Food Industry Trends

Documents

richard-kochersperger
  • 1. Seek to stay out in frontand don’t look back!
    Richard Kochersperger
    Summer, 2011
    1
    “Don't look back. Something might be gaining on you.” Satchell Paige
  • 2. Tell Me and I Forget
    Teach Me and I Remember
    Involve me and I Learn
    Ben Franklin
    2
  • 3. Industry Gurus
    3
  • 4. Goals/Objectives
    View of the Food Industry: Retail/Foodservice
    What is the Competitive Landscape?
    Future Insights and Opportunities
    7 Steps to stay ahead of your competition
    4
  • 5. Food Waste: 40% Grow, Sell, Eat
    • 1 Billion people go to bed hungry every night!
  • 6. 16,000 kids die everyday due to starvation!
  • 7. 1/7 Americans are on food stamps5
  • 8. World’s Best Supply Chains
    6
  • 9. Shopping Trips
    7
  • 10. Key Trends
    8
  • 11. Changing Household
    9
  • 12. Ethnic Expansion
    10
  • 13. Government Regulations
    CSA 2010: Expect to lose 150,000 drivers=5%
    Hours of service to be reduced
    Electronic Recorders on all vehicles.
    Carrier Scorecard
    FoodSafety ModernizationACT 2010
    Most sweeping overhaul of the food safety system since 1938
    Several provisions are already in effect
    Increased inspection frequency,Expandedrecords access,Import certification authority, Mandatory recall authority ,Fees,Port shopping,Whistleblower protection
    11
  • 14. Food Industry Graveyard
    12
  • 15. Food Industry E R
    13
  • 16. Food Industry Winners
    14
  • 17. Foodservice Industry
    15
  • 18. Understand the Competitive Landscape: Leaks
    16
  • 19. Big Moves
    17
    100+ stores in Canada
    Walgreens
    Philly/Pittsburgh
  • 20. Wal-Mart 1st Quarter Results
    18
  • 21. Wal-Mart Emergency Response
    19
  • 22. Wal-Mart
    20
  • 23. Wal-Mart
    21
  • 24. Wal-Mart
    22
  • 25. Wal-Mart
    23
  • 26. Tesco
    24
    Lost $930 million
  • 27. Walgreens
  • 28. Walgreens
    26
  • 29. Gordon Food Service
    27
  • 30. Farmers Markets
    28
  • 31. On Line Food Sales
    29
  • 32. Amazon.com
    Sales: $34 Billion
    55%North America
    45%International
    Profits: $1.15 Billion
    Inventory Turnover 11/33 days
    Accounts Payable 72 days
    More e-books than hardcover and paperback
    30
  • 33. 31
  • 34. 32
  • 35. Amazon.com
    33
  • 36. Gilt Group
    34
  • 37. Gilt Taste
    American Wagyu Steak Duo
    American wagyu used to be considered a pale imitation of Japanese "Kobe" beef. But that's changing. By carefully breeding Angus and wagyu cattle, Mishima's beef keeps the incredible richness of wagyu, but adds the minerally flavor of a great American steak. This four steak set proves it.
    Additional information
    $199.00 • Two 6 oz Tenderloin, Two 14 oz Ribeye
    35
  • 38. 36
  • 39. Gourmet On the Go: Good Food Goes Trucking
    37
  • 40. The “Pop-Up Restaurant”
    38
  • 41. The “Pop Up Food Store”
    39
  • 42. Manufacturers Competition
    40
    Everyone wants a piece
    of your business!
  • 43. Thought
    “To Succeed, Stay Out in Front of Change!”
    Sam Walton
    41
  • 44. The Age of the Customer
    42
  • 45. E Commerce Retailers
    43
  • 46. Shopper Marketing
    44
    “ Shopper Marketing is the use of insights-driven marketing and merchandising
    initiatives to satisfy the needs of targeted shoppers, enhance the shopping experience ,and improve business results and brand equity for retailers and manufacturers.”
