Transcript USDA Foods
Regional Meetings Winter 2014
USDA Foods
The HPS Commodity Portal HPS staff Fee structure and Billing Volume Discounts HPS experience
http://epcmec.hpsusdafoods.org
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Senior Director of Finance & Administration
Rick Jones
Administration Support Services Furniture, Finishes, & Equipment Interior Design Technology Corporate Communications President & CEO
Tom LaPres
VP of Member Development and Customer Relations
Michelle Pleiness
Member Relations
Healthcare Members
Member Relations
Associate Members
Member Relations
Education Members
Member Development
All Segments
VP of Contracting and New Business Development
Kevin Crampton
Contracting
National Contracts MedAssets-Healthcare
Contracting
Regional Contracts All Segments
Business Development
USDA Foods Administration
Dedicated Point Person Tami Kruger [email protected]
800-632-4572 Customer Service hours 8a.m.-5p.m. (est) Established Vendor/Broker relationships Backup staff at office
Transparent One bill a year, billed by Awarded Distributor In Conjunction with Volume Discount
Annual Entitlement Level 0 - 10K 100,001 - 25K 25,001 - 50K >50K HPS Administrator Fee
$150 $300 $475 $675
EPC/MEC Council Fee
$25 $50 $75 $100
Annual Member Fees
$175 $350 $550 $775
All discounts given will be passed on to districts The awarded distributor (GFS) will distribute the Volume Discounts in Conjunction with the EPC/MEC Commodity Administration Bill Report available on Portal **May be in year two**
You will be receiving the Volume Discount for School Year (SY) 2013-2014. Disbursement of these rebates is in conjunction with your one-time annual fee for your Commodity Administration Service (CAS) for SY 2014-15. The Volume Discount for SY 2013-2014 will be in one of two forms: GFS Credit Memo: The amount shown on the credit memo is the net effect of the credit less the annual fee for Commodity Administration Services due to EPC/MEC.
This rebate has covered your fee to EPC/MEC and your district is paid in full for CAS for SY 2012-13. Please process as a typical credit memo with GFS.
GFS Invoice: The amount shown on the invoice means either: The credit earned covered a portion of the CAS fee
OR
Your district did not accrue any Volume Discounts in SY 2011-12 (there were no purchases from the manufacturers offering Volume Discounts). Please submit payment to GFS, which in turn will remit payment for your EPC/MEC CAS fee. This process eliminates the need for you to cut an additional check for your CAS fee.
If your district does not receive either form of this communication from GFS, your district will receive a CAS fee bill directly from HPS.
Transparency Expertise (USDA Relationships) A presence at ACDA Branded Portal website Excellent Customer Service for your members Same Time Zone Dedicated point person Back-up personnel
What do commodities mean to customers Importance of customers staying on track Concept of Single Bank
Schools earn @$0.27 per meal served Do not lose track of this Fact: Your schools earned this amount by serving meals ▪ ▪ ▪ ▪ This is not “Free Money” It is not just given to the school Schools can make a difference based on performance Schools need to earn and utilize these funds to have a successful program.
Average commercial cost of a meal: Average price of a meal: $1.50
$2.25
Food cost with no commodity: ($1.50/$2.25) Food cost with commodity: ($1.50-$0.27)/$2.25) Job one is to Spend Your Money 66% 54% Customers must effectively utilize their USDA Foods to realize this 12% in lower food costs.
District decides how many pounds to go to the processors of their choice.
This decision is made in January/February timeframe of the prior school year Cannot spend any more or less than pounds allocated
Lower flexibility in the menu offering Allocating dollars to product and unable to utilize in the current school year Low commodity utilization High carryover balances High level of frustration
What will it mean for me?????
Michigan piloted SY 2011-2012 HPS and GLC implemented SY 2013-2014 Ohio and California will start SY 2014-2015 HPS has been successfully managing this system in the 2013-2014 school year Great results High member satisfaction State Dept. pleased with results
The system is becoming inefficient Members do not have sufficient data to make the decisions they need to make Converting Commercial Sales to Commodity Sales USDA Utilization Directives
Use it or Lose it.
What does that mean?
Membership dues are paid once per year Volume Rebate (Members receive 100% of rebates earned) Emphasis on Customer Service Customer Service hours 8am-5pm EST.
What does that mean?
Timeline Processed Items Volume Discounts Brown Box DoD Produce
Time saved on Survey Process No need to calculate pounds Ability to change processors when menu dictates Allows members to focus on what they do best: Feed Kids
Do I need to do a survey for Brown Box and DoD if my district does not want those items?
