Page 235 - Aida Hovsepian Onboarding

FREIGHT MANAGEMENT

2017 proved to be a year of change for the freight industry. PANCAKE CO-OP DISTRIBUTION OF
A new Washington administration, back-to-back devastating FREIGHT SAVINGS
hurricanes, and the implementation of a new regulation
contributed to rate increases and reduced the availability of
equipment to move freight. CSCS continued to focus on four
areas to manage increasing freight costs and achieved an
overall savings of $2.8M for the Pancake Co-op Members. 7%

3PL RFP (THIRD PARTY LOGISTICS) 14% ReD/ITI
The 3PL RFP is conducted annually and leverages selected
3PL providers to validate supplier rates against current market Shared Savings
conditions. Freight lanes that transitioned in 2017 produced 14% 65%
$405k in savings for Co-op Members. 3PL RFP

REVENUE SHARING (REBATES) Frt Bracket Retarget
CSCS works with distributors to develop programs that allow
freight revenue from DC managed lanes to be shared between
the distributor and Co-op Members. Funds generated from
revenue sharing reached $392k in 2017 and were returned to
Co-op Members in the form of a rebate.

REDISTRIBUTION (RE-D)
Redistribution creates savings by consolidating slow moving
less than truckload (LTL) shipments to a redistributor. In
2017 IHOP received 898k cases through redistribution which
generated $1.82M in annual savings. Overall, Pancake Co-
op Members received $2.03 savings per case through this
program.

RETARGET ANALYSIS
A retarget analysis is performed quarterly to increase the
purchase order size for distributors which ultimately reduces
freight costs. In 2017 the retarget analysis delivered a total of
$186k in savings.

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