  • 47. Shopper Marketing
    45
  • 48. Social Media
    46
  • 49. 47
  • 50. Social Connections
    48
  • 51. Social Media
    49
  • 52. Social Marketing: Reality Check
    Source: 2011 NGA Consumer Survey Report
    50
  • 53. Reality Check
    Despite the flurry of activity, social media marketing remains experimentalin nature
    13% are on Twitter
    Social media marketing is going to blow the shingles off the roof once people really figure out how to use it
    Megan O’Connor, Levi Strauss
    51
  • 54. Next Generation of Shopping
    Try on clothes in 3D, share photos with friends, and store wish-listed items on smart phones
    52
  • 55. Ipad/Tablet Changes the World
    53
  • 56. QR Quick Response Barcode
    54
    A QR code (abbreviation for Quick Response code) is a specificmatrix barcode (or two-dimensional code) that isreadable by dedicated QR barcode readersandcamera phones.
  • 57. Nanotechnology
    55
    Contamination Sensors Pesticide Reduction
    Anti microbial Packaging Tracking, Tracing, Brand Protection
    Improved Food Storage Texture
    Enhanced Nutrient Delivery Flavor
    Green Packaging Bacteria Identification and Elimination
  • 58. RF-ID
    Alive and well!!
    Developments:
    Eliminate the check out process at the store
    Improve inventory management
    Reduce mistakes unloading products inbound/outbound
    Monitor temperatures throughout supply chain
    Minimize paperwork
    56
  • 59. Next Phase of E/M/F Commerce
    57
  • 60. % of Total Category Sales Online
    58
  • 61. E/M/F Commerce
    59
  • 62. M-Commerce
    60
  • 63. On Line Retailing Battleground
    61
  • 64. E Commerce: Segmented
    62
  • 65. Price Comparisons
    63
  • 66. F-Commerce
    64
  • 67. Alice.com
    65
  • 68. Pet Products
    66
  • 69. Groupon
    67
  • 70. Evolving Marketplace
    68
  • 71. FutureFCPG Industry
    Supply Chain
    Information
    ??????
    Retailers
    Command Center
    The Consumer
    Strategic Hub
    Information
    Information
    Distributors
    Suppliers
    Third Party
    Manufacturing
    Alliances,
    Network
    Partners
    Regional, global plants
    Bulk, Semi-finished,
    Filling Finishing,
    Information
    Information
    69
  • 72. 70
    When there
    Is no vision,
    the people perish!
  • 73. Issues and Opportunities
    71
  • 74. VP Logistics: Responsibilities
    72
  • 75. Decision Makers????
    73
  • 76. 7 Steps to Stay Out in Front!
    Control Inbound Traffic
    Embrace Technology
    Benchmark
    Education
    Collaboration
    Eliminate DSD
    Embrace Social Media
    74
  • 77. 1. Control Inbound Traffic
    Backhaul KPI: 28% of loads; .25 profit
    Need professional traffic department
    CC license; Intrastate authority
    Purchase all products: FOB mfg dock
    Set up inbound movements
    Drop trailers with mfg
    Establish consolidation centers
    Partner with other food distributors
    Reading today’s freight bills is a challenge
    Need for auditing/transportationbilling is complex trying to determine total landed cost
    Net result: Significant increase in profits
    75
  • 78. 76
  • 79. 2. Supply Chain Technologies
    1. Mobile Computing Devices
    Smart Phones/Tablets
    2. Analytics Software
    Prescriptive: What’s going on in the supply chain now!
    Predictive: What’s going to happen in the future?
    Oil Prices; Food Commodity Prices;
    3. Game Changers
    77
  • 80. Technology Revolution
    78
  • 81. Post PC Era
    79
  • 82. DC Applications
    Seegrid'sSafetyPick
    Kollmorgen’s Pick-n-Go solution
    80
  • 83. Witron-Sobey’s, Supervalu, Kroger
    81
  • 84. Kiva Systems: Slow Movers
    82
  • 85. 3. Benchmark
    Most public studies are a waste of time
    Participants lie; definitions are different;
    Industries applications vary
    KOM International
    Rofda
    IFDA
    Trade with one another.Visit other DC’s.
