Kampala, Uganda | PATRICIA AKANKWATSA | As Uganda continues to experience economic growth, the need for reliable and efficient logistics has become more apparent. Many businesses have struggled to meet this demand, which has limited their ability to expand and reach new markets.
According to the World Bank, Uganda’s economy grew at a rate of 3.3% in 2020, despite the challenges posed by the COVID-19 pandemic. This growth has been driven by a variety of factors, including increased investment in infrastructure and the development of new industries. However, as the country’s economy continues to expand, businesses are facing significant challenges when it comes to logistics and fulfilment.
One of the biggest challenges facing businesses in Uganda is the lack of reliable and efficient transportation infrastructure. The condition of the roads and highways can sometimes make it difficult to transport goods quickly and efficiently.
Another challenge facing businesses in Uganda is the high cost of transportation. Logistics costs can be prohibitively expensive, particularly for businesses operating in rural areas. This has made it difficult for these businesses to compete with larger, more established companies that have better access to transportation networks.
Despite these challenges, there are significant opportunities for logistics and fulfilment providers in Uganda. With the country’s economy continuing to grow, there is a growing demand for reliable and efficient logistics services. In addition, the government has made infrastructure development a top priority, which could help to improve transportation networks and reduce transportation costs in the future.
Technology also has the potential to play a significant role in accelerating access to reliable and efficient logistics and fulfilment for businesses in Uganda. One example of this is the use of mobile technology to improve the efficiency of supply chain management. Mobile applications can be used to track shipments, monitor inventory levels, and manage orders, which can help to streamline logistics operations and reduce costs.
The e-commerce sector in Uganda is growing and thriving due to the penetration of mobile technology. By using e-commerce platforms, businesses can today reach new markets and sell their products online, which has helped to expand their customer base and increase revenue. E-commerce platforms also help to simplify logistics operations by providing a centralized platform for managing orders and shipments.
According to a report by the Uganda Communications Commission, the number of mobile phone subscribers in Uganda increased from 27.7 million in 2019 to 28.1 million in 2020. This suggests that there is significant potential for mobile technology to be used to improve logistics and fulfilment in the country.
The challenge in the logistics sector affects small businesses as well as large corporations that need to move goods.
Olga Ssebaga operates a small-scale rice mill in Lukaya. Over the years she has managed to grow her operations, she now supplies her rice to retailers and supermarkets in Kampala, approximately 2 hours away. Despite her growth, she still contends with the challenges of delivery delays and expensive logistics. She confesses that this has made her lose a lot of money and business for her produce.
“Cultivating and processing rice is hard work, but supplying it to retailers and supermarkets in Kampala has proven to be an even greater challenge. Despite the growth of my business over the years, I still contend with the issues of delivery delays and expensive logistics, which has made me lose a lot of money and business for my produce. However, I am not one to give up easily. I remain determined to find a solution to these challenges and keep providing quality rice to my customers,” she says.
Perhaps the solution to Olga’s challenges lies in her embracing technology to support her supply chain to reduce operational costs.
Many technology companies are democratizing logistics in the region. Sendy is one such disruptor, the company provides technology solutions that enable businesses like Olga’s to easily move goods across different locations.
With Sendy, Olga can schedule and track her deliveries, and get real-time updates on the location and status of her shipments. She can also access a network of reliable and efficient logistics providers, ensuring that her goods are delivered on time and at affordable costs. Through leveraging Sendy’s technology, Olga can optimize her supply chain and focus on growing her business. She no longer has to worry about the high cost of logistics or the delays in delivery that have been holding her back. She can deliver her rice to retailers and supermarkets in Kampala with ease and confidence.
Olga represents a good number of entrepreneurs and businesses that have not digitized their supply chains. She is however excited about the possibilities that technology presents for her business. She believes that by embracing technology solutions, she can unlock new opportunities for growth and success.
“I understand that technology is the future of business. By embracing it, we can overcome the challenges that have been holding us back and grow our businesses, “ she affirms.
Her story highlights the challenges that small businesses face not only in Uganda but across Africa when it comes to logistics and delivery. However, with the help of technology, she can overcome these challenges and take her business to the next level. This is a testament to the power of technology to transform and improve the lives of people in Africa, and to the important role that companies like Sendy play in this transformation.
In today’s fast-paced and competitive business environment, companies need to leverage technology to remain agile and efficient. With the help of tech solutions, businesses can optimize their supply chains, reduce costs, and deliver goods to customers faster and more efficiently.
With technology playing an increasingly critical role in the success of modern businesses, companies need to stay up-to-date with the latest innovations and adopt new solutions that can help them stay ahead of the curve. Technology is the key to unlocking new levels of efficiency and success in today’s dynamic business world
Informative article.