Compass Group Ireland Commercial Sourcing Overview 2013/14
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Compass Group PLC Commercial Sourcing Overview 2013/14
Introduction
Mark Lee
Commercial Director
I joined the Irish Commercial team eighteen months ago and have been privileged to be part of a programme that has transformed the way that we source our food and non food products during that time. In such a complex and diverse business, it is critical that we have the right people and processes. Our Sourcing Team delivers great commercial results for our business through category management and the application of a structured sourcing process via the Compass Procurement Framework. Our Executive Chef chooses every ingredient that we source. We only work with suppliers who are committed to our business over the long term and together we are constantly driving new category insights and improving the quality and service of our offer. In order to ensure that our suppliers understand the fundamental basics of our business, we encourage relationships at unit level. This process is facilitated through our annual Engage Expo, where all unit managers and head chefs are invited to meet suppliers on a one to one basis. For our supply base this means we expect sustainable relationships that are based on continuous improvement principles. It’s an incredibly exciting time to be part of Compass Group Ireland and I know that our suppliers and stakeholders feel the same way.
Mark Lee Commercial Director Compass Group Ireland
Commercial Sourcing Overview 2013/14 Compass Group PLC
Compass Group plc
• Turnover £16.9 billion (2012) • Operating in 50 countries • Remain the 11th largest employer in the world • Strong growth in North America and Emerging Markets • Head winds in Europe being addressed going forward • Healthy balance sheet and financial position
Compass’ geographic split
North America Europe / Japan Fast Growing
Our business spans the 3 economic regions p g North America, Europe / Japan and Fast Growing
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Compass Group PLC Commercial Sourcing Overview 2013/14
Compass Group geographic spread 17%
44% Fast Growing & Emerging
North America
Japan Continental Europe
39%
UK & Ireland
Revenue split by geographic region
Ireland business overview Over 230 sites
â‚Ź135m revenue
100,000 meals served a day
Over 3,500 employees
Delivered through our clearly defined sector brands
Successfully delivered our plan in 2012!!
Commercial Sourcing Overview 2013/14 Compass Group PLC
Corporate responsibility We take responsibility for our impact on the environment and the people in our communities, through our Five Pillars of Corporate Responsibility. Our People Investing in the development of our people is essential for innovation and employee satisfaction.
SU S SO TAI UR
Environment We aim to reduce our impact on the environment by addressing climate change, carbon emissions and waste management.
T EN
M
M
U
NI
N
M
Community Our community investment programme has helped thousands to reach their potential in education, employment and social inclusion.
OUR PEOPLE CO
Sustainable sourcing Both our produce and products are always sourced from our approved suppliers and are fully traceable.
D AN SS ION IT
Wellness and Nutrition Healthy eating is good for the economy, society and individual well-being.
WE L NU LNE TR
LE AB G N IN C
TY
V EN
IR
O
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Compass Group PLC Commercial Sourcing Overview 2013/14
Irish Commercial 3-5 year strategic intent We will be a high performing Commercial Team that will partner with our sectors to maximise the value that we get from every euro that we spend. In doing so, we will delight clients and consumers leading to a transformation in the sustainable profitability of the Irish business.
