By Martin Kasasira
Technology has been the major driving force behind the growth of the logistics industry in Africa. In recent years, we have seen a significant increase in the use of technology to support logistics and fulfillment operations across the continent.
As a result of this, businesses are now able to grow and reach new heights of efficiency and profitability.
This phenomenon is not new in Uganda. For a long time businesses have felt the pain of an inefficient logistics sector. More often than not this has led to an increase in the price of goods.
In other cases, customers have also had to pay more than 50% of the price of their goods as delivery costs. This is unsustainable especially for an emerging economy like Uganda. However, it is steadily changing, the country has seen heavy investments in the logistics space over the last decade.
A number of startups have set up base in the country offering various solutions that are now driving efficiency in the sector. This is spurring the growth of existing business and opening up opportunities for new businesses to thrive in the country.
E-commerce has especially benefited from this development. Businesses today enjoy reliable, efficient and affordable last mile delivery for their goods.
They are able to sell volumes and scale operations rapidly through leveraging technology to support their logistics and fulfillment operations.
A study by McKinsey revealed that incorporating technology in logistics can result in cost reductions of as much as 30%. This is a substantial savings and a strong motivator for businesses to digitize their logistics value chain.
Uganda presents immense opportunities for businesses to scale operations through technology. Social commerce sellers can today trade effectively from the comfort of their homes without any hassle.
Various tech companies have provided solutions that enable picking, packing and shipping of goods to customers reliably and affordably. Large manufacturers and distributors are also benefiting from the convenience brought about by reliable fulfillment partners.
Today they are able to move their goods efficiently at the lowest possible costs, with the added advantage of tracking orders which allows them to better plan and manage their inventory, increase efficiency, enhance customer satisfaction, reduce costs, and make better decisions. This helps to optimize their fulfillment operations, leading to improved performance and increased success.
One such tech company that is enabling businesses to thrive is Sendy. Through a portfolio of fulfillment services, Direct Fulfillment, Smart Fulfillment, All-in-One Fulfillment), Sendy is providing the easiest way for businesses of any size to move goods, enabling them to drive more efficiency and growth.
Direct Fulfillment, supports businesses that require delivery to consumers. Smart Fulfillment facilitates e-commerce and B2B companies to pick goods, sort, and deliver them to end customers while the all-in-one solution improves the efficiency of online businesses through picking, packing, storage, and shipping their orders.
Technology is indeed having a significant impact on logistics and fulfillment, it can be a powerful tool for businesses looking to scale exponentially.
By leveraging technology, businesses can now improve efficiency, reduce costs, and gain valuable insights into their operations. By automating certain processes, businesses can free up resources and focus more on growing their ventures.
The world is moving towards fully digitizing processes. Logistics is a key player that is facilitating trade all over the world. Success for businesses will be determined by who best embraces innovative technologies.
Businesses that adopt technology especially to drive their logistics and fulfillment operations will be well-positioned to gain a competitive advantage and succeed in today’s fast-paced business environment.
By embracing technology we will create a more efficient and profitable logistics and fulfillment sector in Uganda and drive the economic growth of the country as a whole.
The writer is the General Manager, Sendy Uganda