Siba’s Dairy has been in existence since 2008 and has been involved with Seda for the last four years. The company, which distributes dairy products in various parts of the Northern Free State, is a returning client of Seda. After the initial start-up phase advisory to Siba’s, the agency was approached once more to assist with unblocking a few challenges that were hampering business growth, affecting income and threatening the security of 15 permanent staff members.
Siba’s Diary distribute products to 8 towns in the Free State and has an indefinite contract with Transem, another dairy products manufacturer based in Klerksdorp. However, after the initial interaction it went through a bad spell. One of the big challenges was high expenditure as a result of huge vehicle maintenance costs due to older vans. Its ageing fleet would breakdown, leaving customers stranded.
A new diagnosis concluded that the business needed to acquire a new fleet of delivery vehicles to manage maintenance costs and improve delivery turnaround times. The business also needed to be branded more visible and marketed more effectively. The branding was to be done on building and vehicles – to amplify the brand. More effective marketing materials were also developed to facilitate new markets entry, and give the company a chance to compete with national brands in the market.
With the new business plan, funds were acquired to purchase two new delivery vehicles. The business improved its cash position with revenues more than doubling between 2012 and 2013 from about R600 000 to R1,4 million. The business also recorded a profit of R111 000 in 2013 from a loss of R3 572 the previous year. The help of Seda has ensured that Sibas continues to employ its full complement of staff, and can look forward to growing into other provinces and neighboring countries.
“Seda has really assisted my business during the first crucial 3 years survival stage and I really value what they stand for”, says Mantele Molehane, Siba’s Dairy founder.