No. If you feel it is best for your district to use all of your entitlement on Processed, do not complete the survey and all of your entitlement will go into the Single Bank System What if I forget to order Brown Box and DoD during the survey period?
Processed Will be included in the Single Bank The Councils will have access to those pounds They do not go back to Processor, get donated, or vanish Non Processed Will Carryover and you will see value of that carryover because you have already landed it
How much Entitlement can I spend in the Single Bank System?
What Processors will be available to order from?
Can I spend too much at a Processor? What about “Fair Share”?
Depends on how much you divert to Non-Processed and DoD Produce. All remaining entitlement will be available in the Single Bank System. As an example if your district has $50,000 in entitlement and you divert $5,000 to Non-Processed and an additional $5,000 to DoD your district would be able to spend $40,000 on in the Single Bank System on Processed vendors.
Example
Total Entitlement – Non-Processed Allocated – DoD Allocated = Single Bank Entitlement ($50,000) ($5,000) ($5,000) ($40,000)
You can order from ANY approved EPC/MEC Processor.
How will I know what items to order?
GFS Experience and the Green Shield Icon.
Approved Product List on the Portal
HPS has a system in place because per USDA a Fair Share must be ensured Each member has a target of pounds at each Processor We will determine targets from purchasing history Once the target is reached, you will not be able to order from that Processor If that happens you will call HPS to see if the overall Councils balance at that Processor would allow you to be loaded with additional pounds
HPS will review your purchasing history and then: ▪ Determine a minimum # of pounds that all members will have ▪ Establish a buffer ▪ This establishes your target ▪ Place order with USDA This will ensure Fair Share for all Members
Every member will start with a “Minimum Target” from every processor HPS will reduce the balances by 10% of pounds from those members that had zero usage in any given month Then HPS will re-distribute those pounds to members who are utilizing that processor
A notification will be sent to GFS and you. You will no longer get the Commodity discount for those vendor’s products. At this point you can email HPS to determine if there are enough pounds available to be loaded with some more target pounds. If that is not available you can continue to purchase NOI items from GFS at the Commercial price.
No. These products are ordered exactly as they are today ▪ Complete the Survey ▪ Products are assigned to your district ▪ Place order through GFS ▪ Storage Fees for Brown Box still apply ▪ Survey dates for Brown Box Feb. 1 st thru 21 st
You can monitor progress on your Home Page of http://epcmec.hpsusdafoods.org
You will be sent a notification from HPS when your Single Bank is 95% depleted PAL Report
Yes, these companies are still very important in your managing of the USDA Foods program. They are still your primary source for sales verification and have many resources that can help you utilize the program better.
You Will Always be at 100% - Don’t Worry!
Email Notifications Brown Box Delivery Thresholds Notifications/Entitlement Notifications Reports Product List by DC Broker Contact Information EPC Specific Messages Multiple thermometers for easy monitoring of progress Detailed Brown Box order- With estimated delivery dates Pie Chart of Manufacturers
• • Please do not hesitate to call or email us!!
By Phone 1-800-632-4572 By Email [email protected]
Regional Meetings Winter 2014 Kevin Crampton | HPS, LLC Vice President of Contracting and Business Development [email protected]|269-795-3308
USDA Foods
USDA Foods
Monitoring Dollars – districts will no longer monitor pounds. Instead, they will monitor their dollars, much like a checkbook, on the hpsusdafoods.org website.
Spending - a district can make commodity purchases until 100% of their Total Entitlement is spend. This data is updated daily on the hpsusdafoods.org site.
USDA Foods
Diverted to Processors Tyson $20,000 JTM $20,000 Schwan's $20,000 Jennie O $20,000 Pilgrims Pride $20,000 $100,000 $19,500 $17,000 $18,000 $17,500 $16,000 $88,000 Actual Spend Carry Over = $12,000 (under spent)
USDA Foods
Diverted to Processors Tyson JTM $20,000 $20,000 Schwan's $20,000 Jennie O $20,000 Pilgrims Pride $20,000 $100,000 Single Bank Allowance $ 20,000 $19,500 $17,000 $18,000 $17,500 $16,000 $88,000 Actual Spend McCain Gold Kist Land O Lakes $ 5,000 $10,000 $22,000 $ 7,000 Additional $22,000 of commodity items to bring down the overall balance.
USDA Foods
Per USDA directive the commodity fair market value will not come off of your PAL report until it is delivered to your facility. Thus a district will no longer have a balance at the processor or processor.
USDA Foods Member Order Summary Report
USDA Foods Member Diversion
USDA Foods Truck Assignment – Brown Box
USDA Foods Product List