STRONG DEMAND FOR WAREHOUSING IN 2021

Strong Demand for Warehouse 2021

The warehousing, which comprises around 10% of the overall logistics cost, has a significant impact on optimizing the remaining 90% that includes transportation, inventory management, material handling, packaging, etc. Analysis points out that the industry is growing at a CAGR of 10.5% and is further expected to rise with the Covid-19 vaccine distribution.

The warehousing and logistics industry had an admirable run last year as Covid-19 forced businesses to focus on continuity plans and supply chain constraints. The growth momentum is expected to continue in 2021 as sectors like e-commerce, FMCG and pharmaceuticals look to penetrate deeper into tier II and III cities.

Logistics players and analysts are convinced about the sector’s performance as they say that e-commerce firms will continue to push for cost-efficient and swift last-mile delivery. Besides, the growing demand for cold chains, and with India vying to be a manufacturing hub, the requirement for large automated warehouses and omni-channel logistics solutions will continue to grow.

As per Savills India, industrial and warehousing space absorption is expected to grow 83% y-o-y to 47.7 m sq ft in 2021, driven by robust growth in e-commerce and manufacturing.

This would be driven by the challenges customers faced and had to overcome in 2020, which made it clear for many organisations, especially SMEs, that having the right partners to support their supply chain and logistics needs is a must to enable growth without disruption.

Customers will engage partners who can bring stability, scale and sustainability. There would be a clear shift in customers’ long-term strategy to make some changes to adjust to new norms, which includes increase in inventory holding and reducing supply chain costs. Customers will also continuously look out for reliability in service and ability of this segment to scale up and down without incremental costs, he added.

Warehousing demand in post Covid-19 scenario would follow a hub-and-spoke model, largely with product companies focusing on reducing inefficiencies in supply chain, which happen due to the bullwhip effect, by increasing availability of their products closer to consumption points, he added.

Omni-channel strategy has now become central for most of the companies which are into retail, FMCG and pharmaceuticals and has given a big opportunity to third party logistics (3PL) providers.

Growing demand for cold chain, pharmaceutical warehouses as well as growth in e-commerce and organised retail are likely to drive warehousing demand in 2021. In addition, strong macroeconomic fundamentals and government’s policy support in implementation will continue to fuel growth for the entire sub asset class of industrial and logistics.

Warehousing players have started to invest more in automation and mechanisation for contactless operations. Some of these warehouse technologies are smart analytics, warehouse management system, warehouse mobility solutions amongst others.

For efficient operations, the Indian warehousing sector is gradually shifting to Internet of Things (IoT). The industry has also started integrating sustainability into its standard operating procedures. Companies are adopting designs and practices that reduce their carbon footprint and operating costs.

The warehousing and logistics market in India started gaining impetus with highest supply and absorption. The demand is expected to increase in 2021 and reach close to 35 million square feet of absorption, almost similar in line with 2019 levels, supported by growing demand in sectors such as 3PL (third party logistics) and e-commerce. 3PL has become one of the fastest growing segments in the warehousing space, contributing nearly 35 percent of total net absorption in 2020.

Conclusion :

Logix Platform is a cloud based ERP software which is a modern age ERP system which manages your logistics, warehousing and transportation operations without hassle. Logix Platform is fully customizable according to your organizational needs. It comes up with e-commerce and carrier integrations to enhance your business experience. Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce. We also have more than 20+ major carrier partners like FedEx, Aramex, DHL, and UPS.

Most 3 valuable services that 3PLs could offer for eCommerce order fulfilment process

3PL Services

A significant portion of a business’s day-to-day operations involves fulfilling customer orders. The order fulfillment process begins when the customer places an order and ends when the order arrives at their doorstep.

When a business grows beyond its capability to manage order fulfillment in-house, it might be time to consider outsourcing certain functions to third-party logistics companies (aka 3PL services).

How 3PL’s handle Order fulfillment?

Receiving a third party logistics can’t fulfill customer orders if they don’t have inventory, so the first step in the process is moving your inventory to the 3PL’s warehouse.

