Foodstuffs South Island Lim ited Annual Report 2011 Sum m ARy ...

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Chairman’s Review (continued)
this group going from strength to
strength over the last few years.
Other projects undertaken over the
last year included the refurbishment
of Four Square Lawrence,
Murdoch Manufacturing’s canopy
extension, the chiller/ freezer facility
in the Invercargill warehouse,
refurbishment of our Papanui main
office and IT department and various
other minor refurbishments.
Foodstuffs South Island (Properties)
continually strives to deliver energy
efficient practices within our buildings
to reduce our carbon footprint and
lessen our retails Members’ use
of electricity. These areas of focus
continue to be on:
• CO refrigeration
2
• Rain water retention
• Lighting controls
• Double glazing
• Increased windows / sky lights
• Fluorescent & LED lighting
• Heat reclaimation.
The year ahead will be a very busy
period for the property team as they
will oversee amongst other projects
the construction of our new Hornby
distribution centre (DC). This DC will
have new state-of-the-art features and
will strive to be the most efficient and
effective DC in New Zealand, covering
38,000m2 and including greener energy
and lightning systems, 11 metre high
racking and enhanced staff facilities.
Construction work is expected to
commence late 2011 for completion in
2012. Other major projects earmarked
will be the rebuilding of New Worlds
Kaiapoi, St Martins and Redcliffs,
which had to be demolished due to
earthquake damage.
Wholesale operations &
procurement
Our Wholesale Operations and
Procurement division have
concentrated on further developing
Foodstuffs Inbound (FIN) which
currently has 102 suppliers with a
further 20 scheduled to commence
during the April / May period.
The reported year was also the
10th anniversary of our Vendor
Management Inventory (VMI)
Procurement Programme. Currently
we have 77 vendors on board
representing 68% of total purchase
order volume into our distribution
centres, representing 62% of total
product SKUs. Over the years, this
programme has improved service
levels, inventory management and
enhanced our relationship with our
suppliers.
Administrative
After reviewing our submissions,
The Reserve Bank confirmed late in
2010 that Foodstuffs South Island
Ltd would not be classified as a Non
Bank Deposit Taker (NBDT). This
was very positive news as complying
under the Act would have been a
major imposition on our Company
as we would have been required to
make significant changes to the way
we operate.
Once again we have seen a significant
lowering of both claim numbers and
costs within the ACC Accredited
Employers Partnership (AEP)
program. These results are pleasing
and can be ascribed to our continuing
focus on case management practices
and on claims handling.
During the reported year, we tendered
our company medical insurance
to various medical providers. After
reviewing various providers we
accepted the tender from Southern
Cross which resulted in savings to
the Co-operative whilst maintaining
the same coverage.
Summary
To summarise, I would like to reiterate
that our Co-operative has once again
delivered a strong financial result for
the 2010/11 financial year.
Our Co-operative and Members are
positive and in good heart even after
the trials and tribulations we faced
during the year under review.
We now know that we are well
equipped to face future challenges;
we are strong, resilient and well
positioned for the future.
On behalf of the Board, I would like
to thank all our Executive, Staff,
Members, suppliers and contractors
whose help assisted us through this
turbulent year!
Robin Brown
Chairman