting of purchasing »Ability to heighten communication

11. Value for Manufacturers Increased demand for products (volume) Lowers sales & marketing costs Platform to launch new & innovative products Speed to market Increased market share

12. Value for Schools Lower supply costs Improved Supply Chain More participation in bidding process National influence in a traditionally regionalized industry Heightened communication among stakeholders There is power in numbers!

13. Summa Purchasing Group Exclusively focused – Built for savings… Designed for Education! Risk Free participation »No cost to participate – “The proof is in the price of the pudding” »No obligation to buy Ready for Spring Bids Learn more about Summa tomorrow