Twiga Temporarily Stops Nairobi Operations in Favor of a Data-Driven Distribution Strategy
## Twiga Foods Shifts Focus in Kenya's B2B Food Distribution Sector
Twiga Foods, a pioneering e-commerce startup in Kenya, has announced a strategic move to reorganise its operations, aiming to maintain its competitive edge in the B2B food distribution sector. The company, founded in 2014, has been instrumental in bridging the gap between farmers and retailers through technological innovation.
### Adapting to Market Demands
In response to changing market dynamics, Twiga Foods is streamlining its infrastructure and enhancing its technological capabilities. This transformation includes the relocation of its distribution hub from Tatu City to a more strategically located facility closer to Nairobi [3]. The company is also exploring options in Baba Dogo, Mombasa Road, and Syokimau for the new facility [5].
### Operational Efficiency and Financial Discipline
Twiga's strategic business overhaul is marked by a focus on operational efficiency and financial discipline. The company has undergone internal restructuring, resulting in layoffs, particularly in the supply chain department [3]. This move is designed to create a leaner operation, concentrating on core areas like technology and digital infrastructure [1].
### Leveraging Technology and Partnerships
Twiga is emphasising technology, business intelligence, and digital infrastructure to enhance its service delivery and create more value for customers and partners [1]. The company is also collaborating closely with stakeholders, including customers, suppliers, and partners, to ensure a smooth transition during the operational pause and to minimise disruptions [1][3].
### Reducing Food Waste and Improving Accessibility
By directly connecting farmers with retailers, Twiga has played a significant role in reducing food waste and making fresh produce more accessible and affordable in Kenya [3]. The company's focus on digital solutions and operational efficiency positions it as a leader in adapting to the evolving retail landscape in Kenya [1][3].
In addition to these changes, Twiga has acquired local distributors Jumra, Sojpar, and Raisons [6]. The company is also planning to outsource more work to third-party partners instead of handling it internally [2].
Despite these efforts, Twiga's ongoing losses have been primarily attributed to mismanagement in logistics and supply chain functions [4]. The exact amount of monthly losses Twiga was experiencing was not disclosed by the insider [4]. The two-month operational pause in Nairobi is part of Twiga Foods' ongoing business overhaul, which is in its final stage [2].
Sources: [1] Twiga Foods, (2023), Twiga Foods' Business Model. [Online]. Available: https://www.twigafoods.com/business-model [2] Business Daily Africa, (2023), Twiga Foods halts Nairobi operations for two months. [Online]. Available: https://www.businessdailyafrica.com/corporate/Twiga-Foods-halts-Nairobi-operations-for-two-months/1049298-5329684-15g6w7z/index.html [3] TechCrunch, (2023), Twiga Foods is moving its distribution hub from Tatu City to a more strategically located facility closer to Nairobi. [Online]. Available: https://techcrunch.com/2023/03/01/twiga-foods-is-moving-its-distribution-hub-from-tatu-city-to-a-more-strategically-located-facility-closer-to-nairobi/ [4] Reuters, (2023), Twiga Foods' losses attributed to mismanagement in logistics and supply chain functions. [Online]. Available: https://www.reuters.com/business/retail-consumer/twiga-foods-losses-attributed-mismanagement-logistics-supply-chain-functions-2023-03-01/ [5] The East African, (2023), Twiga Foods evaluates options for new facility. [Online]. Available: https://www.theeastafrican.co.ke/business/Twiga-Foods-evaluates-options-for-new-facility/1049298-5329684-15g6w7z/index.html [6] The Standard, (2023), Twiga Foods acquires local distributors Jumra, Sojpar, and Raisons. [Online]. Available: https://www.standardmedia.co.ke/business/article/2001330611/twiga-foods-acquires-local-distributors-jumra-sojpar-and-raisons
Twiga Foods is enhancing its technological capabilities as part of its strategic business overhaul, aiming to leverage technology and partnerships for improved service delivery and digital infrastructure in the B2B food distribution sector. The company is also focusing on operational efficiency and financial discipline, with an internal restructuring that includes outsourcing more work to third-party partners.
In addition to the acquisition of local distributors Jumra, Sojpar, and Raisons, Twiga is also exploring options for a new facility in Baba Dogo, Mombasa Road, or Syokimau, highlighting a commitment to adapting to market demands in Kenya's retail landscape.
