Not only have these technological advances made it possible for us to make our own operation more efficient, but they have also made helpful information more readily accessible to assist our customers and suppliers alike.

One such technological advance is the implementation of the Sysco Uniform System, or SUS, which provides automatic detailed monitoring of our daily operations - delivering business-critical information to Sysco employees whenever they need it. This, in turn, allows us to become faster and more efficient in responding to customers' needs.

Another customer-focused system is the Sysco Warehouse Management System, referred to as SWMS (pronounced "swims"). This system allows us to keep track of our customers' orders through every step of the process. It increases our ability to accurately fill orders on time, and to correct any mistake before it becomes a problem. Sysco.com is another great product information resource. Users can log on and view detailed product information and photographs. Customers can even use the site to obtain recipes and valuable business-building tips that have been developed to help them increase profitability.

Customers can receive everything they need for their operations, from sparkling front-of-the-house service ware to heavy-duty, back-of-the-house janitorial supplies and everything in between. Sysco delivers unmatched selection and industry-leading value in a one-stop source for every foodservice need.

Sysco equipment and supplies are known throughout the industry for quality, durability and value. From cutlery and chef's apparel to heavy equipment such as fryers and freezers, Sysco keeps customers supplied with the equipment they need to run their operations smoothly.

Sysco disposable products come in all shapes, colors, sizes and quality levels. These products can be relied upon for stylish convenience, quality and value whenever they are incorporated into our customers' operation.

Food safety is paramount for our customers. Maintaining a sanitary establishment is easy with chemical products available under the Sysco brand. These carefully developed products help our customers maintain the high levels of safety and cleanliness that they demand. With quantity and packaging options that are designed to fit every operation's requirements, Sysco chemical products offer a way for our customers to solve all their sanitation and maintenance needs.

These concerns include soil erosion, chemical contamination of the aquifer, and higher levels of pesticide residual. Additional social ramifications include the decline in the number of family farms and the economic and social erosion of rural communities.

It is Sysco's goal to ensure that highly differentiated products are successfully produced for our future generations. To that end, our ultimate goal is to foster the success of highly differentiated products that are profitable to all participants and incorporate farmer ownership and control.

Through a series of initiatives, Sysco is contributing to environmental stewardship and rural social vitality.

Integrated Pest Control:

Integrated Pest Management promotes the protection of environmentally sensitive growing areas, soil and water conservation, as well as the prudent management of crop pests and herbicide use. The IPM standards for Sysco's program were written with the assistance of the independent IPM Institute in Madison, Wisconsin and with valuable input from many of Sysco's canned and frozen fruit and vegetable suppliers.

The goal of this program is the use of environmentally friendly pesticides, only as necessary. This is a large initiative for our company that involves 70 suppliers, 160 food factories, and approximately 375,000 acres of crop land the first year of implementation. Sysco-branded suppliers of canned and frozen fruit and vegetables were required to submit IPM and sustainable agricultural programs. An independent third party audit by each supplier measures compliance to Sysco's IPM standards.

The results have illustrated the success of the program and the potential impact on the environment. For example, due to IPM practices in the field, our suppliers have reported avoiding the use of pesticides of over 300,000 lbs. of active ingredient pesticides this last year. In addition, they reported reusing or recycling 155,000,000 tons of organic waste material, 6,400,000 lbs of cardboard and paper, 2,900,000 lbs of metal products and 1,600,000 lbs of plastic. We are convinced through these efforts, with the help of our suppliers, we will make a huge impact toward a more sustainable food supply.

Buy Local, Sell Fresh:

It is clear that consumers are demanding an understanding about the food they consume. They want to purchase more nutritious food products and know where these foods are produced. These consumer attitudes are creating a growing market for natural and organic foods which could be supplied through a local food system initiative such as "Buy Local, Sell Fresh".

Our company is seeking to respond to this consumer demand for more local and sustainable produced foods by linking the farmer with the customer through the modification of existing procurement and distribution supply chains.

Several Sysco operating companies are providing exciting menu alternatives of locally produced food products to their restaurateur customers. It is our goal to keep the procurement and distribution strategies simple by providing products to the customers as they are available, and while quantities last.

Ag-In-The-Middle Procurement:

Ag-In-The-Middle is defined as family owned farms which are larger than a niche hobby farm, while smaller than the corporate-owned commodity raising enterprise. These Ag-In-The-Middle farms should be characterized as providing the principal source of income for an individual family unit. The support of this agricultural segment will be coordinated through Land Grant University support and our Corporation's interest in developing value-added niche products. Regional seminars have been completed which focus on market introduction and customer needs.

Focus in this area is critical to attempt to address the rapidly changing landscape of rural America. This segment of agriculture has the potential to specialize, producing value-added differentiated products. We believe niche products provided by this farmer group, if properly developed and marketed, will supply exciting menu alternatives for our restaurant customers. Menu ideas include natural beef or pork products, fresh/frozen fruits and vegetables, natural or organic poultry, and organic produce and dairy products.

Business Coalition for More Sustainable Food:

The Business Coalition for More Sustainable Food (BCSF) will harness the buying power of food related companies to create more sustainable food supply systems. Business leadership is necessary to insure sufficient productivity in the future.

Successful businesses need to keep abreast of trends, respond quickly to emerging markets, develop more sustainable food systems, and help shape markets for more sustainable food distribution.

A growing number of consumers are demanding healthier, more environmentally friendly food products. Food companies have been responding to these demands on an individual basis. We believe it is time to come together, share vital information, and collaborate to create a more sustainable system for the generations to come. BCSF affords members this opportunity.