E Smith presentation

1. ECO Innovation @
Mac Brothers Catering Equipment (PTY) Ltd
Erald Smith
Factory Engineer

2. Agenda
• Background
• Why Sustainability?
• Impression About The Eco-innovation Concept
• Life Cycle Approach Taken By Company
• Key Sustainability Areas (Hot Spots)
• Eco-innovative Strategies Brainstormed
• Business Models Proposed
• Implemented Strategic Objectives And Results
• Lessons Learned

3. Background
• Founded 2002 by the MacMahon
Brothers
• 2014 bought by JSE Listed GPI
• Trading Facility R260mil TO in 2016
• Manufacturing Facility TO R60mil in
2016
• Turnkey solution – Entire value chain
Business Model

4. Why Environmental Sustainability?
Shareholder view
“There is one and only one
social responsibility of business
– to use its resources and
engage in activities designed
to increase its profits so long
as it stays within the rules of
the game, which is to say,
engages in open and free
competition without deception
or fraud.”
Milton Friedman
(1976 Nobel Price )
Stakeholder view
Freeman supports the
Stakeholder Theory in saying
that anyone who has a
stake/claim in the firm has the
right to be treated as a
participating determining factor
in the direction of a firm. They
are not just a means to the
end.
Edward Freeman
VS

5. Impression About The Eco-innovation Concept
• CEO sceptical – Entrepreneur
• Initial Information Overload
• Terminology
• SME challenge vs Corporate (Resources)

6. Life Cycle Approach Taken By Company
• Reduce
• Re-use
• Re-Cycle

7. Key Sustainability Areas (Hot Spots)
Areas Looked @
• Raw Materials
• Water
• Energy
• Health and toxicity
• Environment
• Profitability
• Society
Spectrum Considered
• Extraction & processing
• Production
• Transportation &
Distribution
• Use
• End of life
Mac Brothers
already have a
very lean
operating model
–
Biggest impact
(hot spot) is @
direct customer

8. Eco-innovative Strategies Brainstormed
Strategy 1
Improve profitability, customer
satisfaction and environmental impact
by changing transportation practices
and packaging methods of final
products
Strategic Goals
o Improve fuel consumption
by 10% per annum
through better driving methods
o Reduce packaging materials
by 30% per annum
by changing packing of final
products to flat pack methods
and using reusable materials
Strategy 2
Reduce the overall energy
consumption of fully
designed and installed
kitchens:
Strategic Goals
o Improve customer energy
use footprint by 30%:
by offering dedicated energy
efficient designed, installed,
maintenance and performance
monitoring service.
Strategy 3
Expand service offering to
include 3 clean technology
solutions to add value across
the value chain
Strategic Goals
o Reduce water waste to 50%,
o Reduce food waste by 30%,
o Reduce oil waste by 30%
by offering service solution and
clean technology products to
existing and new customers.

9. Business Models Proposed
Business Model 1
Improve Energy
Efficiency through:
• EE restaurant designs
• Eco-kitchen
equipment offering
Business Model 2
Reduce Carbon
Footprint in Outbound
Logistics by:
• Improved packaging
• Better driving method
• Self installation
Business Model 3
Re-using frying oil:
• Biodiesel for own transport
• Commercial selling
• Reduce Carbon footprint
• Reduce waste stream
hotspot

10. Business Models Proposed

11. Implemented Strategic Objectives And Results
Notconsidered
Current Status – Case Study
formulation
• Optimal Product
definition
• Measure Current
Situation (Baseline)
• Implement new
equipment
• Measure Improvements
• Compare results

12. Lessons Learned
• Management buy-in
• SME challenge
• Customer Education and Awareness
• Time - Not always immediate returns
• Capital Intensive
• Legislation – Speed of enforcing
• Liaison with key customers
• Innovation Culture
• Momentum creation
• Market leader advantage
Key
Challenges
Key
Opportunities

13. Eco-innovation Value Added
• Fresh Eyes
• Business Model

14. THANK YOU!