venture that will lead to automatic product replenishment on the Uchumi shelves. This venture has been made possible by the integration of the two companies ERP (Enterprise Resource Planning) programs. The pilot phase of the project which involved three Uchumi branches has been successfully implemented and a rollout to additional branches is expected soon. The venture enables Uchumi and Bidco to monitor sales on a real time basis, calculate stocking level at each Uchumi outlet and replenish stocks once a threshold point in the sales has been reached.

“By implementing this program, we are now able to access real-time demand data and dynamically source inputs from within our supply network. We have also reduced lead times and improved on our cash to cash cycle. This system will further improve our distribution system which is geared towards increasing customer satisfaction through on-time deliveries and quick feedback. This system has a lot of cost benefits as it reduces inventory in-house as well as throughout the supply chain.” Said, Mitul Shah Bidco’s Team Leader for Sales and Distribution

The introduction of the solution will enable Uchumi to reduce demands on working capital occasioned by excessive stockholding, cut stationery, telephony, man-hours and minimize incidences of breakages.

According to Uchumi’s IT Manager, Mr. Charles Thuku, the auto replenishment solution enhances efficiencies and will add value to customer service. “Delivery of products to the shelf and selling stock at the shortest time is a critical objective of both the retailer and manufacturers and it is prudent for any entrepreneur to invest in systems that enhances efficiencies and cuts costs. The customer is guaranteed that the product will be on the shelves on time” Said Mr. Thuku.

“For Bidco, the market scene is increasingly becoming highly competitive and to stay ahead we have to keep on improving our systems and aim at a world class way of doing business. In the current environment, customer demand creates a pull system throughout the supply chain. We have therefore created a fully integrated system by synchronizing not only our manufacturing outfits but the entire supply chain across our operations from raw materials processing all the way to the shelves.” Added Mr. Shah

Uchumi’s ERP system which was implemented in 2003 provides a platform for the chain’s suppliers with correspondent IT Systems to interface. According to Uchumi management, suppliers such as Unilever Kenya – a leading manufacturer of household products are prepared to join the bandwagon. Automatic replenishment solution is used by leading retailers world-wide to plan, order and stock products using data gleaned from the stores. The solution is most effective for retailers with numerous store stores as it enables both retailer and a supplier of goods to cut on the numerous order processes across all branches. Bidco implemented a Business to Business Enterprise system in 2001. The BaaN solution enables Bidco to manage and monitor distribution of its vast array of products across the country.

Ends