Compass Group Plc · LSE:CPG
Compass — Investor Presentation (September 2024)
23 slides from Compass's investor presentation, September 2024
Slide 1: Procurement Deep Dive September 2024
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Slide 2: Speakers
Speakers 2 Dennis Karl Clare Hogan Atkins Joyner CEO of Foodbuy, CEO of Foodbuy, Chief Procurement Officer, Compass Group North America Compass Group UK and Ireland Compass Group Europe & Middle East Chef Chris Agatha Ivens-Brown Donnelly Chief Culinary Officer, Eurest, Group Head of Investor Relati
Slide 3: Procurement is critical to Compass' success
Procurement is critical to Compass’ success 3 - Contributes to organic growth through new business wins and retention - Source high quality products at competitive prices, bespoke to client needs - Industry leading food service GPO (Foodbuy) - Supply chain flexibility and resilience - Talented procu
Slide 4: What is Foodbuy?
What is Foodbuy? 4 - Our GPO & the blueprint model for Procurement - 25 years of investment & data in US - Strategic sourcing of food and beverage for Compass & third party members - Leverages collective scale to buy the best quality products at competitive prices - Drives compliance with preferred
Slide 5: We operate Foodbuy in four of our core markets
We operate Foodbuy in four of our core markets… 5 >$38bn 2016 2000 2006 2018 Combined annual purchasing spend …which account for nearly 80% of Group revenue Internal
Slide 6: Foodbuy US
FOODBUY US
Slide 7: Foodbuy US has clear competitive advantages
Foodbuy US has clear competitive advantages… 7 SCALE COMPLIANCE SECTORISED VALUE ADD CULINARY APPROACH SERVICES ALIGNMENT >$32bn annual spend For Compass >90% of - largest food service purchasing is with Mirrors Compass’ Drive further Close cross functional GPO in the US preferred suppliers structur
Slide 8: Foodbuy is the largest food service GPO in our industry
Foodbuy is the largest food service GPO in our industry… 8 Annual food & beverage spend Healthcare & Hospitality & Restaurants & education leisure food service • Healthcare GPO’s • Hotel chains / groups • Restaurant GPOs 40% • Healthcare systems • Resorts & clubs • Small restaurant chains Compass is
Slide 9: Structured around three core functions
…and is structured around three core functions 9 • Smooth supply chain logistics • Tender key categories • Delivered on time & in full • Find new suppliers • Distributor agnostic • Track macro and market trends Distribution Sourcing Category • Nurture new suppliers Development • Work closely with cu
Slide 10: Virtuous circle of growth benefiting all stakeholders
Virtuous circle of growth… 10 …which benefits all stakeholders Internal
Slide 11: Foodbuy's flexibility ensures supply chain resilience
Foodbuy’s flexibility ensures supply chain resilience 11 Category Breadth of suppliers Multiple logistics diversification From local growers to national providers enabled by scale distributors Distributor agnostic Strong supplier Optimises Minimises relationships availability disruption
Slide 12: Compliance is critical to the success of a GPO
Compliance is critical to the success of a GPO… 12 - Proportion of total spend on approved products - Maximise volume with strategic suppliers over the long-term - Enables us to secure best commercial value >90% - Systematic processes enforce purchasing discipline Compass’ purchasing with preferred
Slide 13: Foodbuy mirrors Compass' sectorised approach to the market
Foodbuy mirrors Compass’ sectorised approach to the market… 13 …enabling it to provide sector specific insight and expertise Internal
Slide 14: Value add services to members
…as well as ‘value add services’ to members 14 DATA & OPTIMISING CULINARY DISTRIBUTION ESG TECH FOOD COSTS EXPERTISE EFFICIENCIES Carbon reduction Collaboration with initiatives to help Actionable insights Fully costed menus Optimising supply chefs to influence members deliver by leveraging long bas
Slide 15: Replicating Foodbuy across the Group
REPLICATING FOODBUY ACROSS THE GROUP
Slide 16: Our procurement maturity roadmap
Our procurement maturity roadmap 1 9 START UP EMERGING ADVANCED Upweight procurement Strategic function & growth Full GPO model capability enabler Maximise scale advantages from Compass & third party volume Mainly smaller markets across the Group NORDICS CONTINUOUS IMPROVEMENT Internal
Slide 17: Can the Foodbuy model work in Europe?
Can the Foodbuy model work in Europe? 17 - Procurement managed within each country – local suppliers and different culinary tastes - Growing scale within each country is key to unlocking value - Compass’ growth creates more purchasing opportunity - Focus on moving countries along their maturity road
Slide 18: Looking ahead
LOOKING AHEAD
Slide 19: Clear growth priorities for all stages of procurement maturity
Clear growth priorities for all stages of procurement maturity… 19 1 Develop and nurture talent 2 Invest in data and systems 3 Best practice sharing 4 Continue to improve collaboration …including Foodbuy Internal
Slide 20: Supplementary
SUPPLEMENTARY
Slide 21: Glossary of Terms
Glossary of Terms 21 UK Terminology GPO – Group Purchasing Organisation APL – Approved Product List AVL – Approved Vendor List SKU – Stockable unit / Stock keeping unit US Terminology MOG – Managed Order Guide VA – Volume Allowance, also known as rebates Internal
Slide 22: Our Deep Dive Series
OUR DEEP DIVE SERIES
Slide 23: Learn more about our previous Deep Dives
Learn more about our previous Deep Dives… 23 Sustainability Digital September 2023 September 2022 Covering the Group's sustainability strategy, Covering the Group's digital strategy, technology Climate Net Zero progress and innovations capability and how these are embedded in our towards a more sust
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