How can we scale distribution and sales networks that create opportunities at the BoP?


(Greg Lestikow) #81

Hello, this is Greg, Innovation and Performance Manager for the Global WASH team at iDE. Robert, I'll second your thought on the importance of technology in achieving scale. We sell hygienic latrines through a direct-sales team in several countries. In Cambodia, where we've achieved the greatest scale, we've benefited from a Salesforce-based sales management and tracking system. Our Salesforce guru, Gordon Lau, gave a really nice presentation on the system at the annual DreamForce conference. You can see it here: https://youtu.be/BXOUuGyHjNs?t=1825.

To Caroline, we are experimenting now with mobile money payments in our sanitation marketing project in Ghana, which also relies on a direct sales model with production being handled by local entrepreneurs (typically existing masons and concrete producers). Still early days, but the promise of mobile phone payments in areas where that infrastructure exists is certainly exciting.

Caroline Ashley said:

That's interesting Robert. Is there no opportunity for mobile phone payment? I agree that if is cash based, that is a huge constraint on scale.

Robert Mooney said:

Hi Jessica

One of our major challenges to scale is technology. In order to be profitable, we need to operate at a very low cost. There is a scale point where we cannot handle the volume of transactions manually, therefore all invoicing/credit management and control/payment receipts, etc. need to be managed digitally in order for us to grow in a controlled manner. However, there aren't many technology solutions out there that are tailored for the environments we're operating in and the type of transactions. In addition, cash collection is extremely expensive - and high risk for our both our entrepreneurs and our staff.


Jessica Davis Pluess said:

Welcome Rob1 It would be interesting to hear more about the Chakipi model in Peru and Haiti and what you've found to be some of the key challenges to scale.

Robert Mooney said:

Hi this is Rob Mooney. I am the Director of Global Operations for the Clinton Foundation's "Chakipi" ID businesses.


(Fernando Casado) #82

some areas where we think partnerships in the distribution channels could add value:

Improving distribution of FMCG products to last mile approach A partnership culture can improve and enhance infrastructures and networks, providing improved distribution systems for product delivery at the last mile. In Uganda, Living Goods leverages the network of the BRAC NGO to distribute its products, including a fortified porridge, to communities in urban and especially in rural areas

Creating and strengthening a joint culture among FMCG stakeholders Given the different voids and lack of synergies among partners within the FMCG ecosystem, enhancing a joint culture generated through partnerships could promote management systems oriented towards social impact, guaranteeing results, expanding knowledge generation, and information sharing, as well as spurring innovation and better communication systems amongst the players. The Senegalese dairy company, La Laiterie du Berger, collaborated with the Enda Graf Sahel NGO and the Ministry of Education, to develop a specific program based on the distribution of a fortified product to school-age children in Senegal. All stakeholders shared the common goal of improving the diet and nutrition of children in Senegal and have joined together to maximise their impact

Improving sustainability of the FMCG value chain Partnerships can reinforce the engagement of key players working on improved packaging design as well as the collection and recycling of waste. In Mexico, Bonafont partners with Pasa, Ashoka, and Mundo Sustentable, to reduce the company’s environmental footprint by using recycled PET to produce its bottles.

Diversifying and increasing resources through joint mobilisation One of the main challenges the FMCG sector faces, is the need for intensive Research and Development funding in order to provide infrastructure for logistics or to promote pilot cases for testing. Partnership building in this context can become a successful mechanism for increasing funding and promoting co-funding structures through new and non-traditional partners, to respond properly to such financing needs. Through financial support from GAIN and the International Finance Corporation (IFC), Tetra Pak was able to offer Reybanpac’s fortified yoghurt product to low-income consumers in a safe and affordable package, matching the product and the target group’s needs.


(Jessica Davis Pluess) #83

That brings us to the end of the live section of this discussion. Thank you so much to all our panelists for generously sharing their time and insights.

And thank you to everyone from the Business Fights Poverty community who joined in - we appreciate your support of the Inclusive Distribution Challenge and we look forward to continuing to collaborate with all of you.

You can continue to post comments here; please do include links to reports and other materials that you think might add to our exploration of what works. We also invite you to review our new report and share your feedback, examples and suggestions on next steps.

http://snipbfp.org/2gfwtmV

Thank you!


(Jesse Kirowo) #84

Pharmnet continues to expand opportunities at the BoP by ensuring that Pharmaceutical start ups by newly qualifying professionals are started on quality basis. We mentor professionals in our participating member pharmacies on business skills and best pharmacy practice.

We do this in the BoP areas to allow them acclimatize with the practice areas. Joining a professional network insulates start ups from the stand alone pressure and gives them good visibility and confidence from day one. Above all else, we help them purchase and pre-negotiated prices and also help them with credit facilities.


(BSD Consulting) #85

Thank you very much to all the panelists and the moderator for the thoughtful discussion and insights on this (very interesting) topic!

My name is Natalia Palacio and I am with BSD Consulting- a global sustainability consultancy firm focusing on business solutions and sustainable development. We hope to continue supporting organizations in their sustainability goals, including setting up and developing successful Inclusive Distribution Networks- something that we are sure has the potential to create meaningful impact at a global scale.


(Greg Lestikow) #86

Thank you, Fernando, for those great thoughts on partnership. I wonder if you've run into any good resources looking at organizations that sell and/or distribute a combination of FMCG and durable goods? Are there any challenges that such organizations should be ready to face if they go down that path?

Fernando Casado said:

some areas where we think partnerships in the distribution channels could add value:

Improving distribution of FMCG products to last mile approach A partnership culture can improve and enhance infrastructures and networks, providing improved distribution systems for product delivery at the last mile. In Uganda, Living Goods leverages the network of the BRAC NGO to distribute its products, including a fortified porridge, to communities in urban and especially in rural areas

Creating and strengthening a joint culture among FMCG stakeholders Given the different voids and lack of synergies among partners within the FMCG ecosystem, enhancing a joint culture generated through partnerships could promote management systems oriented towards social impact, guaranteeing results, expanding knowledge generation, and information sharing, as well as spurring innovation and better communication systems amongst the players. The Senegalese dairy company, La Laiterie du Berger, collaborated with the Enda Graf Sahel NGO and the Ministry of Education, to develop a specific program based on the distribution of a fortified product to school-age children in Senegal. All stakeholders shared the common goal of improving the diet and nutrition of children in Senegal and have joined together to maximise their impact

Improving sustainability of the FMCG value chain Partnerships can reinforce the engagement of key players working on improved packaging design as well as the collection and recycling of waste. In Mexico, Bonafont partners with Pasa, Ashoka, and Mundo Sustentable, to reduce the company’s environmental footprint by using recycled PET to produce its bottles.

Diversifying and increasing resources through joint mobilisation One of the main challenges the FMCG sector faces, is the need for intensive Research and Development funding in order to provide infrastructure for logistics or to promote pilot cases for testing. Partnership building in this context can become a successful mechanism for increasing funding and promoting co-funding structures through new and non-traditional partners, to respond properly to such financing needs. Through financial support from GAIN and the International Finance Corporation (IFC), Tetra Pak was able to offer Reybanpac’s fortified yoghurt product to low-income consumers in a safe and affordable package, matching the product and the target group’s needs.