EABL headquaters in Ruaraka.Photo/businessdaily
East African Breweries Limited (EABL) has revealed that the replacement of DHL Supply Chain with Bollore Transport and Logistics Kenya as its distribution partner has resulted in savings of Sh134.4 million in the first year.
The revelations were made in EABL's annual report.
Bollore Transport and Logistics Kenya, a subsidiary of French multinational Bollore, was awarded the contract in June last year, bringing a close to the lucrative contract DHL had held since 2011.
“In the financial year (to June 2017) KBL Logistics carried out a successful transition to a new third-party logistics provider, Bollore,” EABL says in the annual report.
“The change will deliver an estimated cost savings of £1 million (Sh134.4 million) as well as increase logistics and warehousing efficiencies in the first year of operations alone.”
Bollore (formerly SDV Transami), which is also one of EABL’s long-standing hauliers, took over the extended role of warehousing at the 20,000 square metre facility that the brewer commissioned three years ago.
The firm now handles products when they leave the production line, oversees storage at the warehouse and loads them onto transporters’ trucks for delivery to distributors.