2. Forecasting for the Procurement of Foods

3. Training Basic foundation for forecasting the procurement of foods
Intro
Basic foundation for forecasting the procurement of foods
Presentation does not include regulations
Bike rack
Ground rules

4. Training Overview Stakeholders Menus
Intro
Stakeholders
Menus
Inventory, Product Movement, and Cost Management
Product Categories
Product Screening
Product Specifications
Child Nutrition (CN) Label Products
Forecasting

5. Comfort Level
Intro

6. Pre-Assessment
Intro
Place an identifier on the top right corner of the handout.
The same identifier will be used at the conclusion of the training on the post- assessment.
Handout: Pre-Assessment

7. Icebreaker
Intro
What would you like learn about forecasting the procurement of foods?

8. USDA Professional Standards and Learning Objectives
Intro
Handout: USDA Professional Standards and Learning Objectives

9. Terms and Definitions Serve as a reference Intro
Handout: Terms and Definitions

10. Planning
Intro
Taking a systematic approach before releasing the solicitation
What are some factors that contribute to the successful forecasting for the procurement of foods?

11. School Nutrition Supply Chain
Intro
SFA staff
State agency
Distributor
Broker
Manufacturer
USDA

12. Stakeholders Specific role Basic knowledge of the other’s operation
Lesson 1
Specific role
Basic knowledge of the other’s operation
Steadfast approach in same goal providing a healthy school environment
Handout: Stakeholders’ Responsibility
Handout: Stakeholders’ Tasks

13. Lead Time
Lesson 1
Amount of time necessary to prepare for delivery of product to the district
Complexity of the solicitation requirements
Time needed for pre-solicitation, award meetings, and site visits
State and district’s requirement

14. Receiving a Product Advanced, detailed planning
Lesson 1
Advanced, detailed planning
More cost effective price
Fewer menu shortages, purchasing and delivery errors, and problems to manage
Handout: Lead Time
Activity: Receiving Product
Handout: Procuring Timeline Example

15. Menu Begins the procurement process Must meet all federal guidelines
Lesson 2
Begins the procurement process
Must meet all federal guidelines
Provide variety of shapes, textures, colors, temperatures, flavors
Consider equipment, food cost, skill level, cultural foods, labor cost, environmental friendliness, USDA Foods

16. Using Common Denominator Units When Listing Products
Lesson 2
Cases
Count
Pounds
Edible serving size
CN label (e.g., 2 oz. meat/meat alternate product)

17. Food Buying Guide
Lesson 2

18. As Purchased (AP) and Edible Portion (EP)
Lesson 2
AP: weight of the product as it exists when purchased
EP: part of the product that can be consumed
AP weight is greater than the EP weight

19. Unit of Measurement and Cost per Serving
Lesson 2
Give careful consideration in the awarding of product
Product and pack size essential

20. Updating Quantities Accurate Up-to-date Valid Lesson 2
Activity: Purchasing Decisions

21. Recipes Standardized recipes are required
Lesson 2
Standardized recipes are required
Tested, produces the same results and yield
Determines the type and quantity to purchase
Handout: USDA Foods Product Information Sheet
Activity: Recipe Calculations

22. Stock Keeping Units (SKUs)/Product Codes
Lesson 2
A unique identifier for each unit of product
Often the product code number

23. Reducing SKUs Using the same product for more than one menu item
Lesson 2
Using the same product for more than one menu item
Allowing only substitutions that have been approved by the person responsible for purchasing
Activity: SKUs Diced Chicken

24. Inventory Management Manage inventory efficiently is crucial
Lesson 3
Manage inventory efficiently is crucial
Increased food and labor costs can occur with erratic orders
Maintain balance between inventory and receiving food
Control cost while meeting needs of organization

25. Inventory Know the value of food and supplies
Lesson 3
Know the value of food and supplies
Effective receiving procedures
System of accounting for items removed from inventory
Effective counting of items in stock
Calculate the financial value of the inventory

26. Inventory Tracking Automated system Assist with forecasting
Lesson 3
Automated system
Assist with forecasting
Reduced inventory, labor cost, and paperwork

27. Par Stock Predetermined inventory quantity for a particular item
Lesson 3
Predetermined inventory quantity for a particular item
Serves as an indicator on when to reorder the product
Activity: Par Stock Calculation Worksheet

28. Receiving Food Inventory management Quality control Cost control
Lesson 3
Inventory management
Quality control
Cost control
Monitoring contract performance –
2 CFR (b)
Handout: Ordering and Receiving Guide of Approved Products (Example)

29. Product Categories Distributor’s Choice Label Private Label
Lesson 4
Distributor’s Choice Label
Private Label
Manufacturer’s Brand Label
Activity: Product Categories Worksheet

30. Screening Products Provide a list of preapproved, equal product brands
Lesson 5
Provide a list of preapproved, equal product brands
Forbid specifying only a brand name product (federal regulation)
Must allow a preapproved equal product to be offered
Handout: Product Screening Chart

31. Sample Screening Evaluation Tool
Lesson 5
Paper screening
Appearance screening
Taste screening
Activity: Pasta Primavera Screening Evaluation Tool

32. Product Specifications
Lesson 6
A set of requirements to be satisfied by a product, material, and/or process
Not overly restrictive
Handout: Product Description Summary Chart
Activity: Mock Bean Burrito Product Description

33. Child Nutrition (CN) Labeling Program
Lesson 7
Option to include a standardized food crediting statement on product label
Authorized by USDA
Requires an evaluation of a product’s formulation by FNS

34. CN Label Identifies contribution toward the meal pattern requirements
Lesson 7
Identifies contribution toward the meal pattern requirements
Serves as protection from claims
Provides warranty against audit claims
Simplifies cost comparison of similar products
Handout: Sample CN Label

35. Forecasting
Lesson 8
Analyzes current and historical data to accurately determine future trends
Estimates the goods, products, and/or services needed
Helps to maximize the use of products

36. Average Daily Participation (ADP)
Lesson 8
Number of students that participate in the school meals program per day

37. Strengthening Bid Integrity
Lesson 8
Develop good forecasts
Ensure quantities are accurate

38. Sample Velocity Report
Lesson 8
Provides quantity, date of purchase, and other information about each item received
Is a tool for SFA staff to use when forecasting
Activity: Forecasting

39. Forecasting is a Process
Lesson 8
Average Daily Participation (ADP)
Velocity reports
USDA Foods Availability

40. USDA Foods Ready-to-use processed end-products
Lesson 8
Ready-to-use processed end-products
May be a cost saving for high quality products
Check with State food distribution agency before entering into a contract
Clarify state procurement procedures to determine a competitive process

41. Forecasting—Past, Present, and Future
Lesson 8
Handout: Forecasting Questions
Handout: Forecasting Good Practices

42. Conclusion Stakeholders Menu
Lesson 8
Stakeholders
Menu
Inventory, Product Movement, and Cost Management
Product Categories
Product Screening
Product Specifications
Child Nutrition (CN) Label Program
Forecasting
Activity: Take Home Messages

43. Thank You Post-Assessment Evaluations
Activity: Post-Assessment and Evaluation