1. Team Fusion Pat Smith – Talent Management Manager - PEP
Sabelo Ziqubu – Store Manager – Pick n Pay
Mikateko Mathye – HR Manager – Spar
Riaan Haas – Regional Manager – Clicks PTY LTD
Keeran Diahnan – Contact Centre Manager – UPD
Mpiyakhe Khoza – Buying Executive – Edcon

2. Do YOU want to add 3 BILLION Rand more to your revenue?

3. Creating Agile Supply Chain

4. Outline Introduction Research Objectives Research Methodology
Research Findings
Discussion of Findings
Recommendations

5. Introduction

6. What is Agile Supply Chain?
How fast does a supply chain
responds to changes in the environment, customer preferences, competitive forces etc.
How can companies adapt their supply chain to these changes

7. Core characteristics of Agility
Responsiveness
Flexibility
Quickness

8. ‘Agility’ works bests in a less predictable environment where the demand for variety is high.
Most suitable for Fashion retail

9. Customer first Who is The MOST PREFERED fashion retailor in SA?
What do customers want?
How best to use ASC to respond to their needs?
This is what we were most curious about too!

10. Research Objectives

11. Research Objectives
Identify customer needs that would inform an agile SC
Identify the elements of Agile supply chain
How to leverage these elements for competitive advantage?
Make recommendations based on our research to local fashion retailers

12. Research Method

13. Stake holders
Research Method Used
256 Customer
Survey
Preferred Retailer and Why?
7 Industry Experts
5 Local
2 International
Structured interview
1 Clothing Factory
Observation
4 Distribution Centres – FMCG / Pharma / Clothing
Cross Sector Observation of Agile Supply Chain
International Immersions
Ghana
USA
India

14. Research Findings

15. Review Fashion Landscape
Local Fashion Industry
Imports
Long lead times

16. Current Sales vs Last year :
Market growth at 4% in Q1
Mr Price growing at 7.6% YTD
International Competitors
e.g. ZARA

18. Customers Preference

19. What do Customer Want? Top Three reasons Product variety Quality
Value for money
Follow up interviews on the meaning of Product Variety:
- 20 customers

20. What does product variety mean to The Customers?
“I usually shop at Mr Price because they attract and keep their customers with good quality, stylish clothes, and size is always available and affordable”
“the more variety there is, the better chance of choosing different trends and being fashionable”

21. Supply Chain Observation :
Industry Experts
Agility in product flow is the disruption in the eco system
SC is an ever changing process

22. Agile SC Observations:
75% Automation
Pharma
JIT supply
Managing routing
Centralization DC
Reduce stock outs

23. Clothing Factories
Manufacturing capacity
Multiple Clients

24. Immersions
USA
Macy’s - Observe real time trends Mock samples Sell to buyer Final product into stores

26. India Future Group DC Consolidation Data Integration Stock Turn
Agile SC scoring Spectrum

28. Shared KPI

29. Discussion of Findings

30. 5 Elements of Agility that can be measured
Customer Survey
Product variety
5 Elements of Agility that can be measured
Alertness
Accessibility
Decisiveness
Swiftness
Flexibility
Disruption

31. Supply Chain Agility Scoring Spectrum
Online Survey
Automated data capture
Dashboard report
Focus on area’s Identified by colour
Green – indicating strength
Yellow – Indicating neutral
Red – Indicating Area of focus

33. Recommendations

34. Streamlining SC

35. The Opportunity- Centralize Distribution
1. Connects N3/N1 and other major routes
2. Located close to major clothing manufacturing hubs (KZN, Gauteng, North Eastern Free State and Lesotho)
3. Apply pull model to react swiftly to sales
sqm facility
2. 24hrs, 3 shifts
3. Manage pre-sort orders, breakbulk and warehouse stock for swift response to sales
1. Improve lead times
2. Reduce transportation costs
3. Improve stock turn
4. Streamline Distribution
1. Consolidate and create waves
2. Increase frequency
3. Improve reverse logistics process
Harrismith Logistic Hub

36. The Opportunity cont:
Localize fashion production

37. The Start
The Projection
The Outcome

38. Conclusion
We have shown you how to add an increase in revenue of R3billion.