Premier-US Foods

The Premier Foodservice Program is a proven, 15-year program which offers an aggressive national distribution through a partnership with US Foodservice. Participants of U.S. Communities have access to manufacturer agreements that provide discounts up to 20%. In addition, participants have access to technology and cost management solutions, member satisfaction/communication and foodservice operational excellence. 

Premier delivers over 190 active Contracted Manufacturer Agreements (CMAs) driving discounts up to 20% on over 32,000+ products in the following categories: 

• Dry Grocery
• Frozen Grocery
• Refrigerated Grocery
• Center Of The Plate (COP)
• Beverages – Coffee/Tea
• Fresh Produce
• Dairy, Fluid Milk
• Disposables
• Nutritional Supplements
  
  

Community Solutions 

• Contracted Manufacturer Agreements (CMAs): Individual category contracts competitively bid every three years to reduce the overall cost of goods to the public agency
  • All contract awards are evaluated and voted on by a foodservice committee that includes directors, purchasing agents, chefs, and dieticians
• Reporting tools for product consolidation by product, category, and/or manufacturer by location and in total as well as usage analytics to better understand product usage
• Programs to help school districts meet USDA guidelines regarding menus and nutritional requirements

Core Competencies

• Leveraging the volume of thousands of agencies nationally for food supply purchases including:
  
  • Frozen, Refrigerated, Dry Grocery, Center of the Plate, Produce, Chemicals,
• Small and Large Equipment
• National Distribution Program – US Foods is the authorized distributor for the Premier Foodservice Program to include mark‐up by category, service level requirements, stocking requirements, and day to day interaction at the local level
• Cost Reduction: processing orders, receiving, invoices, accounts payable, and oversight; additionally will establish benchmarks to help identify opportunities for cost savings
• Audits: easily managed process to ensure that the correct price is being charged
• Local Flexibility: enabling it to work for multiple types of agencies

To join the program:
Visit www.premier‐uscommunities.com and click the JOIN NOW button to complete the account setup.
 
To download or print this information, click here.

The chief advantages are:

• Greater control and predictability of costs
• Generates savings on foodservice purchases through deviated pricing and manufacturer rebates on 32,000+ products
• Process improvement throughout the supply chain
• Reporting tools that allow immediate visibility to product detail by location and/or system
• Broadline distribution capabilities with prime vendor program through US Foodservice
  • Fewer purchase orders
  • Consolidated deliveries
  • Multiple quality tiers to choose from
  • Standard next-day delivery, based on agency location from the distribution center
• Reporting Tools
  • Online data analytic tools by location or agency 
• Dedicated Cost Management Professionals focused on delivering agency savings
• Regional/National networking and educational opportunities available annually
• Wellness and sustainability programs available
  
  

Distribution mark-ups by category have been established to cover all purchases from US Foodservice. Program mark-ups are based on average delivery size and account payable terms. 

• Program benefits combine aggressive distribution mark-ups plus industry leading contracted manufacturer agreements.
• Participant distributor pricing based on average delivery size and participant payment practices
  
  • Program A – greater than $3,000 per average delivery
  • Program B - $350 - $2,999 per average delivery
• Up to 20% discounts on Contracted Manufacture Agreements (CMAs)
  
  • 190 active agreements
  • 32,000+ products
  • Deviations, rebates and allowances
• Incentives
  • Operational
  • Early Pay
  • New Business

How do I place an order with Premier US Foodservice?
You must be a registered participant to utilize the U.S. Communities contract. If not, please Register to Participate. You will need your Federal Tax ID Number to complete.

Once registered, go to the Premier site and enroll in the Premier Foodservice Program. Premier will contact you once your account is finalized and give you everything you need to begin purchasing.

For more information, call 877-981-3312 or email uscommunities@premierinc.com.

Orders are placed online through the Premier/US Foodservice proprietary ordering system Food Service Direct Order (FSDO). Orders can also be placed through customer service at the individual distribution centers.

Who is the Lead Agency for the Food Purchasing Contract?
North Carolina State University, Contract Number 13924.

What is the Premier Foodservice Purchasing Program?
The Premier Foodservice Purchasing Program is a proven, 15‐year foodservice purchasing program. It includes an aggressive national distribution program, discounted manufacturer agreements, technology solutions, cost management solutions, participant’s satisfaction surveys and ongoing communication from its participants to continually improve upon the existing offering. To date, the program has in excess of $3.2 billion in purchasing power for its participants.

What are the principal advantages of the program?
The chief advantages are: 

1. Immediate savings on your foodservice expenditures through deviated pricing from manufacturers 
2. Greater control and predictability of costs due to the thorough negotiations during the contracting process 
3. Leveraging of your purchasing power to positively influence quality, labor, revenue or other concerns of your management staff 
4. Reporting tools, menu planning and wellness programs that can improve operational efficiencies immediately 
5. Ability to focus on internal goals and initiatives in the purchasing department while allowing the Premier contracting team to negotiate national contracts on the participants behalf by utilizing the “piggy‐backing” process through U.S. Communities.

