AVBOB Integrated Annual Report 2018

and penetrate markets that are already accessed by one of the business units. Regular provincial Product Committee meetings are held to ensure that all personnel are aware of what services and products are offered. At these meetings sales staff have the opportunity to influence funeral products and services offered. Functioning as “ONE AVBOB” strengthens our competitive advantage in the market, and as we continue to pursue this thrust, we will bring our people together and focus their collaborative attention on our strategic objectives and goals. The funeral service industry is fluid, with new entrants, products and services being continually introduced in the market. Innovation is the fuel and a key enabler to remain relevant, retain our existing customers and attract new customers, and consequently deliver our business goals. We will drive our innovation agenda through the enhancement of existing products and services, and the development of new products and services. The implementation of the Funeral Service product development framework in collaboration with AVBOB Industries allows us to be more innovation driven, to deliver the right products and services, in the market at the right time. Our manufacturing division develops products that serve every segment of the market. Our coffin and casket range is very extensive and is reviewed and augmented continuously to keep abreast of our clients’ needs. An Engineering Design and Processes Department, dedicated to productivity improvement projects, was established in 2015 and is growing in its capability and effectiveness and this has become very evident when moving through the factory. AVBOB Industries is now using the principles of Lean Manufacturing which allows for a more ergonomically friendly workplace and reduces the time taken from conceptualisation of a product through to the delivery of the product to the market. In order to maintain a high level of quality products, we continue to ensure that our Quality Management System is robust. This ensures that we are in control of our processes and that high-quality products reach our customers in their intended state. The production processes were also upgraded to ensure that employee ergonomics are improved by the installation of a conveyor system. This reduces the amount of double handling and improves the quality of the product by eliminating in-process mechanical damage. Further mechanisation of the facility is being planned and will be phased in systematically. Research was conducted into an alternative process for disposing of human remains. New technology called Alkaline Hydrolysis or “flameless cremation” has been implemented on a limited scale in the USA, Europe and Australia as an alternative to the traditional options of burial or cremation. We have engaged with national, provincial and local government structures to secure the necessary permissions to implement this technology and will commence with the implementation during the 2018-2019 financial year. Environmental stewardship Globally, the depletion of natural resources continues to place great strain on the environment and business thus creating a sustainability issue. The Group recognises that it has an impact on the environment – both directly and indirectly – and hence it is committed to preserving natural resources in running its operations. Our primary business activities include the underwriting of life and assistance insurance, the supply of funeral services, manufacturing of funeral requisites, and owning and leasing of fixed property. Business operations are located nationally as well as in Namibia. We are committed to disclosure, transparency and measurement of our impact on the environment and we integrate environmental considerations throughout our operations. We regularly measure, 54