206: How to Do Business With McLane Company

6/5/2014
206:
How to Do Business
With McLane
Company
Beckey James, McLane Company
Tuesday, June 10, 2014
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MCLANE COMPANY
• McLane Company, Inc., is a $44 billion supply chain
services leader, providing grocery and foodservice supply
chain solutions for convenience stores, mass merchants,
drug stores and chain restaurants throughout the United
States.
• McLane, through McLane Grocery, McLane Foodservice
and recent foodservice acquisition, Meadowbrook Meat
Company, Inc., (MBM), operates 80 distribution centers
and one of the nation’s largest private fleets.
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MCLANE COMPANY
• The company buys, sells and delivers more than 50,000
different consumer products to nearly 90,000 locations
across the U.S. In addition, McLane provides alcoholic
beverage distribution via McLane Beverage Distribution,
Inc., and its acquisitions of Empire Distributors, Inc.,
Horizon Wine & Spirits and Delta.
• McLane is a wholly owned unit of Berkshire Hathaway
Inc. (NYSE: BRK) and employs 20,000 teammates.
• McLane Grocery operates 20 Distribution Centers
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BENEFITS OF ACCURATE DATA
• Purchasing
– Weights and cubes have to be accurate within our
system as well as our suppliers system so we are
creating accurate Purchase Orders
• Do I have a full truck?
• Am I in the correct cost bracket?
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BENEFITS OF ACCURATE DATA
• Receiving and Storing the Product
– Assigning spaces for putting away receipts are based
on the dimensions and weight of the product
• Assigning a slot once instead of getting the product to
the slot and having to readjust the slot or assign a
new one
– In our Missouri DC the product comes back to our
Pallet Hospital to correct any issues before the
automated process puts the product in a high bay
location
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BENEFITS OF ACCURATE DATA
– For items sold to our customers at the inner pack or
each level, we “QC” each tote to ensure order accuracy.
The tote is weighed and tare weight of the tote is
removed to determine the actual product weight.
– If there is a weight discrepancy it requires the tote to be
manually checked to ensure order accuracy which adds
additional distribution costs to the product
– Product is scanned to ensure the proper product is in
the tote and mispulls have not occurred
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BENEFITS OF ACCURATE DATA
• Shipping
– Efficient utilization of our trucks requires accurate
dimensions and weights to ensure we are maximizing
available space. This is important at each level of the
product hierarchy, we could be shipping any level.
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DATA SYNCHRONIZATION WITH MCLANE
COMPANY
• Publish to our Corporate GLN: 0083967000016
• Send all levels of your product hierarchy, as a distributor
we could sell our customers the case, the inner pack, or
the each level of the hierarchy, please ensure BEFORE,
you publish a hierarchy for the first time that the number
contained is accurate as well as all other attributes. If you
have questions about how to publish please contact your
solution provider BEFORE publishing. If the product
hierarchy is wrong it delays new item setup when the
hierarchy has to be deleted, wait 25 hours, and then
publish a correct product hierarchy and number contained
within each hierarchy!
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DATA SYNCHRONIZATION WITH MCLANE
COMPANY
• Send gross weights on ALL levels of product hierarchy,
including consumer units
• If Base Unit Indicator = “Yes” then the Net Content field
becomes required
• Product Description must be populated with a detailed item
description with no abbreviations
• Send TI/HI either at the pallet level or at the case level, which
is required by McLane Company.
• Make sure that: eanuccCode is:
• The data structure assigned and marked on a physical
product.
• Make sure you are publishing the dimensions of the items in
accordance with GS1 requirements
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DATA SYNCHRONIZATION WITH MCLANE
COMPANY
• McLane Company is synchronizing many of our suppliers attributes
into our back end systems and it is imperative that the item data is
accurate. Dimensions and weight at every level of the hierarchy are
used for our purchasing, receiving, slotting, and quality control
process for shipping outbound to our customers. The product
description from GDSN is being populated to use with our pick to
voice system, as well as to create a McLane short description at the
time of new item setup.
