1 Business Transformation for Growth Grant Rockman CFO M G Kailis Group

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Business Transformation for Growth

Grant Rockman CFO

M G Kailis Group

Business Transformation Growth Slide 2

MG KAILIS GROUP OF COMPANIES2


• Established by the late Michael George Kailis by selling his wife’s car

• In 1967 Michael convinced three Cray fishermen in Dongara to convert their vessels to Prawn vessels to experiment with Prawning off the Exmouth Coast, WA

• In the 70’s we developed the ‘K Class’ fishing vessels and built over 100 vessels

• With our Prawn infrastructure we developed the Pearl Production business off the coast of Broome, - became second largest pearl producer.

• In early 2000’s developed the Tropical Rock Lobster Industry in Cairns

MG Kailis Group History


Prawning in 1967 in Exmouth4


Prawning today in Exmouth5


Balance Scorecard Strategy Map – Seafood Business

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Challenge Challenge

• Traditional fishing methods:• hours can be wasted,

fish in areas at wrong times, fishing by markers

• There is no controlled alignment between fish caught and market demand.

• Retailers now award supply contracts based on specie

Solution Solution

move to a ‘Targeted Fishing Strategy’ to reduce fuel cost, person exertion, increase catch rate and target specific species.

Requires a transformational process involving: vessel technologies, business analytics, and industry based data scientist and data warehouse support.

Results Results

In operating two different vessels for 6 months, one using the traditional methods and the other using data driven method we achieved:

A catch rate improvement of over 30%.

A profit improvement of over $400k

Objective: Raise Fish Trawl Productivity

Project: A Data Driven Targeted Fishing Strategy


Fish Trawl Hours Utilisation Report by Area8


Challenge Challenge

• Workforce Requirements are project based and highly seasonal

• Trade requirements are highly variable dependent on the project

• Short range pipeline visibility

Solution Solution

Employee key staff, and transform 60% of workforce as project based contractors

Use business analytics to review and monitor utalisation by trade daily

Use historical data to forecast future labour requirements

Results Results

An increase in utalisation by 5%

significant pipeline growth from being able to rapidly scale quality labour aligned to project requirements.

Objective: Optimise Ship Repair & Maintenance Staff Utilisation

Project: Data Driven Trade and Project Management


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Kailis Marine


Kailis Australian Pearls11


Challenge Challenge

• Luxury jewellery requires a tactile experience

• Excess slow moving inventory freezes the flow of working capital

• MRP process did not integrate inventory ‘sold’ to retail and wholesale channel

Solution Solution

Utilisation of business analytics to incorporate inventory ‘sold’ by production by held in a Retailer’s inventory

Development of Vendor and enhanced consignment model to increase physical inventory exposed to the end customer

Results Results

Growth in wholesale channel footprint

Removal of bottleneck of slow moving items held with stockists

Improved efficiency in working capital management

Objective: Increase ‘Number of Doors’ selling Kailis JewelleryObjective: Increase ‘Number of Doors’ Selling Kailis Jewellery

Project: Integrate Business Analytics into MRP Process

Documents

1 Business Transformation for Growth Grant Rockman CFO M G Kailis Group