MSM Malaysia Holdings Berhad Annual Report 2019

BUSINESS REVIEW Refinery Performance At a Glance For 2019, we moved 274,727 tonnes of sugar at 93% achievement rate for on time delivery. Performance 2019 2018 2017 Sales and Distribution (RM) 25 million 20 million 20 million On Time in Full 93% 98% 98% Demarcated Delivery 100% n/a 85% Inventory Record Accuracy 100% 100% 97% Stock Cover 19 days 12 days 8 days Maintaining Market Leadership MSM strengthened its supply chain management and distribution during the year through daily monitoring of available stock and sustaining service levels for on-time delivery. We also continued to enhance stock management through dynamic demand and supply planning and stock balancing. Like the previous year, stocks for the year were produced based on demand in order to avoid wastages and assure stock freshness. As safety and hygiene are crucial, all products are also expected to fulfil quality audit and quality control requirements at every stage of the distribution supply chain. The team also leveraged on sales history in order to provide more timely demand forecasts. To this end, we are proud to have achieved 100% inventory record accuracy. On the logistics front, current challenges include addressing truck availability issues and managing breakdown issues from an ageing fleet. In terms of cost and time efficiency, the demarcation exercise has proven successful. In addition to this, a thorough review of current costs of transportation and raw sugar warehouse management was conducted in planning out further cost efficient strategies. Focus for 2020 Achieve Just-in-Time arrival of Raw Sugar stock Optimise stock holding for refined sugar Improve delivery timeframe and reduce downtime Harmonise packing formats SUPPLY CHAIN MANAGEMENT & DISTRIBUTION MSM’s demarcation exercise was fully implemented in 2019 leading to significant load improvements, smoother replenishment of orders and optimum stock count and freshness. In 2019, the key priorities were to further streamline the supply chain and ensure safety and quality is upheld throughout the supply chain value stream. These have improved supply chain availability and efficiency. MSM Malaysia Holdings Berhad | Annual Report 2019 38