Nigeria exists as the commercial capital of Sub-Saharan Africa, with its commercial activities notable across the rest of the continent. With an estimated 39.65 million MSMEs, competition among businesses, particularly in the sales and distribution segment, continues to grow stiff. The rise of the e-commerce market with its CAGR of 20.5% between 2019 and 2023 has, incontrovertibly, contributed to this competition.
What does this suggest?
The business that will survive the 21st-century market competition must not only be able to make goods available for customer purchase but also facilitate a quick, affordable, and easy means of getting the commodity across to the consumer. This need and thus ready market in the commercial sector has given rise to Nigeria’s logistics sector, currently valued at N250 billion.
For today’s Nigerian businesses looking to scale operations, improve customer satisfaction, and maximise profit, leveraging technology and logistics for service delivery has crossed from being an alternative to the holy grail. Technology and logistics play a key role in powering businesses in Nigeria by providing new opportunities for growth and innovation. With advancements in digital technologies and the increasing adoption of e-commerce, the potential for technology and logistics to drive growth in Nigeria is enormous.
Here are three ways tech and logistics are already empowering businesses to dominate their markets.
Process Automation
The fusion of technology with logistics has helped in achieving seamless and error-free execution of a variety of tasks, such as inventory management and order fulfilment since it eliminates the need for manual intervention. For business owners looking to enjoy automation in their logistics operations, here are a few ways it can be used:
Warehouse Management Systems (WMS): These systems use barcode scanning and RFID technology to track inventory in real-time, thus enabling businesses to optimise their stock levels and reduce overstocking. WMS can also improve accuracy and reduce the risk of errors in picking, packing, and shipping orders.
Robotic Process Automation (RPA): RPA software supports businesses by automating repetitive tasks, such as data entry, which in turn, saves time and reduces errors. Leveraging technology in this manner frees up employees’ time to focus on more important tasks, such as customer service.
Order fulfilment: Businesses can use automation to streamline their processes and improve efficiency. For instance, businesses can use e-commerce platforms integrated with warehouse management systems to automate the process of receiving and processing customer orders. This can help to reduce lead times and improve order accuracy.
Predictive Analytics
At the heart of quality decision making is quality insight. Predictive analytics uses data analysis techniques to extract insights from historical data and predict future trends, thereby facilitating the adoption of smarter and more informed decisions that improve business operations. Here are a few ways logistics-dependent businesses benefit from predictive analysis:
Demand forecasting: Demand forecasting uses historical sales data to predict future demand for products. By understanding the demand for their products, businesses can also improve their production planning and supply chain management.
Predictive maintenance: Predictive maintenance uses data from sensors on equipment to predict when maintenance will be needed. This helps businesses to schedule maintenance at the optimal time, reducing downtime and improving efficiency. Predictive maintenance also helps businesses to identify the root cause of equipment failure and forestall future breakdowns.
Predictive analytics can also be used in logistics to improve transportation planning. For example, businesses can use data on traffic patterns, weather conditions, and delivery times to optimise their delivery routes and reduce transportation costs.
Improved Customer Service
Technology and logistics help businesses provide faster and more accurate delivery times, as well as real-time tracking information to customers, which ultimately improves customer satisfaction. This benefit plays out in many ways, including:
Real-time tracking: Logistics technology, such as GPS tracking, can provide real-time information on the location and status of shipments. This allows businesses to respond quickly to any issues that may arise during delivery, such as delays or lost packages. Additionally, it allows businesses to improve transparency and build trust.
Automated delivery scheduling: Tech-enabled logistics helps vendors to schedule deliveries based on customer preferences and availability. This helps to reduce the risk of missed deliveries and improve the overall delivery experience for customers. In addition, businesses can use technology and logistics to provide customers with more accurate delivery timelines.
The Nigerian economy is one of the fastest-growing in Africa, so if you run a business in these climes, that’s some advantage for you. If you are willing to embrace technology and logistics, you will be well-positioned to take advantage of the many opportunities the digital age offers. Companies like GIG Logistics support your business digitally by providing data-centric solutions to your logistic challenges, whether for local or international shipping.
One of such solutions is the GIG Logistics CLASS plan. For a monthly subscription fee of N3999, you enjoy exclusive benefits such as 20% shipping discount, free pickup for bulk shipment, a dedicated account officer, free insurance cover, media visibility for business growth via the digital millionaire platform, no handling charges on Cash on Delivery (COD) & Transfer on Delivery (TOD), and priority shipping.
Business owners can take advantage of these benefits by subscribing to the CLASS plan on the GIGGo app today.
Abraham Badmus: GIGL – Three ways tech, logistics are powering businesses in Nigeria