A strategy for resilience & growth
The Group’s strategy aims to deliver long-term sustainable value for stakeholders.
Commercial effectiveness
Fuels
- Embedding the regional operating model.
- Benefits:
- Full visibility of commercial and domestic sales activity and performance levels.
- Improved margin management – reacting immediately to fluctuating demand and Q4 price volatility.
- Flexing sales activity and margin targets in line with delivery capacity by location.
Food
- Investment in new commercial team in year.
- Benefits:
- New business from new and existing customers – network full, using offsite storage.
- Building pipeline of customers for future growth.
- Potential target customers fully mapped.
Feeds
- Sales structure re-aligned to improve team effectiveness, support increased sales of both core product and additional nutritional products, and reduce overhead.
Operational efficiency
Fuels
- Embedding the regional operating model.
- Benefits:
- National visibility over fleet utilisation, delivery capacity and delivery plan attainment.
- Moving vehicles and drivers around the depot network to meet local demand spikes.
- Visibility over capacity allows enhanced margin management and targeting of sales activity.
Food
- Cost base restructure in June reduced warehouse costs.
- Investment in transport management system underway which will increase efficiency of current operations and allow realisation of transport synergies from a national network.
- Capability strengthened in warehouse and transport management in tandem with implementation of standardised, scalable processes.
- Fleet size reduced by 13.2% whilst pallets delivered increased by 3.5% vs the comparative period.
Feeds
- Investment in transport management system to optimise planning and balance use of own fleet vs third party.
Growth investment & targeted acquisitions
Food Growth Strategy to develop a national network of scale
Target market:
Ambient grocery consolidation
Target addressable customers:
Grocery manufacturers, importers and brand owners with turnover of £2 million – £250 million per annum
Addressable market size:
Estimated logistics spend in excess of £1.5 billion per annum
Current national market share:
Estimated 4.4%
Our USP:
NWF Food is the leading specialist in ambient grocery consolidation in the UK
NWF Food market share
Existing Food locations:
- Wardle
- Crewe
- Lymedale
Retailer Distribution Centres ('RDC') – distribution for current Boughey outloads:
- South-East 15.5%
- South-West 5.5%
- London 6.1%
- North-West 14.3%
- Yorkshire and North-East 16.9%
- East of England 5.2%
- Midlands (East and West) 23.6%
- Scotland 6.4%
- Wales 5.4%
- Northern Ireland and Islands 1.1%
UK ports importing ambient food:
- London 23.5%
- Felixstowe/Harwich 12.0%
- Liverpool/Holyhead 8.5%
- Southamption/Portsmouth 5.4%
- Humber 16.6%
- Dover 27.7%
- Teesport 2.4%
- Other GB ports 2.1%
Potential locations for new sites:
- Central Belt – Scotland
- North-East
- Midlands
- South-East
- South-West
Significant synergy opportunities:
- Fleet rationalisation through increased utilisation
- Reduction in empty miles
- Lower requirement for ‘tramping’
- Removal of duplicate costs
Customer expansion:
- Manufacturer/importer location versus end use consumer location – reduced logistics cost and emissions
- ‘Local’ provider
- Proximity to major ports of entry for ambient groceries
How we are going to achieve this:
- Optimise current network location – scalable processes and systems; people; customer mix
- Customer pipeline development
- Additional warehouses
- Targeted acquisitions
- Strategic partnerships
- National network of cross docking sites
Progress to date:
- Introduction of new scalable process and people capability strengthened
- Investment in transport management system and customer portal commenced
- Customer pipeline being built
- Proactive approaches being made to potential M&A targets
- Potential warehouse opportunities being considered
