Coca-Cola Beverages SA to transition 106 distributors onto SAP

At its annual Local Distribution Partner (LDP) Lekgotla, Coca-Cola Beverages South Africa (CCBSA) announced that it will be transitioning 106 of its local distribution partners (LDPs) onto its SAP enterprise resource planning system. Once the transition is complete, all 143 LDPs will be using the SAP system.

The LDP programme is part of the CCBSA route to market strategy, enabling the company to reach its customers in the townships and rural areas. Working closely with the LDPs, CCBSA has ensured smoother delivery and customer service, but it has also created much-needed opportunities for entrepreneurs. Ninety per cent of LDPs are from previously disadvantaged groups.

“Not only do LDPs create work opportunities for themselves, they employ drivers, crew and warehouse staff from local communities. In a country like ours, every opportunity for job creation should be nurtured,” said Ntuthu Mabengu, Third Party Distribution Excellence Manager, CCBSA.

Mabengu said this was a highly significant move for the beverages distributor network as it meant that they will be able to deliver to all customers in their delivery area.

“Previously, certain of our customers could not accept deliveries from LDPs because they were not using the right system. We, therefore, anticipate that this would have the effect of expanding our LDPs’ customer base and creating new opportunities,” Mabengu said.

Addressing the local distribution partners Rakesh Rajbally, strategy and marketing director at CCBSA said despite a tough trading environment in 2018, the beverage company still managed to grow their customer service to townships through the LDP distribution by 7 per cent.

“This success and growth are attributed to the passion with which LDP partners have embraced this business opportunity and the mutually beneficial relationship and partnerships between CCBSA and LDPs,” Rajbally said.

As in previous years, this year’s Lekgotla provided an opportunity for CCBSA senior leadership to interact and connect with small business owners, and to discuss strategy, new products, how to grow businesses in a tough environment where consumer spend is low, and other matters of mutual interest, including crime. Some creative solutions like LDPs not carrying cash were presented.

Awards were also presented to LDPs that excelled during the past year.