    83
    What gets measured , gets managed
    Peter Drucker
  • 86. Dashboard/Scorecard
    Space Utilization
    Equipment Utilization
    Inventory Analysis
    Slotting Audits
    Hours Accountability
    Key Performance Indicators
    Weight per Case
    Cube per Case
    Value per Case
    Item Count
    84
  • 87. Inventory Analysis
    85
    60% of your inventory moves less than 1 pallet a week
    Most Important Position: Inventory Control
  • 88. Product Mix: Velocity
    86
    Most Important Position: Inventory Control
  • 89. Audit/Scorecard System
    Internally, formalized performance system
    Many vendors/distributors have established scorecards
    Sustainability
    Wal-Mart Sustainability
    P&G Sustainability
    Business Collaboration
    Net Result:
    Different costs = Different Prices
    87
  • 90. 4. Require Education
    Lifelong Learning
    Online tools: Skype, Blackboard, Sakai, Webex
    Webinars
    Associations: Logistics Institute, CSCMP, APICS, ISM, Accenture Supply Chain Academy, IGA Coca Cola Institute,
    “If you think education is expensive, try ignorance”
    88
  • 91. Certification
    Certification
    • APICS
  • 92. CSCMP
  • 93. ISM
  • 94. The Logistics Institute
  • 95. WERC
  • 96. Accenture Supply Chain Academy89
  • 97. 5. Collaboration
    Pooling of resources between manufacturers; between distributors; between retailers for the purposes of reducing costs
    Consolidation goods for transport
    Sharing of transport vehicles, DC’s,
    Sharing back office processes such as:
    Finance, customer service, equipment maintenance
    Return center
    90
    “If you want to be incrementally better: Be competitive. If you want to be exponentially better: Be Cooperative.”                                                                                   - Unknown
  • 98. What Shippers share during horizontal collaboration
    91
  • 99. Barriers Stopping Further Investment
    92
  • 100. 6. Eliminate DSD
    30% of retail food stores sales are DSD
    50-75 deliveries per day every store
    Cost to handle: 15-30%of cost of goods
    Increased energy prices makes it very expensive
    Establish a cross-dock operation to handle all DSD products onto your transportation fleet
    Tesco: 90% flow through DC’s
    93
  • 101. 7. Embrace Social Media
    Use Social Media to your advantage
    Youtube: show video of your key operations
    Order selection/Loading customer orders
    Checking product temperatures on inbound deliveries
    Cleaning the docks/aisles
    Warehouse/Transportation roadeo
    Assign a supervisor to blog about the operations
    Conduct a contest in the DC with team
    Provide resources to listen: customers, associates
    94
  • 102. Closing Thought
    Excellence is not a skill. 
    It is an attitude. 
    ~Ralph Marston
    95
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    Description
    Impact of food industry trends upon logistics
    Text
    • 1. Seek to stay out in frontand don’t look back!
      Richard Kochersperger
      Summer, 2011
      1
      “Don't look back. Something might be gaining on you.” Satchell Paige
  • 2. Tell Me and I Forget
    Teach Me and I Remember
    Involve me and I Learn
    Ben Franklin
    2
  • 3. Industry Gurus
    3
  • 4. Goals/Objectives
    View of the Food Industry: Retail/Foodservice
    What is the Competitive Landscape?
    Future Insights and Opportunities
    7 Steps to stay ahead of your competition
    4
  • 5. Food Waste: 40% Grow, Sell, Eat
    • 1 Billion people go to bed hungry every night!
  • 6. 16,000 kids die everyday due to starvation!
  • 7. 1/7 Americans are on food stamps5
  • 8. World’s Best Supply Chains
    6
  • 9. Shopping Trips
    7
  • 10. Key Trends
    8
  • 11. Changing Household
    9
  • 12. Ethnic Expansion
    10
  • 13. Government Regulations
    CSA 2010: Expect to lose 150,000 drivers=5%
    Hours of service to be reduced
    Electronic Recorders on all vehicles.
    Carrier Scorecard
    FoodSafety ModernizationACT 2010
    Most sweeping overhaul of the food safety system since 1938
    Several provisions are already in effect
    Increased inspection frequency,Expandedrecords access,Import certification authority, Mandatory recall authority ,Fees,Port shopping,Whistleblower protection
    11
  • 14. Food Industry Graveyard
    12
  • 15. Food Industry E R
    13
  • 16. Food Industry Winners
    14
  • 17. Foodservice Industry
    15
  • 18. Understand the Competitive Landscape: Leaks
    16
  • 19. Big Moves
    17
    100+ stores in Canada
    Walgreens
    Philly/Pittsburgh
  • 20. Wal-Mart 1st Quarter Results
    18
  • 21. Wal-Mart Emergency Response
    19
  • 22. Wal-Mart
    20
  • 23. Wal-Mart
    21
  • 24. Wal-Mart
    22
  • 25. Wal-Mart
    23
  • 26. Tesco
    24
    Lost $930 million
  • 27. Walgreens
  • 28. Walgreens
    26
  • 29. Gordon Food Service
    27
  • 30. Farmers Markets
    28
  • 31. On Line Food Sales
    29
  • 32. Amazon.com
    Sales: $34 Billion
    55%North America
    45%International
    Profits: $1.15 Billion
    Inventory Turnover 11/33 days
    Accounts Payable 72 days
    More e-books than hardcover and paperback
    30
  • 33. 31
  • 34. 32
  • 35. Amazon.com
    33
  • 36. Gilt Group
    34
  • 37. Gilt Taste
    American Wagyu Steak Duo
    American wagyu used to be considered a pale imitation of Japanese "Kobe" beef. But that's changing. By carefully breeding Angus and wagyu cattle, Mishima's beef keeps the incredible richness of wagyu, but adds the minerally flavor of a great American steak. This four steak set proves it.
