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211: How Vertical Integration Helps Kwik Trip Achieve Manufacturing Excellence with Paul Blank and Scott Schiebel

45m 40s

211: How Vertical Integration Helps Kwik Trip Achieve Manufacturing Excellence with Paul Blank and Scott Schiebel

QuickTrip, a highly vertically integrated convenience store chain, manufactures its own food products to ensure control over pricing, quality, and food safety. The company leverages automation and ERP integration to enhance operational efficiency and decision-making. Despite investing in automation, QuickTrip prioritizes growth and opportunities for its employees, ensuring that automation complements human roles. The company's expansion includes adding a new donut production line and automating packaging processes, which will create more roles within the company. QuickTrip's strategy showcases how vertical integration, automation, and employee-focused growth can drive success in modern manufacturing.

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7027 Words, 39557 Characters

we make it, we ship it, we sell it. This allows us to control pricing. That's best for our gas. It also allows us to manage quality and food safety to mention a few things. Welcome to Manufacturing Happy Hour, the podcast where we get real about the latest trends and technologies impacting modern manufacturers. Each week, we interview industry experts that are at the top of their craft and give you the tools, tactics and strategies you need to take your career and your business to the next level. And now your host, Chris Lukey. Hey, what's up? It's episode 211. Today, we're talking all about vertical integration and we're doing this in the context of a company called Quicktrip. Now, if you live in the northern Midwest, this is Quicktrip with a K, not the other Quicktrip, so KWIK trip. It's a gas station. It's a convenience store. I always call it a convenience store. My friends give me flak for not calling it a gas station, but nevertheless, it is a brand with a very dedicated following. People petition to get Quicktrips in their town. People literally take wedding photos, get married there. I mean, it is its own special place. And for good reason, they make some high quality food there and they do a bunch of it themselves, which is exactly what we're talking about in today's episode. We are joined by Paul Blank and Scott Sheebel, Director of Facilities Projects and Director of Operation Technologies, respectively, as we met up at Western Technical College in La Crosse, Wisconsin for this conversation. Now, as a vertically integrated manufacturer that makes a bunch of their own stuff, they have everything from bread making, milk, sandwiches, pizza. They have a lot of different operations in one spot and it's very cool to see this up front. I had the opportunity to go tour their bread and bun facility, which is brand new 2018. So a shiny new facility with a lot of new technology. But as I was saying, and I want to be clear, there's a lot more to their operation than just the facilities we were spending time in that day. And you'll actually hear us talk about their sheer size and volume towards the end of the interview. So here are a few things you can expect from this conversation. At the end of the day is just great hearing from an end user. You'll hear about what the value of preventative maintenance is to an operation, how to pick a tech partner for a capital project, and how automation is resulting in increased throughput while creating more career opportunities for the frontline teams. I mean, this didn't actually come up in the recorded part of our interview itself, but afterwards we were chatting that because of the technology that QuickTrip has in place, they were able to double their production volume overnight when the COVID pandemic hit without missing a beat. So there's a lot of great stuff to dive into in this episode. Overall, it was just a great visit to QuickTrip, great visit to Western Wisconsin. I was out there giving a keynote, so it was great getting a chance to check out an incredible facility like the one I saw at QuickTrip while I was there. So yes, if you want to learn more, make sure to check out the show notes page at manufacturinghappyhour.com/211 for episode 211. But in the meantime, hey, let's jump into today's conversation. We're going to meet up with Paul and Scott right now. Paul, Scott, welcome. Glad to be here. I feel like we should be having this conversation over some cold beverages pulled out of the QuickTrip beer cave. Is that the correct way to describe it? Yeah, I would say so. So is that the official name for that nickname people have given it over time? I'm curious. I've always heard it as the beer cave, Scott. Yeah, I think it's probably both. Most convenience stores just have like a cooler. Some of them have a walk-in cooler, but you have a proper beverage cave where you can get fine. In our case, we're in Wisconsin right now, so spotted cow, plenty of statewide beverages that are only available in the state. But let's say we're having some beverages from the beer cave having this conversation. There are some people out there that probably don't know QuickTrip in all of its glory, and I'll reveal my biases up front. It is my favorite convenience store, and that's QuickTrip with a K. Tell us a little bit about QuickTrip. Paul, maybe you start us off and then, Scott, you can add your two cents on what makes QuickTrip special. Sure. Well, just to start, QuickTrip currently has roughly 900 stores. We're in multiple states up in the upper Midwest, Minnesota, Wisconsin, Iowa. We're into South Dakota. We're soon to enter North Dakota up in