Page 13 - Case Study Annual 2018

prohibitive for small to medium size retailers
to buy directly from CIMERWA, thereby
pushing volumes to distributors. In order
for CIMERWA to be in a position to better
manage sales volumes, customer loyalty
programmes, market pricing and service and
support levels, it needed to migrate from
the distributor model to that of a delivered
service. The transition plan took place over
three months and was concluded by the end
of April 2017.
The challenge
The CIMERWA project team needed to
develop an innovative route-to-market
strategy that would achieve the following
objectives:
• Increase sales volumes from 10,000 tons
per month to 35,000.
• Ensure product availability in Kigali at a
lower cost.
• Reduce the dependency on the distributor
model, thereby breaking their stranglehold
on the market.
• Provide customers with a direct delivery
service with product available in a matter of
hours, not days.
• Grow the customer base significantly from
50 customers to 500.
The solution
CIMERWA adjusted its business alignment,
resourced up and implemented a change in
operating model. It increased sales reps from
two to six, effected an internal sales coverage
from 7am until 8pm, offered and managed
credit, and reduced factory turnaround time.
To redefine the distributor role, CIMERWA:
• Let distributor agreements run out.
• Transitioned the biggest distributor to a
transporter.
• Now uses distributors that support the
strategy.
• Changed the rebate table to discourage
large buying cooperatives.
When it came to pricing, there was a
radical restructure to rebate table. The
company discouraged cooperative buying
schemes and made it possible for the small
retailer to participate. Regional pricing is on a
delivered basis.
Further, a Transport Management System
The Logistics News Case Study Annual 2018
was implemented and a new corporate
transporter was developed. New trucks, fit
for purpose, were brought in. The company
developed the local transporter base and
insisted on adherence to payloads. A new
dedicated fleet with lower emissions was
introduced, and cycles were increased from
eight loads per truck per month to 20 loads.
The virtual warehouse concept was also
introduced.
Sales and marketing alignment meant
rebranding, product awareness promotions
and marketing campaigns. The brand was
revitalised. The sales process was simplified
The outcome
The successful implementation of the
transition plan contributed significantly
to improvements in CIMERWA’s strategic
positioning in the Great Lakes cement
industry, resulting in:
• Increased sales volumes from 10,000 tons
per month to 35,000.
• Ensured product availability in Kigali at a
lower cost.
• Reduced the dependency on the distributor
model, thereby breaking their stranglehold
on the market.
• Provided customers with a direct delivery
service with product available in a matter of
hours, not days.
• Grew the customer base from 50 to 500. •
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