Supply Chain Modeling: Logistics Dr. J. Vande Vate

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Supply Chain Modeling LogisticsDr. 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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SYSCOs 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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SYSCO
Customers
Warehousing
Transportation
Transportation
Information Flow
Factory
Transportation
Transportation
Vendor/plants/ports
Warehousing
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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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SYSCOs 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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