the Fargo area. We do have some stores up in the UP and a few down in Illinois as we continue to expand. QuickTrip is a highly vertically integrated convenience store group, so when you think of gas stations, fuel stations, and convenience goods, that's what you see. But behind the scenes, there's a whole lot more. Vertical integration is fairly expansive from manufacturing facilities. We have five major facilities that manufacture food products. We have a distribution center. We handle all our own trucking. We also have three clinics. At some point, there will be a fourth clinic that comes along. A health clinic, correct? Yeah, that was when I was looking at the list. You've mentioned a lot of them, bakery, dairy, water bottling line, kitchens, food safety labs, distribution centers, ice plants. I literally have only listed half of it so far, but health clinics jumped out of me. Sure. Another notable is we have a child care center for our coworkers that have children with daycare needs. Another benefit that QuickTrip manages for our people. Absolutely. And one that, quite frankly, more manufacturers I think should be doing as well. It's a really impressive operation and it's not every time that I do one of these interviews where I literally got to see the facilities earlier today. Obviously couldn't see everything in the period of time we had today, but we went to the bun and bread baking plant as well as the bottling and dairy line. Is that correct? That is correct. We were chatting before the interview. You are myth-busting a lot of misconceptions around manufacturing because when you walk out on your facility floor, it sparkles. And it smells great because you're walking into a bakery. So anyone, and I think our audience gets it, right? Manufacturing is not the dull, dirty, dangerous industry it was long ago. Our audience gets that out here, but we still have a lot to do to show the general public of that. And your facilities are a great example of that. It was very cool to be there earlier today. And let's talk a little bit more about vertical integration because that is one of the things that's special about QuickTrip. Because when people see a convenience store a lot of times, I think they see just that. That's where you go to pump your gas. You're going to get a Gatorade, a pastry, a coffee, whatever it is, you're going to hit the road again. But you have, it's quite funny how popular your snacks are. People wait till they get over the Wisconsin board to be like, "I'm getting a brat. I'm getting a chicken sandwich from QuickTrip." It is a special spot. But what you were saying, Paul, that folks don't see is all of the manufacturing that you do just for your convenience stores behind the scenes, which I think is a great opportunity for us to talk about vertical integration on this podcast. So I'm going to start with a basic question. Why is vertical integration the right operation strategy for QuickTrip? Paul, maybe you start us off and then Scott will go to you. Well, basically speaking, we make it, we ship it, we sell it. This allows us to control pricing. That's best for our gas. It also allows us to manage quality and food safety to mention a few things. No, I absolutely saw that quality, safety. I think one of the areas where it stuck out to me the most was I started my career in the food and beverage industry. I was working for Metal Container Corporation. We were making tons of aluminum cans every day that got shipped out somewhere else. But in your facility, with milk specifically, you have your blow molding machines, and then that goes straight to filling. You basically eliminate the cost of shipping, the logistics of shipping. Paul, I think you even made the comment while we were in there earlier that when it comes to times like COVID, you're not worried about all the same supply chain issues that other people were. You're basically like, if we can get our resin, we can still make our bottles. Can you add some color to that as well? I was just sharing what I learned today, but you see that every day. Sure. Just to expound a little bit on the dairy, we make all of our own bottles, whether it's the gallon, half gallon, the smaller bottles with the half pint, pint and quart. We also produce our bottles for our 20 ounce beverage. But really, that's it. The resin is the facet that we need to make sure we continue to bring that supply in. After that, we manage 100% of it relative to the bottle itself. So it simplifies the entire supply chain and some of the challenges that may come at times relative to that. Now, Scott, this is more of a question for you. How's all the work you're doing from an automation standpoint and an ERP integration standpoint, making vertical integration an even more powerful strategy? Can you share a little bit about that? Sure. We have standardized really from the automation layer all the way up the OT stack to ERP in the form of hardware and the way we deploy software, the way we manage servers in a VM environment, our partnership with our IT folks, and then extending up by standardizing on interfaces between the different layers of the OT stack all the way up through MES, SCADA, and ultimately hitting the produced side of an order or the consumption side of an order start from the plant floor. And one of the facilities we went to today, bread and bun baking, that is a relatively new facility that was built in 2018. So you were able to leverage all of that new technology from the ground up. And Paul, we talked a little bit about this on the tour. What are the things that that has created some unique advantages for QuickTrip that you didn't have before? I think you listed off three things that it's that's