Without question, foodservice distribution has become an increasingly

complex business as has the foodservice marketplace itself. To say

monumental change is afoot would be an understatement.

• A more demanding customer base and continued growth in contract

business has put pressure on margins.

• Manufacturer relationships are evolving and are increasingly

dependent on new methods of collaboration.

• Distributors face intense competition from other distributors, but also

increasing competition from retail grocers, club stores, cash and carry,

and online marketplaces.

• Operating expense is under intense pressure and as a result distributors continue to invest

heavily in new processes, business solutions, and complex new technologies.

• An industry accustomed to relatively high growth has seen a new reality of low single digit

growth in the last several years.

• There is also government at both the state and federal level advancing aggressive regulatory

regimes that carry significant compliance costs.

Even with these headwinds, the best distributors have found ways to grow much faster than the

average. What distinguishes those companies, in part, is the ability to attract, develop, and retain

exceptional people.

Armed with this knowledge, the IFDA Board of Directors, with input from the IFDA membership,

has worked to develop new solutions that can help your company in two critical areas related to

your people. The first is an executive development program designed to develop high-potential

employees in a way that ensures they become exceptional leaders capable of thriving in a

complex and fast-changing business environment. The second is online education that provides

foundational industry knowledge that can help a number of your associates excel in their jobs.

The Executive Development Program for Foodservice Distributor Executiveswas launched in

conjunction with the University of Virginia’s world-renowned Darden School of Business. The

program is designed to help participants improve their strategic thinking, critical thinking, and

decision analysis. It will also help develop the participant’s skills in team building, negotiation,

financial decision making, and in being better overall leaders.

During two independent sessions at Darden’s Charlottesville, VA campus, participants will spend

time discussing case studies about real-world business challenges and opportunities, and will

develop potential solutions. This is a highly engaging process — not lectures — and participants

will find the program both challenging and personally rewarding. The inaugural program will kick-

off in February, 2015. Full details can be found on the IFDA website.For membership information,contact Heidi Weiss at (703) 532-9400 or by email athweiss@ifdaonline.org.

by Mark Allen, President & CEO

IFDA is the leading tradeassociation representingfoodservice distributorsthroughout the U.S., Canada,and internationally. IFDA’smembers include broadline,systems and specialtyfoodservice distributors thatsupply food and relatedproducts to restaurants,institutions, and otherfoodservice operations.

4th Quarter 2014

Executive UpdateDeveloping Your Best and Brightest – A True Competitive Advantage

IN THIS ISSUE:

� Election Outcome and What ItMeans

� Tom Gillette of IndianheadFoodservice Distributor HostsTour for Wisconsin Gov. Walker,Lt. Gov. Kleefisch, and Rep. Ryan

� IFDA Report Defines Stakes ofSustainability for FoodserviceDistributors

� IFDA Korea Hosts SeoulRoundtable in May — U.S. Toursin November

� Highlights from the 2014Distribution SolutionsConference

� Reducing Damages in theWarehouse and on the Trailer

� New IFDA Committee Works toSupport Distributor ManagementOpportunities for Women

� IT and CFO Share Groups Meet -Discuss Challenges andSolutions

� Paying Attention to Driver Healthand Wellness

� McLane FoodserviceDistribution, Shamrock FoodsCompany, and Golden StateFoods Win Top Honors at IFDATruck Driving Championship

� Six New Members Join IFDA

continued p. 16, Competitive Advantage,

2

4th Quarter 2014

As you are all well aware, November 4 was an

extraordinary day for Republicans. They gained the

majority in the Senate by picking up nine seats including

the Louisiana runoff election on December 6. In the

House, Republicans have gained at least 12 seats, putting

them at their highest level since 1929. The domination

continued in the gubernatorial elections where

Republicans had a net gain of three and will now hold the

governorship in 31 states including some traditionally

blue states such as Illinois and Maryland. Here, I will take a

look at some themes that emerged from the election with

a few thoughts on what it will mean moving forward.

1. A No-Confidence Vote on the PresidentIt takes a great deal of energy to build a wave election and

that energy was provided by the nation’s dissatisfaction

with President Obama, no matter how much he tried to

dismiss it at his post election press conference. Though he

was not on the ballot, this election was very clearly

nationalized, which only occurs when voters want to send

a message to the President. Democrats knew it would be a

difficult environment and worked to keep each race

focused on local issues. While this strategy can work in a

year without an overriding theme, with the President at a

40 percent approval rating there is no way to seal an

individual race off from the outside impact. As a result

even when candidates run a near-perfect race such as Sen.

Kay Hagan in North Carolina, anger at the President

creates an anchor that can be too much to overcome.

2. The Return of Establishment RepublicansThe last two election cycles have seen the GOP squander

multiple opportunities by nominating a number of bad

candidates. National Republicans were determined not to

let that occur this year. When GOP incumbents found

themselves in trouble such as in Mississippi and Kansas,

the national party provided the resources and advice

needed to enable veterans Thad Cochran and Pat Roberts

to prevail. Cochran’s primary opponent, Mississippi state

senator Chris Daniels, was exactly the type of candidate

that had caused so many problems for the party over the

last four years. His nomination likely would have had

repercussions far beyond Mississippi by providing

Democrats with traction for themes such as the “war on

women” that they had used so successfully over the last

four years. Avoiding this outcome was a key part of the

GOP’s success.

