BUSINESS

TOP CHALLENGES LOGISTICS COMPANIES FACE IN NIGERIA AND HOW TO NAVIGATE THEM

Published

1 year ago

TOP CHALLENGES LOGISTICS COMPANIES FACE IN NIGERIA AND HOW TO NAVIGATE THEM

Introduction

Tim has always been one to think of solutions to problems, and his friends best describe him as a proactive individual. So, it was not surprising when he decided to start his logistics company.

Looking around him, Tim realized that most of his friends owned businesses. However, they could not make deliveries. He often gets complaints from them about how they were disappointed by a logistics company or had difficulty getting people to deliver their products to their consumers.

All these were motivating factors for Tim to start his logistics company, and he was hopeful that things would go smoothly. However, that was only wishful thinking. Typically, it is common knowledge that things do not usually go as planned.

TOP CHALLENGES LOGISTICS COMPANIES FACE IN NIGERIA AND HOW TO NAVIGATE THEM

Unfortunately, Tim encountered some hitches, especially as he ran his company in Nigeria. Thankfully, he is not one to give up easily. Therefore, he managed these situations with suitable solutions that ensured that he didn’t shut down his company.

As you read further, you will learn some of the challenges that Tim faced and how he was able to overcome them. Tim feels that many people often underestimate the stress of running a logistics company. Thus, making them start the business and close up along the way.

But Tim believes that business will run smoother for people when they have adequate information.

Challenges and Solutions

Some of the challenges faced by anyone running a logistics company in Nigeria include:

Lack of trustworthy drivers

Unfortunately, we see that many humans badly behave. Therefore, there are many untrustworthy drivers, making it hard to operate a logistics company.

Of course, no man is an island, and you do not expect to run your logistics company alone. A team of drivers would help ensure that the deliveries are possible. But what happens when these drivers become dubious? We sometimes see that these drivers even make away with bikes and vehicles of the company.

The increasing rate of such atrocities has become alarming, and it has led to the shutting down of many logistic companies. In addition, it discourages the owners of these companies as they believe that such an accident would only keep repeating itself and there is no need of continuing running the company.

Tim also had his fair encounter with some untrustworthy drivers, but he had to be proactive and implement some measures.

Solution: When Tim noted a high rate of untrustworthy drivers, he ensured to put checks like getting their credentials and personal information. Of course, some people may want to forge these documents. However, he ensured to cross-check them before employing anyone. He also ensured that they provided guarantors who would be held responsible if anything happened, and he physically went to confirm these guarantors before choosing any applicant.

Insecurity

Anyone staying in Nigeria would agree that there is a high insecurity rate, and it also affects logistics companies. People have to be careful about where they make deliveries as you cannot be sure of certain areas.

As a business owner, you are responsible for ensuring that your employees are always safe. Therefore, it would be wrong to endanger your drivers or any other employee because you want to make money.

Unsurprisingly, some logistic companies report strange deaths of their employees and drivers during deliveries, and it has become a cause of concern. It may even lead to the closure of such a company as no one wants to be blamed for the death of anyone.

But you can put some strategies in place to ensure that these employees and drivers are safe to a large extent.

Solution: Tim was always big about safety and ensured that there was strict timing on the operating hours of his drivers. He put rules in place to ensure that they do not work at night or they will face dire consequences. In addition, Tim also advocated and advised them never to go into the compounds or houses of anyone for deliveries. He always told them to make deliveries in open areas for their safety.

Fuel scarcity

Fuel scarcity is another challenge that many logistics companies face, and it has also become a cause for concern. After all, if there is no fuel, these logistics companies cannot operate as all bikes and cars need fuel to operate.

When there is fuel scarcity, you would see that the logistics company begins to delay the delivery of goods to customers, and it becomes an issue. Humans are typically impatient, and they will not want to hear any excuses on why their delivery was delayed.

When there is a delay in delivery, these customers take it that the logistics company is not trustworthy, and they begin to leave negative reviews. This issue has given many logistic company owners sleepless nights as they ponder what would be the solution.

Solution: Such a case is always dicey as there is no specific solution for nationwide fuel scarcity. However, we would advise that you act like Tim and be friendly with petrol stations. Good relations with many petrol stations will ensure that they alert you once they have fuel and will always make you one of their top priorities. We can assure you that such a partnership will be mutually beneficial as the petrol station gets your money, and you will get fuel in return.

Economic crisis

Everyone would agree that it becomes hard to survive life when there is a decline in the country’s economic situation. But, of course, such a decline would affect everyone, and logistics company owners are no exception.

