Opportunities in Agric Sector: Logistics Management
By definition, logistics management is a supply chain management component that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination. Logistics management helps companies reduce expenses, reduce wastage and enhance customer service. The logistics management process begins with raw material accumulation to the final stage of delivering goods to the destination. By adhering to customer needs and industry standards, logistics management facilitates process strategy, planning and implementation.
As observed in the Nigerian market, there is a huge gap in the logistics system of marketing agricultural products across the country. Logistics management has not been effectively managed in Nigeria and in many cases, it has led to post production loss, price volatility and product scarcity. In some cases, it has been a source of discouragement to the Agric-sector players as the transport system is not reliable with high difficulty faced by farmers to move their farm produce from one location to another.
Let us take example of tomato produce in Nigeria. the rate of tomato perishing is fifty percent and this is highly responsible for the volatility in price as very high percent of tomato produce perishes in the peak harvest period and we still do not have an effective storage system.
This provides opportunities to investors who can provide an efficient and effective flow of produce from sources of production to the point of need. More focus is needed in urban centers. There is a great need for provision of an effective storage facility, which will be aimed at reducing wastage. Examples include providing cold room storage facilities and efficient cargo services.