Revenue in the Consumer division increased by 1.7 percent, owing primarily to volume growth in the Salad Dressing, Pie, and Beverage categories. In comparison to the previous year, EBITDA fell by R131,3 million (13.3 percent) to R853,9 million. The Groceries cluster delivered pleasing growth, owing to increases in volume and margins across all of its business units. EBITDA for chicken fell significantly due to low prices in an oversupplied market and rising input costs. The emphasis will remain on lowering operating costs and increasing efficiencies. RCL FOODS' total food basket grew faster than the Ask'd industry basket. Groceries delivered another strong year-end result, with EBITDA increasing 23.4 percent to R639,6 million at a margin of 10.8 percent. As a result of improved margins across most categories, Grocery, Pies, and Beverages were far ahead of the prior year. Despite aggressive competitor activity, Aztec's portfolio of number one brands remains firmly established as market leaders in their respective categories. The company's emphasis on doing the basics correctly in terms of customer accounts, ongoing investment in brands, and constant innovating. RCL FOODS increased its market share in a competitive market in 2019. Bobtail 2 in 1, Optimizor, and Feline/Canine Cuisine innovations all performed admirably. The introduction of new channels and routes-to-market is expected to drive additional growth in the coming year. Despite a bakery fire earlier in the year that disrupted service levels, pies performed admirably. The damaged bakery's reconstruction is expected to be completed in September 2019. The focus for the coming year will be on achieving synergies associated with site consolidation and step-change demand. Sales of beverages and food in the Republic of Ireland increased in the first half of the year. YogoBoost, a new product introduced this year, has been well received by customers, and exciting growth is expected in 2020. Super Mageu experienced rapid volume growth from a low base. Chicken's EBITDA fell 54.1 percent to R214,3 million, with a 3.0 percent margin. Despite an 11.2 percent increase in feed costs per ton, the company reported low selling prices. Chicken is one of South Africa's most important exports. Cobb VantressnInternational's performance was hampered by difficulties with Cobb's breed performance. Dumped imports continue to be a significant component of (approximately 25%) and issue for the domestic poultry market. Because of the excess supply caused by dumping, there was little opportunity to recoup higher feed costs. The Consumer division is evaluating strategies to significantly increase competitiveness in the Chicken business unit. RCL FOODS' Freezer-to-Fryer ranges have improved, while polony volumes and market share have returned to pre-Listeriosis levels. To bring more focus and attention to the business, the company has appointed a dedicated business unit head and team. Sugar and milling revenue increased 9.3 percent, owing primarily to volume recovery and commodity-driven price increases. EBITDA was reduced by 129.7% to a negative R84,5 million (2018: R284,1 million at a margin of 5.2 percent ). Sugar continues to place a strong emphasis on ensuring the business's and the industry's long-term viability. This is being accomplished through a concentrated effort to improve cost, productivity, and efficiency. In addition, the company has collaborated with government and industry bodies to address industry-wide issues. Animal Feed generated R295,8 million in EBITDA, a 7.4 percent decrease at a margin of 5.4 percent. Molatek's performance reflected increased volume and a more favorable sales mix. Animal Feed's future growth will be driven by a customer-centric business culture and product innovation. Mill bake (MILLING AND BAKING) performed admirably, increasing both volumes and margins. The revenue of the Mill bake business unit increased by 8.4 percent to R3 953,2 million. Despite higher fuel prices, cost-cutting initiatives gained traction. Mill bake (MILLING AND BAKING) performed admirably, increasing both volumes and margins. The revenue of the Mill bake business unit increased by 8.4 percent to R3 953,2 million. Despite higher fuel prices, cost-cutting initiatives gained traction.The Group has had a difficult fiscal year in 2019. Given the challenges in Sugar and the decline in cash resources at year's end, a strong emphasis is being placed on cash management through working capital management and tighter control over capital expenditures. Despite the decline in profitability, the Group has kept its balance sheet strong while reducing its long-term debt. South Africa's economy remains under pressure, with growth of 0.5 percent forecast for 2019. South Africa's inflationary pressures have been relatively mild, with the Consumer Price Index (CPI) falling from 5.2 percent to 4.0 percent. In July 2018, the ERP system for the Specialty business unit was successfully implemented. With the Nelspruit, Bushbuckridge, Tzaneen, and Gauteng bakeries, the project to consolidate all bakeries within the Baking operations onto a single Syspro instance has progressed well. The amount of cash generated by operations fell by 55.4 percent to R796,7 million. Due to an increase in working capital requirements, the cash