Page 9 - 2019 Apple Supply Chain Co-op, Inc. Annual Report_No Financials

Accomplishments

Food Procurement Administration

• Mitigated China tariff impacts by proactively finding • Implemented a new sourcing fee program that simplifies
alternate sources out of other countries administration, avoided incremental headcount, and
• Negotiated a $7 million savings on Applebee’s top sirloins improves relationships with distribution centers
and $6 million savings on Applebee’s/IHOP poultry
programs for 2019 • Implemented two new Member loan programs to facilitate
• Converted Applebee’s system to ground beef portions with equipment roll out
labor savings of $5.1 million
Member Services
Enterprise Systems • Promoted water and waste conservation through an
Chris McNutt and Administration additional 563 restaurants adopting the Conservewell

Vice President • Conducted a network penetration and security test that program, saving an incremental 220 million gallons of
water per year and approximately $3.7M
Brand Program Management enhanced overall security • Coordinated the OJ Equipment Rollout with Pepsi, Florida’s
• Implemented the Microsoft Teams collaboration platform to Natural and a network of service providers
realize efficiency gains • 99% of the IHOP system successfully converted
• Hosted a CSCS Summit attended by over 170 Applebee’s to the new OJ platform
and IHOP suppliers • Excluded from the transition were some non-
traditional locations and restaurants scheduled
Distribution and Logistics to close
• Restructured freight management to generate savings of
$7.7M+ in year 2020 and beyond Data Analytics
• Recovered $1M in pricing overcharges from various • Developed a series of “Role Driven Dashboards” for 14 key
distribution centers and returned to Members positions in the organization that centralize information,
• Completed a refresh of the 5-10 year distribution strategy exception lists, triggers and trends
to position Applebee’s and IHOP as Customer of Choice in a • Partnered with Kansas State University on an MBA
competitive distribution landscape capstone project focusing on mining social media posts
• Eliminated six produce distribution centers while mitigating and relationships to the supply chain
$3.6M in costs vs. the USDA market

Brand Program Management

• With ten days notice, managed and allocate 2.6M pounds We've realized a lot of value in this relation-
of chicken wings to support Applebee’s $.25 promotion ship because we have taken a strategic
• Avoided tortilla shortages during a time when other brands
had to close restaurants due to supplier issues view to how we have engaged the college.
There are so many opportunities available if
you can think creatively about how you can
engage the college as a resource to add
value for your company.

Results through Win-Win Relationship 9
Relationships
K-State's relationship with Centralized Supply Chain Services
provides a model for mutually beneficial collaboration between
university and industry.