Page 381 - Tom Finocchiaro - RPI Apple Onboarding

Applebee’s Freight Management-2018

Transportation costs are reduced by leveraging third-party logistics providers (3PL’s), distributor shared savings
programs, redistribution services (ReD), and retarget analysis. Each program requires a comprehensive
evaluation of freight cost where CSCS coordinates lane transitions that result in overall savings to Co-op
members. Our 2018 strategy is to deliver freight savings in the amount of $2.4 million.

 Mega Bid – $400k
• Leverage third party logistics partners through an RFP
• Validate supplier rates against current market conditions
• Transition lanes to reduce freight cost

 Revenue Sharing – $900k
• Collaborate with distributors via bi-monthly calls
• Maximize backhaul and DC third party lanes
• Return savings to Co-op members in the form of a rebate

 Redistribution-$900k
• Identify slow moving, less than truckload (LTL) shipments
• Redirect to Kinexo in full truckloads (FTL)
• Combine multiple supplier LTL items and ship in FTL to distributors

 Retarget Analysis -$200k
• Evaluate distributor three-week volume
• Maximize purchase order size
• Increase freight bracket which lowers freight cost