mike birkmeyer section chief, food distribution maryland ... · spend time to learn all options for...

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ANNUAL NATIONAL CONFERENCE SALT LAKE CITY, UTAH JULY 12-15, 2015

Explore. Discover. Inspire.

Processor Inventory Management: Truth or Consequences

Mike Birkmeyer Section Chief, Food Distribution Maryland State Department of Education Co Chair ACDA Processing Committee ACDA Mid Atlantic Region Representative

OBJECTIVES

Why Inventory Management is Important Different Perspectives of Inventory

Management Methods To Improve Your Inventory

Management Learn Something New


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SUCCESSFUL USDA FOODS PROCESSING

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PROCESSOR APPROVAL

Must Be NPA if Qualified School Requested Must Prove Demand


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STATE PARTICIPATION AGREEMENT

Rolling Five Years Year Round Includes Delivery Location


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SEPDS

Summary End Product Data Schedules USDA Foods Recipe Do Not Edit


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AVAILABILITY

Approved Processor List Delivery Location List WBSCM MARS


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5004690 Mickeys Pizza

5002260 McCain Bulk White Potatoes

5002678 McCain Bulk Sweet Potatoes

5001283 Michael Foods

5000538 Nardone

5003777 Peterson Farms Bulk Apples

5002593 Red Gold

5002745 Richs 100042 Mozzarella

5003110 Richs 100912 Flour

5004599 Richs 100193 Pork

5001783 Schmidts

5001722 Schwans

5004333 Schwans 100113 Chicken Only

5001599 S & A Piazza

5001916 Silver Spring

5004361 Tasty Brands All Cheese

5004380 Tasty Brands Turkey Only

5003258 Trident

5002669 Tyson 100155 Only

5003071 Tyson 100100 Only

5001740 Tyson 100103 Only Cop

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EDUCATE

Constant Communication LEA Meetings Food Shows Brokers and Salespeople


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STATE ACCOUNT

Truck Fills and Shortages Inventory Management Sales Tool


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TRANSFERS

Allow Mainly Due To Bid Changes Under Ten Per Year


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JULY/AUGUST

Reconcile Year End MPRs Adjust Order Delivery Times Reallocate Carryover Inventory


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CARRYOVER INVENTORY

Schools Can Carry Over Usage For Year Minus What Diverted Current Year SY15 Usage 100,000lbs SY16 Diverted 42,000lbs Maximum Carryover 58,000lbs Excess Moved To State Account


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CARRYOVER INVENTORY

Eliminate Negative Balances Notify Schools, Brokers, Processors Carryover Inventory ENTITLEMENT FREE


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WBSCM CARRY TOTAL USEAGE USEAGE USEAGE USAGECheese Processor SY16 REQUISTION OVER ALLOCATION CURRENT 110244 AMOUNT INVENTORY July August September June BALANCE

Anne Arundel 123,375.00 18,000.00 141,375.00 141,375.00Baltimore City 82250.00 3,500.00 85,750.00 85,750.00Baltimore County 112813.00 22,000.00 134,813.00 134,813.00Caroline 10125.00 500.00 10,625.00 10,625.00 Carroll 4000.00 4,000.00 4,000.00 Charles 20000.00 20,000.00 20,000.00Dorchester 3000.00 3,000.00 3,000.00Howard 71688.00 16,000.00 87,688.00 87,688.00 Kent 4500.00 4,500.00 4,500.00Prince Georges 389501.00 100,000.00 489,501.00 489,501.00Somerset 11000 11,000.00 11,000.00

St. Mary's 24000 24,000.00 24,000.00Talbot 10248 250.00 10,498.00 10,498.00Wicomico 5000 5,000.00 5,000.00Worcester 6500 6,500.00 6,500.00MSDE 26750 36,000.00 62,750.00 62,750.00 Totals 904,750.00 196,250.00 1,101,000.00 1,101,000.00

WBSCM CARRY TOTAL USEAGE USEAGE USEAGE USAGECheese Processor SY16 REQUISTION OVER ALLOCATION CURRENT 110244 AMOUNT INVENTORY July August September June BALANCE

