Manual distribution is traditional, but tradition no longer works in the 21st century, whether in the West or in Africa. One company realized this and set out to use technology to transform distribution across Africa. In this article, we explore the story behind how and why TradeDepot digitized distribution and the lessons for African supply chains.
Most African supply chains still rely on face-to-face orders, handwritten records, and physical cash. Many experts claim these manual methods “work fine.” They believe technology complicates rather than solves. They’re wrong.
TradeDepot’s success proves this belief limits growth. The company built Africa’s leading B2B FMCG platform by digitizing every step of the distribution process. Small retailers, once impossible to organize, now access inventory, credit, and delivery through an app. This changed everything.
Understanding the Old Distribution Problem
Manual FMCG distribution across Africa suffered from five major failures:
- Fragmented markets: Nigeria alone has 1.2 million small retailers. Reaching them individually proved too costly.
- Too many middlemen: Each link inflated prices. Retailers paid more while profits shrank.
- Zero visibility: Brands had no data on retail demand. Planning was guesswork.
- Inefficient logistics: Trucks made half-empty runs. Retailers closed shops to buy stock.
- No credit: Small shops lacked working capital. They bought small, sold small, and stayed small.
These problems blocked progress and stagnated many supply chain operations across the continent. It was clear that technology was the only real solution, and that was what Trade Depot saw. A way to leverage technology to solve the problems.
Read more: How Pep Stores’ supply chain built a cost-optimized operation.
The Direct Digital Distribution System
TradeDepot became the leading B2B FMCG platform in Africa by pioneering and ensuring the digitization of FMCG distribution. They achieved this by creating a full-stack solution that included:
Direct Marketplace
- Retailers order straight from manufacturers using TradeDepot technology.
- No sub-distributors. No price markups.
Multi-Channel Ordering
- Smartphone app (ShopTopUp) for tech-savvy shops.
- USSD and WhatsApp ordering for others.
- A call center for shops without digital tools.
Onboarding Agents
- Field staff recruited retailers.
- They explained pricing, trained users, and built trust.
Logistics Integration
- AI logistics Africa tools grouped deliveries by location.
- Routes adjusted daily for efficiency.
Credit Through ShopTopUp
- Retailers received buy-now-pay-later credit.
- TradeDepot scored risk using order history.
Data and Analytics
- The system tracked inventory, popular products, and delivery timelines.
- Retailers got restock suggestions. Brands got real demand data.
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Barriers TradeDepot Digitized Distribution Faced
No innovation scales without obstacles. TradeDepot digitized distribution faced many but they always had an answer or a way out. However, the company was able to succeed because these solutions matched local realities.
Technology Skepticism
Retailers feared hidden costs. However, the onboarding agents gave demonstrations that helped them understand the solution better, and then the price transparency built trust.
Connectivity Gaps
TradeDepot built offline app functions. This way, the poor internet connections in remote areas were not so much of a problem. The Orders could sync later when there was connectivity.
Logistics Complexity
Infrastructure and security have been problems, although hopefully, they will change in the future. To navigate them, TradeDepot relied on AI-based routing to cut fuel waste. Local drivers used efficient paths. The correct application of fleet tracking improved last-mile delivery performance in Africa.
Credit Risk
Without a reliable credit system, it was difficult to establish which businesses were trustworthy. And so offering them credit was difficult. However, TradeDepot was able to limit exposure by offering credit to retailers with good history , and then scaled the offer as more business transactions went on between the two. This way, defaults stayed low.
Measurable Impact of TradeDepot Digitized Distribution
Despite the challenges, TradeDepot’s digtized distribution created benefits that manual methods never could. The company’s approach delivered the following:
- Lower Prices. Cutting middlemen reduced product costs.
- Market Data. Brands saw real sales numbers for the first time.
- Retailer Growth. Shops using credit grew order volumes by 200%.
- Faster Deliveries. Optimized routing improved FMCG supply chain efficiency.
- Women Empowerment. Most micro-retailers were women. Technology unlocked their growth.
Lessons for African Supply Chains
TradeDepot’s Direct Digital Distribution System offers lessons every African supply chain can apply. Some of the key lessons to learn from the company’s success include:
- Aggregate Demand Digitally: Use B2B distribution technology to group small orders. This lowers transport costs.
- Capture and Use Data: Build supply chain visibility Africa-wide. Data cuts stockouts and overstock.
- Offer Flexible Ordering: Support apps, USSD, WhatsApp, and phone calls. Include every retailer.
- Optimize Logistics: Adopt AI logistics Africa tools. Cut fuel and delivery times.
- Provide Credit Solutions: Offer embedded finance FMCG distribution models. Let retailers buy more and grow.
- Educate and Support: Use field agents or customer service to teach technology use. Build trust.
- Scale Regionally: Design tech platforms to expand across countries, as TradeDepot Africa expansion proved possible.
Read more: A complete guide to people management in supply chain.
How African Supply Chains Can Start
Digitizing informal retail does not require a billion-dollar budget. It requires the will to start. Supply chain technology in Nigeria or any African market must begin small and scale.
- Collect sales data from day one.
- Introduce basic route planning tools.
- Train your team and customers on using new tools.
- Pilot credit solutions with your most trusted retailers.
- Launch a simple digital ordering platform for retailers.
Wrap Up
TradeDepot digitized distribution of FMCG not to chase trends but to fix real-world failures. They proved technology makes small retailers visible, efficient, and creditworthy. The company built Africa’s most advanced B2B FMCG platform by proving that modern tools are not luxuries for the supply chain. They are necessities.
Every supply chain leader in Africa now faces a choice. Stay manual. Or move forward. Those who embrace technology will thrive. Those who delay will vanish.
Obinabo Tochukwu Tabansi is a supply chain digital writer & ghostwriter helping professionals and business owners across Africa explore various strategies that work and learn from the success and failures of various supply chains across the globe. He also ghostwrites social content for logistics & supply chain businesses