Typically, one would always need to maintain their bikes and cars to ensure that they operate smoothly. But once there is an economic crisis, it won’t be easy to continue such maintenance procedures. Moreover, once the prices of things go higher, people begin to seek cheaper alternatives, and it may adversely affect the vehicles.

At this point, these owners begin to think of selling their vehicles to get a small profit, ensuring that they do not run at a complete loss. But is that a feasible solution? First, no company will be left when you sell off everything, and you won’t have any business.

Solution: It would be best to have good relations with suppliers, ensuring that they continue to give you the best products. In addition, it would be best to stick to some of these vehicles and stop using others until the economy bounces back. For example, if you have 4 bikes and 2 cars. You can stick to using 2 bikes and 1 car to maximize usage and get the best materials for them fully.

Risk management

Every business comes with various risks, and it becomes a challenge when there are no efficient hands to identify these risks. Typically, every business is supposed to have a risk manager. This risk manager identifies potential risks to the business and brings up solutions on how to curb such risks on time to ensure that it doesn’t interfere with the running of the business.

But when there is no risk manager in a logistic company, you know these risks would not be identified early. Therefore, exposing the business to threats that may lead to the shutting down of the business.

Some people may say it isn’t easy for every logistics company to get a risk manager due to the financial implication. Yes, we agree with such a claim. However, we also advocate that every business owner should have risk management risk.

Solution: When Tim noticed that he could not afford the services of a risk manager, he decided to take online courses to equip himself with the needed skills. He no longer needs a risk manager as he doubles in that position and his business is well-protected. One can take risk management courses on various online learning platforms.

Competitive market space

One thing about most humans is that they are attracted to success. Therefore, once people see and notice that a particular business line is booming, they would also want to venture into that business. So, we can say that the logistics market space s heavily saturated as many people are now into the business.

And, everyone would agree that it becomes a jungle to survive in such a market space. Every business owner in this space is looking for the best strategies as they need to outdo their competitors. After all, if you do not act fast and right, your competitors would take all your customers, and you would have no one patronizing you, which would have you out of business in no time.

It is always best to keep in mind that it is a game of survival of the fittest to survive in the logistic business market space, and you must be proactive if you want to excel.

Solution: The best way to succeed above your competitors is to keep in mind that the world is a continuous learning space. Therefore, you need to be on the lookout for new strategies and you have an open mindset. The knowledge you gain daily is what you will use to surpass your competitors.

Unclear laws

The laws of the land and region are also restrictive when it comes to running a logistics company. We often see that most business owners in this industry do not understand the region’s laws concerning running a logistics business, which gets them into trouble with the authorities.

It could be that there are certain levies to pay before getting certification, or there is a test to undergo. If the business owner is not aware of all of this, you are sure that they will default, and it will put them on the wrong side of the authorities.

We have seen cases where business owners of logistics companies are charged, and they have to pay huge fines because they were unclear and unsure about certain laws.

Solution: Tim believes in human resources and understands that everyone has various strengths and weaknesses. Of course, the law was not his stronghold. So, he sought the help of his lawyer friends. He ensured that they interpreted everything to him in the simplest form to ensure that he understood and abided by these laws. Once he understood everything, he never got into trouble with the authorities, and his business ran smoothly.

Frequently Asked Questions

Below are some of the frequently asked questions about running a logistics business in Nigeria:

How can I start a logistics business in Nigeria?

You can start a logistics business in Nigeria once you have a clear aim, goal and focus on what you want to achieve. Therefore, the reason why you are starting this company shouldn’t be because others are doing it. Rather, it should be that you want to solve a need and have a clear plan to achieve your goal.

What are the solutions to the challenges facing logistics companies?

The solutions to the challenges facing logistics companies come in many ways. We have talked about some of them above, and we advise that you incorporate them when running a logistics business. It helps ensure that you do not run at a loss.

Conclusion

As people who are passionate about business owners and their businesses, we always want to bring solutions to challenges that business owners face.

The idea is to ensure that business owners experience ease in their various transactions.

If you own a logistics company, ensure that you follow our highlighted solutions to minimize the losses your company will incur.

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BUSINESS

Enlumi launches Next-Gen business management platform – Lumi Business to help businesses streamline key operations

Published

6 months ago

Christopher

Enlumi launches Next-Gen business management platform – Lumi Business to help businesses streamline key operations

Enlumi, headquartered in Lagos has announced the launch of its B2B product—Lumi Business. The platform offers a comprehensive array of solutions, including but not limited to Point of Sale, Inventory Management, Accounting, Expense Management, Loyalty Management and analytics.

