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What it takes to run a logistics business

By Vivianne Wandera | Nov 3rd 2021 | 4 min read
By Vivianne Wandera | November 3rd 2021

Global business logistics import export concept [Courtesy]

Transport and logistics is an essential part of all human operations as the need to move not only goods but agricultural products and raw materials has grown over the years.

During the pandemic, logistics and warehousing businesses have emerged as some of most instrumental players.

This is as businesses move online and need the transport and logistical support to take goods to their customers.

Local transport and logistics company TAG limited CEO Boniface Angego talks about his journey and the A to Z of running a logistics company and why he is looking to expand into other countries within the region.

Briefly describe your firm, its scope of operation and the core business

We are a multi-faceted company based in Nairobi and offer transportation and logistics across the country and East Africa especially in Uganda and Rwanda.

Explain the A to Z of running a logistics company

Transportation and logistics is not an easy arena since it entails a lot of hard work, planning and a dedicated team to execute a good job.

It also requires sacrifice especially when moving across the border cause of bad roads, breakdowns and even sometime security issues.

Industrial assets across Africa are giving high returns becoming a source of attraction for most investors. Are you looking to scale up your operations?

I am looking to scale my operations around other countries, especially starting with Uganda because of its proximity, less fuel charges and their prowess when it comes to agricultural produce.

Tanzania is also a market we hope to explore based on my good networks there. 

Logistics and warehousing firms have emerged as some of the biggest “winners” during the pandemic as businesses move online. What has the pandemic been like for your firm?

TAG limited CEO Boniface Angego [File]

The pandemic has been a game-changer for us especially being forced to engage more with our clients online compared when we could maybe get clients from country bus, Easy Coach, and other set bus stations around Nairobi.

It also opened an avenue for more business because the restrictions on people’s movement increased the supply of goods within the country and across the East African region. However, it also increased our operation costs owing to the many permits and Covid-19 related tests that our drivers have to be subjected to.

Has the current global supply chain crisis impacted your business?

The current global supply chain has slowed down our operations especially to Uganda which is a landlocked country and sources their goods via the Mombasa Port.

There is also a global shortage of containers around the globe that has hindered people with goods from accessing an already ready market especially in Africa.

You are very young yet the CEO of a leading transport and logistics company. Why did you choose to venture into this line of work?

In regard to choosing to run a logistics and transport firm it’s the other way round. Logistics and transport chose me. My initial venture was fast-moving consumable goods before discovering this challenging yet fulfilling avenue of logistics and I have never looked back. The pandemic forced me to venture into this world of transport and logistics and it is the best decision I have ever made. 

What are some of the key wins for your firm over the years and some challenges too? 

Some of our key wins has been working with reputable firms like the Chandaria business empire, where Darshan Chandaria, a top executive, has always given us a push to achieve more and more and he gave us an opportunity to grow despite our logistics firm being young. 

How do you make your company more attractive to millennials who are accused of only looking for high flying white collar jobs?

How I make the company attractive is by hiring team players and people with passion for customer service.

Is the movement of information and money as critical in your supply chain as the movement of materials?

The movement of money is critical and vital to us being a Small and Medium Enterprise (SME). We try as much as possible to have very transparent relationships considering most of our trucks are co-owned with the bank thus loans have to be serviced on time.

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