What is the relationship between Premier and U.S. Foodservice?
U.S. Foodservice is the primary distributor for the foodservice programs and offerings that Premier negotiates on the behalf of its participants. One hundred percent of all products purchased from U.S. Foodservice are priced based on the overall distribution agreement Premier has negotiated on behalf of its participants. This specific program is competitively bid every five (5) years, utilizing our detailed contracting process.

What are Committed Manufacturer Agreements (CMAs)?
Committed Manufacturer Agreements (CMAs) are contracts that Premier has negotiated with manufacturers for a three (3) year period. The products are typically purchased through U.S. Foodservice, but the deviated pricing and/or rebates are negotiated by Premier for Premier participants. Contracts are negotiated to determine cost into distribution and have various controls built in to protect against extreme market fluctuations. On average there are in excess of 192 CMA contracts in place that cover 80 product categories and over 34,000 actual products. Participants receive 100% of the rebates with no processing fees. Participants have the option to purchase items that are not on the CMA list, understanding that the greatest value is on products that Premier has negotiated terms and conditions as it relates to cost.

What food purchasing categories are included in the program?
Dry, Refrigerated and Frozen Grocery, Dairy, Milk, Center of the Plate, Medical Nutritional Products, Produce, Disposables, Janitorial Chemicals, Beverages – Coffee, Tea and Small Wares, Kitchen Equipment.

How would this program be different from what a participating member might be using today?

1. This program is more of a single source supplier vs. multiple distributors awarded by line item bids. A prime vendor type relationship reduces ordering time, invoice processing and number of deliveries to the facilities which helps to increase overall productivity within the department. 
2. Milk and Fresh Bread suppliers – participants might be using a local milk and/or bread company. Most of these local suppliers provide daily service that includes rotation of product and management of expired product. The broadline distributor does not supply this service. 
3. Produce – participants might be receiving daily deliveries for produce. The Premier food purchasing program has incentives and cost reductions in place for larger more efficient drop sizes. Daily produce deliveries could prevent the agency from realizing all of the potential savings opportunities.

How is the distribution mark‐up structured?

The program provides cost savings and additional incentives for larger drop sizes. Agencies that receive an average delivery of $3,000 per drop with an average payment term of less than 45 days earn program A margins. If the agency is less than $3,000 per drop with an average payment term of less than 45 days they earn B margins, an increase of 1.3% over program A. If an agency achieves program A and has an annualized combined volume of $2.0 million within a 5 mile radius they achieve program Z margins, 1.0% less than program A.

How does the participating agency access their discounts?

For the distribution program with U.S. Foodservice, Premier has negotiated the category margins that will be applied to the cost of goods on each product at time of invoicing. CMA products have three types of discounts

1. Deviations – the majority of Premier CMA contracts have discounts applied at the time of invoicing. The cost into U.S. Foodservice is negotiated by Premier; divisions use this as the cost basis for the distribution mark‐up. 
2. Allowances – Premier has negotiated an allowance with the manufacture to be applied to the division cost (that has been defined by Premier) at time of invoicing. 
3. Rebates – discounts returned to the participating agency after the end of the quarter from Premier. Some vendors utilize one of these discount options and others might utilize multiple options depending on their contract with Premier.

Are there additional incentives for the participating member to achieve?
Yes. The program has the following incentives: 

1.  Average Drop Size – the larger the drop the larger the incentive 
2.  Accounts Payable – the faster the payment the larger the incentive 
3.  New Business Incentive – If they purchase less than 20% of their annual volume from USF, they would be eligible for this incentive

What is Foodservice Operational Strategies (FOS)?

Public agencies have access to our Foodservice Operational Strategies team of consultants that will assist the individual facilities who are (or are considering) working with, contract management companies. These consultants provide evaluations of existing contracts in place, contract request for proposal creation, evaluation and negotiations on behalf of the participants.

Are there reporting tools available?

Yes, Premier has numerous reporting tools on their contracting site and on the U.S. Foodservice online ordering system. Participants will be able to look at purchases by specific location or they can roll purchases into one master account if they have multiple locations. This information can be in total, by manufacturer or by products. Additional reporting tools include: 

1. Order guide price compared to invoice price 
2. Off order guide report if facility utilized centralized order guides for a system 
3. Service level reports 
4. Order guide change report

What additional resources are available to the public agencies, in addition to food purchasing?
 U.S. Communities participants have access to Premier menu programs, health and wellness programs, culinary training and regional meetings that will highlight new programs.

Who do I contact for more information?
You can obtain additional information by visiting uscommunities@premierinc.com or call 877‐981‐3312.
 

• Participating agency serviced by one of US Foodservice's 60 distribution centers
• Next day delivery, based on agency location from the distribution center
• Proof of delivery method of invoicing ensures complete invoice at time of delivery (select geographical locations)