3. Candidates and Campaigns MatterAs strong as the national tide was for Republicans, it

would have floundered without quality candidates. In

virtually all cases the GOP nominee was the top choice

and the ability of candidates — such as Cory Gardner in

Colorado, Joni Ernst in Iowa, and Thom Tillis in North

Carolina — to maintain focus and avoid any mistakes was

critical. By doing so they restored voter confidence in the

GOP brand and kept their opponents on the defensive.

Even better, these candidates and other new stars such as

Tom Cotton from Arkansas and Dan Sullivan from Alaska

will now come to the Senate prepared to provide a

different face for the GOP nationally, giving the party

additional reason for optimism going into 2016.

4. The State of the Democratic PartyWhen President Obama was elected and then reelected,

Democratic strategists envisioned it as an inevitable

ascension of the party to a long-term position of electoral

strength as the percentage of young voters and minorities

increased. Instead, the party finds itself in a far weaker

position. The numbers in the Congress are bad enough

with only 192 Democratic House Members, down from

256 in 2009. Even worse, however, is the shocking

Democratic erosion at the state level. After this election,

there are only 18 Democratic governors and the party will

control only 28 legislative chambers across the country. It

is clear that the President has left his party in a state far

worse than he found it.

5. Quick Thoughts on What the Change inPower MeansIncoming Senate Majority Leader Mitch McConnell (R-KY)

is committed to restoring the deliberative nature of the

Senate and returning to the legislative process. While it

will still usually require 60 votes to pass major legislation,

this is a critical change as it will create smaller

opportunities to bring about more congressional

oversight. Reinstituting the appropriations process and

getting these bills passed will provide opportunities for

Senators to question agency heads about their priorities

and use the power of the purse to defund particularly

Election Outcome and What It Meansby Jon Eisen, SVP, Government Relations

3

IFDA EXECUTIVE UPDATE

egregious regulatory excesses. A more open amendment

procedure on other legislation will also bring more

Senators into the process and perhaps create greater

opportunities to build broader support for certain bills.

As for the President, his press conference following the

election makes it clear that he sees no need to change his

way of doing business. His lack of personal relationships

will make it far more difficult for him to work with

Republican leaders and he does not appear to be

particularly interested in doing so. Issuing an Executive

Order on immigration, which both McConnell and House

Speaker John Boehner have warned against, is clear proof

that this is the case. Unfortunately, we can also expect

other regulatory agencies to continue with their agenda —

most critically in areas such as labor and the environment.

While control of the Senate will make some of this

regulatory activity more difficult, it will remain a challenge

for the foodservice industry going forward.

On October 29, Governor Scott Walker, Lieutenant

Governor Rebecca Kleefisch, and Representative Paul

Ryan (R-WI) visited Indianhead Foodservice Distributor

(IFD) in Eau Claire, Wisconsin. Tom Gillett, the company’s

chairman, and Todd Nordlund, the company’s president,

discussed a number of issues including the economy, the

potential impact of tax reform, and LIFO accounting

repeal. Rep. Ryan is likely the next chair of the House Ways

and Means Committee.

“Hosting Governor Walker and Representative Ryan at

our facility gave us the opportunity to discuss critical

issues and demonstrate how they impact our company,”

said Nordlund. Other topics included hiring of CDL drivers

Company Chairman Tom Gillett (right) and President Todd Nordlund (far right second row) lead a tour in October ofIndianhead’s distribution center in Eau Claire, Wisconsin. Guests included (l-r) Wisconsin Governor Scott Walker, Rep. PaulRyan, and Lt. Governor Rebecca Kleefisch.

Tom Gillette of Indianhead Foodservice Distributor Hosts Tourfor Wisconsin Gov. Walker, Lt. Gov. Kleefisch, and Rep. Ryan

and hours of service regulations. After a tour of the

warehouse, Walker, Kleefisch, and Ryan held a town hall

style meeting with IFD’s employees.

“These types of visits are the very best way to help

lawmakers understand the challenges facing foodservice

distributors and the key role they play as employers in the

community., said Jon Eisen, IFDA’s senior vice president of

government relations.

IFDA is happy to assist IFDA members in setting up

visits with elected officials. If you are interested in hosting a

visit, contact IFDA at (703) 532-9400.

Staff Contact: Carolyn West

4

4th Quarter 2014

An important IFDA report on sustainability in

foodservice is now available that was years in the making.

The actual report did not take years to write, but defining

the scope of work for such an effort was challenging.

Independent analyst firm Verdantix was commissioned in

2013 to lead the effort that produced Sustainability:

Foodservice Distributor Current Practices & Customer

Expectations Moving Forward.

Why is the study important? It helps define the “edges”

of just what sustainability means in foodservice. It shines

a light on the current state of sustainability within the

foodservice distribution industry. It identifies sustainability

initiatives considered to be best practices across both fleet

and warehouse operations of distributors. And because

the research also included interviews with operators, it

provides important insights on operator perspectives on

sustainability.

For the operators that were interviewed, improving the

sustainability of their supply chains was the most

important sustainability priority. One operator question

asked: “What impact do you think sustainability will have

on your distributor selection policy in the next three

years?” Respondents — which included operator

representatives from chains or large establishments such

as schools and hospitals, as well as a small sample of

independents operators — were asked to rank their

answer from “1 = Significant Impact” to “5 = No Impact.”

Not a single respondent selected “no impact,” and 90

percent rated it as a 1, 2, or 3. (see graph below)

The fact is, sustainability for the foodservice

distribution industry is largely associated with cost

savings and operational efficiency measures, particularly

within distributor fleets. While interviews conducted with

distributors for the study found that actual sustainability

spend is relatively

low, 57 percent of

distributors

anticipated spending

would increase over

the next three years.

