Tag: MACMobile

Digitalisation within the retail space often goes hand-in-hand with disintermediation. While removing the middleman can be beneficial, in the case of the South African main market, it can lead to damaged relationships and a lack of trust between spaza owners and wholesalers.

Van sales make up the vast majority of the route to market in East Africa, and the market itself is complex and revolves around cash purchasing. There is lack of visibility throughout the chain, which makes orders and sales difficult to track, and it is challenging to accurately forecast demand.

‘Line of sight’ in the supply chain has taken on a new meaning in the age of Artificial Intelligence (AI) and Machine Learning (ML). Rather than simply tracking stock movements and using this data to attempt to influence the end consumer to buy a product, there is now massive investment in trying to ‘own’ the retailer from a data perspective.

Spaza shops are at the heart of many South African informal communities, selling small quantities of everything, from groceries and home care products to medication and cleaning supplies. For the millions of citizens who live hand-to-mouth, the role of the spaza shop as a bulk breaker is a lifeline.

The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products.

The ability to manufacture ‘just enough’ stock to cover orders and deliver ‘just enough’ product to every retailer is the optimal supply chain scenario in the Fast-Moving Consumer Goods (FMCG) industry. This is known as Just in Time (JIT) manufacturing and delivery. However, while there are many benefits to this type of hyper-optimised supply chain, achieving it has historically proven to be challenging.

Changing consumer behaviour and creating loyalty throughout the supply chain are areas every FMCG manufacturer is trying to achieve. However, these are the last links and typically the most difficult elements to manipulate. This is due to challenges around validating sales – you can only reward loyalty if you can verify the purchase.