1. A Taste of What’s Cooking at US Foods
Inter-branch Cost
7/27/16
2. 1
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.
3. 2
Objectives
• To gain knowledge of US Foods operations.
• To understand major functions of operations and
transportation.
• To obtain real world experience for career development.
4. 3
Areas of Focus
• Day warehouse operations
• Night warehouse operations
• Transportation Management
3
5. 4
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.
7. 6
Selection and Loading Expense (Outbound)
6 Week Total
$-
$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
Atlanta Ft. Mill Memphis Charlotte Montgomery Cincinnati
8. 7
Transportation Expense Per Trip
$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
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
Total Expense Fuel Pay
Cincinnati Charlotte Atlanta Montgomery Memphis
9. 8
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)
10. 9
Lumping, Receiving and Put away Expense
(Inbound)
$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
$-
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
$900.00
$1,000.00
Lumping, Receiving, Put away Expense (Inbound)
Total Rec Total Lumping Total Inbound
Cincinnati Charlotte Atlanta Montgomery Ft. Mill Memphis
11. 10
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
$1,766.27
Total Expense
Cincinatti Charlotte Atlanta Montgomery Ft. Mill Memphis
48%
17%
13%
5%
9%
8%
12. 11
EBITDA
• Due to the original division receiving the profit allowance from the
vendor, when inter-branching products, Knoxville Division loses on
the PA allowance. Product # Received PA$ per cs Total
4364683 84 $27.62 $2,320.08
1510080 76 $3.76 $285.76
7802523 60 $3.42 $205.20
3209301 127 $3.32 $421.64
133223 72 $2.62 $188.64
8562183 180 $2.14 $385.20
4289082 200 $2.06 $412.00
522839 68 $1.43 $97.24
3778610 70 $1.41 $98.70
7275498 87 $1.29 $112.23
3778586 165 $1.17 $193.05
7281025 170 $1.13 $192.10
4286357 90 $0.87 $78.30
5743505 151 $0.59 $89.09
7826233 55 $0.59 $32.45
1028422 123 $0.50 $61.50
6917447 95 $0.50 $47.50
7863434 95 $0.39 $37.05
2757110 50 $0.20 $10.00
$5,267.73
TOP 19 Items
13. 12
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%.
14. 13
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.
15. 14
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.
14
Shorts caused by buyers placing item on po but branch doesn’t have it in stock
How it affects both branches. If we order 10 chickens, We (out of stock) we deny the shipment and now they’re customer number, it counts against their metric. Dirty invoice.