| |  FAST-MOVING CONSUMER GOODS:The coming of payment platforms that offer online real-time access to payment information have brought to fore, the need for FMCG to have access to payment information of their customers whether distributors or individual on the banking platforms from the comfort of their office.
Today in Nigeria established corporations have realized the need for full automation in its processes. The whole organisation, and everybody within, must be linked by networks that make maximum information universally available in real time.
Cadbury Nigeria Plc.
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Background |
CADBURY is an affiliate of Cadbury Schweppes, a global beverage and confectionery conglomerate. At year end (March 2004), the company had a total market capitalization of £9 billion. With a history stretching back over 200 years, today Cadbury Schweppes employs around 54,000 people and its brands are enjoyed in almost every country around the world.
In Nigeria, Cadbury has a distributor base of about 300 distributors and 29 depots (of which 6 are major depots). Cadbury banks with UBA, IBTC Chartered bank, FBN, GTB, Oceanic, UBA and Zenith Bank. These banks offer a credit product to Cadbury distributors; they give the distributors a credit line with which to buy goods from Cadbury using a product called CTC. After 30 days of picking up the goods the bank pays Cadbury for the goods picked up by the credit distributor. Cash distributors pay cash at the designated banks, Cadbury confirms payment from the banks and releases the goods to the cash distributor.
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The Challenge |
Presently, the challenge Cadbury faces is in monitoring the credit exposure of its distributors and most especially in monitoring funds as remitted. Cadbury depends on information provided by the various banks to monitor the collections.
The possible delays in relaying the information on distributor payments also allows sometimes for some distributors to default on their credit limits. |
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The Solution |
Leveraging on InterSwitch’s connectivity to the banks Cadbury was able to access their Credit Distributors (CTC) accounts via the Internet without the need to visit or call the banks. Users with appropriate access at Cadbury offices could view the available funds (OD + Cash) in the CTC distributor’s account. To enable this a Cadbury’s bank would create special Cadbury accounts for each Cadbury distributor. These non-Cheque drawing accounts will be individually tied to specific Cadbury distributors who will make all their payments into these accounts.
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