Kenya prides herself as the regional hub for East Africa and the entrance to the Great Lakes Region. In addition, the port of Mombasa is strategically positioned to facilitate the movement of goods in and out of the region.
According to global property consultancy Knight Frank, the cost of transport takes up 50-75% of the retail price of goods(compared to 6% in the US).
Therefore, logistics firms need to leverage technology and innovation to ensure reliability, increased productivity in the supply chain, and minimizing costs and errors.
Furthermore, Kenya’s growing internet penetrations and technology adoption have seen the growth of e-commerce platforms and digital market places. This has created the need for logistics services to improve the online shopping experience.
Lori Systems offers a logistics marketplace incorporating freight service, logistics, railroad, and transportation that connects cargo owners to transport.
Lori launched in Kenya in 2016. It aims to leverage technology in reducing inefficiencies in the logistics chain by providing real-time tracking and optimization. The firm has operations in Kenya, Uganda, Rwanda, South Sudan, works in Tanzania, Ethiopia. It recently ventured into Nigeria
Potential logistics customers include government institutions, humanitarian organisations, corporates, manufacturers, and individual consumers.
Lori sees the gap in reducing the time it takes to acquire a lorry. With its systems, the customer just goes online, chooses the best lorry for their cargo, and is able to compare between routes thus reducing costs
Furthermore, the development of internal dry ports and special economic zones will boost Lori’s business. This is because they provide loading zones and warehousing facilities.
Lori has enabled transporters to optimize truck and asset utilization. This is through proactive data capture systems that optimize loading and offloading activities. Moreover, transporters enjoy access to capital in the form of fuel financing and insurance thus ensuring minimal delays on the road.
On top of that, tech tools such as proprietary systems and software automate and accurate invoicing relieve the administrative burden.
Mobile technology has spurred the growth Lori e-logistics business creating reliability and credibility. For instance, the tracking of cargo throughout the journey using data from mobile devices, tracking devices allows Lori to keep in touch with drivers and achieve better operational outcomes for customers.