Sep 20, 2012
Coca-Cola Sabco, one of the The Coca-Cola Company’s largest bottlers in Africa, utilizes a manual delivery approach to reach small retail customers located in densely populated areas. This innovative distribution model has provided over 2,200 individuals, many of whom have never owned a business before, with the opportunity to run their own micro distribution centers (MDCs) in Eastern Africa. In addition, the MDC model has created over 12,000 new jobs and provided income to owners and staff who in turn support over 41,000 dependants.
The Coca-Cola Company utilizes a wide range of distribution methods to ensure that consumers around the world have access to its products. In East Africa, CCS has adopted a manual delivery approach working with small-scale distributors to deliver products to small-scale retailers in densely populated urban areas. These distributors previously had limited economic opportunities and were un-employed or underemployed, working part-time or in the informal economy. As many as 75% distributors in Ethiopia and 30% in Tanzania never owned a business before. Most of the retailers they serve are kiosks or small stores serving neighborhood customers, and have enough funds and space to manage a few days’ supply at most. The Manual Distribution Center (MDC) approach was first developed as a pilot with 10 MDCs in Addis Ababa, Ethiopia, in 1999. By 2002, the company had implemented the successful model on a broad scale throughout its markets in East Africa.