helped in transforming your process there. Well, prior to the previous facility, we've been making bread and buns for for many years into decades. But from everything we learned there and taken another step on capacity for our future stores that are coming, we concentrated heavily on other facets of automation. So from a from a throughput standpoint, we really pushed the envelope relative to rates and so forth. But the areas that we put a lot of concentration on from a process standpoint was automation on the ingredient handling side, as well as the order fulfillment side on the backside of the plant. In that location, we on a daily basis, we build all the store orders, everything is done in sequence based on route. And we automatically deliver right to the doctor. Really, on that end of the operation, that's the only manual function we have where we're loading the trailers in proper sequence. That's ultimately cross docked up the street at our distribution center. Well, that was one of the other things that I saw that was unique, right? When when the bread and the buns make it to the end of your line, your distribution center is right across the street. So you don't have to bring those bread and buns anywhere else, right? You can load it all up in that particular area where you basically have a very organized way of doing the exact shipment, the exact stores on a particular route need, it's not just going to be a bunch of bread stacked on top of bread every time, it might be bread, other goods that need to get delivered there. Am I on the right track there? I want to make sure I'm describing this right. Yeah, absolutely. Every store order is unique. Somebody may be calling for two trays of bread of a particular item, five trays of buns and in various buns, and those stacks are built accordingly. So another key mention that Scott can elaborate on is really taking a whole other step and leap on the enterprise and integration side that went into that plant and the SCADA systems that are in place, but maybe Scott wants to add a little bit to that. So relating to our retail orders, our nearly 900 stores as Paul alluded to, place their orders every day and then we have two waves that are run across the campus and the distribution center and all the facilities and those are transacted through our retail ordering system to our warehouse control system, our WCS in the bread and bun plant and that aggregates the data and creates the routes and the store orders and builds out the individual tray complexities that might be there and sends it out and then upstream from there as a result of the SCADA system we have as Paul mentioned and everything being order based from an SAP model, we have a mix order and a make order and a pack order for every product and the coworkers on the floor who are overseeing the process have complete visibility to where every SKU is on the floor at any given time. One thing that sticks out to me is people throw around the term digital transformation a lot in manufacturing and we do our best to get real when it comes to digital transformation on this show. Really what I'm hearing is you have the exact type of flow that someone would want in a digitally optimized facility. What you're making is based on the orders that are coming in so you're getting those orders from your ERP from SAP and that's what's getting put into production for that day because you I think you were saying you do two runs right there's a morning run of stuff that gets shipped out and then there's another afternoon run of goods that get shipped out is that correct? That is correct. So one other question I have is now that you have this process in place how do you make other decisions in terms of how your process runs? One of the unique things we saw within the bread and bud uh bread and bun plant was that certain processes are continuous right you're continuously making the buns but you're you use a batch process for the bread and when I say buns we're talking like hot dog buns and things like that and bread it's like the loaves of bread just for the audience so you kind of know the differentiation there. How does a decision like that factor and why go those two different routes and the way you produce it? Well batch mixing is common for bun manufacturing but there are groups that do continuous mix. One of the values that we saw in vetting through all the research that was done and so forth and arriving at that decision on the bun line to go continuous mixing was the fact that we're fully automated from front to back and we have a very high speed line. When you look at all the automation in place and the quality relative to the buns themselves will influence overall efficiency of operation. When you think of bread or buns you have yeast in there it's a living product so that product is alive until it hits the oven and bakes it off so the continuous allows us to ensure that every bun is the same and time is not a factor. Yeah I was fascinated when I saw that inside of the facility today. We'll be back in a moment but first a quick word from our sponsor. Did you know that 61 percent of OT organizations experienced three or more intrusions in the past year and that's just the stat as of 2024. That's why you need to get to know today's sponsor Fortinet. If you're looking for a comprehensive OT security solution look no further than Fortinet. They continue to be a driving force in the evolution of cyber security and the convergence of networking and security. The Fortinet OT security platform provides protection across IT OT networks against advanced threats and the expanding attack surface. I mean this is a thorough cyber security solution. We're talking