UGANDA BREWERIES LTD
bringing down cost . “ Efficiencies in transport , inventory management and warehousing are key in maintaining positive COGS which in turn drives the product pricing to an affordable price point for the consumer ,” says Muwema .
Partnering with DHL East Africa has seen UBL outsource its distribution , inventory management and warehousing operations , thus unlocking increased value and ensuring the products are at the right place , the right time and at the right price .
“ DHL shares in our vision and in 2018 has embarked on an expansion program at its Luzira warehouse facilities in order to meet UBL ’ s growing warehouse capacity demands . Additionally , DHL is aggressively looking at their existing fleet with a plan to refresh and expand the existing fleet and forklifts as well , to improve efficiency and manage UBL ’ s increased production volumes ,” Muwema says .
“ We did something similar with Mansons , who is also a major transporter but on longer routes .
We have structured a performance contract with them that gives us more , without necessarily driving up costs . Within this 3PL contract , we have included bonus malice clause , wherein we discuss gain share opportunities .
“ All of this helps us to run the business efficiently and drive down costs which in turn allows us to price our products competitively to the consumer ,” he continues .
“ Nonetheless , we continue to face challenges in sourcing especially when dealing with importation of raw materials through trade barriers which include import levies and cross border charges , longer lead times and foreign exchange disruptions . “ By sourcing materials locally , UBL has therefore worked to reduce and mitigate such barriers to trade , importation and transit times , whilst improving the planning of materials which are sourced from overseas .”
Inspiring others Housing a number of category managers across its procurement team , in areas such as agri-business ,
150 June 2018