THE VALUE OF EXPERIENCE
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WAYNE FARMS: THE VALUE OF EXPERIENCE
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W AY N E F A R M S
GLENN SMITH, DIRECTOR OF FEED INGREDIENT PROCUREMENT AT WAYNE FARMS, DISCUSSES HOW LONG-STANDING EXPERIENCE CAN BE A VALUABLE TOOL IN ENSURING THE SUCCESS OF YEAR-TO-YEAR SUPPLY CHAIN TRANSFORMATION
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n 1965, Continental Grain, a family company run to this day by the Fribourg family in New York, acquired a majority share of
Allied Mills, breaking off a division dedicated exclusively to poultry that officially became Wayne Farms. Subsequently, Wayne Farms grew into the powerhouse it is today — the sixth largest fully integrated poultry company in the United States with seven feeds mills, seven processing plants, and US$2.2bn in sales. With a vision of being the partner of choice for customers, colleagues, and farmers alike, its mission statement centres around executing the behaviours that lead to meaningful success, including integrity, teamwork and leadership. Glenn Smith is the Director of Feed Ingredient Procurement. His role oversees purchasing all feed ingredients for the feed mills across the country, from corn, soy, and distillers’ grains, to bone meal, bakery meal, fats and micro-ingredients like amino acids, enzymes and antibiotics. He joined
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1965
Year founded
$2.2bn Sales in US dollars
9,000 Number of employees
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TRUSTED GRAIN SUPPLIER At Gavilon, we are honored to work with companies like Wayne Farms to provide procurement and logistical solutions to the feed mill industry. Wayne Farms prides itself on being known for quality and innovation from the farm to the kitchen and we are proud to be their top supplier of feed grains.
About Gavilon: Gavilon has more than 100 grain locations across the U.S., as well as numerous international origins and destinations strategically located on major railroads, rivers, and ports. This vast network makes Gavilon a strong and reliable partner, allowing us to efficiently move product to the right destination, at the right time, and at the right price. Gavilon has built strategic relationships with producers and consumers of grain, oilseeds, and feed ingredients. We have the resources and infrastructure to provide competitive values across these agribusiness supply chains. Behind every transaction is a team of experienced professionals you can count on, ensuring flawless execution at every turn. Visit www.gavilon.com to learn more about how we can benefit your operations, or call us at 402-889-4000.
1331 Capitol Ave | Omaha, NE | Gavilon.com | T 402-889-4000
CLICK TO WATCH : ‘WAYNE FARMS INTERNSHIP PROGRAM’ 07 Wayne Farms in 2011, bringing with
Smith’s experience has also allowed
him profound industry experience.
him to establish deep-rooted connec-
Not only has Smith been in the feed
tions across every level of the industry.
and grain industry since 1992, his
Wayne Farms was initially a client
father, grandfather, and great-grand-
of his, buying the corn that he sold.
father before him were grain brokers.
Whether seller or buyer, good relation-
This deep well of experience is impor-
ships are key. “It’s a two-way street,”
tant in the industry, as Smith’s role
explains Smith. “You have to form
requires constant vigilance. “Working
partnerships and really work as a team
with live animals means there can’t
in order to both survive.” Within the
be a break in the supply chain,” says
company, relationship building focuses
Smith. “If the ingredients don’t show
on establishing close employee ties.
up, you can’t feed the animals and then
Not being a public company gives
they suffer. We never want that to
Wayne Farms greater control over its
happen, or even come close.”
internal operations. “Even with 9,000 w w w.wa y ne fa rm s . com
W AY N E F A R M S
08 employees,” Smith says, “it still feels
Understanding different levels of
like a family atmosphere.” Externally,
the industry allows Wayne Farms to
strong partnerships rooted in trust are
be flexible towards change. Since
important to ensure a steady, high-
Smith joined, the company went from
quality supply chain. Omaha-based
running nine to seven feed mills, an
the Gavilon Group is Wayne Farms’ top
adaptation to new demands by long-
corn supplier, in terms of both volume
term railway partner CSX corporation.
and service. On the soybean meal
Wayne Farms had three feed mills on
side, Wayne Farms can turn to its long-
the CSX line when the railway company
standing relationships with Cargill and
announced it would be upgrading from
Riceland Foods Inc. “These companies
65-car trains to 90-car trains and
are the best at what they do as far as
offered more streamlined service and
customer service and taking care of
improved rates for the latter. Wayne
Wayne Farms,” affirms Smith. “It’s about
Farms was proactive in combining the
working closely together every day.”
three feed mills into one that not only
“ T HE DIGITAL AGE HAS ABSOLUTELY MADE WHAT WE DO SO MUCH EASIER” — Glenn Smith, Director of Feed Ingredient Procurement, Wayne Farms
E XE CU T I VE PRO FI LE
Glenn B. Smith Glenn B. Smith is a fourth generation feed and grain executive with 27 years of experience in the industry. Glenn has been the Director of Feed Ingredient Procurement since 2011 for Wayne Farms LLC, Oakwood, GA, purchasing and coordinating delivery for all bulk feed ingredients via barge, rail, truck, tote and bag delivery for 7 feed mills as well as overseeing risk management reporting and strategy for the 6th largest fully integrated poultry company in the United States. Glenn resides with his family in Cleveland, GA. He holds a BA in European History from Washington and Lee University.
