How To Achieve Business Growth
Sally Powell – General Manager Strategy Steve Jones – Chief Operating Officer
G’day USA
• Planning • Walking in your Customer’s Shoes • Diversification • Partnerships • A new way of thinking
Growth ?
“You Can Have Any Color As Long As It Is Black” Henry Ford
Australian Population by State 200K
3,640K
6,930K 1,900K 1,510K 4,820K 470K
Bedford Today
INSERT VIDEO HERE PLEASE – TO BE PROVIDED BY SALLY
Planning
“Always plan ahead. It wasn't raining when Noah built the ark” Richard Cushing
Planning The importance of being Strategic – To Drive Sales and Results
Vision Management Style
Strategy
Structure
Climate
Systems Environment
People
Results
Walking in your Customer’s Shoes
Where we were…OUR • A professional manufacturing business that produced quality products…and sold them to the retail sector. • Focused on a range of manufacturing KPI’s to meet budget and Bedford’s management expectations. • • • •
Our Our Our Our
Sales GP NP Inventory Levels
Our Budget
• Not to say we weren’t Customer Focused…1/2 of the Chain
Paradigm Shift • Meetings with Buyers….. “sell out not in” • Customer’s willingness to share scanned data…KPI Report Strategic Retailing and Management Course • An understanding Strategic Retailing and the importance of having the right Strategy • Strategic Models Available, Homan’s Model, Pentagon and Triangle (8 ways to win), Strategic Profit Model, Strategic Resource Model (SRM) and the Profit Wedge • The link to improved results for BOTH Organizations • Jim Who?? 14
Measurement Jim Who..??............ • GMROI – Gross Margin Return on Inventory Stock to Sales Ratio • GMROS – Gross Margin Return on Space Merchandise Intensity • GMROL – Gross Margin Return on Labor Service Intensity
The data is invaluable and helps US to drive THEIR Business ‘walking in your customer’s shoes’
A Better Understanding - Retail Turning Triangles into Diamonds
Drives product mix, increases sales and profit. 16
Learnings….EST Retailers Our Customers
• • • • • • • • •
LowEST prices HighEST quality BEST value EasiEST to get to HottEST fashions BroadEST assortment FastEST service FriendliEST staff NicEST layout and design
Bedford
drives our efficiency drives our quality drives our offer drives our delivery drives our NPD drives our NPD drives our inventory levels drives our POS drives our merchandising 17
“Someone calling themselves a customer says they want something called service.�
Diversity
Partnerships
"Holy strawberries Batman! We're in a jam!"
Case Study: Bedford Packaging • Most opportunities are on the East Coast of Australia where the population is concentrated. • Decisions for Australia are made by Head offices on the East Coast. • Companies are seeking preferred suppliers to manage projects Nationally, in every State/Territory. • Specifically, increasing demand for work to be completed in Sydney... Doubling each year for the last 2 years.
The Strategy... • Offer National co-packing solutions. • Seek out blue-chip customer to build credibility. • Invest in modern equipment and allocate capital to invest in new opportunities. • Start to build a portfolio showing experience managing large contracts over multiple sites. • CRM - Customer focussed attitude from senior management down. • Gain 3rd party quality endorsement and gain accreditation to quality standards such as OHS 4801, HACCP and ISO.
Expansion • Discussions with other disability organizations (sheltered employers) Nationally. • Options for expansion – – – – –
Subcontractor Model; Merger(s); Joint Venture; Acquisitions; or Greenfield site(s)
• Create opportunities to bring work directly into our state (SA). • Challenge - finding partners with same attitudes and performance with regard to quality and production.
Partners
Future • Further Automation • National Project Management • Move into Logistics • Sydney base on the East Coast
FAT CHANCE
Thoughts on Partnerships “Snowflakes are one of nature’s most fragile things, but just look what they can do when they stick together.” Vesta M. Kelly “Alone we can do so little; together we can do so much.” Helen Keller “The secret is to gang up on the problem, rather than each other.” Thomas Stallkamp
Courage
What would you attempt to do if you knew you couldn’t fail Unknown
and the results are ...
Bedford Furniture 2006 2011 600% growth Bedford Community Employment (CareerSystems) 2006 2011 1300% growth Bedford Packaging 2006 2011 1% growth
Questions
Session Evaluation Information
SESSION TITLE: Success SESSION CODE: CRP-T1045