Sysco 2007 Annual Report Download - page 5

under construction in Florida should be shipping products
by the latter half of fiscal 2008, and land has been purchased
for a third facility in Indiana. Once the Florida RDC has been
completed, we expect optimal throughput to be reached
more quickly than in the first RDC. Many suppliers will be
common to both RDCs, and we plan to initiate operations
in the dry, refrigerated and freezer sections simultaneously,
rather than sequentially, as was done at the Northeast RDC.
The Transportation Management System (TMS) has been
implemented at all U.S. broadline operating companies, and
we are using this application to lower inbound freight costs.
More than half our U.S. broadline companies have been
converted to the Demand Planning and Replenishment (DPR)
system and, through its use, we are seeing improved inventory
management at those operating companies and more
accurate forecasting of customer product needs.
The Business Review process has become ingrained in
how we operate our business. It also is becoming a
significant competitive advantage for us, since the depth and
breadth of this program is difficult for competitors to replicate.
This process is completely focused on our customers and
how we can help them grow their businesses through menu
analysis, better inventory management and many other
elements that keep our customers on the success track.
We continue to see improved sales growth from customers
who have participated in a review, largely because such
reviews are a key element in minimizing lost business.
Fold-outs and acquisitions continue to be important sources
to fuel our growth. During the year, we began shipping from
our new Raleigh, NC operation and initiated construction on
fold-outs in Knoxville, TN and Longview, TX, which should
be operational in the late spring and summer of 2008,
respectively. We also acquired the foodservice division of
Bunn Capitol and folded their operations into our central
Illinois and St. Louis facilities. Over the years, acquisitions
also have broadened our geographic reach, and in July 2007
our Guest Supply subsidiary purchased Austin Tatum,
a personal care amenity company headquartered in
Hong Kong. This acquisition gives us a presence in the
international arena and allows Guest Supply to provide
better service to its U.S.-based customers that serve the
Asian hospitality market, while increasing its client base
and the breadth of product categories it sells to that
market. Our plans are to continue to pursue acquisitions,
both domestic and international, that appropriately fit our
strategic objectives.
We move into fiscal 2008 encouraged with our momentum
and the progress of our business initiatives. We are on the
growth track and appropriately managing the pace of change
to continue to build for the future. The foodservice world is a
complex, dynamic, constantly changing industry and we see
a significant amount of opportunity for SYSCO. We have the
talent, resources and initiatives to serve our customers well
and maintain our leadership position.
SYSCO Corporation><page
RICHARD J. SCHNIEDERS
Chairman and Chief Executive Officer
KENNETH F. SPITLER
President and Chief Operating Officer
September 26, 2007
(from left to right)
KENNETH F. SPITLER,President and Chief Operating Officer
RICHARD J. SCHNIEDERS,Chairman and Chief Executive Officer