TFG - Brochure 2017

Driving innovation in retail logistics

PROJECT PARTNERS

Driving innovation in retail logistics

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With stores spanning 34 countries, TFG has truly cemented itself as a market leader in the retail industry.

Head of Logistics, Jan Tukker, explains how the company is continually improving its supply chain and logistics process with technological ingenuity

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ith brands such as Foschini, Markham, Sportscene and @home under its belt, TFG is a name which is synonymous with retail. The company first set up shop in Johannesburg, South Africa, in 1925 and today, the retail giant has over 3,300 outlets in 34 countries across the globe.

Overseeing the logistics function within the TFG supply chain is Jan Tukker, Head of Logistics. Having worked at the company since 1998 in roles such as Systems Manager, Senior Financial Manager and beyond, Tukker is well-placed at the helm of the group’s logistics team.

TFG is widely regarded as one of the most successful and profitable retailers in South Africa. However, despite its success, the group is keen to evolve further by continually improving efficiency in its supply chain. “I’ve been with TFG for some time now and over that time we have significantly developed the logistical network and our supply chain processes,” Tukker says.

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TFG

More than 5% of total sales internationally are generated through online sales “Driving efficiency in our supply chain is very important to us. We still have plenty of opportunity to improve, whether that’s by enhancing our stock turn, our stock holding, or our replenishment speed.

“A huge amount of competition has come into South Africa and, like any retailer, we need to be more efficient and conscious of the small things to ensure that we continue to succeed.

Therefore, continually enhancing processes that improve productivity and efficiency is crucial to us.”

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Speed of service As a forward-thinking company, TFG stocks trend-setting, fashionable items as well as products which will sell all year round and are easy to replenish. To ensure that these items remain on trend, agility or ‘speed of service’ is a vital area of focus.

“For some of our retail brands, unit sales are growing quite rapidly partly due to negative inflation,” says Tukker. “As a result, our supply chain is under increasing pressure to quickly deliver these products.

Largest Fashion Logistics Provider in Africa RTT STYLE is the largest logistics provider within the Fashion, Footwear and Lifestyle sector in South Africa, with over 70% market share.

Partnering with TFG for over 18 years, we have gained tremendous insights and experience within this niche market. We see ourselves as an extension of our clients, priding ourselves in our client centricity and agility in this ever changing environment.

Through our strategic positioning and focus driven approach, our clients are able to leverage a competitive advantage within the market. Our focus areas of speed, consolidation, reliability and frequency, are all underpinned by state of the art technology, which differentiates us from our competitors.

Adopting an On-Demand Omni-Channel distribution strategy, we have created a service offering tailored around the ever evolving needs of the consumer, becoming the benchmark against which the South African logistics industry is measured.

Servicing over 5800 stores, across 800 shopping centres within the SADC region, our ever expanding

footprint affords us the reach needed to execute on our promise.

RTT STYLE is committed to the evolution of logistics, working closely with our partners to breech new markets and territories, continuing to deliver fast fashion.

Please visit us at www.rtt.co.za 0861 788 538 Chris Rossouw Manging Executive chris.rossouw@style.rtt.co.za

RTT Style is a proud Partner to

www.conveyco.co.za

Tel: +27 (0) 21 905 0230

Email: neil@conveyco.co.za

“A huge amount of competition has come into South Africa and, like any retailer, we have to be a lot more efficient and conscious of the small things to ensure that we continue to succeed” – Jan Tukker, Head of Logistics To manage this effectively we are developing and expanding our distribution centre capability.”

“We want to make sure our supply chain is agile by creating what we call multi-business distribution centres.

These will allow suppliers to deliver to multiple distribution centres across the country rather than just the one which is available in the current systems and processes. This is a big project from a distribution centre footprint and IT point of view. We will be leveraging our investment with our WMS supplier, Manhattan Associates to make this happen.”

Visibility Managing stock levels is critical for any retailer and with over 21 brands, visibility within the supply chain is more important to TFG than ever,

says Tukker. “Visibility has been a big focus for TFG because it enables us to reduce stock, it allows us to know where our products are, and it allows us to improve our decision-making. It is an area where we are showcasing innovation in everything that we do.

