Bidcorp: a world class international foodservice presence.

We purchase from thousands of domestic and international suppliers. These suppliers include large corporates selling branded products, to the own brand manufacturers which produce and supply Bidfood’s own brand range. In order to meet growing demand for locally sourced products, we increasingly source specialty, fresh and seasonal products from small to mid-sized producers. As a wholesaler of food and non-food items we may be exposed to liability claims.

How we manage this

We take our responsibility for transparency and efficiency in our supply chain very seriously. We ensure that our practices reflect the highest standards of integrity, respect and safety for supplier and other partners.

We only engage with suppliers who meet our standards, respect our values and would provide the transparency required should an evaluation of their environment be required. No single source of supply individually accounts for a significant source of purchases made by a particular Bidfood operation.

Most of our suppliers are globally recognised and reputable manufacturers, certified to best food and safety standards. Bidcorp conducts rigorous ad hoc supplier assessments to ensure compliance with food quality standards and importantly with ethical work place practices. We have global group liability insurance policies in place.

Back to the business model

Foodservice distribution is characterised by high inventory turnover at relatively low Profit margins. Product availability at the right quality, right quantity and right price is never guaranteed. Profit may be negatively affected by product cost volatility.

How we manage this

We typically do not enter into long-term customer agreements, therefore our businesses are able to react quickly to changes in product pricing.

We adopt a decentralised model where local purchasing decisions are based on the quality and price of the local product, and according to customers’ ever-changing needs.

We are agile enough to respond to our customers quickly and easily.

Products packaged under our Bidfood own brands have either been contract manufactured and packaged according to our specifications, or processed in-house and packed in line with customers’ needs.

How we respond

For in-house manufacturing, we engage experienced production teams, who have the knowledge and expertise to implement best practice food processing standards.

For contract manufacturing quality assurance teams certify the manufacturing and processing plants where these products are packaged, enforcing global quality control standards and assuring the quality of all supply sources to meet our rigorous requirements.

Product recall processes have been revised to include stricter protocols around customer contact and control of affected stock, using internal IT systems to facilitate tracking and impact of product reach. Specialty product recall insurance policies are being implemented in countries where in-house processing is prevalent.

Inherent to the industry, outbreaks and contaminations are experienced from time-to-time. Industry-wide awareness relating to food safety management has been heightened. Bidfood has always held food safety as a top priority but has used this opportunity to engage with our suppliers, customers and end consumers throughout the group to ensure the food safety best practices are adopted.

How we respond

Strengthening positive and constructive relationships with governments and other industry players in order for us to anticipate and respond to regulatory and policy developments.

There is a strong drive to deliver on transparent and prompt communication with stakeholders along the full supply chain, as well as proactive customer engagements and engaging food safety specialists throughout the group, to ensure the highest standards are implemented.

Extreme weather patterns and environmental degradation have the potential to significantly impact the entire value chain, from production through to distribution and sales.

How we respond

We are serious about the impact and role we have to play in reducing our impact on climate change. Each of our businesses have engaged with local stakeholders and have set targets and goals to minimise emissions and impact on their environment.

At a group level, quarterly monitoring of the operational ESG reports is reviewed and improvements monitored. Best practice is rolled out among our businesses as quick wins for each to minimise their impact.

Inclusion of sustainability targets in each operation’s annual strategy is in place. We engage supportively with our businesses sharing best practice to ensure we are continually improving our emissions efficiencies thereby diminishing our impact on the environment.

Back to the business model

Compliance is non-negotiable. We face a broad range of ever-changing legislative and regulatory requirements that are managed by each local teams, being positioned close to the specific and relevant authorities. However, the cost of compliance remains significant, and increasing.

How we respond

We invest in assurance teams, compliance tools and engage outsourced professionals to guide and direct us in our efforts to promote the highest levels of compliance to food quality and health and safety standards in the market. Quarterly reporting of material non-compliances against the group standards is monitored by the divisional audit and risk committees, in line with the Bidcorp code of ethics and as a quarterly management representation.

