How To Achieve Business Growth

Sally Powell – General Manager Strategy Steve Jones – Chief Operating Officer

G’dayUSA

• Planning

• Walking in your Customer’s Shoes

• Diversification

• Partnerships

• A new way of thinking

Growth ?

“You Can Have Any ColorAs Long As It Is Black”

Henry Ford

200K

1,900K1,510K

470K

4,820K

6,930K

3,640K

Australian Population by State

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

Strategy

Environment

Structure Climate People Results

Systems

Management Style

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 Sales• Our GP Our Budget• Our NP• Our Inventory Levels

• Not to say we weren’t Customer Focused…1/2 of the Chain

• 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??

Paradigm Shift

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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’

Measurement

16

A Better Understanding - RetailTurning Triangles into Diamonds

Drives product mix, increases sales and profit.

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Learnings….EST Retailers

• LowEST prices drives our efficiency• HighEST quality drives our quality• BEST value drives our offer• EasiEST to get to drives our delivery• HottEST fashions drives our NPD• BroadEST assortment drives our NPD• FastEST service drives our inventory levels• FriendliEST staff drives our POS• NicEST layout and design drives our merchandising

Our Customers Bedford

“Someone calling themselves a customer

says they want something called service.”

Diversity

Partnerships

"Holy strawberries Batman! We're in a jam!"

• 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.

Case Study: Bedford Packaging

• 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.

The Strategy...

• 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.

Expansion

Partners

• Further Automation

• National Project Management

• Move into Logistics

• Sydney base on the East Coast

Future

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 Furniture2006 2011 600% growth

Bedford Community Employment (CareerSystems)

2006 2011 1300% growth

Bedford Packaging2006 2011 1% growth

Questions

Session Evaluation Information

SESSION TITLE: Success

SESSION CODE: CRP-T1045