2023INTEGRATED ANNUAL REPORT
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REVIEW OF OPERATIONS

SUPPLY CHAIN IMPORTERS
OVERVIEW AND PERFORMANCE MATRIX

DISTRIBUTION CENTRE

International Tap Distributors ("ITD")

International Tap Distributors ("ITD")

Nature of business

Importer and distributor of brassware and accessories.

Strategic positioning Target market
Experience water's inspiration.
  • Italtile Retail, CTM and TopT store networks.
KPIs Trends 2023 Trends 2022
Sales down up
Average selling price up up
Margins down up
Net profit down up
Stock turn down down
Closing inventory down up
Key differentiators
  • Key component of the Group's vertically integrated supply chain.
  • Long-standing relationships with international suppliers and extensive import experience.
  • Efficient, state-of-the-art robotic warehouse facility.
  • Leading product quality including the Tivoli range, the only major Italian brassware brand available in South Africa.
2022/23 priorities Scorecard
  • Focus on refreshing the range and introducing new fashion.
 right
  • Grow market share through increased sales to existing customers.
wrong
  • Leverage progress made in the commercial projects segment in 2021/22 to attain sales targets.
wrong
  • Continue to closely manage total investment and composition of inventory in the context of erratic lead times.
 right
  • Continued improvements in productivity and cost-containment measures will be imperative to achieve profit growth targets.
 right
2022/23 major achievements 2023/24 priorities and prospects
  • Maintained high levels of business-critical stock to support the retail operations.
  • Limited the impact of higher overhead costs through improved rigorous cost-containment measures.
  • Maintained wholesale and retail pricing despite increased pressure on margins as a result of local currency weakness and an increase in input costs.
  • Reduced inventory significantly following improved supply chain reliability.
  • Volume growth through gains in market share is imperative in the context of constrained consumer spending and subdued investment sentiment.
  • Grow sales in the commercial projects segment to achieve meaningful and sustainable turnover improvement.
  • In light of stable supply lead times, drive improvement in retail stock turn.
  • Despite a stabilisation of raw material costs, margins will remain under pressure due to local currency weakness and cost inflation.

Cedar Point

Cedar Point

Nature of business

Importer and distributor of laminate and vinyl flooring, bathroom furniture, shower enclosures, sanitaryware, décor and other home-finishing products.

Strategic positioning Target market
Where service is the point. Ensure competitiveness of the Group's retail stores by consistent supply of quality, fashionable home-improvement products at attractive prices.
  • Italtile Retail, CTM and TopT store networks.
KPIs Trends 2023 Trends 2022
Sales up down
Average selling price up up
Margins down down
Net profit down up
Stock turn down down
Closing inventory down up
Key differentiators
  • An integral component of the Group's supply chain across merchandise categories.
  • Strong relationships with international and local stakeholders.
  • Buying power from Group volumes and common-site synergies.
  • Efficient warehousing and consolidated deliveries.
2022/23 priorities Scorecard
  • Grow sales through the store network.
 right
  • Monitor supply pricing and investigate alternate supply as inflation affects regions and economies differently.
 right
  • Optimise use of road freight from Durban port to significantly reduce landside costs.
 right
  • Maintain optimal in-stock levels of business-critical products and reduce inventory as global supply chain stability returns.
 right
  • Introduce additional merchandise categories to the Group's retail brands and continue to enhance the integrated retail stores' competitive offering.
 right
  • Improve stock demand forecasting and planning with CTM and TopT stores.
 right
  • Plan a new site for the Cape Town warehouse facility.
 right
  • Improve visibility of all imported stock from manufacturer to the customer.
 Underway
2022/23 major achievements 2023/24 priorities and prospects
  • Grew sales of product through the store network.
  • Reduced stock control costs.
  • Expanded managed inventory at Company-owned CTM and TopT stores.
  • Improved stock demand forecasting and planning with the retail stores.
  • Grow sales.
  • Revise product merchandise categories and introduce new fashion.
  • Improve stock turns and reduce inventory.
  • Improve visibility of all imported stock from manufacturer to the customer.

Distribution Centre

Distribution Centre

Nature of business

Procures stock for the Group and is one of the largest importers of tiles in South Africa.
Provides warehousing, distribution and logistics services to the Group.

Target market
  • The Group's retail store networks and integrated suppliers.
KPIs Trends 2023 Trends 2022
Sales down down
Average selling price down down
Margins down down
Net profit down down
Stock turn down down
Closing inventory down down
Key differentiators
  • Long-standing relationships with international suppliers and transport agents.
  • Extensive multi-decade import experience.
  • Bulk warehousing and efficient operations integrated into the Group's TMS.
  • Strong financial position facilitates optimal investment in inventory.
2022/23 priorities Scorecard
  • Continue to closely manage inventory and prioritise improved stock turn.
 right
  • Maintain the in-stock position for CTM and TopT.
 right
  • Continue to achieve savings on sea freight costs.
 right
  • Leverage off the control tower solution to manage lead times, and redesign the shipping front-end process to synchronise with the control tower solution to gain better visibility of the shipping front-end.
 right
  • Improve sales through stores by procuring fashionable product at attractive prices.
 right
  • Capitalise on the opportunity to achieve continuous improvements in productivity and efficiency.
 right
  • Source alternative supply of competitively priced product from various countries.
 right
2022/23 major achievements 2023/24 priorities and prospects
  • Improved the stock turn rate and achieved the net profit budget.
  • The control tower solution was effectively implemented, which enables us to manage lead times and gain better visibility of the shipping process.
  • Improvement in the vehicle utilisation rate achieved.
  • Our team completed training courses, which contributed to improved productivity and efficiency.
  • Continue to improve sales through stores by procuring fashionable product at attractive prices.
  • Improve OTIF and retail in-stocks.
  • Further improve the average vehicle utilisation rate on the TMS.