Transportation Management Software in Egypt – Key Trends & Benefits

Egypt’s international as well as domestic e-commerce industry has been growing rapidly. The country has a developing domestic market of around 100 million people, with 65% of the people belonging to the working age group. Further, the transport sector in Egypt is expected to produce around EGP 672.4 billion (USD 27.33 Billion) in FY 2022-2023 – a 14.7% increase from the base year 2021-22. The growth will also increase the magnitude of management for delivery companies and e-commerce businesses. 

The rapid economic growth and deeper internet penetration have shifted buyer preferences toward online deliveries, same-day shipping, and advanced delivery preferences, such as real-time tracking. However, keeping up with consumer demands requires businesses to switch from conventional logistic systems to intelligent and advanced feature-rich systems, such as transportation management software.

Here, we discuss the challenges in the transportation management segment in Egypt, and how intelligent transportation management software in Egypt can help overcome them. We also discuss how businesses can benefit from such a system and unlock greater ROI, improved operational efficiency, and more.

What is Transportation Management Software (TMS)

A transport management software (TMS) automates logistics transportation and helps businesses to reduce paperwork, plan, track, monitor, and manage logistics operations via one unified dashboard. The advanced software for transportation management in Egypt comes with in-built intelligent algorithms for trip planning, asset management, optimized routing, digitized billing, etc. 

Businesses that deal with multiple carriers, need to analyze vehicle capacity and factors like past delivery time, carrier quotes, and terms for various modes of transportation. This is necessary for profitable logistics transportation and strategic planning. These insights offer businesses insight into the transit time of various transportation means, fuel cost, route optimization, and delivery success rates.  

In addition, businesses can manage logistics partners and get a better understanding of the entire transportation process from a 360-degree perspective. 

Key Factors Driving the Need for Transportation Management Software in Egypt

Let’s look at some of the major market trends shaping the logistics transportation market in Egypt, which are driving the demand for intelligent transportation management systems.

#1 – Maritime Transportation

The Suez Canal and the strategic location of Egypt make the marine industry one of the most crucial and busy transportation sectors in the country. More than 90% of Egypt’s foreign trade is carried out by maritime transit. 

With the growth of prominent industries, including textile, oil and gas, and construction, the maritime transportation industry is also expanding. This dynamic global trade environment makes it necessary for companies to have advanced technological capabilities to gain a competitive edge in the market and stand apart.

#2 – Expansion of the Suez Canal Economic Zone

Suez Canal is being expanded by 40 meters in breadth and 6 feet in depth. It is expected to be completed by July 2023 and would increase the capacity by 6 ships. This is paving the way for increased logistics movements. 

Hence, businesses are looking for ways to manage, monitor and control shipment movements in the middle mile and last mile in an intelligent manner. AI-powered transportation management software in Egypt offers smart capabilities such as real-time tracking, vendor management, indent management, digitized documentation, billings, etc. These features become crucial for unlocking efficient and rapid logistics movements as the traffic increases.

#3 – Enhanced Domestic and Continental Connectivity

The government of Egypt has established a vast network of about 9000km of roads connecting upper Egypt and the Sinai Peninsula with the Suez Canal Economic Zone. This new network extends regionally to Africa (From Cairo to Cape Town and Nairobi to Dakar).

The extensive development also integrates regional projects in the surrounding countries and increases transport efficiency. Hence, the enhanced connectivity calls for efficient transportation management software to leverage the development and unlock competitive gains via smart management of logistics movements. 

#4 – Rapid Rise of eCommerce

Statista projects Egypt’s eCommerce market to reach USD 7.54 bn in 2023 and grow at a CAGR of 14.82% till 2027. Further, the average revenue per user is expected to amount to US$120.80. As the eCommerce penetration moves beyond 55.4% in 2023, the logistics and fulfillment processes also gain momentum. The demand for rapid, efficient, and safe deliveries is rising, and this is nudging businesses to adopt intelligent technologies. 

6 Ways Businesses Can Benefit From Transportation Management Software in Egypt

#1 – Real-Time Shipment Updates

TMS solutions offer complete visibility of events and assets, including real-time tracking of the precise location of goods. As businesses and logistics providers have access to real-time shipment movements, they can make strategic business decisions to minimize delays, lower costs, and ensure adherence to SLAs. Businesses using intelligent transportation management software solutions in Egypt can also configure the software to send shipment tracking links via WhatsApp, SMS, or email.

#2 – Automatic Order Allocation

A smart TMS platform comes with in-built algorithms that analyze the shipments, collect optimizing and allocation constraints from the businesses, and assign consignments to the most suitable vehicle. Thus, businesses can set specific constraints for specific types of shipments, areas, and vehicles, and ensure that the order allocation is done accordingly.

The software can be configured easily to allocate orders based on type, location, volume, size, and other critical parameters. 

#3 – Route Planning and Optimization

Efficient route planning is critical for timely deliveries and minimizing wait times. With route optimization capabilities, businesses can select the most efficient routes that minimize fuel waste and align with sustainability goals. AI-enabled platforms also aid riders in avoiding traffic, reducing vehicle idling, and controlling maintenance costs. In addition, customers can track their orders in real-time and receive delivery ETAs, ensuring they are informed throughout the delivery process.

#4 – Advanced Operational Capabilities

Smart transportation management software provides advanced capabilities, including onboarding and working with multiple carrier partners, and managing all shipment movements via a single dashboard. The system streamlines carrier selection by offering a prioritized ranking based on performance and custom criteria like service areas, transportation type, and vehicle type. Moreover, TMS allows businesses to match loads with the right carriers and optimize vehicle capacity utilization, ultimately reducing fuel and vehicle lease costs.

#5 – Reduced Operational Costs 

Transportation management systems (TMS) use several factors, such as fuel cost, transport speed, and rider performance, to select the optimal cargo and transit route for deliveries. By choosing the right carrier, businesses can reduce their overall spending by 2-7% annually.

Smart routing functionalities further reduce delivery costs by optimizing riders’ routes, enabling managers to monitor routes and address issues such as empty miles and fake deliveries. By optimizing vehicle capacity, managers can maximize the number of shipments delivered in one go, reducing the number of trips required.

#6 – Improved Customer Experience

Stats show that TMS integration increases customer satisfaction by 30%, while real-time tracking holds logistics providers more accountable. TMS integration with warehouse management enables customers to receive order shipment alerts and granular insights into order movement.

This comprehensive access to the delivery process eliminates frequent check calls, providing a streamlined customer experience. TMS offers businesses granular insights into each order’s progress, leading to higher customer satisfaction and greater accountability from logistics providers.

Shipsy – Best Transportation Management Software in Egypt

Shipsy’s AI-powered transportation management software is the one-stop solution to automate logistics transportation management and elevate the delivery experiences for every stakeholder. The platform comes with an exclusive portal for dealers and distributors for shipment tracking, triggering automated shipment movement updates to multiple stakeholders and map-based live tracking for end customers. 

The TMS comes with an in-built analytics dashboard and can be coupled with an in-built business intelligence platform Shipsy BI that offers highly intuitive and consumable reporting and data visualization features for strategic decisions.

Shipsy is transforming logistics ecosystems via smart transportation management and end-to-end logistics management services across multiple industry verticals and has helped businesses unlock:

• 12% reduction in transportation costs
• 31% increase in vehicle capacity utilization
• 18% savings in route planning and optimization time
• 14% decrease in the Last Mile delivery costs
• 28% reduction in customer complaints
• 26% increase in delivery NPS

For more information about the transportation management platform or to get started with Shipsy’s smart offerings, please schedule a custom demo today.