Академический Документы
Профессиональный Документы
Культура Документы
PHASE 1
CREATED BY J . ENGELBRECHT
DATE: 12 AUGUST 2019
TABLE OF CONTENTS
INTRODUCTION TO NGMANYE 4
OPERATIONAL SUMMARY 5
PROCESS FLOWS 8
EMPLOYEES 10
MOTORBIKES 11
RISK MANAGEMENT 11
2
1. PURPOSE OF THE DOCUMENT
The objective of the operational plan is primarily to form part of the basis of
an important investment decision and in order to serve this objective, the
document covers aspects of the start-up, business operation, processes and
management. (Purchasing, Warehousing, Sales, Finance and Stakeholder
Engagement)
2. INTRODUCTION TO NGMNAYE
The informal economy has attracted the attention of some of the biggest
businesses in the country. The major banks, telecoms and numerous tech
start-ups are highly innovative in offering newly created financial and digital
services and solutions to this “hidden” part of the economy. The informal
sector accounts for an estimated 18% of GDP or 29% of people under the
age of 15, and unfortunately comprises the poorest, most disadvantaged
segment among the population. The economic and moral opportunities are
clear.
Our dynamic team have been working on building out an FMCG logistics
distribution solution optimised for informal markets, blending digital needs
of multinational brands to the analogue nature of the township economy,
creating the right platform to supply the informal sector with recommended
retail pricing while building their brands.
3
Our inclusive model centres around buy-in from each local community in
which we operate, transferring skills, creating jobs and uplifting the youth.
Township businesses benefit from increased ordering efficiency, lower
pricing, dedicated brand relationship managers, and alignment of incentives
through transfer of ownership and participation in our economics. One of the
outcomes of this integration is a reduction in per unit distribution costs
which we feel will be very difficult to compete with.
3. OPERATIONAL SUMMARY
Given the cost assumptions IRR and payback are 40 % and 3.5 years
respectively. The most critical considerations or factors for success of the
project are
Product: It has been structured that for the proposed distribution business,
the company would act as connector for Multinationals to the informal
market. The business would distribute a basket of roughly 40 SKU’s through
hybrid platform, featuring legacy and digital components simultaneously.
Target Market: GPD estimates on the size of the informal sector vary
between R80b– R120b. The sector is made up a diverse mix of micro
4
enterprises. The majority of these micro enterprises are Spaza Shops,
followed by taverns / shibeens, hair salons and restaurants/ food stalls. A
vast majority of these micro business owners do the purchasing of goods
and supplies themselves through wholesaler channels, meaning extra costs
for transporting stock and closing the shop or paying runners expensive fees
to do the buying on their behalf. There are an estimated 120 000 spaza
shops, 50 000 tabletop traders and 30 000 taverns in the informal markets.
Suggested Areas: Devland, Aeroton, Eldorado Park, West Rand Mega Park,
Protea Glen Industrial Park, Stormill, Rand Leases Property Type:
Warehouse. Size: 1200sqm
Racking: Back to back long span shelving on ground level for picking with
pallet racking 3 levels high on top. Total pallet bays per block is 24.
Layout Example
5
Racking, Shelving Examples:
Accounting systems will be added first. Omni software has all three modules
that can be added in quick succession without system downtime. Rocksoft is
a sales management tool that also does route planning for brand
ambassadors sales calls and captures orders on the app which is then sent
to the sales department to import.
6
6. PROCESS FLOWS
a c
7 7
. . d
b f
l g
7
.
k i
e
l
j 7
. h
k e
The GRN is booked in as a receipt against the invoice and loaded for
payment on the next billing cycle (30 days from statement). Short delivered
items are automatically placed on back order by supplier. Prior to stock
being stored, it is checked for the expiry date and stored accordingly. Short
Dated stock will be sent back for a credit
7
6.2. Stock
Stock stored on FIFO basis, First in First Out. Model stock refers to
the stock model. D)
The stock model will differ throughout the year and account for things
like seasonality of certain products.
Stock to be stored palletized descending to lower level where bulk is
broken into boxes for picking
Daily, weekly, monthly, quarterly stock reports
Picking slips are collated and sent in a batch order to the warehouse
floor where the stock is batch picked off the shelves and taken to a
packing area.
Packing Slips break down the batch order into individual orders and
allows various stock items to be packed together to form the sales
order.
8
7. EMPLOYEES
Manager 1
Driver* 20
Sales
Warehouse
Receiving 2
Loading 4
Office
Debtors 1
Creditors 1
Accounts / HR 1
Director 3
Total Employees 16
9
8. COSTING MODEL [A ] KEY METRICS [B]
Leading & Lagging indicators are used as terms to indicate if what is being
measured is leading an action or following an action.
Key Metrics
Stock
Order Write
Vol & Avg Days to
Backorders Stock holding
Customer Fill Customer
Stock
Off’s
Freq sell stock
and filling cost
Rate Churn Rate
Accuracy
time
1
0
9. MOTORBIKES
The management team working with the stakeholders in the will ensure that
risks are actively identified, analyzed, and managed throughout the life of
the project. Risks will be identified as early as possible in the project so as
to minimize their impact. The steps for accomplishing this are outlined in
the following sections
Risk Identification
Risk Analysis
All risks identified will be assessed to identify the range of possible project
outcomes. Qualification will be used to determine which risks are the top
risks to pursue and respond to and which risks can be ignored.
The probability and impact of occurrence for each identified risk will be
assessed by the project manager, with input from the project team using
the following approach:
Probability
1
1
Impact
Impact
performance
Probability
Risks that fall within the RED and YELLOW zones
will have risk response planning which may i
Analysis of risk events that have been prioritized using the qualitative risk
analysis process and their affect on project activities will be estimated, a
numerical rating applied to each risk based on this analysis, and then
documented in this section of the risk management plan.
Each major risk (those falling in the Red & Yellow zones) will be assigned to
a project team member for monitoring purposes to ensure that the risk will
not “fall through the cracks”.
For each major risk, one of the following approaches will be selected to
address it:
1
2
For each risk that will be mitigated, the project team will identify ways to
prevent the risk from occurring or reduce its impact or probability of
occurring. This may include prototyping, adding tasks to the project
schedule, adding resources, etc.
A “Top 10 Risk List” will be maintained by the project team and will be
reported as a component of the project status reporting process for this
project.
All project change requests will be analyzed for their possible impact to the
project risks.
1
3