Duka Pal - Enabling trade in the Fast Moving Consumer Goods value chain
Innovation Tagline:
Project Keywords: #dukapal
Project Members
Project Description (no more than 1,000 words including graphics)
Fast moving consumer goods business in Kenya is such a way that manufacturers produce and sell to either distributors or wholesalers or directly to retailers. Distributors sell to wholesalers and also directly to retailers.
Duka Pal is a name translated to mean ‘Retailers’ Friend’. The intention of the company is to enable thousands of traders capitalize on opportunities by providing them with a collaborative technology platform. As the Digital Era sweeps across the globe, especially accelerated by the effects of the Covid 19 Pandemic, businesses are increasingly leveraging on the benefits of technology to optimize their operations and in turn profitability. Small businesses in third world countries are however being left out of the transformation because of; their lack of resources, lack of skill sets to develop, maintain and operationalize technology solutions and the fact that most of them are busy at the business development stage.
In an effort to include the left out traders, Duka Pal was born and the collaborative platform is the most needed tool. The platform is primarily biased towards automating the Fast Moving Consumer Goods (FMCGs) Value Chain.
By collaboration, it means that the platform works closely with all the value chain players from Manufactures, Distributors, Wholesale, Logistics and the Retailers. The automation of information flow in terms of demand and pricing then introduces transparency and in turn efficiency. The benefits of efficiency within the trade value chain comes with better product margins that are passed down to the last consumer.
The platform basically passes down the benefits by providing three basic functionalities to the value chain players;
- Order and Inventory Management
- Order Aggregation at Distribution Level
- Stock Financing
a. Problem Statement
An inefficient trade Value Chain is causing price unpredictability in the FMCG market and driving some players out of business as a result of cut throat competition from institutions with technology capabilities.
b) Existing solutions
Existing solutions that are emerging in the market are driving some players out of business as a result of cut throat competition due to technology capabilities.
c. Competitive advantage
By collaboration, it means that the platform works closely with all the value chain players from Manufactures, Distributors, Wholesale, Logistics and the Retailers. The automation of information flow in terms of demand and pricing then introduces transparency and in turn efficiency. The benefits of efficiency within the trade value chain comes with better product margins that are passed down to the last consumer.
Solution
a. Duka Pal
A collaborative platform that all FMCGs value chain participants can join can join and trade fairly with efficiency.
b. The solution is there to enhance the efficiency of already existing players without replacing them and removing them from the market
c. The minimum viable product that will be developed is a blockchain platform that would include manufacturers, distributors, wholesalers and retailers where the all buy and sell in a supply chain model
with all transactions supported by smart contracts.
Accomplishment and Team
a. We have innovative and enthusiastic team members that have come from different backgrounds finance, trade and IT.
b. We need support in developing blockchain solution, frontend development and developing the business model.
Project Plan
a. The goal for the prototype is to introduce 100 manufacturers, at least 200 distributors and over 10000 retailers who can use the platform to trade.
b. Our team will be on the ground proving user experience and developers are developing the solution based on user experience