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Challenges Facing Logistics Companies In Kenya

Challenges Facing Logistics Companies In Kenya
  • 16th August 2020

Kenya has had a promising economy which is a good thing for freight forwarding companies such as Siggol Logistics. However, just like any other economy, challenges can’t lack. The ability of Siggol Logistics to solve these challenges s what has made us stand out in the region.

Here are some of the top challenges that logistics companies face in Kenya:

1) Fuel Costs

One of the highest costs contributing to the "cutting transportation costs" concern is fuel prices. Higher fuel prices increase transportation costs. Rising fuel prices are escalating surcharges added to freight rates.

2) Business Process Improvement

Notwithstanding the need for new technology, which will be discussed later here, it has become an increasing challenge for the logistics industry to stay on top of new advances in business processes. Taking advantage of these new opportunities sounds enticing, but adoption and onboarding can be overwhelming.

3) Improved Customer Service

Customers want full transparency into where their delivery is at all times. These days, the location of a package is as interconnected as your social network. In fact, as customer expectations have increased, their willingness to pay for fast shipping has decreased, with just about 64 percent of consumers unwilling to pay anything extra for less than two-day shipping.

4) Economy

With high fuel prices comes a greater credit crisis and rising inflationary demands that take a greater toll on the Kenyan economy. This industry is then pressured by increasing compliance regulations, declining demand, and additional capacity with additional increases in key cost centers.

5) Driver Shortage & Retention

Hiring and retention remain an issue despite the lower demand mentioned above. Getting good drivers is as hard as landing the right employee in other sectors. At Siggol Logistics we carry out an intense hiring process. However, it can still be a challenge landing the right one.

6) Government Regulations

Carriers face significant compliance regulations imposed by local authorities such as Kenya Revenue Authority and Kenya Port Authority.

7) Technology Strategy & Implementation

While the industry understands and supports many of the benefits of these technologies, some questions remain as to how they will pay for it and who will help implement the improvements.
At Siggol Logistics, we understand how difficult it can be to manage these concerns. Outsourcing all or a portion of your freight and business processes can often provide the required expertise, people, capacity, and IT systems needed to help reduce expenses, improve visibility into the supply chain, effectively manage the supply chain, and achieve greater regulatory compliance. Siggol Logistics offers the right solutions to help lighten your load. From Billing and Rate Auditing to IT Outsourcing and POD Processing, Siggol is here for you.
Consider alleviating your concerns by leveraging Siggol Logistics for all of your back office outsourcing needs.

For more information and inquiries, kindly get in touch with us; |+254 726 043 791 |+254 719 280 351

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