Trade is an important aspect of Africa’s economic growth and development, helping the continent address numerous socio-economic challenges while opening up unprecedented opportunities.

Trade helps bolster economic diversification, reducing Africa’s overreliance on a few key commodities and sectors. It also encourages innovation and specialization and facilitates the exchange of goods and services both within the continent and with international partners.

Trade connects Africa’s nations to global markets, increasing their visibility and influence on the world stage.

As a result, trade has unfolded economic benefits for Africa, generating revenue for governments and businesses, creating job opportunities, reducing property, and fostering economic growth. It also helps stimulate foreign direct investment and enhances Africa’s access to technology and knowledge.

Despite these, Africa faces some logistics challenges that hinder its potential to fully benefit from its trade relations. Among these are the inadequacy of transportation infrastructure, customs and border procedures inefficiencies, and inadequate access to financial services and information.

In light of these issues, Africa is exploring initiatives for infrastructure development, including building better warehouses, to increase and facilitate trade in its region.

How Better Warehouses Can Improve Trade in Africa

Warehouses are often overlooked components of the supply chain, but they are important in facilitating global trade. Especially in Africa, where logistics challenges hinder efficient trade, better warehouses are crucial to enhance trade in Africa through:

Storage and Inventory Management

Efficient warehousing solutions can allow businesses in Africa to store their goods safely and reduce the risk of damage or spoilage. This is particularly important as Africa has a strong agricultural leg—better warehouses will allow farmers to store their produce and transport the supply to the market.

This waste reduction promotes price volatility, benefiting not only the producers but also the consumers.

Reduction in Transit Time

Transportation infrastructure is a challenge in Africa that can be solved with better warehouses. Proximity to well-equipped warehouses can reduce transit times and allow businesses to move their products to the market more efficiently. This reduces transportation costs and satisfies customer demands, making Africa more competitive in domestic and international markets.

Quality Control

Warehouses can be equipped with advanced technology to improve quality control. For example, temperature-controlled facilities can maintain the quality of perishable goods and ensure that African products meet the high standards of international buyers. This further bolsters trade opportunities and boosts Africa’s reputation in global markets.

Consolidation and Distribution

Improved warehouses can serve as consolidation points for small-scale producers. Such a setup allows these businesses, especially SMEs seeking to access broader markets, to benefit from economies of scale in transportation.

Further, warehouses located in prime destinations can act as distribution hubs to help streamline the flow of products across countries.

Recognizing these benefits, several warehouse providers have already set up their facilities in African nations, including Agility Warehouses in Africa.

Agility Logistics has a range of warehouses in various African countries, including Ghana, Mozambique, Nigeria, Cote d’Ivoire, and Egpyt. These modern facilities offer a regional distribution platform used by foreign and local companies for storage, assembly, and processing.

Our African logistics parks and warehouses deliver essential infrastructure to help companies reduce capital costs, shorten operational lead times, and de-risk entry and expansion into African markets.

Benefits of Better Warehouses in Africa

Better warehouses can boost African trade, which also brings along a range of benefits in other areas. These include:

Environmental Benefits

Better warehouses in Africa are contributing to environmental conservation through reduced food waste, efficient energy use, sustainable building practices, minimized transport emissions, and packaging optimization.

Modern warehouses in the region comply with environmental regulations and standards mainly through resource efficiency practices. As Africa continues to invest and upgrade its warehousing infrastructure, it has the potential to significantly contribute to global efforts towards sustainability and environmental improvement.

Efficiency

Better warehouses enhance logistics and trade efficiency in Africa by optimizing storage space, accelerating order processing, implementing advanced inventory management systems, improving security, maintaining product quality, integrating transportation management, and streamlining handling equipment.

As a result, these improvements are leading to faster order fulfillment and increased customer satisfaction—not to mention reduced operational costs for business operations and supply chain trading in Africa.

Costs

By optimizing space, reducing labor expenses, speeding up order fulfillment, minimizing transportation costs, improving energy efficiency, preventing product loss and damage, conducting predictive maintenance, and ultimately achieving supply chain efficiency, better warehouses are reducing costs for businesses and facilities in Africa.

