Mark Coulton CPM, MCFE International Supply Chain Logistics Latin America / Caribbean Region.

Aruba, Curacao, Freeport, Nassau, Grand Cayman, USVI, Puerto Rico, Dominican Republic, Jamaica, Guatemala, Honduras, El Salvador, Panama, Costa Rica, Venezuela, Mexico, Trinidad, Argentina and Ecuador, Chile, Brazil, Colombia, Peru and Nicaragua

What is Supply Chain Management?

What is International Supply Chain Management?

PriceProductPromotionPlace

Price Product Promotion PlacePERFORMANCEPEOPLE

PRICE PRODUCT PROMOTION PLACE PERFORMANCE PEOPLE

PARTNERSHIP…WHAT IT TAKES TO GET IT DONE!

What do we look at and for…

Food Cost Mgmt. Suppliers / Plants DC’s and Freight

Forwarders

Do we really see what we are looking at?

Do we really understand what we see?

Do we do the math?

Does it make sense (cents)?

Managing your own costs… Theoretical vs. Actual Food

Cost P&L (distribution, freight,

duties) Operational cost controls…

Waste, yields, portion control, inventory controls

Goals and Objectives… Lower your distribution

costs...◦ Freight, duties, taxes?◦ Shipping, handling?◦ Inventory turnover?◦ Ordering cycles? FIFO, LIFO, FISH

Improve the product cost…◦ In-Country (local production)

Raw materials?Ingredients, Specifications?Formulations?

...DOMESTICALLY…(when importing from the USA)

◦ Savings are passed on◦ Volume helps pricing

market commoditiesseasonality index

During LAC Market Visits…◦Meet with Key Suppliers Leverage local and imported raw

materials / ingredients Implement cost driven indicators Re-negotiate prices Leverage volumes where applicable

During those in-Country Supplier Visits…The intention is to:

◦Drive down costs !!!◦Protect and uphold the Brand Image

◦Enhance the product quality

...GOALS…...GOALS…

REDUCE COSTSREDUCE COSTS

OPTIMIZE PROFITABILITYOPTIMIZE

PROFITABILITY

One fast way to INCREASE your profits is…

Manage your credit terms with the DC’s

This = PROFITS $$$

Container Value

46 - 60 Days 12%

31 - 45 Days 8.5%

SAVINGS per load

SAVINGS per year

30 Days 6.5%

SAVINGS per load

SAVINGS per year

Cash in Advance

4.5% SAVINGS per load

SAVINGS per year

40,000$ 44,800$ 43,400$ 1,400$ 16,800$ 42,600$ 2,200$ 26,400$ 41,800$ 3,000$ 36,000$

WHAT DOES IT MEAN…? Getting the right product there At the right time At the right price All the time….

MISSION STATEMENT: To ensure International delivery of

products that meet or exceed high quality standards, while achieving realistic food costs.

THE BEST POSSIBLE PRODUCT AT THE LOWEST POSSIBLE PRICE!

MORE SIMPLY SAID…

Do it! Do it Right !! Do it Right Now

!!!

Make It Happen !!!

Intelligent people who are CEO’s or General Counsels of their companies have been know to say the most surprising things over the years…

WHAT ARE YOR THOUGHTS ABOUT THESE COMMENTS?

1.  It is ok to bring in up to $100 worth of Cuban cigars into the United States.

2.  Dietary supplements that are "all natural" are not regulated by the U.S. Food and Drug Administration (FDA), and, therefore, can make all kinds of medical claims.

3.  The U.S. Government does not care about the value of cargo being exported from the United States because there are no duties, taxes or fees paid to the U.S. Government on exports. 4.  If an airlines passenger brings into the United States over $10,000 in cash, the passenger must pay a tax to U.S. Customs or the IRS. 5.  If an importer uses a customs broker to file an entry with U.S. Customs and Border Protection, and some false information is provided to U.S. Customs, only the customs broker is liable to U.S. Customs, not the importer.

6.  No one gets hurt by importing, buying and selling counterfeit merchandise. 7.  If some food product is marked with "Made in America" it must be good, but if it is marked "Made in China" then it must be bad. 8.  If an imported item is marked "Made in Vietnam" or "Made in Malaysia" or "Made in America" then if really must have been manufactured or produced in the identified country, and no other.

9. Since it is illegal to sell military items to places such as North Korea and Iran, if a U.S. company ships those items to a friendly country such as Australia or England, and the buyer in those countries then re-export them to North Korea or Iran, the U.S. company has done nothing wrong.

10.  A product manufactured in India, transported to Mexico, and then imported into the United States from Mexico should enter duty free under NAFTA because Mexico and the United States are members of the North American Free Trade Agreement (NAFTA).