Let's have a coffee together
Tenderboek Alsea
Let’s have a coffee together! Request for proposal | October 2022
the convenience company
,, Let’s have a
coffee together!” t’s ff t t r!
Dear Mr Valero Elias,
First of all, we would like to thank you for inviting us to participate in your Request For Proposal.
Lekkerland has extensive experience in the field of food service and on-the-go consumption. For more than 65 years, we have been providing our services to the best customers in the out-of-home sector. In recent years, more and more fast service formulas have discovered what we can do for them. Food service and on-the-go consumption is in our DNA. Lekkerland attaches great value to long-term relationships with its customers. The fact that this is appreciated is evidenced by our customer portfolio with many partners who have been doing business with us for more than 15 years. We are proud of the fact that many customers continue to trust us and value Lekkerland’s flexibility, solution-oriented approach and approachability. In order to keep our promises, we make ongoing investments in digitalisation, sustainability and security. We would also like to enter into such a long-term cooperation with Alsea. Together with you, we want to fulfil our mission of being “your most convenient partner”, so that you can continue to focus on your guests in your Starbucks locations. We are confident that Alsea will also enjoy working with Lekkerland. After all, nothing is better than doing business together. We looking forward to have a coffee together!
On behalf of Team Lekkerland Kind regards,
Olaf Gockel
Nard Schrama
Director Sales, Lekkerland Nederland B.V.
Sales Manager, Lekkerland Nederland B.V.
the convenience company
Table of contents.
Section 1 / #aboutLekkerland
08
Section 2 / #operations&service
18
Section 3 / #strategic
34
Section 4 / #logistics
40
Section 5 / #financials
50
Section 6 / #pricing&conditions
54
Section 7 / #transitionplanning
66
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Always on the move.
the convenience company
Lekkerland Nederland Facts & Figures.*
Over 65 years’ experience. 750 employees. 20.000 items in the range. 3 warehouses. 66.000m 2 storage capacity. 151 vehicles.
6-7 deliveries days a week. € 13,7 bn turnover in 2021. More than 8 million distribution kilometres driven each year. More than 2 million orders each year. More than 40 million order lines each year. More than 75 million colli each year.
Around 375.000 distribution stops per year. Around 50.000 distribution routes per year.
Product availability up to 99%. Nearly 16.000 outlets supplied. Around 35.000 delivery routes with 0,5 million stops each year. Reliable 24-hour service from ordering until delivery.
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Section 1
#aboutLekkerland
Whether it’s your local sandwich shop, a convenience store or the petrol station; Lekkerland works with many types of entrepreneurs to ensure that they keep their customers happy and satisfied. It’s a role we play with pride. One we have been able to fulfil for more than sixty years. We maintain long-term relationships with the entrepreneurs we work with. They appreciate the service, reliability and constant high quality that we deliver. Our products and solutions represent convenience for thousands of entrepreneurs in five different European countries. We offer a wide range of products that meet the needs of consumers. By listening carefully to those needs right from the outset, we currently outperform almost every other wholesaler in terms of both fine-mesh and broad distribution. At Lekkerland we always do something extra. We know changing consumer needs and market dynamics like no other and know how to bring them together. Keenly focused on modern consumers who choose fresh and quality and on the entrepreneur who serves them. For more than sixty years now, we have been the specialist in convenience products. With tailor-made and logistic solutions with which we also want to make a difference for Alsea and all its customers.
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,, Foodservice is the future. Lekkerland is helping customers to realize their ambition.” Freek van Beek, Managing Director
Our mission.
Convenience is in our DNA.
As specialist in on-the-go consumption, we support our customers to become even more successful. Our innovative services, tailor-made logistics and a broadly-based wholesale product range make us the expert, committed and reliable partner for our customers in many countries of Europe. Our focus is on the needs of our customers and consumers. We - that is the team of Lekkerland.
Convenience has become more than a channel. It is a lifestyle for many consumers. Lekkerland is the expert for tailor-made concepts and solutions in the convenience sector. What we offer stretches far beyond a product range. Lekkerland is the full-service specialist in the field of convenience.
Our corporate culture.
Experience, experience, experience.
It is our vision to be “Your most convenient partner”. We want to be the very best partner possible. Every day. In everything that we do. To achieve this, we rely on three pillars: agility, entrepreneurship and clarity. We are proactive. We assume responsibility. We deliver on our promises.
Our knowledge runs deep. Over the past 65 years, we have acquired expertise in dozens of market segments. We are in daily contact with our customers in Europe – on site through our logistics or customer consultants, but also through our service desks. We regularly exchange experiences with leading manufacturers and sector experts. We collaborate intensively with know- ledge partners.
Our strategy.
We live in a world where the needs and expectations of consumers and thus the requirements of our customers are changing ever faster. To keep pace, our company strategy consists of a mix of fixed cornerstones and ongoing adjustment to a dynamic market environment. The consistent pursuit of this strategy is an important building block on the journey towards our vision “Your most convenient partner”. Our strategy defines the most important customer channels, our strategic action areas, and relevant enablers or supports.
Our channels. • petrol • travel • leisure • foodservice in retail • fast service • convenience stores
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Logistics service model.
Lekkerland: more than 65 years of experience!
