Last-Mile Logistics and Warehousing in the Middle East

Last-mile delivery and warehousing refer to the process of delivering goods from a central location to final destinations, typically customers’ homes or businesses. This can be done via various means, including ground transportation, airfreight, or even waterways. In most cases, last-mile delivery is handled by third-party logistics providers (3PLs) who specialize in this type of service.

The term last-mile delivery is often used in connection with e-commerce, as it refers to the final stage of delivering goods ordered online to the customer’s doorstep. This has become an increasingly important aspect of online retail as customers expect ever-faster delivery times.

The term warehousing refers to the process of storing goods in a central location before distribution. This can be done for a variety of reasons, including inventory management, order fulfillment, or even seasonal fluctuations in demand. Warehousing is typically handled by 3PLs who have access to large, centrally located facilities.

The Middle East is home to a growing number of e-commerce businesses and consumers. This has created a demand for last-mile delivery, parcel shipping, and warehousing services in the Middle East. Here, we discuss everything you need to know about these supply chain concepts in the region.

 

Last-Mile Delivery’s Service Development in the GCC

The GCC region is one of the most important logistics markets in the world. Its well-developed infrastructure and large population make it a prime target for last-mile delivery services. In recent years, we have seen a significant increase in the number of last-mile delivery companies operating in the GCC.

The most important factor driving the growth of last-mile delivery in the GCC is the increasing demand for e-commerce. The region has a large and growing population of internet users, and this is translating into greater demand for online shopping. In addition, many of the region’s leading retailers are now offering online shopping platforms, further boosting demand for last-mile UAE delivery services.

Another key factor driving the growth of last-mile delivery in the GCC is the region’s rapidly expanding logistics infrastructure. Because it is home to some of the world’s largest ports and airports, it is easier for delivery companies to move goods around the GCC. This makes it easier for companies to offer same-day or next-day delivery services, which is a significant selling point for customers.

The GCC region is an important market for last-mile delivery companies. The region’s well-developed infrastructure and large population make it an attractive target for these types of businesses. In addition, the region’s expanding logistics infrastructure makes it easier for delivery companies to move goods around. This results in faster delivery times and greater customer satisfaction.

 

Warehousing Development in the GCC

The GCC has seen a surge in warehousing development in recent years as the region’s economy has grown and diversified. This is driven by a combination of factors, including the expansion of e-commerce and the rise of new industries such as food and beverage manufacturing.

There is now a need for more sophisticated and efficient warehousing solutions to meet the demand from these industries. In response, developers are constructing larger and more modern warehouses that offer a variety of features and amenities.

 

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

Warehousing plays an important role in the supply chain process, providing a safe and efficient location to store products until they are needed. But what exactly does warehousing involve? And how does it work alongside last-mile delivery to ensure that products reach their final destination?

In simple terms, warehousing is the storage of goods and materials. This can be done on a short- or long-term basis, depending on the needs of the business. Goods are usually stored in a warehouse until they are needed for distribution or sale or when returns need to be kept to sent back to the retailer.

There are many different types of warehouses, which can be classified according to their purpose, size, or location. For example, some warehouses are used for storage only, while others are used for both storage and distribution. Some warehouses are small, local operations, while others are large, international facilities.

 

The Evolution of E-Commerce Logistics Services

The internet has drastically changed the way businesses operate. In the past, companies would rely on brick-and-mortar locations to reach their customer base. Today, businesses of all sizes are tapping into e-commerce growth in the Middle East and leveraging the power of e-commerce to reach a global audience.

As the world of business has changed, so has the logistics field. E-commerce logistics is the process of planning, executing, and controlling the transportation and storage of goods in support of online sales. This type of logistics has evolved rapidly in recent years to keep up with the changing business landscape.

 

Advantages of Modern Technology For E-Commerce Businesses

Technology has brought about a revolution in the way businesses operate. E-commerce businesses have significantly benefited from the use of modern technology. Some advantages of using modern technology for e-commerce businesses are:

Increased Customer Reach

The reach of e-commerce businesses has increased manifold with the help of technology. Businesses can now reach out to customers worldwide and make deliveries overseas with the use of the internet.

Cost-effective

Technology has made it possible for firms to reduce their operating costs. E-commerce businesses can now reach out to customers at a fraction of the cost of traditional marketing methods.

Increased Efficiency

The use of technology has made businesses more efficient. Businesses can now track customer behavior and preferences with the help of technology. This tracking opportunity helps businesses customize their offerings and provide a better experience to their customers.

Improved Customer Service

E-commerce businesses can now offer 24/7 customer support and resolve queries quickly.

Increased Sales

Because companies can now provide a better shopping experience to their customers and persuade them to make a purchase, technology is paving the way for e-commerce retailers to increase their sales and boost their bottom line.

 

E-Commerce Fulfillment Warehousing and Last-Mile Delivery

E-commerce fulfillment warehousing and last-mile delivery are two of the most essential pieces of the e-commerce puzzle. Without a well-functioning warehouse and delivery system, your online business will struggle to meet customer expectations and compete with other businesses.

