The KZN Department of Economic Development, Tourism and Environment Affairs (EDTEA) is championing the implementation and rollout of the KZN Bulk buying and warehousing programme in the Province of KwaZulu – Natal.
1.2 The purpose of the KZN Bulk buying and warehousing programme is to enable the KwaZulu-Natal African Traders to get into and play a significant role in the mainstream of the wholesale and retail sector. Further, this will enable African Traders not only to be consumers but to acquire significant ownership of the wholesale and retail industry.
1.3 The KZN Bulk buying and warehousing programme promotes the idea of collective bargaining by township and rural retail and wholesale enterprises to collectively buy directly from manufacturers or their representative suppliers or distributors in order get better pricing, quality goods and be in stock at all times to compete fairly and grow their businesses. The programme therefore involves central buying, warehousing and distribution of fast moving consumer goods, both perishable and non-perishable goods.
1.4 It is envisaged that the programme will improve the sustainability of both organized and unorganized township and rural retail and wholesale enterprises through competitive pricing with their competitors.
1.5 The Bulk buying programme is one of the interventions aimed at advancing the Revitalization of the Township and Rural Economies, in particular focusing on:
- Transforming historically disadvantaged townships and rural retail stores into viable commercial businesses
- Bringing lower prices of essential food items to the communities to enable competition for increased share of their local customer’s shopping basket
- Shortening the distribution value chain
- Enabling township and rural retailers to buy in bulk directly from product manufacturers, producers or their representative suppliers and distributors
- Advancing entrepreneurial capabilities of township and rural retail stores through capacity building initiatives
- Reducing cost of sales for township and rural retail stores and thus be able to be competitive on price.
1.6 The implementation approach of this programme prioritizes the utilization of government – owned and Ithala – owned facilities and buildings to rollout the programme in the Province of KwaZulu – Natal.