Jennie-O Turkey Store Cloud Computing Menu Management (C2M2

Effective Use of USDA Foods
Entitlements and Banks
Sean Leer, Vice President, Gold Star Foods, Inc
Barry Sackin, President, B. Sackin & Associates
Myron Shelton, Technology Services Director, RealTime Solutions
July 15, 2014
2:15 PM
Learning Objectives
1. Attendees will gain knowledge and understanding of the value of
their USDA Foods Entitlement and how to maximize it.
2. Attendees will look at online tools that can help plan and monitor
utilization of USDA Foods entitlements.
3. Attendees will understand the importance of continual monitoring of
inventory balances at further processors of USDA Foods.
USDA Foods Entitlement
• Performance-based payment
• SY 2014 = 23.25¢ per lunch served
• Planned Assistance Level (PAL)
• Rate X lunches served
In the Bank
• PAL is a “bank” account used to “buy” food items offered by
USDA Foods program
What Does a Commodity Cost?
+
+
=
Fair Market Value
state fees
storage and distribution
true cost
Spend Your Money Wisely
• Commodities are NOT free
• Entitlement $ are revenue
• Calculate best use
When Do You Receive the Value of Your
Entitlement?
• Diverting to a processor is only the first step
• No value until ordered, received and used
• Leaving commodities in the bank LOSES revenue
Commodity
Management
Tools to Help
• Internet tools track your commodities
• Processors offer tools to maximize the value
• Let’s explore some examples
Online Menu Planning
Commodity Diversion
Planner
NOTE: This presentation contains CONFIDENTIAL information for RealTime Solutions use only. © 2014 Real Cool Synchrony, Inc.
Menu Planning Tool/
Commodity Diversion Planner Overview
• Powerful, interactive web-based tool for USDA Foods
order planning and menu management
• Streamlines planning process by collecting all data in one
central location
• Up to date product information
• Replaces traditional “sometimes outdated” spreadsheets
or forms
• View all historical data (plans)
• Pull in calculated data from a previous year for planning in
current year
Menu Planning Tool/
Commodity Diversion Planner Overview
• Facilitates Communication for:
• You, the School District
• Brokers
• State Agencies
• Commercial Distributors
• Multi-agency Groups
• Foodservice Management Companies
• GPOs
• Co-ops
• Manufacturer Contacts
Commodity Diversion Planner
Overview
Calculating Your Estimated LBS
Getting Started:
Enter projected carry over you may have at the end of the school year
OR
Enter diversion amounts if you know them
Adding Products
Select products you plan
to menu from dropdown
list of all products available
Indicate Servings/Meal and Menus/Year
or Total Cases
Enter how many meals you
serve and how many times
you plan to menu the product
OR
Enter the total number of cases
you will use during the year
Indicate Servings/Meal and Menus/Year
or Total Cases
Add to Plan
Commodity Worksheets
Monthly Planning
Provide monthly detail of products you intend to serve by indicating the
number of cases planned each month;
the tool will alert you when you have planned too much or too little
Submitting Plan
As part of the submission
process, you will be
prompted to email your
submitted plan to others,
like your distributor,
individuals with district,
etc.
Submitting Plan
After submitting a
plan, you will receive
email verification of
the submitted plan’s
details
Product Guides
View your Plans
There is a historical account of all plans previously submitted available
so you can click on a particular plan for reference
Quarterly E-Newsletter
Quarterly E-communication updates
key Stakeholders on the following:
• Timely updates on commodity
balance and usage
• Commodity Diversion Planners
actual purchases versus planned
purchases
Maximizing USDA Entitlement
Distributor
Realizing the value of Commodities
• What is the process?
• What are the variables?
• How does it happen?
Watch the dollars…
Pass Thru Value
• Fee for Service
• Modified Fee for Service
• Automated Rebate
• Net Off Invoice—Indirect Discount
The Process….
USDA Foods Internal Process Guide
School District
Yes
No
Distributor
Receive Order From
Customer
Yes
Information Correct?
No
COOP Process—Single Bank
CO-OP
K12 Food Solutions
Processor Link
Direct Processors
COOP Members
School 1
School 2
School 3
School 4
COOP
• COOP house Entitlement Balances for Super CO-OP Members
• Wait and receive sales transaction from various commodity processors
• Make adjustments based from sales and other processes such as
allocations and rewards
Gold Star Foods
• Download COOP’s balance daily through FTP transaction.
• Compare COOP’s balance against Gold Star Foods’ balance.
• Perform adjustments on COOP members entitlement dollar balances.
• Sends sales transaction to various commodity processors (K12, Processor
Link, Rose and Shore)
COOP – GSF Daily Reconcile Procedure
Entitlement
Allocation Calculation
COMMODITY ITEM
CASE ORDERED
SCOOP $ PER CASE
TOTAL SCOOP $ SPENT
PER ITEM
Blueberry Muffin
2
$2.4923
$4.9846
RAW ITEM
POUND PER CASE
(PPC)
PASS THRU VALUE
(PTV)
PPC * PTV
Blueberries
1.25
$1.4204
$1.7755
Eggs
0.87
$0.8245
$0.7173
TOTAL SCOOP $ PER CASE
$2.4923
Evaluate this session online.
Visit onthego.schoolnutrition.org
on your cell phone’s browser.
Click the “Evaluate Your Sessions” link.
THANK YOU!
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