“Great Commercial Partnership Driving Great Business Results� Maximise Sustainable Profitability
Drive Commercial Business Excellence
Be The Best We Can
Be Recognised As Trusted Partners
Understand Client & Consumer Impact
Implement Commercial component of Business Excellence programme
Transform people engagement in Commercial
Regarded as valued business partners
Make a direct contribution to Sector strategy
Execute Compass Procurement and Retail processes
Provide the tools that our people need to do their job
Knowledgeable about sector business needs
Effective Supplier Relationship Management
Effective and consistent business systems and processes
Effective and consistent application of people processes
Transparent, collaborative and shared business planning
Maximise profit from Purchasing/Retail Categories
Drive a Safe Supply Chain
Develop talent and provide effective career paths
Visible in the field. Well developed relationships
Commercial Sourcing Overview 2013/14 Compass Group PLC
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Management and Performance
nagement and Performance nagement and Performance nagement and Performance nagement and Performance Client Client Sales Salesand andMarketing Marketing nagement and Performance Client Sales and Marketing
Client Sales and Marketing Consumer Sales and Marketing Client Sales and Marketing Consumer ConsumerSales Salesand andMarketing Marketing Client Sales and Marketing Consumer Sales and Marketing Cost of Food Consumer Sales and Marketing Cost of Food Consumer Sales and Marketing Cost Cost of of Food Food In-Unit Costs Cost of Food In-Unit Costs Cost of Food In-Unit Costs Above-unit Costs In-Unit Costs Costs Above-unit Costs In-Unit Costs Above-unit Costs Above-unit Costs Above-unit Above-UnitCosts Costs
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Compass Group PLC Commercial Sourcing Overview 2013/14
The brands we use
The Marketing team is responsible for all national brands, concepts and promotional activity across the Irish business. Our core activity focuses around: *Promotion of brand integrity and continuity *Merchandising materials for off-the-shelf promotions *Working with operating division marketers to support brands and coordinate promotions
Our Compass Group brands:
Commercial Sourcing Overview 2013/14 Compass Group PLC
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Sustainable Sourcing
Sustainable Sourcing – one platform and three common priorities – Our approach is to have Sustainable a consistent Sourcing platform with three common one platform and three common priorities Sustainable – with layers at sector priorities and Compass drivenSourcing themes, but level. 1 platform and three common priorities one m Platfor
1s Platform
1 animal welfare tform 3PlaPriorities
1
3 Prioritie
Platform
provenance
3 Priorities
73 Priorities n Commo
animal welfare welfare people animal welfare
provenance
ents commitm
people welfare
provenance
people welfare
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n Commo n co Commo at ts idual requirements II. We can tailor an offer toivindividual Ind ena geographical level. pecificcommitm sector-s s & III. We actively promote the use of teeseasonal Irish produce across all of our business GuaranYour through our monthly ‘Know e Food’ programme thatuisalendorsed by Eat Seasonably. Choic s Individ -specificconcept proposed by IV. We will not buy products that don’t adhere to the ctorfreedoms’ alse‘Five u id & iv d In on the protection the Farm Animal Welfare Council (FAWC) ranteeofs animals kept for farming -speGcuifaic s r to c e s purpose. oice eCsh& Guarante V. We only source fresh fish and shellfish from suppliers registered with the Sea Fisheries Choices I.
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nts Irish sourcing activities. We support ROI & NI agriculture through our local, m regional mitmeand
7 Common Commitments
Protection Authority (SFPA) and/or Bord Iascaigh Mhara (BIM) who audit and promote responsible environmental practices in accordance with The Sea-Fisheries and Maritime Jurisdiction Act (2006)
VI. All our eggs are Bord Bia approved for ROI and Lion marked British for NI. VII. We supports SME’s in showcasing their opportunities to our business through our ‘Idea Works’ programme.
Individual sector specific Guarantees & Choices
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Compass Group PLC Commercial Sourcing Overview 2013/14
Supply chain
Four years ago, we embarked on a journey with our suppliers, the core purpose of which was to take the ‘journey’ out of the products they supply us with. In so doing, we delivered on three primary objectives: • Remove 2,000,000 food kilometres travelled from point of production to point of use across all products, thereby expediting route to market and ensuring best possible quality • Remove 2 Kilo Tonnes of CO2 from our Carbon Footprint • Secure ‘Best De-Coupled Price’ on all supplied product. Appointment of Brakes as our Central Logistics Partner was fundamental to the successful delivery of these objectives. The fundamental premise upon our relationship with Brakes is based on our ability to ‘nominate’ specific suppliers who deliver directly to our Central Distribution (CD) depot in Parkwest Business Park (i.e. our Irish milk supplier delivers all our milk to our CD depot.) Historically, some of these suppliers would have made multiple deliveries nationwide every day whereas now they make only one delivery per day. We have set out a map illustrating the diversity of our Irish supply chain, demonstrating geographical spread and our commitment to fresh, locally sourced, and seasonal produce.
