Integrated supply chain synergies

The groups supply chain for meat products and related convenience foods extend from contracted feedlots to our own abattoirs, de-boning facilities, processed meat factory, biltong factory, catering supply division and wholesale and retail operations.

Numerous advantages exist in favour of the Group, its customers and its shareholders:

A more constant supply of meat, meaning less frustration along the supply chain, less time and energy wasted in sourcing scarce products, cashing in on having product available in peak demand times when supply is normally a challenge.

Better planning for peak seasons, product can be stocked up, vacuum packed or frozen to fulfil high demand at different times of the year, ensuring the ability to benefit from higher prices in peak seasons.

Better control of pricing to end customers, because of the more constant supply market share can be expanded as prices can be held constant for longer periods thereby strengthening the relationship with existing clients and drawing new clients.

Better logistics, many industry players suffer from logistical inability and shortness of reach that limits their expansion. Best Cut has used better, more reliable, more responsive and available logistics as a strategic advantage. All industry observations support the strategic opportunity of outperforming competitors by being better at logistics.

Accumulating profits along the supply chain, profit margins are not evenly spread along the supply chain, and by owning the different businesses along the supply chain, the Group is in a position to accumulate profits on the product as it progresses along the supply chain, ensuring a higher rate of return for the Group.

Branding opportunities exist along the supply chain, an import consideration that is difficult to achieve by organisations that trade at a commodity level such as fresh meat. Branding opportunities exist in terms of processed manufactured products by way of packaging and labelling and extends further to group owned retail stores focused at the identified target market.