There are a few things to consider when setting up an e-commerce fulfillment system, including:

  • The type of products you sell
  • Your customer base
  • Your budget

The type of products you sell will dictate the size and layout of your warehouse. If you sell large items, you’ll need a larger space with high ceilings and room for forklifts or other heavy machinery. If you sell smaller items, you can get away with a smaller space.

Your customer base will dictate your delivery options. If you sell to customers in a specific region, you’ll need to set up a local delivery system. If you sell to customers across the country, you’ll need to ship your products via UPS, FedEx, or another shipping company.

 

How an E-Commerce Warehouse is Different From a Traditional Warehouse

The most significant difference between an e-commerce warehouse and a traditional warehouse is how orders are processed. In a traditional warehouse, orders are typically processed manually, with workers picking items off shelves and packaging them up for shipment. In an e-commerce warehouse, orders are typically processed automatically, with items being retrieved from storage and placed onto conveyor belts or other automated shipping systems.

Another difference between an e-commerce warehouse and a traditional warehouse is the way in which inventory is managed. In a traditional warehouse, inventory is typically managed manually, with workers tracking what items are in stock and what needs to be ordered. In an e-commerce warehouse, inventory is typically managed automatically, with computerized systems keeping track of items in stock and what needs to be ordered.

E-commerce warehouses are typically much larger than traditional warehouses due to the need to store more inventory. They are also often located near major transportation hubs, such as airports or rail yards, to facilitate the speedy shipping of orders.

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 20th 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?

E-commerce warehousing in Nigeria is becoming an increasingly popular option for businesses looking to expand their operations into the Nigerian market. There are several benefits that come with setting up an e-commerce warehouse in Nigeria, including lower costs, increased efficiency, and improved customer service. We discuss everything about e-commerce warehousing in Nigeria in this article.

Warehousing vs Fulfillment

Fulfillment centers and warehouses are both types of storage facilities. A fulfillment center is a type of warehouse that is used to store and distribute products for online brands and online retailers. These facilities are designed to be highly efficient in order to get orders out to customers as quickly as possible. 

A warehouse, is used to store a variety of different types of products. While warehouses can be used to store and distribute products, they are not as specialized or efficient as fulfillment centers.

Warehousing Service for an E-commerce Business

As e-commerce businesses continue to grow, the need for reliable warehousing services becomes more important. A warehousing service can provide your business with a safe and secure place to store your inventory and the ability to fulfill orders quickly and efficiently.

There are many types of warehousing services available, so it’s important to choose one that will fit the needs of your business. You’ll also want to consider the location of the warehouse for e-commerce, as this can impact shipping times and costs.

When choosing a warehousing service, there are a few things you should keep in mind:

  • The type of inventory you have: You’ll need to determine what type of inventory you have and whether it needs to be stored in a climate-controlled environment.
  • The volume of inventory: How much inventory do you have? This will affect the size of the warehouse you need and the price you pay for storage.
  • Shipping times and costs: Where is the warehouse located? This can impact shipping times and costs.
  • Fulfillment services: What type of fulfillment services does the warehousing service provide? This can be important if you plan on using the service to fulfill orders.

Differences Between Normal High-Volume Warehouse and Warehousing Service for E-Commerce Fulfillment

There are a few key differences between a normal high-volume warehouse and one specializing in e-commerce fulfillment. First, many e-commerce warehouses are smaller in size than traditional warehouses. This is because they need to store products closer together so they can be picked and packed more quickly. 

Second, e-commerce warehouses typically have more staff members specifically trained in picking and packing orders. This allows for orders to be fulfilled more quickly and accurately. Finally, e-commerce warehouses often use different types of technology to help them fulfill orders more efficiently, such as barcode scanners and order management software.

Warehouse Layout Adapted to Leave Dedicated Space for E-Commerce Shipping’s Needs

As the e-commerce shipping needs of businesses have changed and grown, so has the way warehouses are laid out.

E-Commerce Warehouse Layout Flexibility

In the past, most warehouses were designed with a few large open spaces for storage, with wide aisles in between for easy access. However, this layout is no longer ideal for businesses that need to ship large quantities of small items quickly and efficiently.

Instead, many warehouses are now adapting their fulfillment center layout to include dedicated shipping areas. This allows for a more streamlined shipping process and easier storage and retrieval of items. In addition, it can help reduce the overall cost of shipping by eliminating the need for multiple trips to different parts of the warehouse.

Different Access Sizes 

When it comes to e-commerce warehouses, there is no one-size-fits-all distribution center design. Depending on the products sold and the business’s size, different access sizes may be required.

For businesses that sell large items, such as furniture or appliances, a larger warehouse with loading docks, cross-docking solutions, and large doors may be necessary for more parking for vehicles. However, a smaller warehouse with smaller doors and no loading dock may be sufficient for businesses that sell smaller items, such as clothing or cosmetics.

