Smart Mobile Solutions Playing A Pivotal Part to Kenyan Growing FMCG Logistics

Smart Mobile Solutions Playing A Pivotal Part to Kenyan Growing FMCG Logistics

September 13th 2019

“In the next few years, Kenya is likely to become a significant player in the African economy. Its rapid growth in private sector and populace sees the economy of the East African Giant show potentials of becoming a regional success story.”

Kenya’s central position, rapid population growth, and already diversifying private sector is enhancing its economy. The present economy stance of Kenya shows the East African Giant has the potential to become a regional success story. With the likelihood of becoming a major stakeholder in the African economy within the coming years, Kenya consumer purchasing power is on the rise. The increase in purchasing power remains a sure sign of a flourishing economy.

Superbrands Project Coordinator at Kantar TNS, Jawad Jaffer, noted its early 2019 release of the Top Super-brands in Kenya, says “As markets and brands evolve, consumer preferences play a more prominent role,”

The survey released in early 2019, shows a significant new market record in the consumption of Fast-Moving Consumer Goods (FMCG) brands and usage of mobile payments solutions. The notable increase also saw three FMCG brands making it into the top ten for 2019. The three FMCG brands include Pampers, Supa Loaf, and Weetabix.

Nevertheless, the exceptional nature of the country’s logistics and supply chain organization is allegedly causing problems that may affect the growing FMCG brands. These problems may cause the FMCG brands to struggle in, ultimately tapping into the prospects offered by Kenya’s economic growth.

The FMCG market in Kenya is quite different from any other. In recent times, various experts have to offer potential solutions to the looming problems facing the logistics of the FMCG market.

Commercial Director at MACmobile, Andrew Dawson noted “The secondary distribution network, in particular, is where many issues arise, as space is dominated by an informal main market where visibility and line of sight are minimal,”

Although the official FMCG market is mapped out, Andrew further adds it is “well understood and generally accessible by fleets and delivery trucks, with a line of sight easily achieved.”

The model for secondary redistribution is ripe for disturbance as Andrew further notes, “This network is widely dispersed, with retailers spread from supermarkets in metropoles to small stores in rural areas. The distributor’s ‘fleet’ may consist of large trucks, pickups, regular vehicles, mopeds and wheelbarrow. There are more than 60 000 informal retail outlets, where the lack of formality makes tracking, managing and monitoring extremely difficult and creates a significant line of sight gap,”

Andrew Dawson notes “These outlets do not typically deal in presales either, so although the delivery route is generally known and repeated (efficient or not) the consignment of stock placed on a delivery vehicle and sold along the way is not guaranteed to all be sold by close of business. The result of this is that drivers may not always be able to sell their wares at the same locations on every journey, and returning with unsold stock contributes significantly to the cost of sales.” 

Andrew Dawson believes the solution lies in harnessing intelligent mobile technology in tracking stock distribution trends. In doing so, the trends would offer better visibility into the supply chain for the secondary market.

Andrew Dawson - “The key to optimization is data that can be analyzed for intelligence. This, in turn, enables distributors to plot more efficient routes, identify patterns and trends, highlight risks and figure out how to mitigate them for maximum sales efficiency regardless of the market.”

Utilizing the power of mobile devices will be necessary for any business seeking to achieve massive digitalization in Kenya. Similar to other major African nations, the adoption of personal electronics leapfrogged that of PC. This move implies Africa has a more significant expression towards owning mobile devices.

The usage of mobile devices across Kenya has responded with innovative approaches to exploring the several prospects offered by the economic rise. It creates the capability for several long-lasting moves to be implemented.  MPost is one of such startups. The Kenyan startup, created in 2015, is seeking to revolutionize the countries approach of getting mails. With a platform developed, the startup lets users use their mobile phone number as an official virtual address.

In accordance to Disrupt Africa report, this “allows notifications to be sent to clients whenever they get mail through their postal addresses,”

The prospects for assembling mobile data intended for business analytics may also be vital to unlocking the economic potentials of Kenya. The General Manager of Coca-Cola East and Central Africa Franchise, Phillipine Mtikitiki, believes that if logistics and supply chain departments are handled right, they could as well become a great foundation for workforce growth and revenue generation.

Phillipine Mtikitiki says, “If more organizations looked at their supply chains from an innovation perspective, therein lie numerous opportunities yet to be tapped and platforms to create thousands of jobs.”