Although African supply chains play a key role in the continentโs economy, logistics connects everything. In this article, we will explore how organizations can optimize their logistics operations for effectiveness.
The logistics and transportation industry on the continent is estimated to have a market share north of 500 billion dollars. Very few industries on the continent come close to this, highlighting how critical logistics and transportation are to the continent.
Although critical, not many businesses or supply chains take the time to optimize it, which leads to delays, errors, poor rate of fulfilment, and other issues. Ultimately, the customer is affected.
So, how can African supply chains optimize their logistics operations?
Optimizing the logistics operations for supply chains or businesses is not an isolated issue. Many times, it entails different departments working together for the overall good.
Here are some strategies that will help.
1. Utilize technology for operations
Technology makes all the difference. It is often lauded as the lifeline of modern supply chain management. Considering the results, it is hard to argue with that. Technology can also do the same thing in logistics.
From order processing to tracking and maintenance, there is no shortage of areas where the application of technology can greatly impact the supply chain. Technology speeds up the entire process and helps eliminate errors. These can help transform any supply chain management.
Utilizing technology to optimise logistics operations will also involve data gathering, analysis, and monitoring. This will help to find areas needing improvement.
2. Real-time tracking and visibility
The application of technology also facilitates this. Real-time tracking is the ability to access information about logistics operations instantly at any time. Implementing real-time tracking and visibility will ensure every stakeholder is in tune with the logistics operation.
Certain tech solutions, such as blockchain and the Internet of Things, make all these possible. However, real-time tracking or something similar can be achieved traditionally. It is just a much cumbersome process.
3. Route optimization
Route optimization is analysing all possible routes and developing the best solution for transporting goods and services. It doesnโt have to be a complicated process, which is where technology comes in.
With technology, routes can be analyzed instantly and provide information for the driver. However, these applications or platforms can make mistakes because of the poor infrastructure.ย
To make the most of it in Africa, these businesses can and should hire drivers with an excellent knowledge of the landscape.
4. Communication
Just as communication is critical to the survival of any relationship, it can take a supply chain from obscurity to the global stage. Many parties are involved in the logistics business, and the effective flow of information between them helps make the operation much more seamless.
First, ensure you have the right infrastructures in place and then focus on training your team on their importance and how to use both.
5. Outsourcing
This is the practice of handing over the entire or parts of the logistic operations to external stakeholders, usually referred to as 3PL or 4PL. Outsourcing is perfect for supply chains or logistics to leverage the value of experts, and they can also learn from them.
This way, these businesses get to enjoy the outcome of the operation without much of the hassle. It also allows them to focus on other core functions for the effectiveness of the entire supply chain.
6. Inventory Management
Your inventory management system is another major indicator of the success of your logistics operations. Your inventory management determines how efficient order fulfilment will be, which indicates the operation’s lead time.
There are three primary inventory management models: push, pull, and just-in-time. The nature of the product, demand, and industry will determine their application. However, monitoring them and ensuring they are working for the supply chain and logistics operation is wise.
Why must African supply chains make it a priority?
There is no shortage of reasons why African supply chains must optimize their logistics operations.
๐ญ. ๐๐๐๐๐ผ๐บ๐ฒ๐ฟ ๐๐ฎ๐๐ถ๐๐ณ๐ฎ๐ฐ๐๐ถ๐ผ๐ป: Logistics connects any business or supply chain to the consumer. The more optimized it is, the better chance African businesses have of satisfying their customers.
๐ฎ. ๐๐ผ๐๐ฒ๐ฟ ๐ฐ๐ผ๐๐ ๐ผ๐ณ ๐ผ๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐: The cost of transportation and logistics in Africa can be astronomical. Unique issues impact us differently, including poor road infrastructure, the high cost of petroleum products, security issues, etc. Optimization makes the mitigation of these risks or challenges better possible. It will also cost the supply chain less.
๐ฏ. ๐ฅ๐ถ๐๐ธ ๐บ๐ถ๐๐ถ๐ด๐ฎ๐๐ถ๐ผ๐ป: There are risks that trail logistics operations, including vehicle breakdowns, loss of goods or damage, and so many others. An optimized logistics operation will ensure these are mitigated, and the operation can proceed seamlessly.
๐ฐ. ๐๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ๐ฑ ๐๐๐ฟ๐ป๐ผ๐๐ฒ๐ฟ ๐ผ๐ฟ ๐๐ต๐ฟ๐ผ๐๐ด๐ต๐ฝ๐๐๐: An optimized logistics operations empower the business to do more and serve more customers, leading to increased throughputs. This will increase the business’s profitability and make it more successful.
Factors to consider when optimizing logistics operations
There are certain factors African supply chains and businesses have to consider when seeking to optimize their logistics operations.
๐ญ. ๐ง๐ฒ๐ฐ๐ต ๐ถ๐ป๐๐ฒ๐ด๐ฟ๐ฎ๐๐ถ๐ผ๐ป: Technology is an essential pillar in optimizing logistics. However, its integration with the existing system must be taken seriously. Otherwise, it will result in a lot of wasted effort. The tech may be good, but it becomes ineffective when it doesn’t work well with the existing system.
