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atiboy15

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Reply with quote  #1 
Ok, can anyone chime in on US Foods huge drop today on the stock market? I know its because they missed earnings forecasts and announced a buyout but I am thinking of buying their stock first thing tomorrow morning on the down?
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new to sales

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Reply with quote  #2 
You must be a US Rep , because who else would put money in a company with 5 BILLION in DEBTS. You have so many other options for investments.  The greatest US President for 6 more years, great economy and you think its wise to buy USFD stock!
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bestdsr

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Reply with quote  #3 
Sysco and PFG also went down.
USFD is ok....the company is profitable....missed earnings forecast by .01 cent. Sales were flat....so...is everyone else

If you are an employee take advantage of their stock purchase plan. Even it went down 15% today it is up 40% since they went public. The company we bought today will fit in nicely....
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DENFOODIE

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Reply with quote  #4 
Sysco and PFG also went down.
USFD is ok....the company is profitable....missed earnings forecast by .01 cent. Sales were flat....so...is everyone else

If you are an employee take advantage of their stock purchase plan. Even it went down 15% today it is up 40% since they went public. The company we bought today will fit in nicely....[/QUOTE

What he said. All true.
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IKnowStuff

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Reply with quote  #5 
Usually stocks involving broad liners are pretty safe overall. Even if they go down, they never bottom out. People ALWAYS need food. No matter what. What I will say, is pay attention to how Southern California is doing. That’s the biggest market for USF and where they go, so goes the company. At this moment, it’s looking bad. BUT, it will eventually come full circle and recover. You certainly cannot look at these stocks as a short term fix or a get rich quick thing. It’s a long term investment. You decide if you are willing to part with the money and wait. Another thing, after this s*** show today, more change will come. You will see management changes, changes in the way employees at large are handled. It’s not going to be good for a while. It will get way worse before it gets better. You just need to decide what you want to tolerate.
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Sidney

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Reply with quote  #6 
aye aye
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laser

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Reply with quote  #7 
The elephant in the room for US is the intent to do more business with fewer TM's and trying to force customers to order online as opposed to letting the customer make that decision. This came back to bite Sysco when they cut their their sales force about ten years ago, and DeLaney openly admitted this later on one of their investor calls. They portrayed this decline as kind of a one off due to higher freight costs and out of stocks due to transitioning to a central ordering system. The proof in the pudding will be how their results are the next three quarters.
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JustAnObserver

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Reply with quote  #8 
When they said "$55M in efficiencies", they didn't mean tighter delivery routing.
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deville215

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Quote:
Originally Posted by laser
The elephant in the room for US is the intent to do more business with fewer TM's and trying to force customers to order online as opposed to letting the customer make that decision. This came back to bite Sysco when they cut their their sales force about ten years ago, and DeLaney openly admitted this later on one of their investor calls. They portrayed this decline as kind of a one off due to higher freight costs and out of stocks due to transitioning to a central ordering system. The proof in the pudding will be how their results are the next three quarters.


So you claim that this had nothing to do with disruption from moving to centralized replenishment affecting inbound/outbound? I get that folks want to attack their handling of TM headcount, but how do you back that statement up? And do you then believe that they can't reaccelerate case growth, especially with Street business, since it's not just a temporary transition?
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FSVET

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Reply with quote  #10 
So you claim that this had nothing to do with disruption from moving to centralized replenishment affecting inbound/outbound? I get that folks want to attack their handling of TM headcount, but how do you back that statement up? And do you then believe that they can't re-accelerate case growth, especially with Street business, since it's not just a temporary transition?

Centralized purchasing has hurt every USF Division. Buyers in Rosemont have no idea what goes on locally. Divisions have had to accept products from other vendors that in some cases are not as good quality as what was being sourced locally. This is especially true of produce. Southern California has access to some of the best and freshest produce, but the buyer in Rosemont (who, I'm told, has no foodservice experience) doesn't have a clue. Just look for the cheapest they can get.


