The informal trade can fundamentally alter the fortunes of brands in South Africa especially in light of a retracting formal retail sector. There is no doubt that the informal sector opens a significant economic opportunity for manufacturers’, retailers’, wholesalers’ and distributors’ products and services. The last mile is best described as the final step in the process of delivering a product from warehouse to Spaza shelf.
In addition to being a key element in customer satisfaction, the last mile is a products journey from warehouse shelf to Spaza shelf. It is the final step in the supply chain which is both the most expensive and time-consuming part of the process.
It invariably includes multiple stops with low volumes sizes specifically in emerging markets. In rural areas, delivery points along a particular route could be several miles apart. So there is both great opportunities but with it comes great challenges.
There are three solutions when considering last mile delivery:
- Insourced: bread, cigarettes, soft drinks and milk companies
- Outsourced: agencies or distributors for direct deliveries that are either dedicated or shared
- Default formal retail: wholesale retail which leverages off what already exists
Why Do Companie Fail?
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M4Jam is a Gig technology company that connects organisations to communities through its mobile platform. The platform enables businesses to quickly and cost-effectively evaluate, activate and optimise new or existing markets, even in the hardest to reach informal communities.