Manufacturing and Distribution
Spur Corporation manufactures many of its unique sauces at the sauce manufacturing facility in Cape Town, which manufactures more than 400 000 litres of sauce per month, including certain of the group’s unique sauces for external parties under licence.
Additions were made to the Food Safety Team to support quality control, and external HACCP food safety recertification and accreditation was completed in April 2016. Water tanks were installed at the sauce manufacturing facility to ensure uninterrupted flow of water during outages.
We are investigating the feasibility of establishing a sauce manufacturing facility in Johannesburg, which would reduce transport costs to inland restaurants.
The group also manufactures all its décor and artefacts that can be seen in their national outlets nationally. The décor facility employs artisans that work with wood, metal, resin and various other materials.
The group uses an outsourced distributor to handle supply chain logistics between suppliers, manufacturing facilities and franchisees. This allows them to focus on the core competency of franchise management while ensuring security of supply and consistent quality of products in its restaurants. This approach also enhances operating standards and improves efficiencies for the group and franchisees alike.
The role of the group’s procurement division entails:
- Managing the relationship between franchisees, suppliers and the outsourced distributor.
- Negotiating the best price for the best quality materials with suppliers by exploiting the group’s national purchasing footprint.
- Performing quality and food safety audits on suppliers and the outsourced distributor.
- Sourcing and investigating new, sustainable products and suppliers.
Volumes shipped through the distributor increased by 6.0% to 45 800 tons (2015: 43 209 tons). This increase was the result of new products being added to the basket, increased franchisee participation, the opening of new restaurants and growth in overall restaurant turnover.
Inbound suppliers are monitored on a number of key performance statistics. This data is used to rate suppliers and address issues identified during reviews, and improve stock availability and supplier management. We are investigating ways to increase the basket of products procured.