Beyond delivering

cost savings,

satisfying

compliance

requirements and

increasing customer

demand around sustainability performance were

important drivers for sustainability spend.

In exploring sustainability best practice for distributor

fleets, four initiatives were identified. The direct

sustainability benefits these solutions delivered ranged

from lower carbon emissions for Auxiliary Power Units

(APUs), route optimization, aerodynamic upgrades, and

fewer road accidents with the use of driver training

programs. These initiatives also delivered significant cost

savings – one distributor achieved $85,000 in annual fuel

savings through a reduction in “engine-on” time and a

savings of approximately 1,800 gallons of fuel a month.

To help IFDA members measure how these initiatives

might fit their business, a business case toolkit for these

fleet initiatives was developed that allows distributors to

explore the returns they can expect from these initiatives

given the composition and delivery requirements of their

specific fleet. A second toolkit around warehouse

initiatives was also developed. Both Excel toolkits are

available at www.ifdaonline.org/sustainability-toolkits

using member sign-in credentials.

All of the initiatives considered can save money for

foodservice distributors and protect or enhance their

competitiveness versus their peers. In most cases, the

related sustainability benefits have been a welcome

coincidence. With this in mind, the research explored

whether the sustainability agenda is even relevant to

foodservice distributors and whether firms really needed

a sustainability strategy. It was found that a sustainability

strategy aligns distributors more closely with their

customers, supports stronger customer relationships, and

helps ensure the business responds more quickly to

emerging opportunities.

Staff Contact: Britt Wood

IFDA Report Defines Stakes of Sustainabilityfor Foodservice Distributors

5

IFDA EXECUTIVE UPDATE

In May 2014, IFDA Korea’s Songhwa Yang hosted a

roundtable at the Grand Hyatt in downtown Seoul that was

attended by executives from eight IFDA Korea member

companies. During the roundtable, IFDA President and

CEO Mark Allen providing a presentation on the

foodservice distribution industry in the United States,

including a discussion of trends and what is happening at

the operator customer level. Two specific subjects Allen

was asked to address were practices in managing the cold

chain and food safety. During discussion after the

presentation, Allen said the group asked a number of

questions about local sourcing and gluten free dining.

They also were interested in the concept of a safety event

like IFDA’s annual Truck Driving Championship.

Following the roundtable, Allen visited IFDA Korea

member Our Home, to learn more about their business.

Our Home is a large integrated food business that includes

manufacturing, distribution, and restaurant operations. The

tour included visiting a company test kitchen, seeing some

of the company’s manufactured products, having lunch at

one of the company’s restaurant concepts, and visiting an

Our Home coffeehouse concept.

More recently in November, representatives from IFDA

Korea members Daesang Best Co and Amoje Food Group

attended the IFMA/IFDA Presidents Conference in Phoenix.

Prior to the conference, they visited IFDA member

companies Gordon Food Service and Shamrock Foods

Corporation. The Gordon Food Service visit included a tour

of the company’s Grand Rapids distribution center, a tour

of a Gordon Food Service Store, and a tour of the

company’s corporate headquarters nearby. While there, a

team from Gordon Food Service provided overviews on

the company’s supply chain management, sales, and

merchandising. While in Phoenix, the group toured the

automated 850,000 square foot Shamrock Foods Arizona

distribution center.

Following the conference, the group traveled to Salinas

Valley for a multi-part tour with IFDA Partner company

Dole. The California leg of the trip included seeing harvests

and following the crop into a processing plant in Soledad.

The tour then traveled to Marina to see a distribution and

cooling facility. Tim Lynch, a quality assurance manager

with Pro*Act, assisted in coordinating the produce tour.

Staff Contact: Mark Allen

The Seoul roundtable included 22 executives from IFDAKorea member companies, who heard a presentationfrom Mark Allen on the U.S. foodservice industry.

Representatives from IFDA Korea member Our Homehosted Allen on a tour that included a visit to ademonstration store displaying some of Our Home’spackaged food products.

IFDA Korea Hosts Seoul Roundtable in May — U.S. Tours in November

In a conference room overlooking downtown Seoul in theearly morning, Songhwa Yang (right) of CY Partners andorganizer of IFDA Korea chats with IFDA President MarkAllen before the May roundtable.

6

4th Quarter 2014

Mike Ditka shared opinions on life and on football in a keynote sessionthat included extended Q&A with attendees. In a team sport likefootball, we can report that Coach Ditka is not a fan of dancing in theendzone or of displays that are all about “me.”

In addition to the many workshops featuring distributors, the Expo Theater provides short sessions featuring exhibitors ontechnologies and more. ABOVE LEFT: Attendees at a session on facility automation that featured representatives from FoodTechand Dematic Corp. ABOVE RIGHT: Representatives form PeopleNet, Cadec Global, and Omnitracs shared their knowledge on thefuture of onboard computers.

During a workshop Lucelena Angarita ofIPC (Subway’s purchasing coop) discussedthe benefits and progress being made in

GS1 data synchronization efforts.

Jim Tracy, SVP and general counsel at DotFoods, shared the top five priorities inemployment law that he sees facingfoodservice distributors. Workshop

attendees included company presidentsand senior HR people.

7

IFDA EXECUTIVE UPDATE

ABOVE RIGHT: It was a full house at a compelling workshop on“Operational Structure and Aligning People.” The session looked at ratiosof supervisors to employees, hourly vs. salaried leadership, and more.

ABOVE: Save a Load representatives discussed the company’s cargoload bars at the Solutions Expo. LEFT: IFDA’s HR LeadershipCommittee led roundtable discussions on employee engagementand development as well as recruitment and retention.

