Page 289 - Onboarding May 2017
P. 289

Distribution




               Distribution Optimization
               The distribution optimization project continued into 2015 with consolidation of all Applebee’s restaurants
               in New Mexico into one existing distribution center. The process continued with refinement of a previous
               transition by joining two Applebee’s franchise groups into a center that already serviced a relatively small
               number of Applebee’s restaurants. The move allows the distributor to purchase proprietary products more
               effectively for all of the Applebee’s serviced and provided the new restaurants with an optimal distribution. At
               the end of 2015, we were able to eliminate another distribution center that serviced only one Brand by moving
               230 Applebee’s restaurants into an existing center plus one of their sister centers.


               The agreements set to expire at the end of 2015 for the Northeast and Northwest were extended.

               To ensure that the program in place provides the best value to our Members, we are currently evaluating
               opportunities in the South Central region as the Distribution Agreement is set to expire. Recommendations will
               be presented to the Member-Operator Oversight Committee prior to making any final decisions.


               Distributor Service

               Distributor performance presented a number of challenges for Applebee’s restaurants and the Logistics team
               in 2015. Through implementation of weekly performance reporting by restaurant, we were able to monitor and
               report key performance metrics and target needed areas of resolution and service improvement.



               Distributor Business Reviews
               CSCS conducted business reviews with five of the eight distribution systems that service DineEquity
               restaurants. Two reviews were postponed until we could evaluate the results of transitions underway; one
               postponed due to Member schedule conflicts. Member participation proved to be a valuable enhancement to
               the process, and Member attendance at the meetings continues to grow. Some of the reviews in 2015 were
               also attended by Franchise Business Consultants, who added yet another dimension to the meetings.
























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