Page 15 - Apple Supply Chain Co-op Inc. 2016 Annual Report.

Brand Programs

Brand Program Management

The Brand Program Management (BPM) team is responsible for working with the Brand’s cross-functional team to support
new product development, testing, promotions, SKU transitions, and deletions. This collaboration begins with the new product
development process and ends with the implementation of promotions or menu changes. During new product development,
our Brand Programs team works with the Applebee’s Marketing and Culinary groups to identify and leverage the appropriate
suppliers in the item development process with the goal of providing transparency of cost drivers, supply risks, and alternatives
to help them make the most informed decisions going into test.

Once in test, the team is responsible for communicating expected demand to participating vendors and distributors, comparing
sales to expected demand, and reacting appropriately with either allocations or expediting to maintain continuity of supply for
items that are doing better than expected. At the conclusion of each test, the team manages the invoicing process to make
sure vendors and distributors are paid appropriately and timely. Once the tested product is launched to the system, national
program responsibility mirrors that of testing on a much larger scale.

For every menu or promotional event supported, a detailed scorecard is completed that measures our performance and
identifies areas for improvement. These scorecards are reviewed with the Apple Co-op Board of Directors and key personnel at
Applebee's. The key attributes measured are:
❱ Timely Forecast – Forecast delivered to CSCS complete and with appropriate lead time

❱ Timely Authorization of Inventory Purchase (AIP) – All appropriate signatures
❱ Forecast Integrity – Absolute value variance of weighted average sales versus forecast
❱ Product Availability – Products available for start-up and throughout promotional period
❱ Obsolescence / Cost – Dollar impact to Members and Brand

Apple Program CSCS Score
C4 – All in Burgers 2.0 E
C5 – Taste the Change E
C1 – Made a Little Better For You E
C2 – Fan Favorites U E = Exceeds / M = Meets / U = Underperforming
C4 – Hand Cut Wood Fired E

C5 – Wood Fired Grilled Salads E
C6 – HCWF Grill E
C7 – $9.99 Steak E

In 2016, CSCS initiated a plan to restructure the BPM team to enhance productivity by specializing work flow, consolidating
the work team in Kansas City, and creating Brand specific liaison roles located in the Glendale office. Consolidation of the work
team in Kansas City enables seamless coordination with the Procurement, Logistics, and Data Analytics departments in real
time, allowing for more efficiency and consistency. The Brand specific liaisons work directly with the cross-functional teams in
Glendale to streamline the communication between each Brand and our work teams in Kansas City. They are the eyes, ears,
and mouthpieces of the CSCS team to DineEquity. The BPM team continues to make improvements to technology, processes,
and training investment to ensure product availability for our Members. This commitment to core tenants of our mission
statement is reflected in a cumulative “Exceeds Expectations” rating as tracked by our promotion scorecard. We will continue to
evaluate our internal controls and processes to measure and articulate risk, mitigate outages, and obsolete inventory.
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