Manufacturing and Distribution
Spur Corporation manufactures many of its unique sauces at the sauce manufacturing facility in Cape Town, which manufactures more than 450 000 litres of sauce per month, including certain of the Group’s unique sauces for external parties under licence. The Group has a committed team that ensures consistent quality and a supply of core ingredients and product lines.
The current sauce manufacturing facility is operating beyond its useful life. To take advantage of advances in technology, which enable improved efficiencies, support food safety standards and enhance production capabilities to manufacture sauces that the existing facility does not allow, it has become imperative to invest in a new facility. Investigations are under way and the Group anticipates commencing with the establishment of a new plant in the new financial year.
The new plant will enable the Group to produce most of the sauces required for the RocoMamas brand, as well as include the option of producing lines for bulk retail products.
Procurement is centralised and managed for franchisees, which enables the Group to negotiate better prices on core items in the basket and ensure security and consistent quality of supply. Supply chain logistics are outsourced to a third party distributor. The Group charges franchisees a cost of integration of approximately 3% on the volumes sold through the distributor.
The procurement department manages the relationship between the outsourced distributor, suppliers and franchisees, audits suppliers, and facilitates third-party food safety audits on suppliers and the outsourced distributor.
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.