Moving beyond warehousing. Along with warehousing services (picking up, packing and labeling), contract logistics suppliers have extended their traditional core into extra value-added services, such as postponed manufacturing (light assembly, kitting, manufacturing and quality control systems), and even payment and customer management.
Contract logistics remains a local and fragmented business. Top suppliers lead the market at a national or regional level, but not globally.
Cost position is triggering market competition. Despite the development of value-added services, the contract logistics market offers suppliers few opportunities to differentiate themselves.
Customers often view contract logistics as a commodity, with a provider’s cost position serving as the main purchasing criteria.
This viewpoint has encouraged Enron East Africa Limited to develop cost-effective solutions, such as shared warehousing. We also replicate winning formulas that make the most of a solid infrastructure, which may include warehouse configuration, IT systems and skilled workforce teams.