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  "documentTitle": "Agrium (AGU)",
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  "authorName": "Barry Rosenstein",
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      "text": "Retail's leading position in a structurally attractive, fragmented distribution landscape amplifies the return on resolution of this cost issue, enhancing Retail's position as a long-term secular winner.",
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      "text": "Retail’s leading position in a structurally attractive, fragmented distribution landscape amplifies the return on resolution of this cost issue, enhancing Retail’s position as a long-term secular winner.",
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      "text": "Persistence of Retail's footprint overlap – while Retail's President has acknowledged it as an opportunity – illustrates the benefit of adding distribution experience to the board to help prioritize and tackle this and other problems",
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      "text": "Capital Allocation: Redundant locations results in excess capital deployment. Duplicative safety-stock inventory to support overlapping locations, while fewer branches allows better demand management with lower aggregate inventory. Duplicative CapEx for equipment / maintenance at multiple locations",
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      "text": "Controls: Retail's network should be regularly monitored by a board that understands how to optimize distribution / cost leverage while prioritizing sales relationships with farmers and customer service levels / fill rates",
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      "text": "Costs: Duplicative locations results in redundant direct costs (headcount, facilities, maintenance, insurance), increases organizational costs (district and regional management layers with ~50 office locations) and complicates oversight",
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      "text": "Agrium's redundant footprint highlights many of the company's opportunities for cost, CapEx and working capital improvement and contributes to Retail's failure to generate operating leverage despite rapid growth in scale",
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      "text": "We don't need the number of facilities we have out there ... we need to have fewer facilities. And instead of replacing a blender at five to ten places, let's just put it in one place and just replace it one time",
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      "text": "We don't need the number of facilities we have out there ... we need to have fewer facilities. And instead of replacing a blender at five to ten places, let's just put it in one place and just replace it one time — Agrium Retail President, Agrium 2012 Investor Day",
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      "text": "Case Study: Retail Footprint Opportunity (Cont'd)",
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