SCL HUB February 2017

1. Global Supply Chains – Challenges & Opportunities
Tom Rose – Head of Operations
SPAR International

2. Do you know SPAR?

3. SPAR UK
• 2,434 stores
• £3.62b sales in 2015

4. Award Winning Business

6. SPAR was founded in
The Netherlands
in 1932 by
Adriaan van Well

7. All will benefit from united co-operation
Adriaan van Well and 14 other like minded people founded DESPAR in 1932
The SPAR Brand
D SE P A R
D oor E endrachtig S amenwerken P rofiteren A llen R egelmatig

8. SPAR Presence Today
43 countries
4 continents
12,176 stores

9. 337,000
SPAR COLLEAGUES
EMPLOYED
€33bnGLOBAL SALES
GLOBAL
SALES AREA RETAIL
MILLION
7m2
SALES
GROWTH
+3.5%
PER
DAY
13SERVING
MILLION
CUSTOMERS
12,176
STORES
GLOBALLY
2015 At a Glance

10. 63.1
17.3
12.7
6.9
Western Europe
SPAR Worldwide
Central &
Eastern Europe
Africa &
Middle East
Asia Pacific
33bn
12,176
7m
SALES % SHARE
PER REGION €
0
1000
2000
M2 AVERAGE PER STORE
573 Average across all 4 store formats
398 Western Europe
1153 Africa & Middle East
796 Central & Eastern Europe
2005 Asia Pacific
STORE % SHARE
PER REGION
SALES AREA % SHARE
PER REGION m2
RECOVERY
CHINA
INDIA
INDONESIA
+18%
GROWTH
53.6
15.8
14.3
16.3
77.2
7.8
10.3
4.7
EXPANSION
RESILIENCE

11. Our Mission

12. Multi-Format Retail Strategy

13. Focus on Fresh,
Value, Service

14. DC PLANNING
NETWORK PLANS
TRANSPORT PLANS
Logistics

15. SC OPTIMISATION AND
SUPPLIER
COLLABORATION
INVENTORY
MANAGEMENT
PRODUCT FLOW /
EFFICIENCIES
Supply Chain

16. BETTER BUYING
SPAR BRANDS
INTERNATIONAL
SOURCING
FMCG
PRODUCT
DEVELOPMENT
RANGE MODERNISATION
Buying

17. Operations support
Best Practice/
Optimised Operation
Developing
Partners
Established
Partners
Tomorrow’s
Benchmark
• Logistics/Supply Chain
• Retail Technology
• Human Resources
• Purchasing Support

19. Developing Markets
• Modernisation of the supply chain
• Core principles
• Cool chain integrity
• DC planning
• Picking processes and flow
• Logistics systems
• Vehicle standardisation
• Vendor management and inbound control

20. Modern Warehouse Design

21. Infrastructure Challenges

22. Inbound Planning and Control

23. Cool Chain Integrity

24. Standardisation, Processes and Systems

25. Vehicle Standardisation and Best Practice

26. Developed Markets
• Warehouse efficiency
• Network efficiency
• Flow optimisation
• Inventory management
• Waste reduction
• Transport utilisation and
optimisation
• Supplier supply chain collaboration
• End to end supply chains
• Automation

27. Ebergassing – SPAR Austria

28. Developed Markets

29. Study Visit & Conferences

30. Best Practice Documentation
• Available on Intranet,
SPAR Connect
• Russian and Chinese translation
• Newsletters
• Conference updates

31. Partner Action Groups
Transport Action Group Warehouse Action Group
• Explore latest developments
• Share development plans
• Exchange ideas
• Discuss Best Practice

32. Supply Chain Action Group
Formed in
May 2016
Two meetings, Netherlands
and Gran Canaria

33. Supply Chain Mission
Maximise the number to retail units
delivered to the shelf and transacted
With the minimum amount of handling
though the end to end supply chain.
Maximising Quality, Freshness and
Customer Availability at the lowest cost

34. Objecties of Supply Chain Action Group
• Explore the end-to-end opportunity
• Identify development opportunities for the wider SPAR world.
• Seek collaboration with internal and external stakeholders like
Store Operations and FMCG
• Explore both upstream (supply side) and downstream (demand
side) development
• Share learnings with the wider
SPAR world

35. CO2 Emissions
-58%
Inbound Loads
-29%
Pallet Cost
-21%
SPAR Netherlands
Inbound Consolidation

36. SPAR SOUTH AFRICA
Direct Loads from Factory
üReduce Cost
60% of total laundry powder dispatched from
Unilever Factory è 11500 pallets (YTD July)
Savings for Unilever shared equally with SPAR
1.2 Euros/pal è 14000 Euros eq 5200 unitsof
laundry powder 2kg.
TOTAL SAVINGS 31K Euros, in six months

37. SPAR SOUTH AFRICA
Dedicated Doors & Slip Sheets
Collaboration with DC’s located in proximity to UL
warehouses. Dedicated offloading door results In
quick turnaround time & improved truck utilization.
DEDICATED WAREHOUSEOFFLOADING
Savings for Unilever shared equally with è 65,000
Euros.
SLIP SHEETS
Use of slip sheets in the transportation of
break bulk; Benefit in improved truck
utilization à lower costs
2015 FY savings for Unilever shared equally
with SPAR è 14,500 Euro’s
üReduce Cost

38. Better Together