Inside Dangote Cement’s Fleet Operations Success

Dangote Cement’s fleet operations success is unique but maybe because only the company could pull it off

Dangote Cement, Africa’s largest cement producer, had difficulty managing its distribution process in Nigeria. Being the largest cement manufacturer meant delivering its products to every corner of the country. However, it was difficult to manage this because of poor infrastructure and an underdeveloped third-party haulage sector.

Relying on external transporters was risky. Their capacity was limited at the time, roads were bad, and delivery times were unreliable. Moreover, there was little transparency, which meant little control over the haulage or logistics process. The leadership once noted, “Nigeria does not have a proper transport network.”

Dangote’s supply chain had little choice but to take the entire logistics and transportation process in-house, completely controlling its fleet operations. The solution? Vertical integration of the entire distribution process. The company built its own fleet. As of 2022, the company manages over 10,000 trucks, one of the largest fleets in Africa. Owning trucks allowed Dangote to deliver cement on time, every time, even to remote villages.

Challenges of Managing Over 10,000 Trucks

Considering the poor logistics conditions businesses across Nigeria have to deal with, managing ten trucks can be challenging. For ten thousand trucks? The challenge was unprecedented. Some of the main issues Dangote Cement faced included:

1. Maintenance Costs

Unfortunately, poor roads and other infrastructure meant the new trucks had to transport cement, typically heavy, in less-than-ideal conditions. It was common to find trucks breaking down consistently, which meant maintaining them came at a high cost. When repairs were needed, it had to be quick, or trucks would sit idle, losing money each day.

2. Driver Safety

Managing thousands of trucks in Nigeria comes with risks, such as accidents to cargo theft. Drivers often traveled long distances over difficult and unsafe roads. Because of the urgent nature of the hiring, many of them were untrained, which increased the risk of accidents.

3. Fuel Costs and Misuse of Trucks

Constantly rising diesel prices increased operating expenses dramatically. In many cases, it was difficult to plan operational expenses ahead of time because of fluctuating prices. Some drivers used trucks to transport unauthorized goods, leading to financial losses and damaged trust.

Overcoming the Challenges

The challenges were bad enough, but failure was not an option for Dangote Cement. Unlike a typical manufacturer, Dangote runs its transport arm as a core part of the business, treating logistics with “top priority” and a “scientific” approach.

So, how was the company able to overcome the challenges?

1. Building Its Own Driving School

If you think about it, the company controlled more trucks than any other logistics company. Setting up its own driving school was a no-brainer. In partnership with Nigeria’s road safety corps, Dangote Cement trained new drivers in safety, maintenance, and defensive driving at the Dangote Articulated Truck Driving School.

It was a success. In 2023 alone, it trained 50 special drivers, including 10 women, significantly reducing road accidents.

2. Advanced Fleet Monitoring Technology

Visibility and transparency can make all the difference during logistics operations. For Dangote Cement, the control it offered was absolutely necessary. The company installed GPS tracking and fleet management software for all its trucks to ensure that. With that, the company could monitor each truck’s speed, location, and fuel consumption in real-time.

This careful monitoring reduced unauthorized truck use dramatically.

3. Strict Policies Against Misuse

Dangote Cement set clear rules against illegal cargo transport. A patrol unit checks trucks regularly. There is a reward of ₦250,000 for anyone reporting misuse. Drivers who break the rules face arrest.

The approach was a success. In recent years, this approach has sharply lowered theft and unauthorized activities.

4. Switching to Cheaper Fuel

Initially, the company invested in diesel trucks, but with the unpredictable cost of diesel, Dangote Cement started moving its trucks to compressed natural gas (CNG). The company committed over ₦460 billion (about $280 million) in 2024 to develop CNG infrastructure and retrofit or acquire new gas-powered trucks.​ By late 2024, Dangote had already introduced 1,500 CNG-powered trucks, with more planned. This move cut fuel costs and made deliveries cheaper.

Key Takeaways from Dangote Cement’s Fleet Operations Strategy

Although Dangote Cement’s fleet operations approach went against the norm, it succeeded, especially for a manufacturing company. The success and approach offers clear lessons for logistics professionals across Africa:

1. Owning Your Logistics Gives Control:

You do not have to own your trucks, but taking a proactive approach to logistics gives you more control. If you wish to go that route, this could be done by enhancing communication and streamlining the collaboration process with third-party logistics providers. By owning trucks, Dangote gained control over deliveries. Logistics became a strength, ensuring timely deliveries even during shortages.

2. Training Is Essential

While many businesses and supply chains across Africa still scoff at training, it is increasingly necessary if you will have any chance at getting the best from your logistics and supply chain team. For Dangote Cement, investing in driver training paid off. Dangote’s driving school improved safety and reduced breakdowns. Good drivers keep trucks on the road longer and reduce accidents.

3. Use Technology Wisely

While there is much talk about leveraging technology solutions, finding the right fit can improve processes while reducing costs. The mistake many supply chains across the continent make is that they think technology is expensive so they get stuck doing things the traditional way. For Dangote, it was a no brainer. GPS and monitoring software provide exact fleet information. Dangote uses the data to save fuel, reduce misuse, and lower costs.

Logistics managers should prioritize technology to gain control of their fleets.

4. Plan Routes to Avoid Empty Trucks

Across the Nigerian highways, you would be hard-pressed to see a Dangote Cement’s trucks traveling empty. Trucks deliver cement outward and pick up materials like coal and gypsum on return journeys. This practice of robust route planning greatly improved trucking efficiency.

Wrap Up

Dangote Cement’s fleet operations journey from logistics challenges to fleet management leadership shows that clear strategies, disciplined execution, and smart use of technology can overcome even the toughest supply chain problems. By adapting these lessons, African logistics professionals can create stronger, more reliable transport systems that support sustained growth.