STRATEGIC AND OPERATING CONTEXT
Reflecting on progress to date
Photo taken at Senwes Grainlink’s Bultfontein silo in the Free State.
Strategic focus area
GROUP STRATEGY | continued
3
Optimisation and improvement of current products and ser
vices, operational efficiencies, corporate and other support
services, as well as operational restructuring.
Strategic focus area
2
INTERNAL INTEGRATION
OF THE CUSTOMER
Reflecting on progress to date
Leveraging customer information/intelligence across the Senwes
group to ensure integrated, value-adding solutions to customers,
such as obtaining a greater share of customers’ wallets, whilst
retaining current customers and expanding the customer base
through the addition of new clients.
Objectives
Increased customer intimacy and consequent retention of custo
mers;
Obtain new customers; and
Obtain an increased share of the customers’ wallets spent across
the Senwes group, by offering a fully integrated business solution,
rather than a once-off product and/or service.
Top of mind risks
Market size and share risk;
Transition and customer risk;
Diversification and agricultural industry risk; and
Unique competitor risk.
For more detail on top of mind risks, see p. 53
REORGANISATION OF BUSINESS MODELS
• The Innovation and Integrated Solutions Division was esta
blished to drive initiatives to gain new customers, retain cur-
rent customers and increase the share of the customers’ wal-
lets spent across the Senwes group.
• The loyalty scheme (AgriRewards) was implemented and has
been applicable since the 2017 reporting period.
• Established a Business Engineering Division, with both inter-
nal (Senwes group) and external (client) focus.
• During the year under review, the Business Engineering De-
partment launched a wealth service offering to enrich farmer
clientele services.
Looking ahead
Given continuous technological advancements and the rate at
which customers’ needs are evolving, there will be a constant
drive to increase the share of customers’ wallets spent across the
Senwes group through innovative, integrated, top-of-the-range,
solution-driven products, services and advice.
Continued analysis of the group’s customer base to identify fur-
ther opportunities.
Objectives
Optimisation of the current product and/or service offering;
Focus on improving operational efficiencies;
Margin enhancement projects;
Optimisation/improvement of existing infrastructure;
Operational restructuring (addition of new business units or re-
structuring the current business units);
Optimisation/improvement of corporate and other support func-
tions and/or services.
Top of mind risks
Political and economic climate - land expropriation without com-
pensation;
Credit, liquidity and market risk;
Urbanisation, scarcity and retention of skills;
Commodity price risk;
Transition and customer risk;
Diversification and agricultural industry risk;
Unique competitor risk;
Regulation and compliance risk;
Systems risk;
Theft and fraud; and
Environmental, health and safety risk.
For more detail on top of mind risks, see p. 53
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SENWES INTEGRATED REPORT 2019
• Repositioned grain trading in Tradevantage in order to develop
into a national grain trading agent.
• Roll-out of the BBBEE-strategy taking into account the Once
Empowered, Always Empowered principle apply to the trans-
action with Royal Bafokeng Holdings.
• Senwes subjected some business units to an external pro-
cess of analysis and investigation. The business models of
these units underwent total redesign and enhancement.
• Senwes increased its appetite in the high probability trading
book and centralised this ability.
• Senwes launched its hedge fund into the market, in co-ope
ration with Absa Bank during September 2016.
• Margin enhancement projects.
• Established Hinterland Fuels (Pty) Ltd to take the fuel strategy
forward.
• Established an internal research unit, which forms the basis of
market intelligence.
• Restructuring of selected divisions within Senwes Grainlink.
• Reorganisation of Senwes Credit’s organisational structure to
position the unit for further organic growth.
• Established a quality office to generate, analyse and monitor
deviation reports, which will support grain risk management.
• The IT-division commenced with the roll-out of the unified
communications project, which focuses on establishing a sin-
gle, centralised collaboration platform.
Looking ahead
Creating value lies in constantly attempting to improve the ba-
sics. Therefore the group will continue to subject its business
units and processes to analyses and investigations in order to
establish whether or not any enhancements, redesign, restruc-
turing and/or the establishment of new business units/proces
ses are necessary.
Improved and/or revamped product and/or service solutions.
SENWES INTEGRATED REPORT 2019
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