After a customer places an order, the next step is for the third-party logistics to begin fulfilling the order by “picking” the item. Depending on the type of integrative technology the 3PL offers, this information can be automatically sent to the 3PL or you might have to upload orders to their system manually.

Once all items in an order have been picked, they are packaged for shipping. Depending on what options for customization your 3PL offers, you may be able to choose the packaging for your orders.

After the order is picked and packaged, it is forwarded to a shipping carrier. Some third-party logistics companies have a preferred shipping carrier, while others compare costs to choose the best combination of price and delivery speed. In most cases, shipping carriers pick up orders from the 3PL’s warehouses.

Not all orders end when the shipment hits the customer’s doorstep. Returns are a significant concern for many businesses, and they can get messy if you’re managing a large stock of inventory on your own. When you hand over this aspect of the supply chain to a third-party logistics provider, all returns are directed back to the 3PL, where they are processed, restocked, or disposed of according to your company’s policy.

Three Valuable services that 3PL offers :

(a) Warehouse Storage :Hiring a 3PL saves you from having to find storage space for all of your inventory. Many third-party logistics providers offer shared storage, managing order fulfillment for multiple clients out of one physical location to maximize efficiency and keep costs down.

(b) Inventory Distribution :Many third-party logistics providers manage multiple warehouse locations so your company’s inventory can be distributed across several fulfillment centers for fast shipment to different parts of the country. With the right technology, third-party logistics can automate the fulfillment process, automatically routing orders to the best fulfillment center. Third-party logistics providers make extensive use of automation like this to make inventory distribution profitable for their clients.

(c) Picking, Packing and Shipping :In addition to storing your company’s inventory, a third-party logistics provider has staff in place to perform the specific tasks associated with order fulfillment, including picking the products in each order and packaging them appropriately for shipping.

Conclusion :

At LogixGrid , every action we take while fulfilling your order has an automatic, corresponding digital counterpart in our dashboard, which keeps 3PL order fulfillment processes efficient and consistent. Each step is directed by information that is automatically populated in the dashboard when an order is placed.

It also comes up with e-commerce and carrier integrations to enhance your business experience.

TOP 5 EMERGING LOGISTICS AND SUPPLY CHAIN TRENDS IN 2021

Logistics and supply chain trends

Recent years have seen massive advancement for the logistics and supply chain industry in areas like artificial and augmented intelligence, advanced analytics, and automation, to name just a few.

Companies within the logistics and supply chain sphere must continue getting ready for all of these bigger changes with innovations from automated warehousing technology to last-mile delivery solutions, here are the top 5 emerging trends in the supply chain logistics Industry you need to know in 2021.

1. Block Chain :

In 2019, worldwide spending on blockchain solutions was at 2.7 billion; before 2022, this number is expected to climb all the way to 11.7 billion (DHL and Accenture, 2018).

Blockchain has been one of the most steadily increasing industry-reshaping global logistics trends through the last few years, and its rise shows no signs of stopping.

2. Warehouse Automation :

Warehouse automation market will grow at a CAGR of 12.6% over the next five years, making automation one of the leading trends in logistics and supply chains in the foreseeable future (MH&L, 2019).

Warehouses are cutting costs by boosting their productivity and efficiency with pick and place technologies like robotic arms, automated guided vehicles (AGVs), and automated storage and retrieval (ASRS) (StartUs Insights, 2021).

3. Sustainable Supply chain management :

The buying consciousness of the modern consumer is changing. Sustainability is now a top concern of buyers and companies alike, with many buyers pushing for more transparency into supply chains and rewarding brands who showcase their progressive political stances and green behavior.

4. Last Mile delivery :

The World Economic Forum anticipates that by 2030, 60% of the earth’s population will live in cities (World Economic Forum 2020) . This number is set to increase to 70% by 2050 (The World Bank 2021).

