Redesigning Distribution Channels for Last-Mile Efficiency in Africa

By Ferdinand Ekechukwu

Africa stands at a pivotal juncture in supply chain and distribution management, influenced by its economic growth, infrastructure development, technological advancement, and investment opportunities. However, the continent’s unique challenges and opportunities necessitate innovative approaches to ensure last-mile efficiency. Nochi Onyemali, the Managing Partner and Chief Executive Officer at Fis Connext Global Services Ltd, Nigeria, offers profound insights into this critical issue.

Understanding Last-Mile Distribution Challenges

Last-mile distribution, the final leg of the delivery process, is often one of the most complex and costly segments of the supply chain. In Africa, this challenge is aggravated by infrastructural deficits, diverse geographical terrains, and socio-economic factors. Onyemali notes, “The last mile in Africa is not just about delivering goods but navigating through a myriad of challenges that are unique to the continent. From unpaved roads to remote villages, the obstacles are numerous and require tailored solutions.”

In addition, the rapid growth of e-commerce in Africa has intensified the demand for efficient last-mile delivery services. As more consumers turn to online shopping, logistics providers strive to adapt to fluctuating order volumes and customer expectations for speed and reliability. This shift necessitates innovative approaches, such as leveraging technology for route optimization and utilizing local delivery agents who understand the peculiarities of their communities, to enhance the overall efficiency of last-mile distribution in the region.

Innovative Solutions for Last-Mile Efficiency

To address these challenges, Onyemali suggests a composite approach, utilizing technology, local partnerships, and sustainable practices. “Technology is a game-changer in last-mile distribution. Mobile applications, GPS tracking, artificial intelligence, and data analytics have the capacity to significantly enhance route optimization and delivery accuracy,” he notes.

Onyemali points out the significance of artificial intelligence and data analytics in this context. “Data is an asset and should be utilized as such. The possibilities are endless, from predicting demand patterns to improving overall service quality; these technologies provide insights that traditional research tools do not provide.

Moreover, Onyemali advises local partnerships to strengthen last-mile distribution networks, stating that “collaborating with local businesses and community organizations can provide valuable insights into customer preferences and logistical challenges, for a more responsive and adaptable distribution system.”

He emphasized the importance of rethinking traditional delivery models. “The last mile is where the customer experience is made or broken,” he states. “To improve delivery efficiency, reliability, and cost-effectiveness are as crucial as speed. Another innovative solution gaining traction is the use of micro-fulfillment centers. These smaller, strategically located warehouses empower businesses to store products closer to urban centers, significantly reducing delivery times. Micro-fulfillment centers can drastically cut down on the distance that goods need to travel, which speeds up delivery and reduces operational costs.”

The concept of crowd-sourced delivery is emerging as a viable option for last-mile logistics. This model allows individuals or companies to act as delivery agents, utilizing their resources to deliver goods or provide services. “Crowd-sourced delivery can provide flexibility and scalability that traditional methods often lack. It’s a way to tap into the community and create a network of local deliverers who can respond quickly to demand.” Onyemali points out.

Onyemali is widely recognized for his expertise in leading teams and developing innovative solutions for some of the top telecommunications companies in Africa. As the Managing Partner and CEO of Fis Connext Global Services Ltd., he has successfully created a robust telecom distribution network that enhances the supply chain operations for leading telecommunication companies. Additionally, he has held key strategic positions, such as Regional Sales Manager for Dealer Sales at Etisalat Nigeria Ltd (now known as 9mobile Nigeria Ltd), where he implemented aggressive Route to Market strategies and campaigns that significantly boosted activation rates and airtime consumption among SMEs, affluent individuals, government entities, and private organizations.

Redesigning distribution channels for last-mile efficiency in Africa is a complex yet achievable goal. With thought leaders like Nochi Onyemali spearheading innovative solutions, the continent is poised to make significant strides in supply chain management. The journey to last-mile efficiency is challenging, but with resilience, innovation, and collaboration, these challenges provide opportunities for innovation and value creation. Africa has the potential to lead the way in redefining global distribution standards.