specialized OT threat intelligence monitoring over 80 OT protocols and 500 plus signatures of known vulnerabilities in OT environments and hey I could throw stats at you all day but what you really should do is listen to episode 204 to hear it straight from Fortinet. We've got an entire episode about OT security best practices and you can find it by going to manufacturinghappyhour.com/204. More than 615,000 customers trust Fortinet to protect their businesses and they ranked number one in the most security appliances shipped worldwide. Learn more at fortinet.com/ot or email them at [email protected] and now back to the show. We've been talking a lot about the process, some of the digitization behind that process. Let's talk about the people behind the process for a little bit as well because you mentioned you created this brand new facility with a lot of additional automation yet at the end of the day everyone still had a job when you opened up this new facility and moved over from the old facility. Go into that a little bit more how that plays out in the context of someone that's making so many different foods like a quick trip. Sure, automation really is part of our growth pattern. There isn't a project that that we take on without evaluating whether or not automation fits or how it may fit. It doesn't mean we automate everything but where we apply automation the inherent growth of quick trip as a whole and the growth we see in manufacturing it doesn't remove jobs. There is always a job there. That is really another benefit of quick trip. The investments they make into their people and the culture that we have there and the growth just facilitates those opportunities for those people that a robot for example might replace at a moment. Yeah, well I think one of the things that stuck out was the plant that used to be bread and bun. You said you're creating a new donut line on that plant. Is that correct? That is correct. Donuts is a great category for us in the sweet plant and we're putting in a new dunker and cake donut line. Okay. And we're also going to automate packaging on an existing line. So most of our donut products are now going to be packed in final packaging through the robotic systems. Yeah, when I think of something like that I see that opening up more roles within the company right now. You're going to have this additional facility where you're making more stuff and you're going to need more people behind those processes even though they are automated. If you think of maintenance for example the more equipment you have in place the more automation you have in place. It takes a certain amount of expertise and personnel to manage that and manage the maintenance. With Scott's group, Scott can speak to this. We continue to grow certain areas of the business in order to manage it on a day-to-day basis. Scott's group is intimately involved with those facets as well. Supporting all the integration needs, adjustments in programming, other facets of controls and the enterprise systems that are in place. One of the things that stuck out that Scott I think you can talk to on this was Paul you made the comment on the tour. Actually I made the comment I'm like so it's got to be pretty critical that your bun making line which is a continuous process for the reason of hey the yeast is always interacting until it goes into the oven. How do you make sure that thing never shuts down? And your first answer I believe was predictive maintenance. So Scott how are you leveraging your systems to make sure that you never run into a downtime situation like that or that you're doing everything you can to avoid them? Our maintenance staff has a CMMS program and they are diligent about PMs and staying on top of the equipment in terms of the routine needs and that in turn pays dividends long term since there's less unexpected downtime. So they work closely with operations to schedule timeframes where they can go in and do an overhaul on a piece of equipment or something and it's all driven through CMMS so there's traceability there in some regard too. When you're running so many different plants how do different operations leaders throughout the company collaborate to improve operations right? Obviously a milk plant is different than a bakery you know I'm curious what that cross product collaboration looks like. So we have a continuous improvement group that are within the business that works with all respective groups and areas to work on those kind of business improvements that make sense for Quattro. One other question I had was around sourcing like we talked about how you're doing your own blow molding and then that goes to bottling the milk as well but you're also getting milk within I believe a hundred mile radius of you know the area where the facilities are. How does that make it easier from a production and operations standpoint? Well first off it ensures freshness. We're able to process milk direct from the farm and extend that freshness to the guests. Really from a freshness standpoint our guests aren't going to buy anything fresher than what we provide. It's not inconceivable that somebody could be buying a bottle of milk off our shelf that was in the cow less than 24 hours prior. Yeah no I remember when you said that it's like it's conceivable that within a day you could be drinking milk that was still within the cow just 24 hours or less beforehand that was pretty impressive. One other question I have is you make ship and sell around 80% of your own branded products right so that's the strong majority of it but it's not everything. How do you decide what to produce and what to outsource and is there a roadmap to be like hey we outsource this