Page 16 - 2018 Apple Annual Report

BRAND PROGRAMS

The Brand Programs Management (BPM) 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 Apple Co-op Board of Directors. The key attributes
measured are:
• Timely Forecast – Forecast delivered to CSCS is 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 2018, CSCS restructured a portion of the BPM team to enhance productivity of the work team in Kansas City by
splitting inventory strategy and distributor inventory management into distinct roles. This change has resulted in
increased concentration around these two important accountabilities. The Inventory Strategist works closely with
the Brand Liaison and the vendors to build the plans out to manage change in the system. The DC Liaisons are
broken up geographically to work directly with their subset of distribution centers to make sure they understand
the change coming from the Inventory Strategists as well as ensure the DCs are taking the appropriate actions
required to manage that change. They would also help the DCs work through any unexpected vendor production
issues, item transitions, substitutions, shipping delays, payment issues, etc. This past year the team worked
through a multitude of changes driven by both cost savings with RPM as well as Brand driven changes with
the Marketing calendar. RPM accounted for 35 projects, 560 SKU/DC transitions and another 12 items tested.
Additionally, the Marketing calendar provided 30 new projects, 2,832 SKU/DC transitions and 58 items tested. The
BPM team continues to make improvements to technology, processes, and personnel investment to ensure product
availability for our Members as well as execute the changes being driven by RPM.

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