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Ethiopia: Retail distribution is demanding lawful market hubs - FurtherAfrica
Africa Economy Ethiopia Retail

Ethiopia: Retail distribution is demanding lawful market hubs

A supply chain in the retail business is a network between different entities that basically incorporates suppliers, producers and distributors of a specific product in order to deliver to the final consumer.

It includes different activities, people, companies, information, and resources. The supply chain also involves the steps it takes to have the service or product from its original place. Most of a time, supply chain is developed by companies so that they can reduce their competitive costs and remain as authenticate in the industry.

In relation to steps of supply chain, it involves a sequence of steps to have the product/ service to the end user. It usually includes transforming crude items into finished products, moving and distributing those products to the end user. Mostly, parties floating in the supply chain include vendors, producers, warehouses, transporters, and of course super markets. The operation flow usually starts with receiving an order from the customer to supplying based on the request of the customer. In the contemporary supply chain business, it is displayed with having a modern market hub, like supermarket chains, with multi-task corporate standard operations that includes product development, marketing, operations, reliable distribution networks, healthy finance record, and customer satisfactions.

Galaxy Supermarkets, who are operating as a subsidiary of Addis Path Trading PLC, are one of the new entrants in the Ethiopian supply chain business. As per its General Manager, Mr. Fitsum Hailu, the supermarket is taking a model of the internationally known businesses (mainly US and Europe) by customizing the industry to the Ethiopian situation. He further said that they are focusing on the retail business in order to meet the requirements of the customer in an effort to be a lawful hub for the retail market chain.

As it is mentioned above, supply chain market hub is an important part of the business process that demands and requires a lot of skills and expertise. In the retail market hubs, when supply chain administration is done effectively, it can minimize company’s costs and boost corporate profitability. On the other hand, if one connection is spoiled or breaks down in the chain, it highly damages the rest of the chain in the business and be costly to the economy in general and to the business in particular.

Retail distribution, generally speaking, is the economic operation of ensuring the flow of products from production up to consumption destination. It is one of the methods to realize the economic concept of supply chain markets as a meeting destination of demand and supply. Therefore, the main principle of liberty of corporate entities should prevail, yet this liberty is maintained and operates within limits set by the law of the land. In this regard, retail distribution covered within the scope of competition law, which aspires to guarantee equal conditions of access to markets for corporate entities while supporting and protecting consumers.

In line with this, retail market hubs in Africa, like that of Galaxy supermarket in Ethiopia, who is operating in this retail sectors, should display high profile services by organizing their supply chain networks and strategies without altering the rules of competition in the capital market. Of course, it is fact that retailers in the market hub interact with wide stakeholders. Any issue affecting the operation of the sector also has an impact on other economic activities and their respective actors that are connected directly or indirectly to it. Accordingly, responses to challenges coming from these interactions in the sector should take into account the cross-sectoral influence as well as the complete impact on the economic chain of the country.

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