Page 14 - Apple Supply Chain Co-op Inc. 2016 Annual Report.

Logistics

Distribution Management
produce distribution mid central
Distributor Service optimization 801 Restaurants
17 Distributors
Distributor performance challenges shifted for
Applebee's restaurants and the Logistics team in 2016. Mar 19
Through CSCS-monitored performance plans, some
distributors were able to return service levels back to,
and in some cases, exceed contract standards. One east coast south east
large distributor continues to struggle with satisfactory 741 Restaurants 620 Restaurants
performance to Applebee's due to the current 12 Distributors 18 Distributors
warehouse and driver shortages experienced nationwide
and was placed on performance probation. CSCS has Mar 17 Nov 18
conducted several meetings in the region and continues
to monitor weekly performance reporting by restaurant south central west coast
to help this and other distributors target needed areas of 474 Restaurants 456 Restaurants
service improvement. 16 Distributors 10 Distributors

Jul 18 Nov 17
Distributor Business Reviews
CSCS conducted business reviews with five of the pacific
six distribution companies that service Applebee's north east northwest
restaurants. The remaining business review was 458 Restaurants 124 Restaurants
rescheduled to early 2017. Member participation in the 13 Distributors 5 Distributors
meetings continues to grow, and we constantly update Jul 17
and revise the agenda to reflect current conditions that Mar 18
impact Applebee's restaurants.

apple co-op freight savings pancake co-op freight savings
target vs. actual target vs. actual

100
100 90 90
90 90 91% 80 80 80% 86%
85%
80 80 $2.7mm
70 70
70 70
60 60
60 60
percent 50 50 58% percent 50 50 53%

40 40
40 40
30 30 30 30

20 20 20 20
10 10 10 10
0 0 0 0
2014 2015 2016 2014 2015 2016

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