These cost-saving measures contribute to the profitability and competitiveness of African businesses and supply chains.

Security

Better warehouses employ various security measures, from container security and surveillance systems to cybersecurity and security training. These help warehouses protect valuable inventory and assets, as well as contribute to safe supply chains.

The result is enhanced trust with customers and partners, providing a secure environment for business operations.

Compliance

Better warehouses maintain high compliance standards, ensuring the safety and quality of stored goods while supporting the integrity of supply chains. These enhance the reputation of African businesses in international trade and promote adherence to ethical and environmental regulations.

Access to Markets

Through efforts that include reducing transit times, ensuring product quality, facilitating trade, providing distribution solutions, and ensuring compliance with transportation and regulatory requirements, better warehouses are vital in improving Africa’s access to markets.

Better warehouses improve trade in Africa, allowing businesses to access consumers from different nations, enhancing their competitiveness and supporting Africa’s economic growth.

Learn more about Agility’s warehouses in African regions on our website.

Africa is making small strides to upgrade its logistics infrastructure. Leveraging eco-conscious technologies and innovative solutions, Africa has joined the initiative of developing sustainable logistics parks in the region, bringing about opportunities for its economy, job market, and logistics industry.

This article explores Africa’s sustainable logistics parks and its current efforts to contribute to logistics refinement.

What are sustainable logistics parks, and how many are there in Africa?

Sustainable logistics parks are infrastructure complexes designed to optimize the movement, storage, and distribution of goods in a way that is more environmentally friendly than traditional logistics operations. They use resource-efficient and sustainable practices—including renewable energy sources, waste-reduction methods, sustainable construction materials, park and warehouse design features, site selection, etc.—to reduce environmental impact.

The main goal of sustainable logistics parks is to adopt principles into their operations that meet the demands of the logistics industry while safeguarding natural resources and lowering the impact on the environment.

With power and water challenges in many places, Africa needs to put resource conservation at the forefront. That has prompted a focus on designing buildings that require less electricity to ease the burden on Africa’s electrical grids; creating parks that conserve or reuse or recycle water, which eliminates burdens on communities where clean water is scarce; prioritizing advanced waste-recycling programs to reduce the burden of landfills, etc.

Some primary characteristics of sustainable logistics parks include:

Strategic location planning
Green building designs
Electric or alternative-fuel vehicles
Waste recycling and management systems

Interest in sustainable logistics is growing in Africa. There have been recent announcements about investments of more than $50 million aimed at the growth of sustainable e-logistics operations.

Some of Africa’s newest logistics parks boast state-of-the-art features that reduce energy consumption and greenhouse emissions. They are equipped with solar panels and wind turbines that power the park’s operations, allowing it to reduce its reliance on fossil fuels.

Newer parks also have rainwater harvesting systems and waste recycling facilities. They are located near major transport routes, making them important hubs for the streamlined flow of goods.

Sustainable logistics parks contribute to the African economy and help bring about innovation. Among the benefits they provide include:

Economic growth: Sustainable logistics parks produce employment opportunities for the African workforce and promote economic diversification.
Regional integration: These logistics parks also improve the efficiency of logistics infrastructure, therefore enhancing intra-regional trade.
Enhanced competitiveness: With sustainable logistics parks in their arsenal, African businesses position themselves as key players in the international market.
Green image: Shifting from traditional logistics to sustainable logistics parks creates the impression that Africa is an eco-conscious continent.
Attracting investments: Sustainable logistics parks in Africa attract eco-conscious investors, businesses, and consumers.

How can sustainable logistics parks enhance regional connectivity and trade in Africa?

