Page 230 - Board Member Onboardin August 2019

LOGISTICS
LOGISTICS

A B

A B

DISTRIBUTION MANAGEMENT CSCS has been in discussion with distributors and other
DISTRIBUTION MANAGEMENT
distributors are reducing their exposure to chain
industry associates to address the current and future
restaurants which in turn is reducing total capacity.
Distributor Service business landscape, assist distributors in maintaining
Distributor Service
Continuing challenges in the distribution landscape continuity of supply, and reduce disruption to restaurant
To ensure long-term continuity of supply, CSCS’ priority
Continuing challenges for distributors have resulted in
have resulted in significant service issues for IHOP operations.
significant service issues across the restaurant industry, is to become a Customer of Choice for our strategic
restaurants in certain regions. The distributors’ ability
and in certain regions of the country, IHOP has not been distribution partners. We have conducted top-to-top
to make deliveries within the scheduled window has The Logistics team formed a Distribution Task Force
immune to the impacts. The well-publicized shortage of meetings with each of our distributors to strengthen our
steadily declined since 2016, primarily attributed to a comprised of CSCS Member associates to examine
relationships and to understand what we must do as a
CDL drivers and warehouse personnel is transforming
continual decrease in the number of available qualified distribution expectations and develop strategies for our
system to ensure future service.
industry dynamics. Chain distributors are demanding
drivers. The slight decline in fill rate over the past three approach to improved distribution service.
higher distribution fees to offset higher costs, along
years reflects distributors’ inability to hire and retain In addition to these meetings, CSCS has formed a nine-
with other changes that will assist them in attracting
warehouse associates. Distribution Agreements and Transitions
part plan to address both short-term service issues and
and retaining drivers. Even with these concessions,
Sysco Atlanta and Sysco Charlotte agreements expired
the long-term threat to your businesses.
IHOP Distributor Annual Service Performance November 1, 2018. CSCS transitioned 214 IHOP
Distribution Strategy Assessment - with assistance
100% restaurants to two new Southeast distribution centers,
from an industry consultant, reshaping our 10-year
99% both part of distribution systems currently servicing
98% the Brand. At the same time, CSCS managed three
97% distribution strategy to plan for the new industry
96% additional transition projects for restaurants located in
realities
95% Fill rate targeted areas to existing Dine Brands distributors with
94% On time delivery
Distribution Agreements and Transitions –
93% capacity to improve service.
92%
91% transitioning Members to alternate distribution centers
90% for economic, service, or strategic reasons
2014 2015 2016 2017 2018
Regional Distribution Committees – restructured
12 The decline in on time deliveries over the past year these committees to include one per distributor in order
reflects distributors’ inability to hire and retain drivers
8
and warehouse associates to levels required to guarantee to get direct Member involvement for issues directly
consistent service. impacting their restaurants
IHOP — 2018
12 Lemon Choice 200 ct
8
$292,918 Annual Savings to Market
$50.00
$40.00

??? Source $30.00 ??? Sweet
CSCS System Price
$20.00
Limon???
$10.00 USDA Price

$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

IHOP — 2018
Lettuce Green Leaf 24 ct
$177,877 Annual Savings to Market
$50.00

$40.00

??? Source $30.00 CSCS System Price
Church Brothers (CA)
Taylor Farms (CA)
$20.00
USDA Price
$10.00

$0.00
12/17/17 01/21/18 02/2?/18 04/01/18 05/0?/18 06/10/18 07/15/18 08/1?/18 09/2?/18 10/2?18 12/0?/18
Beginning of Week Date