This is the first news flash of this portal and of 2015.
This news flash gives insight in the operations of the HE in Q4 2014; the quarter of 2014 in which activities were implemented and great amount of entrepreneurs started to implement HE franchise activities on local level.
In the last quarter of 2014 HE has been working on the preparation necessary to move to scale. The activities included the automation of the order management and financial system with the ERP system, developing and finalizing the Standard Operating Procedures for all activities including logistics, operation at HE offices, recruitment of entrepreneurs, receiving money etc. Again quarter four brought new challenges and development as part of the innovative approach the HE team is developing.
Another achievement is the warehouse in Rusizi where in the end we found a warehouse that matches the products needs and requirements. In other words, we moved from one warehouse to another for a lower price and better storage conditions. At the same time, we have organized the complete logistic chain including all procedures from our bonded warehouse to three different countries with their particular regulation.
Furthermore, we have evaluated the experiences with the first entrepreneurs in the three countries, with the help of the country teams and entrepreneurs, as well as with our local stakeholders. Based on the evaluation we adjusted and increased the variation in the product assortment especially with additional impact products. We have revised the training materials for a number of topics and added more extensive training on sales and marketing for both the country teams and entrepreneurs. These trainings were given since the evaluation of the entrepreneurs showed that some entrepreneurs were too much focused on awareness only.
Some key challenges in Q4 were
- Implementation of the ERP system.
- Receiving goods and distribution of these products to the three country offices.
- Transfer from start-up phase to scale, including additional trainings,
- Moving out of the Cordaid office of HE SI DRC office.
- Reaching out to many entrepreneurs following the targets of HE within the consortium.
At the end of Q4 we have been very satisfied with all achievements made; the journey of HE within the consortium remains promoting and implementing innovation. There are no guidelines (yet) and obviously there have been topics we did not anticipated on sufficiently. At the same time, we have learned significantly and would like to thank all the consortium partners as well as the authorities involved for their support to HE to various topics and experienced barriers.
For HE 2015 the key objectives are to analyze and evaluate the data collected from users of the social franchise and translate them into actions to maximize the output following a solid and sustainable methodology. At the same time we will face a logistic challenge as the data that indicates the consumption of products remains limited; where the supply chain requires decisions minimum 6 month ahead. We are convinced we will reach the targeted number of entrepreneurs for the three countries and will do everything possible to maximize the impact on SRH.
Another objective for 2015 is the adjustment of the organization to a self-sustaining operation that generates sufficient income to cover all operational expenses. The business case for the entrepreneurs is sufficient to keep them motivates to operate and even extend their activities. With the estimated turnover the entrepreneur will earn between $100 and $200 to cover his monthly expenses.
All HE offices will manage securely the sales and revenues of their operations. Based on monthly (automated) reports the cash flow of each operation will be managed. With adjustment of the margins, adjusting the product basket, negotiating purchase prices and decreasing the operational expenses the self-sustaining operations will be established for both the entrepreneurs and the HE SI office.