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