GIG Logistics has not only positioned itself as Nigeria’s leading indigenous logistics company with the strongest delivery network, now it is disrupting the ecosystem for service delivery.
GIG Logistics is a co-subsidiary with the passenger transportation business, GIG Mobility under the GIG Group. GIGM has enormous presence on the ground all over Nigeria.
The Company which is constantly looking for ways to use technology to make processes simpler and user friendly, on Tuesday, launched GIGGO App.
GIG Logistics is relying on GIGGO, a one-stop-shop app, and other robust equipment, to meet a target of 2-hour delivery window for intra-city deliveries.
The GIGGO App falls into this category of transformational possibilities.
- GIGGO Customer App and
- GIGGO Partner App
With the GIGGO Customer App, customers can order for pick-up from the comfort of their homes or offices for onward delivery within and across cities at the best rates.
This would ensure that we can meet our target of 2-hour delivery window for intra-city deliveries.
The GIGGO Partner App on the other hand enables GIGL to scale faster without committing too much scarce resources, increase its market share, simplify operations and makes entry into new markets easier. It also creates employment opportunities and serves as an alternate source of income to others. It is the first customized App in Nigeria that handles pick-up and delivery countrywide.
Speaking at the glamourous event at GIG Logistics location at Gbagada, Lagos, the Chief Operations Officer, Mr. Ayodele Adenaike, said although doing logistics business in Nigeria is difficult because of the challenges faced however, they have to overcome these difficulties if the Company will tap into the enormous opportunities available.
He said it is pertinent to note that the Nigerian logistics business environment is better suited for indigenous companies who have greater knowledge of the terrain.
“GIG Logistics’ local knowledge coupled with technology has enabled it to actively compete with the big multinational logistics companies who are likened to the sharks. Sharks are not wired biologically to survive in the rivers where the crocodile is the king.
“The Nigerian logistics space is likened to the river where the big sharks cannot survive and the indigenous logistics companies are the crocodile. GIGL is ours to build, together we can collective shapen the African narrative in the logistics space”, he said.
How it all started
Earlier in his speech, Mr. Adenaike reiterated how technology has evolved over the years and will keep changing.
“It will continue to dictate the way we do business generally because the whole world is now a global village. The time has come for businesses to constantly look into how to leverage technology and innovation as a competitive edge not only to keep ahead of competition but also to prevent their businesses from extinction.
“Today, technology is an integral part of our everyday live. Businesses that are strategic are more likely to use technology to make processes less cumbersome, lower the cost of production and make it easier for customers to access company products and services.
“The use of tracking devices to monitor movement of shipments, RFID technology and warehouse robots to mention a few have had tremendous impact on logistics operations and the new concepts like 3D printing, drones, Internet of things, block-chain technology and autonomous vehicles promises to bring about increased efficiencies in logistics operations.
“In Nigeria, technology can be used to create more value in spite of the myriad of problems faced by operators. We are all aware of the logistics challenges of bad roads, lack of access to fund to acquire fleet which is even more pronounced now because of the hike in the exchange rate, high cost of spare parts to maintain fleet and weak digital payment infrastructure etc. While acknowledging that these challenges exist, it is important to stress that technology can be the way out in overcoming some of these barriers.
“The traditional courier companies, especially the multinationals, leverage on existing structures to execute last mile delivery for e: commerce. However, the greatest challenge facing these companies in the e: commerce space is Cash on Delivery where the delivery courier waste precious time in collecting money for the merchandize.
“Although online payment and P.O.S machines are available, some traditional shoppers do not trust online platforms and are not willing to release their financial details online. Others want to see the merchandize to be sure it is real before they make payment. Because they are measured on speed of delivery in their existing global network, these courier companies operating in the Nigerian space cannot afford to waste time on delivery which would impact on their overall operational performance and are therefore struggling to compete in the last mile delivery.
“Furthermore, there is also the challenge of the difficult terrain caused by lack of infrastructure in Nigeria. The major determinants of efficiency in the last mile, good roads, are hard to come by. Consequently, courier companies must have to adapt to doing business in this difficult terrain in order to be successful”, he said.
Quoting Deloitte and a Washington, DC- based leadership organization, he said that the Council on Competitiveness, came out with the Advanced Economic Initiative: Manufacturing and Innovation Report in November 2015 which clearly shows the benefits to be gained from transformational possibilities are enormous “because this provides new opportunities and create growth”.
“Consequently, courier companies must have to adapt to doing business in this difficult terrain in order to be successful. One of the ways by which this can be achieved is to consider customized I.T Solutions that are tailored to the particular strategic direction of the company. Another way is to look for innovative ways to create delivery networks that are totally different from the traditional way of directly owning delivery fleet.
“A very potent technological tool that can be used to optimize existing products for existing customers and enhance profitability in the logistics industry is the use of social media. The drawbacks applicable to the deployment of drones and autonomous vehicles in Nigeria can be countered by the effective use of social media.
“According to Jumia`s third white paper on Nigeria mobile trend in 2017, 97 million Nigerians use mobile phones and it would be good for businesses to tailor their social media strategy towards this huge number of potential customers.
“Facebook, twitter, Instagram and WhatsApp are very potent tools businesses can use to interact with and engage the customers. It also makes business sense to keep existing customers because it is estimated that they spend three times as much as new customers.
These social media platforms can be used to; Communicate with customers ;Introduce New Products; Monitor performances; Predict customer behavior and Direct selling or ordering products.
“I doubt if there is any courier or logistics business in Nigeria today that does not automate its processes, use social media handles to interact with customers, have a website or offer tracking of shipments or their fleet. If there are, they are simply not competing. They are waiting to die.
“In the second instance, Adjacent Possibilities, are those companies that have been able to leverage on existing platforms to move into new areas of business. This is how GIG Logistics evolved.
“Just like GIG Logistics, technology can be used to harness this enormous asset to increase profitability and break into new areas of business. In just a little over five years, number of transactions per month in GIG Logistics has increased from an average of 4,000 to over 70,000 transactions per month. Technology has helped to synchronize the two businesses and also enables full visibility across all service centers
“In the third category, Transformational Possibilities, are those businesses that would succeed and be able to compete in the next century. Those businesses that can use breakthrough technology to take the logistics business to the next level. Using drones to beat traffic and deliver to challenging terrains, driverless vehicles to enhance efficiency in logistics are examples.
“It is doubtful though whether drones can be widely deployed extensively in Nigeria because of the issue of trust except in few instances where delivery is controlled. In the developed world, shipments can be delivered at the doorstep when the receiver is not at home. This may not be possible for now thereby limiting its use. Autonomous vehicles would also not be able to navigate well on the roads that are bad.
“GIGL has effectively used the first and second possibilities to leverage technology to succeed in a volatile and disjointed environment for increased shareholder value and customer satisfaction”, the COO said.
Celebrities, guests and business moguls at the event applauded the app launch, stressing how it will add value to the business community, especially as commerce without adequate logistics system is difficult these days.