Supply chain optimisation within our growing distribution network
Given current low levels of growth, we have proactively tightened our cost control and margin management measures while increasing our marketing drive.
We continue to enhance distribution capacity, efficiency and efforts to reduce our resource impact throughout our supply chains.
The most significant progress for the 2017 reporting year is the positive long-term impact of the introduction of a new slow-moving product model between our North and South Rand facilities. This followed the completion of the new facility at the North Rand distribution centre in November 2016.
The extension of the Western Cape distribution centre was completed in October 2016, while our plans for new facilities in the Eastern Cape and West Rand have been delayed due to the need for an environmental assessment and slower medium- to long-term demand projections.
This year we managed to acquire land adjacent to the KwaZulu-Natal distribution centre as well as property adjacent to the head office in Pinetown.
We are also initiating a long-term solar energy project with the first panels already installed at the South Rand distribution centre.
Supply chain and logistics expertise from South Africa contributed to improvements at the facilities for Appleby Westward, BWG and Switzerland.