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Moving to Hornby - 'the transition plan'
Foodstuffs South Island

The construction progress of our Hornby ambient distribution centre extension is now well on the way with steel fabrication, roofing and some of the concrete floor placing evidence of this. The new distribution centre offices are now complete with occupation taking place. Our transition target date expectation remains on track as being August/September 2014.

As advised in our last communication to you our intention is to build initial stock efficiently and effectively into the new Hornby DC over a period of some estimated 6 weeks following the handover of the building in August 2014. Throughout this time we will maintain the continuity of the expected high levels of supply service to member's retail stores. This will be achieved through the careful planning and joint execution of the Hornby inventory build along with the well managed and optimised Papanui inventory leading up to this time. The following will again summarise our transition strategy;

  • Upon physical receipt of the initial inventory build order for the Hornby DC, supply to members will continue from the residing inventory at Papanui. For the transition of inventory in Papanui to Hornby, systems have been developed to trigger a move of supply to Hornby as soon as the last carton of an article runs out in Papanui. This strategy will minimise the impact of physically relocating inventory and reducing cost.
  • Buyers will have a global view of inventory during this transition time combining both the awaiting inventory in Hornby and the residing inventory in Papanui.
  • A plan will be introduced to address any slow inventory in Papanui that might not transition in a timely manner. Specific reporting for Papanui inventory run down will be introduced.
  • No further purchase orders will be received into Papanui post the initial Hornby purchase orders.
  • Members will notice little difference in supply as they receive orders from both DC's today.

Our procurement project team will provide you with a projected/indicative (refer DRAFT order) purchase order/s for the Hornby DC in the early weeks of April 2014. The purpose of this is to allow your business time for the necessary forecasting and planning requirements in order to meet our 'delivered in full' expectations. The DRAFT order/s will be derived from a combination of AWS, a consideration of days stock cover we want by A,B,C article grouping and will have allowance to maximise efficiencies for the rounding up to layers and full pallets wherever this is possible. This might almost be viewed like the Christmas seasonal build we execute with you each year but on a bigger scale. So what part do we want you to play when you receive this DRAFT order from our team?

  • We want you to carefully review the detail of DRAFT order and provide prompt feedback. Particular attention should be paid to any articles that may be, or are to be discontinued and any seasonal articles that would be inappropriate to build to the projected order levels. Promotion volumes should also be taken into consideration.
  • You must communicate the DRAFT order with your wider business in order to plan the execution of delivery with us. We are happy to discuss such options as palletised FCL's, direct delivery from NDC's and any other options that would mutually benefit our joint endeavours.
  • We will require your acknowledgement from the instructions you will receive re your DRAFT order from our team. These instructions will be clear with contact and timing details. Your cooperation is both expected and appreciated.

We are unable at this point in time to advise the exact delivery dates/days/times for the confirmed purchase order we intend to place with you as the build program and organisational timetable will determine this. We can assure you with confidence that the DRAFT order will be closely matched to that we will confirm and communicate to you. It is expected that we will advise the confirmed order to you at least 4 weeks prior to delivery.

In addition to the Papanui transition to Hornby we are also eager to centralise the slower selling articles we are identifying that currently reside in the Dunedin high volume regional DC (RDC). It is our intention to integrate or link this centralisation as part of the overall transition plan. Specific information in relation to this will be addressed directly with the suppliers of the articles identified. This will bring further mutual efficiencies in our supply chain and importantly in service to our members.

We will take yet another opportunity to remind and request that your company and key staff are contactable through the Foodstuffs Supplier Relationship Management (SRM) contact data base. If you are not yet set up in SRM please visit http://suppliers.foodstuffs.co.nz to do so as soon as possible as our communication will come from the appropriate contacts held here.

Finally we look forward to the intensity of dialogue that our businesses will be engaging in over the coming months as we move into a transition ready state. You are encouraged to commence this with us as soon as possible after receiving the DRAFT order information in April. The key contacts are referenced for your information below.

Name Position Telephone Email
Mike Scofield Wholesale Procurement & Systems Manager (03)353 8919
021 878631
mike.scofield@foodstuffs-si.co.nz
Matthew Shaw Wholesale VMI Coordinator (03)353 8664
021 2430961
matthew.shaw@foodstuffs-si.co.nz
Dave Pawson Wholesale Merchandise Manager (03)353 8628
021 906204
david.pawson@foodstuffs-si.co.nz
Kris Lancaster Logistics Operations Manager (03)353 8624
021 2206605
kris.lancaster@foodstuffs-si.co.nz
John Mullins GM Supply Chain (03)353 8604
021 838378
john.mullins@foodstuffs-si.co.nz

 

 

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