DELIVERING PRODUCTS ON TIME

Customers rank on-time delivery within promised "time windows" as one of the most critical service issues. SYSCO's fleet of more than 6,200 transportation vehicles delivers approximately 14.5 million cases of product weekly, on average, relying upon sophisticated computer routing systems and information from on-board computers to devise the most efficient route plans and arrange product deliveries within the customer's specified "time window." SYSCO now has the means to track deliveries and focus attention on missed delivery windows - whether too early or too late. This "report card" is typical of the C.A.R.E.S. effort to address key service issues that influence complete customer satisfaction.

When tornadoes ripped through Oklahoma in May, SYGMA lost its distribution facility in Stroud and a portion of its delivery fleet. Fortunately, no employees at the facility were injured. Some, however, lost their homes and SYSCO financially assisted them in establishing alternative housing. Service to customers continued as additional SYGMA and SYSCO employees rallied to deliver supplies on time. Since the time to rebuild the facility would unfavorably affect customers, SYGMA/Stroud's operations will be moved to a leased warehouse in nearby Pryor, which is scheduled to be operational by November 1, 1999.

Exceptional commitment to service is important in a customer-driven culture and although tracking performance data is critical to identifying progress, customers also value aspects of their relationships with SYSCO that are difficult to quantify. The company's delivery associates interface most often with customers and serve as "the eyes of SYSCO," performing a coordinating role between the customer, the sales staff and the warehouse. They check to be sure products are undamaged at the point of delivery, communicate customer concerns and convey the courteous, helpful and professional attitude that signifies Customers Are Really Everything to SYSCO.

CARING ABOUT ITS EMPLOYEES

Conchy Joe's Seafood has been popular with seafood lovers for generations. Chef de Cuisine Dean Phillips and Len Hartman of SYSCO taste-test fish and fries. Driver Dennis Vanasdale is in background.

SYSCO's efforts to build customer loyalty are in the hands of 35,100 employees across North America. The heart of the C.A.R.E.S. initiative emphasizes that the valued contributions of employees to providing outstanding customer service makes SYSCO's success possible.

One example of how the company manifests its loyalty to employees is SYSCO's emphasis on work-place safety. SYSCO continues to enhance its ongoing SYSCOSafe program, a process designed to create a safe work environment through extensive education, information, accountability and recognition. Higher safety levels foster and protect the well-being of employees, boost morale and create a sense of value and accomplishment while also improving productivity. When a company cares about its employees and makes their safety paramount, employee loyalty increases significantly.

SYSCO recently acquired two meat cutting operations, The Buckhead Beef Company, Inc. of Atlanta and Newport Meat Company of Irvine, California, and announced an agreement to acquire Ohio-based Malcolm Meats. Together they had about $327 million in annualized 1998 sales and will significantly enhance SYSCO's ability to offer fresh, custom-cut protein products.

SYSCO formally recognizes individual employees who have exemplified the C.A.R.E.S. concept and publishes throughout the company the specific "above and beyond" services they have provided. Enhancing skill levels, encouraging communication and giving recognition to employees who have a customer satisfaction mindset are priorities. SYSCO operating companies carefully document best practices in earning employee loyalty. These may be as simple as having a supervisor at the dock to greet drivers as they return from their routes to discuss and resolve operational issues, or as complicated as providing the right technological tools to support outstanding job performance, such as computer applications that improve efficiency, productivity and customer satisfaction. Whatever it takes, valuing and recognizing employees who are committed to the culture and goals of the company makes it possible to say "Wherever They Are, Whatever Their Needs, Customers Are Really Everything to SYSCO."