Sithembisile Boutet

Financial Analysis

Financial Analysis

• Cost saving, supply chain analysis, financial modelling.

 Manage and supervise grid replenishments recommendations from OPTIMIZA

 Supervise and plan creation of replenishment orders and implementation of recommendations

 Supervise liaisons with branches and planners regarding inventory movements.

 Validate and confirm operational alignment in warehouse.

 Trend of grid adherence, by week, of all the branches within a DG, by brand.

 Escalate, resolve and manage exceptions.

 Collate and produce reports and advise on changes to templates.

 Produce the grid adherence report for stake holders and distribute.

 Produce the order status report for the Boksburg warehouse for stake holders and distribute.

 Produce the order status report for the RDC warehouse for stake holders and distribute.

 Co-ordination and planning collection of excess inventory at live branches and closing

 Producing CLA reports for the Boksburg and RDC warehouse.

 Escalating rejected RPs to Merchandise Executives.

 Switching branches on and off auto-replenishment, monitoring branches on auto-replenishment and signing off requests for auto-replenishments.

 Producing the supplier performance reports and escalate accordingly to Merchandise Executives.

 Introduction and maintenance of value adding and cost saving activities to the client company.

 Determine distribution requirements for Boksburg and RDC and create Inter-facility transfers.

 Liaise with Planners from the different brands at EHL

 OPTIMIZA- Liasing with the business daily to understand their business requirements.

 Address queries related to planning errors

 IBIS Quarantine management

 Resolving Inbound order queries.

 Production and Distribution of Weekly and Monthly reports KPI reports for Inter-Facility Transfers.

The savings through the model were significant in terms of the following:

• It enabled us to determine the suppliers that we would require to deliver to all the DC’s as opposed to just one DC. The benefit of this is that there is no need to handle these suppliers’ merchandise on multiple occasions and a certain level of exposure to damages is dramatically reduced. This will translate into a 12% reduction in damages. This was achieved primarily through fewer occasions on which the merchandise is handled, as well as through the implementation of strict controls on product quality and adherence to packaging standards.

• In identifying suppliers that can deliver to all DC’s it meant that we can eliminate unnecessary double handling and storage costs through putting the merchandise through multiple DC’s. This was predicated on the suppliers’ ability to move the merchandise at the same or less cost than BWL would be able to do it. The double handling costs are not so much a tangible saving; rather than an avoidance of an unnecessary cost. The additional cost that would have incurred would result in DC operational costs being 2.5% more than they are currently.

• Furthermore, we were able to identify those suppliers that are not contributing enough in terms of a supply chain rebate to cover the costs that are incurred by BWL to move the merchandise between facilities and we re-negotiated the supply chain rebates accordingly. This is a cost neutral exercise as we only aim to recover from suppliers the saving that they would make, which in itself would be equivalent to the cost that we would incur. The importance of this exercise is in the fact that any under-recovery from a supplier would result in a direct on cost for BWL.

• In understanding the network through this model, it enabled us to deploy the appropriate number and configuration of vehicles that we would require to move merchandise between facilities, thereby avoiding unnecessary in capacity that would be surplus to requirements. Understanding this detail has prevented the unnecessary procurement of vehicles, but this is difficult to quantify as the exercise itself has determined the number of vehicles required.

The benefit through grid adherence (Inventory management strategy) were as follows:

• Increasing the level of grid adherence resulted in an increased level of availability in the branches. This has a direct correlation to improved sales and we are able to demonstrate better sales figures for the branches that are supported in the new supply chain network and as a result have shown improved sales figures. Sales in branches supported by the new network have shown upward improvements of between 4% and 12%.

• In addition, in managing the grids correctly, we were also able to identify those branches that were overstocked with a higher investment in display merchandise than is warranted. By managing the grid levels correctly, we were able to reduce stock holdings in some of the branches and as such reduce the associated costs accordingly. Overall, the implementation of the supply chain network will reduce by R 70 million(4-5 Million Euros) by the end of this financial year.

• With the high volume of cash and carry sales (appliances, audio visual, bedding) it is important that the branches are adequately stocked to satisfy demand and the grid management programme was a tremendous contributor to ensuring that Ellerines was able to satisfy the demand for sales, directly out of the branches, for these categories of merchandise.