today but we might be making that on our own soon as well? Sure well really volume drives that with great volumes it improves the opportunity for producing those products in-house. Another question I have around the volume and just the sheer amount of stuff you do this is more of a technology and innovation question and Scott I think it would be great to have you answer this one first. How does technology allow you to operate effectively as a company that manufactures so many different things? Everything we do in terms of technology for food safety is built around food safety doctrine and policies that are either government regulated at federal level or state level and then interpreted within our campus by our quality teams and then we build out a model based on that and try and deploy that accordingly across all areas in a similar fashion so if you're looking at for example a genealogy or track and trace report from one facility it has a similar look and feel to an entirely different product from a different facility by following the the food safety requirements. Well I'm glad you touched on food safety because another question I wanted to ask you was quick trip also and correct me if I'm wrong you have a food innovation team? Yeah we have an R&D team that works broadly with several different areas within quick trip from retail to operations to quality assurance projects as well as they work on solutions that may be a potential addition to the portfolio there of vertical integration. How do you work with them to make sure quality everything you mentioned makes a lot of sense but I also as someone that was an engineering student a long time ago that didn't always think about manufacturability when I was designing something that wasn't necessarily the first thought in my mind how do you collaborate with the food innovation team to make sure their ideas are practical from a manufacturer ability standpoint? We start with finding a vendor or an equipment manufacturer that offers the equipment to produce whatever product it is we put in a sous vide line for example for folks who don't know what sous vide is it's cooking in a water bath in a sealed bag we did that at a large scale but neither Paul nor I had any experience with sous vide before we put that in so we found the right partner that helped us get through that and now we have a sous vide capacity capability within one of our facilities. So maybe to expand a little bit more we spend a lot of time attending different trade shows conferences PR is a big deal we may have not the right relationships or knowledge of certain OEMs for example however we've got enough connection out there in the field that other OEMs will point us in certain directions that will research. The travels depending on the scope of the project can be somewhat of a scale as an example you mentioned Brett and Bunn I think remembering back we probably traveled as a group to 26 different locations around the U.S., Canada as well as Europe just vetting through companies solutions technology the gamut a whole lot of work that was into that to ultimately determine best decisions relative to overall design. Yeah and another part of the story that sticks out was when we were talking about this inside of the plant I was looking around I'm like okay so you're your only customer right the stuff you make is going to a quick trip store so you have a very unique competitive position based on being vertically integrated in that you can share best practices with other manufacturers because you're out here doing your own thing. To an extent a quick trips also involved with various share groups where a lot of information is shared across the board but back to that point it makes it a little easier for our OEMs to get into some of their other customers for example sticking with the same example on Brett and Bunn's we were in a number of different locations around the country very large producers and learning best methods but also learning what not to do. Next round of our interview is coming up right after a word from our sponsor. MaintainX is manufacturing happy hours maintenance and asset management partner. Their CMMS platform empowers the folks on the front lines of industry helping them manage equipment and facilities while turning them into the knowledge workers they are. Want to learn more? Well this is a manufacturing podcast so let's talk about some concrete data. One, MaintainX has the best technician experience on earth. It is so user-friendly that managers report saving 5.8 hours weekly due to streamline processes. Two, manufacturers using MaintainX have seen an impressive 32% average savings in monthly maintenance costs and three, their customers report an average of 33% reduction in unplanned downtime directly adding to capacity. Go to MaintainX.com to learn more and meet the crew and while you're at it make sure to tune in to episode 206 to get to know their co-founder Nick Haas by going to manufacturinghappyhour.com/206. And now back to today's episode. Do you have advice to other manufacturers that might be thinking it's like, huh you know we've thought about vertically integrating for a while or we've thought about taking on this other process in-house. I mean what advice would you share for folks that might be entertaining that journey. I don't know how many folks out there are thinking of doing that but is there a tip you'd give to the audience? Well first off it doesn't necessarily come cheap so there's investment considerations and so forth. It's also the co-workers, the personnel, are the right people in the right place that can help support those ventures. I would add open-mindedness too so what Paul and I have