Page 16 - LUA May - June 2023 for Magzter
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SPOTLIGHT




         funded: Kenya, Nigeria, Egypt, Morocco,
         Senegal, South Africa, and Ghana.
           “Africa’s innovative B2B commerce
         startups are differentiating themselves
         through localised payment and delivery
         solutions to their customers, which are
         not offered by global social platforms,” the
         report cites.
           Speaking about good practices in        The use of data
         sustainable logistics where technology    analytics and
         has played an important role, Benzitouni
         said, “One of the examples is the use of   machine learning
         real-time tracking and tracing systems,   can help logistics
         which allows logistics companies to       companies to
         monitor their supply chain in real-
         time and optimise routes to reduce        optimise their
         fuel consumption and emissions. This      operations and
         technology helps to promote efficient     reduce their
         transportation practices and reduce
         the environmental impact of logistics     environmental
         operations. Another example is the use    impact.
         of blockchain technology, which can help    ABDESSLAM BENZITOUNI
         to increase transparency and traceability              JUMIA GROUP
         in the supply chain. This technology can
         be used to track the movement of goods
         and ensure that they are transported in   deliveries, such as e-vans and e-bikes in   to return, thereby avoiding unnecessary
         a sustainable and ethical manner, with   Kenya, Ghana or Sénégal. Furthermore,   transportation of goods. This initiative
         minimal environmental impact. The use   we also use bicycles in some countries to   helped Jumia avoid shipping 16,800
         of data analytics and machine learning   make deliveries. This helps to reduce our   and 28,000 packages in 2020 and 2021,
         can help logistics companies to optimise   carbon footprint and promote sustainable   respectively, equivalent to 5.2 tonnes
         their operations and reduce their   transportation practices. In addition   and 6.6 tonnes of CO2e avoided.
         environmental impact. By analysing   to using electric vehicles, we started to   Furthermore, Jumia has reduced fuel
         data on transportation patterns, fuel   promote sustainable packaging practices   consumption per package shipped by 24%
         consumption, and other key metrics,   by reducing the amount of packaging   from 138ml in 2020 to 105ml in 2021,
         logistics companies can identify areas    materials we use. This helps to reduce   through sustainable fulfilment practices.
         for improvement and implement     waste while ensuring that our products   Jumia has also sold 8,472 refurbished
         sustainable practices that reduce their   are delivered safely and securely. To   phones in 2021 through its marketplace,
         carbon footprint and improve their   further reduce our carbon footprint, we   promoting responsible consumption and
         overall efficiency.”              have established a network of pickup   encouraging customers to select more
                                           stations across Africa, where customers   sustainable alternatives.
         SUSTAINABILITY- FUTURE            can collect their orders instead of   Giving the perspective of an exporter
         PROOFING THE VALUE CHAIN          having them delivered to their homes or   transporting highly perishable cargo
         Sustainability is important in logistics   offices. This helps to reduce the number   is Raphael Kiptis, Head of Finance at
         because it plays a critical role in   of individual deliveries, which in turn   Sian Roses in Kenya which is one of the
         reducing the environmental impact   reduces our transportation emissions and   leading producers of fresh cut flowers
         of transportation, which is a major   fuel consumption.”            that exports all their products to various
         contributor to greenhouse gas emissions.   Among some other initiatives taken   markets across Europe, Dubai, the UK,
         By adopting sustainable practices,   up by Jumia to promote sustainable   Australia, and Africa.
         logistics companies can reduce their   logistics practices in Africa, Benzitouni   With 2500 employees across four
         carbon footprint and improve operational   cites that in 2021, 21% of packages were   farms, the firm produces 120-130 million
         efficiency, which can ultimately result in   picked up by customers from Jumia's   stems a year in a highly competitive
         cost savings and increased profitability.  pickup locations, reducing the need for   market and is also the largest producer of
           Outlining how Jumia has implemented   individual deliveries and minimising   spray roses in the world.
         sustainability in their operations,   fuel consumption. Additionally, Jumia   Kiptis told the publication, “For us to
         Benzitouni shared, “One of the key   has implemented a programme to reduce   build sustainability, we need to reduce the
         initiatives we have implemented is the   reverse shipments by allowing qualifying   cost of production. Cost of power in Kenya
         use of electric vehicles for last-mile   customers to keep certain items they wish   is quite high, so last year we implemented

       14 LUA                                                                                    MAY - JUNE 2023
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