Page 15 - 2018 Apple Annual Report

LOGISTICS
LOGISTICS

Retarget Analysis
Retarget Analysis
A retarget analysis is completed quarterly to identify opportunities to increase distributor purchase order size in order to
A retarget analysis is completed quarterly to identify opportunities to increase distributor purchase order size in order to
reduce freight costs. In 2018 the retarget analysis yielded a total of $250k in savings.
reduce freight costs. In 2018, the retarget analysis yielded a total of $250K in savings.
PRODUCE MANAGEMENT
PRODUCE MANAGEMENT

CSCS contracts resulted in savings when comparing to USDA markets. The table below reflects lower costs of CSCS
CSCS contracts resulted in savings when comparing to USDA markets. The table below reflects lower costs of CSCS
contract prices when compared to USDA market price. Contracts also provide price protections during active markets.
contract prices when compared to USDA market price. Contracts also provide price protections during active markets.

Number of Pounds
Savings - CSCS
Number of Pounds Savings - CSCS
Product Category
Product Category
Contracts vs. Market
2018 Contracts vs. Market
2018
Broccoli Crown
Broccoli Crown 960,420 $ 123,966
960,420
$ 123,966
Celery 3,333,182 Applebee’s Distributor Annual Service Performance
Celery
$ (1,867)
3,333,182
$ (1,867)
$ 522,079
3,785,694
Lemon
Lemon 3,785,694 100% $ 522,079
99%
Lettuce Iceburg
Lettuce Iceburg 5,728,437 98% $ 614,269
5,728,437
$ 614,269
97%
Applebee’s Distributor Annual Service Performance
96%
Lettuce Romaine 7,645,117 95% $ 410,368 Fill rate
Lettuce Romaine
7,645,117
$ 410,368
100%
94%
On time delivery
99%
Onion Red 2,124,277 93% $ 149,755
Onion Red
2,124,277
$ 149,755
98%
92%
97%
91%
96%
Onion Yellow
Onion Yellow 4,205,029 90% 2014 2015 2016 2017 2018 Fill rate
$ 95,794
$ 95,794
4,205,029
95%
94% On time delivery
5,532,983
Potato Baker 5,532,983 93% $ 109,875
Potato Baker
$ 109,875
92%
91%
Potato Red
Potato Red 10,106,167 90% 2014 2015 2016 2017 2018
10,106,167
$ 109,875
$ 109,875
$ 2,134,114
$ 2,134,114
Total Savings
Total Savings Applebee’s — 2018
Lettuce Iceberg 24 ct
$614,269 Annual Savings to Market
$50.00
Lemon crops faced very tight supply between July and
Lemon crops faced very tight supply between July and Applebee’s — 2018
Lettuce Iceberg 24 ct
September due to extreme heat causing lemons to drop from $40.00 $614,269 Annual Savings to Market
September due to extreme heat causing lemons to be dropping
from the trees resulting in reduced supply and higher market ??? Source $30.00 CSCS System Price
the trees resulting in reduced supply and higher market prices.
$50.00
Church Brothers (CA)
prices. CSCS lemon contracts trigger pricing provided $20.00 Taylor Farms (CA)
CSCS lemon contracts trigger-pricing provided protection
USDA Price
$40.00
against extreme market highs and secured supply of quality
protection against extreme market highs and secured supply of $10.00 CSCS System Price
$30.00
quality lemons during this tight supply period. This resulted in ??? Source $0.00 Church Brothers (CA)
lemons during this tight supply period. This resulted in savings
Taylor Farms (CA)
$20.00
savings of $522,079 annualized compared to market.
of $522,079 annualized compared to market for Apple Co-op 01/07/18 02/11/18 02/1?/18 04/22/18 05/27/18 07/??/18 08/01/18 09/0?/18 10/1?/18 11/1?/18 12/??/18 USDA Price
Beginning of Week Date
Members. $10.00
CSCS contracts also reduce the price volatility; examples are $0.00 01/07/18 02/11/18 02/1?/18 04/22/18 05/27/18 07/??/18 08/01/18 09/0?/18 10/1?/18 11/1?/18 12/??/18
Beginning of Week Date
Iceberg Lettuce and Romaine Lettuce. The chart below shows
CSCS contracts also reduce price volatility; examples are
Iceberg Lettuce and Romaine Lettuce. The charts to the right
pressure on supplies throughout the year.
show pressure on supplies throughout the year. Applebee’s — 2018
2018 was a challenging year for Romaine. The FDA launched Lettuce Romaine 24 ct
$410,368 Annual Savings to Market
2018 was a challenging year for Romaine. The FDA launched
two advisories in 2018 and during that time CSCS and the Dine $30.00
two advisories in 2018 and during that time CSCS and the Dine
Brands cross functional team came together daily to maintain Applebee’s — 2018
Lettuce Romaine 24 ct
Brands cross functional team came together daily to maintain
supply of replacement product and manage communications $20.00 CSCS System Price
$410,368 Annual Savings to Market
supply of replacement product and manage communications ??? Source $30.00 Church Brothers (CA)
to operators, distributors and suppliers. Moving forward each
Taylor Farms (CA)
to operators, distributors and suppliers. Moving forward each
carton of Romaine will have the growing region on the label. $10.00 USDA Price
carton of Romaine will have the growing region on the label. ion $20.00 CSCS System Price
This is an attempt to allow the FDA to isolate the growing reg
Church Brothers (CA)
when issuing advisories in the future. ??? Source $0.00 01/07/18 02/11/18 02/1?/18 04/22/18 05/27/18 07/??/18 08/01/18 09/0?/18 10/1?/18 11/1?/18 12/??/18 Taylor Farms (CA)
This is an attempt to allow the FDA to isolate the growing region
USDA Price
Beginning of Week Date
when issuing advisories in the future. $10.00
$0.00
01/07/18 02/11/18 02/1?/18 04/22/18 05/27/18 07/??/18 08/01/18 09/0?/18 10/1?/18 11/1?/18 12/??/18 15 15
Beginning of Week Date