Twinsaver Group

Before 2 0 1 0

INEFFICIENCY COMPLEX NEED TO FIND SOLUTIONS CARBON FOOTPRINT POOR TIME MANAGEMENT NO COLLABORATION

Objectives

Twinsaver reviewed their supply chain in 2009 and established that it was

extremely complex with multiple opportunities to improve efficiencies.

Unable to find a solution internally Twinsaver put out an RFP which Imperial was successful in obtaining.

Imperial, along with Twinsaver, redesigned the supply chain resulting in the following

National footprint

for Twinsaver

Simplified supply chain Improved in on time

service levels Reduced stock holding

Consistent and reliable

service levels

A reduction in vendors. Imperial

now being the single service

provider

Back to back loading of all

dedicated primary vehicles

Simplified accounting with

a single invoice from each of

the 4 service providers

Simplified reporting process

with the LLP being the single

point of contact

Positive impact on

the bottom line

A service provider that allows Twinsaver to adjust for

supply chain flexes with limited cost implications

After T O D A T E

EFFICIENCY S IMPLICATION TRAINING CARBON FOOTPRINT TECHNOLOGY T IME MANAGEMENT COLLABORATION

The Solution

Establishment of Lead Logistics Provider (LLP)

I N B O U N D

L O G I S T I C S ( D E S T U F F I N G O F

I M P O R T C O N T A I N E R S )

S E R V I C E A G R E E M E N T

L E A D L O G I S T I C S P R O V I D E R

P R I M A R Y T R A N S P O R T ( I N C L . C R O S S - B O R D E R )

W A R E H O U S I N G ( P R I M A R Y C R O S S - D O C K I N G )

S E C O N D A R Y

T R A N S P O R T

I M P L E M E N T A T I O N

B A C K - T O - B A C K S E R V I C E L E V E L A G R E E M E N T

840

containers

per annum

2719

loads

195 200

pallets

per annum

60 000

pallet

positions

11 500 000

packages delivered

per annum

59 965 stops per annum

Inbound

Before Multiple Service Providers and Facilities

S O L U T I O N

Consolidation of all imported

raw materials and finished

goods

Introduce bonded

carrier

Appoint single clearing

and forwarding

company

Establish a bonded

facility within the

consolidated facility

After Single Service Provider and Facility

Inbound

R E S U L T S A C H I E V E D T O D A T E

Single

facility

Reduction in

handling

and haulage

Need for container

movement to the Reef has

been eliminated

Back to back

loading of vehicles

between KZN and Gauteng

Warehousing

Before Multiple Warehouses

Consolidation of 3 KZN

warehouses into a

single facility

Bonded and non-

bonded product to be

warehoused in KZN

Consolidate 3 Gauteng

facilities into 2

After

Multiple Warehouses

Consolidated Warehouse Consolidated Warehouse

S O L U T I O N

Warehousing

R E S U L T S A C H I E V E D T O D A T E

KZN Warehousing,

KZN, has been

optimised with

all products

stored in a

single

principal site

rather than

various multi

principal sites.

Gauteng Warehousing in

Gauteng has

also been

optimised with

all products

stored in two

facilities

servicing the

Northern

Gauteng region,

Mpumalanga &

Free State.

Free

State

Warehousing in

the Free State

has moved

into a multi

principal site

servicing the

greater

Bloemfontein

and Northern

Cape.

reduction The consolidation and

relocation of the KZN

warehouse resulted in a

reduction in

travelling time

and distance for primary, secondary

distribution resulting in

savings for Twinsaver.

Primary Distribution

Before Multiple service providers | No integrated planning

Improved integration

between imported raw

material and finished

goods

Integrated planning

Leverage LSP transport

management system

After Single Service Provider | Integrated Planning

S O L U T I O N

Primary Distribution

R E S U L T S A C H I E V E D T O D A T E

23%

reduction

in the average

turnaround

time between

2013 and 2015

20%

reduction in average Km

per trip

between

2012 and 2015

12%

reduction in carbon

emissions

between

2012 and 2015

Before Multiple service providers | No integrated planning

Consolidate inbound

and secondary

distribution in KZN

Integrated planning of

secondary transport and

supply and destination

site activity

Leverage LSP transport

management system

After Single Service Provider | Integrated Planning

S O L U T I O N

Secondary Distribution

R E S U L T S A C H I E V E D T O D A T E

36%

reduction

in the average

vehicles

utilised

daily between

2011 and 2015

23%

reduction in average Km

travelled

per day

between

2011 and 2015

26%

reduction in carbon

emissions

between

2012 and 2015

Secondary Distribution

Twinsaver

R E S U L T S A C H I E V E D T O D A T E B E N E F I T S

Improved control and reduced risk with a

single supplier providing all services for

Twinsaver.

Simplified accounting with a

single invoice being presented monthly from

the 5 service providers.

Simplified supply planning for Twinsaver

with the consolidation of multiple sites in Gauteng

and KZN

Positive impact on the

overall Supply Chain cost for Twinsaver

A simplified reporting

process has been achieved

with a single point of contact

reporting to Twinsaver for all

Imperial companies involved in

the supply chain.

Using the Imperial Group

allows for Twinsaver to

adjust for supply

chain flexes with

limited cost implications

Consistent

improved

service levels

have resulted in a

reduction in lost sales

8.55%

increase

in the average

volume between

2012 and 2015

2.8%

decrease

in the average

total cost

after inflation

between

2012 and 2015

Societal Impacts

Economic

longevity

Sustainability

Skills

development

and training

Work life

balance

Health and

Safety

Learnings

QDM and a focus on

continuous

improvement has ensured that the Twinsaver

supply chain has the ability to

continuously evolve and adapt

Through training and

effective internal

communication

human resource

sentiment remains positive

Clear, concise and structured

formalised

communication between business partners

is key to maintaining

healthy relationships

Service excellence

and integrity

within the relationship has enabled it

to move from buyer/seller to a

true partnership.

Technology,

in all facets of the supply chain,

has delivered

maximum control and

results

The success of a

LLP model is depended on strong open

relationships through a

single point of

contact

What was unique?

The consolidation of the service offering of 5

companies within the Imperial Group, into a single

service provider to the Twinsaver Group, through the

establishment of the LLP. A unique solution for Twinsaver

in that it dramatically simplified their supply chain and

the management thereof.

Twinsaver’s partnership

with Imperial is

extensive and

encompasses the

complete supply chain

The ongoing process of quality driven management and commitment to continuous improvement has been key to the

success of the partnership. To date, a total number of seven continuous improvement projects, funded by

Imperial and Twinsaver, have delivered very tangible benefits for Twinsaver.

Twinsaver

Distribution

Centre

Business Case

Pick N Pay

Twinsaver

Customer

Profitability

Twinsaver

Procurement

Commodity

Strategy

Implementation

Twinsaver

Procurement

Spend Analysis

Twinsaver

Network

Optimisation +

Cost-to-Serve

Twinsaver

Procurement

Assessment

Twinsaver

Gauteng

Distribution

Network

Review

The Way Forward

Success with this project has prompted

Imperial to investigate the

feasibility of introducing this

model into additional operations

Imperial /

Twinsaver will

be focussing

on

brand

development

Safety

focus

within the

supply

chain

Damage

reduction

initiatives

Vehicle design

and development

to accommodate

the changing

needs within the

supply chain

As a result of a

change in

product lines and the knock on effect on

the Twinsaver supply chain

Imperial will

redesign of the

Twinsaver

Group supply

chain

redesign of the

primary and

secondary fleets

redesign of

warehousing

configuration and

requirements

T H A N K Y O U

Questions?