Foodservice Distribution Market
The foodservice distribution market
represents the total purchases of food and
related foodservice supplies and products
by customers, including restaurants,
hospitals, retirement homes, schools,
colleges, hotels, motels, cruise lines, and
other foodservice operations - wherever
a meal is prepared away from home.
C.A.R.E.S. Initiative
A program introduced in 1999 to
formalize SYSCO's objectives and
strategies for achieving complete
customer satisfaction. It promotes
practices that support superb customer
service by all employees and covers
every aspect of the business, including
specific job responsibilities that influence
service levels, customer recognition and
employee awareness and recognition.
Real Sales Growth
Real sales growth is calculated by taking
the growth of total sales and eliminating
the effect of acquisitions and SYSCO's
food cost inflation or deflation index.
SYSCO's Inflation/Deflation Index
SYSCO's inflation/deflation index is an
internal measurement of the year-over-year
annualized increase or decrease in
the cost SYSCO pays for 12 categories
of products.
"Fold-Out" Strategy
This strategy involves building
distribution centers in established
markets that were previously being
served from a distance. Domiciled sales,
delivery and support personnel, as well
as new staff and a management team, are
then hired or transferred from the parent
company creating the "fold-out."
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Marketing Associate
Marketing Associate is SYSCO's name for
its 6,600 sales professionals who call on
customers, assisting them not only
by taking their orders, but also with
inventory control, developing and
costing their menus and other value-added
services.
Marketing Associate-Served
Customers
Marketing associate-served customers
are typically entrepreneurially operated,
single-unit foodservice operations
that are called upon daily by one of
SYSCO's marketing associates.
SYSCO Quality Assurance
Department
The Quality Assurance Department
includes 180 foodservice professionals
who are responsible for developing the
specifications for SYSCO Brand
products, for inspecting the plants of the
manufacturers and processors that will
produce the products, and for enforcing
SYSCO's rigorous standards.
SYSCO Brand
Approximately 38,000 products,
including items from every product
category, are produced under the SYSCO
Brand name. It is truly a brand, not a
private label, because the specifications
are developed and enforced by SYSCO.
Specialty Brands
SYSCO's Specialty Brands include eth-nic
product groupings, such as Italian,
Mexican and Asian foods, other specialty
products marketed to the delicatessen
segment, and a line of table-top sauces
and condiments.
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SYSCO Uniform System (SUS)
SUS is a major update of management
information computer systems company-wide.
It includes procurement, pricing,
warehousing, order processing, logistics,
delivery, executive information and
billing and finance applications,
providing compatibility between all
systems throughout the company. SUS is
Year 2000-compliant and is believed to
be the most advanced in the industry.
SYSCO Warehouse Management
System (SWMS)
SWMS was the first application of the
SUS system. It includes two components -
an inventory management system and
a labor management system. The
inventory management portion is a
locator system and a fully directed
warehouse management system that
tracks inventory through every aspect of
its life in a SYSCO warehouse.
The labor management feature
enables SYSCO operating companies to
record, measure and report the
productivity of warehouse personnel,
managing an employee's productive time
as various tasks are performed
throughout the day. Its objectives
include increasing safety in the
warehouse, improving accuracy and
efficiency and increasing productivity.
SYSCO Order Selector (SOS)
SOS is a finger-mounted product
scanner that allows a warehouse product
selector to verify - with the touch of a
finger to bar-coding on a package -
that the correct product is being pulled
for an order. It tested very successfully
in 1999, reducing order-selection
errors significantly.
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