Logistics Software in Egypt: 5 Tips To Choose The Best One

With the Suez Canal, Egypt has the perfect position to tap the trade flowing through to cement its position as an important distribution and transshipment hub. With easier access to markets such as Europe, the Middle East, and Africa, the logistics market in Egypt is set to grow at a CAGR of 5% till 2027.

However, road logistics operations in Egypt are riddled with inefficiencies. A few integrated players, smaller fleets managed via traditional methods, and poor connectivity hurt the overall efficiency. This drives the need for smart and efficient logistics software in Egypt to provide integrated and seamless logistics in the region. 

The situation is fast improving with the Egypt Vision 2030 facilitating the rapid expansion of the road network. Another significant driver for improved logistics is the booming eCommerce trade, with revenues projected at  USD 8.97 billion by 2027. Further, regional challenges, international reach, and evolving customer demands can be effectively met with intelligent logistics software.

Here, we discuss the differences between traditional and modern logistics, major challenges, and the key features businesses should consider while investing in logistics software in Egypt.

What Is Logistics Management?

The set of processes that enable the efficient movement of raw materials, goods, and packages from the point of origin to their intended destination is referred to as logistics management. Logistics management is a diverse ecosystem with multiple processes, software, and stakeholders that ensure and facilitate the efficient movement of goods from one place to another.

Logistics management comprises crucial processes like order management, inventory control, warehouse management, transportation, and seamless deliveries.

Businesses using logistics management software in Egypt can accomplish all this, along with complete visibility over all processes and stakeholders. This allows logistics managers to manage operational risks, load fluctuations, and resource availability while offering a great customer experience.

Before exploring how to choose the best logistics software in Egypt, let’s have a quick look at traditional logistics management and how it stacks up vs. the modern iteration.

Traditional Vs. Modern Logistics Management

Logistics Management Challenges in Egypt

#1 – Lack Of Technology

Transporters in Egypt are generally local and regional operators without smart logistics software. This creates significant difficulties in coordinating with multiple 3PLs for delivery and operations. It creates a big challenge to acquire essential details like the exact location of drivers, vehicle condition, and automating order allocation.

Capturing transporter-wise, driver-wise, and vehicle-wise data on various parameters, like on-time deliveries, cost, and customer complaints, is also not feasible. This makes it impossible to make data-driven decisions to streamline operations, cut costs, and improve customer satisfaction levels.

#2 – Inability To Manage Omni-Channel Fulfillment

For logistics providers, eCommerce is an important industry. However, e-commerce order fulfillment in Egypt is riddled with strict customer expectations and tight SLAs. Dispatchers need robust order management for instant confirmation of orders and ETAs. Driver allocation for multiple orders must be done quickly based on driver suitability and cost, and routing decisions must be made for faster deliveries.

However, this is impossible except with intelligent logistics management software, which automates repetitive and time-consuming operations. Moreover, for a smoother omnichannel experience, the logistics system manages offline and online order fulfillment on a single screen, requiring minimum manual intervention.

#3 – Poor Customer Experience

The order fulfillment window is getting shorter daily. Customers expect same-day or next-day deliveries, and many customers are actually willing to pay more to get quick deliveries.

Customers also require a seamless experience with customizable delivery options, the ability to locate orders, and real-time communication with concerned personnel. 

However, these are not possible with traditional software for logistics management in Egypt, thereby negatively affecting the brand. 

#4 – Inefficient Route Optimization

Manual route planning fails to consider the dynamic nature of traffic, and finding the

optimum delivery route becomes an uphill task. The dispatcher has to laboriously chart travel routes for multiple order deliveries, considering the number of stops, vehicle capacity, available drivers, and ETAs. Moreover, allocated drivers and dispatch centers have no clear means to exchange information regarding real-time conditions like traffic, vehicle breakdown, and weather.

But an integrated and customizable logistics management system provides features that help reduce fuel costs and increase delivery count and speed, which are difficult to accomplish in a manual setup.

#5 – Increased Customer Acquisition Costs

Given the effort and difficulty required to acquire new customers, a business must retain the acquired customers for the maximum possible period. This significantly reduces customer acquisition costs and creates brand loyalty as well. 

Customer acquisition cost is directly impacted by multiple parameters like the number of customers retained, the average length of time they remain with you, and the average spend over the customer’s lifetime. This requires a database that tracks customers on such parameters to identify proper methods to reengage with them. 

However, this is only possible with logistics software which provides real-time updated dashboards reporting on these parameters and customizable reports.

#6 – High Delivery Costs

Logistics is a very competitive space, with high delivery costs and peak season surcharges charged by 3PLs, eroding already thin profit margins. Additionally, high customer expectations of quick deliveries increase delivery costs, as the other alternative of losing a customer to competition is unacceptable.

In such a scenario, modern logistics providers have a competitive edge. Using smart software for automated warehousing, order management, and dispatch by capitalizing on a wide network of integrated fulfillment centers helps significantly reduce delivery costs.

5 Tips To Choose the Best Logistics Software in Egypt

With multiple companies offering logistics software, it often becomes confusing and overwhelming to pick the right one. While it is true that every business has its own unique needs, efficient software has to ensure the availability of certain key features. A few must-have offerings for the best logistics software in Egypt are the following:

#1 – Seamless Integration with Existing ERP/OMS/WMS/CRM

Logistics software should enable secure access by quickly integrating new partners seamlessly. This requires quick compatibility with different ERPs, including those of partners. Moreover, the logistics management platform must sync with existing in-house ERP/OMS/CMS systems. It is essential as this would allow access to vast data sets, thereby helping generate accurate data-driven insights.

