Stamp Out Sleeping Sickness
Transcription
Stamp Out Sleeping Sickness
Enterprise Growth Services Helping entrepreneurs change lives Case study: Stamp Out Sleeping Sickness, Uganda Helping entrepreneurs change lives Enterprise Growth Services (EGS) helps entrepreneurs change lives in low-income countries. It extends EY’s long-standing commitment to championing entrepreneurship as a key to sustainable growth in local economies. As our corporate social enterprise, EGS brings the best of our people, services and expertise to organizations that wouldn’t ordinarily be able to work with us. Our teams help job-creating small businesses and social entrepreneurs who use the power of the market, to improve health, education and access to energy in their communities. We’re building a better working world in areas of real need and giving our people experiences that last a lifetime. A market-based solution to sleeping sickness in Uganda? Trypanosomiasis kills around 30,000 people a year Estimated nearly 70 million US$4 billion people in Africa are at risk of contracting the disease Trypanosomiasis — or African sleeping sickness, to give it its common name — kills around 30,000 people a year. It’s estimated that nearly 70 million people in Africa are at risk of contracting the disease, and its impact on the lives and livelihoods of communities can be devastating. The disease is transmitted from some animals, including cattle, to humans via tsetse flies. Controlling the disease in cattle, particularly in areas where farming is the basis of the local economy, is therefore critical. Stamp Out Sleeping Sickness (SOS), a public-private partnership backed by venture philanthropists IKARE, has been tackling this challenge in Kampala, Uganda. SOS set up newly qualified Initial findings and observations Huge variations in stock Stamping out sleeping sickness estimates is lost in cattle production per year as a result of the disease vets with shops, stock and equipment in the rural north and east of the country. The aim was to create a sustainable means of advising farmers on how best to prevent and treat the disease in their cattle and thus control its spread. The problem: lacking business experience, many of the vets’ shops were failing, putting the SOS concept at risk. IKARE approached EY and asked for help. Could the remaining vets’ businesses be saved? Could they become the start of a truly market-based solution to the social and economic damage sleeping sickness causes in the rural communities? An EGS project was scoped, and a team of two deployed to Uganda. A structured approach to sustainable business change 1 Business resilience review 2 Intervention design • Assessed all five businesses and vets • Carried out a digitization of paper records to create an accurate financial picture of the five shops for the first time • Identified weaknesses in the supply chain, financial management, product range, pricing strategy, group cooperation and governance • Prioritized interventions based on need, deliverability and impact • Designed a new paper-based bookkeeping system with computerized management information for the vets who were ready • Designed a group-purchasing scheme to enable the vets to benefit from volume discounts • Conducted an extensive margin analysis and researched new products Inconsistent record keeping 3 Intervention delivery and sustainment • Delivered bookkeeping training supplemented with extensive co-working to familiarize the vets and their shop assistants with the new process • Initiated group purchasing and rationalized the supply chain to achieve 5%–10% discounts • Introduced new higher-margin products and provided the vets with sales training • Supported the vets in developing individualized plans to increase revenue and profit at the shops 2 | Enterprise Growth Services • Case study: Stamp Out Sleeping Sickness, Uganda Analysis and interventions Outputs and outcomes Suppliers by total group spend Recommended stock and supplier list 10.0% discount 10,000 9,000 Product type 5 7.5% discount 8,000 4 5.5% discount 6,000 3 5,000 4,000 2.5% discount 2 3,000 2,000 1 1,000 0 Nile Services Norbrook Scope vet HHS Vet Centre Eram Bookkeeping training Ever Victory MSJ Global Vet Jose Developments 0 SKU Importer Suppliers alphacypermethrin Alfapor 100ml Nile Services Nile Services and Scopevet alphacypermethrin Alfapor 250ml Nile Services Nile Services Acaricide cypermethrin Cypermethrin 100ml Goodman MSJ Acaricide alphacypermethrin Cost Price Sales Price Margin / / Sh / Sh Sh 6,000 10,000 4,000 14,000 25,000 11,000 5,500 8,000 2,500 Sypertix 20ml Norbrook Norbrook and Scopevet 4,000 1,200 Acaricide deltamethrin Vectocid 1 litre MTK HHS 70,000 85,000 15,000 Acaricide deltamethrin Vectocid 100ml MTK HHS 10,000 15,000 5,000 Anti Theilerial parvaquone Parvakel 50ml Nile Services Nile Services 40,000 55,000 15,000 Antibacterial multi-ingredient Diseptoprim 1g Jose Developments Eram Scopevet Norbrook Antibacterial No of vets 000 UGX 7,000 Active ingedient / Generic Name Acaricide Acaricide procaine benzylpenicillin Penand & strep dihydrostreptomycin 100ml Ever victory 2,800 200 800 600 6,900 10,000 3,100 284 700 416 Antibacterial tylosin Tylosin 20%(phenix) Nile Services Nile Services 12,000 20,000 8,000 Antibiotic enrofloxacin Enrosol 100ml Goodman BASSAR 6,500 10,000 3,500 Antibiotic oxytetracycline Hitet 120 100ml Vet Centrre Vet centre 7,500 12,000 4,500 Antibiotic oxytetracycline Hitet 120 500ml 33,000 38,000 5,000 Antibacterial trimethoprim sulfadiazine Sultri bolus Evervictory Antibiotic / antiprotozoa oxytetracycline Alamycin 100ml 10% Norbrook Norbrook and Scopevet Antibiotic / antiprotozoa oxytetracycline Alamycin 100ml 