Sustainable logistics parks are becoming catalysts of trade in Africa and beyond, creating opportunities for its regions for regional integration and economic growth. Here’s how they do that:

Create efficient trade routes: Sustainable logistics parks in Africa are located near major transport hubs, including seaports, airports, and roads and railways. As such, they facilitate cheaper and more efficient trade routes, streamlining the movement of goods between regions.
Improve transportation: One characteristic of a sustainable logistics park is the use of efficient transportation infrastructure. Along with the improved facilities, these parks also expand and upgrade their transport corridors to facilitate more efficient movement.
Promote sustainable supply chains: By prioritizing eco-conscious operational practices, sustainable logistics parks reduce their environmental impact and position themselves to gain a competitive advantage in international trade.
Boost intra-regional trade: Sustainable logistics parks are making it easier and cheaper to move goods, which gives Africa access to new markets within its regions.
Attract foreign investments: As sustainability awareness becomes more rampant, businesses and investors seek facilities promoting eco-conscious and efficient trade practices. In this regard, sustainable logistics parks in Africa are attractive investments for foreign businesses.
Create employment opportunities: With more advanced logistics parks comes the need to hire specialized skills. This gives the African job market more job opportunities in logistics and administrative positions.

What challenges and opportunities exist in establishing sustainable logistics parks in Africa?

While the sustainable logistics park movement in Africa is flourishing, it still needs to navigate challenges to maximize its benefits. These include:

Infrastructure limitations: Such as inadequate transport infrastructure and underdeveloped transport corridors.
Regulatory and policy barriers: The lack of regulatory frameworks and streamlined processes for permits, licenses, and customs procedures.
Financing: Retrieving funding for the development of sustainable logistics parks is a challenge, especially in remote and less-developed areas in Africa.
Energy and water resources: Plenty of countries in Africa face issues with water and energy scarcity.
Skills and workforce development: The need to train people on modern logistics and sustainable practices.
Environmental considerations: The intricacies of environmental conservation are vast, requiring the understanding of how to adopt waste management, carbon reduction, and green building design practices, among others.
Stakeholder collaboration: There must be healthy collaboration between stakeholders, such as private investors, international partners, government entities, and local communities.

Despite these challenges, the future of sustainable logistics parks in Africa is bright. There are also a variety of opportunities for further growth and success.

By overcoming these challenges, Africa can position itself at the forefront of sustainable logistics and enjoy opportunities with economic growth, regional integration, enhanced trade efficiency, innovation, foreign investments, and a green reputation.

If your organization wants to tap into sustainable logistics parks in Africa for your shipping needs, visit our website to learn more about how we can help.

Anyone who has shipped internationally in the past knows the customs clearance process can be time-consuming and complicated.

This is even true for the customs clearance authorities, who have to deal with outdated paper-based customs procedures. The lack of efficiency and technology in customs clearance leads to several hindrances, from shipping delays and increased costs.

It’s time to modernize the customs clearance process through innovations like digitization and single-window software solutions. Adopted into the customs process, these solutions can revolutionize international shipping and global trade.

What are the benefits of customs automation?

Customs digitization or automation transforms manual, paper-based customs clearance procedures into automated and electronic systems. It makes use of different platforms, the most prominent of which are:

Electronic Data Interchange (EDI) – enables the electronic exchange of data and documents between traders and customs authorities.
Automated Customs Declarations Processing – streamlines the customs declaration process by automating valuation, origin determination, duty calculation, and tariff classification.
Risk Management Systems – assesses and manages risks involved in international trade.
Single Window Systems – centralizes platforms for submitting and processing documents and information.
Customs Management Information Systems (CMIS) – automates customs management, revenue collection, intelligence gathering, reporting, risk assessment, and performance monitoring.

These systems allow for electronically processing, managing, and analyzing shipment data. As a result, they help streamline the entire process, making it faster and quicker to transport goods across international borders.

Customs digitization involves the use of modern advanced technologies, including artificial intelligence, cloud computing, and data analytics, among others, that allow for the following functions:

Electronic data submissions
Data validation
Risk assessment
Customs declaration processing
Trade facilitation and clearance
Integration with other trade-related systems
Data analysis and reporting
Security and compliance

At the core of customs digitization is a single-window software solution, which is a centralized platform for all trade-related documents and information. This solution creates a single touchpoint for customs administration, eliminating multiple interactions and paperwork.