Lekkerland has an intricate distribution network consisting of three distribution centres. This enables us to reach every customer nationwide within a maximum of two hours. Our logistics service model allows a customer to decide for itself where and how to operate efficiently. This creates flexibility at the Starbucks locations where it is needed and enables customers to make savings where possible. For example, while some locations require seven delivery days, others can manage with only two or three delivery days. Lekkerland calculates its rates on the basis of a cost-driver model. The model can be customised according to the customer’s requirements on the basis of various logistics parameters, such as deliveries/ stops, orders, order lines, containers/ volume and packages. This model creates awareness so that we can focus on the correct deployment of the required activities and resources. It also provides insight into logistics costs. A lot can happen in a year. Think of an increase in the number of accounts or an organic growth of the business due to, among other things, rising consumer demand. Such developments, but certainly also the coronavirus crisis, naturally have an impact on the economic situation and thus also on Lekkerland and its customers. In the past year in particular, Lekkerland has shown how resilient and flexible it is. Lekkerland’s network and capacity in terms of warehousing, transport and personnel can be designed to accommodate many different scenarios. In this way, we can on the one hand continue to grow and on the other hand look ahead and anticipate an expected growth in the coming year. Lekkerland is also
Our customers are retail formulas that offer the con- venience of on-the-go consumption. These include the fast food & food service sectors, petrol (Total, Shell) and travel (NS and Schiphol Airport). Lekkerland has extensive experience in the field of food service and on- the-go consumption. Indeed, with a history that goes back more than 15 years in the foodservice, petrol and travel channels. In recent years, more and more fast food & food service formulas have discovered what we can do for them. We added BackWERK to our portfolio in 2018, followed by Taco Mundo and Subway in 2019 and 2020, respectively. Foodservice and on-the-go consumption is in our DNA. We are convinced that we are the right partner for Alsea too! Lekkerland has closely studied Alsea’s desired service levels and requirements. As with other new customers, we will certainly have to make some process adjustments, but we do not foresee any insurmountable obstacles.
Chain integration with suppliers/ customers. Together with suppliers and customers, Lekkerland is constantly looking for solutions within the chain that will ensure greater efficiency and sustainability. Take our backhaul logistics for example: when we drive back from a delivery to a customer, we collect goods from our supplier along the way.
constantly looking at how things can be done differently or even better. For example, route optimisation is a constant point of attention.
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Return flows.
The “reverse logistics” initiative is a Lekkerland service which is already used by several customers. Instead of taking empty roll containers back with them, our drivers return them together with various types of packaging material such as cardboard, paper and film. In this way, customers are not left with the waste, but Lekkerland helps with collection and recycling. Lekkerland also started in returning coffee grounds. These can be used by mushroom farmers. They can use this for their production process. Lekkerland develops this service further and refines it for each customer. At individual customer level, we look at which types of products can be returned and how we can organise this return flow efficiently. In addition, we ensure that return flows, such as article packaging, are scanned and fully traceable.
Efficiency in logistics.
To deliver to our customers quickly and correctly, we use the latest warehouse management technologies in our distribution centres.
As further automation is essential in improving efficiency, we are, for example, investing in:
• Drones to monitor our inventories and carry out cycle counting more frequently and more accurately. • Track and trace of roll cages will tell us where every roll cage is and has been. SSCC labeling will enable this.
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Board of Management.
Freek van Beek, Managing Director Freek joined Lekkerland in 2014 and since 2019 he is ultimately responsible for all Lekkerland activities in the Netherlands. He is also a board member of the FoodService Institute Netherlands and has 25 years of commercial experience in various international companies including Office Depot, AMS sourcing BV and KLM Inflight services. Freek studied at the Hotel Management School Maastricht. Olaf Gockel, Director Sales Olaf has extensive (international) experience in the world of food service and retail with companies such as Henkel and Numico/ Nutricia (Danone). Before joining Lekkerland, he was Commercial Director at Farm Dairy and FrieslandCampina.
Stephan van Acht, Director HRM & QM Stephan has over 25 years of HRM experience at companies such as Dumeco (VION), Friesland Foods Fresh Western Europe and Sligro.
John van den Berg, Director Operations John has extensive experience in the logistics sector. He has worked for companies such as Schuitema (C1000) and Hollander Barendrecht. Before joining Lekkerland, he held the position of Logistics Director at Sligro.
Peter Steeghs, Director Finance & ICT In his role, Peter is responsible for all Finance and ICT related activities in the Netherlands. Before joining Lekkerland, Peter worked for approximately 4 years as Director Group Control at Vion N.V. in Boxtel. Prior to that he worked for over 8 years at Office Depot in various international Finance roles. Peter studied at Nyenrode and has been a Chartered Accountant since 2003. Rob Claassens, Director Buying & Category Management Before joining Lekkerland, Rob worked as Unit Manager KW / Non Food at PLUS Retail. Rob has gained many years of experience in the retail sector at, among others, Venco, Superunie and Kruidvat.
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Section 2
#operations& service
At Lekkerland, everything revolves around the customer. Providing service is in our DNA. This means listening to customer needs and always keeping to agreements. Our customer-oriented approach and high service level enable us to be and remain ‘your most convenient partner’ for each of our customers. Our customer service department does everything in its power to answer or resolve every question, complaint or report as quickly and best as possible. We always try to create optimal convenience for our customers so that they can focus on their business.