conversion ratio fell to 52 percent (from 87 percent in 2018). Over the year, cash generated by investing activities increased by R245,4 million. Over the previous period, the Group increased its working capital by R million. Biological assets increased by R59,1 million (7.3 percent) due to higher feed costs year on year, which drove up the value of live birds. In 2019, a total of R238,1 million in receivables were received late after the year-end cut-off (2018: R542,7 million) The decrease in trade and other payables was primarily due to a decrease in SASA short-term funding. The South African Treasury has announced a reduction in the amount that Sowetan Bank is required to pay. The figure was reduced from R1 097,0 million in the previous package to R2 350,0 million in the new package. This compares to an R1 million payment due in February 2019. Property, plant, and equipment fell by R356,3 million, while capital expenditure fell by R1 130,9 million. Construction of the Rustenburg waste-to-value plant, which is part of the Group's overall sustainability strategy, was a major expenditure (R173,9m).RCL Foods has launched a new initiative to motivate employees to learn more. The LEARN MORE COLLEGE initiative aims to provide opportunities for growth for our people through targeted learning programs. RCL FOODS feeds more people more frequently than ever before. In the 2019 Carbon Disclosure Project Climate Change Survey, RCL FOODS maintains its leadership position. The annual survey polls the world's leading companies on how they manage the effects of climate change, water security, and forests. For the second year in a row, RCL topped the South African Food & Beverage sector.FURTHER INSTRUCTIONS:Having read the RCL Foods extracts, compile a report to the Board addressing the following aspects in implementing a performance management system to drive RCL Foods strategy: Use the outline below to Organize.PLANNING FOR IMPROVEMENTThe organization's management appears to be convinced that there is a strong need for the implementation of performance management across the organization and that decisions made in any area of Supply Chain have a direct relationship to the company bottom line.a. Using the supply chain KPI relationship map, illustrate the impact of any seven (7) supply chain decisions on the profitability of the organization. b. Outline any three (3) types of waste categories and provide a typical example for each waste type relevant for the case study that management of this organization needs to be aware of and act for improvement as and when required.

Question

Revenue in the Consumer division increased by 1.7 percent, owing primarily to volume growth in the Salad Dressing, Pie, and Beverage categories. In comparison to the previous year, EBITDA fell by R131,3 million (13.3 percent) to R853,9 million. The Groceries cluster delivered pleasing growth, owing to increases in volume and margins across all of its business units. EBITDA for chicken fell significantly due to low prices in an oversupplied market and rising input costs. The emphasis will remain on lowering operating costs and increasing efficiencies. RCL FOODS' total food basket grew faster than the Ask'd industry basket. Groceries delivered another strong year-end result, with EBITDA increasing 23.4 percent to R639,6 million at a margin of 10.8 percent. As a result of improved margins across most categories, Grocery, Pies, and Beverages were far ahead of the prior year. Despite aggressive competitor activity, Aztec's portfolio of number one brands remains firmly established as market leaders in their respective categories. The company's emphasis on doing the basics correctly in terms of customer accounts, ongoing investment in brands, and constant innovating. RCL FOODS increased its market share in a competitive market in 2019. Bobtail 2 in 1, Optimizor, and Feline/Canine Cuisine innovations all performed admirably. The introduction of new channels and routes-to-market is expected to drive additional growth in the coming year. Despite a bakery fire earlier in the year that disrupted service levels, pies performed admirably. The damaged bakery's reconstruction is expected to be completed in September 2019. The focus for the coming year will be on achieving synergies associated with site consolidation and step-change demand. Sales of beverages and food in the Republic of Ireland increased in the first half of the year. YogoBoost, a new product introduced this year, has been well received by customers, and exciting growth is expected in 2020. Super Mageu experienced rapid volume growth from a low base. Chicken's EBITDA fell 54.1 percent to R214,3 million, with a 3.0 percent margin. Despite an 11.2 percent increase in feed costs per ton, the company reported low selling prices. Chicken is one of South Africa's most important exports. Cobb VantressnInternational's performance was hampered by difficulties with Cobb's breed performance. Dumped imports continue to be a significant component of (approximately 25%) and issue for the domestic poultry market. Because of the excess supply caused by dumping, there was little opportunity to recoup higher feed costs. The Consumer division is evaluating strategies to significantly increase competitiveness in the Chicken business unit. RCL