Coupled with growing e-commerce needs, expanding urbanization means that a major transportation and logistics industry trend will be last-mile delivery initiatives (Mordor Intelligence, 2021). Last-mile delivery costs account for more than half of companies’ overall logistics costs (Mordor Intelligence, 2021).

5. Cloud Computing :

Cloud computing is one part of the thriving global digital logistics market. The global digital logistics market is set to grow 21.7% annually between 2020 and 2025, at which point it will be worth US$ 46.5 billion (Malhotra, 2021).

As the logistics and supply chain industry digitalizes in the coming years, cloud-based software-as-a-service (SaaS) solutions will become an integral part of logistics companies’ IT infrastructures. Cloud-based logistics solutions minimize communications hurdles.

Conclusion :

Logix Platform’s innovative cloud-based logistics software is capable of managing your whole logistics and supply chain operations with ease. LogixERP is fully capable of handling all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows. It also comes up with e-commerce and carrier integrations to enhance your business experience.

OVERCOME CHALLENGES OF GLOBAL E-COMMERCE BUSINESS

Overcome Challenges Of Ecom Global Business

Introduction:

It’s no secret that we’re living in the era of international commerce. Global eCommerce business sales have increased substantially year over year, with estimates predicting that global retail eCommerce sales will crack $11.08 trillion by the end of 2021. Research on cross-border eCommerce business suggests that companies can boost their sales by an average of 10-15% by extending sales to international customers.

Of course, this is often easier said than done, as there are plenty of unique challenges in international retailing that companies will need to overcome. To help you get started, let’s review a few of the biggest issues companies face when going global.

Challenges faced by online merchants to go global :

The activity of selling or buying merchandise across international borders has several challenges. So we have listed down some of those challenges faced by the eCommerce merchants or retailers who are preparing to take their eCommerce business global in  logistics :

1. Cross-border e-commerce logistics require effective logistics processes: Cross-border deliveries are considered to be more complex than domestic deliveries. The cross-border delivery process involves numerous delivery handoffs between postal and commercial logistics partners. In this case, there is a requirement of optimized logistics processes for both customer transparency and detailed logistics reporting.

eCommerce merchants have to ensure that their customers have to be kept in the loop with proactive updates on the delivery journey. Keep in mind that customers value transparency in the logistics process.

2. Legal and logistics regulations: The legal regulations in some countries make it difficult for eCommerce merchants to reach global consumers. So before selling across the globe, the retailers should be aware of the legal rules and regulations of different markets in different countries to avoid delays in the delivery process of various markets.

Some logistical and legal considerations for aspiring cross-border shippers and eCommerce business to bear in mind :

  • Ensure to have proper documentation regarding the order and its value, shipping details from the suppliers, and all necessary information from customers. These documents should then be provided to the driver and courier companies.
  • Stay updated with the latest security regulations of various countries as per the shipping requirements.
  • Thoroughly examine local government and taxation needs to ensure customers are not surprised by additional government taxes when items arrive at their final destination.

3. The language barrier: When entering a new market, retailers need to be aware of language differences while building marketing campaigns and product descriptions. Most global e-commerce businesses use browser-based translators to make their online shopping platforms accessible to shoppers irrespective of the languages they speak. Difficulties arise when these browser-based translators can’t support certain languages.

4. Taxes, Duties, and Shipping: Of all the eCommerce issues and challenges you’ll have to deal with, one of the trickiest is navigating the world of shipping taxes and import/export fees. Every company has its own rules for how these fees are levied, and you may encounter varying types of fees as your business expands: import duties, value-added taxes, goods & services taxes, and so on. Each of these fees will affect your shipping costs and potential costs passed down to the customer, so you’ll need an easy way to calculate these totals before getting your shop set up.

 Logix platform Benefits :

  • Logix Platform is a comprehensive logistics management software that helps in managing global logistics operations and eCommerce logistics with future-proof technologies.
  • It comes up with e-commerce and carrier integrations to enhance your business experience.
  • Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce.
  • We also have more than 20+ major carrier partners like FedEx, Aramex, DHL, and UPS.

