The Sysco Commitment

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Maintaining Vital Services

• The Sysco Commitment

Sandra G. Carson VP Safety Crisis Management
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About Sysco Corporation

• Fortune 100 company headquartered in Houston,
  Texas
• Over 38 billion in sales in 2008
• North Americas leading marketer and distributor
  to the foodservice industry
• Over 50,000 employees in North America
• Over 170 locations in the U.S. and Canada
• Largest privately owned truck fleet in U.S. (over
  9,000)

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About Sysco Corporation

• Distribute food/kindred products to over 400,000
  customers
• where meals are prepared away from home
• restaurants, hospitals, nursing homes, schools,
  sports venues
• include Red Cross, FEMA

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Syscos Supply Chain (Farm to Fork)

• Farm
• Transportation to processer
• Processer or Manufacturer
• Inbound transportation to Sysco
• Sysco warehousing regional distribution centers
• Sysco transportation-outbound to customers
• Customers
• Delivery to end user
• Delivery Systems Ground (Truck Rail) and Air

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Core Responsibilities (moral and ethical)

• Protection of our most valuable assets
• People
• Reputation/Brand
• Safety of the general public, quality of products
• Finances
• Access to cash, facilities, equipment, inventory
• Mission of Helping our Customers Succeed
• Social Responsibility

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Core Responsibilities (regulatory compliance)

• National Response Framework
• National Infrastructure Protection Plan
• National Incident Management System
• Title lX-Private Sector Preparedness Act
• NFPA 1600-National Preparedness Standard
• Sysco is a Critical Infrastructure/Key Resource
• We have customers that are Critical
  Infrastructure

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• During the next five years, 83 percent of
  companies will face a crisis that, as a result
  of the way it was managed, will negatively
  impact share price between 20 and 30
  percent.
• Oxford Metrica

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Sysco Crisis Management

• The strategic process that helps senior
  leadership prepare for, prevent, manage, mitigate
  and recover from issues and adverse events that
  threaten our people, value, brand, finances,
  operations, business objectives and of course,
  reputation.

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Components

• Emergency Preparedness Plan (site level)
• Prevention, preparedness, response, mitigation
  and recovery
• Incident Command Structure
• Corporate level Crisis Management Support
• Tactical
• Strategic
• Ongoing enterprise-wide risk identification,
  education, auditing, testing and improvement
• A differentiator/competitive advantage

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Crisis Management

• Identifies issues, risks and vulnerabilities
• Provides a roadmap to manage a crisis
• Guides decision making at all levels of the
  organization
• Orchestrates and aligns all related incident
  response plans
• Instills confidence in stakeholders and protects
  the brand

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Other Benefits

• Increases revenue by improving operating
  efficiencies
• Reduces ineffective processes
• Breaks down silos
• Capitalizes on market share over competitors who
  cannot respond/recover as quickly
• Gets us ahead of regulatory requirements

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The Big Picture-Strategic Crisis Management

• Natural disasters
• Business continuity
• Product recall
• Supply chain disruption
• Disaster recovery
• Terrorism
• Workplace violence
• Shareholder concerns
• Humanitarian response

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Addressing Issues Before the Event

• Multiple alternative ways to address failure in
  infrastructure
• Communication, power, diesel/gas, water
• Communicate 360 (employees/suppliers/inbound
  trans/customers)
• Plans and expectations
• Work with partners to improve their preparedness
• Suppliers/Manufacturers, in-bound transportation
  and customers
• Develop/deepen partnerships with public sector

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Addressing Issues Before the Event

• Plan, Plan and Plan more be prepared to execute
  and DO IT!
• Over-Communicate
• Regularly exercise your plans
• Table-tops
• Drills
• Full Exercises
• Use lessons learned to update plans

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Addressing Issues Before the Event

• Revise plans based on business environment such
  as current recession
• Deeper contingency responses to fulfill needs
• Third party review/audit of your plans
• Learn from the past (yours and others)
• Ask and look for what you dont know

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Resources

• Best to develop these in advance of the event
• Relationships with public sector
• Networking with others in critical
  infrastructure competitors and other industries
• Professional associations
• Experts based on event-have contingency plans for
  areas outside of your core business/expertise
• Academia

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Impact of Crisis Response
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PEACE (or Preparedness?)

• It does not mean to be in a place where there is
  no noise, trouble or hard work. It means to be
  in the midst of those things and still be calm in
  your heart.