Ato Nuredin Mohammed, the general manager of ALLE and Mr. Dario Minutella a representative of the consulting firm AT Kearney, featured at the CEO’s forum held at the Hilton Addis Ababa Hotel on November 20, 2014 to share their experiences and give explanations to questions at the forum.
The forum presents a platform for CEOs and management of top companies to share experiences and communicate on the current activities of their respective organizations as well as address questions from participant members of academia, consultancies, media, foreign relations and diplomats from different countries.
ALLE’s management addressed various points raised on ALLE’s operation.
The General Manager of ALLE, Ato Nuredin Mohammed, emphasized that the sole purpose of the enterprise is to stabilize the hiking price of food and consumer goods by providing high quality products at competitive prices to retailers and service rendering institutions such as hotels, restaurants and cafés. He also stated that ALLE sets a maximum Retail Price (MRP) which retailers should not exceed in determining their selling price to consumers.
For inquiries raised about whether ALLE gets favors from government institutions, the General Manger has told participants that ALLE faces the same challenges as other businesses in Ethiopia in accessing hard currency and land leases, among others. He also stated that ALLE operates by the book and that it is not exempt from penalties if it delays on tax payments.
Mr. Dario Minutella, manager at A. T. Kearney – a renowned management consulting firm which is currently consulting ALLE – on his part said that among local logistics operators, some 50% price variation is observed in the market, which creates a challenge in the wholesale business by raising prices of wholesale goods.
He said that ALLE, on the other hand, is applying state–of-the-art wholesale business technology and efficient management and operation systems to tackle this challenge in providing the community with high quality products at competitive prices. Mr. Minutella also explained how cost is minimized by sourcing products directly from producers, supplying retailers and other customers by opening stores in geographically convenient areas and getting all products in one place by utilizing modern cash and carry business transaction systems.
The Ethiopia CEOs Forum is a quarterly event that is organized by Precise Consult International, with the aim of bringing together leading CEOs, government officials, donors and international agencies on issues related to doing business in Ethiopia.