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| Kabiru Shagaya in the midst of his staff Credit: Company's Web Presence |
Several reports and views of experts have indicated that Nigerian
Logistics Industry is one of the thriving industries in Africa. In 2018, a
report reveals that the industry worth N250 billion. Despite various challenges
facing the players, it has appeared that innovative solutions and services
being churned out every day and growing interest in logistics services would
continue to spur the growth of the industry.
Looking at the Global Logistics
Performance Index, being released by the World Bank every two years, it is obvious
that Nigeria is lagging behind in the Global Logistics Market. Analysis shows
that the country only better off in 2014 within the six indicators being used
by the world financial institution to measure the effectiveness of the logistics
industry to support economic growth. From customs indicator to timeliness indicator,
Nigeria has a lot to do before sustainable value could be created and captured
by the players.
Exhibit 1: Nigeria’s
Position in Select Global Logistics Performance Indicators
Source: Global Logistics
Performance Index, 2010-2018; Infoprations Analysis, 2019
Between 2010 and 2018, businesses and individuals have had significant interest
in the industry. Our analysis suggests that people and businesses have sought
knowledge about the solutions being offered by the players in the industry with
the specific interest in companies providing logistics services using road transport.
Exhibit 2: Mean Score of
Public Interest in Logistics
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Source: Google Trends,
2019; Infoprations Analysis, 2019
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How Zippy is Adding
Value?
In spite of the numerous challenges in the industry, one can be rich
when the problems being faced by businesses are solved using sustainable innovative approaches and
solutions. We borrow this position from Kabiru Shagaya, the Chief Executive
Officer of Zippy Logistics. Kabir’s
business mantra is simple: “You are only as rich as whose problems you are
solving.”
The company was established in 2013, a year after the Global Logistics
Performance Index notes the poor performance of the industry. Within the short
period of its emergence, the company achieved a total number of 28,000
fulfilled deliveries and shipped about 4,510,328.88 in tonnage in 2018, the
year the country was ranked 105 across all the indicators, with its dedicated
team of account and warehouse managers.
Information has it that Kabir had worked in management consulting, oil
and gas, real estate, and environmental management. “Apart from providing
logistics and haulage services, Kabir is also a logistics consultant, drawing
from his years of experience in the industry, working with various clients.”
These and other strategic moves in the last few years by the company
have been found by our analyst as factors influencing sustainable value
delivery [see Exhibit 3]. We discovered that Zippy is adding value to
the operations and performance of small, medium and large-scale businesses in
the north, southern and western regions.
Exhibit 3: Zippy Value Delivery Chain
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Source:
Zippy, 2019; Infoprations Analysis, 2019
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The company is combining shipment from multiple vendors into single
trucks, which move to multiple retail outlets weekly. There is an on-demand
dispatch and delivery service. With this, Zippy is helping businesses to ensure
quick delivery of orders according to the specified condition. Zippy is
providing an integrated supply chain solution for clients with the intention of
making deliveries to foreign countries and nationwide distribution. Zippy is
offering advisory services through Zipp Advisory using value co-creation and
sharing strategies.
The company recently adopted CartonCloud,
a software for ordering and scheduling deliveries. With the adoption, employees
have become hyper-efficient, while transparency and accountability have been institutionalised.
These have led to being described as a
company with a blend of professionalism, competence and expertise.
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