Customs digitization yields a range of benefits for the customs authorities, importing and exporting countries, carriers, and shippers worldwide, such as:

Modernizing customs operations
Improving transparency
Reducing costs
Promoting efficient trade facilitation
Improve trade compliance and risk management

A country’s level of import and customs automation will speak volumes about its economic competitiveness, governance, and overall trade environment. It also allows them to facilitate international commerce better and develop good trade relationships with other nations.

As such, countries around the world should embrace automation in their customs clearance processes to solidify their position in the global shipping market.

What does the single window mean for businesses?

The single window aims to establish a single, centralized platform where all customs clearance processes will be conducted. It will become a business’s single point of entry where it will submit all trade-related documents and information required to ship its goods to another country.

This system will follow a streamlined process that begins with the business registering on the platform and preparing its customs documents. The business then submits those documents in the single-window platform, which will be verified and processed by the relevant customs authority. During processing, the platform will also allow the parties to collaborate and share information, as well as provide status updates and notifications on the shipment’s progress.

The customs clearance process also takes place within the single window platform, allowing authorities and relevant agencies to work together to review documents, assess compliance, profile risks, and determine the applicable fees, duties, and taxes.

The single-window concept of customs digitization offers a range of advantages for businesses, whether they act as importers, exporters, or other parties in the international trade process. Among these benefits include:

Simplified documentation submission and processing
Enhanced clearance efficiency and speed
Facilitated planning and improved predictability in their trade operations
Reduced costs associated with paperwork, manual processes, and customs clearance delays
Assured compliance and accuracy of data, documents, and information
Increased transparency in the trade process

How to accelerate digital trade in developing countries?

Accelerating the process of customs clearance and international trade creates a massive impact on a country’s economic growth and trade competitiveness.

To facilitate digital trade, a nation must enhance its digital infrastructure by investing in internet connectivity, broadband networks, and mobile coverage.

In line with this is the need to develop digital skills among its workforce, create regulatory frameworks for digital trade, enter into agreements with other countries, and improve the facilitation of its customs processes.

Endeavoring all these initial roadblocks will prove to be a lucrative venture for developing countries, allowing them to reap the benefits of an effective digital trade system, such as:

Market access and global reach
Economic growth and job creation
Inclusive economic participation
Access to capital
Data-driven decision making

The WTO also has a role to play. Particularly, it can contribute by providing countries with a platform to develop rules that will govern digital trade.

The WTO can also make efforts to advance trade liberalization, foster interoperability, address data governance, facilitate collaboration with stakeholders, and promote digital trade inclusion.

What is the role of technology in enhancing international trade?

The international trade processes have, for too long, been relying on manual paper-based procedures that are proving to be inadequate and inefficient in today’s digital age. It’s time for the industry to utilize technological innovations to automate trade processes and reduce manual burdens.

Technology can enhance international trade efficiency by digitizing customs processes, logistics management, and supply chain tracking, among others, minimizing delays and reducing costly errors. This advancement helps make the industry more efficient, expands market access, promotes trade diversification, and contributes to economic growth.

The adoption of technology in international trade should also make way for facilitating the diffusion of knowledge and technologies, which will catapult a country’s integration into the global trading system.

Technology is a transformative force that is set to revolutionize international trade. It has a long journey to reshape traditional practices in the industry, but its adoption will pay off in dividends, expanding opportunities and driving economic development for countries worldwide.

Revolutionizing Trade with Customs Digitization and Single Window Software Solutions

Customs digitization and the implementation of single window software solutions have and are continuing to bring about advancements in emerging markets. They are revolutionizing the international trade process, enhancing transparency, efficiency, and competitiveness.

These solutions are helping emerging markets overcome barriers and streamline their customs procedures. They reduce paperwork, minimize bureaucratic hurdles, and speed up the clearance of goods. Businesses then enjoy faster and more predictable customs procedures, which benefits their supply chain management and financial stability.

Want to learn more about customs digitization and single-window software solutions?
Contact us today to speak to our experts.

