A presentation by Martin van Coller SCOR-P, Strategic Accounts Management, Imperial Logistics, South Africa and Willie Venter MBA, National Logistics Manager, Twinsaver, South Africa. Delivered during SAPICS 2016, a leading event for supply chain professionals, held in Sun City, South Africa. This case study will demonstrate how the ability of the service provider to integrate the inbound, outbound, freight forwarding and clearing elements of the supply as well as the administration of a bonded facility into a cost effective one stop supply chain solution. This addresses all the aspects related to people, processes, technology, and infrastructure and information management.

1. Twinsaver Group

2. Before 2 0 1 0
INEFFICIENCY COMPLEX NEED TO FIND SOLUTIONS CARBON FOOTPRINT POOR TIME MANAGEMENT NO COLLABORATION

3. Objectives
Twinsaver reviewed their supply chain in 2009 and established that it was
extremely complex with multiple opportunities to improve efficiencies.
Unable to find a solution internally Twinsaver put out an RFP which Imperial was successful in obtaining.
Imperial, along with Twinsaver, redesigned the supply chain resulting in the following
National footprint
for Twinsaver
Simplified supply chain Improved in on time
service levels
Reduced stock holding
Consistent and reliable
service levels
A reduction in vendors. Imperial
now being the single service
provider
Back to back loading of all
dedicated primary vehicles
Simplified accounting with
a single invoice from each of
the 4 service providers
Simplified reporting process
with the LLP being the single
point of contact
Positive impact on
the bottom line
A service provider that allows Twinsaver to adjust for
supply chain flexes with limited cost implications

4. After T O D A T E
EFFICIENCY SIMPLICATION TRAINING CARBON FOOTPRINT TECHNOLOGY TIME MANAGEMENT COLLABORATION

5. The Solution
Establishment of Lead Logistics Provider (LLP)
I N B O U N D
L O G I S T I C S
( D E S T U F F I N G O F
I M P O R T C O N T A I N E R S )
S E R V I C E A G R E E M E N T
L E A D L O G I S T I C S P R O V I D E R
P R I M A R Y T R A N S P O R T
( I N C L . C R O S S - B O R D E R )
W A R E H O U S I N G
( P R I M A R Y C R O S S - D O C K I N G )
S E C O N D A R Y
T R A N S P O R T
I M P L E M E N T A T I O N
B A C K - T O - B A C K S E R V I C E L E V E L A G R E E M E N T
840
containers
per annum
2719
loads
195 200
pallets
per annum
60 000
pallet
positions
11 500 000
packages delivered
per annum
59 965
stops per annum

6. Inbound
Before Multiple Service Providers and Facilities
S O L U T I O N
Consolidation of all imported
raw materials and finished
goods
Introduce bonded
carrier
Appoint single clearing
and forwarding
company
Establish a bonded
facility within the
consolidated facility
After Single Service Provider and Facility

7. Inbound
R E S U L T S A C H I E V E D T O D A T E
Single
facility
Reduction in
handling
and haulage
Need for container
movement to the Reef has
been eliminated
Back to back
loading of vehicles
between KZN and Gauteng

8. Warehousing
Before
Multiple Warehouses
Consolidation of 3 KZN
warehouses into a
single facility
Bonded and non-
bonded product to be
warehoused in KZN
Consolidate 3 Gauteng
facilities into 2
After
Multiple Warehouses
Consolidated Warehouse Consolidated Warehouse
S O L U T I O N

9. Warehousing
R E S U L T S A C H I E V E D T O D A T E
KZN Warehousing,
KZN, has been
optimised with
all products
stored in a
single
principal site
rather than
various multi
principal sites.
Gauteng Warehousing in
Gauteng has
also been
optimised with
all products
stored in two
facilities
servicing the
Northern
Gauteng region,
Mpumalanga &
Free State.
Free
State
Warehousing in
the Free State
has moved
into a multi
principal site
servicing the
greater
Bloemfontein
and Northern
Cape.
reduction The consolidation and
relocation of the KZN
warehouse resulted in a
reduction in
travelling time
and distance
for primary, secondary
distribution resulting in
savings for Twinsaver.