• We will determine what levels of the product hierarchy we sell and
will modify the “Orderable” flag this makes gross weight mandatory
on all levels of the product. We will register and publish the
appropriate level of GTIN’s using our GLN as a reseller of the item
• Therefore, it is imperative that all data sync issues and corrections be
made before we publish to retailers so that they receive correct data
the first time.
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SUPPLIER PROVIDES NEW ITEM INFORMATION
• The Supplier publishes an item as new or republishes the item as new if it is in
historical, supplier’s use a web interface or an excel spreadsheet to register items with
1SYNC.
• The item appears in Product Intro under “ready to list” for the supplier to add the cost
and other information and then submits the items.
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CODE DATE INFORMATION
• This can be found by clicking on the case and then scrolling
down, if this
• Information is not present click on send back to supplier and
ask them to publish the information
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COMMENTS AND ATTACHMENTS
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WORKFLOW HISTORY
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WHAT IS NEXT?
• The item comes back to New Item Setup, information is validated
against the case sample if available, cost and GDSN information is
printed and then they click “submit” to pass to the UIN Desk.
• If the vendor is certified the paperwork is given directly to the UIN
desk, if not it is attached to the case sample or an exception has
been requested.
• The item is then validated again by the UIN department, and then
cubiscaned, the dimensions and weight are added to Product
Introduction and if there is more than a 4% variance the item is sent
back to the supplier to correct.
• Once correct the UIN department approves the item in PI, it is
downloaded to Corporate Item Maintenance to assign the UIN. This
is done via an hourly XML message from 1SYNC.
• The New Item Department then cascades the item to the DC’s that
were noted in PI and then New Items validates that the item went live
in the appropriate DC’s the next day.
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AUDIT PROCESS PERFORMED AT MCLANE
COMPANY
• Once the case is received the following information is audited for
accuracy:
– The Case, Inner pack, and retail GTIN matches what has been
published in Data Synchronization and that the correct EAN/UCC
code and type is being published.
– The Case, Inner pack, and retail barcode scans and it is using an
accurate barcode format. (ITF-14, GS-128,UPCA,EAN13,EAN8) If
you are using a GS-128 application identifiers should be present)
– Item description matches what has been published
– Declared Net Content matches what has been published for retail
items
– The pack matches what has been published.
– The dimensions and weight are within tolerance
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COMMON REASONS NEW ITEMS ARE DELAYED
5. Supplier has not published the item as new or
republished as new
4. The supplier has provided inaccurate or incomplete
information
3. GTIN allocation rules have not been followed
2. The supplier is not registered with GS1US
http://gepir.gs1.org/v31/xx/
1. The case sample has not arrived
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HOW TO BECOME A CERTIFIED SUPPLIER
WITH MCLANE
• Publish ALL items currently carried by McLane Company through the
Global Data Synchronization
• Setup new items using the 1SYNC Production Introduction Solution
• We will ensure that all items that we carry have been published and
we will review all items sent to make sure we have accurate
information in our system
• We will compare what is being sent to us through GDSN and what
we have previously cubiscaned and e-mail you with any disparities
• Follow ALL GTIN allocation rules, we should not receive corrections
on items that are actually violations of the GTIN allocation rules and
not true corrections (example: Net Content should not be published
as a correction when the item has been in existence for years)
• All items must have unique scanable barcodes at each level of the
hierarchy
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QUESTIONS ASKED OF THE SUPPLIER
• What process do you have in place to publish new items
to us?
• Do you weigh and measure your cases after they are
produced?
• How are you weighing and measuring your cases?
• What processes have been put in place to ensure Data
Accuracy is retained?
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WHAT’S NEW? FOOD SERVICE INFORMATION
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CHEMICAL INGREDIENTS FLAG
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QUESTIONS?
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