ABOVE LEFT: Attendees and exhibitors enjoy anetworking event at Indy’s minor leagueballpark.

LEFT: Leadership development continues togain momentum as an important factor insucceeding in today’s ultra-competitivemarketplace. During a opening day supersession, Vince Daniels covered strategies onhow to identify, develop, and promote thosewho have leadership promise.

SOME HIGHLIGHTS FROM THE

8

Product damage in the warehouse or on a delivery truck is

a thorn in the side of any operations manager. Whether a

product arrives damaged from the manufacturer or is

damaged in put-away, there needs to be a process to handle

the situation. A damaged product could be any item where

the integrity of the packaging or contents has been

compromised due to handling, impact, or other means,

therefore making it unsaleable. Some common instances of

damage could be a torn flour bag due to a nail on a pallet, a

smashed case of French fries from falling off a pallet during

putaway, or a leaking case of juice due to poor packaging or

poor handling.

At the recent IFDA Distribution Solutions Conference, a

panel of operations veterans from three distributor

companies discussed how to manage and minimize

damages from any cause. Ethan DeWall, director of

warehousing at Martin Brothers Distributing Company,

organized and moderated the workshop. His “damage

panel” included Steve Di Zinno, operations manager at City

Line Distributors, Mark Morton, chief operations officer at

Ellenbee Leggett Co., and Travis Busch, support staff manager

at Martin Brothers.

The thrust of the discussion was how to best document

damages, how to train for prevention of damage, and

some of the specific processes employed in managing the

damage challenge. Martin Brothers handles about 245,000

cases a week, while Ellenbee Leggett and City Line each

handle 45,000 to 50,000 a week. Regardless of the size of

the operation, all distributors seek to adhere to best

practices that have been developed through years of

experience.

Managing Damages at Receiving“We try to refuse as much damaged product as possible

at receiving,” said Busch, who noted that they take pictures

of the damage to have proof to show to the vendor. If it is

not possible to refuse the product, they store it until the

situation is resolved. For the portions of cases that are in

good shape, the undamaged product can be repacked into

a whole case.

Morton added that identifying damage when it comes in

the door is easier than when it occurs on the floor. “You

can see it when it comes in the door,” he said. Years ago, it

was easier just to accept a damaged shipment, he noted.

Now, you know someone else has caused the damage and

you just have to verify it and mark it on the bill. He pointed

4th Quarter 2014

Reducing Damages in the Warehouse and on the Trailer

During a workshop at the 2014 Distribution Solutions Conference, veteran operations execs shared their best practices for tracking andpreventing damages both in the DC and during delivery. The session was organized and led by Ethan DeWall (at podium), director ofwarehousing at Martin Brothers Distributing Company.

By Caroline Perkins

FROM THE

9

IFDA EXECUTIVE UPDATE

out that, with smart phones, everyone has the ability to take

a picture as evidence. Morton also recommended

deducting any damaged items from the shipment

immediately, assuming the damage originated with the

vendor, as freight claims after the fact often take a lengthy

time to be resolved.

Developing Careful Handling HabitsDi Zinno explained that at City Line, they train specifically

on preventing fork lift damage, which is the most prevalent

kind of damage that might occur in the warehouse. Di

Zinno said since their warehouse is small, they focus on

making drivers aware of their surroundings and ensure

they drive at safe speeds.

Morton said they have developed a different approach in

hiring and training over the years. In the past, when

someone left, they would hire someone new and train them

on the job. Now, they train fork lift drivers during a shift

other than the one they will eventually work. This way, the

shift manager doesn’t send them onto the floor too quickly

just to fill a position. When the controlled training program

is complete and drivers know they are accountable for

damage they cause, they are placed on a regular shift.

Busch said that new selectors ride around with

experienced selectors for a week. They learn how to build a

square pallet, and much more. The company created a

video that shows damages that have occurred from bad

practices and how they were handled. The video plays in

the break room as well as by the time box at the facility

entrance.

“We don’t hire them to fire them,” De Zinno said,

referring to warehouse employees at City Line. If

mishandling occurs once they are done with initial training,

the company retrains to improve performance.

Morton agreed, adding that they try to hire right and

train right at Ellenbee Leggett, and to motivate employees

with competition. Those who excel receive a $100 safety

bonus. Another tactic is to take photos of a successful pallet

build to show others how they can improve.

Busch noted that the amount or degree of damage tied

to an individual employee is a good indicator of whether

retraining needs to occur. “If an employee is really careless,

we have to write them up,” said Busch.

Busch described an alarm system used at Martin

Brothers that goes off when a driver hits something in the

warehouse. The machine shuts down and someone has to

turn it off. The alarm makes it easy to identify who has

caused a problem and drivers are motivated to use careful

driving habits.

Bagged and Fragile itemsAccording to Morton, some manufacturers take more

care with bagged products than others. Photos work well in

demonstrating what works and are shown to suppliers

who are not doing such a good job. Busch noted that they

had solved the issue of bags breaking by putting them on

the top of another pallet, thus preventing the selectors from

getting too close to a pallet of bags and damaging them.

“It’s a cheap fix to a problem” he said.

In the case of fragile items, Morton said, they put them

in the cab with the driver to ensure they are not damaged

en route.

Reclamation ProgramsMorton said they do not take refrigerated or frozen

products back as a general rule unless the product

remained on the truck under temperature control. They

have a further-processing meat facility so a USDA inspector

is on the property at all times. He or she makes sure all

HACCP regulations are being met.

