Page 569 - Onboarding May 2017

Freight Management-2017

Transportation costs are reduced by leveraging third-party logistics providers (3PL’s), distributor shared savings
programs, redistribution services (ReD), and retarget analysis. Each program requires a comprehensive
evaluation of freight cost where CSCS coordinates lane transitions that result in overall savings to Co-op
members.

 2017 Freight Strategy: Deliver $2.9 million in sourcing value to Applebee’s

 3PL RFP – $650k Apple
• Reduce freight cost by leveraging third party logistics partners
• Validate supplier rates against current market conditions
 Implementation July/August 2017

 Revenue Sharing – $1m Apple
• CSCS collaborates with distributors to maximize the number of backhauls and distributor
managed lanes to return savings to Co-op members in the form of a rebate

 Redistribution-$1.05k Apple
• Consolidate less than truckload (LTL) shipments to distributors and redirect to a Re-D

 Retarget Analysis -$200k Apple
• Maximize distributor purchase order size to reduce freight cost