|
|
|
| Review of operations – Bidvest Asia Pacific continued |
|
|
| |
| Differentiation |
Recent investment has underlined our value proposition as the only national player capable of meeting the customers’ quality requirements in a consistent and professional manner. Our range is unmatched. We set the industry benchmark for quality service.
We can also optimise management resources. All systems, codes and procedures are uniform in all operations and branches; enabling high productivity and minimal disruption when internal promotion and transfer takes place.
Our IT investment allows us to better manage customer relationships and supply complementary product ranges with a single delivery. Through innovation in e-commerce, over 20% of our business is now transacted electronically. Customers and suppliers are finding it easier and more efficient to deal with Bidvest than other foodservice wholesalers. Sophisticated systems not only enable optimum control of our own inventory, but provide insights into the stock levels and demand patterns at our customers’ premises. |
| |
| Risks |
Business risks mirror those faced by our sister-company in Australia. In highly regulated developed markets, sensitivity to change in the policy environment is ever-present.
For example, new labour laws will soon drive up labour costs still further. Mandatory paid leave will increase while all employers will have to contribute to a superannuated pension fund for the benefit of their employees.
The impact of such legislation is felt across all industries. We mitigate the risk of new industry-specific regulations in areas like food hygiene and safety by applying world best practice. |
| |
| The future |
Recent acquisitions and continued infrastructure investment provide a platform for further growth. The general economic environment is expected to remain challenging. Even so, we will pursue continued growth in revenue and trading profit through increased market share and product range development.
Specifically, we intend to pursue incremental growth at Crean while looking for strong penetration of the fresh produce market. Our fresh division is still at the developmental stage, but we believe this market offers huge potential for a company with our resources and infrastructure.
Opportunities for range extension will also be pursued. Further acquisitions may be explored. |
| |
| ANGLISS |
Angliss is one of Asia’s leading foodservice wholesalers and distributors with annual sales of more than R2,0 billion and facilities in Singapore, Hong Kong and Guangzhou in the People’s Republic of China. It also operates distribution centres in Beijing, Shanghai and Shenzen.
Angliss manages the supply chain of high-volume, temperature-controlled foods, including frozen and chilled meat and poultry, frozen seafood and vegetables and dairy and pastry products. It is one of Singapore’s top two importers of frozen and chilled protein and the number one service provider to the Hong Kong foodservice industry.
Angliss has a qualitative competitive advantage in its core markets following sustained investment in world-class cold storage facilities. It services customers with its own fleet of vehicles and offers tailored solutions to more than 5 000 customers in the foodservice, retail wholesale, airline kitchen, catering, hospitality and ships chandler sectors.
It makes use of a sourcing network of 650 suppliers in more than 30 countries. |
|
|
|
| |
One of the initial points of focus for local management will be more active integration of the Singapore and Hong Kong businesses to promote greater purchasing synergies. Possibilities for range extension are also being investigated with the aim of leveraging the strength of Angliss’s blue-chip customer-base by supplying a broader spectrum of their needs.
The Angliss businesses have performed above our expectations, and we expect this to continue. |
|
|
