| |
|
|
| |
| Distribution Programs |
| |
Commodity Distribution Program (CDP)
|
| The Commodity Distribution Program (CDP) is a group of supplier programs
that have been negotiated for each metropolitan area using a “Best in Class” approach where volume can
sustain multiple commodity program suppliers (i.e., - in each respective market, we have separate fresh meat
and poultry, seafood, produce, and liquid dairy programs). The programs area developed using cross-discipline
teams within a geographic supply market. |
| |
The primary objectives of the CDP Program are:
|
| |
Provide service level that equals or exceeds current requirements. |
| |
Provide product quality, consistency and availability that meet property requirements. |
| |
Realize a reduction in the total cost of products and services (including product costs,
processing costs, inventory costs, and labor costs). |
| |
Improve overall productivity. |
| |
Ensure continuity of support. |
|
| |
The implementation process of the CDP Program includes:
|
| |
Identification of the strongest suppliers in a market or region. |
| |
Solicitation of proposals using Hilton's multi-unit leverage. |
| |
Completion of a pre-bid audit and investigation. |
| |
Establishment of program parameters. |
| |
Implementation of a "cost plus" program. |
| |
Conducting ongoing compliance audits and inspections. |
|
| |
Program Commitments
From Participating Suppliers:
|
| |
Provide the product(s) at a predetermined markup. |
| |
Maintain sufficient inventory levels. |
| |
Stock products requested by the hotel. |
| |
Make deliveries only at scheduled times. |
| |
Assist the hotels in emergencies. |
| |
Provide local market information. |
| |
Provide monthly price/consumption reports and order guides. |
|
| |
From Participating Hotels:
|
| |
Purchase a minimum of 80% of the total dollar spent on food products through the distribution programs. |
| |
Place orders directly with the designated supplier. |
| |
Purchase all program category products from the distributor. |
| |
Purchase products exclusively inventoried for our property. |
| |
Maintain a disciplined order/delivery schedule. |
| |
Contact the Regional Supply Management Office if pricing or services issues cannot be resolved directly with the supplier. |
| |
Maintain the confidentiality of supplier pricing. |
|
| |
| HW Supply Management's Super Regional Distribution Program (SRDP) |
| HW Supply Management's Super Regional Distribution Program (SRDP) provides the opportunity
to leverage the volume of the properties within a market or region to maximize efficiencies, drive economies of scale, and
reduce base product costs. While Sysco Foodservice services most markets that have been set up through this program, there are
additional distributors where existing relationships have prevailed as the best program for the specific markets. The SDRP not
only produces improved efficiencies and cost reductions, but it also allows the necessary flexibility to quickly make changes in
individual markets and/or properties without affecting the entire program. |
| |
| The SRDP services all U.S. markets for Hilton Worldwide, with the exception of Hawaii, New Orleans, Los Angeles,
Phoenix, Alaska, Minneapolis, and Pittsburgh which are serviced by other distribution networks. |
| |
Hotels participating in the SRDP must agree to:
|
| |
Purchasing all program category products from the designated supplier. |
| |
Complying with the pre-established number of weekly deliveries and average dollar value per delivery. |
| |
Providing the supplier with forecasted needs. |
| |
Purchasing products exclusively inventoried for Hilton Hotels. |
|
| |
|
