Factors affecting logistic companies in Nigeria and new innovations that has improved the industry in the recent time

Logistics companies in nigeria

Several local and foreign private companies are involved in Nigeria’s logistics industry, including Red Star Express (a partner of FedEx), United Parcel Service (UPS) and DHL. The Nigerian Postal Service (NPS), the regulatory body of the Government of Nigeria (GON), oversees the activities of stakeholders and operates the Nigerian Post Office (NIPOST), a courier service that competes with private sector couriers. A pending bill in August 2021 would replace the postal service and separate postal operators from postal regulators. However, several other aspects of the Act affected the Postal Service, including the double taxation provisions and the granting of a near monopoly to NIPOST for express shipments under one kilogram [1].

The logistics and supply chain industry is one of the fastest growing industries in Nigeria but is still in its infancy. According to the 2018 Logistics and Supply Chain Industry Report [1] reported by Vanguard, the logistics industry in Nigeria was valued at N250 billion (US$696 million) as of 2018, an increase of N50 billion (US$140 million) from the 2017 figure. Dollar) ].

Improved transportation capacity and methods.

Operational. Improvement in the time performance, notably in terms of reliability, as well as reduced loss or damage. This implies a better utilization level of existing transportation assets benefiting its users as passengers and freight are conveyed more rapidly and with fewer delays[2].

While transportation facilitates movement of goods and services as well as boosts the service industry, creating a more sustainable transportation system would increase demand in transportation services across all the different modes as well as increase productivity. It would also increase the sector contribution to our nation’s GDP and add more value to the quality of the life of citizens[3].

Innovations affecting logistics in the recent time.

As a result of technological advancement and economic forces, the face of logistics changes such that there is a growing amount of space being made accessible at a minimal cost with improvements in transport speed, capacity, and efficiency (Fearnley and Aarhaug 2019; Jean et al. 2006); also with an increase in customers’ expectation (Liimatainen et al. 2020), there are more classy options available to logistics service providers in various means (Andersson and Hasson 1998). With the development of industry 4.0, there has been emergence of networked communication, digitalization, data analytics, machine learning, and to name a few (Koch et al. 2014). The Industry 4.0 enhances the integration of various technologies to advance and transform the efficiency of logistics business dynamics (Vaidya et al. 2018; Wang and Pei 2014). As a result of Industry 4.0, the concept of e-commerce logistics was achieved for commerce and logistics to be electronically and technologically driven sequentially (van der Tuin and Pel 2020). The wide range activities of logistics such as storage, inventory management, materials handling, and order processing will be efficiently enhanced with e-commerce logistics[4].

The last few years have been truly exciting in terms of technological innovation, especially automation in business logistics. Modern tools and systems are designed to speed up organization efficiency and lead times by reducing manual interference and eliminating human error. So now is the time to adopt them. From smart weighing scales that integrate with warehouse management systems and track inventory to business process and communication software that provides real-time updates for any aspect of goods movement, there’s a customized solution for practically any logistics challenge you might face today[5].