Elso to cut distribution and logistics
Job losses can be expected as the Namibian manufacturer focuses on core business.
Augetto Graig - Namibian cleaning product manufacturer Elso has announced that it will restructure its business model from August, outsourcing its distribution and logistics to a local supply chain partner, CIC.
The 60-year-old Elso Holdings is the only Namibian manufacturer of cleaning materials. It currently employs 134 workers, 61 of whom work in its factories in Windhoek and Swakopmund.
The restructuring aims to optimise operational efficiencies and improve customer service through faster and more reliable deliveries, according to the company.
“Elso will focus on the core of its business, manufacturing great Namibian cleaning and tissue products and ensuring customer service through its Elso Ambassadors around the country,” reads the press release.
“As part of this change, Elso will need to right-size the workforce, as distribution will be entirely handled by the outsourced partner with its own employees,” it continues.
Acting chief executive officer Nicole Maske says the exact number of employees who will be directly affected depends on the outcome of final negotiations with staff.
“Although it is very sad to see people leave the business, it is a necessary part of building a strong Elso business that is able to best serve its customers around the country,” the statement reads.
Going forward
Elso stores around the country will now be co-located with CIC’s depot facilities to ensure higher stock availability and increased efficiency. The Windhoek branch in Lazarette Street will remain where it is, as will the branch in Tsumeb. Elso will continue to refill containers with its cleaning products at stores countrywide. Customers will also be serviced through Elso Ambassadors in each region and key retail account managers.
Elso offers a wide range of products suitable for everything from daily household chores to cleaning big factories or shopping malls.
“Elso will continue to build truly Namibian brands in the cleaning space with new products that can compete head-on with the imported brands,” the press release reads.
Asked about trends in the cleaning product development space Maske said: “Watch this space. We have some products already offered to non-retail customers, which we will be looking to convert into retail products, and some extensions for industry.”
New brands
Regarding ingredients for Elso cleaning products, Maske said: “We source as much as we can locally, however there is little available locally in terms of the raw materials; largely chemicals and paper wadding. We do source most of our packaging material locally, including plastic bags, labels, boxes and the like.”
Elso is a proudly Namibian business that will continue to build new Namibian brands, such as its recently launched multi-purpose cleaner, Citro Power, and window cleaner, Citro Shine, supporting Namibia’s vision of industrialisation, according to the company.
According to Maske the company is also looking at opportunities abroad. “We are testing exports to South Africa and would like to export to other neighbouring countries in the near future,” she said.
Elso Holdings belongs to the Allegrow Fund, a private equity fund managed by Eos Capital. Investors in Allegrow Fund include Namibian private and state-owned enterprise pension funds, said Maske.
The 60-year-old Elso Holdings is the only Namibian manufacturer of cleaning materials. It currently employs 134 workers, 61 of whom work in its factories in Windhoek and Swakopmund.
The restructuring aims to optimise operational efficiencies and improve customer service through faster and more reliable deliveries, according to the company.
“Elso will focus on the core of its business, manufacturing great Namibian cleaning and tissue products and ensuring customer service through its Elso Ambassadors around the country,” reads the press release.
“As part of this change, Elso will need to right-size the workforce, as distribution will be entirely handled by the outsourced partner with its own employees,” it continues.
Acting chief executive officer Nicole Maske says the exact number of employees who will be directly affected depends on the outcome of final negotiations with staff.
“Although it is very sad to see people leave the business, it is a necessary part of building a strong Elso business that is able to best serve its customers around the country,” the statement reads.
Going forward
Elso stores around the country will now be co-located with CIC’s depot facilities to ensure higher stock availability and increased efficiency. The Windhoek branch in Lazarette Street will remain where it is, as will the branch in Tsumeb. Elso will continue to refill containers with its cleaning products at stores countrywide. Customers will also be serviced through Elso Ambassadors in each region and key retail account managers.
Elso offers a wide range of products suitable for everything from daily household chores to cleaning big factories or shopping malls.
“Elso will continue to build truly Namibian brands in the cleaning space with new products that can compete head-on with the imported brands,” the press release reads.
Asked about trends in the cleaning product development space Maske said: “Watch this space. We have some products already offered to non-retail customers, which we will be looking to convert into retail products, and some extensions for industry.”
New brands
Regarding ingredients for Elso cleaning products, Maske said: “We source as much as we can locally, however there is little available locally in terms of the raw materials; largely chemicals and paper wadding. We do source most of our packaging material locally, including plastic bags, labels, boxes and the like.”
Elso is a proudly Namibian business that will continue to build new Namibian brands, such as its recently launched multi-purpose cleaner, Citro Power, and window cleaner, Citro Shine, supporting Namibia’s vision of industrialisation, according to the company.
According to Maske the company is also looking at opportunities abroad. “We are testing exports to South Africa and would like to export to other neighbouring countries in the near future,” she said.
Elso Holdings belongs to the Allegrow Fund, a private equity fund managed by Eos Capital. Investors in Allegrow Fund include Namibian private and state-owned enterprise pension funds, said Maske.
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