Distribution: Understanding Customer-Facing Logistics in Africa

Companies seeking to do business in Africa often focus more on challenges they need to address, rather than opportunities presented to them. The need to manage their investments across diverse countries, population profiles, infrastructure development levels, and local capabilities is viewed in terms of complexity. However, improved situational understanding will better inform investment decisions regarding product movements among points of origin, production, and consumption. Several aspects of logistics may be considered in this regard, but we focus on customer-facing logistics. We assume that few companies have the capability and resources to both produce and deliver products to end-buyers in a host country; meaning relationships must be established with third-party logistics (3PL) providers. What dimensions of logistics performance will enable 3PL providers in Africa to differentiate an incoming investor’s brand in a competitive market? We examine the interaction between horizontal collaboration and supply chain integration to conceptualize a model for customer-facing logistics in Africa.