As a retail business in Nigeria it’s long been believed that having a modern payment collection device is enough to run the business and the rest is left to chance, instinct, or clunky, outdated softwares and tools. However, to thrive in the market, businesses need much more. Business owners frequently struggle with inventory-related challenges such as surplus, slow-moving stock, expired items, stockouts of high-demand products, and employee theft, all of which can result in revenue loss or tied-up business capital.

Lumi Business is tailored to tackle the inventory requirements of businesses, irrespective of their size, stock quantity, or staff strength. It efficiently simplifies sales tracking, expenses, and facilitates the management of customers, products, services, raw materials, ingredients, and recipes. By leveraging the Lumi Business platform, business owners gain access to data-driven insights that inform decision-making, thereby enhancing sales and maximizing overall business profitability.

Wait there’s more! Lumi Business has a cloud-based multi-store management system, which enables business owners to exert full control over their operations from any location worldwide, using any device. Its storefront feature allows business owners to start up virtual stores and sell online. This capability allows them to monitor stock movements effectively and mitigate issues such as employee theft, lost products, and wastage.

Over 300 SMEs in Nigeria trust Lumi Business to manage their day to day operations, particularly due to its robust features and user-friendly interface. The company looks forward to growing its reach and capabilities as it actively pursues partnerships with other platforms serving SMEs.

Speaking on the launch, Wale Adeniji, Enlumi Data’s CEO said “We firmly disagree with the notion that Nigerian business owners aren’t ready for more than basic payment collection tools.

We’ve seen that businesses in Nigeria are ready for more advanced solutions, they just need to be delivered the right way. We’re focused on building a business management solution that Nigerian businesses are crying out for, addressing a myriad of pain points all at once”. Click here to learn more about Lumi Business or visit www.lumibusiness.io

BUSINESS

Rhebuch: Best Place To Buy Quality And Affordable Security Surveillance Cameras In Nigeria

Published

8 months ago

Christopher

Rhebuch: Best Place To Buy Quality And Affordable Security Surveillance Cameras In Nigeria

The world is already going digital with the spate of innovations that are constantly released to drive convenience and comfort. It often comes with the sense that technology is the present scope shaping the future. There are many tech products in homes, offices, and other places today, with respective designs to serve relative purposes for human causes. This is because of how effective and efficient they are in making life easy for us as a people.

Best Place To Buy Quality And Affordable Security Surveillance Cameras In Nigeria

Meanwhile, it is common knowledge that security is a serious business – concerning the safety of lives and property. As such, adopting technology takes cognizance of this through developing tools or gadgets capable of improving security across space and time. One such piece of equipment is the security surveillance cameras- designed to give real-time information about happenings around the vicinity of the installation. Although these have been around for quite some time, their relevance to enhancing security and safety has not waned, especially as they continue to improve.

Nigerians are not new to using security surveillance cameras, as you can find them at homes, offices, shopping centers, religious centers, banks, estates, streets, etc. But while some people believe the cost of acquiring these gadgets is expensive, others are skeptical of their effectiveness – both untrue. Rhebuch is changing this age-long narrative by providing quality and affordable security surveillance cameras to Nigerians.

What Is Rhebuch?

Rhebuch is a technological company that is a multi-brand distributor of smart homes, video surveillance, fire alarms, access control, smart lighting systems, and many more. Therefore, it is your one-stop shop to buy all automation systems for your home or office. This company is reputed for providing the latest global standard equipment to foster the safety and security of lives and property in Nigeria.

There are CCTV cameras of different brands on Rhebuch – some of which include DAHUA 4HDD EPoE, DAHUA 24-port Unmanaged PoE switch, DAHUA 8MP IR fixed-focal dome network camera, Hikvision fixed dome network camera, DAHUA unmanaged desktop switch, etc.

Therefore, Rhebuch is the leading place to buy your security surveillance cameras, as there are many benefits from shopping on this platform.

Benefits Of Shopping For Security Surveillance Cameras On Rhebuch

1. Affordable And Quality Cameras

Rhebuch operates in sync with its mission of providing its customers with the best and latest gadgets in the marketplace – which it still upholds. As such, this platform is where affordability and quality melt, such that you purchase original security surveillance cameras at the best prices that are relatively lower than its competitors.

