Fraser & Neave Holdings Bhd Annual Report 2021

BUSINESS PERFORMANCE REVIEW (continued) STRATEGIC OBJECTIVE : INCREASE PRODUCTIVITY & PROFIT Key Initiatives Achievements Automation in plants/warehouses • Developed an integrated warehouse in Shah Alam which will be the biggest featuring an ASRS in the country, with capacity to store over 50,000 pallets. – Able to maximise storage efficiency, reduce operational costs, shorten delivery lead time to customers and reduce carbon footprint. • Building a production plant for drinking water and warehouse in Kota Kinabalu Industrial Park, signaling our entry into drinking water business in Sabah. – Cost savings by in-sourcing of warehousing needs in Kota Kinabalu. Enhance route-to-market • Working with logistics partner to reduce delivery turnaround for purchases made on F&N Life from seven days to two working days in the Klang Valley. STRATEGIC OBJECTIVE : ACHIEVE COST EFFICIENCIES & CARBON FOOTPRINT REDUCTION Key Initiatives Achievements Workplace 4.0 transformation • Accelerated our digital journey and intensified the adoption of more systems driven by the latest technology. • Restructuring our workplace to be leaner and more e!cient; and upskilling as well as reskilling all employees. Renewable energy programme • Building rooftop solar PV systems in Shah Alam, Pulau Indah and Bentong plants with a total combined capacity of 10MWp, su!cient to meet 20 per cent of our total electricity requirements in Malaysia. – Estimated annual electricity cost avoidance: RM3 – 4 million. 2 3 078 B u s i n e s s R e v i e w FOOD & BEVERAGES MALAYSIA