CROSS-BORDER E-COMMERCE REVOLUTION

Cross-Border E-Commerce

The transportation and logistics industry faced plenty of challenges this past year due to new customs/border regulations as well as a pandemic. Cross border e-commerce has made import and export easier than ever before as the stock is supplied when the demand arises helping the e-commerce market to grow.

1. Growing cross border E-commerce Market :

In the grand, global scheme of things, the international cross border e-commerce market surpassed the €881 billion ($994 billion USD) mark in 2020.
Market research firm Niesel revealed in a recent worldwide study that at least 57% of individual shoppers have made a purchase from an overseas retailer in the last 6 months.

This evidence suggests that has a positive impact on the businesses from whom they are buying 70% of retailers confirmed. Asia- Pacific has gained a significant growth with 62.6% share, over North America and Western Europe, who are expected to have shares of 19.1% and 12.7% respectively.

2. Expected growth in next 2-5 years :

According to the research study, the global cross border E-commerce market size was estimated at USD 780 billion in 2020 and is expected to reach USD 4820 Billion by 2026, at 27% CAGR through 2027.

Growth in Cross border ecommerce is opening up several new opportunities for logistics service providers. As in the next 5 years, a continuous adjustment in services offering is imperative for participants to meet the changing preferences of e-commerce companies and end consumers.

3. An easy access to get into this scope (Business process) :

The Explosive growth of cross border e-commerce is supported by the increasingly young and urban population of below regions with easy access to technology such as mobile phones and tablets.

North America : Canadian e-commerce retailers are considering outsourced fulfilment options to expand to cross-border and other international markets.

South America : The USA remains the most preferred destination for cross border e-commerce. However, the share is being cannibalized by China, supported by a growing preference towards chinese goods.

Europe : Mobile penetration in Europe is high, and more than 54% of the retailers expect mobile to be the potential source of order placement by cross -border eCommerce consumers.

The Middle East and Africa : The cross border e-commerce market in the region is comparatively small, but with high internet penetration and excellent infrastructure in the Middle East, cross-border e-commerce is set to grow at an exponential rate during the forecast period.

Asia-Pacific region : Last mile deliveries in rural areas remain a major challenge for logistics service providers; those with expertise in express delivery will partner with cross border retailers and set up distribution centers for quick deliveries.

Use Case and Summary

LogixGrid has come up with the solution to one of our customers who is finding it challenging since there was a large network with multiple carriers across borders. We have offered a global customer portal and API integrations platform where this customer could easily route the shipments to the particular carrier, update tracking information and complete the process.

UNION LOGISTICS BUDGET 2020

 Union Logistics Budget

Many Logistics companies are pleased with the logistics budget that was in line with their expectations. However, the industry is waiting to see the results of these measures in their field of work.

The union budget 2021-22 presented by finance minister Nirmala Sitharaman in the parliament increased the infrastructure spending significantly with focus on New Economic Corridors, improved roads.

1. Existing Scenario of the Union Logistics Budget 2020 :

India ‘s Logistic sector is pegged at USD 215 billion and as per a study by the IBEF, the sector is expected to attract investments worth USD 500 Billion by 2025 . Having received the infrastructure status in 2017, the sector has also been a massive employment generator , estimated to employ up to 40 million people by the end of 2020.

The domestic sector is set to grow at 8-10 percent over the medium term with the outlook remaining largely stable, as per ratings agency ICRA.

2. Challenges in India’s Logistics sector :

Despite these encouraging numbers , Logistics still continues to be marred with challenges, the biggest among this being the cost for transportation.

After the Logistics Budget 2020 the Indian Logistics sector costs come to about 14% of GDP, which is considerably higher compared to logistics costs in developed countries.

Higher Logistics costs lead to higher export costs, which directly impacts the competitiveness of Indian goods in international markets.

3. Benefits of the Union budget 2021 for Indian logistics :

New economic corridors, better road infrastructure : Proposal to boost operational contingencies of road infrastructure and build more economic corridors have the potential to increase efficiencies across the logistics ecosystem.