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,, Let’s go together for the best taste.”
Monitoring and optimisation
Quick response, targeted actions
We are working on a dashboard where the customer service can monitor certain parameters, so that we can keep the contact moment with the customer as short as possible. Think of the average waiting time; during peak moments we work with a callback request. This way, customers do not have to wait long and are called back by customer service at a later (quieter) moment. In the meantime, the customer can continue running his business. We also monitor the number of calls and complaints per day and the call duration. If we see patterns or a significant increase in the number of calls, we immediately look for a solution with, for example, the Operations Department. Every report is recorded in the CRM system. The customer service department keeps the sales advisors informed of the complaints and reports, so that they know what is going on with their customers. Everything remains transparent and everything is used to prevent similar problems in the future and to continue process optimisation.
From defects to ‘best before’ issues to container changes: if there is a problem, a customer can report it in various ways. For example, by telephone, but also via the app, lekkerland24.nl or email. As soon as Lekkerland’s customer service receives a report, a ticket is created. Depending on the type of report and the subject, the responsible department is then immediately informed. Thus, our customer service is the spider in the web that ensures that reports are handled without delay. Of course, customers can also use their own system for reporting complaints.
Our customer service team learns every day
Telephone calls are recorded for training purposes. Every month, about four random conversations per customer service employee are evaluated and reflected upon. In this way, we coach and steer our own employees so that customers can be helped even faster and better. Colleagues within the department also regularly listen in during a phone call; this way they can provide each other with feedback. In addition, we train our customer service employees to better address a customer’s emotion before looking at the content. After all, small acts of courtesy, such as personal approach and involvement, can make a big difference and contribute to customer satisfaction. All in order to constantly optimise customer satisfaction.
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,, All our HR systems must be geared towards the effectiveness and sustainable employability of our employees.”
Team of specialists; from Customer Service to Account Support Not only customer service is always on hand for customer locations; the Account Support department also plays an important role. Daily operational matters with HQ’s are handled by the Account Support team. They are the primary point of contact for employees at Alsea. The Account Support department ensures that questions are directed to the right people within Lekkerland and that they are dealt with correctly. Problems or complaints which affect multiple locations such as a recall, are coordinated by Account Support and reported to Alsea HQ. Alsea can then take care of further coordination/communication with the franchise owners. Account Support also has a coordinating role in promotions and automatic shipments are carried out satisfactorily. Agreements on implementation are already standardised but can be adjusted in consultation with Alsea. Sometimes it can happen that a franchise owner has an additional request. Suppose a Starbucks location needs an extra delivery because, for example, too little has been orde- red. Think of an extra drink order because of the warm weather. At such times, our customer service depart- ment will immediately contact the shipping department to ask whether an extra delivery day is possible. If there is time and space and the delivery is on the planned route, we will of course be flexible in dealing with such an extra request. That too is the convenience of using our customer service. Extra request, no problem!
Stephan van Acht, Director HRM & QM
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Dedicated accountmanager.
A proactive role and attitude.
Lekkerland appoints a dedicated account manager who is responsible for customer satisfaction and the proper execution of contractual agreements with Alsea across all Lekkerland departments. The account manager is supported by a team of specialists in the Alsea account team. Daily operational matters with Alsea HQ are handled by the Account Support team. They are the primary point of contact for employees at Alsea HQ. In addition, this team includes specialists in the areas of stock management, supply chain, shipping, quality management, finance and IT, who will be involved whenever the situation requires. Naturally, these team members can be approached directly if required. We think there is always room for improvement. Therefore we also work with an Improvement Agenda at Lekkerland. Based on process/cost analyses, we discuss and evaluate the operational processes and KPIs together with Alsea, and take a critical look at specific points that can be made quicker, easier, more efficient or just more sustainable. We turn these agenda items into action points in order to save time and costs and to keep improving operational cooperation. Thanks to this continuous Improvement Agenda, we constantly make points for improvement transparent and accessible and we are able to come to a solution or optimisation in a flexible manner. Everything for a better performance and even greater success. Improvement Agenda.
Our customer service revolves around more than providing answers or solutions. Lekkerland also has a strong, proactive attitude towards its customers. For example: a truck breaks down, for whatever reason. Then the customer service team calls the involved customers to inform him/her of the delay. Even during busy periods, such as around the holidays, we let the franchise owners know in advance that we will do everything possible to deliver the order as quickly as possible. A proactive role in which customers know exactly where they stand, without any unwelcome surprises later. Customer satisfaction is of paramount importance to us. Which is why customer satisfaction is continuously measured by means of the Net Promoter Score (NPS). Every month, we call X number of customers and ask them how likely it is that they would recommend Lekkerland. Customers give us a figure/score and on the basis of the feedback Lekkerland proactively works to turn areas of concern and improvement into action points. This critical approach is aimed at improving our score, but above all at being able to offer customers an even better service. Even if we score an 8 or 9, we are still eager to learn about new ways and tips to improve our service. From business review to successful cooperation. Lekkerland sees regular business reviews as the key to successful cooperation. We organise these business reviews in the form of a monthly meeting. The meetings are attended by the account manager and the Account Support team. Marketing updates are shared, the implementation of automatic shipments is discussed and current issues such as promotions and projects are discussed. A recurring agenda item is ‘processes & improvements’ so that cooperation is further developed as efficiently as possible. A quarterly review with the Lekkerland Account Manager takes place and each year we plan a review attended by both the Account Manager and the Lekkerland (Sales) Director.
