The diversity of ecommerce; why companies should harness logistics services to boost their businesses
“What new technology does is create new opportunities to do a job that customers want done.” – Tim O’Reilly
It’s already 2021 and we are a little over 4 months already gone. Time seems to fly past without warning and we need to get things done. Day in day out, new innovations are born and new technologies surface. All of these are beneficial to the growth of humankind and many people now embrace or adapt to new and improved technologies. However, one aspect of technology that seems to have become significant is ecommerce. Over the past 2 years, due to the covid-19 pandemic, the human race has developed a substantial need for online retail and ecommerce. This has been coiled out of the need to stay safe and avoid human interaction as much as possible. The rippling effect of this is that essential items and packages need to be delivered from manufacturers, wholesalers and retailers to their consumers safely, conveniently and cost effectively. This has given birth to the need for logistics platforms that have the capacity, people and techniques to handle the high demands of both these companies and their consumers. Jumia, Africa’s leading online retail ecosystem takes a look at reasons why companies should harness logistics services to boost their businesses in this era.
Positive Business Results – In times past, many companies transported goods and products to their consumers or other business partners by themselves. Often these products or packages were in large numbers and were accompanied by so many setbacks and problems. In today’s world ,effectively coordinated logistics leads to so many positive business results. Third party logistics platforms now have technologies and systems to create visibility into the company’s supply chain which helps to boost production efficiency. Also the company’s management can really use analysed data from logistics partners for process optimization, fixing roadblocks and avoiding future disruptions. This eventually leads to growth.
Reduced Costs and Improved Efficiency – Imagine Delivering 10,000 boxes each of tissue paper to 8 companies across Ghana every week. Think about the cost of fuel, maintenance and manpower. In an attempt to handle the packaging and deliveries by yourself, you might end up being short staffed or spending more money. Even when you decide to use your own staff for this, their focus will be divided and this reduces their efficiency. Using a third party logistics company to handle this gives your prime employees the time, space and freedom to handle other important things and this improves efficiency.
Timeliness – How fast does the consumer need his products? In many instances, the consumers order items or packages because they needed them ‘yesterday’. This means they cannot afford any extra delays in delivery. Logistics companies have the people, capacity and technologies to get your packages delivered fast and safely. Many logistics companies have a fleet of transportation mediums, a good network and well structured systems that help provide a solution to late deliveries.
Quality Customer Satisfaction – The true success of a business is clearly defined by satisfied customers. Good logistics management creates reliable strategies that help provide seamless services to meet the consumer demands of many businesses. In addition, with every fast and affordable delivery made, companies are guaranteed repeat orders. This is because goodwill is created for the supplier which in many instances even translates to referrals and more business.
There are many benefits and opportunities in utilizing third party logistics companies today and this is driving many businesses. In every field of endeavor, logistics management plays an integral role and cannot be overlooked. When well managed, the benefits are enormous and when poorly managed, the side effects are hazardous. Ecommerce ecosystems such as Jumia now have the expertise, technology and network to manage this aspect of logistics. With experience in last mile deliveries and online retail deliveries, products are sure to be delivered to preferred destinations safely, on time and cost effectively.
Credit : Bennet Otoo (PR & Communications Manager, Jumia Ghana)