platforms will enhance visibility and real time information exchange . Critical to the success of the information exchange platforms would be provision of access points for customers and consumers of the services in the global supply chains .
As expected , e-commerce grew in leaps and bounds , with increased online activity as consumers opted for online shopping of essentials , initially , but this has been replicated to other sectors of consumer goods . E-commerce is now a hard reality of life .
We are starting to see a trend where the major global logistic players are angling for a pie of business in Africa and this will lead to high investment in modern logistics technology which will drive down cost , and improve efficiency in Africa . Also , observed trends include integration of all multimodal service providers - sea freight companies integrating and acquiring players in land and air transport and related services like clearing , forwarding , warehousing and distribution . In all these trends , technology remains the key driver and factor for strategic change .
On the legal front changes in contracts to include Covid and disruption as force majeure , have been implemented - but will this stand for long ? Currently , the costs in the logistics industry are high .
To remain competitive , players must find ways to optimize the costs in the supply chain and deliver value to the customers through continuous innovation . Some of the recent trends include the emergence of dark warehouses . This supports the availability and accessibility ( removing location constraint ) to customers , who do not have to know exactly where the cargo ordered is stored , but delivers the minimum cost advantage as much as possible .
And yes where there are inefficiencies , brokers come in ( e . g . App platform owners ), to link the producers with the consumers . The closer one gets to the customer by cutting the cost and delivering value will win the day . Whose headache is this ? The one who sees the value even in intermediation , with full knowledge that intermediation has the threat of being a temporal strategic advantage . This can be eliminated with time , with very flat and short supply chains . Technology is not a threat , but is the key factor in this industry .
Consumer trends are changing and there ’ s a transition from the ‘ old , less tech ’ to younger , vibrant and very tech-savvy consumers . Technology has accelerated access to goods , whether raw materials or finished consumer products . Let me then look at the headache that marketers are dealing with now . Targeting products to the right consumers , at the right time , for the right prices ( value ) with instant gratification ( cutting both ways - to the seller or the consumer , depending on the experience ). This is the headache I choose to call real time headache … supersonic speed headache .
It is now time again to re think and redefine the go-to market strategies in the logistics industry , given the changes that have challenged principles like just-in-time manufacturing , outsourcing ( dealing with less single sourcing and having networks or communities to source from ), managing location challenges , and leveraging on technology advancements . No headache is insurmountable !
References : ( IFC – The Impact of Covid -19 on Logistics , June 2020 )
Michael Nzule is the Finance & Strategy Director of Mitchell Cotts Freight Kenya Limited . This is an abridged version of the key note address delivered at Strathmore Business School Management Science Round Table - Themed “ Unpacking Management Science Post Global Pandemic in November 2021 . Views expressed in here-in are personal . You can commune with him via mail at : Mikemaithyanz @ gmail . com .