- Digitisation of processes is making it possible for micro-retailers to improve supply chains, financial linkages, and inventory management.
- Capturing data and processing it also presents an opportunity for micro-retailers to make better data-driven decisions.
Duka owners are riding on technology to undertake their day-to-day operations, improving performance, says the non-profit international development organization TechnoServe.
The firm says micro-retailers are using digital solutions provided by Retail Pay, Tanda, and Market Force in key areas of their businesses.
These include; Financial management, inventory management and financial services, which in turn are improving the performance of these businesses.
"Digitisation of processes is making it possible for micro-retailers to improve supply chains, financial linkages, and inventory management all of which are necessary to efficiently serve customers,” said TechnoServe Regional Programme Manager Alice Waweru.
She added that capturing data and processing it also presents an opportunity for micro-retailers to make better data-driven decisions.
These insights arose from the sixth stakeholder's forum hosted by TechnoServe and its partners, including Moody’s Foundation, Elea Foundation for Ethics in Globalization, MasterCard Centre for Inclusive Growth (MCIG), Citi Foundation and the University of Nairobi.
TechnoServe has additionally found that improving efficiencies coupled with other initiatives such as proper bookkeeping can increase micro retailers’ longevity and increase revenues by up to 45 per cent.
The organisation is additionally working on ways to improve micro retailers’ efficiency; including giving technical advice on how these businesses can aggregate to benefit from economies of scale.
Since 2015, the organisation has worked with 55,435 micro-retailers on improving their enterprises.
Additionally, 23,369 micro-retailers have managed to secure loans valued at $5.3 million (Sh648 million) through the assistance of TechnoSeve’s Smart Duka programme.
Micro-retailers can additionally fill the gap left by large multinational retailers exiting Kenya and the wider African retail market, especially if these businesses digitise their processes.
“There is a great opportunity for micro-retail shop owners as large multinational retail outlets exit the Africa retail market space but to efficiently fill this gap, duka owners must use technology to improve processes,” Waweru said