Page 233 - Board Member Onboardin August 2019

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 $138K in savings.
reduce freight costs. In 2018 the retarget analysis yielded a total of $138k 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.
IHOP Distributor Annual Service Performance
Number of Pounds IHOP Distributor Annual Service Performance
Savings - CSCS
Savings - CSCS
Product Category Number of Pounds 100% Contracts vs. Market
Product Category
100%
2018
2018
99%
Contracts vs. Market
99%
98%
Banana 4,198,016 98% $ 409,692
97%
4,198,016
Banana
$ 409,692
97%
96%
Fill rate
Lemon 2,126,953 96% $ 292,918 Fill rate
95%
2,126,953
Lemon
$ 292,918
95%
On time delivery
94%
On time delivery
93%
Lettuce Green Leaf 1,075,261 94% $ 177,877
Lettuce Green Leaf
93%
1,075,261
$ 177,877
92%
92%
91%
Onion Red 484,838 91% $ 37,187
$ 37,187
484,838
Onion Red
90%
90%
2014 2015 2016 2017 2018
Onion Yellow 1,931,199 2014 2015 2016 2017 2018
$ 23,656
Onion Yellow
1,931,199
$ 23,656
Total Savings $ 941,330
$ 941,330
Total Savings
Lemon crops faced very tight supply between July and
Lemon crops faced very tight supply between July and
IHOP — 2018
September due to extreme heat causing lemons to drop IHOP — 2018
September due to extreme heat causing lemons to be
Lemon Choice 200 ct
Lemon Choice 200 ct
from the trees resulting in reduced supply and higher $292,918 Annual Savings to Market
$292,918 Annual Savings to Market
dropping from the trees resulting in reduced supply and
$50.00
market prices. CSCS lemon contracts trigger-pricing $50.00
higher market prices. CSCS lemon contracts trigger
$40.00
provided protection against extreme market highs and $40.00
pricing provided protection against extreme market
secured supply of quality lemons during this tight supply $30.00 ??? Sweet
highs and secured supply of quality lemons during this
$30.00
??? Sweet
CSCS System Price
period. This resulted in savings of $292,918 annualized ??? Source ??? Source $20.00 CSCS System Price
tight supply period. This resulted in savings of $292,918
$20.00
Limon???
Limon???
USDA Price
for Pancake Co-op Members. USDA Price
annualized.
$10.00
$10.00
$0.00
CSCS contracts also reduce price volatility; an example $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
CSCS contracts also reduce the price volatility; an
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
Beginning of Week Date
is Green Leaf Lettuce. The chart at right shows pressure
example is Green Leaf Lettuce. The chart below shows
on supplies throughout the year with extremes during
pressure on supplies throughout the year with extremes
transition periods. The December spike is a result of
during transition periods. The December spike is a result
IHOP — 2018
tight supplies as the industry searched for Romaine IHOP — 2018
of tight supplies as the industry searched for Romaine
Lettuce Green Leaf 24 ct
substitutes. Lettuce Green Leaf 24 ct
substitutes.
$177,877 Annual Savings to Market
$177,877 Annual Savings to Market
$50.00
$50.00
2018 was a challenging year for Romaine. The FDA $40.00
2018 was a challenging year for Romaine. The FDA
$40.00
launched two advisories in 2018 and during that time
launched two advisories in 2018 and during that time
$30.00
CSCS System Price
CSCS and the Dine Brands cross functional team came ??? Source ??? Source $30.00 CSCS System Price
CSCS and the Dine Brands cross functional team came
Church Brothers (CA)
Church Brothers (CA)
Taylor Farms (CA)
together daily to maintain supply of replacement product $20.00 Taylor Farms (CA)
$20.00
together daily to maintain supply of replacement product
USDA Price
USDA Price
and manage communications to operators, distributors $10.00
and manage communications to operators, distributors
$10.00
and suppliers. Moving forward each carton of Romaine
and suppliers. Moving forward each carton of Romaine
$0.00
will have the growing region on the label. This is an $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
will have the growing region on the label. This is an
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
attempt to allow the FDA to isolate the growing region Beginning of Week Date
attempt to allow the FDA to isolate the growing region
when issuing advisories in the future.
when issuing advisories in the future.
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