Busch said that while they might have limited returns,

they generally do not reclaim any produce. The only

situation that might arise is when the delivery is a key drop

to the customer’s walk-in cooler and the customer doesn’t

see the product until the box is opened the next morning.

Busch said they have a cash-and-carry store where

undamaged products from broken cases can be sold.

Loading Dock and Trailer Material HandlingMorton said that using a single jack to load trailers

results in fewer damages that with a double jack. Di Zinno

explained that they reduce loading damage with pallet

wraps at City Line. Two wrapping machines are used to

stabilize pallets before they are loaded.

As for delivering products from the truck to a customer’s

operation, all three panel members discussed how

important it is not to stack boxes too high on a hand cart.

Di Zinno said they have a comprehensive hiring system for

drivers that includes making sure they can handle weight

on a hand truck. Busch described Martin Brother’s training

for drivers, which includes how to use the carts, how to

stack a proper configuration, and how to go down ramps

correctly.

Morton explained that they have safety bonuses for

drivers as well as warehouse employees, and for good

reason. “If the product arrives damaged, that customer

may go away,” he said. “So drivers are really getting paid

for good customer service.”

New IFDA Committee Works to SupportDistributor Management Opportunities forWomen

The Women in Foodservice Distribution Leadership

Committee met for the first time on October 20 in

Indianapolis. The committee’s objective is to engage and

encourage IFDA members to be inclusive of women as

they develop their leadership talent pool. In addition, the

committee will work to provide IFDA member companies

with resources, education, and experiences that support

the development of female employees. Suzanne Rajczi,

chief operating officer of Ginsberg’s Foods, Inc., chairs the

committee.

The leadership committee is putting into place a

roadmap that will focus on three key areas:

• Educating IFDA members on the benefits of attracting

more women to the industry and including them on their

leadership team,

• Expanding awareness of IFDA resources and services to

more women at member companies, and

• Attracting more women to participate in IFDA programs.

10

4th Quarter 2014

The Women in Foodservice Distribution LeadershipCommittee met for the first time at the DistributionSolutions Conference to discuss the group’s mission andactions that can be taken to attract more women intodistribution management.

Currently the group has seven members, and includes

women in leadership roles at distributor member

companies, manufacturer partners, and allied suppliers.

The committee plans to add additional members and will

meet two times per year and hold conference calls as

needed.

If you have questions about the work of the Committee,

please contact IFDA staff liaisons at (703) 532-9400.

Staff Contacts: Theresa Kessler and Heidi Weiss

IT and CFO Share Groups Meet - DiscussChallenges and Solutions

Two IFDA Share Groups met this fall — including an

October 22 meeting of the IT Share Group at the Distribution

Solutions Conference in Indy and a November 20 CFO

meeting in Rosemont, IL. Subjects for the discussions are

determined by a survey of registrants prior to the meeting.

The IT share group meeting included 11 participants that

broke into two groups. Topics included security issues such

as BYOD, contingency plans for data, risks associated with

cloud/offsite server vendors, robotics use in the warehouse

and ROI, voice picking and scanning, mobile apps, and

more. There was also significant discussion around data

being published using GS1 US standards. Companies that

participated included DiCarlo Distributors, Honor Foods,

Jake’s Finer Foods, Kohl Wholesale, Labatt Food Service,

Maines Paper & Food Service, Martin Brothers Distributing

Co., Quaker Valley Foods, Stanz Foodservice, The Chefs’

Warehouse, Upper Lakes Foods, and VIP Foodservice.

The CFO Share Group meeting in November opened

with an economic outlook by Economist Anirban Basu and

included 11 participants who had discussion as one group.

Topline takeaway from IFDA’s Britt Wood was that there was

significant discussion around technology solutions and how

different members of the share group are using a particular

technology (business intelligence, etc.). Other subjects on

the agenda included AR procedures, customer paperless,

employee satisfaction and benefits, and more. Companies

participating included BiRite Foodservice Distributors,

Clover Mountain Foods, Dawn Food Products, Ellenbee

Leggett Company, Ginsberg’s Foods, Golbon, HFM

FoodService, Performance Food Group, RRS Foodservice,

Springfield Grocer Company, Star Services Corporation, and

Van Eerden Foodservice.

Staff Contact: Mendy Cunningham

IFDA Share Groups provide a setting for frank discussionabout challenges, solutions, and experiences in differentareas of responsibility. Above, the IFDA IT Share Groupmeets in Indianapolis.

11

IFDA EXECUTIVE UPDATE

This is the fourth in a series of articles that provideinsights from thought leaders to help other distributorsmeet challenges around the driver role. In this article, MattHolt of Dot Foods shares what his company is doing tokeep drivers and other employees healthy.

Driver health is a priority for foodservice distributors,

and is gaining importance as the driver workforce ages.

Injuries and illness from poor health practices have a

physical and emotional downside for the individual driver,

and are expensive to the individual and their employer.

“When drivers are out of work, it is very costly to the

business,” says Matt Holt, vice president of human

resources at Dot Foods. “When you compare a driver’s

income to other employee types, the cost of a driver being

out of business to the individual and to the company

means there are more dollars at stake.”

Because of the physical nature of the job, Holt says Dot

Foods tries to do everything it can on the preventative side

to keep drivers from injury. Dot Foods, headquartered in

Mt. Sterling, IL, has more than a thousand drivers at its

nine facilities across the country.

Dot has an internal occupational health team that is

supported by experts from outside. At headquarters, the

team is led by Occupational Health Manager Julie

Zimmerman and includes a clinic doctor and nurse to deal

with work-related issues, plus a staff of four full-time

athletic trainers that meet with all employees that do

physical labor, providing education on various health

issues such as hydration.

