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Integrated Supply Chain Solutions from Source to Distributor
CDC’s integrated services benefit all levels of the network. The benefits vary by node in the supply chain. The table and text below highlight the benefits CDC offers for various levels in the foodservice supply chain, tailored to the different needs of chains, manufacturers and vendors,
and distributors.
By far the greatest benefits of using CDC accrue to our customers: the foodservice franchisors, purchasing co-operatives, and ultimately the franchisees. Some of the primary benefits are:

Better Communications/Customer Service
With CDC as a single communication point to provide virtually any type of information to their distributors, our customers can make change requests and have them implemented throughout the supply chain as needed.

Vital Data Transparency
A key benefit of using CDC is the unusual level of transparency into virtually all aspects of the supply chain handled by CDC. Customers can view all inventory levels, open purchase orders, open sales orders, and review distributor purchase history. Customers can run customized reports of their CDC’s business such as purchase history by item, shipment quantities and dates by item. This real-time access to current and historical information provides for unique supply chain management options as well as complete audit capabilities for all product movement.

Supply Chain Management and Inventory Control
By providing transparency into inventory levels throughout the system, CDC can assist customers in better managing overall inventory levels and associated working capital costs, while also reducing out-of-stocks and improving store-level service.

Significant Reduction of Costs
The obvious benefit of reducing excess inventory is cost savings, but other savings mechanisms such as freight consolidation (both inbound and outbound) and volume purchasing by CDC can reduce the landed cost of products at the store level.

Compliance and Contingency Management
Given the heightened importance of traceability and control systems, CDC’s tracking systems will assure compliance with required brand and product specifications as well as providing comprehensive audit and product tracking capability to support routine distribution needs, disaster recovery and recall operations.

Promotions Management/Improved Store Product Support
CDC manages promotions, Limited Time (LTO) and Regional Menu Offerings (RMO), helping control costs and efficiencies for customers offering a larger variety of specialty items at competitive prices. New product introductions and changes to existing programs can be seamlessly accomplished throughout the supply chain in an expedited fashion by using CDC. This dramatically increases the ease of new product introduction, phase-in, phase-out, product allocation and inventory management. Our customers are constantly seeking ways to enhance store profitability by introducing new products and services. These offers, while providing upside margin opportunities, also can undermine efficiency in operations and result in increased costs. CDC’s services improve on product support to enhance promotions efficiency and profitability at the store level.

Enhanced Supplier Negotiations
Utilizing CDC gives our customers the opportunity to consolidate volumes and purchasing programs. This effectively allows customers to eliminate minimum-order challenges and gain greater purchasing power with suppliers where standalone chain volume is limited. These purchasing programs allow our customers to lower their landed cost to their restaurants.

Enhanced Distributor Management
A key benefit of using CDC is better efficiencies with distributors. Together with the distributor, CDC works to lower the total landed cost of all products to the stores. Aside from the obvious economic benefits of consolidating truckloads of products to reduce costs, CDC provides the distributor with ordering efficiencies, lower administrative costs, improved inventory turns, reduced out-of-stocks, and reduced inventory investments. CDC is also able to manage inventory levels for special promotions and allocate these products to geographic regions as defined by our customers.

Business Interruption Recovery Plan
Extreme or unusual business situations, such as national or regional natural disasters, labor strikes or distributor/vendor problems, can have a severe impact on their entire supply chain system. CDC has the resources and proven ability to handle and to react immediately to such situations, so that our customers have rapid replenishment and allocation of stock needed by a new or existing distributor.

CDC also provides a wide number of benefits to foodservice manufacturers and vendors:

Customer Service, Communications, and Responsiveness
By having a single "ship to" customer, CDC provides for greatly enhanced communication and transfer of key transactional data. CDC essentially acts as the manufacturers’ captive distributor allowing them to better service the customer through our distribution expertise. Manufacturers frequently tell us that using CDC significantly improves their ability to service their customers.

Vital Data Transparency
In addition to the obvious benefits of data transparency to management, using CDC to order in predictable patterns can enhance the ability of manufacturers to schedule production, which is particularly valuable in this era of just-in-time production.

Inventory Management
By shifting the need to carry on-hand product requirements to meet last-minute orders, manufacturers can reduce the level of inventory they must carry, as well as, reduce the risk of inventory buy-backs due to over production and excess shipments to individual distribution locations.

Significant Reduction of Costs
As for foodservice chains, using CDC can result in reduced administrative costs for manufacturers: one vendor, one purchase order, and one truckload destination results in reduced logistics costs. CDC provides manufacturers assured national distribution capability at competitive prices, and with a strong track record of paying vendors in a timely manner lowers their receivables and credit risks.

Compliance
The recent environment of high sensitivity to food chain traceability has resulted in greater manufacturer efforts to assure product tracking and regulatory compliance. CDC's systems lower the cost of product recalls by providing data transparency at a level that provides the necessary tools to focus only on the information pertinent to the customer involved.

New Product Launches
CDC can provide excellent information on new-product movement by distributor to track the performance of these launches and ensure responsive action to the changing requirements and possible allocation of products to distributors.

CDC also provides a wide range of benefits to foodservice distributors:

Distributor Communications & Responsiveness
CDC can provide improved communication of pricing, orders, and promotional information. Because distributors have a single point of communication for pricing, change requests, order placement, and promotional information, they can react to foodservice chain change requests more quickly and efficiently.

Distributor Inventory Management
CDC allows distributors to reduce their entire supply chain inventory. Distributors are able to purchase items on an as-needed basis rather than trying to reach purchasing brackets or transportation minimums. This helps avoid out of balance orders and the need for excessive storage, and results in increased inventory turns, reduced out-of-stocks, and improved responsiveness and availability of inventory.

Elimination of Costs
Using CDC results in reduced administrative costs, because there is one vendor and one purchase order. Most distributors are able to reduce the number of purchase orders generated by approximately 55% and reduce LTL receipts proportionately. This results in reduced receiving costs, inventory carrying costs, minimum-requirement orders, and working capital needs.

Enhanced Store Level Support
Distributors are able to provide direct cost savings to their store level customers due to the pricing and logistics savings that CDC provides.

Business Interruption Recovery Plan
As distributors expand their operations or open temporary ones during extreme business situations, such as natural disasters or labor strikes, etc., CDC has the resources to react immediately to rapidly replenish a new warehouse.

 

Benefit of Utilizing CDC Foodservice Chains Suppliers Foodservice Distributors
Better Communications/
Customer Service
X X X
Data Transparency X X X
Supply Chain Management &
Inventory Control
X X X
Significant Reduction of Costs X X X
Compliance & Contingency Management X X X
Promotions: New Product/Service Introduction Support X X X
Improved Store Product Support X   X
Enhanced Vendor Negotiations X    
Enhanced Distributor Management X    
Business Interruption Recovery Program – Catastrophe Related X   X

 

 

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