2017 REVIEW OF OPERATIONS:LEVERAGING OUR SUPPLY CHAIN AND LOGISTICS

Our procurement team interacts with local, regional and global suppliers to source the goods and services our business needs to produce and sell our beer and soft drinks. Our Supplier Partnering Program aims to collaborate with each suppler to ensure that they at least meet minimum requirements of the United Nations Framework and Guiding Principles on Business and Human Rights and the Company’s code of business ethics. The guiding principles relate to work place safety, avoiding child labour, basic labour standards and human rights and good manufacturing practice. Suppliers must act ethically and with integrity at all times and comply with local, national and international laws and regulations. They should avoid situations where a conflict of interest may occur, and must immediately disclose to Delta any conflicts of interest that arise.

Over 70% of the Company’s inputs and services are sourced from the local market. The traditional contract farming arrangements for sorghum, barley and maize ensure sustainable sourcing of these key brewing materials whilst providing livelihoods to the Zimbabwean communities. The supplier partnering program aims to achieve gains in quality, cost and service levels through reduction in waste and poor materials performance

The Company operates an internal fleet comprising over 200 prime mover vehicles and in excess of 400 trailers, primarily for secondary distribution, which allows the Company to deliver its products directly to retail and wholesale customers

There are ongoing initiatives to build internal capacity for primary freighting from the production centres to benefit from enhanced efficiencies. Our fleet travelled a combined 14,2 million kilometres this financial year.

There are current initiatives to deploy technology in the routing of deliveries, load pickings in the warehouses and vehicle and driver monitoring in order to improve vehicle productivity and distribution efficiency. There are however some challenges relating to poor road conditions, road congestion in urban centres and generally poor driving conditions in the country. Vehicle turnaround is also impacted by the high prevalence of police and VID roadblocks.

With over two hundred delivery vehicles plying our roads each day, it is a safety imperative for the Company to uprate driver skills. The division continues to invest in driver training and safety awareness. We work collaboratively with the Traffic Safety Council in the furtherance of programmes to reduce drinking and driving while promoting defensive driving. Our drivers continue to participate in the annual driving competitions within the Company and against other fleet operators.