Super expects R500m boost for turnover
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Deal clinched with leading food group
Industrial Reporter
LOGISTICS and supply chain management company Super Group's deal with a leading food firm is expected to add at least R500m to turnover in five years.
The agreement with the recently formed Unilever Best Foods Robertsons (UBR) will see the group manage more than 13million cases of finished goods, from 10 production points for delivery to 10 000 retail outlets.
Super Group executive chairman Larry Lipschitz said globally effective supply chain management had become a "critical success factor" in most business operations. By integrating supply chain management into basic business planning, companies reaped "substantial" cost savings and improved customer service.
The deal saw the Super Group acquire three UBR distribution facilities and establish new centres in Bloemfontein and Port Elizabeth. Lipschitz said this deal would strengthen its position as the dominant supply chain service provider within the fast moving consumer goods sector.
Super Group was finalising contracts with two other "bluechip" customers for the management of their supply chains.
The group has secured periodic payments totalling more that R5bn from its supply chain contracts over the next five years.
Super Group supply chain clients include Goodyear, ABI, Delta Motor Corporation, Engen, Fattis & Monis, L'Oreal, Tastic Rice, SA Breweries, Simba and Sappi.
UBR logistics director Ged Mackell said Super Group had a long relationship with the previous Robertsons business. His company believed it would continue to provide the highest level of customer service.
Super Group was close to disclosing whether it would take over some DNA Supply Chain businesses. DNA Supply Chain investor relations manager Karen Bell was reluctant to give details as her group was trading under a cautionary relating to the proposed takeover. Bell said the group would make an announcement when DNA Supply Chain posted interim results.
She made it clear that the Super Group was not looking to buy the whole of DNA Supply Chain but only certain DNA businesses.
It has been confirmed that the liquidation of DNA Skonkwane Supply Chains, DNA Supply Chain's black empowerment venture, is going ahead.
The JSE Securities Exchange SA published a notice that DNA Supply Chain had not released half-year results to December on time. Bell said the results were late as the Super Group was still doing a due diligence examination. If the results were published it would contravene the cautionary notice the two groups were trading under.
Super Group closed 20c, or 3,51%, down at 550c with 77056 shares traded in 52 deals.
Apr 23 2003 06:58:04:000AM Larry Claasen Business Day 1st Edition
Wednesday
23 April 2003
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