SMS is the Supply Chain Cooperative for Popeyes representing over a Billion dollars of spend. SMS is a not-for-profit organization, owned by Popeyes restaurant owners, both Franchised and Corporate. SMS’s core competency encompasses field to restaurant supply chain management responsibility, for all supply chain functions, focusing on product sourcing, supplier/vendor contract management, commodities strategy and management, 3rd party logistics, distribution management, sustaining a continuous supply of products and LTO supply management, program maintenance, and other critical customer care activities.
SMS is governed by a member based Board of Directors, which consists of elected and appointed directors representing the Popeyes Franchisees, Popeyes Franchisee Association and Popeyes SMS is owned and funded by Popeyes franchisees, and operates within the constraints of its non-profit corporate charter and Company Bylaws. As a not –for profit Company, SMS expenses are funded by Board approved surcharges on certain items,
Popeyes is responsible for developing brand strategy, marketing and LTO programs, product specifications, food quality, engineering and safety standards, as well as approving suppliers, manufacturing facilities and Distributors.
In support of this joint effort, Popeyes has an internal management liaison who serves as the primary conduit of information between the Brand and SMS. Furthermore, SMS management team members are actively involved with the Popeyes Marketing, R&D, and Operations departments to ensure that product quality and supply are never compromised in the pursuit of supply chain efficiencies and cost reductions. Finally, and just as important, SMS actively participates in cross-functional efforts with the Brand to identify savings opportunities; especially through vendor consolidations, vendor process improvements, specification or vendor changes, freight management programs, and distribution strategies.
TThe SMS Team consists of 11 Supply Chain professionals representing over 292 years of experience. The SMS Team conducts its operations within the business parameters defined by the Company’s Mission, Vision and Value Statements, presented below:
To continuously supply our members with competitively priced, quality products and services while supporting their growth wherever needed
Become the recognized leader in supply chain services for the QSR vertical/industry…Through the employment of industry recognized best practices and technologies…
While continuing to leverage our skills and technologies such that co-op member surcharges can be significantly reduced and/or eliminated with an end result being a self-funded, independent SMS organization.
To empower our members by providing them with competitively priced products, services, and information. Our high performing team will contract with suppliers/organizations that are in alignment with our goals and ethics. We will also provide the means for outreach projects to the community, defining our social and economic ideals. We envision a thriving Cooperative that practices the values of honesty, openness, and is considered the employer of choice by our associates.
We earn and maintain the trust of our business partners by providing services based on the core values of Fairness, Integrity, Honesty, Respect, Dignity and Ethics.
The most important aspect of the SMS’s strategy, lies in its ability to optimize the economic leverage of total system spend. As a result of these high-performance efforts, SMS has delivered to its membership over $80 million in Cost of Goods Sold (“COGS”) savings since 2010. Moreover, given the lean, effective SMS operating structure, SMS has a consistent history of reduced annual SMS surcharge collections. As such, the surcharges Franchisees pay for SMS services, average about $600 per restaurant per year, which is significantly less than the $1,500 per year service fee paid by franchisees in other comparable QSR supply chain cooperatives. Moreover, the comparison of COGS savings to SMS Coop fees for the most recent calendar year yielded a simple ROI of about 630% on franchisee investment in the SMS Coop. In closing, SMS is committed to delivering these savings while never compromising product quality standards, which translates into a supply chain system that supports one of the most important goals of all franchisees, that of maximizing restaurant operating profits.