2019 REVIEW OF OPERATIONS – TRANSPORT AND LOGISTICS
The Company operates an internal fleet of 236 prime mover vehicles, 436 trailers and 99 forklifts, which support the direct delivery of product to both wholesale and retail customers.
The fleet has been expanded by the addition of a core fleet for freighting product from the production centres to depots and some bulk customers. The fleet is complemented by some external hire vehicles. Total kilometres travelled in the year were 11,6 million which was partly depressed due to the product stock-outs in the second half of the year. This fleet is maintained in the Group’s network of workshops manned by well qualified technicians. There are ongoing initiatives to enhance distribution efficiencies through use of double pallet forklifts, truck mounted forklifts and other warehouse sorting equipment.
Fleet utilisation has benefited from the use of the vehicles in transporting raw materials, particularly for the fleet moving one-way packs such as PET, nonreturnable glass and canned beverages.
LEVERAGING ON OUR SUPPLY CHAIN
Promoting Best Practice In Procurement
Our procurement team interacts with local, regional and global suppliers to source the goods and services that our business needs to produce and sell our beer and soft drinks. Our Supplier Partnering Program aims to collaborate with each supplier 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 conflict of interest that does arise.
Promoting Local Sourcing
Most of the Company’s inputs and services are sourced from the local market. The contract farming arrangements for sorghum, barley and maize ensure sustainable sourcing of these key brewing materials whilst providing livelihoods to the local communities. The supplier partnering program aims to achieve gains in quality, cost and service levels through reduction in waste and poor materials performance.
The sourcing of imported material has been challenging particularly due to the shortages of foreign currency and the pricing distortions characterising the Zimbabwean economy. The distortions arising from the emergence of the parallel markets for hard currency has created disparities in pricing. The Company’s financial dealings have strictly been in accordance with the laws and regulations in each market.