The Suez Canal Economic Zone is a testament to Egypt’s efforts to become a key player in the global economy. It was created to serve as a hub for international commerce, innovation, and industrialization and has become attractive to both foreign and domestic investors. In turn, the Suez Canal Economic Zone has become Egypt’s catalyst for economic growth.

In this article, we uncover all the vital information about the Suez Canal and its economic zone and why it’s vital for the Egyptian economy and global commerce.

Where is the Suez Canal and Why is It So Significant?

A man-made waterway, the Suez Canal is located in Egypt’s Isthmus of Suez. It separates the continent of Africa from the Sinai Peninsula and connects the Red Sea and the Mediterranean Sea. The Suez Canal is 120 miles (193 kilometers) long.

The location of the Suez Canal makes it very significant in international shipping. It’s positioned so strategically that it proves a shorter route for maritime trade between the continents of Asia, Europe, and Africa. Before the Suez Canal, shipping vessels would need to go around Africa’s Cape of Good Hope to reach their destination, which lengthens their journey by thousands of miles and several days.

The Suez Canal, however, made passage through the Mediterranean and the Red Sea faster and more efficient. The construction of the canal reduced travel time and distance, in effect revolutionizing global trade by facilitating the fast movement of goods and resources.

Today, the Suez Canal is a vital link to get goods around the world. About 10% of global maritime trade passes through it. This, in turn, has helped boost Egypt’s economic growth and global integration, opening up new markets for global trade.

The Suez Canal is especially important for the transport of goods from the energy sector. It serves as the main gateway for transporting oil and liquefied natural gas from the Middle East to other countries worldwide. It makes tanker trips shorter, which reduces the cost of transportation and, consequently, the prices of fuel and energy resources. Without the canal, it would be difficult to achieve a steady supply of oil and LNG around the globe.

Why is the Suez Canal Important to Egypt’s Economy?

The Suez Canal has been a critical development that helped drive Egypt’s economy forward. Aside from generating revenue, the canal also opened up employment opportunities for locals. Here are key points that make the Suez Canal highly vital to the Egyptian economy:

Generates revenue – The Suez Canal helps Egypt earn revenue through tolls and transit fees collected from vessels that pass through the canal.
Centerpiece of the economy – The canal is Egypt’s economic centerpiece, attracting investments to the country and leading to the development of services and industries. These include ports and logistics operations.
Facilitating trade – The canal’s primary importance is its ability to facilitate international trade, making an efficient global trade route. It gives Egypt a geographical advantage, making it a key trade hub for shippers to reduce shipping costs and transit times.
Employment opportunities – The opening of the canal brought about an influx of job opportunities for Egypt’s labor market. It provided jobs to thousands of skilled workers to assist in the canal’s maintenance, operation, and administration. Several industries associated with the Suez Canal also opened up doors to employment, including logistics, manufacturing, shipping, and tourism.
Economic diversification – The Suez Canal allows Egypt to diversify its economy by attracting businesses to invest in Suez Canal’s proximity. These investments come from various industries, from manufacturing and agriculture to technology and energy.
Infrastructure development – In the vicinity of the Suez Canal grew a range of infrastructure, including logistics centers, industrial parks, and special economic zones. These make Egypt’s economy more competitive and attractive to businesses worldwide.
Regional development – The Suez Canal benefits the Egypt economic zone, and its impact spills over to its surrounding regions. It opened doors for development in neighboring areas due to businesses investing and developing infrastructure within close proximity to the canal.

What is the Suez Canal Economic Zone?

The Suez Canal Economic Zone is the Egyptian government’s development project that aims to improve the economic potential of the Suez Canal. It was established to diversify the canal’s ecosystem in order to attract more investment, innovation, and industrialization.

The Suez Canal Economic Zone is strategically located on both sides of the Suez Canal, stretching from the Mediterranean Sea to the Red Sea. This makes it positioned optimally for global trade between Asia, Africa, and Europe. The Suez Canal Economic Zone provides access to international shipping routes.

