Page 12 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Chairman's Letter cont’d

growth platforms, especially in the carbohydrates be more customer centric and value focused. This led to
category that will improve agricultural productivity in significant savings in delivery costs despite increase in
Nigeria, through commercialisation of locally available sales volume. To facilitate intra-factory input supply, we
inputs for foods production. invested in additional haulage trucks, with positive

In line with our strategy to increase supply of raw impact on Pasta production and sales performance. In
administration, we continued to simplify and
materials from local sources, we have been working
standardise our everyday processes. This resulted in
through the Flour Milling Association of Nigeria
our administrative expenses reducing by 5%.
(FMAN), to improve local supply and production
capacity of wheat. FMAN has been working with the Overall, our selling, distribution and administrative
government to invest in research to improve seed expenses reduced by 4% year-on-year, despite double
varieties and technology while also donating seeds and digit inflation during the period. We will continue to
improve operational efficiency and productivity by
“ Our aim is to offer a broader leveraging our size, and scale, and integrating the
activities of our supply chain, manufacturing,
portfolio of food products
warehouse, and distribution functions.
manufactured from a wide
range of raw materials drawn Developing and Scaling Core Capabilities
from local sources The global pandemic did not slow us down. We
“ continued to upgrade our ability to capture and convert

intelligence in market trends to support product
equipment to reduce post-harvest loss and assuring portfolio and respond with speed to rapid changes in the
offtake for produce that meets agreed criteria. While industry as well as those brought about by the
progress has undoubtedly been made, more work has pandemic. This capability enabled us to adequately
to be done to make Nigeria self-sufficient in wheat define go-to-market strategies, fed continuous
production. evolution of our pricing structures and ultimately
improved customers' performance. As a result, we were
able to gain share in key markets.
Embedding a Culture of Everyday Efficiency and
Effectiveness Recognising the need to improve our retail offering and
address rising consumer demand for food at home, we
We fuel our growth agenda through disciplined cost
are deepening our capacity to sell at retail. We
management and improving operational efficiency in all
partnered with specific customers who worked with us
areas of the business. This approach combined with
to increase our retail presence. Our products are now
volume growth, affords us the opportunity to free up
available in thousands of outlets and consumed in
resources to re-investment in product innovation, and
millions of households. We also offered combination of
brand building, while creating value for our all our
our different products in packs, the Combo Pack,
stakeholders.
targeted at families. This Combo pack previously a
The company made tangible progress on its journey to seasonal offering continues to gain acceptance and
becoming an advantaged low-cost producer, anchored patronage all year round. In the year ahead, we will focus
on manufacturing and supply chain efficiencies. We on embedding appropriate technology that enables us
achieved 28% reduction in conversion costs year-on- to measure the value of consumer and customer
year across our factory locations. This was touchpoint, monitor the effectiveness of our
underpinned by record capacity utilisations across the promotional activities while effectively meeting the
Apapa and Sagamu factories. In procurement, needs of consumers. We will also implement channel-
contracts negotiations and strategic sourcing for specific category management methodologies focused
packaging and raw materials, helped reduce costs and on differentiated sales, and relevant innovation. Our aim
complexity. We doubled the warehouse holding is to empower our teams to make smarter, quicker
capacity for some of the consumer food products to decisions by transforming data into an accessible,
enhance continuous production. We also overhauled reusable asset.
and streamlined our transport and products delivery to

World of Possibilities HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 13