FOODS' Freezer-to-Fryer ranges have improved, while polony volumes and market share have returned to pre-Listeriosis levels. To bring more focus and attention to the business, the company has appointed a dedicated business unit head and team. Sugar and milling revenue increased 9.3 percent, owing primarily to volume recovery and commodity-driven price increases. EBITDA was reduced by 129.7% to a negative R84,5 million (2018: R284,1 million at a margin of 5.2 percent ). Sugar continues to place a strong emphasis on ensuring the business's and the industry's long-term viability. This is being accomplished through a concentrated effort to improve cost, productivity, and efficiency. In addition, the company has collaborated with government and industry bodies to address industry-wide issues. Animal Feed generated R295,8 million in EBITDA, a 7.4 percent decrease at a margin of 5.4 percent. Molatek's performance reflected increased volume and a more favorable sales mix. Animal Feed's future growth will be driven by a customer-centric business culture and product innovation. Mill bake (MILLING AND BAKING) performed admirably, increasing both volumes and margins. The revenue of the Mill bake business unit increased by 8.4 percent to R3 953,2 million. Despite higher fuel prices, cost-cutting initiatives gained traction. Mill bake (MILLING AND BAKING) performed admirably, increasing both volumes and margins. The revenue of the Mill bake business unit increased by 8.4 percent to R3 953,2 million. Despite higher fuel prices, cost-cutting initiatives gained traction.The Group has had a difficult fiscal year in 2019. Given the challenges in Sugar and the decline in cash resources at year's end, a strong emphasis is being placed on cash management through working capital management and tighter control over capital expenditures. Despite the decline in profitability, the Group has kept its balance sheet strong while reducing its long-term debt. South Africa's economy remains under pressure, with growth of 0.5 percent forecast for 2019. South Africa's inflationary pressures have been relatively mild, with the Consumer Price Index (CPI) falling from 5.2 percent to 4.0 percent. In July 2018, the ERP system for the Specialty business unit was successfully implemented. With the Nelspruit, Bushbuckridge, Tzaneen, and Gauteng bakeries, the project to consolidate all bakeries within the Baking operations onto a single Syspro instance has progressed well. The amount of cash generated by operations fell by 55.4 percent to R796,7 million. Due to an increase in working capital requirements, the cash conversion ratio fell to 52 percent (from 87 percent in 2018). Over the year, cash generated by investing activities increased by R245,4 million. Over the previous period, the Group increased its working capital by R million. Biological assets increased by R59,1 million (7.3 percent) due to higher feed costs year on year, which drove up the value of live birds. In 2019, a total of R238,1 million in receivables were received late after the year-end cut-off (2018: R542,7 million) The decrease in trade and other payables was primarily due to a decrease in SASA short-term funding. The South African Treasury has announced a reduction in the amount that Sowetan Bank is required to pay. The figure was reduced from R1 097,0 million in the previous package to R2 350,0 million in the new package. This compares to an R1 million payment due in February 2019. Property, plant, and equipment fell by R356,3 million, while capital expenditure fell by R1 130,9 million. Construction of the Rustenburg waste-to-value plant, which is part of the Group's overall sustainability strategy, was a major expenditure (R173,9m).RCL Foods has launched a new initiative to motivate employees to learn more. The LEARN MORE COLLEGE initiative aims to provide opportunities for growth for our people through targeted learning programs. RCL FOODS feeds more people more frequently than ever before. In the 2019 Carbon Disclosure Project Climate Change Survey, RCL FOODS maintains its leadership position. The annual survey polls the world's leading companies on how they manage the effects of climate change, water security, and forests. For the second year in a row, RCL topped the South African Food & Beverage sector.FURTHER INSTRUCTIONS:Having read the RCL Foods extracts, compile a report to the Board addressing the following aspects in implementing a performance management system to drive RCL Foods strategy: Use the outline below to Organize.PLANNING FOR IMPROVEMENTThe organization's management appears to be convinced that there is a strong need for the implementation of performance management across the organization and that decisions made in any area of Supply Chain have a direct relationship to the company bottom line.a.        Using the supply chain KPI relationship map, illustrate the impact of any seven (7) supply chain decisions on the profitability of the organization. b.       Outline any three (3) types of waste categories and provide a typical example for each waste type relevant for the case study that management of this organization needs to be aware of and act for improvement as and when required.

Accepted Answer

PLANNING FOR IMPROVEMENTRCL Foods recognizes the crucial need for implementing a performance…