10. Primary Distribution
Before
Multiple service providers | No integrated planning
Improved integration
between imported raw
material and finished
goods
Integrated planning
Leverage LSP transport
management system
After Single Service Provider | Integrated Planning
S O L U T I O N

11. Primary Distribution
R E S U L T S A C H I E V E D T O D A T E
23%
reduction
in the average
turnaround
time between
2013 and 2015
20%
reduction
in average Km
per trip
between
2012 and 2015
12%
reduction
in carbon
emissions
between
2012 and 2015

12. Before
Multiple service providers | No integrated planning
Consolidate inbound
and secondary
distribution in KZN
Integrated planning of
secondary transport and
supply and destination
site activity
Leverage LSP transport
management system
After Single Service Provider | Integrated Planning
S O L U T I O N
Secondary Distribution

13. R E S U L T S A C H I E V E D T O D A T E
36%
reduction
in the average
vehicles
utilised
daily between
2011 and 2015
23%
reduction
in average Km
travelled
per day
between
2011 and 2015
26%
reduction
in carbon
emissions
between
2012 and 2015
Secondary Distribution

14. Twinsaver
R E S U L T S A C H I E V E D T O D A T EB E N E F I T S
Improved control and reduced risk with a
single supplier providing all services for
Twinsaver.
Simplified accounting with a
single invoice being presented monthly from
the 5 service providers.
Simplified supply planning for Twinsaver
with the consolidation of multiple sites in Gauteng
and KZN
Positive impact on the
overall Supply Chain cost for Twinsaver
A simplified reporting
process has been achieved
with a single point of contact
reporting to Twinsaver for all
Imperial companies involved in
the supply chain.
Using the Imperial Group
allows for Twinsaver to
adjust for supply
chain flexes with
limited cost implications
Consistent
improved
service levels
have resulted in a
reduction in lost sales
8.55%
increase
in the average
volume
between
2012 and 2015
2.8%
decrease
in the average
total cost
after inflation
between
2012 and 2015

15. Societal Impacts
Economic
longevity
Sustainability
Skills
development
and training
Work life
balance
Health and
Safety

16. Learnings
QDMand a focus on
continuous
improvement
has ensured that the Twinsaver
supply chain has the ability to
continuously evolve and adapt
Through trainingand
effective internal
communication
human resource
sentiment remains positive
Clear, concise and structured
formalised
communication
between business partners
is key to maintaining
healthy relationships
Service excellence
and integrity
within the relationship has enabled it
to move from buyer/seller to a
true partnership.
Technology,
in all facets of the supply chain,
has delivered
maximum control and
results
The success of a
LLP model
is depended on strong open
relationships through a
single point of
contact

17. What was unique?
The consolidation of the service offering of 5
companies within the Imperial Group, into a single
service provider to the Twinsaver Group, through the
establishment of the LLP. A unique solution for Twinsaver
in that it dramatically simplified their supply chain and
the management thereof.
Twinsaver’s partnership
with Imperial is
extensive and
encompasses the
complete supply chain
The ongoing process of quality driven management and commitment to continuous improvement has been key to the
success of the partnership. To date, a total number of seven continuous improvement projects, funded by
Imperial and Twinsaver, have delivered very tangible benefits for Twinsaver.
Twinsaver
Distribution
Centre
Business Case
Pick N Pay
Twinsaver
Customer
Profitability
Twinsaver
Procurement
Commodity
Strategy
Implementation
Twinsaver
Procurement
Spend Analysis
Twinsaver
Network
Optimisation +
Cost-to-Serve
Twinsaver
Procurement
Assessment
Twinsaver
Gauteng
Distribution
Network
Review

18. The Way Forward
Success
with this project has prompted
Imperial to investigate the
feasibility of introducing this
model into additional operations
Imperial /
Twinsaver will
be focussing
on
brand
development
Safety
focus
within the
supply
chain
Damage
reduction
initiatives
Vehicle design
and development
to accommodate
the changing
needs within the
supply chain
As a result of a
change in
product lines
and the knock on effect on
the Twinsaver supply chain
Imperial will
redesign of the
Twinsaver
Group supply
chain
redesign of the
primary and
secondary fleets
redesign of
warehousing
configuration and
requirements

19. T H A N K Y O U
Questions?