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Network Planning & Optimisation
Route Trade Survey & Panel Discussion
Simon Coates
Director
Portland Group
(An Infosys Co.)
Sherif Hassanein
Group Director
Supply Chain
Manassen
Guy Romeo
Chief Logistics
Officer
Parmalat
Mike Robbins
Oceania Physical
Logistics Manager
Nestle
Simon Coates
Now part of Infosys Portland continues to deliver supply chain and procurement
solutions to many of Australia’s leading organisations
Who is Portland?
Simon Coates
This survey was designed in conjunction with the AFGC to raise awareness of route
trade supply chain opportunities against a background of Woolworths and Coles
dominance
• The grocery channel dominates sales volume for Australian
FMCG organisations - Woolworths and Coles represent 71%
of the market
• Metcash is considered a significant 3rd player, distributing to
IGA plus Franklins and 7/11 (both in ‘other’)
• Aldi and Costco represent a small but notably growing
influence
• The ‘Route Trade’ comprises circa 11% of the total market,
depending on the definition applied
• Management effort and time is focused on Woolworths &
Coles agendas
• There is opportunity to improve route trade supply chains
• This survey was developed in this context as a collaboration
between Portland Group and the AFGC
Background to the Survey
Retail Grocery Market Share
Background
Source: IBISWorld G5111 - Supermarkets and Other Grocery Stores in Australia
Simon Coates
20 of Australia's leading FMCG organisations participated in the survey. In addition,
senior supply chain executives from 11 of these companies were interviewed to obtain
greater insights
• Kelloggs
• Bulla Dairy Foods
• Red Bull
• Fonterra Brands Australia
Pty Ltd
• Ferrero Australia Pty Ltd
• Tip Top, A Division of
George Weston Foods
• Treasury Wine Estates
• Independent Distillers
• Nestle Australia
• Schweppes
• Johnson & Johnson Pacific
• Campbell Arnotts
• SCA
• Coopers Brewery
• PepsiCo
• Parmalat
• Sugar Australia
• Simplot
• Unilever
• Lion
• Manassen
Survey Participants Survey Participants Revenue
Participants
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What is Route?
Definitions are challenging and vary by business but this would be a typical
picture............
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Route Trade Category Split
The route trade is more important for some. Beverages including hot, cold and milk
dominate volumes distributed through the route channel
Sources: BIS Shrapnel – Route Trade in Australia, 3rd edition
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Growth
Despite many factors weighing against the route trade, 93% of respondents believe that
volume in this channel will continue to grow
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Improving Route Trade Supply Chain Performance
Understanding true cost to serve and better managing freight and warehouse cost are
high on the improvement agenda for most organisations
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Collaboration
Collaborative solutions are already in play with organisations seeking to understand
where shared route solutions may deliver value and what management model is needed
to support execution
Simon Coates
Panel Discussion
We have a great panel with “truck loads” of practical leadership experience for you to
leverage with your questions after some initial introductions……