Importance of the Company Distributor Networks in the Economy?
The process of ensuring the consumer receives the product from the manufacturer is done through by following a retail network.
A distributor network is important because it's the way a manufacturer gets products to stores and end customers. Many consumers make most of their purchases online and expect to receive their items promptly and in good condition. For this reason, it's important a producer's logistics system is efficient. Optimizing a distributor network through strategic planning and execution enables family business leaders to attract and maintain customers and generate operating revenue. A fast and reliable distributor network is beneficial to a business.
Family business distributors in different areas are therefore used to gain information and relay the same to the companies for appropriate strategy formulation, not forgetting creating thousands of jobs in the supply chain and their operations.
Its contribution to the economy of Kenya and to the Africa region?
Company Distributor Networks are well represented by both local and international franchises this includes Carrefour Kenya, Naivas, QuickMart among many others.
Role of company Distributor Networks in the Sectors: Population/Economy/Family
One of the roles of Company Distributor Networks is to ship and deliver products, business use various modes of transportation, like trucks and cargo planes. It's critical they package and load products in a way that keeps them safe throughout transport.
Family Business plan the most efficient routes for vehicles to transport goods from factory or warehouse locations to other distribution centers or the addresses of customers themselves. Family business having separate distribution centers for different goods like food, clothing and furniture. This allows them to streamline processes, reduce costs and deliver to population (customers) in a timely manner.
Company Distributor Networks Challenges: on the corporate governance, strategy, succession challenges faced by these companies
According to the Kenya National Bureau of Statistics (KNBS), Ambition, ample opportunity and tolerant investors provided the fuel for growth in the retailers’ expansion strategy. Uchumi borrowed to double its store footprint, Nakumatt Supermarkets also grew in the same period.
Rapid expansion without realizing their return on investment led to Uchumi’s insolvency hence suspension from the Nairobi Stock Exchange. Uchumi and Nakumatt were not prepared for the new phase of growth initiated by real estate expansion and this are some of the challenges among many:
- Implementing good corporate governance: The strategic management missteps that led to Uchumi and Nakumatt close down were exacerbated by poor governance.
- Implementing succession plan management:Transition of business from one generation to the next is often one of the least planned-for events within family businesses. Many do not have family business planning and governance frameworks in place to deal with succession issues, which can lead to uncertainty, conflicts, and divisions when the issue comes up in the business lifecycle,some of the business don’t survive beyond the first generation of owners despite the huge success at the beginning and this is seen in the retail industry like supermarkets (Mulley’s Supermarket)
IFFB offers programs such as succession management to the next generation and wealth management to implement change successfull.
Industry Association:
Some of the sectors that IFFB has partnered with is the National Association of wholesalers and distributors. We work closely to ensure proper governance and strategic management and execution is implemented.
Some Sector Clients we have Partners to support:
