Page 152 - Tom Finocchiaro - RPI Apple Onboarding

BRAND PROGRAMS

The Brand Programs Management team is responsible for working with the Brand’s cross-functional team
to support new product development, testing, promotions, SKU transitions, and deletions. The collaboration begins with the
new product development process and ends with the implementation of promotions or menu changes. During new product
development, our Brand Programs team works with the Applebee’s Marketing and Culinary groups to identify and leverage
the appropriate suppliers in the item development process with the goal of providing transparency of cost drivers, supply
risks, and alternatives to help them make the most informed decisions going into test. Once in test, the team is responsible
for communicating expected demand to participating vendors and distributors, comparing sales to expected demand, and
reacting appropriately with either allocations or expediting to maintain continuity of supply for items that are doing better than
expected. At the conclusion of each test, the team manages the invoicing process to make sure vendors and distributors are
paid appropriately and timely. Once the Brand decides to move forward with a promotional or menu change, they provide a
forecast to the BPM team with the expected impact those changes will have to traffic and plate sales mix. The BPM team is
responsible for translating plate sales change into SKU change. We then work with the CSCS Procurement team to build out a
supply plan. The risks associated with that supply plan are specified in a document called an AIP. The AIP is signed by CSCS
and Brand leadership as well as the Co-op Board Chairman. That document designates liability and authorizes CSCS to act as
a purchasing agent for the event.

For every menu or promotional event supported, a detailed scorecard is completed that measures our performance. These
scorecards are reviewed with the CSCS Co-op Board of Directors. The key attributes measured are:

• Timely Forecast – Forecast delivered to CSCS complete and with appropriate lead time
• Timely Authorization of Inventory Purchase (AIP) – All appropriate signatures
• Forecast Integrity – Absolute value variance of weighted average sales versus forecast
• Product Availability – Products available for start-up and throughout promotional period
• Obsolescence / Cost – Dollar impact to Members and Brand

In 2017, CSCS restructured the BPM team to enhance productivity by consolidating the work team in Kansas City and creating
Brand specific liaison roles located in the Glendale office. Consolidation of the work team in Kansas City enables them to
work seamlessly with the Procurement, Logistics, and Data Analytics departments in real time, allowing for more efficiency
and consistency. The Brand specific liaisons work directly with the cross-functional teams in Glendale to streamline the
communication between each Brand and the work groups in Kansas City. They are the eyes, ears, and mouthpieces of the
CSCS team to each Brand. The BPM team continues to make improvements to technology, processes, and personnel to ensure
product availability for our Members as well as execute the changes being driven by the RPI initiative.

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