“Gracie Davis’s recommendations saved Dangote Flour Mills (DFM) over $25,000 per tanker, freeing up capital that could be better used elsewhere.”
Tiger Brands / Dangote Flour Mills (DFM) – Tiger Brands Limited, a Top 40 JSE Limited company and South African consumer goods firm, whose footprint extends across the African continent and beyond, bought a 63% (Now 70%) stake in Dangote Flour Mills (DFM) of Nigeria in 2012. Tiger Brands bought a fairly robust DFM with a clear goal to increase its revenues and expand its reach into the Nigerian food commodities market by catalyzing and transforming the way its consumer goods were manufactured, stored and distributed in Nigeria. After a thorough supply chain analysis of its operations, DFM realized that they would need to overhaul the way they stored and distributed their consumables. DFM decided that they would overhaul a major portion of their commodities storage & distribution fleet, starting with their Storage Silos, Bulk Cargo Flour tankers, and medium to heavy-duty haulage trucks. The following are some of the main concerns DFM had about their acquisition of bulk flour cargo tankers:
Gracie Davis was called in by DFM to assist in acquiring these cost-efficient top-quality bulk cargo flour tankers conditioned on resolving their above-mentioned concerns. The fleet acquisition would allow DFM to transport their consumables problem-free across Nigeria despite the many physical hurdles in their path.
After years of research over the last decade, in this field; Gracie Davis came to the determination that Chinese industrial manufacturers had evolved in terms of the quality and originality of their products. Moreover, we discovered that some of the seller financial terms governing the procurement (i.e transportation costs) of these products, if negotiated properly, would make the purchase of these products a uniquely cost-effective purchase for our African client; in this case – Dangote Flour Mills.
As mentioned in the third point above, per rusting – DFM had been spooked by the corrosion of the flatbed trailers they had just bought (also from China), and so would need further convincing and guarantees that the manufacturing partners being recommended by Gracie Davis could in fact meet all of the DFM pre-requsites mentioned above. DFM wanted to make sure that the Flour Tankers they were looking to procure would not suffer from the same fate as the Flatbed tankers.
Consequently, Gracie Davis took a couple of DFM Executives on a 7-city/7-factory quality assurance tour of China to meet with some of our trusted Chinese manufacturing partners, all of whom are – literally – leading manfacturers of top-quality industrial supply-chain equipment, both in China, and in Asia at large. All Gracie Davis partners are ISO compliant (especially the 9000 & 14000 families); our partners meet all global manufacturing standards, and produce some of the most high-quality supply-chain products in the world, but (through Gracie Davis….) at a more affordable price.
DFM Managing Executive – Chris Immelman (3rd from right) and DFM Group Chief of Logistics – Deena
Moodliar (2nd from right), along with Gracie Davis Director – Olawale Akinsehinwa (3rd from left)
visiting the Beiqi FOTON Corporation in Northern Beijing, China.
After consultations with our partners, and with DFM, Gracie Davis submitted the following recommendations: