Page 151 - New Employee Onboarding

Freight Management-2016

Transportation costs are reduced by leveraging third-party logistics providers (3PL’s), distributor shared savings
programs, redistribution services (ReD), and retarget analysis. Each program requires a comprehensive
evaluation of freight cost where CSCS coordinates lane transitions that result in overall savings to Co-op
members.

 2016 Freight Strategy: Deliver $4 million in sourcing value ($2.35 Apple/$1.65 IHOP)

 3PL RFP – $1m ($600k Apple/$400k IHOP)
• Reduce freight cost by leveraging third party logistics partners
• Validate supplier rates against current market conditions

 Revenue Sharing – $1m ($700k Apple/$300k IHOP)
• Collaborate with distributors to maximize the number of backhauls and distributor managed
lanes to return savings to Co-op members in the form of a rebate

 Redistribution-$1.6m ($850k Apple/$750k IHOP)
• Consolidate less than truckload (LTL) shipments to distributors and redirect to a Re-D

 Retarget Analysis -$400k ($200k Apple/$200k IHOP)
• Maximize distributor purchase order size to reduce freight cost