Entity level targeted training is rolled out, appropriate policies, systems, procedures and reporting is in place. Appointment of skilled technical resources and consultation with subject matter experts where required ensures that Bidcorp is operating within the legal and regulatory boundaries in each geography globally.

http://www.bidcorpgroup.com/code-of-ethics.php

The development of robust infrastructure is key to creating the capacity demanded by growth ahead of the demand curve.

How we respond

Growth requires that depots be large enough to be economically viable, yet small enough to ensure we remain agile and customer focused. Through timely investment we are equipped and able to facilitate growth and capitalise on market opportunities as they arise.

To remain ahead of the demand curve, we invest in assets with state-of-the-art sustainable capabilities, all designed to lessen our environmental impact and improve our operating efficiencies.

Increasing fuel and energy costs drive up the cost of servicing the customer, increasing product prices and distribution costs. In addition, higher fuel costs often negatively affect consumer confidence and discretionary spending, dampening demand for food consumed out-of-the-home.

How we respond

Continued investment into the latest technology, energy and transportation equipment to improve operating efficiencies. We have a successful track record of proactive engagement and problem-solving with our customers to identify mutually beneficial solutions. This stands us in good stead with customers, strengthens relationships and builds trust.

Labour retention, recruitment of the right skillsets and wage pressures are key drivers in higher operating costs over the past year. Most significantly the impact was felt with the scarcity of drivers across Europe, the UK and Australasia.

How we respond

The changing dynamics of labour in many jurisdictions around the world is clearly evident, and therefore it is key for the group to ensure continued attraction, retention and motivation of the existing entrepreneurial workforce. With escalating employee costs a higher level of management focus is required to ensure that we continue to achieve our operational and strategic objectives. While cost management and efficiencies play a critical role, suitable and relevant incentivisation remains an important motivator.

Warehouse and driver, recruitment and retention are global issues but local challenges. It is vital to recognise the importance of these roles and support them with tools to enable the best possible job. We invest in driver training programmes while providing incentives and better work environments. With onboard tracking and monitoring systems we improve driver safety.

Back to the business model

Our facilities and our customers’ businesses may be subject to extreme, and occasionally prolonged, adverse weather conditions resulting in disruption to normal operations.

How we respond

Robust disaster recovery plans are established in all businesses. In the event of business interruption, our decentralised network of smaller depots allows us to support any business impacted by adverse weather conditions until they are able to resume normal operations.

We have the appropriate global insurance policies in place to protect our assets and address business interruption risk.

We are highly reliant on technology, embracing the efficiencies, insights and improved service levels it provides to effectively respond to our customers’ needs. We use software and other technology systems to generate orders, systems to create efficiencies in depots, to load and route trucks, to procure, to monitor and to manage our business on a day-to-day basis. We use our ecommerce platform, CRM tools, social networking and other online platforms to connect with our employees, business partners, suppliers and customers.

How we respond

Bidfood innovates, develops and uses market differentiating tools and systems to ensure we remain at the forefront of purchasing, order placement, warehouse management, efficiencies in loading trucks, storage space optimisation and optimal ecommerce sales and customer service engagement. Our decentralised model ensures that we do not have global dependency on a single IT system but are locally independent.

We have invested in and continue to develop our ecommerce technology, CRM functionality and Supplier Turn-in-Order App all the while ensuring the implementation of best of breed cybersecurity, business continuity and disaster recovery planning.

Back to the business model

Reliance on our IT networks and systems to process, transmit and store electronic transactions is pervasive across all operations. Our operations gather, store and transmit a wide variety of information, including customers’ and suppliers’ information, employee private information and financial and strategic information about Bidfood globally.

