Page 523 - Onboarding May 2017

Summary of Obsolete Inventory
Q4 2016 vs. Estimated Q1 2017
Q4-2016 Estimated Q1-2017 Variance & Mitigation
Potential Potential
System Potential Potential Max. System Potential Potential Max. Min.
Obsolete Company Franchise Company Obsolete Company Franchise Company Company
Category Event Product Description Exposure Liability Liability Exposure Actual Exposure Exposure Liability Liability Exposure Exposure Mitigation/Comments
Brand made decision to delete this item from the November menu (11/12/2016). Anticipated
Supplier Obsolete C5-2015 Banana Foster Sauce $ 119,531 $ 135,940 $ 122,292 exposure once discontinued is $105,284
Item was missed on forecast when we moved to pre battered onion tangles. Working with
Supplier Obsolete C4-2015 Flour $ 8,990 $ 14,179 $ 6,861 vendor and ITI to repurpose inventory. Inventory will not expire until Nov 2016 & Jan 2017.
Item sold under C5 (Salads) 2016 forecast. Culinary reviewing other plate presentation options.
DC Obsolete C5-2016 Vinaigrette Base $ 14,755 $ 17,587 $ 9,425 We would also need a shelf life extension as product will soon be expiring (120 shelf life)
Item sold under C5 (Salads) 2016 forecast. Decision needs to be made to write off or use this
DC Obsolete C5-2016 Honey, Sue Bee $ 4,452 $ 5,343 $ 3,352 item in other applications. Shelf Life is 1,095 days.
Feta & Grapefruit, Red, Items sold under C5 (Salads) 2016 forecast. PO's have already been issued to the DCs by
DC Obsolete C5-2016 Sections $ 10,284 $ 10,284 $ 10,784 Amy for these items.
Banana Foster Sauce
Supplier Obsolete C5-2015 (storage fees) $ 7,500 $ 7,500 $ 1,341 Q2 storage fees.
Total $ 165,512.00 $ - $ 190,833.00 $ 154,056.16
Shorty Shake sold significantly under forecast. Forecasted to sell 4.1, sold .8. Q3 initial
estimate reduced from 30k to 15k (vendor agreed we are not liable for remaining inventory at
DC Obsolete C2-2016 Salted Caramel $ 15,755 $ 15,755 Carry over to Q1 $ 15,755 $ 15,755 $ 10,475 their facilities).
Unique remaining RAW inventory exposure for Bacon Vinaigrette when we transitioned to BOH
Supplier Obsolete C2-2016 Imitation Bacon Bits $ 12,000 $ 12,000 Carry over to Q1 $ 12,000 $ 12,000 $ 12,000 Vinaigrette base
Inventory was purchased while we were waiting on count of stores actually needing. # of stores
Supplier Obsolete C4-2016 Oak Smoke $ 1,303 $ 2,000 Carry over to Q1 $ 1,303 $ 2,000 $ 1,500 using continues to decrease.
Estimated Cornbread croutons exposure (Max & Min) is for Q2 2017. Q4 estimate was 110k.
Picture add for C2 & C3 is supposed to lift sales .7 PRPD or 91 cs per week. If forecasted lift
occurs, exposure should be reduced to 44k. If there is no incremental lift, exposure will be 96k.
Supplier Obsolete C5-2016 Cornbread $ 110,000 $ 110,000 Carry over to Q2 $ 96,274 $ 96,274 $ 44,474 Robert to reach out to QA and explore shelf life extension options.
Total $ 7,500.00 $ - $ 7,500.00 $ 1,340.95 $ 125,332.00 $ - $ 126,029.00 $ 68,449.00
Requested final obsolete numbers from the DCs; will respond back with update as soon as I
Supplier Obsolete C8-2016 Rice Noodles TBD TBD TBD receive responses from all of the DCs
Min. Company Exposure ($1,458) at mainline DCs. Max. Company Exposure ($6,009)
represents product at Ed Don and Mainline DCs. CSCS working to mitigate Ed Don exposure.
After guidance was given to vendor for depletion, sales decreased 31% from 45 cs to 31 cs per
DC Obsolete C4 2015 Ruby Red Syrup $ 6,009 $ 6,009 $ 1,458 week.
Min. Company Exposure ($1,179) at mainline DCs. Max. Company Exposure ($6,246)
DC Obsolete C2-2016 Mason Jars $ 6,246 $ 6,246 $ 1,179 represents product at Ed Don and Mainline DCs. CSCS working to mitigate Ed Don exposure.
Total $ 12,255 $ - $ 12,255 $ 2,637
GRAND TOTAL