Page 14 - Pancake_Supply_Chain_Co-op_Inc._2016_Annual_Report

Optimizing the network will be a regionalized approach and mid central
start dates are listed in the treemap chart. The optimization produce distribution 801 Restaurants
process will take approximately nine months from start to finish optimization 17 Distributors
for each region, and Operators will be notified prior to their start
date. Each region will have an Operator Oversight Committee. Mar 19

east coast south east
741 Restaurants 620 Restaurants
apple co-op freight savings pancake co-op freight savings 12 Distributors 18 Distributors
target vs. actual target vs. actual
Mar 17 Nov 18
100 90 90
100
90 90 91% 80 80 80% 86%
85% south central west coast
80 80
70 70 474 Restaurants 456 Restaurants
70 70 16 Distributors 10 Distributors
60 60
60 60
percent 50 50 58% percent 50 50 53% $2.7mm Jul 18 Nov 17 pacific
40 40
40 40
30 30 30 30 north east northwest
458 Restaurants
20 20 20 20 13 Distributors 124 Restaurants
5 Distributors
10 10 10 10
Jul 17
0 0 0 0 Mar 18
2014 2015 2016 2014 2015 2016

Distributor Business Reviews
Distribution Management CSCS conducted business reviews with six of the eight
distribution companies that service IHOP restaurants. The
Distributor Service remaining business review was rescheduled to early 2017.
Distributor performance challenges shifted for IHOP restaurants CSCS has not pursued business reviews with the non-preferred
and the Logistics team in 2016. Through CSCS-monitored distributor that still services the Brand. Member participation in
performance plans, some distributors were able to return the meetings continues to grow, and we constantly update and
service levels back to, and in some cases, exceed contract revise the agenda to reflect current conditions that impact IHOP
standards. One large distributor continues to struggle with restaurants.
satisfactory performance to IHOP due to the current warehouse
and driver shortages experienced nationwide and was placed
on performance probation. CSCS has conducted several
meetings in the region and continues to monitor weekly
performance reporting by restaurant to help this and other
distributors target needed areas of service improvement.

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