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Quality standards: food safety & certifications. Thanks to ISO9001 certification, our processes comply with the international standard for quality management systems. In addition, Lekkerland has around 65 years of experience in the distribution of ambient, frozen and (ultra) fresh products. We monitor 24/7 all temperature flows in our distribution centres as well as in the 3T trolleys and adjust them if necessary. Lekkerland is also BRC certified: the storage and distribution of foodstuffs complies with the food safety requirements set by the ‘British Retail Consortium’. At all our distribution centres we have the GFSI system BRC certified with at least level A. We have also recently acquired a fully implemented, certified and operational ISO14001 system at all our sites. This can be subject to both internal and external audits. Lekkerland works with various cross-dock suppliers who deliver fresh products to Lekkerland. In this pro- cess, we strive for complete traceability throughout the chain. For example, receipts are scanned directly, thus avoiding errors and ensuring the most complete delivery possible with an optimal ‘best before’ date. Upon delivery of the goods, the customer also receives a receipt on which the temperatures measured at that moment are indicated. Lekkerland uses a system to prevent potential risks: the Business Continuity Management system. The aim of this system is to identify potential business risks in advance and to take preventive measures in response, so that the continuity of collection and delivery can be guaranteed at all times. In addition, we have implemented a system that intervenes in the event of contingencies that might cause a risk of supply. This system ensures that collection and delivery to our customers can always continue: the Disaster Recovery Plan. Fresh cross-dock deliveries. Risk management.
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Proactive reporting.
Scanning & tracing.
Every month, Lekkerland discusses KPIs such as delivery completeness and delivery time with Alsea. All requested reports are already “in house” at Lekkerland and can be provided at the requested frequency. Lekkerland can provide periodic reports (e.g. on a daily basis) on stock levels for customer specific ranges. The format can be agreed by mutual consent. However, you can expect more from a partner: As soon as we identify inefficient (ordering) patterns, we report this immediately and offer targeted suggestions and concrete solutions. Using our automated, digital packing slips, customers can immediately process all order information in its own system before delivery of the goods. When scanning a packing slip on a roll container, the customer immediately sees which products are present on the container. We can offer both the electronic packing slip (DESADV) and electronic invoice (INVOICE) via EDI. The way of exchanging the messages can be determined in mutual consultation. Digital packing slips.
We scan more and more physical movements in our distribution centres and add aggregated SSCC labels per load carrier, in combination with DESADV messaging (digital packing slip). Thanks to this commonly used terminology within logistics, we know more and more exactly what is placed on a roll container and we can follow it until delivery. Upon receipt of the goods at a customer, the correct numbers can easily be scanned and automatically entered as stock. After delivery, the documentation comes directly to the customer via e-mail and insight is gained into matters such as temperatures, load carrier registration and delivered orders. For customers, this results in the best possible delivery completeness and fewer service calls, as well as saving time at the physical receiving end of goods; especially at the larger Starbucks locations, where larger volumes are delivered. More scanning also makes our picking system ever smarter. This means that more and more individual processes can be optimised and standardised. This all adds up to a better quality of delivery.
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Deliveries.
Before Lekkerland starts making deliveries, a tour is made of all Alsea Starbucks locations during which the special issues relating to delivery to that particular location are recorded together with the person responsible at that location. Upon return, these notes are included in a description which is then published with the process documents that Lekkerland keeps on its sharepoint site. Any specific matters such as: “call in advance” or “use drive plate” are recorded in the Lekkerland system and become visible as soon as the driver starts loading (“delivery hint”) and as soon as he approaches the customer. Delivery restrictions and vehicle restrictions are recorded in the master data, which provides the Lekkerland plan package with this information. If Lekkerland decides that night-time deliveries are more appropriate for both parties at a particular location, Lekkerland establishes a so-called keydrop delivery contract, whereby both parties sign and hand over the keys. The Lekkerland system registers the location as a keydrop delivery location, and upon execution the driver also notes that this has taken place. Lekkerland supplies many customers in this way. Lekkerland performs 100% of all inventory control with the help of a centralised stock planning department at our headquarters. All inventories at Lekkerland are managed by Lekkerland in full ownership of the product and with full responsibility for service levels, stock values and waste. Seasonal effects, historical sales and forecast are taken into consideration as well as maximum and minimum inventory levels, safety stock levels, Minimum Order Quantity and order & delivery lead times from supplier to Lekkerland. Inventory control.
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Forecasting & Replenishment.
Order retrieval system.
Our Forecast & Replenishment tool will be optimised in the course of 2022. This tool helps Alsea and us to have the right amount of articles available at the right time. In this way, we provide the customers with products with an optimal ‘best before’ date. We also limit out-of-stocks, which is another key factor in guaranteeing consumer satisfaction.