“So, for instance, we are currently using software called Llamasoft Supply Chain Guru to model and evaluate our supply chain network from supplier all the way through to our customers.

This enables us to optimise our supply chain by selecting the right locations for our distribution centres.”

Global footprint Spanning several continents, TFG has a wide-reaching global footprint.

In recent years, the company has procured numerous big-name retailers such as Phase Eight, Whistles

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Two teams. One nation.

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TFG

One courier company.

As a South African company devoted to our favourite sports, RAM takes great pleasure in being the one our national cricket and rugby teams rely on to deliver the goods. For many years, RAM has been associated with the Proteas as the official courier to Cricket SA. In 2017 we joined the SA Rugby family of partners as the official courier to SA Rugby and the Springboks. And with over 40 hubs across Southern Africa, over 1 500 vehicles and a team of over 2 800 trained personnel, this is one South African team that won’t drop the ball.

Official couriers to the Proteas and the Springboks RAM. Wherever RAM. Whereveryou youare, are,we weare. are.

and Damsel in a Dress in the UK and The Retail Apparel Group in Australia. “We are currently in a space in our organisation where we have procured other retailers not only in South Africa, but also Internationally,” says Tukker. “We continue to open stores in South Africa and in selected African countries, but are growing our international footprint at the same time.”

Whilst the company is targeting new territories, it has strategically targeted the value, mid and high customer segments within the market. “This is

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a strategic move which shields TFG from economic risks,” explains Tukker.

“If the economy declines and consumer spending is under pressure, people will want to buy value products and so we have strong value brands in Exact and The Fix. In the upper market we have brands such as Fabiani, @home and G-Star Raw. TFG has brands spanning all three of these markets positioning ourselves to capture all three of those market segments. This makes us a less risky as an investment opportunity because we cover all areas of the market.”

“Customer centricity is a key focus for TFG and our Supply Chains need to ensure that ever increasing customer demands are met�

Jan Tukker Head of Logistics

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Trusted logistics partner to TFG “Equites is the only specialised industrial REIT on the JSE and gives investors pure exposure to modern logistics properties� info@equites.co.za T +27 21 460 0404

R E TA I L

“Driving efficiency in our supply chain is very important to us” – Jan Tukker, Head of Logistics Driving efficiency This large footprint hasn’t come without its challenges, particularly in South Africa. TFG has embarked on several projects using the Lean Methodology, whereby it aims to cut out waste from its supply chain. “Over time inefficiencies creep into processes which need to be reevaluated to remove unnecessary time and cost. We have multiple projects across our supply chain addressing these areas of waste, continually improving the way we work.”

“There are quite a few suppliers that have helped us to develop our Logistical Network to the level that it is at now,” comments Tukker.

“Notably, a long-standing logistics partner of ours is the RTT Group.

They are responsible for the transport from TFG’s distribution centres to our stores and in that process, they haven’t been just a trucking company, they have been valuable partner.

They are now implementing a much more sophisticated, digital, delivery mechanism to stores allowing our stock position to be more visible.

We’re also working with Adjuno, whose head office is in the UK, on developing improved supply chain collaboration between TFG and our stakeholders.

This will result in better visibility of orders from suppliers into our DC’s and is all part of digitizing our supply chain.”

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The road ahead As a retail giant, TFG has captured the hearts of the South African and global market. But, with such visible successes, what is the company’s next move? “We’re going to continue to grow and become more efficient,” Tukker says. “Our online presence is growing quickly and more than 5% of our total sales internationally are generated through online sales. Customer centricity is a key focus for TFG and our Supply Chains need to ensure that ever increasing customer demands are met.”

“We will continue to drive efficiency, agility and visibility in our supply chains which will allow us to react quicker to sell better. We’ll be analysing the data in our supply chain at a completely different level and are going to become more analytical. We’re driving to always understand global trends and improve our supply chain because, in retail, it is an ever-evolving world.”

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Inside one of TFG’s warehousing facilities

340 Voortrekker Road Parow East Cape Town, Western Cape 7500 South Africa 7500 0860 576 576 onlineshop@tfg.co.za www.tfg.co.za/home