Technology

Safaricom bets on supply chain app to grow M-Pesa

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Safaricom Business general manager Sylvia Mulinge (right), Virtual City's chief executive John Waibochi (centre) and Safaricom Foundation chairman Joseph Ogutu toast during the launch of M-Distributr on August 7, 2014. PHOTO | DIANA NGILA | NATION

Safaricom has launched a mobile phone-based service that allows businesses to place orders for supplies, raise invoices for deliveries, pay and collect returns in real time, cutting the need for bulky paperwork.

The retail supply service automates the distribution chain and allows payments for goods delivered via the Lipa Na M-Pesa service.

READ: Safaricom sets sights on fast growth of ‘Lipa na M-Pesa’

Safaricom, in partnership with a local IT firm, Virtual City, Thursday launched the M-Distributr service targeting manufacturers and distributors of fast-moving consumer goods (FMCG) to eliminate use of cash in the supply chain.

M-Distributr is an Android mobile app.

The Nairobi Securities Exchange-listed telecoms firm is banking on the app to drive earnings from M-Pesa as well as data, by connecting salespersons in the field to the office through the Internet.

“This will definitely help grow M-Pesa and data, while helping companies cut down by half the time spent on processing transactions,” said Sylvia Mulinge, general manager in charge of Safaricom Business.

“M-Distributr automates the sales force processes; giving companies access to real time, accurate information on transactions in the supply chain from the agent in the field, distributors and manufacturers.”

Safaricom said it has already signed up companies such as PZ Cussons East Africa, Reckitt Benckiser, Vivo Energy, East Africa Breweries Limited (EABL), Unilever Kenya and meat processor Farmer’s Choice.

Ms Mulinge said Safaricom had enlisted all its dealers countrywide to the platform, allowing them to make orders for stock such as airtime and devices online, and make payment via M-Pesa.

A one-off set-up fee of up to Sh8,000 is charged and monthly user charges for M-Distributr ranges from Sh2,500 to Sh4,000 depending on the bouquet selected. M-Distributr is the brainchild of John Waibochi, the founder and CEO of Virtual City.

The techie won the $1 million Nokia Growth Economy Venture Challenge to set up his IT firm which develops enterprise software applications specialising in agribusiness and supply chain solutions.

Safaricom’s M-Pesa raked in Sh26.56 billion in the year to March 2014.