This is common practice within our systems. By default, we use the EDIFACT standard. In addition, we have our own web platform: Lekkerland24. If required, Alsea can make use of the many possibilities of this platform such as: • Ordering from order history (copy order in case of EDI system failure) • Download invoice • Online complaint report, including complaint status • Download ingredient declaration • Location rights management (supervisor account) • Possibility Starbucks environment for customer-specific content • Promotions, special offer leaflet • Extensive information about product ranges, concepts • Create and manage own favourites lists • Search for articles by article number, description, brand and EAN and the various search filters, such as category and product group • View delivery schedule and order history
Seasonality & Public Holiday Ordering.
Lekkerland uses Anaplan to forecast volumes, taking both seasonal patterns and the ‘best before’ date on our stock into account. In addition we have years of experience and historical data available from our customers, with which seasonal patterns are recognised and both the operation and the stock managers are included in the planning. Think of summer/winter influences, (school) holidays, events and public holidays. We also have a so-called public holiday scenario If you have a regular delivery on a public holiday, we will inform you 6 weeks in advance. You will then be given the choice of keeping or rescheduling the delivery day. The choice will be noted and, depending on the choice, further steps will be taken. In the meantime, you will be informed of any deviating delivery times in order to guarantee delivery. Lekkerland delivers on all public holidays with the exception of Christmas Day and New Year’s Day.
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Section 3 #strategic We are flexible, solution-oriented, work with short lines and are extremely approachable. We share our experiences and solutions with all our customers. We work with three distribution centres, have our own ICT department where in-house digital systems are developed. We have our own fleet of vehicles with our own drivers, a very finely-meshed distribution network and almost daily access to everywhere in the service area. This means that we can solve any operational issues quickly. Listening to customers, working together with them and finding real, tailor-made solutions for them; it is deeply rooted in our corporate culture. We do business together! The account manager is supported by a team of specialists in all relevant areas, such as quality management, supply chain, shipping and more. These are also directly approachable for Alsea.
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Lekkerland has included the following focus areas in its strategy for the next five years. For all five focus areas, the idea applies that we are ‘your most convenient partner’ doing business with Lekkerland translates into convenience for Alsea. Lekkerland’s strategy for the future 1. 2. Focus on progressive, sustainable logistics services for our customers. • Continuous improvement of logistics services • Building relationships with partners/suppliers with a clear vision on environment, health and sustainability. Focus on intensive cooperation. • Doing business together: offering customised solutions. • Achieving sustainable improvement in profitability. • Further developing the right product range (future proof).
3. 4.
Focus on Value Added Services. • Retail enablement: offering future-proof concepts, tailored to individual customer needs. • Service aimed at sustainability with a focus on, among other things, circularity, CO 2 reduction and backhauling.
Continues Improvement Program. • Continuous optimisation of internal processes and systems. • High level of automation
5.
Our culture •
Lekkerland strives to be an attractive employer, with a focus on personal attention at individual level, where safety and sustainability are paramount.
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Intelligent Cooling System (ICS).
Digitalisation.
More than 50% of Lekkerland’s trucks are already equipped with the unique and sustainable Intelligent Cooling System (ICS). This is an intelligent cooling system developed by Lekkerland itself, which ensures that the temperature of the products to be delivered remains constant at all times. ICS cools the truck compartments fully automatically. Air and energy are smartly distributed and at the same time the truck’s capacity is used as efficiently and economically as possible. In this way, we can safeguard the customer’s quality requirements and guarantee that products are delivered at the perfect temperature. One need that we often see among our customers is the desire to exchange and link article data. We are therefore developing a so-called Master Data Manage- ment Tool (MDM). This tool ensures that article data is directly available to our customers. This tool will save customers a lot of time and money. An innovative and efficient tool! Article data also includes information about sourcing from local growers or the Nutri-Score of products. We make all information about products and suppliers transparent for customers. This convenient platform will be launched in the course of 2023. Master Data Management Tool (MDM).
Also on the agenda: full digitalisation of our customer portal. This will give Alsea direct access to important information, such as the status of service calls, sales and revenue data, delivery tracking and many more KPIs. The Starbucks locations and Alsea HQ will have access to information that is useful to them. Basic data such as contact information can be updated directly by yourself. Furthermore, all figures, statistics and results are generated systematically. For example, all source data comes from our ERP/EWM or telematics system. We generate KPIs using various BI tools, such as Power BI, Tableau and Anaplan. In addition to our ERP/WMS system, which we have developed ourselves and is called Legmis, we use a middleware system (SAP PIPO) to exchange data with our partners. For example, the exchange of EDI messages. The systems run in two mirrored, physically separate data centres, which are continuously synchronised. ,, Together with you, we want to continue to give substance to
our mission, your most convenient partner, allowing you to stay focused on your customer.”
Olaf Gockel, Director Sales
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Section 4 Logistics. With our finely meshed distribution network, our own drivers deliver quickly, correctly and sustainably. Always and everywhere. Our fleet consists of more than 150 vehicles, including solar-powered delivery vans and environmentally friendly multi-temperature trucks. Our trucks have three different temperature zones (3T), allowing us to transport unrefrigerated, freshly chilled (up to +7°C) and frozen products (down to -20°C) at the same time. In this way, we combine your orders, cut back on journeys and spare the environment. We are on the road 24 hours a day throughout the Netherlands. All logistics services in one hand. Lekkerland ensures that the right supplies are delivered at the right time, so that the franchise owner can focus on his point of sale.