dealt with over the years is you have a group of people with a lot of experience and they've always done it this way and why change things if it's always worked this way. Well we come in and explore other opportunities with different manufacturers or different process types and have improved things along the way. If I may I think really the biggest key there is the commitment level from the owners. If you have ownership that is thoroughly committed to vertical integration that's really where it starts and we have that employee as a quick trip. One of our core values in fact is innovation. Let me ask this as well because I see where you have to have leadership that's bought in on that strategy. On the flip side do you frequently source ideas from the folks on like the front line on the plant floor doing the packaging? What process are in place to make sure the folks that are experiencing packaging and seeing things go through the continuous and batch baking processes every day are getting their voices heard and contributing to that innovation as well. You know with the culture that's in place at Quick Trip there's a whole lot of communication and open discussion and that really starts at the top and it cascades all the way through the organization at every level. When we look at specific projects it's our standard to build a project core team specific to the application or the project and the scope of the project. On average we may be assembling core teams that are anywhere from eight to maybe 1112 people and that ranges from the director of the operation that the project resides to quality assurance to controls and automation and the OT group to floor managers and supervisors. Maintenance is an automatic there isn't a project we don't do without maintenance involved. That's just the core team but beyond that when we get to certain points within that project exercise or planning effort we're engaging many other people as required so communications really an important part of getting things right and listening to your people. Yeah I think one of the things that stuck out in that answer was you started with culture and I'm curious you know you have you have a strong brand you have a strong culture what strategies or programs do you have in place that attract and retain talent here in western Wisconsin we're kind of going beyond the four walls of Quick Trip a little bit here but how are you bringing that talent here getting that talent to stay in this region. Sure our talent operations group also has a recruiting group that is an expert in all facets of the business. Quick Trip is involved with all kinds of social media programs. Pay and benefits programs are attractive you know they're always reviewing area industry and ensuring we're competitive there. Yep and Quick Trip has a 40% profit sharing program. Oh okay. So our owners share 40% of net profits with the co-workers and that really helps facilitate not only retention but a level of ownership in the business. So you've got the profit sharing you mentioned start you have the daycare you're constantly reviewing the things that are there how does training play into this as well I think it's a fitting question because we're sitting here at the local technical college you know how does training fit into your retention strategy training upskilling and are there things you do to collaborate with western technical college that contribute to that as well. Sure well specific to WTC and some other areas we do have internships and apprenticeships in place that through those partnerships students are learning their trade to come within the school system but they're also getting real life experiences working with the teams at Quick Trip in specific roles. Yeah and growth opportunities so for example we have four automation engineers and all four of them came through this program at WTC and so they have advanced from maintenance and shown interest in automation and then stepped into the automation engineering role. So you have the you have the proof right inside of the facility of how these programs have not only gotten people into roles but advanced their careers as well. One other question I have before we wrap this up I was talking about some of my experience on the tour this morning can you each share what it's like when someone steps foot into your manufacturing facility for the first time. I shared what my impression was I'd love to hear kind of what you get to see on a regular basis when you're bringing people there for a tour. Scott maybe if you want to lead us off on this one and then Paul will have you wrap us up. I would say most people familiar with Quick Trip aren't familiar with our vertical integration model so the manufacturing capabilities we have right here in the lacrosse area our world class the bread and bun facility you toured today was the most day-to-the-art advanced manufacturing bakery in the world at one time and for someone to walk into lacrosse Wisconsin bakery and and see the robotics and the level of integration we have is usually a surprise. Yeah yeah Paul what would you add to that. I would say one of the things that immediately stands out and you mentioned it earlier is the cleanliness and the focus on quality I'd also say that we've received a lot of feedback that the interaction and just viewing our people our co-workers everybody seems happy it's an enjoyable place to work so we get that a lot just kind of adding a little bit to what Scott already said and that is people are typically surprised and impressed regarding the level of technology that we're doing their Quick Trip specific to manufacturing we usually hear very positive reports and feedback regarding where