Commercial Sourcing Overview 2013/14 Compass Group PLC
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Compass Group PLC Commercial Sourcing Overview 2013/14
Bread & Bakery 1
Genesis Bakery Magherafelt, Co. Derry
2
Ina’s Kitchen Desserts Co. Dublin
3
Johnston Mooney and O’Brien Co. Dublin
4
Odlums Co. Dublin
5
Panelto Foods Ballinalee Co. Longford
6
Sam’s Cookies Co. Wicklow
Cheese 7
8
Bandon Vale Farmhouse Cheese Bandon Co. Cork Cashel Blue Farmhouse Cheese Fethard Co. Tipperary
9
Killeen Farmhouse Cheese Co. Galway
10
Sheridans Cheesemongers Pottlereagh, Co. Meath
11
St Tola’s Goats Cheese Ennistymon, Co. Clare
14
15
16
17
18
19
Butter Lakeland Dairies Newtownards Co. Down Lakeland Dairies Killeshandra Co. Cavan
13
Milk Boyne Valley Foods Co. Louth
Draynes Farms Lisburn Co. Antrim
20
Honey 28
29
Strathroy Dairies Omagh, Co. Tyrone Yogurt Glenilen Farm Drimelogue Co. Cork Irish Yogurts Clonakilty Co. Cork
Mulrines Ballybofey, Co. Donegal
22
Vitz Drinks Co. Dublin
Eggs 23
Annalitten Foods Ltd Castleblaney Co. Monaghan
24
Clonarn Clover Clonarn, Co. Cavan
Chicken Shannonvale Foods Co. Cork
33
Atlantis Seafoods Kilmore Quay Co. Wexford
26
Burren Smokehouse Lisdoonvarna, Co. Clare
27
Lissadell Shellfish Company Lissadell, Co. Sligo
Lamb Michael Doyle Boolavogue Co. Wexford Ring of Kerry Lamb Society Cahersiveen, Co Kerry
35
Sausages & Pudding Hodgins Sausages Mitchelstown Co. Cork
36
Turkey McKeown Fine Foods Co. Antrim
37
Venison Coopershill Venison Coopershill, Co. Sligo
Olive Oil, Olives & Vinegar 38
Donegal Rapeseed Raphoe, Co. Donegal
39
Frylite Vegetable Oil Strabane, Co. Tyrone
This map represents a sample of suppliers not a complete list.
Broccoli & Cauliflower Niall Carbury Garristown Co. Dublin
41
Carrots Guy Farm Produce Longwood Co. Meath
42
Herb and Rocket McCormack Farms Ltd Dunsany Co. Meath
43
Lettuce Livegreens Farm Maynooth, Co. Kildare
44
Mushrooms Codd Mushrooms Tullow Co. Carlow
45
Potatoes Peter Keogh & Sons Ltd Oldtown Co. Dublin
46
Strawberries Pat Barrett Ballyboughal Co. Dublin
Duck Silver Hill Farm Co. Monaghan
34
Fish 25
Bacon Irish Bacon Slicers Ballincollig Co. Cork
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32
Produce 40
Meat & Poultry
Beef AIBP Co. Tipperary Co. Monaghan Co. Waterford City Co. Limerick
Classic Drinks Co. Cork
21
Mileeven Honey Pilltown, Co. Kilkenny
30
Killowen Farm Wexford
Drinks
Dairy 12
CMP Dairies Cork City Co. Cork
47
Sandwiches Bite Group Enniskillen Co. Fermanagh
Snacks 48
Good Snack Company Co. Dublin
49
Largo Foods Ashbourne, Co. Meath Gweedore, Co. Donegal
50
Tayto Northern Ireland Co. Armagh
Commercial Sourcing Overview 2013/14 Compass Group PLC
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Donegal
36
Derry
38
Antrim
21 39 16
27
32
Fermanagh
Sligo
12 9
Leitrim
Cavan
Louth
24
Mayo Roscommon
Longford
Meath 42 41
Westmeath
6 Wicklow
Laois Clare
30
Dublin
Kildare 43
26 11
4 46 40 45 2
49
3 48 22
Offaly
9
13
10
5
Galway
Down
Armagh
50 30 Monaghan 23
47
37
15
Tyrone
8
30
Carlow Tipperary
Limerick
28
44
Kilkenny
19 33
Wexford 34
31
Kerry
30 Cork 35 14
20
29 7
17 18
Waterford
25
12 9
19
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Compass Group PLC Commercial Sourcing Overview 2013/14
Fresh thinking...what is it?
Appropriate standardisation Buying the same product throughout the whole business to maximise scale whilst maintaining client points of difference.
Our journey towards Business Excellence - better ways of working, improving our service standards and delivering consistently.
