AVI Limited Class Y · JSE:AVI
AVI Limited Class Y — Corporate Update (May 2002)
25 slides from AVI Limited Class Y's corporate update, May 23, 2002
Slide 1: AVI Gauteng Site Visit, Distribution Division
AVI GAUTENG SITE VISIT 23 – 24 May 2002 DISTRIBUTION DIVISION 1
Slide 2: Distribution: Agenda
DISTRIBUTION : Agenda • The business – a brief overview • Contract Distribution • Roodepoort Site Overview • Site Tour and questions 2
Slide 3: Distribution: Vision & Mission
DISTRIBUTION : Vision & Mission Vision To build a profitable, focused logistics business in southern Africa in the food and food-related markets Mission To develop position within the southern African food industry supply chain community as the provider of value adding third party logistics services
Slide 4: Distribution: Strategy
DISTRIBUTION : Strategy Technology to be used as the platform to drive differentiation and growth Profitable volume growth Development of our people Drive efficiencies Establish the new business and identity 4
Slide 5: Distribution: Key principals
DISTRIBUTION : Key principals Rainbow I&J McCain Today’s 5
Slide 6: Distribution: Channel coverage
DISTRIBUTION : Channel coverage (traditional / principal business) Food Service 100% Wholesale Retail 75% 50% 25% 0% Volume Value 6
Slide 7: Distribution: National infrastructure
DISTRIBUTION : National infrastructure Distribution Division Florida Road, Durban Traditional Business Multi- temperature Contract Distribution Roodepoort Hub Nelspruit Satellite Clayville Depot Pietersburg Satellite Thekwini Hub Newcastle Satellite Pietermaritzburg Depot Empangeni Satellite Peninsu
Slide 8: National infrastructure – traditional / principal
DISTRIBUTION : National infrastructure – traditional / principal 16 active depots incorporating various stocking models Hub & spoke with strategic stock holding policies per geographic area and customer base Cross docking / stockless depots Calling facilities Pallets positions 21,500 frozen 1,500 ch
Slide 9: Contract Distribution: Overview
Contract Distribution : Overview 9
Slide 10: The opportunity
CONTRACT DISTRIBUTION : A new business model The opportunity Customers wish to take control of their supply chains Not a core competence in most instances Provide a model to allow customers this control without them having to invest in their own infrastructure Protect and develop our share of the lo
Slide 11: Contract Distribution: The new business model
CONTRACT DISTRIBUTION : The new business model Dedicated Resource Traditional/ Traditional/ Contract Contract Principal Principal Distribution Distribution Retail/ Food Foodservice Retail/ Wholesale service Manufacturer Common Assets 11
Slide 12: Contract Distribution: The concept
CONTRACT DISTRIBUTION : The concept Centralised distribution managed on behalf of selected customers Customer manages all supplier negotiation Facilitate admin and logistics for pre-agreed fee per unit handled on pre-agreed service criteria 12
Slide 13: Business model
CONTRACT DISTRIBUTION : Business model Suppliers Purchase Contract Orders Customer Deliver MTCD ops Contract/ Deliveries Payment of consolidated account Payment Deliveries Orders Payment Customer Outlets 13
Slide 14: Contract Distribution: Market potential
CONTRACT DISTRIBUTION : Market potential Food service market turnover R15bn (180 million cases) Logistics revenue at 9.6% of turnover R1,44bn Target for phase 1 (food service) 32 million cases (18%) Four to five key customers Grow current logistics business from R350m distribution revenue to >R800m
Slide 15: Customer value proposition
CONTRACT DISTRIBUTION : Customer value proposition Control of supply chain without ownership of assets Non core competence outsourced to professionals Shared infrastructure efficiencies Consistency of product offering Single solution across all temperature zones Ability to comply with due diligence
Slide 16: AVI value proposition
CONTRACT DISTRIBUTION : AVI value proposition Provides real growth opportunity in otherwise “flat” market Redefines the market dynamics for the existing business Rate reflects the value/cost of work done versus a function of the price/value of products being handled Offers opportunities to improve t
Slide 17: Contract Distribution: Status update
CONTRACT DISTRIBUTION : Status update National infrastructure – phase 1 5,000 pallet positions (ambient, chilled and frozen) 21 multi-temp vehicles (payload of 250 tons) Customer 1 on board Successful pilot since October 2001 17
Slide 18: Distribution Network Cape Town
Distribution Network Cape Town 18
Slide 19: Roll out plan
CONTRACT DISTRIBUTION : Roll out plan Need for a balanced customer base Food service will be the initial focus Target four to five customers in next 36 months 19
Slide 20: Roodepoort Operations: Site Overview
Roodepoort Operations : Site Overview 20
Slide 21: Roodepoort Operations: Overview
Roodepoort Operations: Overview Hub and satellite system – services Gauteng directly, Mpumalanga and Limpopo via satellite depots at Nelspruit and Polokwane respectively, and North West province serviced by Klerksdorp depot Central call centre for the hub staffed by 27 call centre agents Sales and m
Slide 22: Roodepoort Warehouse: Basic statistics
Roodepoort Warehouse : Basic statistics Total pallet positions Pick Faces = 2,400 Back up = 1,880 Average holding capacity of 250,000 cases 1,300 unique SKU’s Three x 8 hour shifts Average loading rate of 2,200 cases per hour Temperature -20 degrees Celsius 22
Slide 23: Basic Warehouse Flow
Basic Warehouse Flow 23
Slide 24: Pallet Invertor
Sle OTP SF Se Ss OO S38 ZANT) | invertor OL _ LOADING <r RECEIVING ——
Slide 25: Tour Instructions
Tour Instructions 25