By: Jack Branston Philip Clemmons Brittany Johnson

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ByJack Branston Philip ClemmonsBrittany
Johnson
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Who is ?

• August of 1993 PFG became a public company
• The merger of Fresh Express in October 2001
  vaulted PFG into the nation's largest provider of
  packaged salads and other fresh-cut produce to
  grocery chains, other retail stores, and
  restaurants.
• Today they are the 3rd largest broadline food
  service distributor in the US (behind SYSCO AND
  U.S. Foodservice)
• PFG supplies more than 64,000 national and
  private-label products to about 48,000
  restaurants, educational and health care
  facilities, and fast-food chain customers in the
  Northeast, South, and Southwest.
• Cover 50 states and 44 countries.
• 329 in Fortune 500 in 2004

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We will be the innovative leader in providing
customer satisfaction.In partnership with our
customers, associates, vendors and sister
companies, we will achieve mutually profitable
growth.We will continue to operate with honesty
and integrity as we support our partners and
community.
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3 Operating Segments
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• Broadline

• Customized

• Fresh-Cut

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• The Perishable Experts
• Customizes distribution process to meet
• restaurants individual needs.
• 8 division locations across the U.S.
• Nearest location in Lebanon, TN.

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How does the supply chain fit PFG and Cracker
Barrels market strategy and customer base?

• PFG Delivers a high quality potato ready for
  their Cracker Barrels national restaurants.
• Large Volume Causal dining for low cost.
• Cracker Barrel prepares Mashed Potatoes at the
  individual level (retail store straight to
  customer).
• Mashed Potatoes are considered a labor intensive
  product.
• Cracker Barrel wants to give a country food taste
  and quality to the consumer.

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Potatoes
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Inbound Logistics

• Idaho potato farmers produce potatoes.
• Idaho Farmers Organization delivers potatoes to
  ABC company.
• ABC packages produce for shipment.
• Using West Coast Trucking/England Transport, PFG
  carries raw potatoes from ABC Idaho location to
  PFG distributors in Tennessee, Texas, Florida,
  and Maryland.
• Nearest Distribution Center Location
  Lebanon, Tennessee

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Inbound Logistics

• Trucking Companies
• West Coast Trucking
• England Transport
• Companies provide refrigerated trucks to keep
  produce fresh.

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Inbound Logistics

• How does PFG minimize Less-Than-Truckload
  (LTL) shipments?
• PFG arranges freight schedules to maximize
  truckloads.
• If LTL situation arises, pull suppliers together
  on same shipment.
• e.g. Combine mushroom and potato
  shipment
• LTL shipments are rare since potato quantities
  are large and capacious.

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Distribution Centers and PFG Inventory

• Potato shipments arrive at PFG Distribution
  Center on West Coast Trucking/England Transport
  trucks.
• Shipping docks receive potato shipments and sort
  based on final destination.
• 9 days worth of inventory is held at distribution
  center. 8 days cycle inventory and 1 day of
  safety stock.
• Demand for potatoes is stable and constant
  throughout year, therefore little need for
  seasonal inventory.

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Outbound Logistics

• Shipments of potato products are made 2 per week
  per Cracker Barrel store.
• The distribution channel for shipping potatoes to
  Cracker Barrel.
• PFG uses England Transport Co. to pick up
  supplies from Idaho Farmers Association and takes
  products to distribution centers in TN, TX, FL
  and MD.
• From PFGs distribution centers they ship the
  products with their own trucking line to the
  Cracker Barrel stores.

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Information Systems and Vendor Managed Inventory
(VMI)

• Communication with Suppliers
• PFG notifies ABC company of order quantity using
  AS400 EDI program.
• ABC Co. fills order from inventory or requests
  additional supplies from Idaho Farmers
  Organization.
• If order quantity is unavailable or stockout
  situation exists at Cracker Barrel store, ABC Co.
  must direct ship order to Cracker Barrel and
  cover expenses.

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Information Systems and Vendor Managed Inventory
(VMI)

• Communication with Cracker Barrel
• PFG uses VMI to evaluate and forecast inventory
  levels.
• PFG has a record of volume which gives a history
  of each product.
• VMI provides PFG with information on current
  quantity of potatoes at individual Cracker
  Barrels, as well as serving amounts.
• PFG is able to tell Cracker Barrel what they can
  supply and at what price.

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References

• Idaho Potato Commision
• http//www.idahopotato.com/index.php
• EFS Network
• http//www.efsnetwork.com/
• Efficient Foodservice Response
• http//www.efr-central.com/
• Cracker Barrel
• http//www.crackerbarrel.com/index.cfm
• Hoovers
• http//www.hoovers.com/performance-food-group-comp
  any/--ID__16367--/free-co-factsheet.xhtml
• Performance Food Groups
• http//www.pfgc.com/
• http//www.pfgcdc.com/index.html
• -Buyer for Perfromance Food Groups-Lester
• Mike Johnson

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The End!