Green & Simple Moving to Brakes has allowed a smarter way of working and a more efficient ordering process.
Fresh Thinking…
Sector offer Each sector will create their own ingredients list building a recipe book that is right for our clients and customers. Health & Well Being Committed to • Elimination of artificial trans fats • Meeting Government Salt targets • Providing GDA (Guidance Daily Allowance) labelling on the food we sell. • UK Salt Targets • IRE FSAI Guidelines
Ingredients Optimisation ‘The right range of ingredients for the right price’. We want to drive quality, service & innovation within our business. The Source A recipe management tool to help build consistency in service standards and to manage client and customer relationships - leading to more retention for the business.
Commercial Sourcing Overview 2013/14 Compass Group PLC
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andWhat a joint action plan to achiev do we expect from our suppliers? ctive in providing new product de
e
•T o fully understand our business and how we operate
•T o have joint objectives with us and a joint action plan to achieve them
•E nthusiasm towards and understanding of local requirements
•T o be innovative and to be proactive in providing new product development
•T o drive value for our business in line with our MAP strategy
• I ndustry leading quality & service
ng relationships with our people What do we offer in return? •M arket leading prices
•W orking with the worlds leading foodservice and support service company •C ontractual agreement in place for both you, the supplier, and Compass Group Ireland •B rand visibility •Y our products will be displayed on our online ordering system •C entralised distribution model provides a single daily point of delivery to service nationwide Compass estate.
•T o build and sustain good working relationships with our people
• I nvitation to supplier days providing the opportunity to meet with our chefs and engage with our buyers, category managers & directors •A strategic relationship with Compass Group Ireland •T he opportunity to develop products with your end consumers
Stage
1
analysis
Stage 2 Review
Stage 1 Review contingency planning
C Compass Group 2010, v3.
Analysis of gathered data & current situation. Development of strategic insights.
Cross-functional team formation and category process kick off. Planning initial activity.
Review insights from Stage 2. Development and selection of strategic sourcing options.
Workshop 3 Strategy
4
Workshop 4 Execution
COMPASS
Developed with Compass by Positive Purchasing
FRAMEWORK
PROCUREMENT
Implementation planned and executed including supplier selection, negotiation and contracting.
€$£
• Contract planning • Contract management • Contract exit strategy
Benefit Realisation
• eRFP/eRFQ • e-Auctions • Supplier selection • Negotiation planning • Negotiation execution
change
• Managing business
planning 2 & project management
• Implementation
Execution
Stage
Implementation planning.
Strategic options generated and evaluated. Single option chosen and defined. Category strategy developed.
sourcing strategy
• Approve category
strategy development
• Category sourcing
•
planning Plan nature of supplier relationship needed
• Distribution channel
planning 1
• Implementation
• Implementation risk &
• Building chosen option
Stage 3 Review
Workshop 2 Analysis
3
evaluation & selection
• Strategic option
generation
• SWOT analysis • Strategic option
Strategy
Stage
• Ongoing communications and stakeholder management • Ongoing refinement and development of business requirements
Data gathering complete, various analysis complete and insights from analysis drawn.
nd
• Portfolio analysis (2 Pass) • Supplier preferencing
• Technology road map • PEST • Porter’s Five Forces
• Supply/Value chain
(Total Cost of Ownership)
• TCO
(Purchase Price Cost Analysis)
• Price model • PPCA
RFI/eRFI
2
• Supplier conditioning • Spend analysis • Internal data gathering • Supplier data gathering • Market data gathering • Vendor assurance/
Analysis
Stage Stage 4 Review
Workshop 1 Start Up
Team is formed, project defined, planned and started. Early analysis and business needs completed
st
• Day one analysis • Portfolio analysis (1 Pass) • Category risk analysis • Value Levers • Business requirements • Hierarchy of needs
(Situation/Target/Proposal)
• STP
• Effective teams • Team charter • Stakeholder mapping • Communications plan • Managing key meetings • Project time planning • Quick Wins
• Recruit team members
•
(incl global/regional/local) Secure executive sponsor
• Scope category project
Start Up
Business Triggers
The 5 Stage Compass Procurement Framework Start
Implementation Planning Implementation Execution Contracting
Project Kick Off
Project Planning
First Insights
Outputs
Strategy Creation Strategy Planning
Data Gathering
Price/Cost Analysis
External Environment
Strategic Direction
Managing the Supplier Continuous Improvement Restart Triggers
Management
Supplier being managed and ongoing value generation.
