Sysco's Distribution and Warehousing Efforts

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Introduction Sysco is a global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and any other customer who prepares meals away from home. Sysco currently has more than 180 locations throughout the United States, Canada and Ireland with about 400,000 customers making up their portfolio. Sysco offers a wide variety of products which range from ingredients in menu items, as well as, both preparation and serving items. From Sysco’s initial public offering (IPO) in 1970, their sales have grown from $115 million to $37 billion for the fiscal year 2010. Sysco Grand Rapids is one of the numerous Midwest offices that supply to Michigan,…show more content…
Sysco’s goal is to get inventory levels down so that the turnover rate decreases to 9 days; using their warehouse management system, Sysco sees this as a goal that is reachable in the near future. Truck drivers, as well as, warehouse workers for Sysco are also given incentives based on their performance each month. Sysco uses a lumper service to unload their inbound trucks and put the product away on the shelves. These workers are not official employees of Sysco; rather they are contracted companies that come in to unload the trucks. These companies charge the inbound truck drivers, usually not Sysco owned trucks, to unload the goods. The incentive for the employee is the more trucks and products they unload during their shift, the more money they make. Although this might lead to imperfect business practices and dangers, Sysco has put a system in place where if the person unloading damages a product, puts it in the wrong spot, or some other sort of error, Sysco will take the money they made for unloading the stop and not pay the unloaded. This helps maintain order and helps Sysco ensure the quality of the product and safety of all the workers in the warehouse. Truck drivers also receive incentives based on their performance and customer reviews. Customers are given a review each month to rate the Sysco drivers based on their customer service level and their

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