manufacturing is at and the state of mind that our people are in in that regard. Yeah you know I just want to go over buy the numbers really quickly but before we get out of here because we were talking about we've highlighted the bread and bun bakery quite a bit and how you have this mix of continuous and batch processes what you have from an ERP MES and SCADA standpoint how that allows it to operate but I think one of the things that blew my mind was just the amount that goes through there like you do 11 different bread varieties in there is that correct and I've got the sheet in front of me but Paul you recited these all perfectly today without even looking at anything give everyone the sheer size of your operation before we wrap up. Okay well with bread and bun we do 11 varieties of bread we do seven varieties of buns relative to those items our bun line will produce as many as 1600 units a minute that happens to be the hamburger bun bread we do 225 loaves a minute when you talk about some of the other facilities such as the kitchens we're we're doing take-home meals we're doing fresh produce we are manufacturing pizzas we do soups we do sandwiches we do burritos so to mention a few and with the sweet plant we talked about donuts before if you look at an individual item glazer glazers we're doing about your signature donuts for those that aren't familiar that is correct we're doing about 48 plus million glazer donuts here cookies I think we're we're pushing that 50 million a year all cookies in so just to mention a few of those numbers relative to dairy we're pushing 23 million pounds of milk a month so just for some perspective there we do have an ice cream plant as well I I don't think I'm being biased when I say we get a lot of positive reports in our ice cream our ice cream is fabulous I should have done this quiz show style you like you like got you you've nailed all of these stats it's it's it's very impressive not only your knowledge of all these and the memory you have around this but just the the sheer amount of stuff that quick trip does I guess I I think I do have an appropriate closing question then what is your go to food item order when you go to a quick trip Scott what do you what do you typically get wow um I would say probably a burritos yeah they're tasty I mean short of the beer cave short of burritos and the beer cave why not just stop by the beer cave as well Paul what about you I like the cold sandwiches in the cold spot but I have to say I mentioned ice cream if I had to pick my favorite item it's ice cream it's a little less healthy but it's very good I didn't say it had to be the healthiest item there I mean I I actually I don't know why I didn't mention this earlier but I literally went to quick trip twice today every meal I've had in preparation for this interview has been from quick trip so got my coffee and a glazer from there on the drive over from Milwaukee this morning and then grabbed a chicken sandwich and some urge potato chips for lunch yeah it's been been quite the quick trip centric day I appreciate you both jumping on here for our figurative trip to the beer cave for a Wisconsin beverage in a conversation so thank you so much for taking us through quick trips operation Chris appreciate the time cheers gentlemen hey thanks for listening hope you enjoyed that one and man I wish we could have recorded a little more after this was done because myself Paul and Scott had some great sidebar conversations after we wrapped up the recorded portion of this interview you know they were saying how they feel that they are just phenomenal quick trip as an organization when it comes to communicating and sharing ideas new folks are impressed with their transparency the ownership the visibility to performance it really is something that they're proud of and it's something that hopefully you heard it allows them to take their business to the next level so you know if I were to recap a few of my takeaways just looking back at my notes I really liked what Scott had to say around standardization on hardware and how that allows them to deploy software in a standard fashion as well that's definitely something I would consider part of a modern manufacturing facility love the partnership they have with it as well also right in line with the theme of vertical integration they talked about having more volume and when that happens they have more opportunity to in source then finally the way they talked about their project teams you know how the maintenance team is always included the different personas they talk about I feel every end user aspires to be what quick trip is in this capacity so hey if you want to learn more check out the show notes page at manufacturing happy hour dot com slash 211 and I also want to thank our sponsors today Fortinet and maintain X definitely check out our security partner Fortinet and our CMMS digitized maintenance partner maintain X you can check them out over at the show notes as well you know one other group I want to thank is western technical college really the whole reason this interview and last week's interview were able to happen was they brought me out there for a keynote for their manufacturing week event great time they're doing great things for education over there and hey if you're interested in potentially having me speak at one of your events whether that's a sales kickoff whether that's an association meeting shoot me an email at info at manufacturing happy hour dot com with the subject line keynote and with that that's a wrap stay innovative stay thirsty and we'll catch you again next week cheers thanks for listening to manufacturing happy hour powered by the industrial network

