FGV Annual Report 2020

FGV’s LO Business provides end-to-end supply chain services, and is our bridgehead to customers. We identified seven (7) areas for operational improvement for this business. They are: FGV’s integrated farming business is the way forward as a premier agribusiness player involved from farm-to-fork. In 2020, the Group made some progress with the launch of an end-to-end grocery marketplace under the brand name GOGOPASAR. With this, FGV is set to increase its participation in the digital market space to reach online shoppers. GOGOPASAR is a partnership between a digital infrastructure service provider and FGV. The GOGOPASAR business model will enable FGV to control the supply chain by removing intermediaries. It will allow FGV to take charge of packaging, selling & marketing and delivery. In turn, benefit from better pricing margins compared to conventional sales models adopted by other industry players in the market. However, FGV’s price setting will be based on industry trends. GOGOPASAR also creates opportunities for farmers, who will be offered incentives based on the volume and quality of their supply. Most importantly, it is aligned to FGV’s ultimate goal of marketing products grown by farmers at fair trading prices. FGV is also deliberating on appointing home agents, to be called GoGopreneurs. This will create job opportunities in sales, marketing and customer management. Logistics & Others (LO) INTEGRATED FARMING Future Priorities For 2021, FGV has identified four (4) key strategic initiatives to increase operational efficiency. 2021 KEY STRATEGIC INITIATIVES Reduction of inorganic fertiliser usage via large scale commercial application of Fortified Organic Fertiliser (FOF) for mature oil palm Increase fertiliser’s external market segment Establishment of high standards replanting model via utilisation of SAFE technology Enhancement of R&D for FMCG products External focus Aggressively seek income from external markets to grow FGV’s revenue Continuous Improvements Improvements in service quality to fulfill customers’ expectations Cost Control Initiatives Implementation of control programmes and stringent cost management for the ICT and travel businesses Keeping up with emerging industry trends Inculcate a culture of innovation and behaviour in workforce OPTIMISING ASSET UTILISATION Optimising our transportation & storage assets responsibly and efficiently Structured Logistics Planning Consistent effective logistics planning for fleets, dry and liquid storages 01 04 02 06 03 05 107 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders