SYSCO operations

The review of any year should always begin with the recognition that our performance is a credit to our 46,000 associates, who are attuned to every detail, quick to respond to customers needs and make our success possible. Through their combined efforts we have forged a network of customers, SYSCO operations and suppliers that has proved mutually beneficial and sustainable over the long term. In our industry, it is the attention to every... 

Sysco, based in Houston, Texas, is the largest food marketing and distribution company in North America. SYSCO sells annually over 30 billion of food, related products, and services to over 400,000 customers through 157 separate profit centers which employ in total 46,000 employees. The magnitude of SYSCO s operations is mind-boggling. It sells over 300,000 products to over 400,000 customers and on a daily basis delivers almost 4 million cases of food and related foodservice products to 360,000 customers, 99% on-time and defect-free. Over one-half of SYSCO s 46,000 employees are hourly warehouse and delivery people, and it employs 12,000 sales and business development employees. 

The CARES program has evolved into its second phase, /CARE. Through this initiative, marketing associates are trained to be more effective business consultants for their customers by understanding a foodservice operation s profitability model, thus enabling them to analyze and develop menus, control inventories, and provide food safety training. Through SYSCO s website, customers are able to access a variety of third-party services that can help them drive and... 

Its 157 operating units have day-to-day autonomy to operate in their market, subject to strict central financial controls and measurement. As SYSCO s president, Tom Lankford, stated, Our units have complete autonomy relating to the front-of-the house, customer-facing actions, and very little autonomy on the back of the house - financial controls, accounting, supply chain, ordering, and supplier relationships. ... 

SYSCO s entrepreneurial culture is further evidenced by the fact that six of its top seven executives are former line operators of its business units. They know the intimate details of the business operations. These executives are 90% internally and operationally focused on a daily basis. 

SYSCO s focus on its operations - the blocking and tackling of its business - is evidenced also in looking at how its CEO spends his time. Mr. Schnieders spends his time on the following company areas ... 

While SYSCO allows its 157 business units to operate the front of the house autonomously, the back of the house is centralized and controlled, with a sophisticated measurement system. 

Its emphasis on metrics is evidenced by the fact that SYSCO s top ten executive officers meet every Wednesday afternoon and review several hundred metrics for every one of the 157 operating units prior week s performance. SYSCO measures everything related to the receipt, movement, and delivery of products and services to its customers, to new business development, and to every expense and capital expenditure. It measures its return on equity on a weekly basis. 

The following statements by the CEO and president in its 2004 Annual Report summarize SYSCO s focus on operational excellence and the company s top-to-bottom focus on the details of doing business daily. 

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