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,, Focused on reliability and flexibility with cost control in the supply
chain and this together with people.”
John vd Berg, Director Operations
One stop strategy.
Within our logistic process, our mindset ‘your most convenient partner’ is central, from the first to the last mile. Due to the fact that Lekkerland’s vehicle fleet can carry several temperature streams at the same time, we can offer a one-stop strategy. The administration of these deliveries is fully digital with the telematics system developed by Lekkerland. In terms of sustainability, Lekkerland is continuously looking for ways to reduce CO 2 , whereby new transport concepts are tested and implemented. Lekkerland is co-signatory of the covenant ‘Green Deal Zero Emission City Logistics 2025‘. In this covenant we work together with logistics companies and government bodies, knowledge institutions and manufacturers. Together, we are looking into new technologies to make city logistics emission-free by 2025. We make use of city hubs and devise innovative concepts and solutions. We are doing a lot of research on alternative fuels. Lekkerland has applied for a subsidy for three hydrogen-powered trucks that will enable us to deliver the three temperature flows of goods (ambient, refrigera- ted and frozen). Zero emission deliveries.
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CO 2 footprint report. How sustainable are we? To gain insight into our CO 2 footprint, we monitor each step in the logistics process. That way, we know exactly where adjustments are nee- ded, we can set concrete goals, such as reducing CO 2 per roll container, and we always have the latest figures and percentages at hand. Take our CO 2 emissions, for example. By 2020, we will have achieved a CO 2 reduction of 24% compared to 2015. We are striving for a fourth Lean & Green Star. The target for 2030 is a minimum CO 2 reduction of 55%. Thanks to new initiatives, we are getting closer and closer and we are convinced that we will achieve this goal. With no fewer than three Lean & Green stars, we are one of the Dutch leaders in sustainable logistics. We are paving the way towards zero emissions and are making a major contribution to the Factor 6 climate objective. The Lean & Green Logistics programme encourages companies to grow towards a higher level of sustainability, reduce CO 2 emissions and optimise costs. We owe these three stars on the one hand to technological innovations within our fleet and on the other to driving each journey as economically and efficiently as possible. We think ahead and, together with the frontrunners, discuss concrete improvements for the next steps within Lean & Green. For example, we are one of the first companies to have drawn up a plan of action so that every vehicle in our fleet is provided with a fourth star Three Lean & Green stars.
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the convenience company
From picking to automatic invoice.
Electronic proof of delivery system.
As soon as an order is picked in the warehouse, an invoice is automatically generated. The next day the order is delivered and the invoice is then visible in Lekkerland24. If created on the day of picking, the invoice is clean with the exception of any picking errors made by our staff.
We receive a proof of delivery (pdf) from the telematics PDA, showing the signature of the recipient of the delivery. The recipient signs for proper receipt of the packages (no visual damage), completed packaging transactions and payment agreements, as stated on the invoice. The content of the POD is also processed via an XML interface. This file contains, among other things, the packaging data that we use to settle the balance differences of the delivered and returned packaging, stop times, delivered articles, complaints, any HSSE mismat- ches and more. During the delivery all the transactions are captured together with the customer and our driver. The customer signs for a proper receipt of the packages (no visual damage), completed packaging transactions and payment agreements, as stated on the invoice. The content of the POD is sent over to our ERP, where the transactions are processes and a copy of the POD is sent out to the customer for your administration. On the POD you’ll see the amount of loading materials, possible complaints, delivery times, any HSSE mismatches and more.
Return request.
A request for a return order must first be made via customer service. A return slip will then be issued. The driver takes this return slip with him on the next delivery. You can then hand over the goods and after an initial visual check, the goods are taken back to the warehouse. There, the goods are processed (returned to stock, returned to supplier or destroyed) and a credit note is issued. This credit note is also visible in Lekkerland24.
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Recall & withdrawal procedures.
Holiday ordering schedules in advance.
When quality management receives a recall, the priority of the recall is determined together with the NVWA. We then meet with a pre-selected team to determine the steps and actions. We make a list of customers who have received the affected batch. Customers are informed of the recall both by email and by telephone. As a customer, you are informed of the action that is expected of you. This includes destroying or disposing of the product yourself so that it can be taken back by the Lekkerland driver to our distribution centre for fu- rther action. Non-independent customers are informed via their own head office. The above procedure relates to regular products. In the case of customer-specific products, Alsea will of course be involved in the pro cess. Emergency orders & replacement of mispicks & damaged products. When our central planning department is contacted with a question about delivery time, we immediately make a proposal to the customer. If the customer agrees to the proposal, we will start the delivery process immediately. If no agreement is reached, we look for alternative possibilities. In extreme cases, a courier may be used. In the case of an urgent order, for example due to a system error, we work according to a specific scenario with predetermined steps. Alsea is involved in these steps for the right result and optimal satisfaction. In the case of missing or damaged products, our customer service department, together with Alsea, will determine whether a Starbucks location is still sufficiently stocked and to what extent an immediate delivery is required. If the customer has sufficient stock, the product can be re-ordered with the next order. If not, we will reserve an extra route after consultation with central planning.
