Client: DukaHub Supplies
Location: Kampala, Uganda
Type: Urban bulk wholesaler
Industry Term: Wholesaler
Use Case: Expand product range and stabilize supply for informal retail networks
Background
DukaHub is a mid-sized wholesale operation supplying over 200 informal retailers and dukas (micro-shops) across Kampala. Their business model depends on consistent access to affordable staples like maize flour, beans, and vegetable oil — sold in 10kg–25kg packs. They move 2–4 containers/month and rely heavily on local brokers and regional traders. As product demand diversified, they struggled with inconsistent supply, product substitutions, and rising prices.
Challenges Before Nowexo
- Product Gaps: Couldn’t consistently stock high-demand SKUs like lentils and chickpeas
- Substandard Quality: Received inconsistent batches from different brokers — impacting buyer trust
- Cash Flow Strain: Had to prepay local traders for stock with no documentation guarantees
- Lack of Packaging Flexibility: Suppliers offered only bulk sacks, not retailer-friendly pack sizes
- Reactive Buying: Only sourced when stock ran low — no visibility into seasonality or planning
What We Did with Nowexo
- SKU Expansion Strategy: Identified 5 new high-margin SKUs based on informal retail demand
- Multi-Origin Matching: Sourced pulses and oil from verified suppliers in Kenya, India, and Tanzania
- Flexible Pack Formats: Worked with a supplier to offer chickpeas in 10kg consumer packs with private-label options
- Partial Container Trials: Used shared container shipments to test new products without overstocking
- Documentation & Payment Assurance: Provided structured proforma, COAs, and flexible payment planning
- Forecast-Based Sourcing: Helped them lock in 2 months of chickpea stock at off-peak pricing
Results
- Expanded product line by 6 new SKUs in 60 days
- Increased average retailer order size by 29%
- Zero stockouts on new products during first 3-month cycle
- Improved trust from informal buyers due to product consistency
- More negotiating power with buyers after stabilizing supply and price points
- Reduced financial risk by avoiding full upfront payments on unknown sellers
Client Quote
"Nowexo helped us think and buy like a much bigger wholesaler. We no longer scramble for stock — we plan it, price it, and deliver it better."
— Operations Manager, DukaHub Supplies