Business model
Introduction
The business model is key to understanding how Numidia adds value for its stakeholders.
Traders perform a key function in the dairy market. There is a natural imbalance between production and demand, and traders are crucial for bridging this gap and making dairy products available across the world.
Numidia’s global presence is tailored to the above picture, with offices across the world. The offices are based mainly in the trade surplus regions from where they can engage with suppliers and serve customers across all regions and time zones.
Value chain
The infographic below shows a simplified view of the value chain. The role of Numidia is shown as the link between dairy producers on one side (upstream), and the producers, food service, retail and distributors on the other side (downstream). Numidia engages with stakeholders and partners in every step that is needed to bring the product from supplier to customer.
Added value
Numidia’s added value can be put into 4 categories or blocks:
The ability of many of our customers to conduct business is restricted by their geographical footprint, their ability to finance working capital, a mismatch in product specifications, product knowledge, supply chain knowledge, shelf life of products, etc. As a trader, Numidia helps them overcome these restrictions, enabling the connection from supplier to distributor or producer globally.
The 4 categories of added value are:
Reduce costs: We can store, transport and finance products at lower costs than most of our customers can do individually. We achieve this through economy of scale and operational excellence.
Limit risk: We can take care and cover the risk for our customers by means of a comprehensive risk management framework. These risks range from product risk to financial risk to compliance risk.
Transform commodity: To bridge the gap between supply and demand, Numidia can transform a product in 3 ways:
Ship the product from the supplier’s location to the customer’s locations.
Store the product for a period of time, bridging the gap between the moment of production and the moment of demand.
Transform the product’s form. This can be done through several value-adding changes to the product: freezing/defrosting, blending, repacking, etc. We can adjust the product to the specific requirements of the customer.
Sustainability: The value-adding activities within the three categories above are all conducted with eye for sustainability. Numidia has a sustainability framework in place so that it can offer customers a carbon compensated service with respect for the environment and nature.
Product portfolio
The added value of the service is inseparable from the product itself. Achieving the optimal customer experience means that good service has to go hand-in-hand with a quality product.
Dairy commodities can be separated into three groups: fat (e.g. butter and cheese), protein (e.g. milk powders) and liquids (e.g. cream). Many traders are focused on one of these product groups, whereas Numidia can offer a full range of products. This has several benefits:
We can offer customers a one-stop shop for dairy commodities.
We understand the unique market dynamics of each product category. By trading in the full range of products, Numidia has expert knowledge of the market and opportunities to hedge. Combined with the ability to trade in derivative markets (through futures and options), this creates a very powerful combination.
Values
We have five core values. These values are the basis for the service we deliver to our partners. We conduct our operations along these values and believe these contribute to the best possible results for our partners and employees.
transparency
To underline the transparency of our open and direct culture, we have one work floor (per office) where we all work. All directors, managers, staff, interns and seasonal workers are on the same floor; there are no separate offices. Employees are encouraged to approach each other with questions and ideas, or if they need help. In person if possible, or via phone, email or Teams message if someone is not at their desk. There are also several meeting rooms available to sit and talk in private. Transparency also means that feedback is given on a regular basis. In addition, short- and long-term plans and goals are shared during quarterly information sessions that are open to all employees.
reliability
We say what we do, we do what we say, and we have the evidence to prove it (i.e. certificates). We keep the promises we make to our customers, suppliers, business partners and each other. We formalize personal goals and plans, and we review them twice a year. You can find more about this in "Reviews and Development."
authenticity
We make sure that all Numidians are heard. We value their opinions and views; in other words, we value their authentic selves. This is true for all employees: those who are still at Numidia and those who are leaving us. When an employee leaves, he or she is offered an exit interview with HR. There they have the opportunity to speak freely about their time at Numidia: the good things, but also the things that could be better. In this way, we gain insight into our areas of improvement. While the individual interviews are kept confidential, the overall results from multiple exit interviews are included in a report to the Board of Directors.
long-term relationships
We are in it for the long haul. In other words, we always strive for long-term relationships with our employees and our business partners. Honesty is the key to good relationships. That is why we conduct performance reviews twice a year. As part of the review, we also ask employees to review Numidia as an employer and to provide feedback on their manager and position within Numidia. You can find out more about the review process in the section "Reviews and Development."
In addition, we are not afraid of commitment: we offer employees an indefinite employment contract after only nineteen months, and we invest in our employees. Out of 88 employees, 25 (39.7%) have temporary contracts. All other employees have indefinite contracts. You can find out more about how we invest in our employees in "Reviews and Development."
We value good relationships; between employees and Numidia as an employer, but also among our employees. That is why we have the "Numidia Party Squad" to organize fun and informative events for Numidians around the world. To improve the bonds between our employees, we also organize an annual party in July. All employees, including those abroad, are invited to spend a week in the Netherlands. During this special week, they also undergo training and get to spend time with colleagues in person. In addition, directors regularly visit our Numidia offices abroad.
flexibility
If COVID-19 taught businesses one thing, it is that employees are flexible. Of course, we knew this already. We are not confined to a set of rules and measures. Instead, if there is a better way to do something, we do it. That is why we love good ideas. As a flat organization, we are agile and able to make changes quickly and easily, without having to navigate unnecessary bureaucracy.
Employees have the flexibility to work from home one or two days a week and to plan their own working day.
Working conditions and terms of employment for all employees are covered in the Staff Handbook. But based on the results of the internal semi-annual reviews with all employees and the external research of Great Place To Work, we keep a finger on the pulse of what is going on among our employees, and where possible we improve the working conditions for them. In addition, we have an active Health and Safety organization (consisting of four employees) that also comes up with good proposals for improvement from time to time.
Certifications and memberships
We strive to outperform our competitors in product and process management. This is demonstrated by our various certifications and memberships.
Numidia is a certified IFS Broker and BRC Agent and Broker for the food market. We hold a GMP+ certification for feed safety.
In the context of corporate social responsibility, we are a member of the Supplier Ethical Data Exchange (Sedex ) and are "Great Place To Work" certified.
In terms of our environmental, social responsibility and governance (ESG) performance, we were awarded the Gold Medal by EcoVadis, placing us among the top 2% of audited companies in our field. We have an ISO14001 certified Environmental Management System in place, including a CO2 module.
We are recognized by the Dutch customs authority as an Authorized Economic Operator (AEO). We are also Skal certified, which allows us to trade in organic products.
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