Sysco bets its future on the supply chain

It's hardly unusual for a CEO to outline his vision for the company's future at an annual shareholders' meeting. But it's not every day that the CEO unveils a killer supply chain strategy for taking the company to the top. When he addressed his company's annual meeting in November, Richard J. Schnieders, CEO and president of Sysco, North America's largest food-service distributor, did just that.

"Our vision is to become the global leader of the efficient, multi-temperature food product supply chain," Schnieders told his audience. "We will be able to move a case, or multiple cases, of food and related products from points anywhere in the world more effectively than any other company. By further developing our global supply chain, we intend to provide significant benefits and opportunities for our customers, suppliers, Sysco associates, and ultimately our shareholders."

Sysco is in the midst of what it calls its National Supply Chain Project, which will focus on improving its forecasting, using technology to cut operating and delivery costs, and opening as many as nine redistribution centers throughout the United States. The first redistribution center, located in Front Royal, Va., began shipping products 11 months ago. At press time, Sysco was preparing to complete the design phase for a second center in Alachua, Fla., and to announce the site it had selected for its third RDC.