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HMSHost Confidential Information - Do Not Distribute 1 Centralized Distribution Solutions 2007 ACI-NA Concession Conference Presented By Dan Bent HMSHost.

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Presentation on theme: "HMSHost Confidential Information - Do Not Distribute 1 Centralized Distribution Solutions 2007 ACI-NA Concession Conference Presented By Dan Bent HMSHost."— Presentation transcript:

1 HMSHost Confidential Information - Do Not Distribute 1 Centralized Distribution Solutions 2007 ACI-NA Concession Conference Presented By Dan Bent HMSHost

2 HMSHost Confidential Information - Do Not Distribute 2 Topics  Internal Distribution Challenges  Critical components  Differences in an airport environment  Models In Use  Direct  Cross-Docking  Redistribution  3 rd Party (Cross-docking and/or redistribution)  Strategies To Ensure Success

3 HMSHost Confidential Information - Do Not Distribute 3 Components Of Internal Distribution Development Ordering Receiving HAACP Cross Contamination Temperature/ Time Control Pars Distributors Manufacturers Cold Chain Chain Of Control Tailgate Delivery Credit Memos Inspecting Inventory Terminal Storage Space Quality/ Freshness Cross Docking Commissary Labeling/ Nutritionals Substitutions Fill Rates Delivery Window Recalls Returns InvoiceRequisition Picking Ticket Recovery Drops Hot Shot Deliveries In-Store Delivery Concealed Damage Bonded Facilities Purchase Order Bill Of Lading ServSafe Certification Time-sensitive Deliveries Redistribution Production Space Shrink/Loss Prevention Product Tampering

4 HMSHost Confidential Information - Do Not Distribute 4 Key Differences In Airport Environment  Security Requirements  Key Drop Deliveries Not Allowed  Background Checks/Badging  Importance Of Chain Of Control  Significant Space Constraints  Volumes Much Greater Than Streetside Operations  Remote Production Needs Due To Limited Concourse Space

5 HMSHost Confidential Information - Do Not Distribute 5 Internal Logistics Process - Direct Delivery In Direct Delivery, the commissary or store:  Places order with the vendor.  Order is delivered directly to the store.  Store inspects, receives and stores the products.  Store makes any adjustments to invoices and sends invoices to accounting for processing.

6 HMSHost Confidential Information - Do Not Distribute 6 Internal Logistics Process - Cross Docking In Cross Docking, the commissary is a “Pass Through.”  Commissary or store places order.  Order is delivered on pallets to the commissary.  Commissary inspects fresh perishable items & spot-checks rest of the order (e.g., temperature, counts) and then sends to store.  Receiving associate at store checks in delivery.  Store manager makes any adjustments to invoices and sends to accounting for processing.

7 HMSHost Confidential Information - Do Not Distribute 7 Internal Logistics Process – Redistribution In Redistribution, the store places orders with commissary using a Requisition Form.  Commissary orders from vendors.  Commissary inspects, receives and stores products.  Commissary makes any adjustments to invoices and sends invoices to accounting for processing.  Upon receiving a Requisition from a store, commissary picks, packs, and delivers the products to the store.

8 HMSHost Confidential Information - Do Not Distribute 8 Internal Logistics Process – 3 rd Party In 3rd Party, the store places orders and a 3 rd Party receives them and either cross docks (most common) or redistributes.  Commissary or store places order.  Commissary or store provides documentation of order to 3 rd Party.  3 rd Party inspects fresh perishable items & spot- checks rest of the order (e.g., temperature, counts).  3 rd Party may X-ray product if have equipment.  3 rd Party delivers the products to tenants’ commissary and/or stores.

9 HMSHost Confidential Information - Do Not Distribute 9 Each Model Contains Trade Offs Direct Delivery Pros -Efficient labor -Less handling -Relationship with distributor Cons -Excess inventory - Not adequate concourse storage space Redistribution Pros -Greatest control -Improved buying Cons -More labor than direct or cross-docking 3 rd Party Cross Docking Pros -Less trucks on tarmacs Cons - Quality Assurance issues -Additional layer/costs Pros -Centralized receiving Cons - Excess inventory - Not adequate concourse storage space

10 HMSHost Confidential Information - Do Not Distribute 10 Optimal Model Dependent On Airport Different models help meet the unique needs of the airports - any model (or hybrid) can act as a “Central Distribution Solution”  Assign central responsibility  Implement clear processes  Centralize expertise for QA and par management

11 HMSHost Confidential Information - Do Not Distribute 11 Strategies To Ensure Success Development  Make Quality Assurance Job #1 Inspect product Maintain the cold chain Designate a centralized resource  Proactively Manage Your Vendors Understand brand requirements (may vary) Monitor and document (e.g., fill rates, etc…) Create a regular dialogue  Process Makes Perfect Develop, document, train & inspect standards Become a Learning Organization (e.g., HMSHost has Commissary Group from branches meet on best practices).


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