€$£
Benefit Realisation
process triggers
• New project/repeat
business requirements
Back to start
• Ongoing alignment with
and breakthrough ongoing
• Attracting innovation
measurement
• Supplier reviews • Supplier management • Performance
• Supplier Relationship
5
Continuous Improvement
Stage
14 Compass Group PLC Commercial Sourcing Overview 2013/14
The 5 stage Compass Procurement Framework
Commercial Sourcing Overview 2013/14 Compass Group PLC
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Compass Group PLC Commercial Sourcing Overview 2013/14
Supporting business and industry
From a hearty soup and a freshly made sandwich to a wholesome daily meal, from executive dining and contemporary restaurants, through to stylish coffee shops, delis and on-site retail outlets, our business and industry specialists look after the catering needs of thousands of people every day. We’re trusted every single day by a very special group of high profile clients, many of them are leaders in their own market. Today nearly 200 organisations, place their trust in us to provide their food service requirements whether in Financial Services, Utilities, Transport, Manufacturing, Engineering, Retail, Media, Legal and Professional sectors, 24 hours a day 365 days a year. Whether our clients need a vibrant and bespoke lunch offer, a branded coffee solution or canapés and fine dining, you’ll find an offer to suit your needs. We pride ourselves on delivering consistent quality accompanied by a great service spirit, with that all important flair and flexibility that our clients find invaluable.
Using fresh, high quality ingredients and carefully planned balanced menus based on local knowledge as well as consumer insights and changing customer needs, our award winning chefs prepare and cook great food, served by well trained and empowered service teams. Responsible sourcing is hugely important, both to us and our customers and we are committed to helping Irish farmers, growers and producers flourish.
We provide foodservices to clients in the Utilities, Gas, Transport, Manufacturing, Engineering, Retail, Financial Services, Legal and Professional sectors, 24 hours a day 365 days of the year.
Commercial Sourcing Overview 2013/14 Compass Group PLC
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Compass Group PLC Commercial Sourcing Overview 2013/14
Commercial Sourcing Overview 2013/14 Compass Group PLC
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Food for thought
Chartwells operates solely within schools, colleges and universities. Central to Chartwells is our Eat, Learn, Live ethos, a set of commitments which helps to educate young people about how to have a happy, safe and healthy lifestyle while contributing to a sustainable world. These commitments underpin everything we do and also demonstrate our support for national policy and strategy. Our catering teams’ skills are constantly honed with craft skills training, and their expertise is consistently recognised in national catering awards. We operate our first class service across primary and secondary schools and colleges. Primary schools Food fires pupils’ imaginations, so we provide healthy, nutritious meals to fuel their development. We support schools in their efforts to encourage pupils to be healthy, and our nutritionists and executive chefs offer a whole school approach with curriculum support for food, health and wellbeing topics.
Every school is unique, and we love to support and become part of each community. We provide memorable food for every occasion – from a simple hospitality tray at a first visit to grand annual dinners – because we understand that great catering enhances a school’s reputation. Secondary schools We provide exciting, on-trend food to entice older pupils to take a school meal, while ensuring that we offer value for money. Innovating queue reduction systems, such as exterior and interior kiosks that provide additional service points, cashless systems, including online payment for parents, all support increased uptake, and our branded Costa Coffee and Starbucks outlets are always a great success with senior students.
We provide retail high street brands to create a familiar feel on campus, or work with individual universities or colleges to create bespoke brands which bring their values to life. In some cases, we are also able to provide capital investment to create attractive and welcoming environments in which students can eat, study and meet with friends.
Our Fun into Food activity programme, run by our team of chefs, supports the curriculum, and our Survival Workshops equip senior students with basic cooking skills to help them at university. Universities and colleges Life as a student is always about more than just education.
As a top FTSE company, Compass supports student employability through graduate places, work experience and work placements.
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Compass Group PLC Commercial Sourcing Overview 2013/14
Providing great guest experiences
The Sport, Leisure and Hospitality division of Compass Group provides food service at many of the world’s premier sporting events, entertainment and conference venues. The Levy culture is founded on striving for excellence, every day of the week in everything that we do. It is about going one step further than everyone else, every time. It’s about ‘wowing’ the customer and putting their experience at the forefront of what we do.
