Empowerment

The new targets in relation to preferential procurement and employment equity was initially delayed, however, it is now fully enforced. Our businesses are making positive strides in all aspects of transformation, which is clearly reflected in the overall measurement and resulting B-BBEE status of our Group and individual operations. Empowerment and change is entrenched and adopted as part of our business. We would like to see more black South Africans contributing to mainstream economy and are delighted to see, albeit slow, the increasing number of black managers and supervisors progressing to more strategic positions.

Bidvest works hard to achieve a real sense of partnership with our suppliers and we constantly aim to place a major portion of our procurement spend with black-owned businesses.

We derive competitive advantage from our training investment and take pride in the contribution made to communities through our socio-economic development programmes.

Of course, more work needs to be done. However, we are confident that we are on the right path to building a diverse workforce, empowered community and strong partnership with small business entrepreneurs.

Internationalisation

The Group is significantly under-geared while our operations remain strongly cash-generative. We therefore have the necessary resources to fund strategic acquisitions, not only in South Africa but in international markets, including Africa and Europe.

International growth opportunities in the commercial space demand close attention.

Branding Bidvest

The introduction of new structures in South Africa was an opportunity to apply Bidvest branding across a broad range of local operations. This effort will continue. The initial focus was on company names and signage. Now branding is being extended to more and more elements, including employee overalls and uniforms. The process has been supported by staff at all levels.

Innovation

Sharing best practice across divisions and geographies receives increased management attention.

Success in one area of activity can help accelerate innovation in other sectors, enabling us to develop new revenue streams and entrench customer relationships.

An innovative entrepreneurial mindset has always been part of the Bidvest culture.

We invest in new technology and build ‘green’ features into the design of new premises. But innovation is not always dependent on new technology. Simply thinking in new ways can reveal new opportunities. New business models and new products can be developed by staying close to needs and societal concerns.

Environmental concerns about the impact of throwaway plastic bottles have led Puréau Fresh Water Company at Rental and Products to put new focus on water-cooler systems. Execuflora now markets its indoor plants on the basis of proven health and productivity benefits, widening the previous focus on aesthetics.

Innovation in route scheduling, energy efficiency, water usage and full-colour digital printing add to the competitiveness of many of our businesses. Innovation is continuous. We are making Bidvest future-ready. The process won’t stop. Sustainable business practice is a permanent agenda item at all management meetings.

Future

Though pleasing growth has been achieved, consolidation after changes to the divisional structure was the principal theme of 2012. We are confident all structures have bedded in well, paving the way for aggressive growth in the year ahead and perhaps some significant acquisitions.

Clearer focus has enabled management to identify growth areas. Simultaneously, areas where under-performance is apparent have been closely scrutinised.

In future, we will reinforce winning businesses by making further investments in infrastructure or new acquisitions while disposing of operations that have experienced continuing losses or where we see little prospect of significant gains.

The scope of activities is currently restricted to South Africa. This is not viewed as a permanent restriction. Where opportunities exist for international expansion they will be carefully considered.

	Bidvest South Africa has a heart • Bidvest Automotive Education and literacy remain the focus areas of the organisation as a whole and the Rally to Read is the principal CSI project. Rally to Read has an impact. Independent evaluations of the Rally to Read programme have shown that after a three-year READ intervention in a school, learners on average advance two years in reading skills, and four years in writing skills, compared to learners in other schools. • Bidvest Financial Services The philosophy behind Bidvest Bank CSI is the desire to include a programme of involvement and interaction with disadvantaged communities and not just chequebook philanthropy. Each region or branch is encouraged to become involved in local community projects. Education is a way to develop future clients and employees. Resources are provided to matric students who are studying mathematics and science subjects. Children are our future employees. With this in mind, the division provides assistance to crèches such as Bathabile in Daveyton, Pennyville in Pennyville, Soweto and Simamisa orphanage in Kingsway, where they pay teachers, provide weekly groceries and assist in building classrooms and facilities for the children. The division partners with charity organisations, such as Union of Jewish Women, who provide assistance to disadvantaged women by teaching them to sew and bake, enabling them to start their own businesses. Other projects include a feeding scheme and soup kitchen, the Stop Hunger Project, where meals are packed and provided to early childhood development centres, also providing assistance to blind and physically disabled children. The Bidvest Bank 2012 Mandela Day project entailed erecting practice nets at Lodirile Secondary School in Krugerdorp for the cricket team. • Bidvest Freight Divisional businesses assist local communities, focusing on education and youth development. The division adopted a disadvantaged school south of Durban where the matric pass rate was low. Improved pass rates have been monitored. Interventions include the deployment of tutors to the school. Initially, the school made pupil attendance at extra classes optional. Success is such that the principal now makes participation compulsory. The programme focused at the outset on Grade 12 pupils. The initiative has since been widened to cover Grade 11 as well as Grade 12 pupils in two other local high schools. • Bidvest Office The division supports the World Wildlife Fund Rhino DNA Index System or RhoDIS project. Project teams have developed a DNA profiling technique that can identify individual rhino horns. Teams sample rhino across Africa (and soon Asia) so seized horn can be traced to specific poaching incidents. This helps to combat poaching by making it easier to prosecute poachers. A donation is made to the project every time a Konica Minolta Bizhub is sold. • Bidvest Paperplus Bidvest Paperplus employees are involved in nominating disadvantaged schools within their local communities and near the business units which need scholastic stationery. Through the business unit employee forums, schools are evaluated and prioritised according to those most in need of assistance. The employees from the division then visit the school to hand over the stationery and other donations. More than 34 schools, orphanages and other charitable institutions have benefited from this Bidvest Paperplus initiative.