North West Agri Feeds Business Plan — Operating Model
Raw material intake, milling, mixing and pelleting, and the throughput discipline behind 26,325 tonnes.
Section 11 of 26
Operating Model
Jump to section
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company and Business Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Industry Analysis
- 6. Market Analysis
- 7. Competitive Landscape
- 8. Business Model
- 9. Products and Services
- 10. Go-to-Market Strategy
- 11. Operating Model
- 12. Management and Organisation
- 13. Strategic Plan
- 14. SWOT Analysis
- 15. Risk Analysis
- 16. ESG and Sustainability
- 17. Implementation Roadmap
- 18. Financial Plan
- 19. Capital Expenditure and Working Capital
- 20. Funding Requirement and Structure
- 21. Investment Case and Returns
- 22. Sensitivity and Scenario Analysis
- 23. KPIs and Management Dashboard
- 24. Long-Term Growth Strategy
- 25. Conclusion
- 26. Appendices
The operating model must deliver two things above all: consistent product quality (the basis of the value proposition) and disciplined cost (the basis of survival in a thin-margin industry). The plant is designed around a conventional, proven feed-milling process flow, specified for a 10 t/h line with room to run extended hours.
Process flow
Receiving → Weighing & QC → Storage → Grinding → Batching → Mixing →
Micro-dosing → Conditioning → Pelleting → Cooling → Screening → Bagging/Bulk → Dispatch
Facility and equipment
|
Production & storage |
Support & infrastructure |
|---|---|
|
Raw-material receiving & intake |
Laboratory & QC |
|
Grain storage & ingredient silos |
Maintenance workshop & spares |
|
Hammer mill (grinding) |
Electrical infrastructure & backup generation |
|
Automated batching & mixer |
Administration offices & staff facilities |
|
Pellet mill, cooler, crumbler, screener |
Weighbridge & vehicle loading area |
|
Bagging line & finished-feed warehouse |
Fleet / logistics yard |
Procurement — the profit lever
Because ingredients are ~83% of cost, procurement is not a back-office function, it is where the business is won or lost. NWAF will run a disciplined procurement model integrating three objectives: price, quality and availability.
- Maintain multiple approved suppliers for every major input to avoid single-source risk.
- Use forward and seasonal purchasing to lock favourable pricing and smooth volatility.
- Hold defined safety stocks calibrated against price risk and lead time, without over-exposing working capital.
- Integrate procurement tightly with sales and production planning so purchases match the order book.
Quality control
Every major raw-material shipment is inspected and tested before acceptance; finished product is batch-tested; and full traceability is maintained from ingredient to dispatch. A laboratory capability, internal or through accredited partners, supports supplier approval, moisture and nutritional analysis, contamination control and complaint monitoring. Consistent QC is the operational foundation of the entire value proposition.
Working capital and the cash conversion cycle
Table 5. Working-capital drivers (days)
|
Driver |
Y1 |
Y2 |
Y3 |
Y4 |
Y5 |
|---|---|---|---|---|---|
|
Debtor days |
45 |
45 |
42 |
40 |
38 |
|
Inventory days |
40 |
38 |
36 |
35 |
34 |
|
Creditor days |
30 |
32 |
34 |
35 |
36 |
|
Cash conversion cycle |
55 |
51 |
44 |
40 |
36 |