Mr Price Group Limited · JSE:MRP
Mr Price — Investor Day (September 2024)
12 slides from Mr Price's investor day presentation, September 2024
Slide 1: Logistics strategy
By Werner Pelser Logistics strategy Part 1
Slide 2: Logistics strategy
Logistics strategy OUR OBJECTIVE: SUPPLY CHAIN ENABLEMENT STRATEGY To create & manage lean, agile & sustainable supply chains, • Internal and • Technology led enabling growth and supporting external network • End to end our value model orchestration integrated value chain • Actionable supply Triangu
Slide 3: Global supply chain disruptions Red Sea
Global supply chain disruptions Red Sea • Ongoing tensions have disrupted global shipping routes • Transit times have increased ~30% due to rerouting of ships around Africa’s Cape of Good Hope • Rerouting has caused a 9% reduction in effective global container shipping capacity • Increased costs and
Slide 4: Global supply chain disruptions Our response
Global supply chain disruptions Our response MR PRICE GROUP CONTRACTUAL RATES COVERED UNTIL END DECEMBER 2024 Shangai Container Freight Index Rate - Africa Route • Group’s contractual rates are fixed, with possibility to lower if market reduces significantly • New contract negotiations scheduled for
Slide 5: Global supply chain disruptions Our response continued
Global supply chain disruptions Our response CONTINUED • Diversifying supply chains - Wider multiple carrier strategy that manages product over differentiated channels from origin to South Africa • Building strong partnerships - Trusted supply chain partners can help plan for alternative transportat
Slide 6: South Africa Transnet Port efficiency
South Africa Transnet Port efficiency • Lead-times impacted by both Transnet’s poor performance and Red Sea rerouting, resulting in extended transit times • Marginal improvement in Transnet operations, however long-term investments likely to come to fruition in 2025 Mitigation plans • Additional tra
Slide 7: Our network
Our network • Supply chain is managed from a central distribution centre via a hub and spoke regional network • Majority of the inbound volume into our network originates in the greater Durban area, with all imports entering via ocean freight through the Durban port • Inputs from BLNS countries are
Slide 8: Our network Inbound flow
Our network Inbound flow INBOUND SOURCE LOCATIONS From port to DC • Total imported containers = 13 000 (TEU) Pakistan China Turkiye India Bangladesh Indonesia South Africa 184
Slide 9: Our network Store network delivery
Our network Store network delivery REGIONAL NETWORK From DC to hubs • Outbound flow is managed via a hub and spoke network of partner depots via a single courier using a multi-principle method • The group has 12 depots around South Africa and 1 in Namibia • Average transit time from the group’s DC t
Slide 10: Our scale & efficiencies
Our scale & efficiencies Group distribution network • Our network in comparison to our retail peers is the most efficient in terms of value throughput per m2, and units processed per m2 - This is linked to our strategic intent of being value driven - Our scale facilitates strategic partnerships Dive
Slide 11: Future opportunities Triangulated network
Future opportunities Triangulated network THE GROUP’S DISTRIBUTION CENTRE AND FULFILLMENT NETWORK FOOTPRINT Completely Triangulated Transport Network Gauteng Secondary distribution centre facility LI M P O P O Primary e-Commerce fulfillment GP M PU M A L A N G A N O RTH W E S T FR E E S TATE K WA ZU
Slide 12: Future opportunities Integrating new businesses
Future opportunities Integrating new businesses INTEGRATION IN A MANNER THAT ENSURES VALUE ADD TO THE GROUP & NEW DIVISIONS PROGRESS • Power Fashion’s operational Logistics operational consolidation timeline transition to Warehouse Management System completed, currently enabling cross DC functionali