More money for Dedicated Freight Corridors : Placing a priority on the commissioning of the eastern and western dedicated freight corridors has been one of the key highlights.

Digital technology got a push : The Continued focus of a digital India with the introduction of a RS.1,500 crore scheme on digital payment which will help smoothen the customer interface for logistics companies.

Support for more Indian flag ships : A new scheme announced to be launched for flagging of merchant ships in India by providing subsidy support to Indian ship owners.

Sustainability, green energy : Intention to increase the share of green energy in the national energy grid and transition to a zero carbon fuel regime is in line with its steadfast commitment to sustainability.

Logix platform is designed in such a way to support the operations of the logistics industry with the future proof technology and profit gainer in stand all the complications with ease. LogixGRID will create better connectivity for the global market and logistics sector and can benefit from every single port and investment.

MALAYSIA LOGISTICS INDUSTRY

malaysia logistics industry

The Malaysia logistics industry is set to witness CAGR of considerable rate, during 2020-2024. Coronavirus can influence the worldwide economy by influencing production and demand, by making supply chain and market disruption, and by its monetary effect on firms and financial sectors.

The Malaysia logistics sector is constantly progressing and with the ascent of online business in the nation, organizations are taking advantage of this developing trend. The interest of the organizations in evolving areas, e.g., cold chain logistics, last-mile delivery, etc. is developing, because of the high profits and raised demand. The economy of the nation is likely to raise somewhere between 5% and 6%, driving the development of the Malaysia logistics business further. As the progress of the logistics sector is likely to be positive later on, there is a lot of scope for improvement.

To empower the Malaysia logistics sector to deal with more prominent volumes of freight, to accelerate the time taken to deliver products, and to bring down the delivery cost, a few changes should be made. There is a requirement for constant investment into infrastructure, for example, port redesigns and area expansion, rail and road network, and advanced IT system.

Key Trends of Malaysia Logistics Market

Malaysia is on the 29 positions with the longest coastline on the planet. The noticeable ports in Malaysia, which holds the significant portion of products traded, are, to be specific, Port Klang, Johor Port, Port of Tanjung Pelepas, Kuantan Port, Penang Port, Bintulu Port, and Kemaman Port. The essential location of the ports of Malaysia, combined with the minimal effort for docking, acts as a prominent driver for the market. Notwithstanding its geological advantage, the help of various shipyards, ports, and terminals reflects occasions to additionally build up the maritime economy of the nation.

The nation’s key geographic location makes it a significant transhipment hub. Port Klang is the significant port of the nation, is the main hub, with practically 70% of the volume being transhipment. However, certain difficulties exist for the ports of Malaysia; the delay in cycles in cargo operations has been affecting the logistics process of the nation, bringing about Malaysian ports losing to their local rivals. Moreover, the change of the government in Malaysia is relied upon to significantly affect the nation’s logistics sector in the future.

Logix Platform is designed in a way to handle the complex business operations of the logistics industry. With the future-proof technology at its disposal, it can with stand all the complications with ease. Complex algorithms and AI helps the system to handle multiple operations single-handedly and projects everything on a single dashboard. It also comes up with e-commerce and carrier integrations to enhance your business experience.

APAC LOGISTICS MARKET

APAC Logistics

The Freight and Logistics Market are predicted to grow exponentially during the forthcoming future in spite of the ongoing pandemic as there is an expansion in the E-commerce sector and developing infrastructure over the Asia Pacific (APAC) province and other emergent nations would push the interest for the logistics and freight sector.

If considered geographically, Asia-Pacific (APAC) at present rules the market owing to the economic development and dynamic business environment. The expansion in retail sales in Asia-Pacific (APAC) is enhancing the development of the logistics market in the region along with the rapid growth in the e-commerce sector.