The size of the business will also dictate the size of the warehouse. A small business may only need a few thousand square feet, while a large business may require tens of thousands of square feet.

Automation of the Warehousing Industry 

The automation of the warehousing industry is underway, and more is inevitable. With the growing demand for faster and more efficient delivery of goods, the need for automated warehouses is becoming increasingly apparent. There are many benefits to automating warehouse operations, including increased accuracy and efficiency, reduced labor costs, and improved safety.

To date, much of the focus of higher automation operations has been on the large-scale distribution centers of major retailers such as Amazon and Walmart. However, the benefits of automation can be realized in any size operation, from higher warehouses to smaller fulfillment centers. Many smaller warehouses are already using some form of automation, such as conveyor belts and robots, to move and sort inventory.

How Warehousing Automation Benefits E-Commerce Businesses

There’s no doubt that e-commerce remains one of the fastest-growing sectors of the economy. This rapid growth benefits businesses of all sizes but also comes with new challenges. One of the biggest challenges facing e-commerce businesses is fulfillment.

To meet the demands of e-commerce, warehouses must be able to store and ship orders quickly and efficiently. This is where automation can help. Automation can reduce errors, increase accuracy, and improve efficiency in the warehouse to increase returns. In addition, automated systems can provide real-time data that can help businesses make better decisions about their inventory.

What are the Needs of E-Commerce Businesses in Nigeria?

Nigeria’s large population provides a massive potential customer base for online businesses. However, setting up and running an e-commerce business in Nigeria can be challenging due to the lack of infrastructure and the high cost of doing business.

To succeed, e-commerce businesses in Nigeria need to be aware of the needs of their customers and cater to them accordingly. They also need to have a strong online presence and effectively reach their target market.

What are E-commerce Warehouse Management Systems and How Can They Help You?

There’s no doubt that e-commerce has taken the world by storm. In a few short years, online shopping has become the preferred method of shopping for many people around the globe. And as e-commerce continues to grow, so does the need for efficient warehouse management systems that can keep up with the demand.

An e-commerce warehouse management system (WMS) is a software application that helps businesses to manage and optimize their warehouse operations. A good e-commerce WMS will provide inventory management, order processing, shipping and receiving, and more.

Warehousing is an integral part of logistics and 3PL supply chain management in Egypt. It is crucial in ensuring the smooth flow of goods and materials from one point to another. There are many types of warehouses in Egypt, each with its specific purpose. 

In this article, we talk all about warehousing in Egypt.

What is Warehousing?

Warehousing is the process of storing goods and materials. It includes the receipt, storage, and shipment of goods. Warehouses store various products, including raw materials, finished products, and parts and components used in the production process.

There are many different types of warehouses, including public, private, and bonded warehouses. Public warehouses are owned and operated by government agencies. Private warehouses are owned and operated by companies and individuals. Bonded warehouses are used to store goods without having them subject to payment of import or export duties for a certain period of time.

Elements of Warehousing

The essential elements of warehousing are: 

  • Space: Space is the most important element in warehousing. Without space, there can be no warehouse. The size of the space will determine the type and amount of equipment that can be used, as well as the number of people who can work in the warehouse. 
  • Equipment: Equipment is used to move goods around the warehouse and store them. Common types of equipment include forklifts, conveyors, and shelving. 
  • Labor: Labor is needed to operate the equipment and to perform other tasks such as picking and packing orders.
  • Inventory: Inventory refers to the goods stored in the warehouse.

What is Grade A Warehousing?

Grade A warehouses meet the highest standards for quality and safety. They typically are the preferred grade of warehousing for multi-nationals and companies with strong brands. Often, they are used to store high-value or sensitive items. Grade A warehouses must meet strict construction, security, fire safety, and other factors. These facilities are often located within perimeter-walled parks or compounds and are typically monitored 24/7 by security personnel and have state-of-the-art security systems. 

Grade A warehouses are typically larger than other types of warehouses and often have multiple levels. This allows them to store more inventory and helps to keep items organized. Grade A warehouses can also be temperature-controlled to protect sensitive items from damage.

What is International-Standard Warehousing?

International-standard warehousing is a type of storage facility that meets certain standards set by international organizations. These standards ensure that the facility is safe, clean, and well-organized. They also guarantee that the warehouse staff is properly trained and that the facility has adequate security measures.

Why Should You Use International-Standard, Grade A Warehouses?

There are many reasons to use international-standard, grade A warehouses. They are clean, well-lit, and temperature-controlled. They have fire suppression systems in place and are designed to meet the needs of businesses that ship goods internationally.

Grade A warehouses also have security systems in place to protect your inventory. They are typically located in areas with good transportation infrastructure, making it easy to get your goods to market.

Using an international-standard, grade A warehouse can help you improve your bottom line. You’ll have peace of mind knowing that your inventory is safe and secure, and you’ll be able to take advantage of lower shipping costs.

Prime Locations for Warehouses in Egypt

There are many factors to consider when choosing a location for your warehouse in Egypt. Whether you’re looking for proximity to major transportation routes, access to skilled labor, or preferential tax treatment, you’ll want to do your homework before deciding.

To help you get started, we’ve compiled a list of some of the prime locations for warehouses in Egypt.

Cairo

As the largest city in Egypt, Cairo is a prime location for warehouses and distribution centers. The city is home to a major airport and seaport, making it easy to get goods in and out of the country. Cairo also has a large population – roughly 10 million providing a ready labor pool for your operations.

Alexandria

Alexandria is another major city in Egypt, and it also has a good transportation infrastructure. The city is home to Egypt’s largest port, making it a key gateway for imports and exports. Alexandria also has a large population (5.2 million) and skilled labor force, making it an attractive option for warehouse operators.

Suez

Suez is a major city in Egypt that is home to a strategic seaport. The city is located on the Suez Canal, making it an important transit point for ships travel between Europe and Asia via the Mediterranean Sea and the Red Sea. Suez is also home to a large industrial zone.

Prime Warehousing Locations in Cairo and New Cairo

There are many factors to consider when choosing a warehouse location, including proximity to markets, transportation costs, and zoning regulations. In Cairo, two main areas are considered prime locations for warehouses: New Cairo and Cairo.

New Cairo is a newly developed area on the outskirts of Cairo that offers ample space for warehouses and other industrial facilities. The site is well-connected to Cairo via major highways, making it an ideal location for businesses that need to distribute goods throughout the city. 

Conversely, Cairo is the most populous city in Egypt and home to many of the country’s manufacturing and distribution facilities, as well as the country’s largest consumer market. While warehouses in Cairo may be more expensive than those in New Cairo, they are typically closer to markets and have better access to transportation.

Main Problems Faced With Warehousing in Egypt

Several issues can impact the efficiency of a warehouse and, in turn, the profitability of a business. In Egypt, some of the main problems faced with warehousing include:

  • Lack of space: many warehouses in Egypt are small and cramped, which makes it difficult to store goods efficiently. This can lead to damaged goods, lost inventory, and higher costs.
  • Poor infrastructure: the infrastructure in many warehouses in Egypt is poor, which can affect the efficiency of operations. This includes things like lack of proper lighting, ventilation, and security.
  • Lack of technology: many warehouses in Egypt still rely on manual processes, which are not only inefficient but can also lead to errors. This includes things like manual inventory management, order picking, and shipping.
  • High costs: due to the lack of efficiency in many warehouses in Egypt, the costs of operating a warehouse are often high. This includes things like rent, labor, and energy costs.

Why It’s Important for Companies to Have Storage, Inventory Management, and Distribution Capabilities in Egypt

There are many reasons why companies need storage, inventory management, and distribution capabilities in Egypt. First, Egypt is a significant market for many products and services. Companies need to have a presence in the country to tap into this market. This means having storage facilities where goods can be stored and distributed to customers.

Second, Egypt has a lot of infrastructure development underway. This provides opportunities for companies to set up storage and distribution facilities near these construction projects. Doing so can better serve their customers and take advantage of the growing economy.

Third, Egypt is a hub for many regional and international businesses. As such, companies need to have a storage and distribution base in the country to service these customers.

Fourth, Egypt has a young population with a growing middle class. This creates opportunities for companies to target this market segment with their products and services.

Finally, Egypt is home to many historical and cultural sites. These attract tourists from all over the world, and companies need to be able to provide them with products and services.

Why It’s Important for Companies to Have Modern, Clean, Secure Facilities in Egypt

When it comes to business, first impressions matter. Your facilities say a lot about your company – and in today’s competitive market, you must ensure that your buildings are sending the right message. In Egypt, that means having modern, clean and secure facilities.

For companies operating in Egypt, having up-to-date facilities is essential to attracting and retaining customers, clients, and employees. First and foremost, modern buildings simply look better than older ones. In a country where aesthetics are highly valued, this can be the difference between getting a foot in the door or being passed over.

But it’s not just about appearances. Having well-maintained facilities also indicates that your company is professional and reliable. This impression can be even more important in Egypt, where business deals are often face-to-face. If your potential partners don’t feel confident in your ability to take care of your property, they may not want to do business with you.

Finally, safety is always a top concern – especially in a country like Egypt, where terrorist attacks and other violence are not uncommon. If your facilities are not up to par, you could be putting your employees and visitors at risk.

What Kinds of Companies Benefit From Modern, Secure, Clean, Spacious Warehousing Space in Egypt?

Many different types of businesses can benefit from using modern, secure, clean, and spacious warehousing space in Egypt. Perhaps your business is involved in producing or distributing fast-moving consumer goods (FMCG). 

Or maybe your company manufactures or sells other types of consumer products. Either way, having access to reliable and efficient warehousing and distribution network is essential for ensuring that your products reach your customers in a timely and cost-effective manner.

Other types of businesses that can benefit from modern warehousing space in Egypt include oil and gas companies, industrial and mechanical businesses, food and commodity producers, and health and pharmaceutical firms.

E-commerce has been growing rapidly in Ghana in recent years. This is driven by several factors, including the growth of Ghana’s economy and the increasing availability of internet access and mobile phone ownership there.

Warehousing vs Fulfillment

The term “warehousing” is often used interchangeably with “fulfillment,” but there is a big difference between the two. Warehousing simply refers to storing inventory, while fulfillment encompasses all the steps involved in getting products to customers, from receiving and stocking inventory to packing and shipping orders. 

Most businesses need both warehousing and fulfillment services to some degree, but the mix of services that a business needs will vary depending on the type of products they sell, their sales volume, and other factors. 

In general, businesses selling lower-priced items with a high volume of orders will need more intense fulfillment services, while companies selling higher-priced items with fewer orders will need more warehousing services.

Warehousing Service for an E-commerce Business

As your e-commerce business grows, you will eventually need to consider using warehousing services to store and ship your products. There are many benefits to using a warehousing service, including:

  • You will have more control over your inventory levels. You can manage them more efficiently and have a much greater array of product types. 
  • You can save on shipping costs by using a warehousing service that offers discounts on bulk orders.
  • You will be able to ship your products faster and more efficiently.

Differences Between Normal High-Volume Warehouse and Warehousing Service for E-commerce Fulfillment

Normal high-volume warehouses are designed to store large quantities of inventory and move it quickly and efficiently. They typically have high ceilings, wide aisles, and minimal decorations or amenities. 

Warehousing service for e-commerce fulfillment is a newer type of warehouse designed specifically to store and ship smaller items ordered online. These warehouses often have mezzanines or multiple levels to use the space and are usually located near major transportation hubs.

 

Automation of the Warehousing Industry and How It Benefits E-commerce Businesses

The warehousing industry has undergone a significant transformation in recent years, with automation playing a vital role in this change. This has been driven by the growth of e-commerce, which has placed greater demands on warehouses in terms of speed and efficiency.

Automation can help warehouses to meet these challenges by reducing the need for manual labor and increasing the rate of operations. This can have many benefits for e-commerce businesses, including:

  • Reduced Costs: Greater automation can help reduce the costs associated with running a warehouse, as it reduces the need for manual labor. This can lead to savings on wages and other associated costs over the long term.
  • Increased Efficiency: Automation can also help increase warehouse operations’ efficiency by reducing the time needed to complete tasks. This can help to improve order fulfillment times and reduce shipping costs.
  • Improved Accuracy: Automating warehouse operations can also help to improve accuracy, as it reduces the likelihood of human error. This can lead to fewer customer complaints and returns. It also allows for much faster inventory turns and replenishment than in a standard warehouse. 

 

What are the Needs of E-commerce Businesses in Ghana?

There is no doubt that e-commerce has transformed the way businesses operate. In Ghana, e-commerce is still in its early stages of development but is growing rapidly. Businesses are beginning to see the potential of e-commerce and are investing in it.

However, certain needs must be met for businesses to reap the benefits of e-commerce fully. These needs include:

  • An e-commerce platform that is user-friendly and easy to navigate
  • A payment gateway that is secure and efficient
  • A warehousing and delivery system that is reliable and fast
  • A customer service team that is responsive and helpful
  • A marketing strategy that is effective and targets the right audience
  • A competitive pricing strategy

If businesses in Ghana can meet these needs, then they will be well on their way to success in the e-commerce space.

 

Warehouse Layout Adapted to Leave Dedicated Space for E-commerce Shipping Needs

The e-commerce boom has led to a surge in demand for higher warehouses that can accommodate shipping needs. This has resulted in a need for warehouses to be adapted to leave dedicated space for shipping containers.

One way to change an e-commerce warehouse layout is to create a separate entrance and exit for shipping containers. This will ensure they are not blocking traffic flow in and out of the warehouse.

Another way to adapt your fulfillment center layout is to create dedicated space for shipping containers. This can be done by segregating a section of the warehouse for them. This will ensure that they are not in the way of other activities in the warehouse.

Layout Flexibility

The e-commerce industry is booming, and with that comes a need for warehouses that can accommodate the storage and distribution of items. One of the critical factors in choosing a warehouse is its layout flexibility.

A warehouse for e-commerce needs to be able to store a wide variety of items, from small boxes to large pallets. They also need to be able to accommodate a variety of shipping methods, from parcel delivery to truckload, such as with more parking for vehicles. 

The distribution center design can have a significant impact on its efficiency. A well-designed layout can help reduce travel time and improve picking accuracy. It can also help minimize the need for overtime and expedited shipping costs.