“If one of the trainers looks onto the truck yard and sees

a driver entering his or her tractor in an unsafe manner,

they go and talk to them on the spot. Our strategy is to

identify issues with any at-risk employees,” Holt says.

While the health trainers are located at headquarters,

they travel to other Dot facilities and keep in touch via

telephone. Each location has a human resources manager

who is responsible for ensuring that Dot health initiatives

are made available to employees.

Prevention is key in healthcare strategy. Dot has a

number of prevention elements for employees including

free biometric testing to measure blood sugar and

cholesterol. To try to correct and prevent obesity, Dot is

offering onsite access to Weight Watchers meetings. The

company does not pay for membership, but allows

Paying Attention to Driver Health and WellnessBy Caroline Perkins

employees to attend meetings during work hours. Dot also

provides employees with a financial benefit to use the

YMCA located next to the Mt. Sterling facility. Dot and its

founders, Robert and Dorothy Tracy, provided significant

funding to build that YMCA in 2004.

Efforts to Mitigate Driver Work-Related InjuriesThere are two categories that affect the wellness of

drivers: work-related injuries and poor health practices,

such as obesity.

One of the biggest concerns is back or neck injuries

resulting from lifting boxes improperly. Dot, being a

redistributor, delivers orders to the docks of other

distributors, so Dot drivers are not subjected to the

challenge of having to navigate narrow spaces, stairs, and

other obstacles as are drivers delivering to foodservice

operations. But the boxes are just as heavy.

“Our drivers unload cases of food on a customer’s dock,

that’s part of our service. They don’t just back the truck up.

They pull off pallets and separate items so our customers

can receive them and put them away,” says Holt.

In some cases, the driver uses a manual pallet jack,

which requires pulling and straining and that can be a

source of injury. “We try to create ways so the driver

doesn’t have to yank the pallet jack over bumps in the

ground or the trailer because that can lead to injury. One of

our strategies is to have an electric pallet jack of our own

that we put on the end of the truck. It’s expensive, and

there is a limit to how much weight can be on a trailer, but

we think it’s a way to reduce injuries. Another strategy

would be to work with customers to use their electric

equipment but, for liability reasons, many aren’t able to let

us do that,” says Holt.

Slips, trips, and falls are another category of injury. They

can be caused by ice, wet spots, grease, loose flooring, or

even inadequate lighting. Most are preventable with

proper precautions. A severe winter can increase the

incidence of injuries. Holt says Dot has tried safety spikes

that can be put on over boots or shoes, providing traction.

“We make them readily available at no cost,” he says.

Because of the physical nature of the job, Dot conducts

physical ability tests when hiring. “There is a strength and

a conditioning aspect,” Holt says. “Because our drivers lift

boxes that can weigh 50 to 80 pounds, they need to test

4th Quarter 2014

12

Sleep apnea is also on Holt’s radar. With legislation

looming that could pull drivers with sleep apnea off the

road, Dot’s Safety Managers and Benefits Managers, with

help from the benefits consultants, are working on their

own to come up with a proactive, cost-effective solution to

dealing with it. Having done research for several years,

Holt feels that the team is getting closer to a solution.

Holt believes that awareness of health and wellness

issues is critical, and that helping employees understand

their health issues makes it more likely for them to take

steps at being healthier.

DO’S and DONT'S• Do be proactive about driver health when possible.

• Do work to prevent causes of work-related injuries.

• Do stay on top of health-related legislation.

• Do keep records to analyze and pinpoint the health issues

that require the most focus.

• Don’t assume one strategy or method will work for all

employees, therefore design programs that are multi-

dimensional to reach the greatest number of employees

and their families.

• Don’t treat driver health as an occasional concern.

Integrate good health practices into everyday operations.

that they can lift that much weight. That’s the physical

ability test. After we make a job offer, there is a physical

conditioning exam. The driver meets with a doctor and

goes through his entire history of injuries, pain, etc. The

intent is to make sure the person is physically capable of

the job.” He adds that they do provide training for how to

navigate a dock, and recently started offering a strength

and conditioning program.

Commitment to Wellness“We have a significant investment in wellness for all our

employees,” Holt points out. Two thirds of employees

volunteer for a biometric blood draw each year. They

receive feedback on the results and discuss resolutions to

any issues. There is a monetary incentive to staying well.

Employees are qualifying this year for a 2015 reward of

$300 to $600.

While few drivers have as yet signed up for the

company’s awareness of obesity program, obesity in

drivers is a concern, Holt says. “They do physical work on

a customer’s dock, but the reality is, other than the boxes

they lift, it’s a sedentary life. They don’t always take time to

get their heart rate up for 20 to 30 minutes on a regular

basis.” Since high blood sugar and high blood pressure are

results of obesity, Dot puts a lot of focus on the biometric

tests as a warning device.

At the 2014 Distribution Solutions Conference, writer Caroline Perkins (at podium) led a discussion on driver shortagesolutions with HR experts who have shared their expertise in this 2014 series of articles. On the panel (left to right) are MarkMullins of Ben E. Keith Foods, Stephanie Wyatt of Maines Paper & Food Service, Matt Holt of Dot Foods, and Terry Cameronof McLane Foodservice.

