US Foods Holding Corp. (NYSE:USFD) Q4 2022 Earnings Call Transcript

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Dave Flitman: Yes, absolutely, John. I appreciate that. Look, we — as you’ve heard on the call, we made a lot of progress in supply chain. But as I highlighted in my comments, I see that as a huge opportunity to continue to drive efficiency and productivity for the company. As I think about excellence in supply chain, we need to have predictable on-time performance at the lowest possible cost and that’s clearly, what the company is aimed at driving. We owe that to ourselves, we owe it to our customers and we certainly owe it to our shareholders, to be as efficient as we possibly can be. And as I think about the work that’s going on I guess, I would put it in four kind of key buckets. You’ve heard a lot about most of that this morning.

This pilot that we’ve had in the Southeast, the seven-day delivery and flexible scheduling, has tremendous potential to help us continue to drive efficiency and reduce turnover across the company. In fact, I’ll just give you one little anecdotal story, when I was visiting that market. I had the opportunity to have some town — not town halls, but little roundtables with drivers and selectors. In the selector roundtable I had, I just started asking them what they thought about the flex scheduling that we had. And we had an 11-year warehouse veteran, has been working days, who opted to take a weekend schedule. And so I said, well, why would you do that? You’re one of the more senior folks in the warehouse. He said, “Look my wife, has a catering business, she needs help during the week and this gives me the chance to lean in and help her and do what we need to do and balance my career and help my wife out on the personal front”.

So, I think we are scratching the surface, as something here that will also help our employees and associates as well as drive efficiency for the company. The second one, we’ve talked about it here is inbound logistics. We still have a lot of opportunity in that area great momentum strong focus in the company. And then, there’s really two others, I think in supply chain that will pay dividends long term. One is, process optimization, standardizing our approach being consistent across the company and how we think about anything from onboarding to training warehouse associates, and how we do our work through the course of the evening. Then the final one, I’ll point to is some future opportunities in supply chain, not the least of which is — and you’ve heard about this the routing software going to a leading platform that will execute throughout the course of this year, will also pay some long-term benefits.

So, I think there’s some near-term things. There are certainly some long-term opportunities for the company. I’m excited about the momentum, but tremendous upside here on —

John Ivankoe: Thank you.

Dave Flitman: Sure. Thank you.

Operator: Your next question is from Kelly Bania of BMO Capital Markets. Please go ahead. Your line is open.

Kelly Bania: Hi, good morning. Thanks for taking our questions.

Dave Flitman: Good morning.

Kelly Bania: Good morning. I just want to go back to the guidance and the outlook for the year. I appreciate the color on the expected growth relative to the market. But I guess I was just curious if you’re willing to comment at all on a specific case growth range embedded in the guidance. We were kind of thinking low single-digit, but if you can just help us maybe think about the broad strokes in terms of the different customer types between independent health care hospitality and all other, as well as I think there was a comment that the low end of the guidance assumes a slowdown in the second half. Can you help us understand the magnitude of what you might be embedding in terms of the potential softness there in the second half?

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