When the regular delivery day falls, we inform customers at least six weeks in advance. Together we check the wishes and inform Alsea about the possibilities. As soon as arrangements have been made, a confirmation is sent by email. Amongst other things, we inform Alsea about adapted leadtimes for ordering and delivering during these adapted delivery schedules. Lekkerland delivers on all public holidays except Christmas Day and New Year’s Day.
49
Section 5
#financials Lekkerland strives for long-term relationships with all its customers. Within a long-term relationship, we believe that trust, mutual understanding of the business, growing together and striving to make the supply chain as cost-effective as possible are key. We recognise and acknowledge that growth and efficiency will ultimately lead to the lowest possible costs in the chain, and will therefore provide a financial benefit to Alsea and its Starbucks locations.
51
,, Be in control with respect to proces ses and costs for the purpose of an efficient and profitable operation.”
Peter Steeghs, Director Finance & ICT
Strong purchasing cooperation.
At Lekkerland, we strive to make every aspect of a product as transparent as possible. We involve our customers in purchasing processes, provide insight into price developments and share the latest news from the market. Via a digital platform, we keep Alsea if needed up to date with everything from raw material price developments to the extent to which a product or supplier is sustainable.
Transparency of purchase prices.
In order to guarantee the strongest purchasing position, Lekkerland has together with a number of major players in the out-of-home market formed the Maxxam purchasing association. In this way, we join forces in order to negotiate the best conditions and offer competitive prices. Lekkerland provides insight into the process by which the purchasing association arrives at price changes.
This process consists of a number of core activities:
• Continuous market analysis and analysis of (price) developments of raw materials (commodities). • Determining the relative market position of out-of- home compared to the food retail channel. • Strategic negotiations on the basis of a proactive or appropriate reactive approach.
53
Section 6
#pricing&conditions
55
Parameters and tariffs.
Parameters and tariffs Lekkerland calculated the price per kilo and per package based on the data supplied by Alsea, which resulted in the parameters set out below. Lekkerland calculated the price per kilo and per package based on the data supplied by Alsea, which resulted in the parameters set out in the figure below.
Kilograms per co For Lekkerland the calculated based on different activities i important to have t the number of kilos determining the fee provided we the res
Transport volumes
Direct
Via Bidfood Totaal
Kg distribution
1.834.922
1.054.346
2.889.268
Colli's distribution Average KG per colli
422.629
289.890
712.518
4,3
3,6
4,1
Pallets distribution (Bidfood)
3.221
3.221
Volume full year in kg
RC distribution Stops distribution
14.271
14.271
Direct
4.576
104
4.680
Ambient
801.86 824.24 208.80
Locations
31
1
32
Chilled Frozen
RC / pallet per stop
3,1
31
X-dock Totaal colli
Colli per stop
92 30
2.787
1.834.92
Colli per RC / pallet
90
Kg per stop
401 129
10.138
Volume full year colli
Kg per RC / pallet
327
Direct
Ambient
248.99 100.13
RC / pallets per week average Stops per week per location avg
274
62
Chilled Frozen
2,8
2,0
73.49
Stops per week avg
88
2
X-dock Totaal colli
422.62
NL 24
BE
Bidfood
Outlets
7
1
KG per colli
Direct
Stops
3848
728
104
Ambient
3 8 2
Roll cages/pallets
12714
1557
3221
Chilled Frozen
57
X-dock Totaal colli
4
Kilograms per colli.
Other assumptions and sta • Cost level 2023 is used in the • Fuel prices set at € 1,71 • Logistic service Bidfood, nor pallets. With no further requ • 6 of 7 Belgium locations are Belgium • Main stock will be allocated * Optimization with mutual or a requirements could lead to red Bidfood Parameters deviation These parameters are discussed periodically between Alsea and parameters relating to kg/colli deviate by more than 5% (+/-), reason to revise tariffs.
For Lekkerland the driver for cost is volume. Costs are calculated based on the number of handlings in the different activities in de supply chain. For Alsea it is important to have the tariff by the kilogram, therefore the number of kilos per handling unit is key for determining the fee per KG. Based on the data provided the result is as follows in the figure below. Kilograms per colli For Lekkerland the driver for cost is volume. Costs are calculated based on the number of handlings in the different activities in de supply c ain. For Alsea it is important t have the tar ff by the kilogram, therefore the numb r of kilos per handling unit is key for determining the fee per KG. Based on the data provided we the result is as follows in the figure below
8
8 1
1
Volume full year in kg
1
Direct Via Bidfood Totaal tender Totaal Alsea
0
Ambient
801.867 1.054.346
1.856.213
2.011.298 2.249.271
2
Chilled Frozen X-dock
824.247 208.808
- - -
824.247 208.808
617.390 93.786
-
-
Totaal colli
1.834.922 1.054.346
2.889.268
4.971.745
Volume full year colli
Direct Via Bidfood Totaal
Totaal Alsea
Ambient
248.995 100.134 73.499
289.890
538.884 100.134 73.499
725.837 508.473 456.930 450.736
Chilled Frozen X-dock
- - -
-
-
Totaal colli
422.629
289.890
712.518
2.141.976
d
KG per colli
Direct Via Bidfood Totaal
Totaal Alsea
Ambient
3,2 8,2 2,8
3,6
3,4 8,2 2,8
2,8 4,4 1,4 0,2 2,3
Chilled Frozen X-dock
- - -
-
-
Totaal colli
4,3
3,6
4,1
Other assumptions and starting points.
