Logistics operations will often require different fleets, but not all operations require the same fleet type. This is what led to the diversification of fleets by many logistics businesses across Africa.
Think about it: you don’t want to use an SUV to deliver a single meal when you could use a bicycle or a motorcycle. Imagine if the distance was close as well.
Do that enough times, and you will notice your business is bleeding money.
Fleet diversification is an important strategy for many transportation or logistics businesses across Africa, and we will explore why in this article.
1. Operational flexibility
The African logistics and transportation industry is one of the largest on the continent. Goods are always on the move. However, the sizes, nature, and types of goods differ, necessitating different infrastructures or vehicles.
This has led many logistics businesses to focus on specific goods that can be accommodated within their infrastructure. But with fleet diversification, it is all changing.
More logistics businesses can enjoy operational flexibility and attract more opportunities by adapting the fleet diversification strategy.
2. Risk mitigation
Operating with singular vehicle types can be risky for any transportation business seeking to explore the movement of goods of different sizes and nature.
This type of business usually has to haul everything in one vehicle. But there are different types of customers and needs. Taking one vehicle can slow down the entire process.
Worse than that, what if there is a vehicle breakdown? Every good in that vehicle will be grounded, impacting the order cycle time or lead time. Imagine the commotion that could arise.
It can all be avoided though. By adopting the fleet diversification model, the business can help mitigate the risk of transporting multiple goods of various categories.
3. Cost optimization
Considering the state of the economy across different African nations, fuel and vehicle maintenance has risen dramatically.
Logistics businesses will benefit greatly by eliminating or reducing these two as much as possible in their operations.
They can achieve this through fleet diversification. Now, these businesses have the ability to pick vehicles tailored to a specific task.
It could use a bicycle for deliveries within a short distance. This way, it is reducing the resources another vehicle could have taken up.
Fleet diversification opens more opportunities for transporting businesses to reduce costs.
4. Improved resilience
The strategic selection of a varied mix of vehicles provides the logistics business with more flexibility and adaptability. This way, they can navigate unforeseen challenges way better.
In resource scarcity, such as fuel or labour, these businesses can rely on other vehicles within the fleet to get the job done.
Resilience in crisis is similar to the risk mitigation strategy mentioned earlier. The difference is when in the middle of chaos, the business has alternatives that it can quickly leverage to keep operations running smoothly.
Countries:: Nigeria, Ethiopia, Ghana, Sierre Leone, Benin, Burkina Faso, Cote d’Ivoire, Togo, South Africa, Mozambique, Egypt, Niger, Senegal, Tanzania, Madagascar, and Cameroun.
Obinabo Tochukwu Tabansi is a supply chain mastro and writer with a decade of experience working in different facets of the supply chain. Today he is living his passion for writing on all things supply chain. His blog, Supply Chain Nuggets, is Africa’s fastest-rising supply chain blog, helping professionals, business owners, and curious minds navigate the supply chain complexities on the continent.
