Page 12 - Case Study Annual 2018
P. 12

LAA Platinum Award







             Cementing market share in



             a challenging environment







                Established 30 years ago, CIMERWA is Rwanda’s only integrated cement producer.
               It mines raw materials, produces clinker concentrate and packs and sells cement for
                                             general and civil construction.


















































            MORE THAN 70 percent of CIMERWA’s                  It had, therefore, become evident that the
            sales were done through 31 distributors.           distributor model had many pitfalls, such
            The distributor model arose as, in the             as disintermediation from the customer,
            past, CIMERWA’s value proposition was              limited control over market pricing, high risk
            insufficient to meet the market requirements.      exposure of losing significant volumes if a
            The distributor agreements were governed           distributor leaves to join a competitor and
            by a contract that binds distributors to           limited levers for CIMERWA to use to increase
            volume targets and exclusive distribution of       sales.
            CIMERWA product. Of the 31 distributors,              The Kigali rebate table and ex-factory
            only two were achieving their volume targets.      discounts that distributors enjoy were also


        10                                                               The Logistics News Case Study Annual 2018
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