Different Access Sizes

Different access sizes are essential in an e-commerce warehouse because they can help optimize space and improve efficiency. For example, if items are frequently accessed in small quantities, it may be more efficient to store them in a smaller space so they can be easily retrieved. Conversely, if items are accessed in large quantities, it may be more efficient to store them in a larger space so that more can be retrieved at once. 

Different access sizes can also help improve organization and inventory management. By keeping track of which items are accessed most frequently and in what quantities, e-commerce warehouses can optimize their storage to meet customer needs better.

Another thing to consider is the access size to foster more loading and unloading efforts, allowing more in/out movements among smaller vehicles for outbound delivery, including motorbikes. 

 

What are E-commerce Warehouse Management Systems, and How Can They Help You?

E-commerce warehouse management systems help businesses manage their inventory and orders more efficiently. By automating many of the tasks associated with managing a warehouse, these systems can help businesses save time and money.

There are a number of different features that e-commerce warehouse management systems can offer, such as:

  • Automated inventory management: E-commerce warehouse management systems can help businesses keep track of their inventory automatically. This can include tracking inventory levels, reordering stock, and generating reports.
  • Order tracking and fulfillment: E-commerce warehouse management systems can help businesses track and fulfill orders more efficiently. By keeping track of orders and inventory levels, businesses can ensure that orders are fulfilled on time and that customers receive the products they ordered.

Shipping and transportation management: E-commerce warehouse management systems can help businesses manage their shipping and transportation needs. By keeping track of shipping schedules and routes, businesses can save time and money on shipping costs.

WTO chief Ngozi Okonjo-Iweala says we’ve entered an era of “re-globalization.” By that, she means companies are de-concentrating production to guard against the supply chain turmoil caused by the COVID pandemic and the war in Ukraine.

Businesses are choosing redundancy and resiliency over low cost because they think supply chain disruption will be with us for a while and because they want to protect against future shocks. The result, Okonjo-Iweala says, is the remaking of companies’ global footprints and supply networks.

Re-globalization raises lots of big questions. Among them:

Who benefits?

Okonjo-Iweala says the trend could benefit developing countries. “It could bring them into the mainstream of globalization,” she says. “We see at the WTO a clear opportunity for decentralization to go to countries that normally don’t benefit from the global supply chain and could be brought in.”

To date, companies uprooting from China, Vietnam and other Asian manufacturing hubs seem to be opting for established regional production hubs and domestic reshoring rather than setting up shop in markets they see as riskier or untested. India, Turkey, Israel and Mexico, for example, have positioned themselves as alternative production centers for home goods and furniture, luring Overstock, La-Z-Boy and others looking to build new supply lines after battling endless delays out of Asian ports.

Manufacturing decentralization and “future-proofing” are causing pains of their own. Often, the issue is less about final assembly and proximity to markets than ready access to raw materials and proximity to suppliers. High-tech companies have invested in new production facilities in India only to encounter turbulence there: Foxconn and Wistron have faced labor unrest; Apple has run up against logistics problems and unfriendly export policies.

There’s a clear gap between what CEOs want to do and what they will do. A survey by the consulting firm Kearney found 70% of American manufacturing CEOs were considering or expect to move production to Mexico – but only 17% had done so.

 

Who gets hurt?

Re globalization china

In 2019, China accounted for nearly 29% of global manufacturing output. Efforts by businesses to spread and decentralize their production are almost certain to come at China’s expense and potentially hurt other Southeast Asian manufacturing hubs such as Vietnam, Thailand, Indonesia and Malaysia.

Russia’s invasion of Ukraine makes losers of both countries. Global buyers of Russian grains, fertilizer and minerals have been sent scrambling for new suppliers. Many may make their new arrangements permanent in light of the huge array of international sanctions now aimed at Russia. Similarly, customers that bought Ukrainian agricultural goods and auto parts also have seen supplies dry up and might be wary of relying on Ukraine in the future.

Inflationary pressures arising from pandemic chaos and the Ukraine conflict have rippled to unexpected places. One example: Indonesia, supplier of 60% of the world’s palm oil, cut off all exports in late April. It said Indonesians could no longer afford cooking oil because of a surge in global demand for edible oils caused by the loss of Ukrainian sunflower oil shipments.

 

Is the world shrinking?

It seems that way to many.

In his annual shareholder letter, BlackRock chief Larry Fink recently warned: “(T)he Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades. We had already seen connectivity between nations, companies and even people strained by two years of the pandemic. It has left many communities and people feeling isolated and looking inward.”

Adam Posen, head of the Peterson Institute for International Economics, predicts that the world economy will split into blocs, “each attempting to insulate itself from and then diminish the influence of the other.” He predicts that “with less economic interconnectedness, the world will see lower trend growth and less innovation.”

Friction between China and its U.S. and European trading partners suggests that rival blocs are already emerging. U.S. Treasury Secretary Janet Yellen recently spoke of the need for “friend-shoring” — production relocations to countries “we know we can count on.” She warned against allowing countries to gain leverage in key raw materials, technologies and other products that would allow them to disrupt the U.S. economy.

