The new digital marketplace will bring modern logistics practices and seamless connectivity to stakeholders across all modes in the Ugandan logistics sector Kale Logistics Solutions (Kale), a trusted IT solutions provider for the global logistics industry, has partnered with Private Sector Foundation Uganda (PSFU) to offer a Logistics e-Marketplace to stakeholders across the entire multimodal logistics ecosystem in Uganda.
The e-Marketplace is an online portal for booking door-to-door cargo transportation services, offering competitive pricing and total transparency of the best shipment options across all modes of transport. The system matches companies looking to ship freight using one or more modes of transport with service providers of suitable capacity, digitising the entire shipment process, including rates, schedule, booking, contracting, delivery, invoice, and payment.
The platform connects supply chain stakeholders such as freight forwarders, Customs brokers, shipping lines, airlines, transporters, consignees, warehouse operators, rail operators and regulatory authorities, enabling them to adopt modern logistics practices that will allow better response to customer demand, increased efficiency and a more competitive industry landscape in Uganda.
“Trade in Uganda is concentrated in Western and Central Corridors with ports anchored in Kenya and Tanzania, respectively,” said Vineet Malhotra, Director of Kale Logistics Solutions. “The sector is fragmented and the cost of logistics high, hovering between 18 and 20 per cent of the sales cost. Therefore, there is a need to reduce the monopoly of the neighbouring regions and ensure equal opportunity for everyone in the logistics value chain.”
Kale’s solution will address the issue of higher logistics costs as well as other key pain points of the Ugandan logistics market, such as supply and demand, shipment visibility, and route and freight optimisation. More integrated transport services will help to optimise the use of the road, air, ocean, and rail movement modes and further help Uganda in achieving its potential to become a strategic logistics hub for the East African Community (EAC). Along with adequate transport infrastructure, the Logistics e-Marketplace will also enable access to ports in neighbouring countries, which is crucial for Uganda to expand and integrate markets, exploit economies of scale, and attract foreign investment.
“Lack of freight optimisations drives up logistics costs making Ugandan services uncompetitive, and uncertainties of logistics services leads to the increased carriage of stock. Kale is delighted to be able to facilitate with our flagship Logistics e-Marketplace to freight forwarders, Customs brokers, producers, manufacturers, shippers, consignees, transporters, and others who are part of PSFU,” said Malhotra. “With this, we are spearheading a digital revolution in Uganda and enabling them to stay competitive in an industry that is growing exponentially.”
Equipped with pre-defined controls, Kale’s one-of-a-kind solution will act as an enabler and controller of shipments and shipment-related information in a single window, enabling seamless connection with supply chain stakeholders both within the country and across the globe. The platform can connect with third-party systems, Cargo Community Systems and systems of the airport authority and terminal operators to provide status updates. Every user on the platform can also rate their service provider, so the next customer can consult previous reviews before making their selection.
“Identifying the right business opportunities, higher logistics costs, and delivery delays, as well as lack of visibility, are some of the key challenges that stakeholders in Uganda constantly face,” said Allan Ssenyondwa, Manager COVID-19 Economic Recovery and Resilience Response Programme, Private Sector Foundation Uganda (PSFU). He added; “In order to facilitate seamless trade opportunities, PSFU has collaborated with Kale, being a multi-modal service provider that has implemented first-of-its-kind solutions such as digital freight corridor, North America’s first Airport Cargo Community System and next-gen enterprise solutions. “
We are hopeful that this partnership will enable the logistics industry in Uganda to grow multi-fold.” In December 2021, Kale launched the provision of its CODEX e-delivery order service to the Thailand maritime industry in collaboration with TIFFA EDI, and now provides its suite of logistics IT solutions to 4,500 customers across 30 countries worldwide.