The Impact of Delivery Delays and Theft on Nigeria’s Logistics Sector
The logistics sector in Nigeria faces significant challenges, primarily due to delivery delays and thefts, which collectively result in substantial financial losses each year. Jerry Okogbue, the Chief Executive Officer of SysServe Solutions Limited, recently highlighted these issues during a media discussion aimed at addressing the losses incurred in the Haulage and Logistics subsector. He emphasized that the introduction of an intelligent Journey Management System could play a crucial role in mitigating these losses, which are estimated to run into billions annually.
The Financial Toll of Inefficiencies
Okogbue pointed out that the logistics and transport sector in Nigeria experiences financial drain due to various factors. These include:
- Delivery delays
- Fraud
- Theft during transit
- Vehicle downtime
He attributed these challenges to poor visibility and a lack of structured journey control systems, which hinder effective management and oversight of logistics operations.
Insights from Industry Experts
Johnson Owoeye, the Chief Operating Officer at SysServe, shared his observations from over seven years of collaboration with transporters and cargo owners. He noted that despite considerable investments in tracking systems and Enterprise Resource Planning (ERP) software, many organizations continue to struggle with optimizing their operations. A common issue is the reliance on traditional communication methods such as phone calls and WhatsApp messages to obtain journey status updates and share proof of delivery documents. This method not only causes billing delays but also hampers the ability to make data-driven decisions essential for process improvement.
The Solution: Instanta Haulage
In response to these persistent challenges, SysServe has developed Instanta Haulage, a sophisticated journey management and monitoring system. Kazeem Balogun, the Chief Technical Officer, explained that this innovative product leverages artificial intelligence (AI) and geofencing technology to automatically track critical milestones in the logistics process. Key features of Instanta Haulage include:
- Monitoring exact loading and offloading times
- Recording departure and arrival times
- Tracking turnaround times
- Noting delays and instances of lost goods in transit
- Providing minute-by-minute updates on journey events
This system is designed to function without requiring manual input from drivers, thereby streamlining operations and enhancing efficiency.
Transforming Operations Across Industries
Adeola Atoki, the sales lead at SysServe, indicated that Instanta Haulage is already making a significant impact across various sectors, including oil and gas, third-party logistics, and fast-moving consumer goods (FMCG) distribution. She emphasized that the system helps eliminate the delays and uncertainties associated with manual tracking in haulage operations, ultimately improving turnaround times and reducing losses.
Atoki stated, “Instanta Haulage allows companies to monitor goods in transit and gain visibility across every trip without the need for calls or WhatsApp updates.”
Addressing Operational Challenges
Rukayat Ajibade, the marketing lead at SysServe, further corroborated the need for a more efficient system. She expressed that reliance on manual processes not only diminishes confidence in operational reports used for billing and optimization but also creates a stressful and fragmented workflow prone to errors. The traditional methods consume valuable time and create blind spots that hinder effective decision-making and operational insights.
Ajibade reiterated the importance of Instanta Haulage in providing real-time visibility and control over haulage operations, from trip planning to delivery, billing, and reporting. The use of AI and geofencing ensures that key milestones are automatically tracked, allowing for more efficient logistics management.
Conclusion
The logistics sector in Nigeria must address the ongoing challenges of delivery delays and thefts to minimize financial losses. By adopting advanced technologies like Instanta Haulage, organizations can enhance their operational efficiency, reduce reliance on outdated tracking methods, and ultimately improve their bottom line. The integration of AI and geofencing technology into logistics operations represents a significant step forward in achieving greater visibility and control in this critical industry.