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Powered to Perform CSX is redefining rail freight CSX is creating new opportunities to partner with customers like Wayne Farms to grow their business – bringing more on-time delivery, first-class customer service and a seamless shipping experience across our far-reaching network. With industry leading safety, reliability and efficiency, CSX is powered to deliver comprehensive supply chain solutions that keep customer shipments on track, on time and on target.
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CO MPAN Y FACT S
• Wayne Farms grew to the powerhouse it is today: the sixth largest fully integrated poultry company in the United States with seven feeds mills, seven processing plants, and US$2.2bn in sales • They have reduced demurrage costs by over 60% since 2012. In 2012, it was $1.6mn; last year, it was just over $600,000
produced more than the three com-
Supply chain within the poultry
bined but became the largest poultry
industry provides a unique challenge:
feed mill in America. A mutually benefi-
both cyclical and evolving. Crop prices,
cial decision, it is symptomatic of how
railway deals, weather conditions,
experience can be valuable in under-
barge costs; these can vary year-to-
standing the future. “The year after,
year. This means the ability to monitor
CSX completely pulled its 65-car train
and foresee changes is key in staying
program from the rotation,” explains
on top of the supply chain. There are
Smith. “Other companies were left
maintenance costs in the industry
stranded, but we had already made the
that are unavoidable. For these, such
investment to upgrade, looking ahead
as demurrage on barges and trains,
at sustainability.”
Smith says it is about reduction not w w w.wa y ne fa rm s . com
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ROM THE THE FFROM
GR AIN UP BY FAMIL FAMILIIEES, S, FFOR OR FAM FA MIIL BY L IIEESS
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Visit Riceland.com to find products at a store near you.
“ W E’VE BEEN ABLE TO REDUCE DEMURRAGE COSTS BY OVER 60% SINCE 2012” — Glenn Smith, Director of Feed Ingredient Procurement, Wayne Farms
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Supporting local farmers and their families through carefully grown, quality grain.
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avoidance. “It’s just the cost of doing
have a saying in the poultry business:
business,” he says. “Monitoring and
everything is used but the cluck,” says
closer surveillance can help. We’ve
Smith. “Profitability is hard. Everything
been able to reduce demurrage costs
is useful. Nothing goes to waste.” The
by over 60% since 2012. Back then,
internet presented a major shift in the
the figure was $1.6mn; last year, it was
industry in terms of monitoring capabil-
just over $600,000.” One way Wayne
ity. Back in the 1990s, much of Smith’s
Farms keeps costs down is by recy-
role was monitoring train shipments,
cling everything, an industry standard.
making phone calls to find out exactly
The meat is sent to be processed as
where his shipment was. Now, railways
food, but any indelible by-products are
have apps that let him track exactly
repurposed into meal that is sold into
where every element of his supply chain
animal feed distribution channels. “We
is anytime in the day. “The digital age 13
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“ T HEY SAY YOU NEED THREE THINGS IF YOU’RE GOING TO BE A GOOD SALESMAN: A QUALITY PRODUCT, GREAT SERVICE, AND THE BEST PRICE”
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— Glenn Smith, Director of Feed Ingredient Procurement, Wayne Farms
has absolutely made what we do so much easier,” he adds. “It’s a much more streamlined role. This allows you to spend time on other more productive areas.” Despite how the industry has evolved, its fundaments remain unchanged. “They say you need three things if you’re going to be a good salesman: a quality product, great service, and the best price,” explains Smith. It is not enough to be the cheapest on the market, according to Smith. Long-term relationships mean communication and
the assurance for a steady high quality supply, worth a bump in price. Stability, after all, is the root of success within the poultry business. Wayne Farms processes 7mn birds a week, feeding around 80mn chickens on any given day. “It’s not just cost,” says Smith. “It’s making sure the quality products are getting there as you need them.” Continuity of service is a point of pride at Wayne Farms, particularly at its feed mill in Guntersville, Alabama, which has managed to go two years without any feed ingredient substitutions. On the whole, the industry has grown 1.5-2% over the past few years. Throughout, Wayne Farms, not being a major retail seller, has kept close ties to its customer base: restaurants and processing companies. “I think in five years’ time, we’ll maintain our commitment to quality and grow as the customer asks of us,” concludes Smith. “The future is bright.”
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4110 Continental Drive, Oakwood, Georgia 30566, USA T 1-800-392-0844 www.waynefarms.com