Distributing goods is the area of expertise for this entrepreneur. Mulinya Suaibu is the owner and managing director of Linya Distributors, a supply and delivery company in Uganda.
Situated in the city centre of Kampala, Mulinya and his wife first began the enterprise as a small scale business. Linya Distributors started as a trading store dealing in general merchandise. From the 1980’s to 2000 the company steadily grew to become well established in the area. In 2001 when the opportunity arose for Linya to expand into distribution, Mulinya was ready to take the small business to new heights.
Mulinya Suaibu: Owner of Linya Distributors
Ten years later, Linya Distributors is now the sole supplier of Unilever products in one of the busiest parts of Kampala. Unilever is a large company that supplies household brands like OMO, Royco, and Blue Band for distribution. Distributors are key players in a long value chain of business that brings products from producers to retail stores. To become a leading distributor, Linya had to invest in several aspects of distribution. This included finance to buy goods from Unilever, trucks to deliver products and sales personnel to secure markets.
A typical day for a distribution company like Linya distributors would be to collect the purchased products from Unilever and supply them to local vendors and stores in Kampala. Linya makes its money by valuing the goods just above the purchase price. There are set standards, however, and the profit margin cannot exceed 7 percent. This enables customers to access low prices and ensures products move quickly from the shelves.
For Mulinya, distribution is an interesting line of business, particularly in terms of managing the logistics. With trucks set to deliver on time and stores requiring more goods, there’s always something on the go. Although Mulinya says that “huge margins are always the dream for businessmen” he has found that this is often not a practical possibility. Nevertheless, Mulinya knows that he has established a successful business that has enabled him to earn a living. By transforming a small trading post to a principal distributor, he has made bold strides as an entrepreneur in Uganda.
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- Mulinya Suaibu: Owner of Linya Distributors
