Page 222 - Board Member Onboardin August 2019
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MESSAGES
Peter DeGast
Board Chairman, Pancake Supply Chain Co-op
" Sometimes change springs from within, and
sometimes it is sprung upon us as in the case of
distribution. But in both instances, it requires
proactive leadership "
In our industry, embracing change is a matter of survival. Without it, we are standing still and become easy
targets for the next innovative concept. At the same time, change can be difficult in our system, requiring high
levels of coordination and execution among 304 Members. In a seemingly endless array of possibilities, how
do we identify the changes worthy of our collective time and effort that will help us thrive in a hyper-competitive
landscape?
You may not think about it often, but you have an ownership stake in a company that is driving positive change
for your business every day. Centralized Supply Chain Services, or CSCS, exists to focus on our collective
bottom line – by negotiating lowest sustainable prices, ensuring continuity of supply, and supporting IHOP in
innovation and product development. Mike Leikam leads a team of passionate supply chain professionals
whose interests are aligned with our own, so we can be confident in their tireless work to identify new and
creative ways to drive change that creates competitive advantages for us. I encourage you to read this report
and learn about all the ways this was accomplished in 2018, starting with the changes undertaken to deal with
the new realities of food distribution and the promising work resulting from the Restaurant Profitability
Management Initiative or RPM.
The importance of RPM can’t be overstated. The $8 million in savings generated by RPM in 2018 is only
scratching the surface of benefits delivered. Behind the scenes, CSCS was busy driving changes to their own
processes and assumptions to better align with IHOP on cost savings priorities, and to operationalize a new
governance structure that creates visibility to all stakeholders, including franchisees. As easy as this may sound,
I can assure you it was anything but easy. The level of change required by everyone involved was significant. In
last year’s letter, I promised incremental value in terms of measurable savings and process improvements. I’m
proud to report both, and excited to see what future benefits will come out of this new way of doing business.
Sometimes change springs from within, and sometimes it is sprung upon us as in the case of distribution. But in
both instances, it requires proactive leadership. The CSCS team is choosing to find opportunity in the industry-
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