20%LA Norbrook Norbrook Antibiotic / antiprotozoa oxytetracycline Alamycin 100ml 5% Norbrook Norbrook 3,000 6,000 2,420 5,000 2,000 20,000 14,000 4,000 1,580 Antibiotic / antiprotozoa oxytetracycline Alamycin 250ml 10% Norbrook Norbrook 8,050 12,000 3,950 Antibiotic / antiprotozoa oxytetracycline Alamycin 500ml 10% Norbrook Scopevet 12,000 18,000 6,000 Antibiotic / antiprotozoa oxytetracycline Alamycin aerosol 140g Norbrook Norbrook 6,600 13,000 6,400 Antibiotic / antiprotozoa oxytetracycline Alamycin chick formula 125g Norbrook Norbrook 5,000 12,000 7,000 Antibiotic / antiprotozoa oxytetracycline Alamycin LA 300 100ml Norbrook Norbrook 12,500 17,000 4,500 Antibiotic / antiprotozoa oxytetracycline Coopermycin 10% 100ml MTK Scopevet 3,200 5,000 1,800 Antibiotic / antiprotozoa oxytetracycline Curamycin 100ml 12.5% Kwewayo Scopevet and KYEWAYO 7,000 10,000 3,000 8,500 14,000 5,500 300 800 500 3,000 8,000 5,000 Antibiotic / antiprotozoa trimethoprim sulfadiazine Norodine 100ml Norbrook Scopevet Antibiotic / antiprotozoa trimethoprim sulfadiazine Norodine bolus 1g Norbrook Norbrook Antibiotic / antiprotozoa oxytetracycline HCl Evervictory Ever victory Oxy (yzoxytetra)20% 100ml Margin % 40% 44% 31% 30% 18% 33% 27% 75% 31% 59% 40% 35% 38% 13% 40% 70% 40% 33% 33% 49% 58% 26% 36% 30% 39% 63% 63% Cashbook spreadsheet When Natalie Bretherick and Alasdair Reid, of UK&I, heard of a project working to contain the disease, they jumped at the chance to get involved. Natalie and Alasdair spent seven months in Kampala working alongside SOS and the five vets. The vets were chosen for their technical ability and entrepreneurialism, the five vets were expected to work together, but, without leadership, the group was falling apart. Without a proper bookkeeping system, they were also struggling to manage their cash flow. As a result, they weren’t able to save enough money to buy drugs in bulk, and every 10 days or so, they would have to travel a day and a half to and from Kampala to restock. This was taking them away from their shops and seriously impacting their success. Natalie and Alasdair wanted to give the vets the tools and knowledge they needed to manage their cash and profit properly, to diversify their product range, and to promote the most profitable and effective drugs. They ran training sessions in Kampala and spent weeks on the road visiting the vets at their shops. Despite some improvements, the vets still weren’t working together, and Natalie and Alasdair knew that progress was unlikely to be sustained once they’d left. So as well as helping the vets individually, they encouraged one of them to step up and lead the group. Patrick — the most successful and profitable of the five — was the obvious candidate, and they worked to increase his self-confidence. Under Patrick’s leadership, the group has gone from strength to strength, forming a new company together. Having consolidated their purchasing power, they’re getting up to 15% discounts from suppliers. They’ve won a couple of local government contracts. And they are planning to bid for pilot work under the UK’s first Development Impact Bond, which will use a paymentby-results mechanism to encourage private investors to fund the elimination of sleeping sickness from Uganda. So it’s fair to declare the project a real success. That’s certainly the view of the vets themselves, one of whom, Joy, emailed SOS as follows: “Natalie and Alasdair have been of GREAT help to us. I cannot say it all, but I can sum it up in this statement: I will never be the same again; I am fully set for a successful business. Please help and thank them for us, as we did not thank them enough.” EGS is a heavily subsidized and sustainable extension of EY’s core business — working at accessible rates for smaller, socially impactful clients. EGS’s corporate social enterprise model means it is scalable and prevents costs from falling disproportionately on the local teams that contribute participants. • EY absorbs the costs of the program’s management team and participants’ overheads. • EGS participants from mature markets voluntarily reduce their salaries to emerging market levels during their time on EGS. • EGS clients pay fees which are a small fraction of our normal commercial rates in both mature and emerging markets. Enterprise Growth Services • Case study: Stamp Out Sleeping Sickness, Uganda | 3 EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2014 EYGM Limited. All Rights Reserved. EYG no. FY0008 EMEIA Marketing Agency 1001447 Experiences that last a lifetime Natalie and Alasdair — each made a 50% salary sacrifice in order to work through EGS and make their services affordable to the client. Alasdair reflects on his experience: “I never viewed it as a sacrifice. For me, building a better working world isn’t just a tagline. I wholeheartedly believe that’s what we’re here to do, and now I’ve seen that with my own eyes. “I’ve learned an awful lot, too,” he adds. “Seeing Patrick grow into his leadership role has reinforced my view that you don’t have to be loud, gregarious or domineering to be a great leader. You can be quiet and thoughtful and lead others by showing that you believe in their capabilities, and by creating an environment in which great people can thrive. I certainly feel I’ve developed as a leader by taking part in EGS. The challenge of taking responsibility for the planning and delivery of a seven-month engagement was really rewarding.” For more information on Enterprise Growth Services, please contact: Jon Shepard [email protected] + 44 7919 691 916 Abi Smith [email protected] + 44 7768 733 693 ED None In line with EY’s commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com