Operational reviews – Bidvest Logistics UK

Bidvest Foodservice Europe

Andrew Selley: Chief executive Shaun Foley: Managing director

Highlights 13% increase in operating profit with turnover passing 1 billion GBP Continued strong cash generation and negative assets employed No bad debt write-off in year and stock losses at a record low. Non-financial performance Successful opening of the new Hoddesdon depot Identification of potential large acquisition (purchased July 2014) Increase in governance control continues Moved a record volume of over 60 million cases through the business Closure of Heywood site moving into the new Royton extension.		Andrew Selley – Chief executive Shaun Foley – Managing director

Innovation and new investment

	Minister WMS interface to SAP
	Royton ambient extension and multi-storey car park
	Packaging recycling for major client
	Introduction of bar coding on high-value products.

Disappointments and challenges

	Shortage of drivers in UK due to CPC requirements causing high agency levels and problems at peak for all distribution companies
	Volume fluctuation patterns are becoming more regionalised and variant
	High operational sick levels are still occurring in certain areas
	Lack of progress on parking fines on deliveries within the City of London.

2015 targets, objectives and factors affecting future results

	Continued review of the operational network
	Integration of new acquisition (July 14) into the business
	Improve our resource planning to address the challenge of volume fluctuations and driver shortages
	Reduce effect of risk exposures.

Changes in the operational environment

	Significant increase in power costs continue – addressed by reduced usage and a search for alternatives
	Higher employment levels and increased confidence are applying pressure on staff retention targets
	High agency, road congestion and new vehicle regulations affecting fuel efficiency of fleet – addressed by driver training, driver bonuses, vehicles spoilers and route management.

Risk and response

	Growing customer service demands – creation of a service excellence board
	The need to simplify and streamline the business without compromising service levels – potential further expansion of our Hoddesdon operation
	Fluctuating volume levels; daily, weekly and seasonally both forecasted and not forecasted within a fixed structure network – adopting a micro zonal approach to planning and management to remove averages and increase market knowledge
	Lack of full-time trained staff – split of HR team into two elements with on focusing on staff planning and recruitment to plan.