Tuesday, June 25, 2024

Top 3 major logistics challenges in Nigeria


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[divider style=”solid” top=”25″ bottom=”25″][dropcap]W[/dropcap]ith the emergence of the COVID-19 pandemic, it has been established that the logistics business has come to stay. The global set back created an avenue for a smaller world network, with goods and products being shipped to various locations around the world.

Also, with the growth of the e-commerce industry, there is also a tallying rise in the importance of the logistics and delivery business, meeting the needs of millions of retailers and customers.

However, just like every other business, there are also major logistics challenges in Nigeria that have been posed in 2022, and might still linger on the years to come, if immediate steps are not taken to proffer solutions. These challenges are at the fore of the business, and are also currently stifling the smooth run of activities within this industry.

1. Increased Pressure: On-Demand delivery, also known as Express Delivery, has become the order of the day in the logistics business. This challenge has been posed as a result of the increased popularity and exposure that e-commerce growth and advertising has presented to the logistics industry. The ripple effect of this challenge is having to meet up with customer demand, as many logistics companies also face the risk of no growth, if they decide not to offer expedited delivery services. At Speedaf, a major way of controlling this challenge has been the localization of services, which translates to setting up various contact point across each country with a registered presence. In Nigeria, Speedaf is located in over 100 locations in 32 states across the country. By doing this, the pressure of in time delivery, is being solved a large service network coverage.

2. Labour Shortage: Another pending challenge the logistics industry faces is a shortage of manpower, and Labour. This challenge has caused a major set-back in the growth of this industry, and has also created a gap in the smooth operation of its activities. The pointing solution to this remains automation of systems, and according to a projection provided by SupplyChain247, automation solutions will become a $47 billion market by 2023. However, in the meantime, this shortage of manpower has created a deep hole in the progress of the industry, leaving room for more lapses and greater agitation about the processes of logistics and delivery companies.

3. High Cost of Maintenance: With the high rate of inflation, especially in Nigeria, logistics and delivery companies have also been thrown under, finding the balance between cost and profit while running the business. In this part of the world, it has become even more tasking to successfully rise above this challenge, with policies that stifle the growth of the industry from time to time. The only way out of this, in order to maximize the strength of this process, especially in relation to express delivery service is to create a strong bulk order system that also makes room for rapid delivery along the chain of distribution. Without a strong strategy in this regard, loss would be made and might eventually lead to the collapse of the logistics industry at a large scale.

Asides from these logistics challenges in Nigeria and its solutions, there is also a need for the regulatory bodies to step up and create easier systems that would aid the growth of this booming industry, with a high projection of income generation for Nigeria and other countries.

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Source: Speedaf Nigeria

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