Page 14 - 2019 Pancake Supply Chain Co-op, Inc. Annual Report

Ihop ReD Savings Growth
2014-2019
4,200,000 $2.80
3,800,000 $2.69 $2.60
3,400,000 $2.40
3,000,000 $2.23 $2.20
2,600,000 $2.03 $2.00
2,200,000 $2.02 $1.80
1,800,000 $1.51 $1.60

1,400,000
1,000,000 $1.21 $1.40
600,000 $1.20
200,000 2014 2015 2016 2017 2018 2019 $1.00

Ihop Savings $ Ihop Cases Shipped Ihop Per Case Savings

3PL RFP (Third Party Logistics)
In 2019, Kinexo was selected as 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 $356k in
freight savings. New Kinexo managed lanes 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 subsequently returned to Operators in the form of a rebate. In 2019, CSCS generated $513k in rebates to IHOP Members.

Pancake Co-Op
Distribution of Freight Savings

11% 1%
Retarget Analysis
Retarget analysis is a monthly evaluation to increase the distributor 8%
purchase order size to a three-week buying bracket. By increasing
PO volumes, CSCS can reduce freight costs to Members. In 2019,
the retarget analysis generated $70k in savings. 80%

Frt Bracket Retarget 3PL RFP
ReD/Kinexo Shared Savings

14