In line with its objective to foster economic growth, the Suez Canal Economic Zone also contributes to creating job opportunities and promoting sustainable development. It’s increasing its efforts to contribute to environmental conservation, with most facilities adopting sustainable practices and green technologies.

The Suez Canal Economic Zone uses a multi-sectoral approach, putting its focus on industries like agriculture, energy, logistics, manufacturing, technology, and tourism. Its vicinity is filled with ports, logistics centers, specialized economic zones, free zones, and industrial parks, all helping it facilitate international trade and industrial activity.

It encourages foreign businesses to establish operations in Egypt using the canal’s strategic location for international shipping as leverage. In support of this, the Egyptian government has also implemented reforms and objectives to further the Suez Canal Economic Zone’s mission. Among these include enhanced infrastructure development, simplified procedures, regulations, and certain tax exemptions.

Supporting the Development of the Suez Canal Economic Zone

The Suez Canal Economic Zone is a vital development for international trade. To support its growth, the Egyptian government, international organizations, and financial institutions should endeavor to provide support in the following areas:

Promoting investment and infrastructure – Promote investment opportunities in the Suez Canal Economic Zone through trade missions and investment forums, among others.
Policy and regulatory support – More favorable policies from the Egyptian government to create a business-friendly environment.
Develop skills and training – Invest in human capital development through programs to build technical skills and promote knowledge transfer.
Research and development – Implementing research and development activities within the zone, such as innovation hubs, technology transfer programs, etc.
Collaboration and partnerships – Partner with global governments, businesses, and organizations to share resources, expertise, and experience.

To support the development of the Suez Canal Economic Zone, governments and global businesses must work together to unlock the full potential of the development and contribute to Egypt’s economic growth and international shipping.

Want to know how Agility is helping modernize the Suez Canal Economic Zone? Click here.

Logistics industry executives are bullish about the African Continental Free Trade Agreement but concerns are rife around its implementation. Geoffrey White, CEO of Agility Africa joins CNBC Africa to discuss what the core value chains need to speed up the implementation of the trade pact.

In this episode I am joined by Ronald Philip, Senior Director Strategic Planning at Agility. Ronald shares a great insight to the data center market in the Middle East and Africa region, as well as providing an update on Agility’s recent data center campus site announcements.

First, we discuss Ronald’s career and how he made the progression to working in the data center sector.

We then discuss the recent announcement by Agility to develop data center campus sites in the Middle East & Africa regions. Ronald outlines the locations of the sites, why these locations were identified, the strategy around the developments, and the types of customers attracted to these sites.

Finally, we discuss the Middle East & Africa regions: how they are developing as data center markets, and why connectivity is so important to the people living across the region.

This is a great insight to the rapidly changing markets of the Middle East & Africa.

Learn more about Data Center Campuses by Agility.

This blog was originally published by Inside Data Center Podcast.

Last-Mile Logistics and Warehousing in Africa

Last-mile delivery is the final stage of the supply chain, where goods are delivered to the end customer. On the other hand, e-commerce warehousing is a type of warehouse that specializes in storing and distributing online orders. These two concepts are closely related, as e-commerce warehouses often handle last-mile deliveries for their customers.

When it comes to trade and logistics in Africa, the so-called “last mile” is often the most challenging. This refers to the last leg of the journey from the point of origin to the final destination, and it’s where many African businesses struggle to get their goods delivered efficiently and affordably.

This article gives you an overview of last-mile logistics and warehousing in Africa.

Last-Mile Delivery Service Development in Africa

In Africa, the development of last-mile delivery services has been slow. This is due to several factors, including the lack of infrastructure and low economic growth in many African countries. However, there has been a recent surge in the number of startups focused on providing last-mile delivery services in Africa.

One of the most notable startups is Sendy, based in Kenya.

Sendy is an on-demand delivery platform that connects businesses and customers with couriers. The company has raised over $1 million in funding from investors such as the IFC, a member of the World Bank Group.

Another startup that is making waves in the last-mile delivery space is Kobo360. Kobo360 is a Nigerian startup using technology to solve the problems of last-mile logistics in Africa. The company has raised over $10 million in funding from investors such as Y Combinator and Tiger Global Management.