IFDA EXECUTIVE UPDATE

13

McLane Foodservice Distribution, Shamrock Foods Company, and GoldenState Foods Win Top Honors at IFDA Truck Driving Championship

A torrential downpour of rain greeted truck drivers as

they stepped off buses onto the EPCOT parking lot. While

getting a little wet wasn’t out of the ordinary for these food

industry drivers, what they were doing over the next six

hours was. They were competing in the 28th Annual IFDA

Truck Driving Championship, a transportation safety event

that included drivers from Hawaii to New York and from

Ontario to Texas. Luckily, the sky began clearing by mid-

morning, and drivers and spectators alike had a great

weekend of competition.

The competition started Friday evening with a written

exam that included questions about road laws, vehicle

safety, and even first aid.

At the parking lot on Saturday, drivers faced the final

two parts of the competition. That included a field course

simulating six driving problems. One included driving a rig

between two lines of tennis balls with only four inches of

total leeway. Another included a simulated alley the driver

had to back into, where they had to stop within 18 inches

of the dock to score. The other test at the parking lot was a

pre-trip vehicle inspection to look for any safety or

mechanical issues. In 2014, there were ten planted defects

on the vehicles, so if the driver didn’t spot the loose lug

nut, the grease leak, or the small piece of trash near the

accelerator, they lost ten points for each item they missed.

So why hold a truck driving championship?It all comes down to safety. In the U.S. alone,

foodservice distribution companies deliver the equivalent

of some 225 million cases a day to supply restaurants and

other professional kitchens. The drivers delivering those

products have to navigate everything from tight alley docks

in a city to a small parking lot in a rural town.

“The IFDA Truck Driving Championship provides focus

on transportation safety that reinforces efforts made by

individual companies throughout the year,” said Mark

Allen, president and CEO of IFDA. “Driving a commercial

truck is serious business. This event helps recognize

exceptional drivers in the food industry, tests their skills

and knowledge, and celebrates safety in a competitive but

fun way.”

To participate in this national championship, drivers

have to win a company, local, or state competition. While a

majority of the participants come from IFDA member

companies, the championship is open to any companies

that distribute food.

In the end, nine food industry drivers received top

awards in the 2014 competition, including 1st, 2nd, and 3rd

place finishers in three categories of trucks. The winners

were recognized at a Sunday evening banquet attended by

some 500 people, with winners each receiving a cash

Winners of the 2014 Championship were announced at a Sunday evening banquet, including the 1st Place Champions inthree truck categories: Ruben Vicente of McLane Foodservice Distribution - Riverside, CA (5-Axle), Danny Duke of ShamrockFoods Company – Commerce City, CO (3-Axle), and Paul Styzinski of Golden State Foods, McCook, IL (2-Axle).

14

4th Quarter 2014

award and a medal. First place finishers also receive a

personalized "Championship" jacket and a large

championship magnet that can be displayed on their truck.

Winners of the 2014 Championship include:

Straight Truck1st: Paul Styzinski, Golden State Foods

2nd: David Meineka, McLane Foodservice Distribution

3rd: John Duggins, Ben E. Keith Foods

3-Axle Tractor/Trailer1st: Danny Duke, Shamrock Foods Company

2nd: Brad Potter, Ben E. Keith Foods

3rd: Steve Tribe, Nicholas and Company

5-Axle Tractor/Trailer1st: Ruben Vicente, McLane Foodservice Distribution

2nd: Dominick Santarcangelo, The Martin-Brower Company

3rd: David Bunting, The Martin-Brower Company

“While IFDA hosts and coordinates this championship

each year, we could not do this without the help of a

number of dedicated people who care about transportation

safety and drivers in the food industry,” said Allen. ”Dick

Hairston at Ben E. Keith Foods led this effort in 2014 as our

competition chair and helped design a fair but really

challenging competition.” Others on the planning committee

assisted in those efforts, including Vice Chair Ted Gunderson

of Nicholas & Company.

During the awards banquet, Allen also thanked a number

of companies that help through financial and other support,

including equipment for drivers to use during the pre-trip

and field course. Key supporters include PLM Trailer

Leasing, TMW Systems, Lytx, Cadec Global, Great Dane

Trailers, Penske Truck Leasing, Kidron, and others.

Winners at the 2014 Championship include (left to rightrear) Danny Duke of Shamrock Foods, Paul Styzinski ofGolden State Foods, David Bunting of Martin-Brower,John Duggins of Ben E. Keith Foods, DominckSantarcangelo of Martin-Brower, (left to right front), DavidMeineka of McLane Foodservice, Steve Tribe of Nicholasand Company, Brad Potter of Ben E. Keith Foods, andRuben Vicente of McLane Foodservice.

A driver navigates the straight line challenge, also knownas the “tennis ball line of doom.” The driver has only twoinches of leeway to either side of the tires. Any ballknocked off its stand is a deduction of five points.

The Martin-Brower Company was presented the first-everTeam Award. To be eligible, a company had to have atleast three drivers in the competition (13 companies metthat hurdle). The Team Award recognizes the company thathas the best combined performance from its drivers onthe written test and field course portions of thecompetition.

15

IFDA EXECUTIVE UPDATE

Six New Members Join IFDAHoreca Totaal Brugge BVBA provides food and beverage

products to foodservice customers in Belgium including

independent and chain restaurants, education, healthcare,

retail, and convenience. In addition, the company operates

a supermarket and home furnishings store. Horeca Totaal

offers products such as frozen foods, dry and canned

foods, fresh produce, cutlery, cookbooks, fresh meat, dairy

produce, and wines and spirits. The company is currently

doing business in Belgium and The Netherlands, and is

part of a consortium of European distributors formed

several years ago by IFDA member Java BVBA. Interested

in best practices, technology and business relationships,

Owner/CEO Roderik D’Hoore is the primary IFDA contact at

Roderick.D’Hoore@horeca-totaal.be. For more information,

visit www.horecatotaal.be.

