Flowers Foods – Returnable Asset ManagementFlowers Foods – Returnable Asset ManagementFebruary 1, 2011February 1, 2011

Dan StoneVP of Logistics & Supply Chain

Flowers Foods

40 manufacturing facilities

2009 sales of $2.6 billion

DSD sales of fresh breads, buns, and snack cakes

245 thrift outlets, 500+ depots

More than 3,700 distributor territories

Flowers’ LogisticsBakery

Sister Bakery Depot

Flowers’ DSD Footprint

40 bakeries

DSD (direct store delivery) territory

Customer Deliveries

Trays are used daily by Flowers’ sales force and independent distributors to deliver products to retail and foodservice customers.

The Result?

Trays end up in the back room of a retail store or restaurant or worse—outside the building.

As you can see, our trays have a lot of company.

Tray Theft = Big Loss

Cost to baking industry in 2007* $75 million

Estimated loss per day per company* $25,000 - $30,000

Estimated loss per year per company $7.8 million

Industry Stats

Trays delivered to customers weekly 4.65 million

Trays delivered to customers annually 242.0 million

Miles all trays travel annually 75.5 million

Flowers Stats

*Source: American Bakers Assn.

Bakers average 30% tray loss

annually

Tracking InitiativesAwareness

Accountability

GPS devices

Manual tracking

Private investigators

COMBAT (Regional)

JIRAMC (National)

Tracking Software (HHC)

Mid Atlantic Region Bakers, Beverage, Dairy, & Trade Partners

COMBAT Coalition Partners

Flowers’ Efforts

Upgrading distributor software

Tracking trays by computer at customer level

Tracking on return of trays to depot

Automatic reconciliation