Several other startups are also making a name for themselves in the last-mile delivery space in Africa. These companies are proof that the region’s market for last-mile delivery services is growing. With the increasing penetration of mobile phones and the internet, it is only a matter of time before last-mile delivery services become commonplace in Africa.

Warehousing Development in Africa

The development of warehousing in Africa has been a slow process due to the continent’s lack of infrastructure and investment. However, recent years have seen an increase in construction and development activity, as investors recognize the potential for growth in this sector.

Africa is home to some of the world’s fastest-growing economies, and with that growth comes an increased demand for parcel shipping, storage, and logistics services. To meet this demand, developers are constructing new warehouses and expanding existing ones.

The most active markets for warehouse development are South Africa, Nigeria, and Kenya. However, other countries such as Ghana, Tanzania, and Uganda are also seeing activity.

One of the challenges facing warehouse developers in Africa is the lack of available land. This is particularly true in urban areas, where land is scarce and expensive. As a result, many warehouses are being built on the outskirts of cities in less developed regions.

Another challenge is the lack of skilled labor. Many African countries do not have enough trained workers to staff warehouses. As a result, developers must rely on foreign workers, which can be expensive and difficult to obtain.

Despite these challenges, the future of warehousing in Africa is bright. With continued economic growth, the demand for storage and logistics services will only increase. This will create opportunities for developers who are able to meet the needs of businesses and consumers.

How Does Warehousing Work/Combine With Last-Mile Delivery?

Warehousing is a critical part of the logistics and distribution process, as it provides a place to store goods until they are needed. An effective warehousing operation can help ensure that products are available when customers want them while also helping keep costs down.

Last-mile delivery is the final step in getting goods to customers, and it can be one of the most challenging and costly parts of the logistics process. An effective warehousing operation can help minimize last-mile delivery costs by ensuring that products are stored close to the final destination.

Warehousing and last-mile delivery often work together to ensure that products are delivered to customers on time and at a reasonable cost. By doing so, these two critical parts of the logistics process can help to keep costs down and improve customer satisfaction.

The Evolution of Ecommerce Logistics Services

The e-commerce landscape has changed dramatically in recent years, and logistics services have had to adapt to keep up. In the early days of online shopping, customers were mainly concerned with convenience and price. But as e-commerce has become more commonplace, customers expect a higher level of service, including fast shipping and flexible delivery options.

Advantages That Modern Technology Brought to Ecommerce Businesses

E-commerce businesses have been booming in recent years, and a lot of that has to do with the advantages that modern technology has brought them.

Some of the most significant advantages that caused e-commerce growth in Africa thanks to modern technology are:

Faster Delivery Times

Thanks to things like same-day delivery and drones, customers can now get their orders much faster than before. This is a big selling point for many customers who value convenience and speed.

A Wider Reach

With the internet, businesses can now reach a global audience with ease. This means that there are no geographical boundaries when it comes to selling products or services online.

24/7 Operation

Since e-commerce businesses are online; they can operate 24 hours a day, 7 days a week. This is a significant advantage over brick-and-mortar businesses that have to close at night or on weekends.

Lower Costs

With no need for physical storefronts or inventory, e-commerce businesses generally have lower overhead costs than traditional businesses. This allows them to be more competitive on price.

Thanks to these advantages, e-commerce businesses can now thrive and compete with traditional companies in a way that was not possible before.

E-Commerce Fulfillment Warehousing and Last-Mile Delivery

E-commerce fulfillment and last-mile delivery are two of the most important aspects of running a successful online business. Having a well-functioning e-commerce fulfillment operation can mean the difference between happy customers who keep coming back and angry customers who take their business elsewhere. Likewise, last-mile delivery is often the make-or-break factor when it comes to customer satisfaction.

E-Commerce Warehouse vs. Traditional Warehouse

There are a few key differences between an e-commerce warehouse and a traditional warehouse. These include the types of products stored, how orders are handled, and the overall layout of the facility.

