Under the federated Group operating model, each division’s supply chain had their own infrastructure, processes and IT systems resulting in high duplication of costs with limited collaboration. In addition to this, the Group historically held high levels of aged and discontinued stock, which affected stock replenishment efficiencies. This resulted in:
- High levels of aged and discontinued stock impacting stock replenishment efficiencies
- Variances in demand forecast accuracy resulting in poor on-time in-full (OTIF), high stock holding and poor availability
- High duplication of costs and facilities across divisions
- No minimum Group benchmark to leverage scale due to maturity differences between divisional supply chains
- Limited opportunity to lower costs due to varied product mix and scale
- Low distribution centre (DC) network penetration in Masscash and Masswarehouse.
Our opportunity lies in driving an integrated end-to-end supply chain enabling cost effective on-shelf availability, supporting sales growth while reducing operating cost and total stock holding and improving supplier income.
Our supply chain journey commenced in 2017 and we will continue our efforts to drive an integrated end-to-end supply chain. This will enable cost-effective on-shelf availability, support sales growth, reduce operating costs and total stock holding and improve supplier income.
We will achieve this by:
- Establishing an integrated, augmented demand forecasting and supply planning capability
- Building an integrated IT platform with master data
- Creating a diversified channel strategy that will enable Retail and Wholesale product flow.
An integrated end-to-end supply chain will unlock the following value:
- One integrated supply chain leveraging skills, systems and physical assets (trucks and sheds)
- Improved demand planning and forecast accuracy
- Capability and capacity in our DC network
- Implementation of an integrated suite of systems providing a single view of stock in real time
- Evaluation of the Africa supply chain for consolidation and efficiencies.