Operational reviews – Bidvest Food Ingredients

Bidvest Foodservice

Bidvest Food SA

  John Morris: Managing director
     
Manufacturer and distributor of meat, poultry, dairy and general food ingredients and equipment.  
John Morris
John Morris – Managing director

Highlights

Blue arrow Turnover growth above inflation
Blue arrow Good profit growth achieved
Blue arrow Significant growth achieved in new product categories and various sales channels
Blue arrow Invested in dry manufacturing plant to increase capacity and improve efficiencies.

Innovation and new investment

Blue arrow The Innovation Technology and Design Centre provides a demonstration platform for customers creating additional sales opportunities
Blue arrow Expansion of dry ingredients manufacturing plant increased capacity.

Disappointments and challenges

Blue arrow Additional labour costs incurred due to the delayed expansion and relating change management challenges.

Risks and responses

Blue arrow Legislation (possibly to reduce poultry injection rates and cut sodium levels in foodstuffs) will have an impact on the business – we are exploring alternative markets and revising product formulations
Blue arrow Food safety – Crown continuously upgrades food safety measures, quality assurance and supplier quality audits.

2015 targets, objectives and factors affecting future results

Blue arrow Continue to grow revenue and profits on the back of significant investment
Blue arrow Increase focus on stock management and simplification of the value and supply chains
Blue arrow Expand alternative sources of supply
Blue arrow Increase the focus on product categories and customer segments where Crown has a low market share
Blue arrow Improve efficiencies, forecasting and planning in the dry manufacturing plant.

Material issues and performance

MATERIAL ISSUE   WHY IT IS IMPORTANT AND STRATEGIC OBJECTIVES KPIs AND TARGETS PERFORMANCE AGAINST TARGETS AND ACTIONS GOING FORWARD
Performance

Maintain consistent financial performance

  Why:

blackarrow Global economic challenges
blackarrow Volatile foreign exchange rates create market instability
blackarrow Lower consumer confidence

Objective:

blackarrow To consistently deliver profit growth
blackarrow Cost containment
blackarrow Trading profit
blackarrow Real profit growth
Performance:

blackarrow Good profit growth achieved

Actions:

blackarrow Significant growth achieved in new product categories
blackarrow Invested in dry manufacturing plant to increase capacity and improve efficiency
People

Exceed corporate citizenship expectations

  Why:

blackarrow It is important to demonstrate our commitment as a good corporate citizen by consistently exceeding local and international governance, compliance and broader sustainability expectations
KPIs:

blackarrow JSE SRI performance standards
blackarrow CDP performance standards
blackarrow Governance standards (King III)
Actions:

blackarrow Commitment to transforming the workplace in terms of employment equity profile with good progress to date
Maintain rigorous safety standards   Why:

blackarrow It is our obligation to ensure the safety of our employees

Objective:

blackarrow Ensure all businesses demonstrate exceptional levels of safety performance
KPIs:
blackarrow Injury rate
blackarrow Lost-day rate
blackarrow Safety of employees
Performance:

blackarrow The injury rate decreased considerably from 2,6 to 0,8 per 200 000 hours worked in 2014
blackarrow The lost-day rate (per 200 000 hours worked) due to injuries increased from 5 to 12 in 2014
Promote employee health and satisfaction

Enhance talent attraction and retention

 

  Why:

blackarrow People have a right to be healthy and happy. As employers we assist our staff in this regard, which contributes to a more productive and positive work experience
blackarrow To improve talent attraction and retention

Objective:

blackarrow To use innovative approaches to improving the health and wellbeing of all employees and create a positive work environment that enhances talent attraction and retention
KPIs:

blackarrow Resignation rates
blackarrow Absentee rates
blackarrow The resignation rate increased from 4,2% to 4,3% in 2014
blackarrow Absentee rates increased from 1,3% to 2,1% in 2014

 

Promote skills development   Why:

blackarrow This is an important national issue that is felt acutely at business level
  Performance:

blackarrow Training academy held aimed at potential managers for the future
CSI   Why:

blackarrow This is important at national and regional level and business can play a vital role
KPIs:

blackarrow CSI spend
Performance:

blackarrow Ongoing investment in line with B-BBEE requirements
 
Product

Minimise product impact and ensure food safety

  Why:

blackarrow Foods have a high environmental and health impact. It is important to ensure food products are responsibly and safely sourced, manufactured andf distributed
KPIs:

blackarrow Customer complaints
Actions:

blackarrow Crown continuously upgrades food safety measures, quality assurance and supplier quality audits

 

Planet

Reduce environmental impacts

  Why:

blackarrow Environmental issues, such as climate change, pollution and water scarcity
blackarrow These issues also potentially threaten food supplies

Objective:

blackarrow To reduce our impact, educate employees, and work with suppliers and offer solutions to customers to help them reduce their impacts
KPIs:

blackarrow Water used and water intensity
Performance:

blackarrow Water usage increased from 35,4Mℓ to 51,9Mℓ in 2014

 

Stakeholder engagement

STAKEHOLDERS   OBJECTIVE AND ENGAGEMENT
METHOD (AND FREQUENCY)
KEY ISSUES IDENTIFIED KEY ACTIONS TAKEN AND PLANNED
(more detail may be provided in material issues tables and elsewhere)
People

Employees (full-time and contract)

  Objective:

blackarrow Improve employee relationship and satisfaction

Methods:

blackarrow Employee surveys (annual)
blackarrow Anonymous feedback forms (ongoing)
blackarrow Newsletter
Key issues:

blackarrow Remuneration and benefits, being informed about corporate strategy, employee skills development, employee wellness, local economic development and specific employer/employee relationship issues

Issues considered material:

blackarrow Employee wellness, skills development and retention
Performance management systems and development plans in place
Unions   Objective:

blackarrow Maintain good union relationships
Key issues:

blackarrow Remuneration and benefits, corporate strategy, employee skills development, employee wellness and local economic development
Regular interaction and consultation
Suppliers

 

  Objective:

blackarrow Maintain good relations
blackarrow Understand issues and resolve these together
  Regular interaction and performance reviews takes place with key international principles

 

Customers   Objective:

blackarrow Understand evolving needs, expectations and issues
  Regular sales reviews and agree action plans
Communities

Local communities
Particularly community subsectors (eg sports, education, infrastructure)
  Objective:

blackarrow Better understand and collaborate with the communities in which we operate
Key issues:

blackarrow Local economic development and employment opportunities, education (schools), skills development, health and environment

Material issues:

blackarrow Socio-economic development and community involvement
Involved in community projects
Registered office South Africa
Bidvest House
18 Crescent Drive
Melrose Arch
Melrose
Johannesburg
2196
South Africa
 
Website: www.bidvest.com
Telephone: +27 (11) 772 8700
Email: info@bidvest.com

 
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