Appliance maker Whirlpool is one company that says it is preparing itself for a “less global” world. Whirlpool is reviewing its businesses in Europe, the Middle East and Africa, and reassessing its mix of products and brands. CEO Marc Bitzer says the company sees less advantage in global scale and more in building its strength in individual countries and regions.

 

Does re-globalization hurt the global economy?

Re globalization global economy

Not necessarily. Supply chains are always in flux, always evolving. And that’s healthy. Putting aside the pandemic and Ukraine conflict, there are profound structural changes taking place today and many of them could help bring about a cleaner, fairer, more prosperous world.

BlackRock sees “permanent transformations unlocking exponential growth opportunities.” One is the increasing spending power of millennials – particularly those in emerging markets. “Millennials have entered their peak spending years. Emerging market consumers and millennials are driving more than 50% of global spending,” says BlackRock’s Alex Eldemir.

McKinsey describes it as the changing geography of demand. The rising middle class in developing countries is accounting for more and more consumption. McKinsey says emerging markets will consume almost two-thirds of the world’s manufactured goods by 2025; developing countries will account for more than half of global consumption by 2030, signaling their growing role in the flow of goods, services, finance, people and data.

Keep in mind that the demand shift, triggered three decades ago by China and its Southeast Asian neighbors, has barely begun in India, Africa and the Middle East, all of which will be dominated by youthful populations hungry for jobs that offer higher living standards, connectedness, and upward mobility.

At the same time, BlackRock sees regulation, technology and consumer demand driving a powerful “industrial renaissance” that is just beginning. In the supply chain, that involves new digital platforms, AI, blockchain, IoT, manufacturing automation, and 3D printing, all of which are radically lowering the cost of logistics and production.

Even more broadly, though, climate awareness and geopolitical friction are driving energy and materials revolutions that will change every facet of our lives, from how we travel and eat, to where we live and what we wear.

Re-globalization will be what we make of it.

Security is a key warehousing factor. You have to protect your assets. Poor security can lead to theft, inaccurate inventory control, and lowered employee morale. Many businesses understand why security is key to good warehousing in Ghana, Mozambique, and Cote d’Ivoire. For that reason, many companies have turned to logistics parks that include security solutions to protect their assets and make a positive impact on the global supply chain.

Why security is important to good warehousing in Ghana, Mozambique, and Cote d’Ivoire

Security is key to good warehousing regardless of geographical location. And in countries and industries that play a large role in the supply chain, it’s even more important.

What role does security play in warehousing in Ghana, Mozambique, and Cote d’Ivoire?

Warehouse security plays a large role in sub-Saharan Africa countries like Ghana, Mozambique, and Cote d’Ivoire. There are several benefits to investing in warehouse security:

  • Protecting your facility and employees against potential violence that can occur in rural or urban areas.
  • Keeping your employees healthy and safe, even during outbreaks like malaria, HIV, and the COVID-19 pandemic. This includes health screenings and access to lifesaving medicine, including the COVID-19 vaccine.
  • Encouraging stakeholders to invest more into your company. Investors want assurance that they’re investing their money wisely, and a secure warehouse helps achieve that.

What are the biggest security problems faced in warehouses in Ghana, Mozambique, and Cote d’Ivoire?

Unfortunately, many African countries face security problems. And this largely stems from lack of infrastructure and resources. Sub-Saharan Africa, home to some of the world’s fastest growing economies in recent years, has been hit hard by the pandemic. The IMF’s 2022 growth projection for the region is 3.8 percent – well below the 5 percent plus rates enjoyed in many years prior to the COVID-19 outbreak.  Lack of widespread access to the COVID-19 vaccines will continue to hamper economic activity across the region.

These obstacles detract focus from security. The labor shortage and health risks caused by the COVID-19 pandemic have forced companies to choose between focusing on secure warehousing and running daily operations. The World Bank, among others, is trying to help stabilize the economy. As the economy stabilizes, more companies will have the resources to move into logistics parks with built-in security.

What can happen to warehousing in Ghana, Mozambique, and Cote d’Ivoire without good security?

Warehousing in any country can fail—including countries like Ghana, Mozambique, and Cote d’Ivoire. Subpar security can lead to theft by employees or outside parties, data breaches, and severe supply chain interruptions. Since all of this could lead to losses on your company’s bottom line, you need to make sure that your warehouse security is top notch.

Best security practices for warehouse space in Ghana, Mozambique, and Cote d’Ivoire

The best security practices for warehouse space in souther and West Africa rely on infrastructure and technology. There are also factors that affect security needs in these regions, and it’s important to understand them.

What factors affect security needs in warehouse space in Ghana, Mozambique, and Cote d’Ivoire?

All warehouse space faces security threats like burglary, vandalism and data breaches. However, many African countries are up against challenges that much of the Western world isn’t.

