OUR EXPANSION INTO AFRICAMacquarie First South Securities
3rd Annual Logistics Tour
28 November 2012
Cobus Rossouw
IMPERIAL LOGISTICS REVENUE
OUR AFRICAN FOOTPRINT
RTT SERVICE PARTNERSHIPS
3 PILLARS TO OUR STRATEGY
Invest heavily in developing corridors between neighbouring
countries in Southern Africa so that product flows efficiently
from neighbouring country to country
Assist clients in benefiting from the mass consumerisation of
Africa through our integrated value offering in the FMCG and
Pharmaceutical spacePharmaceutical space
Explore supply chain partnerships and advisory opportunities
with both existing and potential clients to identify potential
solutions that can be offered to these clients in Africa
OUTSOURCED SALES: CIC
Wholly owned by Imperial Logistics, CIC Holdings operates
within the FMCG Industry through agency agreements with
both local and international manufacturers
The Group currently operates in 9 African countries, including a
footprint of 18 sites across the continent and > 10,000 staff
Building brands and creating the demand
Chasing FMCG growth
Consumers conversion
Value proposition (stakeholders)
Unique selling proposition (customers)
Building IP
Reporting and Point of Sale
Partners in profit
Proactive route to market
Intelligence for bottom-of-the-pyramid
COMPLIMENTED WITH DEMAND CREATION
SERVICES
LESSONS LEARNT
Forex surprises
No ‘1-size fits all’
Due diligence complexities
Related party arrangements
Complex entrepreneurial structuresComplex entrepreneurial structures
Land ownership in African countries
No pipeline of qualified quality people
LESSONS LEARNT
Over-reliance on the sellers as managers
Centralisation of accounting and reporting
Sellers made use of external consultant who was
obstructive
Over anxious for deals Over anxious for deals
Start-up businesses very difficult, costly and time
sensitive
Thus not part of our model which is focussed on
acquisitions
CHALLENGES
Taxation
Corruption
Governance
Legislation complexities
Infrastructure deficienciesInfrastructure deficiencies
Foreign exchange rate risk
CHALLENGES
Cultural fit and Africanisation
Limited suitable opportunities
Shareholder return expectations
High price expectations on acquisitions
Limited sypply of qualified human resourcesLimited sypply of qualified human resources
IMPERIAL LOGISTICS AFRICA 3 YEARS FORWARD
Africanisation
Country consolidation
Zambia node established
Pull dominant over push
Unique selling proposition
Angola
Unique selling proposition
Integrated value proposition
Customer one answer in Africa
IMPERIAL LOGISTICS AFRICA 3 YEARS FORWARD
50% less reliance on South Africa
Competitive “Africa” fleet of trucks
Africa manufacturers’ preferred partners
Asset light service offering 4PL (Sub Base)
Partner with global, local and SA retailers &
Angola
Partner with global, local and SA retailers &
manufacturers
Create China/Africa partnership to assist with
Imperial Logistics Confidential
QUESTIONS?
IMPERIAL GROUP IN PERSPECTIVE
The IMPERIAL Group is founded on five strategic pillars:
IMPERIAL was established in 1975 and is a diversified industrial services and retail group. We operate in South Africa, Africa and Europe with an extensive global reach.
IMPERIAL, listed on the JSE, operates a decentralised management structure that actively encourages entrepreneurship, innovation and encourages industry best practice.
IMPERIAL GROUP IN PERSPECTIVE
IMPERIAL LOGISTICS AFRICA
OUR POSITIONING
We improve our clients’ competitiveness
through customising our experience
in outsourced supply chain and logistics
Combining consistent fundamentals and tangible value add, we supply logistics and
supply chain management from a single source
CHANGING ROLE OF THE
LOGISTICS SERVICE PROVIDER
OUR SERVICE OFFERINGS
ADVISORY SERVICES
• Market assessment
• Business plan development
• Customer profitability assessment
(Revenue – Cost 2 process + Cost 2 serve)
• Route to market strategy
• Intermodal strategy (Port, Rail, Road)
• Network configuration (Local, International)
• SOP process & structure
• WHs process innovation
• Transport fleet configuration
• Inventory planning & modelling
• Procurement strategy
• Technology enablement / Visibility Modelling
• Network configuration (Local, International)
• Supply Chain Capability development
(Design & Manage)
INFORMATION TECHNOLOGY SOLUTIONS
INFORMATION TECHNOLOGY SOLUTIONS
PEOPLE ALIGNMENT
ENGINEERING LOGISTICS
LOGISTICS MANAGEMENT
COMMITTMENT TO B-BBEE
B-BBEE is a strategic imperative
IMPERIAL Logistics is classified as a Level 3
contributor with a significant Value Add
Supplier Status
This translates to a 137.5% Procurement
Spend Recognition from IMPERIAL Logistics
We will continue to pursue and promote all
facets of empowerment in our businesses
COMMITTMENT TO SUSTAINABLE TRANSPORT
Improving our environmental footprint through the adoption of these principles.
COMMITTMENT TO CSI
COMMITTMENT TO SKILLS DEVELOPMENT
During 2011 we spent over R55m on skills development - 75% black employees and 25% black females
IMPERIAL Learning Centre works with SETA’s, internal experts and accredited providers and has string relationships with tertiary bodies and academic institutions
Our Fast Forward programme takes a practical approach to addressing the skills gap - from facilitating workplace entry and tertiary education support to gap - from facilitating workplace entry and tertiary education support to research
In 2012, the IMPERIAL Programme for Supply Chain and Logistics at GIBS was launched
The programme will elevate the visibility of supply chain management and position supply chain management as a career of choice for professionals
INDUSTRY ASSOCIATIONS MEMBERSHIPS
COMMITTMENT TO SAFER ROADS
Each of our operating companies is
responsible for compliance with the
National Road Traffic Act
Registration of vehicle operator
Fitness of vehicles (registration, licensing
and roadworthy certificates)
Fitness of drivers (driver's licenses and Fitness of drivers (driver's licenses and
professional driver permits)
Driver training (e.g. duty of driver in event
of accident, accident reports)
Road Transport Management System
COMMITTMENT TO SAFER ROADS
1 in every 3 car rental transactions is
made through IMPERIAL
1 in every 4 cars sold in SA is through
IMPERIAL
IMPERIAL’s southern Africa transport
fleet travelled 460 million kms last
yearyear
With so many of our vehicles on the
road, IMPERIAL embarked on an exciting
campaign to make our roads safer - one
pledge at a time.