Right now, more than one-third of the market share is dominated by Asia Pacific (APAC) region inferable from the presence of solid manufacturing. China is driving the logistics market in the Asia-Pacific (APAC); however, rising economies like Malaysia, Vietnam, South Korea, and Indonesia are seeing momentous development in its logistics industry. Moreover, the huge government backing for the logistics sector in the respective regions is likewise a factor boosting the development of the industry.

Logistics industry majors over the value chain are relied upon to operational efficiencies, with growing investments in innovation technology implementation. Freight forwarders that offer a ground-breaking online solution in custom brokerage, freight matching and transportation management systems are likely to change the sector with upgraded client experience. The warehousing business is projected to change essentially with automated processes because of the development of cross-border eCommerce and expanding interest for integrated supply chain solutions.

1. E-Commerce will continue to drive the logistics Industry :

The ascent of e-commerce business and the digital marketplace has changed the conformation of consumer buying demands and behaviour, as buyers now anticipate quick, free shipping, and inexpensive pricing. This demand has built up challenges to conventional logistics and supply chain models, and organizations are now compelled to change their methodologies to give the low cost and on-demand delivery provision that customers now wish for.

E-commerce projects emerging share of the retail market; this dramatic development and demand will certainly affect the logistics and transportation industry as organizations should be equipped to oversee increased volume and delivery expectations.

Fast development in the eCommerce market is increasing competition among eCommerce logistics solution providers. Innovation in fulfilling orders, delivery models, and value-added services is required to reshape the last-mile delivery segment. Manufacturers and retailers have increased both the degree of worldwide sourcing and the extent of the markets that they supply. Numerous logistics organizations are globalizing their operations in accordance with the changing necessities of their customers.

2. Substantial Market Trend :

APAC holds the biggest market share in the region : Top nations in the region are witnessing faster innovation and technical integrations in the logistics process. In most regions, the vast majority of the freight moves by road, and the trucking business is embracing industry-driving tracking technology to help track and trace anticipated delivery timings.

Expanding the trade within the Asian province, alongside a growing expansion in imports not only for manufacturing units as well as consumer items, which concludes Asian logistics.

OMAN LOGISTICS INDUSTRY

OMAN Logistics

Logistics is an important industry in Oman and plays a critical role for many businesses in the sultanate. Oman logistics industry is competitive and is lead by multinational companies through to smaller national freight forwarders. Oman logistics industry is forecasted to grow by 7% by 2020.

The goal now is to leverage technology as a disruptive enabler, build human capacity across the public and private logistics industry, and drive operational efficiencies to build an integrated logistics business environment that is benchmarked against the world’s best. Oman’s 2,092-km coastline and strategic location have made it a key destination and transit point for trade for centuries. Situated on the eastern edge of the Arabian Peninsula, Muscat has historically been the first point of contact for traders travelling between Asia, the Indian subcontinent, and the Arab world.

Role of IIC in lifting Oman Logistics Industry

From the introduction of blockchain in international shipping operations and the use of big data in aviation through to the development of new transport solutions by local haulage companies, the Knowledge Economy and the new technologies of the Fourth Industrial Revolution offer incredible opportunities for innovatively-minded industries in the logistics sector,” he added. “IIC looks forward to working in this exciting and highly competitive business environment with the teams and companies powering OLC’s progress as well as the new businesses entering this fast-moving sector.

In order to build the innovation capacity of the logistics sector, in July 2019, the OLC signed an agreement with the Industrial Innovation Centre (IIC), Oman’s national organization for industrial innovation tasked with developing the Sultanate’s industrial innovation ecosystem and enabling the industry to capitalize on techno-entrepreneurship, innovation, technology transfer, and the knowledge economy.

Noting the importance of the logistics sector as a contributor to Oman’s GDP, source of job creation and investment opportunity, Dr. Abdulaziz Al Hashmi, director of the Linking & Building Capacity Program said: We’re delighted to be collaborating with Oman logistics industry in developing the innovative capacity of this key pillar of the Sultanate’s economic growth and success.

