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measure and monitor the processes and report results ... - Refresco.de

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A balanced customer base<br />

<strong>Refresco</strong> invested in streng<strong>the</strong>ning its relationships with<br />

national <strong>and</strong> international retail customers in 2010. Combining<br />

<strong>the</strong> production of private label products with <strong>the</strong> co­production<br />

of A­br<strong>and</strong>s gives <strong>the</strong> customer, as well as <strong>Refresco</strong>, better<br />

control over <strong>the</strong> cost price of <strong>the</strong> final product. The coming<br />

years offer a window of opportunity to step up production <strong>and</strong><br />

distribution for both our retail <strong>and</strong> our A­br<strong>and</strong> customers.<br />

Investments linked to this ability to combine private label<br />

production with production for A­br<strong>and</strong> companies are now<br />

paying off. Increased consumer interest in private label products<br />

has led to even closer cooperation with our international<br />

retail customer base. Development of “value for money” alternatives<br />

has played a leading role in broa<strong>de</strong>ning <strong>the</strong> shelf space<br />

for private label. <strong>Refresco</strong> businesses are increasingly expected<br />

to offer a complete supply chain solution instead of only <strong>the</strong><br />

final product. This fits in perfectly with our business mo<strong>de</strong>l,<br />

in which <strong>the</strong> emphasis is on long­term relationships with all<br />

our stakehol<strong>de</strong>rs, including customers <strong>and</strong> suppliers.<br />

In line with our strategy, we will remain focused on producing<br />

soft drinks <strong>and</strong> fruit juices in all kinds of one­way packaging<br />

types for two types of customers in Europe – manufacturing<br />

private label for retailers <strong>and</strong> co­manufacturing for A­br<strong>and</strong>s.<br />

We will stay focused on our existing regions <strong>and</strong> adjacent<br />

countries, where private label is a meaningful <strong>and</strong>/or growing<br />

segment in our category.<br />

A sustainable supply chain<br />

In many markets, our profile in relation to our customer base has<br />

become much more supply chain oriented. Besi<strong>de</strong>s managing<br />

cost price, quality <strong>and</strong> <strong>de</strong>livery performance, we are increasingly<br />

engaged in optimizing <strong>the</strong> total supply chain. We were able<br />

to streng<strong>the</strong>n our business by setting up <strong>de</strong>dicated programs<br />

to reduce costs <strong>and</strong> by looking for acquisitions <strong>and</strong> organic<br />

investments that would make <strong>the</strong> business grow.<br />

The acquisition of SDI offers <strong>the</strong> company a more balanced<br />

risk profile from a purchasing perspective <strong>and</strong> enables us to<br />

leverage on purchasing <strong>and</strong> manufacturing synergies. It gives<br />

<strong>Refresco</strong> in Germany <strong>the</strong> opportunity to enter <strong>the</strong> carbonated<br />

soft drinks (CSDs) segment <strong>and</strong> allows for fur<strong>the</strong>r growing <strong>the</strong><br />

total product portfolio in Germany.<br />

We have been reviewing our European production footprint.<br />

This has resulted in <strong>the</strong> transfer of various lines to o<strong>the</strong>r<br />

companies within <strong>the</strong> Group in or<strong>de</strong>r to optimize utilization of<br />

existing capacities. A cost­reduction program, toge<strong>the</strong>r with<br />

investments in high­speed production lines, has streng<strong>the</strong>ned<br />

<strong>the</strong> path towards full cost­price lea<strong>de</strong>rship in <strong>the</strong> industry.<br />

The focus on cost­price beneficial investments will be kept very<br />

much alive in <strong>the</strong> Group. Every single <strong>de</strong>cision in <strong>the</strong> total supply<br />

chain of our products has been reviewed <strong>and</strong> rebalanced.<br />

In <strong>the</strong> current market situation, we can less afford unnecessary<br />

costs in our system than ever before.<br />

It is very often not just about doing things better or cheaper,<br />

but about daring to do things differently. This challenge to<br />

our total organization has ma<strong>de</strong> us more professional <strong>and</strong> has<br />

given us an agile mindset as well as competitive strength.<br />

by investing in relationships with suppliers<br />

to optimize costs throughout <strong>the</strong> supply chain.”<br />

page _ 26 / 27

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