    Additional information
    $199.00 • Two 6 oz Tenderloin, Two 14 oz Ribeye
    35
  • 38. 36
  • 39. Gourmet On the Go: Good Food Goes Trucking
    37
  • 40. The “Pop-Up Restaurant”
    38
  • 41. The “Pop Up Food Store”
    39
  • 42. Manufacturers Competition
    40
    Everyone wants a piece
    of your business!
  • 43. Thought
    “To Succeed, Stay Out in Front of Change!”
    Sam Walton
    41
  • 44. The Age of the Customer
    42
  • 45. E Commerce Retailers
    43
  • 46. Shopper Marketing
    44
    “ Shopper Marketing is the use of insights-driven marketing and merchandising
    initiatives to satisfy the needs of targeted shoppers, enhance the shopping experience ,and improve business results and brand equity for retailers and manufacturers.”
  • 47. Shopper Marketing
    45
  • 48. Social Media
    46
  • 49. 47
  • 50. Social Connections
    48
  • 51. Social Media
    49
  • 52. Social Marketing: Reality Check
    Source: 2011 NGA Consumer Survey Report
    50
  • 53. Reality Check
    Despite the flurry of activity, social media marketing remains experimentalin nature
    13% are on Twitter
    Social media marketing is going to blow the shingles off the roof once people really figure out how to use it
    Megan O’Connor, Levi Strauss
    51
  • 54. Next Generation of Shopping
    Try on clothes in 3D, share photos with friends, and store wish-listed items on smart phones
    52
  • 55. Ipad/Tablet Changes the World
    53
  • 56. QR Quick Response Barcode
    54
    A QR code (abbreviation for Quick Response code) is a specificmatrix barcode (or two-dimensional code) that isreadable by dedicated QR barcode readersandcamera phones.
  • 57. Nanotechnology
    55
    Contamination Sensors Pesticide Reduction
    Anti microbial Packaging Tracking, Tracing, Brand Protection
    Improved Food Storage Texture
    Enhanced Nutrient Delivery Flavor
    Green Packaging Bacteria Identification and Elimination
  • 58. RF-ID
    Alive and well!!
    Developments:
    Eliminate the check out process at the store
    Improve inventory management
    Reduce mistakes unloading products inbound/outbound
    Monitor temperatures throughout supply chain
    Minimize paperwork
    56
  • 59. Next Phase of E/M/F Commerce
    57
  • 60. % of Total Category Sales Online
    58
  • 61. E/M/F Commerce
    59
  • 62. M-Commerce
    60
  • 63. On Line Retailing Battleground
    61
  • 64. E Commerce: Segmented
    62
  • 65. Price Comparisons
    63
  • 66. F-Commerce
    64
  • 67. Alice.com
    65
  • 68. Pet Products
    66
  • 69. Groupon
    67
  • 70. Evolving Marketplace
    68
  • 71. FutureFCPG Industry
    Supply Chain
    Information
    ??????
    Retailers
    Command Center
    The Consumer
    Strategic Hub
    Information
    Information
    Distributors
    Suppliers
    Third Party
    Manufacturing
    Alliances,
    Network
    Partners
    Regional, global plants
    Bulk, Semi-finished,
    Filling Finishing,
    Information
    Information
    69
  • 72. 70
    When there
    Is no vision,
    the people perish!
  • 73. Issues and Opportunities
    71
  • 74. VP Logistics: Responsibilities
    72
  • 75. Decision Makers????
