Supply Chain Modeling: Logistics
Dr. J. Vande Vate
• Teofilo N. Hafeitz
• Nicholas Lucic
• George Williams
SYSCO Food Services Inc.
SYSCO is the largest marketer and distributor of
foodservice products in North America. Operating
from 101 distribution facilities, the company
provides products and services to about 356,000
restaurants and other foodservice operations
across the contiguous United States, Alaska, The
District of Columbia, Hawaii and portions of
Canada.
SYSCO’s History
• 1946 Zero Foods is created
• 1969 John F. Baugh forms
SYSCO Corporation
• First year of sales reached $115 million
Company Goals
• Provide customers with quality products
• Deliver in a timely manner
• Remain #1 in the Food Services Market
SYSCO Food Services Inc.
• Employs approximately 40,000 workers
• Has 101 Distribution centers
• 270,000 unique products
• 356,000 customers nationwide
• Company Headquarters in Houston, TX
101 Distribution Centers
• Broadline Facilities - 63
• Specialty Produce - 22
• SYGMA Facilities - 13
• Custom-Cutting Meat
Operations - 3
Products and Services
Foodstuffs
Food Service Supplies
 Produce
 Meats
 Poultry
 Seafood
 Dairy
 Dry goods
 Frozen foods
 Beverages
 Table top products
 Equipment
 Non-foods
SYSCO Brands
Suppliers
• 1500 suppliers nationwide
• Custom made products (SYSCO Brands)
• Close relationship with suppliers
Customers
• Restaurants
• Hospitals
Nursing Homes
• Schools
Colleges
• Hotels
Market Competition
SYSCO
• #1 in Market
• 3 times as bigger
• 9% of the Market
Closest
competitors
• US Foodservices
• Alliant
• PYA Monarch
Market Competition
Transportation
Warehousing
Transportation
Customers
Information
Flow
Factory
Transportation
Warehousing
Transportation
Vendor/plants/ports
SYSCO orders from Suppliers
• Inventory Forecasting
• Seasonal Items
• Individual EOQ calculations
• Barcode System (SOS)
Transportation
Two possibilities:
– Supplier ships the products
– SYSCO transports the products
Transportation to Customers
• Assignment of routes with RoadNet
• Proper loading of trucks
• Shuttle System
Delivery Promise
• 24-hour lead time guarantee 99.6%
• 3-hour service window
Atlanta Warehouse
• 5th largest in the SYSCO network
• 13,000 unique items (850 suppliers)
• $19 million inventory
• Inventory Turnover - 17 to 18 days
• Plant Tour
SYSCO Food Services
of Altanta Inc.
SYSCO’s Future
• Implementation of SUS in all locations
• “Fold-Out” strategy
• Present and Future warehousing designs
• Maintain their goal to stay at #1!!!
L-Shape Warehouse Design