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Nigeria Distributor Assessment and Distribution Model

Situation:

A personal care multi-national was interested in expanding its operations in Nigeria. They were mainly trading (exporting) and were interested in establishing a more permanent base in the country with a focus on growth. They were eager to explore opportunities not just in Lagos but also in the rest of the country.

The Supply Chain Lab approach:

The Supply Chain Lab (TSCL) agreed with the client on the key deliverables and priorities. TSCL developed a scorecard and assessed the potential distributors taking into consideration management skills, category fit, fleet, warehouse, technology and procurement capability. In addition, the team analysed the existing consumer goods distribution models employed in the country, taking into consideration the cost to serve and investment requirements.

Results:

The client emerged with a national Route-to-Market (RTM) strategy and clear recommendations about the optimum partners in each region. The RTM strategy followed a clear phased approach, supported by distribution model options. The output exceeded the customer’s expectations and ensured an accelerated roll-out.