Page 14 - 2019 Apple Supply Chain Co-op, Inc. Annual Report_No Financials

Apple ReD Savings Growth
2014-2019

1,900,000 $1.62 $1.75
1,700,000 $1.34 $1.50
1,500,000 $1.17 $1.25
1,300,000

1,100,000 $1.00 $1.09 $1.06 $1.00
900,000 $0.75
700,000
500,000 $0.50
2014 2015 2016 2017 2018 2019

Apple Savings $ Apple Cases Shipped Apple Per Case Savings

3PL RFP (Third Party Logistics)
In 2019, Kinexo was awarded the exclusive CSCS freight partner. Already the existing Re-D partner of choice, Kinexo has a proven history
of value-add partnership. In December, Kinexo hired a dedicated resource to support CSCS freight initiatives. Their vast carrier base
and freight knowledge creates a competitive advantage for the Co-op. CSCS held rates for existing RFP lanes delivering $178k in freight
savings. New Kinexo managed lanes will go live in 2020 and will provide significant benefit.

Revenue Sharing (Rebates)
Freight rebate programs aim to benefit Co-op Members and distributors through collaboration that maximizes overall freight revenue.
Savings are returned to Operators in the form of a rebate. In 2019, CSCS generated $422k in rebates to Applebee’s Members.

Apple Co-Op
Distribution of Freight Savings

Retarget Analysis 17%
Retarget analysis is a monthly evaluation to increase the distributor
purchase order size to a three-week buying bracket. By increasing
PO volumes, CSCS can reduce freight costs to members. In 2019 11%
the retarget analysis generated $279k in savings. 65%

7%

Frt Bracket Retarget 3PL RFP
ReD/Kinexo Shared Savings

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