Everywhere we operate, our teams seek to work with local communities. We use local suppliers and producers, we set targets to employ staff from the local area, and we work with local charities and community organisations to benefit local causes.
Most importantly, it is about delivering exceptional food and exceptional service, not simply because that is our job, but because we take considerable pride in our work. We also know that by adopting this approach, we support and enhance each and every one of the exceptional venues within which we work. We have 30 years experience of delivering exceptional food, beverage and service across Sport and Leisure markets. We are committed to a constant assessment of the market place coupled with regular innovation and brainstorm meetings to ensure that our food leads the market place in flair, quality, creativity, consistency and value for money.
From quality local ingredients to classic ceremonies and customs, our venues’ traditional touches delight local and international guests alike.
Images from top to bottom: Cultra Manor, Leopardstown, Aviva Stadium
Commercial Sourcing Overview 2013/14 Compass Group PLC
Everywhere we operate, our teams seek to work with local communities.
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Compass Group PLC Commercial Sourcing Overview 2013/14
Commercial Sourcing Overview 2013/14 Compass Group PLC
Under one roof We are an expert support services provider in Ireland. As a major employer across the country, Eurest Services provides support services to the largest and smallest organisations. We self-perform a wide variety of support services, integrating these under a single account structure to provide a single point of contact while driving financial and operational benefits for our clients. Our research has shown that the key client drivers for bundling and integrating support services are: • Sustainable cost reduction • Standardisation of service • Transparency of cost • Consolidation of client supply chain • Robust performance monitoring against clearly defined KPIs • Single point of contact across all services • Specific sector values. Our expertise is in delivering and is underpinned by a global platform, the award winning Compass Service Framework, which allows us to perform consistently for our clients.
Consisting of a Service Management Model, Operational Service Procedures (with hundreds of method statements, safe systems of work and training tools for tasks associated with all our core service lines) and a knowledge management system, it offers bespoke Service Level Agreements and is webbased to provide real time access. All our teams are focused on customer service, irrespective of the provisions provided. Our emphasis on multi-skilling enhances our opportunities to maximise our resources and deliver a more flexible, cost-effective and safe service model to our clients.
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Compass Group PLC Commercial Sourcing Overview 2013/14
Health at heart
Medirest is a leading provider of catering and support services to the healthcare market. We provide professional, quality cleaning, catering, retail and support services in hospitals and medical treatment centres throughout Ireland. Our teams are on hand 24 hours a day, 365 days a year to manage essential services on behalf of our clients. This support gives you the assurance and peace of mind to focus fully on your role – providing quality patient care. Everything we do is underpinned by our mission to provide the highest quality and best value cleaning, catering, support services and retail services to the healthcare sector. Steamplicity Steamplicity is our unique cooking system which uses the water content naturally found in fresh food to steamcook meals from fresh in just a few minutes. This method of cooking provides exceptional nutritional benefits and, due to its cooking speed, enables patients to choose their dish only hours before they eat. We are committed to providing a patient dining offer that delivers on choice as well as flavour. With Steamplicity, patients can select from a range of 28 main meal options, all of which are delivered to order. This enables us to increase patient satisfaction while decreasing unnecessary food wastage.
As well as being the perfect patient dining solution, Steamplicity is also available in multi-portion for workplaces and as an innovative vending offer. By introducing Steamplicity cooked food to patient catering, we can guarantee better food quality while reducing space, labour and utility requirements. Retail Many of our healthcare clients are looking for high quality retail outlets to match the quality and variety now available on the high street. We offer a wide range of catering formats and food solutions that can return healthy rental incomes for healthcare environments. From popular, trusted high-street brands like Costa to innovative deli concepts, contemporary foodservice brands and professional retail outlets, we have a brand to meet your needs.
From retail and catering to cleaning and portering, our wide range of service capabilities enables us to develop a tailor-made solution to suit each client.
Commercial Sourcing Overview 2013/14 Compass Group PLC
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Compass Group Ireland 3rd Floor 43a Yeats Way Parkwest Business Park Dublin 12 T: +353 1 629 6100
COM/00224