Forum Topics Breville Group Ltd - General Disucssion
mikebrisy
2 years ago

A lot going on today, so I audio-recorded the $BRG results presentation and listened back to it this afternoon. Results were really solid, with an excellent narrative of what is going on globally in supply chains. But the highlight for me was the Masterclass given by CEO Jim Clayton on supply chain management, as the analysts have repeatedly been on to him about elevanted inventory levels.

If anyone is interested, I can post a link to the audio/video mash-up to the relevant section and make it available here.

Vote for:

a) Supply Chain mash-up and

b) New Product Mashup. (I am going to do something on the supply chain stuff in any event for my MBA class!)

Disc: $BRG held IRL

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mikebrisy
2 years ago

https://tinyurl.com/y9j6fz95

Above is a link to a 12 minute segment from yesterday's FY22 $BRG investor call. Here, CEO Jim Clayton tries to respond to persistent questions from analysts/investors who have been questioning the company's approach to inventory management during these challenging times, where it is an ongoing issue for many firms reporting this season.

This is one of those occasions where a CEO takes time to really explain the decision processes and approach by which the company is managed. This is such a great exposition of supply chain management (SCM) and inventory management, that I am going to use it with my MBA class in a few weeks time when I teach the topic - so producing the mash-up was primarily for their benefit.

I came away from the video with a better understanding of the key value drivers for $BRG - and with increased confidence that they are managing ongoing supply chain turbulence as well as anyone can.

Apologies for the sound quality. I had to record it off the investor teleconference.

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PortfolioPlus
2 years ago

Excellent @mikebrisy. As the Chair of a medium sized private manufacturer with primary inputs of volatile aluminium, glass and MDF board I can relate totally to this. We overstocked hugely at a attractive price point and then used the availability of material (wrapped into a guarantee) as a significant point of difference over our competitors. Scarcity is a beautiful weapon to exploit. We were also able to offer fixed price tender quotes with fixed deadlines set to the hour of a day. Our sales team were very successful at closing on these narrow time frames. It proved to be a real winner.

Now that sea freight raw materials are becoming more consistent, we are now in a position to provide guarantees over raw materials on the high seas - naturally with longer time lines.

the problem retail has with over stocking is constantly changing fashion requirements and customer requirements of uniqueness rather than the sameness of a standard uniform. Will be interesting to hear CXY’s solution or outcome to over stocking.

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