• •
Cost level 2023 is used in the calculation
Fuel prices set at € 1,71
• Logistic service Bidfood, normal gathering on pallets. With no further requirements* • 6 of 7 Belgium locations are delivered by Conway Belgium • Main stock will be allocated in Waddinxveen.
* Optimization with mutual or additional requirements could lead to reduction or uplift in tariffs Bidfood
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I T t N d s K C K O T P P K C K O TARIFFS DIRECT DELIVERY Per colli on stock (pick tariff) NL & BE € Tariff logistical service For the tariffs we propose a logistical fee on the drivers picking, delivery and roll cage handling. For the picking of direct delivery goods, it is fixed for all. For the delivery and roll cage fee we suggest a break down per country. In this way the Dutch outlets don’t have to pay for the more expensive distribution to the Belgium locations Based on our model and the provided data they will be as follows: Per RC distribution NL Per stop distribution NL € € Per RC distribution BE Per stop distribution BE TARIFFS DIRECT DELIV RY Per colli on stock (pick tariff) NL & BE € Tariff delivery Bidfood The logistical setup for the delivery to Bidfood as a completely different character, therefore other tariffs are applicable. There is a picking rate and an overall tariff per drop based on full truck loads twice a week. € € 21,42 63,35 KG 1.834.922 422.629 0,69 Colli Kg per colli Per RC distribution NL Per stop distribution NL 4,3 11,19 63,32 Overall price per kg € € € 0,413 0,395 0,558 Price per KG NL Price per KG BE Per RC distribution BE Per stop distribution BE roll cage fee we suggest a break down per country. In this way the Dutch outlets don’t have to pay for the more expensive distribution to the Belgium locations Based on our model and the provided data they will be as follows: Tariff value added services In addition to the tariffs above there are also fees determined for de-stacking the roll cages and if applicable key drop or over night deliveries KG 1.834.922 Colli 422.629 Kg per colli 4,3 Overall price per kg € 0,413 Price per KG NL € 0,395 TARIFFS VIA BIDFOOD Per colli stock (pick tarief) € 0,659 654,13 € 21,42 63,35 € € 0,692 11,19 63,32 Keydrop location per stop Pick up K&N Utrecht per tour Tariff value added services In addition to the tariffs above there are also fees determined for de-stacking the roll cages and if applicable key drop or over night deliveries Indexation The tariff per KG will be adjusted yearly on the 1st of Jan the report: “Cost development (in %) in traffic by road”, NEA Index “fijnmazige distributie op colloniveau” exclud development of fu l costs. Fuel cost development will b separately based on independent figures of an open sou Colli 289.890 Kg per colli 3,6 Overall price per KG 0,246 282,00 Value added services De-stacking per stop € € € 13,13 12,50 Keydrop location per stop Pick up K&N Utrecht per tour 282,00 I T t N d s € 1.054.346 T P T T B t a b P Value added services De-stacking per stop Price per KG BE P r deliv ry (max 33 pallets) KG € € € € 13,13 12,50 0,558 b
Tariff logistical service.
For the tariffs we propose a logistical fee on the drivers picking, delivery and roll cage handling. For the picking of direct delivery goods, it is fixed for all. For the delivery and roll cage fee we suggest a break down per country. In this way the Dutch outlets don’t have to pay for the more expensive distribution to the Belgium locations
Based on our model and the provided data they will be as shown in the figure on the right.
Tariff delivery Bidfood. iff logistical service the tariffs we propose a logistical fee on drivers picking, delivery and roll cage ndling. For the picking of direct delivery ods, it is fixed for all. For the delivery and cage fee we suggest a break down per ntry. In this way the Dutch outlets don’t e to pay for the more expensive ribution to the Belgium locations ed on our model and the provided data y will be as follows:
The logistical setup for the delivery to Bidfood as a completely different character, therefore other tariffs are applicable. There is a picking rate and an overall tariff per drop based on full truck loads twice a week.
IFFS DIRECT DELIVERY colli on stock (pick tariff) NL & BE €
0,692
RC distribution NL stop distribution NL
€ €
11,19 63,32
Tariff value addes services.
RC distribution BE stop distribution BE
€
21,42
In addition to the tariffs above there are also fees determined for de-stacking the roll cages and if applicable key drop or over night deliveries € 63,35 1.834.922
i
422.629
per colli
4,3
rall price per kg
€ € €
0,413 0,395 0,558
Indexation.
Parameters deviation.
e per KG NL e per KG BE
These parameters are discussed periodically between Alsea and Lekkerland. If the parameters relating to kg/ colli or m3/colli deviate by more than 5% (+/-), this is a reason to revise tariffs.
ue added services stacking per stop iff value added services ddition to the tariffs above there are also s determined for de-stacking the roll cages d if applicable key drop or over night veries The tariff per KG will be adjusted yearly on the 1st of January using the report: “Cost development (in %) in traffic by road”, using the NEA Index “fijnmazige distributie op colloniveau” excluding the development of fuel costs. Fuel cost development will be settled separately based on independent figures of an open source.
€ € €
13,13 12,50
drop location per stop up K&N Utrecht per tour
282,00
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