SUPPLY CHAIN
During the year under review, the Supply Chain team prioritized effective procurement and inventory management, guided by the principles of “buy better” and “spend better.” This strategic focus ensured cost efficiency and value optimization across the sourcing process.
Additionally, the team maintained a strong performance in outbound logistics, ensuring timely delivery of sugar to all customer segments, including trade and industrial, within both local and export markets.
Other key focus areas included demand and supply planning, employee and product safety, sustaining product quality, and supplier development.
QUICK
LINKS
Efficiently connecting fields to customers through smart sourcing, seamless planning, and reliable delivery.
PROCUREMENT & INVENTORY
The business successfully completed the second phase of its Supplier Development Programme which was done in collaboration with the National Council for Construction (NCC). This initiative reflects a strong commitment to building local supplier capacity and enhancing the quality-of-service delivery. As the programme progresses, the focus is shifting towards contractor safety, particularly during on-site project execution, reinforcing the organization’s dedication to responsible and sustainable operations.
Seventy-one percent (71%) of the annual procurement expenditure was directed toward local suppliers, with 17% of this local spend allocated to suppliers based in Mazabuka. The remaining expenditure was incurred through Original Equipment Manufacturers (OEMs) and suppliers of specialized factory spare parts located in South Africa, Europe, and Asia.
SALES & OPERATIONS
Sales and Operations Planning (S&OP) is an integrated planning process that aligns demand, supply, and financial planning, and is managed as part of Zambia Sugar’s planning process. The business continues to strengthen its decision-making framework by leveraging the collaborative pillars of its Sales and Operations Planning (S&OP) platforms. This integrated approach has enhanced forecasting capabilities, enabling forward-looking decisions that ensure consistent market supply of sugar throughout the year.
CUSTOMER SERVICE CENTRE
Customer engagement remains a strategic priority for the Customer Service Centre (CSC) team, with a clear focus on delivering the right sugar packs at the right time. The implementation of the Transport Management System (TMS) during the year, is a significant step forward, enhancing delivery reliability and supporting the organisation’s commitment to meeting and exceeding customer expectations.
ENHANCED LOGISTICS OPERATIONS
The Winning Outbound Logistics Organisation (WOLO) initiative continues to deliver strategic value through enhanced logistics operations. By prioritizing product safety, warehouse optimization, transport efficiency, and robust distribution models, the organisation has achieved measurable improvements in logistics cost performance. Additionally, the sustained focus on employee safety underscores a holistic approach to operational excellence.
TRANSPORT
During the year under review, the business maintained adequate road transport capacity to ensure efficient movement of sugar from the mill to warehouses and selling points, with infrastructure improvements such as the Lusaka–Ndola dual carriageway enhancing logistics efficiency. Export compliance with Statutory Instrument No. 35 was achieved through the use of local Zambian transporters.
However, meeting the 30% rail transport requirement under Statutory Instrument No. 98 of 2020 remained a challenge due to limited rolling stock from Zambia Railways Limited (ZRL). Efforts to secure additional locomotives and wagons are underway, signalling potential improvements in rail capacity and future regulatory compliance.
