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​The last mile
Innovating an inclusive FMCG distribution model
Social Bites in Kenya established an inclusive distribution network for their affordable frozen dairy product. By creating mobile sales strategies, developing sales depots with processes and implementing technology at the sales depot - level, we enabled efficient operations from 25 sales depots in major cities of Kenya. The depots came to operate with a combined sales force of 350 exclusive re-sellers.
Creating the distribution concept
Social Bites was supported in establishing its distribution network from its inception. With the goal of introducing a Ksh 20 frozen dairy product, it embarked on creating a market route concept that would inspire and enlist individuals as exclusive resellers for the company. This approach aimed to build a scalable and distinctive distribution channel with true inclusivity.
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Given the informal nature of the target market, it was envisioned reaching consumers in high-density areas such as schools, and traffic hubs and market places. Achieving this required the development of mobile sales equipment capable of maintaining product freshness. Collaborating with local companies, this equipment was designed and implemented.
Incorporating technology into concept
The distribution concept also included establishing sales depots staffed by company personnel to oversee resellers who operated on a daily basis. Operations of these sales depots were refined by implementation of processes and ultimately creating a bespoke POS app for use at each depot. This app facilitated real-time stock monitoring and transaction tracking with resellers. The data provided by the app allowed the business to plan delivery schedules ensuring the stock levels of each SKU at the sales depots around Kenya would remain sufficient for effective re-seller operations. Furthermore, data on the re-sellers location in the market was captured making it easier to support the re-sellers while in the market.
Partnering with microfinance organization
To attract more individuals to the re-seller role, a credit scheme was introduced eliminating the need for initial capital investment. Partnering with a microfinance bank enabled the offering of financial inclusion services, including bank accounts and loan facilities to resellers. The sales depots became a platform to communicate to a growing network of re-sellers and drive incentives for the re-sellers in partnership with the bank. Since reliable data on the performance on each individual re-seller was captured through the introduction of technology at the sales depot - level, the bank partnership could be scaled to the benefit of all.
The beginnings of the training academy
Behind the scenes, training materials for sales depot staff was developed, aiming to promote best practices in depot operations. Through a "training of trainers" approach, sales staff were equipped to train resellers on various aspects of business development and product quality. This initiative evolved into the Social Bites Training Academy.
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Through efforts, the business expanded to encompass 350 exclusive resellers across 25 sales depots in various Kenyan markets. By providing meaningful employment and income opportunities to underprivileged youth while ensuring revenue generation for the company, this contributed to creating an inclusive and scalable route-to-market model.