For starters, e-commerce warehouses typically store a wider variety of products than traditional warehouses. This is due to the fact that online retailers sell a greater variety of items than brick-and-mortar stores. As such, e-commerce warehouses must be able to accommodate a greater variety of SKUs.

Another key difference is the way orders are handled. In a traditional warehouse, orders are typically picked and packed by hand. This can be quite time-consuming and is often not very accurate. In an e-commerce warehouse, orders are picked and packed using automated systems. This is much faster and more accurate than traditional methods.

Finally, the layout of an e-commerce warehouse is generally quite different from that of a traditional warehouse. E-commerce warehouses are designed to be more efficient in terms of space utilization. This is necessary to accommodate the large number of SKUs that are normally stored in these facilities.

By Tarek Sultan
Vice Chairman, Agility

There can’t be a time in human memory when travel, shipping, trade and commerce have been jolted as badly by severe weather and extreme climate events as in recent months.

In China this past summer, scorching heat forced power cuts and factory shutdowns. Apple, Foxconn, Toyota, Volkswagen, Tesla and others suspended operations, cancelled orders or took other emergency measures.

Low water on the Rhine River crippled German barge shipments as Europe experienced its worst drought in 500 years. In the United States, water levels fell so low along the Mississippi River and tributaries that farmers and others were left without routes to market for agricultural and industrial goods as barges were grounded, blocked and delayed. Dry weather and snarled transport are expected to push U.S. wheat exports to their lowest levels in 50 years.

Punishing climate-related events contributed to India’s decision to ban rice exports and caused the destruction of much of Spain’s olive crop. Historic floods left 7 million people homeless in Pakistan and displaced 1.4 million in Nigeria overnight.

“Climate change and the extreme weather it spawns are making it harder for tangled supply chains to sync up with a slowing global economy,” Bloomberg says.

At some point, post-COVID supply chains may come back into some sort of equilibrium, but don’t expect an end to ruinous climate events. This past summer was the second-warmest on record for the Northern Hemisphere. The world has not experienced a cooler-than-average year, compared with the 20^th century average, since 1976.

Axios reports that a climate migration has begun. It says a number of manufacturers, hospitals, airlines and other businesses are looking to put critical infrastructure and operations on higher ground to avoid coastal flooding and storms.

“Companies large and small, some with longtime roots in their neighborhoods, are on the hunt for new real estate that is less prone to weather and climate extremes,” Axios says.

Skeptics, of course, are vocal as ever. Some warn that climate policy is the real threat. “Anyone who still thinks climate change is a greater threat than climate policy to financial stability deserves to be exiled to a peat-burning yurt in the wilderness,” one wrote recently.

Hardly. Instead, it would be foolish not to be giving serious scrutiny to your business and any vulnerability it might have to climate extremes. Some questions to ask as you do:

1. Do you need to “harden” buildings and infrastructure?

Do you need a new home for essential operations in order to safeguard against flooding, high winds, catastrophic storms, rising sea levels or drought-driven fires?

2. Are you too water-dependent?

Do you rely too much on hydropower or on inland river transportation? What’s your backup?

3. Are extreme high temperatures putting employees at risk?

How are you safeguarding them? What about your vehicles, equipment, raw materials and finished products?

4. How well do you truly understand your supply chain?

Have you mapped your T1, T2 and T3 suppliers? Do you know where they get their inputs? How vulnerable are your sourcing and transport? Do you have built-in redundancy?

5. Do you have a handle on carbon taxes?

Do you know where you might face the prospect of higher taxes simply by moving the same goods across the same borders? Or where carbon taxes could come into play when you are sourcing from and selling into new markets?

6. What if you have to move?

Can you afford to shift locations of key operations? Do you have a new location in mind? Can you find the right employees there? What kind of reputational damage would you face if you left or shrunk your footprint in a community where you have roots?

7. What’s your plan if suppliers or carriers negate agreements through force majeure?

Finally, are you committed to change? Are you all-in on the battle to reduce emissions and work toward a safer, cleaner, greener world?