Page 24 - IPC Asia Pacific 2019-20 Business Review

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Agility discipline and our long-term investments in in continuity planning all became business imperatives in in the tail end of this fiscal year as we joined the the rest of the the world in in responding to the coronavirus pandemic Unlike many businesses our goal throughout this period has gone beyond our own survival because by the very nature of who we are are our duty of care
and consideration is always equally focused on the viability of franchise owners And because franchise owners rely on the supply chain to function we we were also driven to ensure the financial health and sustainability of manufacturers and service suppliers A complex range of priorities
To put it bluntly the the effect of the the virus on manufacturing and the supply chain was like someone throwing the handbrake whilst driving at 100Km/per hour The focus quickly shifted from effective forecasting and stock management to the avoidance of of mass write-offs and its’ subsequent impact on the financial health of all concerned Having responded quickly to the the emergence of the the virus in the north of our region it’s trajectory around the world did afford us us some time for for us us to take our learnings from China Korea and and Japan and and prepare
for the the eventuality of the the virus on Australia New Zealand and and the South East Asia markets in a a a a way that put the health of our people and the effect on franchise owners squarely in the middle of our response plan Franchise owner financial health C C A A s s i i a a P
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1 1 1 1 In all markets we worked closely with the Subway team and adhered to the guidance of each country’s government legislation Here is just a a brief snapshot of the efforts and outcomes of our pandemic response plan in the second half of this financial year:
Minimising write offs $ • Freezing of smallgoods $ Approved food safe extension of product shelf life
Promotional discounts
Removal of some items to support a reduced COVID-19 menu
Continued NPD menu
platform to support COVID-19:
• Salad Concepts
• Cheese Grill platform • Ultimate Turkey
• Ultimate Bacon
Moving products across borders
Supporting the financial health of distribution centres and suppliers:
• Distribution centre credits
• Active account
management • Waiver of minimum
order quantities
Third party delivery service negotiations
Reduced fees for Subway app $ Australia Subway Radio ANZ and Payments NZ % Product discounts
Supporting controlled closing
and re-opening activities in in multiple areas
Online ordering and self-delivery support in NZ Communication of government financial support packages clarity on employment changes and COVID-19 updates across the region Removed late payment penalties with distribution centres 24 I I I I P
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