Alma

Commodities
Sales
Logistics
Strategy
Re-Design

by Michael
The Problem
Lets Start with the Current State...but first.

1
“
▪ ‘’.. the tendency to want to start
analyzing the data, to get on with
the job, before every
▪ conceivable facet of information
has been obtained. Then
especially one needs to discipline
▪ his mind not to start chugging
away in second gear before first
obtaining all the benefits of
▪ first gear. ‘’
▪ Advice of a Businessman to
His Son
Current State the Hard Stats- High Distribution Costs

▪ Alma Commodities – Ksh. 40 per kg

average
Market Leaders – Ksh 7 per kg Max
▪ Market Challengers- Ksh 4 per kg
We are up to 10 times more inefficient than
the competition.

(source monthly accounts-2016)

LIMITED DISTIBUTION CAPACITY

▪ Currently only one vehicle with capacity

of 400kg
▪ 4 trips per week
▪ Max coverage +200 KM radius
▪ Only 1 driver

This means we are limited in geographical

coverage
LOW SATISFACTION RATE

▪ Current OTIF is at 32% only

▪ Due to diverse delivery areas and limited
distribution capacity.
▪ Destroys public perception of efficiency,
gives rooms for competitors to capture m
ore market.
▪ Marketing not done.
 THE IDEA
Let us focus on our core competencies, and
strategically outsource.
1. Offer Rebates for Ex-Factory Collection

CURRENT PROPOSAL
1. We discourage Ex- 1. Encourage Ex-Factory
Factory collections Collections, offer a Ksh 5
per kg rebate for every
collection made for a
minimum of 100kg.
USE THIRD PARTY LOGISTICS - 3PL

CURRENT Proposal 1 Proposal 2

We do all the Use PSV to major For goods in excess
deliveries ourselves towns to deliver of 100kg use
goods (point to Courier services
point for up to a targeting SMEs,
maximum of 100kg. charging Ksh 5 per
Calculated Cost is kg for 100 km.
Ksh 2 per kg per 100
km
3. SEPARATE SALES FROM MARKETING

Selling is the physical

delivery of goods.
Marketing is the creation
of awareness.
They are not the same.
Deploy Marketing Execs
or Reps closer to the
target market,
minimizing costs.
Use contract Marketing
reps with less frequent
visits by Execs.
 IMPACT

EXPECTED IMPACT
Use charts to explain your ideas

Upto 50%
90%
White
min
Gray
40%
Black
Down UP UP

Distribution Capacity Satisfaction Rate

Distribution Cost
The Figures to Back this up

REBATE 3PL PSV

Current
(Mums) (Vision) (Likana

Cost per kg
avg 40 5 4 7

As per 5000 kg 800 kg

Capacity 400
customer max max

OTIF 32% 100% 90% 80%

6,480,000/-
Money Not Spent.
6,480,000/-
That’s a lot of money

30,000 kg
Monthly Capacity

100%
Without spending a dime.
Credits

Special thanks to all the people who made and

released these awesome resources for free:
▪ Presentation template by SlidesCarnival
▪ Photographs by Unsplash & Death to the Stock
Photo (license)
IMPLEMENTATION STRATEGY

▪ Activity Plan

Execute
T= +3 weeks,
Issue
Agree Rates Responsibilities
T= +2 weeks, Agree on drop
Sign Contracts off points and
with Risk cut-off times.
Mitigation
Prequalify measures in
3PL and PSV, place. Involve
Conduct Risk Insurance.
Assessment
T=0
Thanks!
Asante Sana
Credits

Special thanks to all the people who made and

released these awesome resources for free:
▪ Presentation template by SlidesCarnival
▪ Photographs by Unsplash & Death to the Stock
Photo (license)
▪ Background – Microsoft
▪ Statistics mining by HWK
▪ Material offered under the Creative Commons
licenese.