๐ฎ. ๐๐ผ๐ด๐ถ๐๐๐ถ๐ฐ๐ ๐น๐ถ๐บ๐ถ๐๐ฎ๐๐ถ๐ผ๐ป๐: As we mentioned, African businesses have certain limitations across the board. Some of them face more dire limitations than others. All these must be part of the consideration when trying to optimize the logistics and transportation process.
๐ฏ. ๐๐๐๐๐ผ๐บ๐ฒ๐ฟ ๐ฑ๐ฒ๐บ๐ฎ๐ป๐ฑ๐: Your customers are the ultimate logistics and supply chain operations factor. Their demands should guide the entire optimization process. If the logistics situation is optimized for speed when the customers just want fewer errors with their delivery, the entire process will count for nothing.
๐ฐ. ๐ก๐ฎ๐๐๐ฟ๐ฒ ๐ผ๐ณ ๐๐ต๐ฒ ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐: The product could be perishable or non-perishable. It could be delicate or very strong. Whatever the case, the logistics system must consider the product’s preservation and safe delivery to its customers.
FAQ’s on How African supply chains can optimize their logistics operations
๐ค๐ญ: ๐๐ผ๐ ๐ฐ๐ฎ๐ป ๐๐ณ๐ฟ๐ถ๐ฐ๐ฎ๐ป ๐๐๐ฝ๐ฝ๐น๐ ๐ฐ๐ต๐ฎ๐ถ๐ป๐ ๐๐๐ถ๐น๐ถ๐๐ฒ ๐ฑ๐ฎ๐๐ฎ ๐ฎ๐ป๐ฎ๐น๐๐๐ถ๐ฐ๐ ๐ณ๐ผ๐ฟ ๐น๐ผ๐ด๐ถ๐๐๐ถ๐ฐ๐ ๐ผ๐ฝ๐๐ถ๐บ๐ถ๐๐ฎ๐๐ถ๐ผ๐ป?
Data analytics facilitates trend identification, process optimization, and well-informed decision-making. Optimizing logistics processes through the use of data analytics leads to improved resource allocation, planning, and overall efficiency.
๐ค๐ฎ: ๐ช๐ต๐ ๐ถ๐ ๐ฒ๐บ๐ฝ๐น๐ผ๐๐ฒ๐ฒ ๐๐ฟ๐ฎ๐ถ๐ป๐ถ๐ป๐ด ๐ฒ๐๐๐ฒ๐ป๐๐ถ๐ฎ๐น ๐ณ๐ผ๐ฟ ๐๐ณ๐ฟ๐ถ๐ฐ๐ฎ๐ป ๐๐๐ฝ๐ฝ๐น๐ ๐ฐ๐ต๐ฎ๐ถ๐ป๐ ๐๐ผ ๐ผ๐ฝ๐๐ถ๐บ๐ถ๐๐ฒ ๐น๐ผ๐ด๐ถ๐๐๐ถ๐ฐ๐ฎ๐น ๐ผ๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐?
Employee training improves proficiency in order processing, inventory management, and other logistics tasks. Improved overall efficiency and more seamless operations are facilitated by well-trained personnel.
๐ค๐ฏ: ๐ช๐ต๐ฎ๐ ๐ฎ๐ฐ๐๐ถ๐ผ๐ป๐ ๐๐ต๐ผ๐๐น๐ฑ ๐๐๐ฝ๐ฝ๐น๐ ๐ฐ๐ต๐ฎ๐ถ๐ป๐ ๐ถ๐ป ๐๐ณ๐ฟ๐ถ๐ฐ๐ฎ ๐๐ฎ๐ธ๐ฒ ๐๐ผ ๐ด๐๐ฎ๐ฟ๐ฎ๐ป๐๐ฒ๐ฒ ๐๐ต๐ฒ ๐๐๐๐๐ฎ๐ถ๐ป๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ ๐ผ๐ณ ๐๐ต๐ฒ๐ถ๐ฟ ๐น๐ผ๐ด๐ถ๐๐๐ถ๐ฐ๐ ๐ฝ๐ฟ๐ผ๐ฐ๐ฒ๐ฑ๐๐ฟ๐ฒ๐?
Some of the steps include using environmentally friendly products, maximizing transportation to cut emissions, and incorporating sustainable practices into regular logistical operations.
Conclusion
There is a need for African businesses and supply chains to optimize their logistics operations, primarily because customer demands are constantly changing, and the competition is not sitting still. The strategies highlighted here will be of great help to them.
Obinabo Tochukwu Tabansi is a supply chain digital writer (Content writer & Ghostwriter) helping professionals and business owners across Africa learn from real-world supply chain wins and setbacks and apply proven strategies to their own operations. He also crafts social content for logistics and supply chain companies, turning their solutions and insights into engaging posts that drive visibility and trust.