For instance, you can buy a DAHUA fixed focal dome network camera for as low as N75,000, cheaper than other marketplaces selling the camera. Therefore, you are saving more when you buy on Rhebuch.

2. Multiple Camera Options

Rhebuch provides a wide range of options when buying your security surveillance cameras. This is because they vary in type, purpose, and price, making the platform a store for every budget. This aims to change the misconception that these cameras are expensive or ineffective. You can find your preferred security camera with a particular focal dimension and coverage on Rhebuch without buying whatever is available.

3. Fast And Free Delivery

You are eligible for fast and free delivery when you purchase security surveillance cameras and other systems on Rhebuch. This is to make the logistics of your purchased products seamless through its unique way of proving that the company is highly customer-centric. Therefore, your cameras will be delivered to the platform within 24 hours of purchase.

4. Fast Returns

Rhebuch allows its customers to return their purchased products if they are no longer interested or unsatisfied. Irrespective of the reason, if it is valid, there is a window for you to return your camera for another. You can complete the return process on the platform within 24 hours.

5. Discount Offers

You can get the best deals for purchasing security surveillance cameras on Rhebuch. This is always available during special sales seasons, where you will have price slashes for your sales. It can go as high as a 30% discount on the platform. That is why it is important to always keep up with the sales and deals on the platform so as not to miss out.

Conclusion

You can get quality security cameras in your home or office at the best prices on Rhebuch, as it boasts a large customer base that trusts the platform for security and safety automation needs. So you can buy all your security gadgets on Rhebuch to give you the sense of safety you desire.

BANKING

Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Published

11 months ago

softchris4ol

Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Understanding the financial stability of a country requires a thorough understanding of financial analysis. In order to offer insights into the overall financial stability and overall wellness of the country, it entails evaluating a range of economic indicators, financial performance, and market movements.

In this article, we will delve into the fundamentals and importance of financial analysis in evaluating a country’s economic situation.

Financial Analysis: A Comprehensive Study of The Well-Being of A Country

THE HISTORY ABOUT FINANCIAL ANALYSIS

Ancient Beginnings:

The roots of financial analysis can be traced back thousands of years. The ancient Mesopotamians, Egyptians, and Greeks were among the pioneers of documenting financial transactions, creating basic records of assets and liabilities. These early attempts laid the groundwork for the concept of financial analysis through the study of financial statements and ledgers.

Medieval Europe:

During the Middle Ages, Europe witnessed the rise of merchant guilds and the emergence of double-entry bookkeeping. Italian mathematician and Franciscan friar, Luca Pacioli, is often credited with formalizing double-entry bookkeeping, publishing his seminal work “Summa de arithmetica, geometria, proportioni et proportionalita” in 1494. The concept of balancing debits and credits within financial records formed the basis for modern financial analysis techniques.

Industrial Revolution:

The Industrial Revolution in the 18th and 19th centuries revolutionized business and the need for financial analysis grew rapidly. As companies expanded and diversified, investors began demanding more comprehensive financial reports to assess the potential risks and returns of their investments. The birth of limited liability companies further accelerated the need for financial analysis, as shareholders sought transparency in the performance of their investments.

Modern Era:

The 20th century witnessed significant advancements in financial analysis techniques. The advent of electronic computing in the mid-1900s enabled the processing and analysis of vast amounts of financial data, leading to the development of sophisticated financial models and ratios.

The Great Depression of the 1930s laid the groundwork for modern financial analysis as regulators sought effective ways to prevent future economic crises. The establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 brought about standardized reporting requirements, including the filing of audited financial statements. This increased transparency and standardized financial reporting provided analysts with a more accurate and consistent basis for their analysis.

The Rise of Quantitative Analysis:

In the latter half of the 20th century, the growth of computing power and the availability of large data sets propelled financial analysis into new territory. Quantitative analysis, utilizing statistical models and mathematical algorithms, started gaining prominence. Financial analysts began incorporating complex mathematical methods to assess investment opportunities, risk management, and portfolio optimization.

Modern Financial Tools:

With the advent of the internet and the digital age, financial analysis has become even more accessible and data-driven. Sophisticated software programs, data analytics tools, and artificial intelligence have revolutionized the way financial data is analyzed and interpreted. In recent years, technologies like machine learning have been leveraged to develop predictive models that can assess future trends and make accurate financial forecasts.

