Flour Mills of Nigeria is one of Nigeria’s largest companies outside of the oil industry. It was founded in 1960 as a flour milling company but has since expanded into cement, fertiliser and shipping. FMN’s flour mill in Lagos is one of the largest in the world and employs state of the art Swiss milling equipment capable of milling 6,000 tonnes of flour per day.
Over the years FMN has invested heavily in production and its products have an excellent reputation for quality. Sales have grown consistently with more growth forecast and there was a growing realisation that the logistics of the operation would not keep pace with this growth nor with the growing competition without change.
In particular, although FMN were loading flour direct from packaging onto the outbound vehicles for direct delivery to customer, the logistics infrastructure in Nigeria was proving too unreliable for an acceptable level of customer service to be provided. In effect just-in-time was turning out to be much-too-late. At this point THE LOGISTICS BUSINESS were called in to assess FMN’s logistics processes and provide a high level overview of what needed to be done to improve efficiency and customer service.
The work involved both interviews with the majority of stakeholders within the business and with a range of customers both large and small. On conclusion a range of improvement opportunities were presented that covered most aspects from inbound through production to the outbound supply chain.