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How To Build and Run a Tech-Enabled Logistics Startup in Nigeria

Emmanuel Nnaemeka

Techibytes

  While transportation and logistics technology trends create lucrative opportunities for Logistic Delivery companies in Nigeria, it also brings up new challenges. Increased online shopping has also heightened the intensive focus on logistics, which introduces a unique set of challenges. Nevertheless, the e-logistics industry has shown that while challenges exist, opportunities abound too. In 2020, the industry contributed more than $344.2 billion in revenue in Africa.
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In the age of online shopping and e-commerce, logistics services are critical in getting products to customers in a timely fashion. A vigorous delivery system can effectively deal with all problems associated with tracking consignments and delivering products. Aside from the internal challenges that plague the logistics industry, external challenges like infrastructure, regulations and the absence of innovative solutions affect the effectiveness of building and running a tech-enabled logistics company in Nigeria. Despite the challenges of running a logistics business in Nigeria, the presence of leading tech-enabled companies in Nigeria such as Topship, Kwik, OnePort 365, Gokada, Kobo360, Vendease, truQ, Jumia, Max.ng and Shapshap indicate that the tech-enabled logistics industry is a profitable one so long you apply the right strategies. This article, therefore, discusses pivotal strategies that can help you build and run a successful tech-enabled logistics company in Nigeria. The first point of concern when attempting to start, run and grow a tech-enabled logistics startup is to identify the solutions you wish to provide and the level you wish to operate. This should be determined by your level of knowledge and skill in the niche as well as the available funding and network of team members and other stakeholders. Regarding the area of solutions, there are some solutions logistics startups can provide which include booking, instant warehousing, customs brokerage & marine insurance.   Also, some logistics startups allow customers to access food delivery, eCommerce, and ride-hailing using motorcycles to fulfil customer orders. The beauty of logistics is that you can expand into ventures such as moving from ride-hailing to vehicle subscription and financing services. Other startups enable agro supply chain, e-commerce, and food delivery through their logistics arm. Some provide solutions that are focused on documents, parcels, medicines, food delivery, and other retail deliveries.
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  At the core of tech-enabled logistics service is developing a digital platform with superior features. Some of these features include real-time which can transform your parcel and courier delivery business. This feature is traditionally in three components, which can easily enable on-demand courier delivery apps. They include the admin, user, and driver. With the presence of this feature, the user can track the location of their package in real-time in the customer’s version. The second feature that makes delivery apps functional is the packaging alternatives. This is very important to growing your logistics company. This feature allows the user to get a unique packaging service that is devoid of damage during delivery. This could be an extra and fee-based service for app users. The fees are specified by the size and material of the packaging. The third important feature is the Notification Push. We cannot imagine an on-demand Logistics Delivery app lacking this feature. With this feature, users can receive live updates and real-time delivery status through. Moreover, with the push notifications incorporated, the app can send messages about the current stage, estimated delivery time, and changes in the route or time of delivery. Notifications with the driver’s information can also be sent. Finally, an e-logistics platform must have the Help and Support feature. This is essential because, in the event of an unusual delay in parcel delivery or other related issues, app users or shoppers can quickly contact the help desk right on the app. With this feature available, it can significantly boost trust, while creating a loyal customer base. Building and running a logistics company in Nigeria can be very complicated and competitive. However, reaching out and building a network of relationships with relevant stakeholders will ease the problems of building a sustainable startup in a very harsh economy like Nigeria. In truth, building a successful business in Nigeria thrives on relationships and the logistics industry is no exception. These are the relevant stakeholders in the logistics industry: forwarding partners, customs brokers, shipping companies, regulatory agencies, the government, agents and carriers, final customers and any other individual or group that may influence or be affected by the outcome of a specific logistics project. Hence, some platforms which offer opportunities to link up and build network relationships include industry conferences, unions, social media platforms, etc.
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In the e-logistics industry, there are diverse marketing strategies to adopt in your startup company if you want to stand out. Logistics companies must engage in multiple marketing strategies which include using both new and traditional media. Logistics startups need to supplement new media with old models such as print media, which include billboards, newspapers and weeklies,  consumer and trade Magazines, etc. Also, having an active and well-managed social presence can do all the magic for your startup.

Conclusion

Building and running a successful e-logistics company is about creating a team of passionate people who are interested in leading a technology-enabled company that is driven by a vision to solve the mobility challenges in Africa. Also, it is all about wanting to get people and goods to their destinations hitch-free. Making it a personal mission will help you to understand the frustration of epileptic transportation, thereby motivating you to offer innovative solutions. Finally, the heart of your operation should be about making mobility safe, inexpensive, available, and sustainable through the deployment of high-performance technologies and operators. Featured Image Source: Techibytes
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