MEANING

Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

Financial analysis is a fundamental tool that allows organizations and individuals to assess the past, present, and future financial health of a business or investment. Through a systematic examination and interpretation of financial statements, ratios, and other key indicators, financial analysis helps in making informed decisions, optimizing resources, and improving overall financial performance. In this article, we will delve into the meaning of financial analysis, its prominent components, and its significance across various sectors.

Financial analysis involves scrutinizing financial data to evaluate the performance and profitability of an entity. It assists in quantifying the effectiveness of financial decisions, identifying trends, predicting future outcomes, and benchmarking against industry standards. By analyzing financial statements, investors, analysts, and other stakeholders gain valuable insights into the financial position, liquidity, solvency, and operational efficiency of an organization.

FUNDAMENTALS OF FINANCIAL ANALYSIS IN A COUNTRY

Gross Domestic Product (GDP): GDP is a primary indicator used to gauge the economic performance of a nation. Financial analysts analyze GDP growth rates and its components, such as consumer spending, government expenditure, investments, and net exports. This analysis helps in determining the overall strength of the economy and identifying areas of potential growth.
Trade and Balance of Payments: Trade analysis focuses on a country’s imports, exports, and balance of payments. Evaluating trade patterns helps identify sectors driving the country’s economic growth, trade imbalances, and potential risks to the economy from external factors such as changes in global demand or disruptions in supply chains.
Inflation and Interest Rates: Analyzing inflation rates and interest rates provides insights into the stability of a country’s economy. High inflation erodes purchasing power, while high-interest rates can impact borrowing costs, affect consumer spending, and investment behavior. Financial analysts assess the impact of inflation and interest rates on an economy’s overall competitiveness and economic growth potential.
Government Debt and Fiscal Policy: Analyzing a country’s government debt levels and fiscal policy is crucial in understanding its financial sustainability. A high level of government debt may lead to increased borrowing costs, reduced investor confidence, and potential risks to economic stability. Evaluating fiscal policies helps determine whether a country is managing its finances effectively and implementing sustainable economic growth strategies.
Stock Market Performance: The stock market reflects investor sentiment and provides valuable insights into a country’s economic outlook. Analysts evaluate key stock market indices, such as the country’s primary exchange, sector-specific indices, and market capitalization trends. Monitoring stock market performance allows for an understanding of investor confidence, economic growth expectations, and potential risks to the financial system.
Banking Sector and Financial Institutions: A robust banking sector is essential for economic stability. Financial analysts assess the health of the banking system by evaluating indicators such as non-performing loans, capital adequacy ratios, and the overall stability and soundness of financial institutions. Understanding the well-being of financial institutions helps gauge the potential risks to the overall economy, including credit availability, liquidity, and financial contagion.
Regulatory Environment and Governance: The regulatory environment and governance play a critical role in attracting investment and fostering economic growth. Financial analysts assess the effectiveness of regulatory frameworks, transparency in financial transactions, and the overall credibility and efficiency of institutions responsible for enforcing regulations. Evaluating the regulatory environment aids in understanding potential risks and opportunities for sustainable economic development.

SIGNIFICANCE OF FINANCIAL ANALYSIS IN A COUNTRY

Financial analysis plays a vital role across various sectors, serving the following purposes:

Evaluating Financial Performance: By conducting a comprehensive financial analysis, companies can assess their performance, profitability, and financial stability. This, in turn, helps in identifying areas for improvement, developing strategic plans, and making sound financial decisions.
Assessing Investment Viability: Investors rely on financial analysis to evaluate the profitability and risks associated with potential investments. Through detailed scrutiny of financial data, investors can determine the financial health and growth prospects of a company, aiding in making informed investment decisions.
Facilitating Lending Decisions: Financial institutions utilize financial analysis to assess the creditworthiness of loan applicants. By analyzing financial statements, evaluating ratios, and assessing the risk profile, lenders can ascertain the borrower’s ability to repay loans and make sound lending decisions.
Supporting Strategic Decision-Making: Financial analysis aids in strategic decision-making, such as expansion, diversification, or mergers and acquisitions. Understanding a company’s financial position and performance provides a foundation for evaluating the feasibility and potential outcomes of such decisions.

CONCLUSION

Conducting a comprehensive financial analysis provides valuable insights into the economic landscape of a country. By evaluating indicators such as GDP, trade patterns, inflation rates, government debt, stock market performance, banking sector health, and regulatory environment, financial analysts can gauge the overall financial health, identify potential risks, and recommend strategies for sustainable economic growth. Accurate and timely financial analysis acts as a compass, guiding policymakers, investors, and businesses to make informed decisions and contribute to the overall prosperity of the nation.