A Taste of What’s Cooking at US Foods

Inter-branch Cost7/27/16

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About Me

• Walter Rivera• Senior, University of Tennessee, • Supply Chain and Marketing• December 9th Graduation

• Going to be a Dad in September

• What I’ve learned from this internship is building relationships with employees and customers is essential to continue growing as a company and as a person.

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Objectives

• To gain knowledge of US Foods operations.

• To understand major functions of operations and

transportation.

• To obtain real world experience for career development.

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Areas of Focus

• Day warehouse operations

• Night warehouse operations

• Transportation Management

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Challenges Faced

• Project:

–Getting accurate count of pallets for project.

–Finding information from different sources.

–Working around employees schedules during their vacations.

• General:

• Counting products during cycle counts.

• Steering the pallet jack.

• Changing work schedules and working different times every week.

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Inter-branch Cost

• Divisions

– Atlanta: 6/3/16 – 7/8/16

– Memphis: 6/3/16 – 7/12/16

– Ft. Mill: 6/1/16 – 7/13/16

– Montgomery: 6/3/16 – 7/8/16

– Cincinnati: 6/6/16 – 7/11/16

– Charlotte: 6/1/16 – 7/13/16

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Selection and Loading Expense (Outbound) 6 Week Total

Atlanta

Ft. M

ill

Memphis

Charlotte

Montgomery

Cincinnati

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00 $802.58

$553.62 $552.92

$306.31

$168.31 $157.26

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Transportation Expense Per Trip

Total Expense Fuel Pay $-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$42.71

$16.71 $26.00

$30.69

$11.69 $19.00

$150.15

$59.90

$90.25

$99.04

$39.57

$59.47

$19.83

$5.96 $13.87

Cincinnati Charlotte Atlanta Montgomery Memphis

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Ft. Mill Transportation

• Fort Mill hires a 3PL carrier (FFE transportation or Coyote Logistics)

• Due to this transportation expense is greater. ($300-$400/trip) two times a week ($600-$800/week)

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Lumping, Receiving and Put away Expense (Inbound)

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00

$1,000.00

$98.80

$295.97 $357.77

$129.99

$241.40

$357.77

$158.00

$478.00

$299.04

$210.00

$390.00

$578.00

$256.80

$773.97

$656.81

$339.99

$631.40

$935.77

Lumping, Receiving, Put away Expense (Inbound)Total Rec Total Lumping Total Inbound

Cincinnati Charlotte Atlanta Montgomery Ft. Mill Memphis

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Total Expense in Dollar Value

Grand Total Value: $14,009.19

$669.33 $1,325.73

$2,360.32

$1,102.51

$6,785.02

$1,766.27

Total Expense

Cincinatti Charlotte Atlanta Montgomery Ft. Mill Memphis

48%

17%

13%

5%

9%

8%

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EBITDA

• Due to the original division receiving the profit allowance from the vendor, when inter-branching products, Knoxville Division loses on the PA allowance. Product # Received PA$ per cs Total

4364683 84 $27.62 $2,320.081510080 76 $3.76 $285.767802523 60 $3.42 $205.203209301 127 $3.32 $421.64

133223 72 $2.62 $188.648562183 180 $2.14 $385.204289082 200 $2.06 $412.00

522839 68 $1.43 $97.243778610 70 $1.41 $98.707275498 87 $1.29 $112.233778586 165 $1.17 $193.057281025 170 $1.13 $192.104286357 90 $0.87 $78.305743505 151 $0.59 $89.097826233 55 $0.59 $32.451028422 123 $0.50 $61.506917447 95 $0.50 $47.507863434 95 $0.39 $37.052757110 50 $0.20 $10.00

$5,267.73

TOP 19 Items

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POI (Perfect Order Index)

• Perfect Order Index Falls because:

–Shorts: not receiving products that should be on the truck.

–Mark outs: missing product shown to have in the system.

–Multiple handling of products before it makes its final destination

–Dumping products due to short dated shelf life when expecting 50%.

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Cultural Beliefs

• Second to None: Sitting in shrink meetings, I observed that the Knoxville division is always looking to improve their numbers and strive to deliver the freshest product to customers.

• Team Up: All the departments are communicating with each other to stay up to date, resolve issues, keep customers happy and challenge the status quo to be better everyday.

• Talk Straight: Everyone’s working hard to get the most accurate data and if any discrepancies arise, departments communicate immediately to resolve issues. Teams meet weekly to give and receive feedback about the weeks goals.

• Walk the Talk: Everyone takes pride in their work to deliver the best service and receive the best numbers to stay a competitive division.

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Summary

• Total Annual Expense (Conservative Estimate)–($14,009.19/6 weeks)*52 weeks= $121,412.98 Total Annual Expense

• EBITDA Annual Loss–($5267.73/6 weeks)*52 weeks= $45,653.66 Total Annual PA

allowance Loss• Largest amount of spend is Ft. Mill due to the 3PL carrier costing

700 on average/week.• 2nd: Atlanta due to the high quantity of products selected and

loaded.• 3rd: Memphis due to receiving backhauls twice a week.• 4th: Charlotte due to the lumping cost in receiving.• 5th: Montgomery due to receiving costs total.• 6th: Cincinnati due to selection and receiving cost.

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