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Entrepreneurship: How To Become Nestle Food Distributor In Nigeria

By Ajibola Abayomi,

July 21, 2018.

About Nestlé Nestlé’s purpose is enhancing quality of life and contributing to a healthier future. We want to help shape a better and healthier world. As the world’s largest Food and Beverage Company, we also want to inspire people to live healthier lives.

Nestle Shared Value Concept

The concept is anchored on the below principle:

We believe that our company will be successful in the long term by creating value, both for our shareholders and for society. We call this approach Creating Shared Value (CSV). This is the principle for how we do business. We therefore, work alongside partners to create shared value – contributing to society while ensuring the long-term success of our business. By doing business this way, we touch lives every day across our value chain.

Distribution

If you have ever had the urge to start a distribution business in Nigeria, do not try to ward it off. It might work out so well for you. You will only need to pick up a sheet, and outline what it takes to get started. And here, I’m, to take you through the process of becoming a business distributor. Especially in a developing country like Nigeria where the opportunity lies more.

 

Process To Start A Distribution Business in Nigeria

The most difficult distribution startup decision to make is choosing a product to distribute. And of course, that is really a personal decision, because your desire to start a distributing business may have been inspired by something like “passion.” In that case, there is no telling you what to go with. But what if not? Then decision making comes into play. You will really have to make a choice depending on what you can do.

Another issue you will have to decide about is whether to distribute a new product, or an already existing one. The advantage of already existing product is: you don’t have to introduce your product to people, they have already known it. On the other hand, a new product requires that: you make it known to people first.

  1. Create A Business Plan

Outline a distribution process that will define your business plan. If you are distributing an already existing product, draw a pattern of competition. Those who have been there before you may have amassed a lot of influence, therefore, figure a way to fit into the system. Basically doing something different from what people are used to, (Using a different approach) will help.

 

  1. Raise Fund

If you have the best distribution business plan there have ever been, and don’t have the money to execute it. It is as good as not having at all. Therefore, raise the fund you need to implement every of your plan.

  1. Name Registration

When you have made up your mind on what product to distribute, make a name registration. It is ideal in furthering your business. And most company may require that their distributors have a registered business.

 

  1. Partner With A Manufacturer

Your source of supply must be a manufacturer of the product. First of all, you need to work out terms and conditions of your business relationship. That applies more when you are not importing the product. Overseas partnership takes more time than what is obtainable in ones country.

Local manufacturers may have less requirement to partner with you. While the story may all be different overseas.

 

  1. Rent A Warehouse

You will need a big place to hold your goods. In fact, it is a starting point of your distribution career. A base, where you can be located by your customers is one of the most important aspects of your distribution endeavor.

 

  1. Get Distribution Tools

Since your job as a distributor is to move needed products from one place to the other, you don’t have to wait for people to come looking for you. Get vehicles, motorbikes, any distribution machine that fits your goods and services. Retailers are always happy when goods and service are delivered to their door post.

Promote Your ServicesTaking the above steps does not mean that you don’t need to go further. It is therefore, necessary that you promote your services. Make the sacrifices, give incentives to retailers, and do a follow up. It may require you running ads, Radio or T V. Just know where your niche could be found, and what would appeal to them. Use it to find them.

 

How Ready Are You?

This is an important question you must provide a satisfactory answer to. By knowing how ready you are to become a Nestle Food distributor, it helps in streamlining your objectives. It is not wise to be led by zeal and miss the way. There are a lot of things to put in  place before starting up your distributorship business. All matters to do with logistic arrangements should be fully settled before engaging or applying for a Nestle distributorship.

Ensure they Belong to Your Niche

distributorship can be an enjoyable experience as well a difficult experience depending on how you make your first decision. Becoming a Nestle distributor for the sole reason of financial rewards is not advisable. Getting involved in a business you enjoy doing is the key to inner satisfaction and joy. It is therefore necessary that you carefully consider your niche.

If Nestle Food offers business you feel comfortable with, then by all means do so. But in a situation where your only focus is the financial rewards it affords you, then such reasons are not enough to become a good distributor, as chances are that you will likely under perform.

Requirements to Become a Nestle Food Distributor

There are certain requirements that must be met to qualify for a Nestle Nigeria distributorship position. These include;

Experience (5 years preferably)

To become a Nestle distributor in Nigeria, there are several procedures that must be followed. First, you will need to be qualified. So what are the requirements for qualification? Simple! First, you should have considerable experience. Nestle prefers its distributors to have at least 5 years experience. Since experience forms an important part of the requirements, it is therefore very necessary that you strongly consider this option when applying for distributorship.

Financial Requirements

Meeting the minimum financial requirement is very important to achieving your set target of becoming a Nestle distributor in Nigeria. Interested individuals are required to have a minimum of 5 million naira monthly working capital. This is in addition to a 50 million naira average turnover.

The Provision of Vehicles

Nestle requires its distributors to have delivery vehicles in the form of trucks. At least 3 (which is Nestle’s minimum) of such vehicles should be provided by the interested would-be distributor.

Provision of a Warehouse Facility

Having a fairly large warehouse facility is important. This will be used for the storage and holding of products. To become a distributor of Nestle, you will be required to provide a warehouse having a minimum of 300 meters, and should be located in any of these states; Katsina, Benue, Kano, Ebonyi, Bauchi, Kwara, Kebbi, Zamfara, and Nassarawa. Others include Sokoto, Jigawa, Uyo, Ebonyi and Yobe states. In addition to the above, you should also have a manager including 3 salespersons at the minimum.

Having in Place a Feedback Mechanism

Having a feedback mechanism in place is very important to becoming a Nestle Food distributor in Nigeria. The feedback mechanism ensures that there is easy flow of information between Nestle and you. Why is this important? Because it captures vital information such as customer preferences, choices, changing perception on products and lots of other vital information. Your position as a distributor is very strategic in providing most of this information.

Knowing Your Strengths and Taking Advantage

It is important that as a distributor, you have full knowledge of your strengths as well as your weaknesses. Concentrating on your areas of strength while improving on your areas of weakness will most likely benefit your business immensely.

This article has attempted to make available the necessary information on how to become a Nestle Food distributor in Nigeria. Following the procedures for joining, you will be adequately guided on the strategies and steps to follow to achieve your goal and desire.

 

4 comments

  1. Hello to every single one, it’s truly a nice for me to visit this
    website, it consists of precious Information.

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  3. Adewoyin Omolade Ruth

    I really which to partner with this company, preferably to be a distributor. After all these requirements, like how much will I need to start the business. Thanks.

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