Network Planning & Optimisation

Route Trade Survey & Panel Discussion

Simon Coates

Director

Portland Group

(An Infosys Co.)

Sherif Hassanein

Group Director

Supply Chain

Manassen

Guy Romeo

Chief Logistics

Officer

Parmalat

Mike Robbins

Oceania Physical

Logistics Manager

Nestle

Simon Coates

Now part of Infosys Portland continues to deliver supply chain and procurement

solutions to many of Australia’s leading organisations

Who is Portland?

Simon Coates

This survey was designed in conjunction with the AFGC to raise awareness of route

trade supply chain opportunities against a background of Woolworths and Coles

dominance

• The grocery channel dominates sales volume for Australian

FMCG organisations - Woolworths and Coles represent 71%

of the market

• Metcash is considered a significant 3rd player, distributing to

IGA plus Franklins and 7/11 (both in ‘other’)

• Aldi and Costco represent a small but notably growing

influence

• The ‘Route Trade’ comprises circa 11% of the total market,

depending on the definition applied

• Management effort and time is focused on Woolworths &

Coles agendas

• There is opportunity to improve route trade supply chains

• This survey was developed in this context as a collaboration

between Portland Group and the AFGC

Background to the Survey

Retail Grocery Market Share

Background

Source: IBISWorld G5111 - Supermarkets and Other Grocery Stores in Australia

Simon Coates

20 of Australia's leading FMCG organisations participated in the survey. In addition,

senior supply chain executives from 11 of these companies were interviewed to obtain

greater insights

• Kelloggs

• Bulla Dairy Foods

• Red Bull

• Fonterra Brands Australia

Pty Ltd

• Ferrero Australia Pty Ltd

• Tip Top, A Division of

George Weston Foods

• Treasury Wine Estates

• Independent Distillers

• Nestle Australia

• Schweppes

• Johnson & Johnson Pacific

• Campbell Arnotts

• SCA

• Coopers Brewery

• PepsiCo

• Parmalat

• Sugar Australia

• Simplot

• Unilever

• Lion

• Manassen

Survey Participants Survey Participants Revenue

Participants

Simon Coates

What is Route?

Definitions are challenging and vary by business but this would be a typical

picture............

Simon Coates

Route Trade Category Split

The route trade is more important for some. Beverages including hot, cold and milk

dominate volumes distributed through the route channel

Sources: BIS Shrapnel – Route Trade in Australia, 3rd edition

Simon Coates

Growth

Despite many factors weighing against the route trade, 93% of respondents believe that

volume in this channel will continue to grow

Simon Coates

Improving Route Trade Supply Chain Performance

Understanding true cost to serve and better managing freight and warehouse cost are

high on the improvement agenda for most organisations

Simon Coates

Collaboration

Collaborative solutions are already in play with organisations seeking to understand

where shared route solutions may deliver value and what management model is needed

to support execution

Simon Coates

Panel Discussion

We have a great panel with “truck loads” of practical leadership experience for you to

leverage with your questions after some initial introductions……

Simon Coates Director

Portland Group

(An Infosys Co.)

Sherif Hassanein Group Director

Supply Chain

Manassen

Guy Romeo Chief Logistics

Officer

Parmalat

Mike Robbins Oceania Physical

Logistics Manager

Nestle