How we respond

We have rolled out a group-wide rapid response plan and implemented measures to protect our data and to prevent cybersecurity breaches and incidents. Continuous vigilance in the face of potential attack is at the heart of our cyber risk management programme. Ongoing training and awareness campaigns are implemented across the group to equip our teams with the information and tools to recognise and respond to a potential attack. Insurance cover is in place to offset potential losses from some cyber risks.

Business information security controls implemented include, but are not limited to: malware protection, network security, incident management, disaster recovery planning and back-up strategies, IT general control audits, and periodic information security reviews.

Increasingly tech focused delivery companies are focusing on the foodservice market, initially in the consumer delivery space but with an eye on the foodservice wholesale model, threatening disruption. Competition from these disruptive market entrants have threatened to take market share.

How we respond

Bidcorp remains committed to our core foodservice business, to maintaining the world-class service and efficiencies ethic, which our customers have come to expect. We have seen significant success in the adoption of our value-over-volume strategy, focusing on the high margin, high service customer.

We remain vigilant watching market trends and are agile enough to implement timely interventions, to respond to our customers changing expectations and needs.

We are focused on what we are good at: namely, ensuring a shared passion among our stakeholders about food, service and easy to use, intuitive technological solutions to develop a mutually beneficial customer relationship.

Differentiation in the foodservice industry is achieved through ongoing close contact with customers, positioning competitive pricing, with the ability to provide a full basket of products and consistently delivering promptly and accurately.

How we respond

Our success in the roll out of our metro strategy is as a result of the establishment of conveniently located warehousing solutions, specifically enabling a faster, better last-mile quick turnaround response to customer orders.

Through the implementation and effective use of our ecommerce solutions to take and anticipate customer orders; the offer of regular and quick turnaround deliveries, and a broad range of high-quality competitively priced products, Bidfood aims to differentiate themselves on the last-mile service excellence.

Bidcorp’s ability to operate sustainably depends largely on the experience and skills of its management team and their succession plans. Any senior management departures or unavailability (due to death, injury, illness or other reasons) or technically skilled worker shortages could adversely affect Bidcorp’s operational performance.

How we respond

With a robust and significant global footprint, international opportunities are provided to those eager for career progression. Skillsets existing across the group could be used in other group businesses should the requirement arise. Experienced management skills within the group are demonstrated through continued annual growth. Each management team is encouraged to grow and mentor high-potentials within their team to ensure a strong succession plan exists.

Back to the business model

Some customers purchase via third party GPOs in order to reduce prices paid on foodservice orders, which then in turn results in the GPOs placing pricing pressure on us. Some GPO memberships have recently included smaller, independent restaurants.

How we respond

We offer innovative, real-time engagement with our customers through our bespoke industry leading ecommerce solutions. We are small enough to be agile and meet the most demanding requirements; but global enough to source even the most hard to and products. Fundamental to our success is the strength of the real personal human connection we strive to develop with our customers which generates loyalty and appreciation for the personalised service excellence which sets us apart.

Bidcorp will selectively pursue opportunities to supplement organic growth with strategic acquisitions, both bolt-on and new country investments. These acquisitions present opportunities for growth and increases the scale of Bidcorp’s operations.

How we respond

A global executive management team provides oversight of all transactions. We ensure full and proper due diligence and sovereign risk assessment is completed before any acquisition is nalised. New country acquisitions are conducted under the oversight of the group executive drawing on the expertise of all the group management where required.

In line with the decentralised Bidcorp governance framework bolt-on acquisitions are conducted by local management who are close to, and understand their local markets.

Bidcorp is a geographically diverse business exposed to changes and instability affecting the global economic environment.

How we respond

We are committed to the jurisdictions in which we operate. Our local teams are best placed to focus on what we can control, delivering the right food, at the right price, at the right time, to the right customers.

Through our globally diverse decentralised footprint, although exposed to high-risk macro environments, local teams continue to manage their local environments and grow in each of our markets.

BPC provides a solid backup plan should disaster strike and support is required to find alternate product supply. This is the advantage of being a part of the global team.

Own brand EasiYo, Bidfood New Zealand.