Smooth integration backed by intelligent automation helps reduce the need for human intervention. As a result, businesses can make better decisions, create optimized process plans, and deliver delightful CX. 

#2 – Module-Based Architecture with Customizable Features

Every business has different logistics and management needs. Hence, we recommend opting for those logistics software solutions in Egypt with modular architecture. With the required amount of features, logistics management software is not only cost-effective but also intuitive to use for concerned personnel.

A module-based architecture allows companies to pick and choose services to be included in their setup. This results in a unique identity for each brand. Being modular in nature, it allows rapid integration, with smoother inclusion or exclusion in the future.

#3 – Built-in Scalability Quotient

Companies are fast moving away from on-premises options due to scalability issues. Cloud, which has emerged as the best option, now allows for greater scalability coupled with wider deployability.

The logistics software has to be quick to implement, requiring low-code integration, and should be open to customization. Increasingly, platforms are built to be resilient and future-ready, supporting a growing network of partners globally without compromising performance.

#4 – Operational Visibility via Real-Time Tracking  

The logistics solution should give real-time insights into delivery progress for managing SLAs and KPIs, and provide customers with accurate ETAs. Paired with geofencing, this also helps check fake delivery attempts.

It should ensure faster deliveries by eliminating route diversions, idle time, and unplanned stoppages while providing a holistic view of its own fleet and 3PL partners. This allows delivery managers to identify the individual and overall pain points and optimize them accordingly.

#5 – Reverse Logistics Management

Product returns are an inevitable part of e-commerce business, and the return rates can actually be as high as 30%. Hence, efficiently managing customer return requests, with minimal impact on the bottom line, becomes key to business reputation.

With automated reverse logistics management, customers can easily generate return requests using the order module. Advanced logistics solutions in Egypt can help businesses integrate return pick-up with ongoing deliveries in a cost-efficient and optimized manner, reducing empty miles as well as unnecessary dedicated return operations. 

Logistics Software in Egypt – Why Does Your Business Need It?

With intelligent logistics software, multiple industries and sectors stand to gain much.

Let us explore how different industries can benefit from smart logistics solutions in Egypt. 

#1 – eCommerce Companies

The Egyptian eCommerce market is set to see the customer base rise to 84 million by 2027. In such a competitive market, the companies would require significant optimization of resources and processes to grow. 

A logistics solutions platform enables seamless, cost-effective, and scalable operations. Leveraging AI with features like driver-slot management, en-route order clubbing, live order tracking, and many other capabilities, the software can help manage eCommerce delivery challenges and SLAs efficiently.

#2 – Manufacturing Companies

Logistics software-enabled processes can effectively manage end-to-end freight operations with seamless RFQ management and 360-degree visibility across bulk shipments. It helps ensure optimized freight costs allowing more economic gains for the companies.

Integrating multiple shipping lines can help address inefficiencies like demurrage, idle time at plants, and costs in ports/ transit. This is enabled by process automation, route optimization, fleet management, invoice reconciliation, and other intelligent processes.

#3 – Retailers

The retail space in Egypt is set to reach USD 254 billion at a CAGR of 5% by 2025. This is fuelled by the rising population, emerging secondary cities, and increased spending. 

Logistics platforms can transform retail chains with omnichannel fulfillment. Real-time visibility into SKU movements and inventory levels ensures high operational efficiency. The smart platforms can quickly be implemented across all ERPs and warehouse management systems to aggregate all data onto one centralized platform for better synchronization.

#3 – Third-Party Logistics Providers

With major services like healthcare, manufacturing, retail, and others seeing a major rise, 3PL services have been in demand for some time now. The 3PL market in Egypt is expected to reach USD 1.30 billion by 2026. 

Companies using intelligent logistics software in Egypt can engage with multiple 3PL partners to ensure a faster and wider delivery network. Similarly, for 3PL logistics providers, such platforms help ensure on-time and accurate pickup, boost on-time delivery, provide end-to-end courier visibility, and drive profitability. All of this is made possible while giving a great customer experience.

Shipsy – Simplify Logistics Management With Leading Logistics Software in Egypt

Shipsy’s end-to-end logistics management platform helps businesses manage and simplify their operations effectively, be it by the ocean, air, road, or rail. No matter how unique the business requirements are in Egypt, Shipsy’s logistics management software can be customized and deployed via low-code integration.

The AI-powered platform seamlessly integrates all ERP/OMS/CRM platforms to enable domestic and cross-border logistics, shipment tracking, 3PL management, and more capabilities. This includes seamless management of end-to-end operations of multiple 3PLs via a single dashboard. The module-based architecture of the SaaS-enabled platform allows for greater customization of features as and when required.

With Shipsy’s intelligent logistics software, our clients have experienced the following:

• 23% reduction in last-Mile delivery costs
• 28% increase in on-time dispatch
• 64% increase in customer satisfaction
• 18% reduction in shipment returns

To have a deeper look at Shipsy’s logistics management solutions and achieve greater results, please get in touch with our experts and schedule a customized demo today.