Kailis Bros in western Australia is a family-owned business

with roots leading back to the small Greek island of

Kastellorizo. Kailis Bros provides commercial food services

and maintains an extensive range of wholesale food and

catering products. The company owns, operates, and fully

manages the end-to-end process for their customers,

utilizing a fleet of more than 80 vehicles. Kailis Bros is a

founding member of Combined Food Services of Australia,

the largest food service buying group in Australia. Their

customer base includes quick service restaurants, global

industrial caterers, airline caterers, government

institutions, armed forces, and the general foodservice

market. The company is currently also doing business in

the US, France, Japan, and China. Matthew Kailis is the

head of firm contact to IFDA. To learn more about Kailis

Bros, visit their website at www.kailisbros.com.au.

Frasa International Trading N.V.was founded in 1981 inOranjestad, one of three major seaports in Aruba. The

company is a broadline distributor serving the needs of

chefs, hospitality, and retail customers and offers many

nationally known food brands, which extends to more than

7,000 SKUs including produce and dairy. Frasa has grown

over the years, through innovation and strategic

partnerships, to become one of Aruba’s most well

established distributors. Francis Saladin, managing

director, is the head of firm contact for IFDA and can be

reached at fe.saladin@frasaaruba.com. Frasa is a member

of the Golbon buying group.

National DCP is a member-owned sourcing, purchasing, and

distribution cooperative and is the exclusive purchasing and

distribution entity for Dunkin’ Donuts restaurants in the

continental United States. The company’s primary focus is

procuring, contracting, and delivering the food, packaging,

and equipment needed to operate the 7,000+ franchise

locations across the U.S. The company also exports

products to customers in 33 countries, and delivers

approximately 1.1 million cases of product weekly.

Headquartered in Duluth, GA, the company employs more

than 1,100 associates. Scott Carter is the CEO, and will be

participating in the 2015 IFDA Partners Executive Forum.

National DCP is a member of the UniPro Foodservice. For

more information, visit nationaldcp.com.

Star Services Corporation, located in Tarentum, PA, is a

leading distributor of disposable food service, specialty

coffee shop supplies, cleaning and janitorial supplies, and

packaging supplies to greater Pittsburgh area restaurants

and businesses. In addition to their distribution business,

the company operates www.mycoffeeshopsupplier.com.

Star Services was founded in 2002. The two co-owners,

Donald Yoest and Matthew Plocki, quickly grew the

business. The combined company is now among the

region's fastest growing, realizing 81 percent growth from

2005 through 2007, according to the Pittsburgh 100, a

compilation of the region’s 100 fastest-growing companies

published by the Pittsburgh Business Times. Company

President Matthew Plocki is the primary contact to IFDA and

can be reached at mplocki@starpcb.com. To learn more, visit

starservicescorporation.com.

Inabata America Corporationwas founded in 1978 as awholly owned subsidiary of Japanese parent company

Inabata & Co., Ltd. The food service division focuses

primarily on fresh and frozen fruits and vegetables, and

marine products from SE Asia including frozen shrimp, soft

shell crab, and a variety of tempura. Inabata’s specialized

functions have satisfied a vast range of client requirements

through business planning, marketing, manufacturing, and

supply chain management. Inabata continues to integrate

its global network, generating additional value to its clients

and partners. They currently do business in the US, Mexico,

Costa Rica, Chile, Canada, Japan, South Korea, and the UK,

and has a local office in Costa Mesa, California. The head of

firm contact to IFDA is company President Naobumi

Matsuki. To learn more visit www.inabata.com.

16

4th Quarter 2014

The second program is Foodservice Essentials— a self-

paced online program that provides industry

professionals such as sales representatives, marketing

managers, and customer service personnel with a

contemporary and solid understanding of the

foodservice industry and its many facets and nuances.

IFDA is launching the program in partnership with

Technomic and the Foodservice Sales and Marketing

Association.

The curriculum will include approximately 12 hours of

coursework, with an exam at the end of each module.

The modules focus on industry structure and definitions,

job descriptions and roles, process flow and buying

practices, trading partner relationships, operator

segment realities, business economics, menu and

culinary trends, and consumer trends and

demographics. We are confident that this program will

help foodservice professionals across the industry gain a

broader industry perspective and enhance their

contributions to the business. Full information on this

program will be available in the near future.

Although growth and efficiency initiatives will always be

important to distributors, people will always be our true

competitive advantage. We hope you strongly consider

how these new IFDA programs can be used to develop

your best and brightest.

Competitive Advantage continued

At the Distribution Solutions Conference Scott Snell, professor of business administration at the Darden School of Business,addressed the IFDA Board of Directors about final details of the Executive Development Program for Foodservice DistributorExecutives.

IFDA Partners Executive ForumJanuary 25-28, 2015Ritz-Carlton Amelia IslandAmelia Island, FL

IFDA Washington Insight ConferenceApril 21-22, 2015The Liaison Capitol HillWashington, DC

IFDA SMart ConferenceJuly 12-14, 2015Ritz-Carlton New OrleansNew Orleans, LA

IFDA Truck Driving ChampionshipSeptember 18-20, 2015Disney Yacht & Beach Club ResortOrlando, FL

Distribution Solutions ConferenceOctober 27-29, 2015Phoenix Convention CenterPhoenix, AZ

IFMA/IFDA Presidents ConferenceNovember 1-4, 2015Fairmont Princess HotelScottsdale, AZ

Upcoming Events 2015