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laser

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Reply with quote  #11 
Sysco's experiment with centralized purchasing through SAP was a big mess and was one of the first areas they abandoned. The theory of reducing the merchandising head count at the DC's and relying on an automated replenishment system in foodservice is much more difficult than in retail, which seems to be the model Sysco attempted and now US is implementing. Higher service levels and tighter hands on inventory management exists in foodservice. My guess is that this will cost US more money than they will ever admit to, just like it cost Sysco.
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commoditiesguy

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Reply with quote  #12 
Quote:
Originally Posted by FSVET
So you claim that this had nothing to do with disruption from moving to centralized replenishment affecting inbound/outbound? I get that folks want to attack their handling of TM headcount, but how do you back that statement up? And do you then believe that they can't re-accelerate case growth, especially with Street business, since it's not just a temporary transition?

Centralized purchasing has hurt every USF Division. Buyers in Rosemont have no idea what goes on locally. Divisions have had to accept products from other vendors that in some cases are not as good quality as what was being sourced locally. This is especially true of produce. Southern California has access to some of the best and freshest produce, but the buyer in Rosemont (who, I'm told, has no foodservice experience) doesn't have a clue. Just look for the cheapest they can get.

The best possible model for centralized purchasing is to have the corporate office handle the programs that are highly private label driven; canned goods, frozen vegetables, non-foods, things like that, and the more National-type programs (KraftHeinz, ConAgra dry, etc).  And leave the local programs locally; produce, fresh seafood, regional protein branded preferences, etc.
The issue with Rosemont, however, goes beyond just the problem that they want to control it ALL.  As you alluded to, their "buyers", and to some extent, even the Category Managers and some upper management simply don't understand foodservice.  To them, business can be managed with pivot tables, and supplier rebate checks.  And the reality is that we aren't in the widget business.
Good luck getting Pietro or any of his boys (and girls) to understand that.
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Reply with quote  #13 
Quote:
Originally Posted by commoditiesguy
The best possible model for centralized purchasing is to have the corporate office handle the programs that are highly private label driven; canned goods, frozen vegetables, non-foods, things like that, and the more National-type programs (KraftHeinz, ConAgra dry, etc).  And leave the local programs locally; produce, fresh seafood, regional protein branded preferences, etc.
The issue with Rosemont, however, goes beyond just the problem that they want to control it ALL.  As you alluded to, their "buyers", and to some extent, even the Category Managers and some upper management simply don't understand foodservice.  To them, business can be managed with pivot tables, and supplier rebate checks.  And the reality is that we aren't in the widget business.
Good luck getting Pietro or any of his boys (and girls) to understand that.


But you're an accomplished operative in the foodservice industry while ownership of US Foods is in the money pumping business. They understand you're point of view they simply dont care, they'll suck back door cash and suck and suck until there aint no more to suck.

There's nothing much more to the business these days. 
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deville215

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Reply with quote  #14 
So how broad-based is centralized replenishment at this pt in terms of DCs and product categories touched? Are they really trying to do fresh good centrally??? And if so, how much negative feedback are TMs providing already from not just themselves but customers as well?
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IKnowStuff

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Reply with quote  #15 
Quote:
Originally Posted by deville215
So how broad-based is centralized replenishment at this pt in terms of DCs and product categories touched? Are they really trying to do fresh good centrally??? And if so, how much negative feedback are TMs providing already from not just themselves but customers as well?


Yes. They “attempt” to do fresh centrally as well. What happens is, customers do not get what they ordered on time and it happens A LOT. We are shipping fresh chicken from the Midwest to California and what we are told quite frequently is that the trucks break down. Pretty much every single week. I don’t know how it is in the rest of the country, but I have a feeling they are given the same excuses as well. There are zillions of chicken farms locally, but nope! Midwest it is. Its nothing but a giant headache.

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IKnowStuff

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Reply with quote  #16 
And, they just throw the TM and customer complaints in the circular file. They give zero F***s.
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