However, there is good news that can increase security and help alleviate safety concerns. And it comes in the form of logistics parks.

What do you need to have the best security in warehouse spaces in Ghana, Mozambique, and Cote d’Ivoire?

Logistics parks offer more than just warehousing. They are full-service work environments for your employees, clients, and operations. And because they offer 24-7 security solutions, they are the safest ways to do business in West and South Africa.

Here are a few ways that a logistics park can increase your safety and security:

  • Walled compound to protect your facility, employees, and products
  • Closed-circuit TV recording
  • Fire-safety features like sprinkler systems

Additionally, logistics parks provide electricity, internet infrastructure, and custom amenities created to fit your company’s needs. In other words, to have the best security in warehouse spaces in Ghana, Mozambique, and Cote d’Ivoire, you need a logistics park.

What role does technology play in security for warehouse space in Ghana, Mozambique, and Cote d’Ivoire?

The best security for warehouse spaces involves technology. Here are a few examples of security measures that you can add to your logistics park to boost security:

  • Security cameras and surveillance system
  • Alarm system
  • Trained guards
  • Inventory tracking as an anti-theft measure
  • Security software to prevent data breaches

To obtain the technology and resources for these security measures, you need the infrastructure to support the electrical, personnel, and internet needed to run them. And with the increase in profitable businesses like the automobile industry and solar power throughout Africa in recent years, the infrastructure needed to improve warehouse security is growing.

Improvements to warehousing security in Ghana, Mozambique, and Cote d’Ivoire

With the evolution of the African Growth and Opportunity Act in the United States, warehousing security is improving in Africa. This is especially true in countries like Ghana, Mozambique, and Cote d’Ivoire.

Who is developing improvements to warehousing security in Ghana, Mozambique, and Cote d’Ivoire?

Africa displays strong resilience in the face of its challenges. African  economies are competing in the world market, attracting the interest of international investors, and beginning to trade with more countries around the world.

Thanks to these promising improvements, much of sub-Saharan Africa is trending toward economic growth. Companies like Agility Africa who see the region’s potential are providing technical assistance and building logistics parks to increase Africa’s presence in the global supply chain.

What factors drive improvements to warehousing security in Ghana, Mozambique, and Cote d’Ivoire?

The world economy is changing, and Africa wants to be part of it. The desire to increase their presence in the global supply chain is a significant factor that drives improvements to warehouse security.

Logistics parks are also increasing secure warehousing in West and southern Africa. The best parks offer on-site security management and routine perimeter sweeps to ensure the safety and security of the entire company. And as the African infrastructure improves, so will the capacity to make facilities even more secure.

How will improving warehousing security in Ghana, Mozambique, and Cote d’Ivoire impact the African economy?

Improving warehousing security in these nations should have a positive effect in the overall economy. As security improves, more companies will open facilities in the area. Each facility creates jobs, productivity, and innovation. And because more people will be working, the money they’ll put back into the economy will stimulate economic growth.

Best bonded warehousing in Ghana, Mozambique, and Cote d’Ivoire

Bonded warehousing can be difficult to come by. You need security to protect the goods, a strong warehouse receipt system to prove where the goods came from and are sold to, and the land and labor to support the warehouse’s operations. Fortunately, there are bonded warehousing opportunities throughout sub-Saharan Africa.

What is bonded warehousing?

A bonded warehouse stores imported or exported goods without having to pay customs duty or value added tax until the goods are sold to customers.

In other words, bonded warehousing provides a secure facility and logistics control for international goods. And since the logistics company doesn’t have to pay duties up front, it’s a lucrative way to warehouse.

What factors do the best bonded warehouses in Ghana, Mozambique, and Cote d’Ivoire share?

One of the factors is ethics compliance. To successfully compete in the global supply chain, warehouses and logistics parks must set high standards to attract new investors and avoid government scrutiny. When a company is on the up and up, it’s less of a risk for investors to finance their operations.

Additionally, high-end logistics parks have become a key factor in the best bonded warehouses. Logistics parks offer the storage, distribution, and operation capabilities that a bonded warehouse needs to efficiently transport their goods to their customers.

Technology is also a factor. In fact, 64 percent of supply chain executives believe that digitization and robotics are large elements to overcoming the economic recession caused by the COVID-19 pandemic.

Where can you find the best bonded warehousing in Ghana, Mozambique, and Cote d’Ivoire?

Bonded warehousing has become more available in West and southernm Africa in recent years. Land and labor are available in countries like Ghana, Mozambique, and Cote d’Ivoire, and companies are building logistics parks and increasing production in these developing regions.

Logistics parks are the best way to secure your warehousing in Ghana, Mozambique, and Cote d’Ivoire

You need an expert partner when you open warehouse space in southern and West Africa. Agility is that expert! Agility Logistics Parks provide infrastructure, round-the-clock services, and all the facility necessities and amenities to set you up for success.

Visit our website to find out how are flexible solutions fit your needs.