Sysco 2008 Annual Report Download - page 5

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Combined, the northeast operating
com panies being serviced by the RDC
now route approximately 40 percent of
their volume through the RDC.
The third element of the initiative is the
Demand Planning and Replenishment
System. With 72 percent of our U.S.
Broadline companies now on this system,
we can more closely forecast and manage
inventory levels.
HELpinG OUr CUStOMErS SUCCEED
All this efficiency gets us nowhere if we
are not taking care of our customers. Over
the past several years, we have refined
our Business Reviews into a robust service
that forges strong relationships with our
customers because it truly helps them
succeed. Especially in today’s environment,
this process has become a distinct compet-
itive advantage because it is highly valued
by customers and difficult for our competitors
to replicate.
Business Reviews are focused on indepen-
dent restaurants and customized for each
one. With food costs a significant concern,
much of our emphasis this year has been
on helping restaurateurs re-engineer menus
to reduce costs while still offering customers
a quality dining experience.
inVEStinG in GrOWtH
We continue to invest in our people, our
facilities, our fleet and our technology – the
keys that will help us continue to grow and
gain market share. We expect to invest
$675 million to $725 million in capital
spending during fiscal year 2009.
To address long-term energy costs, we
are exploring the use of alternative energy
sources, both for ourselves and our cus-
tomers. We have adopted the use of
biodiesel wherever practical, and a SYSCO-
branded hybrid electric diesel truck is
currently being demonstrated by Interna-
tional Truck and Engine Corporation. We
are also investing in alternative refrigeration
systems for our trucks. One system using
CO2 as a refrigerant is being tested by
Thermo King Corporation.
Although the bulk of our business is in
North America, we are increasingly
becoming a global company. We source
products from Latin America and Southeast
Asia, and export to more than 100 countries
around the world. Last July, our Guest Supply
subsidiary acquired Austin Tatum, a personal
care amenity company headquartered in
Hong Kong. This international exposure
provides early learning experiences as we
consider opportunities for the future.
tEaMWOrK
We are placing greater emphasis on innova-
tion within the organization as we scan the
external environment for macro trends that
can impact our industry and our organiza-
tion. One of our best sources for innovation,
however, remains the more than 8,000
marketing associates who are working with
our customers every day. They see new
food trends on the front line and share their
insights so that we can be ready with the
quality products and services that will allow
our customers to adapt to changing tastes.
We are exceptionally proud of the results
we accomplished in fiscal 2008 because of
the difficult economic environment within
which they were achieved. We congratulate
our 50,000 associates on this accomplish-
ment, and we remind ourselves that every
day it starts all over again as we tackle new
challenges and aspire to even higher goals.
Richard J. Schnieders
Chairman and Chief Executive Officer
Kenneth F. Spitler
President and Chief Operating Officer
October 7, 2008
(left to right)
Richard J. Schnieders,
Chairman and
Chief Executive Ofcer
Kenneth F. Spitler,
President and
Chief Operating Ofcer
“By containing co◊s wh∏e continuing to inve◊
in ◊rengthening our cu◊omer r≤ationships, we’ve been able to
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”