Imperial Logistics — Transforming the Business Model -
25 slides from Imperial Logistics's investor presentation, 2012
Slide 1: Improving Sustainability and Competitiveness by Transforming the Business Model
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Slide 2: Woolworths with Imperial Logistics Refrigerated Services and Volition
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Slide 3: Woolworths is a leading and respected retail chain
Woolworths Pty (Ltd) is a leading and respected retail chain • Over 400 retail stores, including franchise stores • Range of quality clothing, food, homeware, beauty and financial services (in partnership with Absa Bank) • Operations in South Africa, Africa and the Middle East
Slide 4: The Problem
Slide 5: Unsustainable transportation, not cost-effective, limited collaboration
• Unsustainable / unreliable transportation solutions • Not cost-effective, limited collaboration between suppliers • Limited inbound / outbound integration • Limited visibility of operations and reporting capabilities
Slide 6: The Goals
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Slide 7: Woolworths wanted to achieve the following
Woolworths wanted to achieve the following: • improved service levels to stores • competitive advantage • supply chain sustainability
Slide 8: The Strategy
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Slide 9: Therefore they set the following strategy
Therefore they set the following strategy: • Vertically integrate the supply chain • Take ownership of primary transport (inbound from suppliers) • Improve tactical and operational planning and execution management
Slide 10: The Analysis
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Slide 11: 2008 quantification of logistics cost in COS
• In 2008 Woolworths, with assistance from Volition and IMPERIAL Logistics Refrigerated Services (ILRS), quantified the current logistics cost imbedded in COS • The result was a business case for Woolworths to also own the primary leg of the supply chain
Slide 12: Solution
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Slide 13: Logistics Integration Centre (LIC) established
During 2009 / 2010, the team modeled tactical scenarios to find ways to achieve the necessary efficiencies Integrating inbound / outbound distribution emerged as the most promising alternative It was agreed that a Logistics Integration Centre (LIC) should be established to: •House the advanced plann
Slide 14: Repository, scenario modelling, efficiency tracking, dashboards
Scenario Efficiency Ad-hoc Dashboards Modelling Tracking Analysis (KPIs, CO2 etc.) Values Operations 145.0 144.0 143.0 - 0.16 - - 1.75 Region Business NDC / DU Budget NDC/DU NDC / DU Sum of Volume Sum of 2011 Actual Sum of FY12 WW Sum of 2012 Actual Impact on Budget NDC Maxmead C&GM R 5.45 R 5.78 R
Slide 15: Dashboards
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Slide 16: Routing and scheduling tools for tactical planning
Routing and scheduling tools for tactical planning…. ….translated into executable plans
Slide 17: Woolworths, Imperial, Volition
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Slide 18: Supplier adoption and LIC development
• Supplier adoption activity has been increasing since 2009/2010 • Development on a Logistics Integration Centre started in late 2011 with: • Dashboard reports • Data repository (provides additional granularity and analysis capabilities) • Advanced planning and reporting capabilities (start of plann
Slide 19: Results
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Slide 20: Testimonials
• Testimonials: • Woolworths KZN DC Manager: “Fair Field have contacted me and [are] very impressed with the thermometer that Imperial is using for probing product. So much so they now are looking for the contact details of the manufacturer so they can purchase one for themselves.” • Key Supplier: “
Slide 21: Lessons learned
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Slide 22: Lessons: involve suppliers, change management, support
• Involve suppliers in the journey upfront • Don’t under-estimate the importance of change management • Support from Exco levels • Ownership to drive the process • Fair compensation / remuneration between supply chain partners to ensure win-win…drives correct behaviour • Support for- and understandi
Slide 23: Next steps
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Slide 24: Initiatives to support supplier adoption and supply chain improvement
All parties remain engaged on initiatives to support supplier adoption and broader supply chain improvement: •Further integration of transport •Tactical modeling of supplier adoption impact on primary, trunking and secondary •Establishment of planning office •Equipment centre optimisation •Master da
Slide 25: Thank you. Any Questions?
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