Reasons distributors in emerging markets fail

Implementing a 3rd party distribution system in emerging markets can be a challenging undertaking.  Below are a number reasons why distributors in emerging markets fail, and warning sign to look for. Financial management – A few years back we ran a project in for a consumer packaged goods company in Sri Lanka. During our assessments [...]

Vendor Managed Inventory (VMI) for SMEs in emerging markets

Where information and visibility is lacking, inventory often takes the place,  all at a cost. Emerging market operations are a case and point. Even though Vendor Managed Inventory (VMI), also known as a continuous replenishment process, has been around since the 1980s, popularized by Wal-Mart and Proctor & Gamble, it has yet to take off [...]

Feeder towns in Africa

For centuries feeder towns and markets (e.g. silk route) have played an important part in trade. Even today, understanding how these markets and towns function is important to any business wishing to make an impact. What are feeder towns? – Feeder towns are hubs for product distribution, e.g. Mercato in Addis Ababa. Customers and retailers [...]

Two-tier distribution in emerging markets – telecom and electronics

What is a two-tier distributor? They buy from manufacturers and sell to resellers. What are their competitive advantages? Two-tier distributors can expand the retail footprint in emerging markets. They normally sell a diverse range of brands and control a large percentage of the local distribution in the telecom and the computer industry. Two-tier distributors understand [...]

Update – Coca-Cola’s Micro Distribution Model

There is increased interest in the Coca-Cola Micro (or manual) distribution model, first launched in Ethiopia in 1999. The model has recently been selected by the IFC as one of “Inclusive Business Solutions” focused on distribution. On the 7th and 8th of October I will speak at the IFC conference titled “Inclusive Business Solutions: Expanding [...]

The Zambian logistics pilot project (I)

The World Bank, The UK Department for International Development, and USAID recently released the results of a logistics pilot project in Zambia, in which the availability of various medical supplies was improved. This is the first of a three-part series in which I talk with two of the team members and finish with some personal [...]

Telecommunication – distributor learnings

I am currently in Ghana and evaluating a distributor network for a company in the telecommunication industry. Some key learnings from my trip to date:     Be aware of the distributor powerbase – competent distributors are key to most supply chains and collaboration is critical in expanding your footprint. However, distributors should not hold [...]

Better drug supply chains keep thousands more children alive

Zambia Study Shows Stronger Supply Chains for Key Drugs can Reduce Child Mortality from World Bank on Vimeo.

Slums – Beyond the perception

Personally, I am not very fond of the term, slums. I think it is loosely defined term for a type of informal market. However, with all their problems and challenges there is a lot to learn from slums from a business perspective. Entrepreneurism – slum areas are highly entrepreneurial, with a high degree of business [...]

Africa mobile technology – learnings from the not-for-profit sector

Mobile phone networks have proven to be a vital piece of technology for Africa. The technology is playing an important part in bridging the infrastructure divide and assisting entrepreneurs and businesses to improve efficiency. The mobile revolution is still in its infancy and organizations are slowly adopting new tools and technology to conduct business.  The [...]

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