Anne Arundel 123,375.00 18,000.00 141,375.00 (5,000.00) (12,000.00) 124,375.00Baltimore City 82250.00 3,500.00 85,750.00 85,750.00Baltimore County 112813.00 22,000.00 134,813.00 134,813.00Caroline 10125.00 500.00 10,625.00 10,625.00 Carroll 4000.00 4,000.00 (1,000.00) (500.00) (500.00) 2,000.00 Charles 20000.00 20,000.00 20,000.00Dorchester 3000.00 3,000.00 (3,000.00) 0.00Howard 71688.00 16,000.00 87,688.00 87,688.00 Kent 4500.00 4,500.00 4,500.00Prince Georges 389501.00 100,000.00 489,501.00 (42,000.00) 447,501.00Somerset 11000 11,000.00 11,000.00

St. Mary's 24000 24,000.00 (5,000.00) (5,000.00) 14,000.00Talbot 10248 250.00 10,498.00 10,498.00Wicomico 5000 5,000.00 5,000.00Worcester 6500 6,500.00 (400.00) (400.00) (400.00) 5,300.00MSDE 26750 36,000.00 62,750.00 62,750.00 Totals 904,750.00 196,250.00 1,101,000.00 1,025,800.00

OCTOBER

Meal/Entitlement Reconciliation Adjust Orders If Necessary Monitor School Inventory Levels MSNA Show


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DECEMBER

State Processing Show Training Monitor School Inventory Levels Adjust Orders If Necessary


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JANUARY/FEBRUARY

Filter and Open Catalogs Add and Revise Delivery Locations Monitor School Inventory Levels Last Chance to Adjust Orders


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MARCH

Consolidate Requisitions Submit Orders to USDA Spread Orders Over Year Monitor School Inventory Levels


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APRIL/MAY

Failed Transactions Monitor School Inventory Levels Internal Transfers School Resource


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Shelly Copeland Director of Child Nutrition Spring Independent School District, Texas ACDA School Recipient Agency Representative


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USDA Entitlement – Develop Your Plan • USDA Foods • Processing • DOD • Farm to School • Fresh Fruit & Veg • Direct Ship • Cooperatives • Availability of Product


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Menu Development • Drives Your Budget • Drives Your Use of USDA Foods • Selection of Items • Commit Your Entitlement

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Implement Your Plan • Selection of Processors/Products • Commodity Calculators • Brokers/Manufacturers • Minimize Processors and Products • Consider the Time-line

PROCESSOR INVENTORY MANAGEMENT: TRUTH OR CONSEQUENCES

USE AND TRACK YOUR INVENTORY

K-12 Services Usage Balances Reports

ProcessorLink Usage Balances Reports

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Carry-over Inventory Plan for Usage Brokers / Processors


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Cliff Meyers K12 Services, Inc. ACDA Associate Board Representative

SUCCESSFUL USDA FOODS PROCESSING

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Why Is Excess Inventory An Issue? For Processors:

Cost of carrying physical or book inventory, bond. For Schools:

No impact on operational food cost. No benefit. Harder to campaign for additional funds for the program

if all currently available funds are not being utilized. For States:

More funds that need to find an outlet. Conclusion: No benefit to excess inventory.

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What Contributes to Excess Inventory? Inaccurate diversion calculations. Lack of priority given to entitlement use. Volatile markets causing USDA values to fluctuate greatly

resulting in commercial choices over commodity. Competing interests within commercial distribution. Lack of understanding/knowledge. Customers not using manufacturer provided tools to

manage their performance.

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What Is Being Done To Address Excess Inventory? USDA is holding States accountable for inventory. States are adjusting future diversions downward based on

projected carry over. Customers are being asked for PO’s or commitments of

purchase. Driven by need to reduce inventory. Industry working with USDA to increase

interchangeability of commercially available foods with traditional commodity foods. Increase access for customer.

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How Can You Help? Write menus, then integrate USDA Foods into those proven

menus. Do not divert on speculation. Spend time to learn all options for processing in your State.

Learn policies on carry over and excess inventory so that your planned entitlement use is not affected.

Spend time to develop accurate diversion requests. Monitor your performance throughout the year. Adjust as

needed. Ask for help if you have questions!

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Contact Us! Mike Birkmeyer:

[email protected] Shelly Copeland:

[email protected] Cliff Meyers:

[email protected]

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mailto:[email protected]



THANK YOU!

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mike birkmeyer section chief, food distribution maryland ... · spend time to learn all options for...

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