Case Analysis Of Sysco Corporation
Sysco Corporation has made numerous contributions to the field of Human Resources (HR). Sysco has a little over 40,000 employees and the largest distribution business in the food services industry within the United States. Other companies, such as hospitals and hotels use Sysco as its main supplier. The HR department of Sysco has some bragging right as they have obtained excellence in their respective field through award recognition from Optimas. Operating regions under the sphere of Sysco did start out using their own practices for HR. Because of this pattern a HR practice that is market driven grew to be the foundation of their HR brand. The aim of this case analysis of Sysco Corporations will be to evaluate, analyze through connections and make applications by applying to different situations.
An evaluation of Sysco Corporations market driven HR approach reveals that this type of approach is better equipped to support the corporate end of HR by identifying how operations regionally can proceed with the development of new and innovative forms of services and programs. The market driven approach was new to the department of HR due to its operating units that became mandated. Through this approach supervisors were persuaded to accept and firmly believe in the services of a corporate HR department. The approach has also allowed for the development of VRC within the corporate HR. It is through VRC that employees, managers and supervisors are provided with services. VRC is a distinct way of gathering data through technology provided by HR. Further allowing for activities within the HR department, through the data, onto its mangers and supervisors to use, specifically the operating mangers. The data collected can then be used to assess safety, and then go on to develop safety initiatives that increase the likelihood of less on the job injuries.
Further evaluation of Sysco Corporation uses of market driven data linked a reduction in workers compensation claims due to the increase usage of safety initiatives. The reduction has saved the company over ten million dollars annually in claims. Another successful contribution of market driven data used by the corporation has allowed for night shift retention increased by close to 20 percent, totaling a savings of close to $15 million yearly. The HR department under the corporation implemented revisions in incentives and the basic pay for all delivery and truck drivers. The incentives and revisions in basic pay rates increased the rate of retention and overall driving records of both truck and delivery positions. Through the encouragement of better customer service by delivery personal customer satisfaction was at an all-time high along with expenditures of delivery decreasing.
Through analysis of Sysco Corporations HR department, a connection can be made between the market driven methodology used to demonstrate how the strategies used for operational purposes by the corporation was adjusted through administrative roles. Other similar corporation in this industry can make use of data that adjust to marketplace charges in real-time. By using the HR system of negotiating freight rates through data analysis a corporation can make better use of their time. The strengths of the corporation are protected by the HR department using a SWOT analysis. Through the SWOT analysis the corporation can internally build on their strengths by enhancing them. Weaknesses are resolved internally through reduction first. Externally the HR department then uses data driven analysis on opportunity that exploits every prospect by expanding the opportunities. The corporation also used external threats to avoid any undo losses in both employee compensation and customer service. The HR role within the corporations used its expertise when deciding to enter any new market openings.
Elements of the Sysco Corporation's expertise on acquisitioning through expansion can be applied to new situations in other industries. Expansion can support fresh revenue flow and broaden and organizations expertise within its own industry as well as other industries. This also aid in the risk phase of the economy within the selected industry. Sysco built a culture within its dealers and distributors. The model they used can be applied to nearly any industry, this is called a solid distribution set of connections/contacts. The reliability of supplier is a key factor in making the distribution set solid. Sysco used a network that was built over years of good customer service records. There are several operational roles that can connect to managing benefit programs.
Operational roles that take an intermediate amount of time works best. Recruiting and safety education programs works best for intermediate tenures. Shorter term goals should be handled by administration. Sysco corporation used administrative roles when they conducted all employee orientations. Any report that pertain to equal opportunity employments should be handled by administration. Sysco allowed revisions in compensation arrangements for employees that were new to the company due to expansions from acquisition.
The corporation productively focused on restructuring through updates that allowed an efficiently flowed organization. Strategic plans were applied when hotel and restaurants wanted certain foods that were no longer carried by the corporation. This allowed for streamlining of specifics foods to limited customers. Individual hotels were demanding a certain type of apple only grown in Michigan. The corruption applied the streamline plan to accommodate the needs of these individual hotels. By the year 2009 Sysco was able to use pilot program with suppliers of these specific type of Michigan apples.
This type of streamlining applies to nearly all industries when an organization looks for ways to meet every demand from both supplier s and customers. The regional branding that the corporation uses in such things as Michigan apples and Kansas City barbecue can be applied across industry lines. There are different levels of regional branding that can be applied in nearly all corporation situations. The use of regional branding can promote more than the brand it also promotes diversity through meeting the needs of a certain region of the country. Regional branding can be extended to national branding and international branding.
The distribution of non-food and food item by the Sysco Corporation takes an organization that is in a regional, national and global front-runner. Through the evaluation of Sysco’s market driven HR approach the company revealed that this type of method is more advanced for the support of HR identification of regional operations. The analyzation of HR’s role uncovered its expertise when deciding to enter any new market opening. The application of streamlining allowed the opportunity for Sysco to branch out into regional branding. The evaluation and analyzation of connections granted the knowledge of applications to be made from the Sysco Corporation to other HR industries in this case study analysis.
- Hess, E. d. (2007). Case Study: Sysco Corporation; A Darden Case. Harvard Business School Publication. UV0874-PDF-ENG.