Use Case and Summary

LogixGrid has come up with a solution for one of our customers who is finding it challenging since there was a large network with multiple carriers across borders. We have offered a global customer portal and API integrations platform where this customer could easily route the shipments to the particular carrier, update tracking information and complete the process.

Logix Platform’s innovative cloud-based logistics software is capable of managing your whole logistics and supply chain operations with ease. LogixERP is fully capable of handling all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows. It also comes up with e-commerce and carrier integrations to enhance your business experience.

EGYPT LOGISTICS INDUSTRY AND FREIGHT MARKET

Egypt Logistics

Egypt logistics industry and its economy is evolving as one of the major trading nations and creates a wide range of opportunities for the logistics service providers. According to the World Bank, Egypt has witnessed a huge surge in the logistics performance index (LPI), which improved 13 spots in 2016, from 62nd position in 2014. Many companies plan to shift their production line or expand the existing production line in the country due to commendable transformations in Egypt logistics sector.

Further, the government aims to make the country a production and distribution hub to serve Europe and the Middle East and Africa, and Egypt Vision 2030 entitled economic development as a major segment, which includes the development of the transportation infrastructure. The increasing market penetration of companies and construction activities are expected to create a demand for project and contract logistics.

Government initiatives for Egypt Logistics Sector

Due to its strategic geographical location and proximity to Europe and the Middle East & Asia, Egypt has strong trade relations through its ports. For instance, 8%-10% of the global cargo passes through the Suez Canal, which creates a huge demand for logistics services, warehousing, and storage operations. The government of Egypt has been undertaking initiatives to make the country a global logistics hub and is encouraging foreign investments in various sectors most of the freight in Egypt logistics sector is carried through roads, which has driven the government to focus on the maintenance of road infrastructure.

The logistics sector is expected to benefit from the transport infrastructure projects proposed by the government. Egypt logistics & transport infrastructure is in relatively good condition when compared to its neighbouring countries. Most of the transport routes are concentrated in Cairo and follow settlement patterns along the Nile. The transport network is supported to a great extent by inland water connections and a comparatively good rail network. The geographical location of Egypt’s ports lends it an importance in the maritime shipping sector. Moreover, the Suez Canal, which is one of the world’s five strategic chokepoints defined as a narrow strait through which an overwhelming amount of the world’s oil flows, is driving the export of oil and raw materials of Egypt. The growth of the tourism sector led to the development of several airports in Egypt in recent years.

Frequent flights within the country and ongoing improvements to the air infrastructure are expected to increase the capacity and efficiency of cargo. This is expected to drive the transport and logistics sector. Roads in Egypt carry the highest amount of freight (more than 50%), which have been maintained well. This allowed the freight and logistics market to remain profitable in the country. Though Egypt logistics & transportation infrastructure is better than most of the rest of North Africa (and Africa in general), it still suffers from high logistics costs. For example, according to industry sources, the logistics costs account for 33% of the total retail price of a product on average. This share is very high when compared to developed countries, such as the United States.

For example, in the United States, the transportation and logistics costs were valued at around 7.5%, which is more than four-fold lower expenditure than that of Egypt. The lack of proper visibility into the supply chain, improper asset utilization, and inefficiency in logistics operations are contributing to the high logistics costs in the country. Egypt logistics along with major industries are expanding healthily, along with rising domestic confidence, as seen from the increasing sales of fast-moving consumer goods. While there is a growth trend for exports of chemicals, textiles, and food products, particularly to East and Southern Africa, the businesses are still eager to witness significant growth.

The 3PL market in the country is witnessing steady growth, with increasing demand for logistics outsourcing. However, as the requirements from customers are increasing, the 3PL service providers in the country are facing challenges in their operating environments. Supply chain visibility, supply chain collaboration, and supply chain optimization are some of the important issues being faced by 3PL companies.

Use Case and Summary

Logix Platform’s innovative cloud-based logistics software is capable of managing your whole logistics and supply chain operations with ease. LogixERP is fully capable of handling all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows. It also comes up with e-commerce and carrier integrations to enhance your business experience.