Digitalization of Africa freight industry through Oneport 365
Digitalization of Africa's freight industry through Oneport 365
Trade has taken center stage at Africa. Thanks to the Continental Free Trade Area agreement – the world's largest – which has brought together 1.3 billion people in fifty-five (55) countries in a market valued at $3.4 trillion by the World Bank, bringing the continent's economy to the forefront of the global economy. Businesses will be able to expand their market penetration beyond their geographical boundaries as a result of the African Continental Free Trade Area (AfCFTA) agreement, which will allow them to fill market gaps across the continent.
In essence, a fast-moving consumer goods company with its headquarters in Ogun State, Nigeria, can sell its products in markets as far away as Nairobi, Kenya, in East Africa, according to the company's mission statement. In a similar vein, another company based in Rabat, Morocco, has the ability to source materials from anywhere in the Central African region. As a result of these dynamics, there is optimism that the AfCFTA will increase Africa's GDP by $450 billion by 2035.
However, one of the most critical success factors is frequently overlooked: freight management.
It is a broad term that refers to the activities that are performed to facilitate the movement of goods from one point in the supply chain to another point at the other end of the supply chain. With this process, the complex operations, including financial and administrative considerations, associated with transporting goods can be managed in such a way that costs and time are optimized, and inbound or outgoing goods reach their destination in the best physical condition possible. In 2021, Global Industry Analysts Inc. (GIA) predicts that this industry will be worth $2.1 trillion, and that it will be the lifeblood of international trade. In Africa, the services provided by freight companies stimulate economic activity and connect factories to the market, highlighting the critical role and importance of freight management to the continent's economic development.
The importance of freight services cannot be overstated; however, the traditional approach to trade support has proven ineffective in helping companies to capitalize on the opportunities presented by cross-continental trade. According to data from the United Nations Conference on Trade and Development (UNCTAD), Africa imports 85.8 percent of its total imports from the rest of the world, compared to 84.9 percent for Latin America and the Caribbean, 81.5 percent for North America, 38.5 percent for Asia, and 38.5 percent for Europe (33.9 percent ). Intra-regional exports, on the other hand, accounted for 15.5 percent of total export trade during the year, compared to intra-regional trade in North America, Asia, and Europe, which accounted for 30.1 percent, 59.6 percent, and 68.0 percent, respectively, of total export trade.
A slew of issues relating to tariffs and insufficient infrastructure are at the heart of Africa's high reliance on the rest of the world for trade. Traditional modes of freight handling can be prohibitively expensive for businesses due to a lack of critical road, rail, and port infrastructure. This is true in both monetary and non-monetary terms. It is inevitable that goods will not arrive at their intended destinations on time and within budget. This has a negative impact on the business environment and, when aggregated on a national or continental scale, results in a loss of Gross Domestic Product (GDP).
When it comes to freight management in Africa, OnePort 365 – a comprehensive freight forwarding platform designed specifically for Africa – streamlines trade by digitizing the entire inbound and outbound shipment process, thereby reducing costs and increasing efficiency. When used in conjunction with the OnePort 365 digital channel, seamless containerized freight management is made possible by automating previously complex and manual processes associated with coordinating the end-to-end movement of goods throughout the supply chain. Any company that has containerized cargo to send or receive – regardless of the distance between them – can use the platform to arrange for every step of the freight process, including inland haulage and ocean freight, warehousing and insurance, terminal handling, and customs brokerage services. A result of this integration, the OnePort 365 platform effectively integrates services from the point of origin to the point of load port, allowing businesses to operate more efficiently.
The digital platform provides users with immediate access to competitive rates and the ability to obtain comprehensive quotes. Businesses reap enormous benefits from the platform's cost-cutting capabilities, as it streamlines the process of booking shipments and eliminates the need to spend valuable time contacting vendors, saving them time and money. Besides that, it reduces the risks associated with insufficient information and the amount of paperwork required to book shipments.
Additionally, the OnePort 365 platform is accessible from any location in the world and provides the flexibility that businesses require in the twenty-first century, according to the company. It doesn't matter if the world is still reeling from the ongoing Coronavirus (COVID-19) pandemic, which brought the entire world to a halt for a brief period of time, digital platforms such as OnePort 365's mitigate the risk of business interruption caused by difficulties in collaboration and communication between parties involved in the freight management transaction.
The fact that users have complete visibility is perhaps the most important feature of the OnePort 365 platform. User's domestic and international shipments can be tracked through this platform. This lowers the likelihood that items will be misplaced while in transit, optimizes routes, and enables effective and data-driven freight planning.
Overall, the platform allows businesses to operate more efficiently by eliminating the need for manual processes and the costs that go along with them. Because users have complete control over the technology they use, there is a high degree of predictability surrounding business operations when it comes to technology deployment. Digital integrations, as opposed to complex traditional freight management, have proven to be the most effective means of ensuring that deliveries are made on time, at the best possible price, and in the best possible condition. In order to ensure that users' data and privacy are protected, the digital platform is supported by a world-class cybersecurity infrastructure that includes end-to-end data encryption and multi-factor authentication for access control, among other features.
Businesses that use digital freight management platforms can expand their operations, manage their cash flow, and operate more efficiently in their respective markets if they have this level of confidence. Consider the following scenario: A manufacturing company that uses inexpensive digital platforms to transport raw materials to its factories can sell finished goods at a lower price than a competitor who relies on inefficient and more expensive traditional freight forwarding services. As a result, the freight management service that a company chooses can have an impact on the company's market share or position within its industry. A significant barrier to trade is removed on a continental scale when the cost of freight forwarding is brought down significantly.
In a recent virtual media briefing, Hio Sola-Usidame, one of the co-founders of OnePort 365, explained how the company has been able to streamline the trade process for African cross-border commerce. "We are well aware of the difficulties associated with the import and export of goods from this part of the world," says the company.
After only eight (8) months of operation, over 13,000 tonnes of containerized cargo had been booked, and the adoption rate has continued to grow at an exponential rate, despite the fact that the freight management industry has traditionally been characterized by a traditional approach.
OnePort 365's vision for a digitized freight management system in Africa is based on the company's extensive and practical knowledge of the continent's geography and quirks, which it gained through years of experience. A recent shipment of exports worth more than $10 million demonstrates the firm's expertise in cross-continental and inter-continental trade, which the firm describes as "as plain as day." Also available are services such as ocean freight, inland haulage (trucking, barge and rail), as well as warehousing for both short and long periods of time. The company also provides value-added services such as marine insurance and customs brokerage. In addition to the comprehensive solutions available on the One-stop-shop platform, the digital platform provides instant access to the expertise of the OnePort 365 team of experts through a single digital platform.
As a member of the Sealink Consortium, which was established by the Export-Import Banks of Africa to streamline intra-African trade routes by bridging national and regional infrastructure gaps, OnePort 365 has a unique perspective on the industry. "Our goal is to bring about a sea change in Africa's participation in global trade by implementing a comprehensive systemic transformation," Sola-Usidame explained further.
