Supplier Connections - Navigating KeHE | Page 58

KEHE INVESTS IN NEW AND SMALL SUPPLIERS THROUGH AAP

Administrative Allowance Program( AAP)

KeHE is offering an opt-in 2 % flat rate off invoice allowance and exempting participating Suppliers from fees associated with gaining distribution, including:
- New item Introductory Allowance- Extra performance( EP) processing fees- Manufacturer chargeback( MCB) processing fees- New item set up fees- Lumping fees
This 2 % flat rate is less than the actual experience of the waived fees for emerging suppliers. Consolidating the fees into a simplified allowance will make it easier to forecast spend at the time of launch.
* Eligibility for new suppliers, defined as working with KeHE for less than 1 year based on first receipt date, AND small suppliers, defined as less than $ 500,000 in KeHE Supplier cost received.