    73
  • 76. 7 Steps to Stay Out in Front!
    Control Inbound Traffic
    Embrace Technology
    Benchmark
    Education
    Collaboration
    Eliminate DSD
    Embrace Social Media
    74
  • 77. 1. Control Inbound Traffic
    Backhaul KPI: 28% of loads; .25 profit
    Need professional traffic department
    CC license; Intrastate authority
    Purchase all products: FOB mfg dock
    Set up inbound movements
    Drop trailers with mfg
    Establish consolidation centers
    Partner with other food distributors
    Reading today’s freight bills is a challenge
    Need for auditing/transportationbilling is complex trying to determine total landed cost
    Net result: Significant increase in profits
    75
  • 78. 76
  • 79. 2. Supply Chain Technologies
    1. Mobile Computing Devices
    Smart Phones/Tablets
    2. Analytics Software
    Prescriptive: What’s going on in the supply chain now!
    Predictive: What’s going to happen in the future?
    Oil Prices; Food Commodity Prices;
    3. Game Changers
    77
  • 80. Technology Revolution
    78
  • 81. Post PC Era
    79
  • 82. DC Applications
    Seegrid'sSafetyPick
    Kollmorgen’s Pick-n-Go solution
    80
  • 83. Witron-Sobey’s, Supervalu, Kroger
    81
  • 84. Kiva Systems: Slow Movers
    82
  • 85. 3. Benchmark
    Most public studies are a waste of time
    Participants lie; definitions are different;
    Industries applications vary
    KOM International
    Rofda
    IFDA
    Trade with one another.Visit other DC’s.
    83
    What gets measured , gets managed
    Peter Drucker
  • 86. Dashboard/Scorecard
    Space Utilization
    Equipment Utilization
    Inventory Analysis
    Slotting Audits
    Hours Accountability
    Key Performance Indicators
    Weight per Case
    Cube per Case
    Value per Case
    Item Count
    84
  • 87. Inventory Analysis
    85
    60% of your inventory moves less than 1 pallet a week
    Most Important Position: Inventory Control
  • 88. Product Mix: Velocity
    86
    Most Important Position: Inventory Control
  • 89. Audit/Scorecard System
    Internally, formalized performance system
    Many vendors/distributors have established scorecards
    Sustainability
    Wal-Mart Sustainability
    P&G Sustainability
    Business Collaboration
    Net Result:
    Different costs = Different Prices
    87
  • 90. 4. Require Education
    Lifelong Learning
    Online tools: Skype, Blackboard, Sakai, Webex
    Webinars
    Associations: Logistics Institute, CSCMP, APICS, ISM, Accenture Supply Chain Academy, IGA Coca Cola Institute,
    “If you think education is expensive, try ignorance”
    88
  • 91. Certification
    Certification
    • APICS
  • 92. CSCMP
  • 93. ISM
  • 94. The Logistics Institute
  • 95. WERC
  • 96. Accenture Supply Chain Academy89
  • 97. 5. Collaboration
    Pooling of resources between manufacturers; between distributors; between retailers for the purposes of reducing costs
    Consolidation goods for transport
    Sharing of transport vehicles, DC’s,
    Sharing back office processes such as:
    Finance, customer service, equipment maintenance
    Return center
    90
    “If you want to be incrementally better: Be competitive. If you want to be exponentially better: Be Cooperative.”                                                                                   - Unknown
  • 98. What Shippers share during horizontal collaboration
    91
  • 99. Barriers Stopping Further Investment
    92
  • 100. 6. Eliminate DSD
    30% of retail food stores sales are DSD
    50-75 deliveries per day every store
    Cost to handle: 15-30%of cost of goods
    Increased energy prices makes it very expensive
    Establish a cross-dock operation to handle all DSD products onto your transportation fleet
    Tesco: 90% flow through DC’s
    93
  • 101. 7. Embrace Social Media
    Use Social Media to your advantage
    Youtube: show video of your key operations
    Order selection/Loading customer orders
    Checking product temperatures on inbound deliveries
    Cleaning the docks/aisles
    Warehouse/Transportation roadeo
    Assign a supervisor to blog about the operations
    Conduct a contest in the DC with team
    Provide resources to listen: customers, associates
    94
  • 102. Closing Thought
    Excellence is not a skill. 
    It is an attitude. 
    ~Ralph Marston
    95
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