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The Law of the Value Chain

I was at a courier company on Saturday to send out a parcel to Abuja. This courier company actually started out as a transport company with buses going to different destinations in Nigeria.

 Overtime, people sent parcels through the drivers to different destinations. The company saw an opportunity and started a courier and logistics company.
As the very courteous staff of the courier company attended to me, I saw her bring out different cartons to pack the items I was sending out. Several parcels were everywhere packed in those cartons.
I whispered to myself that production of packaging is another line of business that this company should go into- if it is not already into it. The company will produce for its own use-rather than buy from others- and also sell to other users of packaging materials.
From transport to courier to packaging- this is a simple explanation of value-chain activities.
To make the best out of a struggling economy or one in recession, you must apply the law of the value chain. A value-chain mindset puts you ahead because you’re thinking ahead. Not all aspects of a value chain can be in recession at the same time.
If a segment experiences bust, there’s a likelihood another segment is experiencing boom. Value chain also provides an easy way to have multiple streams of income.
If you run a school, look at the value chain opportunities. You can also sell school kits and uniforms. You can sell books and instructional materials. You can sell educational toys. You can have buses that can do school runs for schools who can’t afford buses.
Your finances will not be restricted to the vagaries of the school calendar alone if you maximize the value chain opportunities.
You can also use this value chain thinking to look at an industry holistically so as to identify those you intend to serve. Let me give an example. Let’s choose the popular ‘okada’ technician. Right beside the okada technician is a vulcanizer.
The vulcanizer sees the needs to serve those who bring their ‘okadas’ to the technician. Around that workshop, is that Mama Put (usually a woman who sells food inside a wheelbarrow or a contraption).
Then you have those selling oil and lubricants. You have those who sell the reflector jackets and the graphic designers who write on them. People who sell helmets. And the people who ride the okadas.
You also have those who import the CKD (completely knocked down) parts and assemble them locally. That’s the okada value chain.
To understand how the value chain of your sector works is to understand the immense opportunities that you can leverage on. During the lockdown, I spoke as a guest on an Instagram Live show of a music artiste where I broke down the music value chain.
Most music artistes in Nigeria just release an album, have a few concerts and set up a studio to record sessions and they think that’s all. I spoke about how they can make jingles for production. Song composition or being a lyricist is one area we don’t cover much here.
You can write songs for other people. Or just score the music. You can have a recording label. You can be a producer. Or be a music or sound engineer. You can have music instruments for rent. You can sell music CDs in retail outlets. Or distribute like those ‘Alaba’ boys.
You can be an event promoter or offer on-demand/live music streaming services. You can run a music blog. Or produce podcasts. You can make ringtones. The music value chain is so huge.
Thinking value chain will give you a competitive edge. It makes you see areas where you can scale up or how you can maximize unexplored opportunities. If your business is struggling, look at the value chain opportunities and move up or down as required.

Bayo Adeyinka
By the way, do you have my books? You can get them by sending a DM to @Rovingheights . They’ll be delivered directly to you.

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It took 7 days for your 'upcountry' cheques to clear- meaning that if someone pays you a cheque in Sokoto and you pay it in in Ibadan, you had to wait for 7 days to receive value. Later, it became 3 days.

I recall as a young banker, I used to go to the CBN Clearing House with a box that was locked by my supervisor and which could only be opened by the CBN Clearing Supervisor. I carried that box like it was my life.

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My dear Nigerian Youth,

I'm still on your case. I'm not about to relent so soon because you represent immense potential and you sit on a gold mine yet you know it not.

You account for at least 43 percent of Nigeria's population. You are over 72 million strong. Unfortunately, what is a blessing is turning to be a curse. Your situation brings a scripture to mind: man that is in honour, and understands not, is like the beasts that perish.

You still wonder why I'm miffed? I sat across one of you- a young lady- today and listened to her tale. She had spent 2 years living in Dubai and slaved away for a real estate company. After 2 years, she's back to Nigeria- broken and penniless.

She regaled me with stories of how more than 75 percent of her income went to rent and she couldn't even afford a decent accommodation. She had to 'collabo' with two other ladies to rent a studio apartment. But now she couldn't stay in Nigeria anymore.

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Exactly 5 years ago, it was my last day at work at my former organization and I sent out a valedictory mail to my team. It was a truly emotional experience.

I hereby share that mail I sent 5 years ago. How time flies.

My dear South West 1 Team,

This is a very emotional moment for me as I know goodbyes are not easy. I want to take this time out to sincerely appreciate each and every one for your support during my brief sojourn leading the team.

I call it a sojourn because life is a journey and not a destination. We will all never 'arrive' in the real sense of it and people must move on at certain periods in their lives. That is exactly what I'm doing. You've all been part of my life just like I have been part of yours.

I'm particularly delighted and it is my sincere joy to note that together, we have made some progress. We are not exactly where we want to be but then we are no longer where we were when I assumed leadership of this Region a short while ago.

So, let me leave you with a few 'take-aways' as I take my bow:

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He was in Ibadan for the first time and he was very fascinated with the city when I informed him that Rome and Ibadan shared a very unique similarity: both of them are built on seven hills. He asked me to take him round Ibadan which I did.

The seven hills are Oke Padre, Oke Ado, Oke Bola, Oke Mapo, Oke Are, Oke Sapati and Oke Mokola. But Ibadan is not just a city of hills. It is also a city of 'bottoms'. Loosely translated, 'idi' means bottom or the backside.

Several people have attached sexual innuendoes to the names. However, the actual translation indicates that some of the 'idis' indicate how the settlers converged at a point thereby leading to how they arrived at the names given.

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