effectively managing the seasonality in supply while ... · • web portal, transportation...
TRANSCRIPT
"Effectively managing the seasonality in supply whileensuring the year-round delivery of fresh, high-quality
products to customers in North America and overseas "
BC Supply Chain Council
October 18, 2007
BC Hot House Foods Inc. is a collection of growers of premiumgreenhouse produced Tomatoes, Long English Cucumbers and BellPeppers
Our products are grown in indoors, hydroponically, in climatecontrolled greenhouses, under natural sunlight and using no soil
BC Hot House Foods Inc. is a leading North American companythat delivers a full line of greenhouse products across North America,Japan, Hong Kong, and Taiwan.
BC Hot House Foods
“Our growers make uswho we are”
British Columbia
We have 27 active growers growing at35 different sites
There are 5 distinct geographical areasall with unique microclimates:
Delta
Maple Ridge
Abbotsford
Hazelmere Valley
Vancouver Island
The Produce We Grow
• Beefsteak Tomato
• Tomato on the Vine
• Roma Tomato
• Campari Tomato
• Cherry Tomato
• Pepper (Sweetooth) ®
Our growers specialize in a full variety of premium greenhouse
grown products including:
• Red Bell Pepper
• Orange Bell Pepper
• Yellow Bell Pepper
• Green Bell Pepper
• Long English Cucumber
• Mini Cucumber (Taste Buddies) ®
BC Hot House Products
“Why is BC Hot House produce so perfect?”
BC Hot House greenhouses are like exclusive high tech spasfor plants. (natural sunlight, proper temperature, ventilation, plantnutrition, carbon dioxide)
all product is handpicked when the product is ripened to thegrower & customer’s specifications
Pest Control
“We use good bugs as natural pest control”
BC Hot House is a world leader in Integrated Pest Management Technology.for example:
▫We use lady bugs for control, and believe us…she is no lady! She has a bigappetite for eating pests that threaten our produce.
▫We also use eggplants and rye grass to detract the “bad bugs” from theproduce plants
▫ Bumble Bees are also introduced into the greenhouse to ensure properpollination of the plants
Quality Assurance
At BC Hot House, our focus on food safety standards ensure thatour customers receive safe & fresh produce items.
From the day the seed is planted, our Quality Assurance teamconfirms that we not only meet, but exceed industry standards in foodsafety, grade specifications, and product consistency.
Our efforts include:
▫ Daily Quality Assurance Checks
▫ GFTC Certified Audits
▫ PRIMUS Certified Audits
▫ Shelf Life Testing
Any Questions so far…
Our Season
• Traditionally runs April to November(and year round supply since 2003)
• The Marketplace now demands consistentsupply & buying contracts (Wal-Mart, Costco)
• Prices improve in the Fall & Spring as northernsupply dwindles (or is about to begin)
• ‘Pan American Foods’ seen as a strategic moveto this end
Our Supply
• 70% of Total Sales to the U.S.
• 30% of Produced Cases is ‘Value Added’
• 35% of product is sold on ‘Contract’
• 60% BC
• 125 Acres (CDA)
• 5 Million Cases
• 40% Mexico
• 80 Acres (MX)
• 3.5 Million Cases
Our Supply Chain
• Grower Forecast is received via “Web Portal”
• Grower delivers product to Chilled DC’s
• QA, Inventory Control (pick, pack & ship)
• Carry 14 Day Saleable Inventory (150 active sku’s)
• 4th morning delivery to all points NA
• ‘Forward Distribution’ points enhance deliverycapabilities
Our Technology
• Epicor (ERP)
• Web Portal, Transportation Schedule,Maddocks Dispatch, Freight Interface
• Digital Dashboard, Cognos Sales Program
• GSS, VA Work Order Management
• RF Capability
Our Logistics
• $8 - $10 Million Freight Spend contracted out(we operate as an internal 3 PL)
• C-TPAT, PIP, FDA, USDA compliant
• Use of Expedited Team Service (+1000 miles)
• Air Freight Forwarding to Orient (Taiwan, HK, Japan)
• Cold Chain, Truck Utilization, $ per Case
Our Logistics
• FDA Releases, USDA Inspections, CBPsearch
• Interactive Customs Brokerage
• QC Standards by consignee
• On-Time Performance, i-trade, One Network
• Inventory Transfers between DC’s
• In / Out Logistics (Timing, Cost, Capacity Utilization)
Our Costs
• Commission based Overheads (supply driven)
• ‘In / Out’ Fees offsets Variable Labor &Occupancy Costs
• Average Freight Spend of approx. $1.00 / case
• Consistency of ‘Value Added’ Pack Costs
• Cost Reductions to enhance Grower Return
Our Challenges
• Marketing de-regulation means more SalesAgencies (a benefit to the buyers)
• Increased Greenhouse-grown Supplycontributes to dwindling profits for growers
• Mexico becoming more of a factor!
• Canada / US Foreign Exchange
• Growers begin to think …The Grass is Greener…
Our Opportunities
• Free-Market Performance to be had…
• Sales Experience & Selling Acumen
• Versatile Logistics and Internal CostRe-Structuring
• North American Compliance requirementsenhance internal disciplines
• Supply Sharing Advocacy…
Integration to Pan-American
• May 2007 – BC Hot House Foods merges withGPC to form Pan American Foods
• Dominance of the BCHH Logo
• ‘Virtual Sales Desk’ of Shared Supply is set up
• Add Two Major ‘Ports of Entry’ from MX to the US
• Combined Freight movements / cloned ERP
• Increased “Forward Distribution” points
Seattle, WA
Surrey, BC Canada
Nogales, AZ
Los Angeles, CAAvondale, PA
McAllen, TX
Atlanta, GA
Vero Beach, FL
Our Issues
• Consistent Delivery of Quality Assurance
• ERP System Usage & Compliance
• Distribution Processes & Inventory Control
• Human Resource Skill Sets
• ‘Shoulder Season’ Logistics
• Consistent Grower Communication
Our Successes
• Seamless Integration Executed (May 07)
• Solid FOB’s despite the state of the industry
• Freight Cost stabilization despite themileage increase
• Continued shift toward Variable Cost Model
• Enhanced Vendor relations relative to Scale
Our Future
• Growth & Niche
• Further Leveraged Buying Power
• We Provide the Perennial “Greener Grass”
• Deliver Superior Grower Returns
• ‘Organics’ begin to complement ourmain Product offerings
Thank-You for your Time Today
Regards,
Grant Harris