Podcast Summary

Key Points:

  1. QuickTrip follows a vertical integration strategy in manufacturing food products for its convenience stores.
  2. The company controls pricing, quality, and food safety through in-house production.
  3. Automation and ERP integration enhance QuickTrip's operational efficiency and decision-making.
  4. QuickTrip invests in automation without eliminating jobs, focusing on growth and opportunities for employees.
  5. The company is expanding its product lines, like adding a donut production line, while automating packaging processes.

Summary:

QuickTrip, a highly vertically integrated convenience store chain, manufactures its own food products to ensure control over pricing, quality, and food safety. The company leverages automation and ERP integration to enhance operational efficiency and decision-making. Despite investing in automation, QuickTrip prioritizes growth and opportunities for its employees, ensuring that automation complements human roles.

The company's expansion includes adding a new donut production line and automating packaging processes, which will create more roles within the company. QuickTrip's strategy showcases how vertical integration, automation, and employee-focused growth can drive success in modern manufacturing.

FAQs

Vertical integration at QuickTrip involves manufacturing their own food products and managing everything from production to distribution in-house.

Vertical integration allows QuickTrip to control pricing, ensure quality, and maintain food safety standards.

Automation standardizes processes, improves efficiency, and provides visibility across the production chain at QuickTrip.

QuickTrip invests in automation while also creating job opportunities by expanding their product lines and facilities, requiring skilled personnel for maintenance and operations.

QuickTrip leverages predictive maintenance through their systems to prevent downtime and ensure uninterrupted operation of critical production lines.

QuickTrip manufactures a variety of products in-house, including bread, buns, milk, sandwiches, pizza, donuts, and more.

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