Bord na Móna - Source Issue 7 - (Page 13)

challengeS and change EngAging iT’s an eXciTing Time aT fuels and horTiculTure as They seeK To deliVer susTainable, profiTable groWTh Through marKeT-led resTrucTuring This new configuration will be along market/channel lines. This is being done to ensure that we are more customer focused, aligning to both customer and markets and to deliver consistent growth to the organisation. We have completed strategies for market growth in ireland, uK and mainland europe and there are some real opportunities that we will harness to build on our current business in 2011 and beyond. against a backdrop of continuing economic difficulty and challenges posed by climate change and legislation, we have focused on defining realistic and deliverable opportunities for the company in the marketplace. i n order to progress bord na móna’s growth plan, it has been decided to restructure the fuels and horticulture business based on customer requirements. The new structure will comprise two customer-facing commercial units supported by a customer supply chain unit. The consumer operating business unit (obu) will focus on delivering our complete portfolio of consumer products to our national retail accounts in ireland/uK. The distribution obu will focus on all other customers in ireland and internationally. The supply chain obu will be responsible for the cost-efficient delivery of products and services to the two commercial units. a business improVemenT model is being implemenTed aT feedsTocK To face off upcoming challenges T he feedstock business produced and transported approximately 3.9m tonnes of peat and supplied 130,000 tonnes of biomass in 2010/11, employing 1,200 people at peak production. The business is facing downward market pressures on prices, volumes and margins in the coming years. for instance, the contract to supply one million tonnes per annum at an index-linked price to edenderry power station will cease in december 2015. a similar supply contract with the esb for two million tonnes per annum will cease in 2019. The displacement of peat with biomass, while vital for business sustainability, reduces profit margins. and the logistical requirement to substantially increase the amount of peat hauled by road also reduces margins. feedstock continuously seeks opportunities to be more effective and efficient in its operations in order to meet these challenges. The business has recently completed a project that studied how we might better manage and maintain our plant and machinery assets, reducing costs from €20.3 million to €14.6 million on a phased basis. This project was lead by the feedstock management team, it included employee participation and was supported by The Woodhouse partnership ltd. The project team also used an internationally recognised specification of good asset management practice issued by the british standards institute as a framework for best practice. using a structured methodology, the team determined the most cost-effective asset management and maintenance model, the process and people changes required and a phased implementation roadmap. The new model will enable a reduction in maintenance work volume and an increase in efficiency, while retaining or improving performance of the business. This will require a shift from reactive to proactive control of maintenance and investment, improved operations of machinery and better business processes, making good use of information systems. www.bordnamona.ie Source | 13 http://www.bordnamona.ie

Table of Contents for the Digital Edition of Bord na Móna - Source Issue 7

Bord na Móna - Source Issue 7
Contents
A Round-Up of News from Around the Company
Willow Harvest for Farmers
New Approach, New Business
Strategic Growth and Development
Challege and Change
Anua Beginning
Raging Inferno
Mapping a Sustainable Future
Project Update
Heritage Corner
Nationwide

Bord na Móna - Source Issue 7