Finding the Right Niche in the Logistics Industry in South Africa: What to Consider Before Taking Off?
Finding the right niche in the logistics industry can be a challenge for any novice player in South Africa. With a complex and dynamic market, it is important to understand the entire industry in order to capitalise on a specific niche. The right decision made on the outset of your new business will be the major determinant in the eventual success of your venture.
Logistics, or the management of goods in transit, is essential in the movement of goods and services both locally and overseas. It is a vital industry that helps keep the wheels of many South African businesses running smoothly. There are a few fundamental considerations when deciding on a niche in the market.
Understand Your Role in the Logistics Supply Chain
The first step is to understand what your specific role will be in the supply chain. It is possible for companies to occupy multiple positions, from just transporting the goods to storing them. In particular, it is important to note your skillset and the resources you can draw on, such as the number of vehicles you are able to deploy. In particular, the success of an e-commerce business revolved around the how quickly it can turn a product around to the consumer.
Furthermore, if you are looking to occupy a bigger market share as a transport provider, understanding the cost of fuel, tolls and government tariffs is key. At the end of the day, a transport provider must be able to make a profit by setting the right rates while providing a service the customer can be comfortable with.
Know Your Customers and Understand Their Needs
The second important consideration is focussing on the ideal customer base that has a specific need that requires a logistics solution. Understanding your potential customers and their expectations is key. There may be a potential market that may require smaller or bigger transports depending on the distances they will travel and the nature of the goods being transported. Identifying your target audience, their needs and how to meet them is a solid foundation for growth.
Familiarise Yourself with Industry Regulations and Practices
The next step is to ensure that you are well-acquainted on the legal and industry regulations as a transporter. Regulations on overloading, dangerous and environmentally sensitive goods, insurance and other important considerations are paramount. It is important to ensure that any workforce you deploy understands and complies with your responsibilities and the legal ramifications of non-compliance.
Investigate the Scope of Collaborative Partners
Developing relationships with collaborative partners can help your business grow, especially when looking to scale up operations. Investigate any potential partners that can help to mobilise larger shipments. Businesses such as QikTruck provide an on demand truck and driver hire service, for those that are looking for transport solutions specific to the South African market.
As a South African based business, convenience, cost and efficiency is of the utmost importance. Many global freight companies that offer to operate in South Africa are at a disadvantage due to the different legal and logistical consideration. This is especially relevant for those looking to move goods out of South Africa, and not just within South African borders.
Select the Right Vehicle for Your Offering
The right vehicles assistance with ensuring cost efficiency, maintenance and reliability. Selecting lighter and more fuel efficient vehicles will be key. Other considerations to bear in mind are the safety features and comfort, as drivers will be clocking a lot of road miles. When added to the cost of insurance and vehicle maintenance, the cost of transporting goods needs to be factored in.
Safety and Cost Effectiveness Should Be Top Priorities
In a business environment where speed directly affects customer satisfaction, cost and quality of service should always be top priorities when running a successful logistics business. Consideration should be given to investing in safety features and training, as well as engaging with bodies such as the United National Economic Commission for Europe and South American Convention on Road Transport.
Aside from safety, building a strong customer service offering is key. Delayed or late customers can be the death of most successful businesses. As a transport provider, finding ways to reduce the chances of late delivery by adapting quickly to changing customer demands will help to build successful customer relationships.
Utilise Technology to Increase Efficiency
Utilising the best in technology will also help to increase efficiency. From GPS tracking, vehicle maintenance to route planning. It will help to reduce the fatigue of drivers on the road by providing shorter routes, as well as help with fuel economy. Investing in the right technology will also help to increase safety precautions, improve customer service, reduce costs and make routing decisions.
QikTruck: An On-Demand Service For Logistics Needs in South Africa
QikTruck is the ideal partner for businesses looking for transport solutions in South Africa. With the ability to provide the convenience of logistics freight delivery on-demand, the on-demand service eliminates need for transport reliance for businesses. Allowing for optimisation of the carriers’ resources, with industry best practices adhered to, the service is dependable and cost-effective.
QikTruck can help to simplify the complexity, time and cost associated with procurement and delivery of services, allowing businesses to focus on what they do best. The end-to-end transportation assistance, as well as optimising pricing, vehicle select, team matches and technology add-on’s, create a winning solution for your logistics