mark coulton mcfe int’l supply chain management latin america / caribbean region
TRANSCRIPT
Aruba, Curacao, Freeport, Nassau, Grand Cayman, USVI, Puerto Rico, Dominican Republic, Jamaica, Guatemala, Honduras, El Salvador, Panama, Costa Rica, Venezuela, Mexico, Trinidad, Argentina, Ecuador and Chile
FUTURE POTENTIAL MKTS …Brazil, Colombia, Peru, Nicaragua…and much more in Mexico
What is Supply Chain Management?
What is International Supply Chain Management?
PriceProductPromotionPlace
Price Product Promotion PlacePERFORMANCEPEOPLE
PRICE PRODUCT PROMOTION PLACE PERFORMANCE PEOPLE
PARTNERSHIP…WHAT IT TAKES TO GET IT DONE!
Food Cost Management
Ask yourselves???…Are we doing this?…Should we be
doing this?
What do we look at and for…
Food Cost Management
Suppliers / Plants DC’s and Freight
Forwarders
Managing your own costs… Theoretical vs. Actual Food
Cost P&L (distribution, freight,
duties) Operational cost controls…
Waste, yields, portion control, inventory controls
Goals and Objectives… Lower your distribution
costs...◦ Freight, duties, taxes?◦ Shipping, handling?◦ Inventory turnover?◦ Ordering cycles? FIFO, LIFO, FISH
Improve the product cost…◦ In-Country (local production)
Raw materials?Ingredients, Specifications?Formulations?
...DOMESTICALLY…Importation from the USA◦ Savings are passed on◦ Volume helps pricing
market commoditiesseasonality index
During Market Visits…◦ Meet with Key Suppliers
Leverage local and imported raw materials / ingredients
Implement cost driven indicators Re-negotiate prices Leverage volumes where applicable
During In-Country Supplier Visits…The intention is to:
◦ Drive down costs !!!◦ Protect and uphold the Brand Image◦ Enhance product quality…after all,
...GOALS…...GOALS…
REDUCE COSTSREDUCE COSTS
OPTIMIZE PROFITABILITYOPTIMIZE
PROFITABILITY
One fast way to INCREASE your profits is…
Manage your credit terms with the DC’s
This = PROFITS $$$
Container Value
46 - 60 Days 12%
31 - 45 Days 8.5%
SAVINGS per load
SAVINGS per year
30 Days 6.5%
SAVINGS per load
SAVINGS per year
Cash in Advance
4.5% SAVINGS per load
SAVINGS per year
40,000$ 44,800$ 43,400$ 1,400$ 16,800$ 42,600$ 2,200$ 26,400$ 41,800$ 3,000$ 36,000$
WHAT DOES IT MEAN…? Getting the right product there At the right time At the right price All the time….
MISSION STATEMENT: To ensure delivery to our International
restaurants products that meet or exceed high quality standards, while achieving realistic food costs.
THE BEST POSSIBLE PRODUCT AT THE LOWEST POSSIBLE PRICE!
MORE SIMPLY SAID…
Do it! Do it Right !! Do it Right
Now !!!
Make It Happen !!!
Intelligent people who are CEO’s or General Counsels of their companies have been know to say the most surprising things over the years…WHAT ARE YOR THOUGHTS ABOUT THESE COMMENTS?1. It is ok to bring in up to $100 worth of Cuban cigars into the United States.2. Dietary supplements that are "all natural" are not regulated by the U.S. Food and Drug Administration (FDA), and, therefore, can make all kinds of medical claims.
3. The U.S. Government does not care about the value of cargo being exported from the United States because there are no duties, taxes or fees paid to the U.S. Government on exports. 4. If an airlines passenger brings into the United States over $10,000 in cash, the passenger must pay a tax to U.S. Customs or the IRS. 5. If an importer uses a customs broker to file an entry with U.S. Customs and Border Protection, and some false information is provided to U.S. Customs, only the customs broker is liable to U.S. Customs, not the importer.
6. No one gets hurt by importing, buying and selling counterfeit merchandise. 7. If some food product is marked with "Made in America" it must be good, but if it is marked "Made in China" then it must be bad. 8. If an imported item is marked "Made in Vietnam" or "Made in Malaysia" or "Made in America" then if really must have been manufactured or produced in the identified country, and no other.
9. Since it is illegal to sell military items to places such as North Korea and Iran, if a U.S. company ships those items to a friendly country such as Australia or England, and the buyer in those countries then re-export them to North Korea or Iran, the U.S. company has done nothing wrong.
10. A product manufactured in India, transported to Mexico, and then imported into the United States from Mexico should enter duty free under NAFTA because Mexico and the United States are members of the North American Free Trade Agreement (NAFTA).
-If you only use one supplier, you leave your supply chain open to risk.
-What happens if that supplier has an issue and you can’t get your goods in time?
*You need to have a back up plan so your supply chain is always working.
-You do not ever want to be without at least one backup vendor for key items.
*Dual sourcing is a best practice that even the smallest of organizations should strive to implement.