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Patties Foods

Patties Foods. Mark Kluver General Manager Customer Logistics & Distribution 9 th February 2007. Established by Peter & Annie Rijs in 1966 in a small cake shop located at Lakes Entrance Manufacturer of frozen sweet & savory products Largest pie manufacturing company in Australia

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Patties Foods

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  1. Patties Foods Mark Kluver General Manager Customer Logistics & Distribution 9th February 2007

  2. Established by Peter & Annie Rijs in 1966 in a small cake shop located at Lakes Entrance Manufacturer of frozen sweet & savory products Largest pie manufacturing company in Australia In 2003 Patties purchased Four’N Twenty, Nanna’s and Herbert Adams to add to the existing Patties brand 400+ employees company wide Approx 300 employees located in Bairnsdale plant (Head Office) Plant capacity of 30,000 tonnes per year manufactured from 24x5 to 24x7 operations using latest technologies Consumption of over 35,000 head of cattle per year (100 tonne of meat, mainly beef, per week) Marketshares as of 30th June 2006 50.5% Retail Frozen Savory segment - #1 in market 17.7% Retail Frozen Dessert segment - #2 in market Strong history of innovation and product development Patties Foods Company Snapshot

  3. Patties Foods Logistics • All manufactured product transferred to Melbourne Metro based warehouses (domestic and export) • Sales to Retail, Foodservice and Export customers flow through Melbourne Warehouses (NDCs) – Hub and spoke network • Despatches from the factory range from 6 to 11 fully loaded (weight or cube) semi trailers per day • Typically approx 11,000 pallets of finished goods in stock (600k cartons) • Daily product movements ex factory range from 100 to 500 pallets per day • Winter and Footy Season signify peak trading period

  4. Patties Foods Why like this? • Maximise freight density on shuttles (less space occupied by pallets) • Minimise number of trucks required to transport finished goods to Melbourne • Minimise the quantity of under-utilised trucks returning to Bairnsdale (freight imbalance) • Maximise despatching and receiving dock utilisation (no B-Doubles used on shuttle) • Carrier market far greater in Melbourne to interstate destinations than from Regional Victoria • Access to rail head for WA with minimal handling of containers • Access to port for Export • Ability for Patties freight to be consolidated with other compatible freight ex-Melbourne (lower cost per pallet – LTL’s) as opposed to under-utilised dedicated vehicles (FTL’s)

  5. Patties Foods Regional Manufacturing – Local Benefits • One of the largest employers in East Gippsland • Contribute $100k per week to local community via direct wages • Spend approx $1m per year to regional carriers to operate shuttle to Melbourne • 200 local suppliers • Employ local contractors • Local events sponsorship • Donations to local charities • Support the local tourist industry – Plant/HO visits • Assist local suppliers where possible • Recognition for the local area

  6. Patties Foods What can Regional Councils do for Manufacturing? • Acknowledge the contributions made to regional areas • Understand the competitive environment manufacturers operate within • Get closer to the manufacturers in your area • Understand what makes them “tick” • What can make them go “clunk” • Be mindful of implications in approving housing developments around major plants that were once isolated • Help facilitate further business growth • Speed to market can make or break new products • Be aware that competitive threats are likely to come from overseas sources • Efficiency in operations is paramount to ongoing successes and growth • Barriers to market entry will protect and facilitate growth in regional business development

  7. Patties Foods What can Regional Councils do for Logistics? • Take into consideration that (the dilemma begins!) • Efficiency usually means 24 hour operations • Logistics usually involves noise (safety) • Plants that were once “out of town” cannot be shifted as urban sprawl surrounds them • Efficiency means fully loaded Semis and B-Doubles traveling along country road network • Bigger trucks means fewer trucks • Night operations decreases the traffic concentration of large vehicles through towns during daylight hours • Our local suppliers will need to grow with us – don’t forget them also! • Support the VTA for further Transport development • Larger trucks (B-triple, Hi-Cube) • Lobby State and Federal Government over infrastructure

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