Foodservice industry gathers to hear benefits of EFR

Over 150 representatives from the foodservice industry gathered on May 1, 2000 to hear the latest develop­ments on the Efficient Foodservice Response (EFR) initiative at the second annual conference. This year’s theme, “Linking the Chain: Applying EFR Principles for Maximum Return,” examined the benefits to be realized by aligning business processes with the entire foodservice supply chain.  Speaker highlights include:

• Paul Wexler of Advantica Restaurant Group, Inc., owner and operator of over 3,000 outlets in the U.S. including Denny’s and Coco’s, illustrated how EFR can deliver value for foodservice companies including reduced supply chain and operating costs, increased return on assets, and a greater competitive advantage. Wexler shared the findings of a study commissioned by Advantica that showed potential EFR savings of $20.5 million annually, based on the company’s share of the total foodservice market.
   
• Using the results of two recent e-commerce pilot projects, Craig Simpson, SERCA Foodservice Inc., Murray Webb, Lipton Monarch and Jim Greenwood, GFS Canada, demonstrated how e-commerce can streamline business processes.  The Lynch/Finlay Greenwood project involved implementing two EDI transaction sets (850 & 810), while the Lipton Monarch/SERCA project implemented four EDI transactions: price sales catalogue (832); purchase order (850); purchase order acknowledgement (855); and invoice (810).  As a result of being able to automate the purchase cycle, Lipton Monarch reported 34% savings due to efficiencies gained in three primary areas: customer service; billing and accounts receivable; and general administration.  Similarly, SERCA reported that total debit/credit memo ratio to invoices reduced from over 40% before the pilot to 10%, and pricing errors reduced from 15% to 6.6% (due to management error not data integrity).  Key learnings from both pilot projects include: the price sales catalogue (832) is the foundation stone for any e-commerce transaction; savings cannot be realized without integration; and critical mass implementation is the key to realizing the full savings potential.
  
• With an average compliance rate of 75-80% and a 97% scan rate reported from recent bar code warehouse audits, Rich Mondoux, Schneider Corporation and Rick Flanagan, Flanagan Foodservice Inc. reported that the industry is nearing critical mass implementation.  A cost benefit template for distributors was developed by the EFR Bar Code Committee to measure savings in five areas: receiving; putaway; replenishment; order assembly; and loading.  Using the template, Distributor 1 with 60,000 cases shipped per week saved $0.06 per case or $187,000 annually, and Distributor 2 with 72,000 cases per week shipped saved $0.10 per case or $374,400 annually.  For a copy of the template, contact Stefan Mischenko at ECCC at e-mail: stefanm@eccc.org.
  
• By 2000, business-to-business e-commerce sales will reach $400B, according to Bryan Stewart, IBM Canada Ltd.  To help foodservice companies get started on their own e-commerce plan, Stewart presented a four-phase technology roadmap including: establishing a technology foundation; striving for operational excellence; optimizing the supply chain; and achieving ‘best of class’ through continuous improvement. He advised companies to: include e-business in their business or technology plan; start small and grow fast; build on what you have; make it a team effort; and address security issues.

Redesigned web site launched at annual conference

During the conference, the EFR Education & Communications Co-chairs, John Lewarne, H.J. Heinz Company of Canada Ltd and Dan Flanagan, Flanagan Foodservice Inc., launched a redesigned EFR web site.  The site includes a new design, as well as new information such as operator benefits, presentations from the conference, and implementation timelines.  Visit www.efrcanada.org for more information.

The EFR Steering Committee would like to thank the sponsors of the EFR conference for their generous support:  Foodservice & Hospitality Magazine, IBM Canada Ltd., Oracle Corporation and Sterling Commerce.

Panel discusses what EFR means to company bottom line

A panel of industry experts, representing each link in the supply chain, discussed what EFR means to their bottom line.  Here’s what they had to say:

• “ARAMARK has profited from EFR activities. It’s a realistic and viable opportunity that has helped us develop analytical tools for our company. EFR will be the criteria of the selection process of suppliers. We are pleased to be one of the catalysts making EFR happen and we will continue to work with the industry to advance this initiative.” Tom Forestell of ARAMARK Canada Ltd.
  
• “EFR presents an opportunity to take costs out of the system by using EDI and scannable bar codes, and to grow sales per customer through web based technology.” Jim Greenwood of GFS Canada and EFR Steering Committee Co-chair.
  
• “EFR is the right process for the foodservice industry. Start with the basics, bar codes and scanning, get the partnerships established with trade customers, and then get the database right.” Gordon Wilson of Nabisco Ltd. and EFR Steering Committee Co-chair.
  
• “How do we reach and meet our customers’ demands?  In the last year, we developed a web site to serve our customers.  Last year, our expectations were to achieve 5% of sales via web.  Now we’re looking at 40%.” Gary Seaman of SERCA Foodservice Inc.
  
• “The industry isn’t as competitive as it should be and the only way to change that is to work together to improve efficiencies.  There is an opportunity to implement all the transaction sets, not just the four in our pilot project.  We see the value and we will continue to implement EFR initiatives.” Murray Webb of Lipton Monarch and E-Commerce Committee Co-chair.

ECCC Network Services grows to include MarketInfo for foodservice

Effective June 1, 2000, the ingredient and nutritional data elements that populate the Prologue database will join the family of services provided by ECCnet.  These additional data elements are of increasing importance to the foodservice industry and consumers.  Re-named MarketInfo, these additional data fields will be fully integrated with the centralized product data records and images that are ECCnet.   For more information, contact Kirby McBride, at Kirby@foodservice-exchange.com or call 416-626-0809 or call the ECCC.

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