The Role of Road Haulage in the Supply Chain Industry

The transportation of goods from one location to another, particularly road transportation, is a significant growth indicator for economies worldwide. Here, we are not just talking about the transportation of human beings but, most importantly, the transportation of goods from one location to another. 

Indeed, there is a symbiotic relationship between road transportation and economic growth, as no economy can survive without an efficient road transportation system for the movement of goods and services, which is why the cost of transportation has a direct impact on the cost of goods in the marketplace as we always witness in Nigeria.

In Nigeria, the road transport sector emerged as one of the best-performing sectors in 2022, with a 49.68 percent growth, towering above the general economic growth of 2.25 percent. 

However, in the third quarter of 2023, the road transport sector entered a recession for the first time in 30 months, and this is not unrelated to the removal of the petrol subsidy, which has negatively impacted the road transportation sector and the economy at large.

Haulage explained

Haulage is the transportation of goods from one place to another, typically by truck, train, ship, or aeroplane. 

On the other hand, road haulage is transporting goods and cargo strictly by road, using trucks, lorries, and other commercial vehicles. It is a vital aspect of the logistics and supply chain industry, facilitating the circulation of goods between manufacturers, distributors, retailers, and consumers in a timely and efficient manner. 

The road haulage market is often affected by certain factors such as petrol prices, availability of petrol, condition of the road network, regulatory requirements, nature of goods, and scope of operations.

In Nigeria today, over 300,000 registered trucks are transporting raw materials, finished goods, and agricultural produce from one location to another, contributing immensely to the country's GDP and economic growth.

The advantages of road haulage to the supply chain

In the supply chain industry, every type of haulage has unique advantages peculiar to it, and road haulage is no exception. In a country like Nigeria, where there is no efficient rail haulage system or cost-effective air haulage system, irrespective of the challenges faced by road transportation, road haulage has become a lifesaver for businesses and organisations who have goods to move around at a cheaper rate. Here, we will consider the advantages of road haulage.

1. Broad reach: In Nigeria, numerous businesses are in places with no access to the airport or the railway, and some in remote areas where transportation is less than effective. In this case, road haulage becomes the only way to access the market or transport their goods from the seller's location to theirs or even their location to consumers. Therefore, road haulage gives businesses access and connection to their market and wider world.

2. Cost-effectiveness: Compared to the air or sea haulage system, road haulage is a cheaper option for moving goods from one location to another, irrespective of the distance, especially for small businesses or small packages.

3. Versatility: The road haulage system is versatile and can accommodate the needs of businesses. From individuals and small-scale companies to medium and large-scale enterprises, road haul has systems and vehicles that accommodate them all. With Full Container Loads, there is a specific vehicle for them, and for Less than Container Loads or even hand packages, there are proper services to accommodate them.

4. Flexibility: Regarding delivery options, road haulage companies are flexible enough to adjust to the needs and time of their customers depending on the location and the cost. Some haulage companies offer same-day and next-day delivery options to meet client's needs, and some can collaborate with other haulage companies to fulfill client's needs. 

5. Speedy delivery: Though slower than the air haulage option, road haulage is also fast and efficient, provided a good road network exists. This way, manufacturers can meet production timelines, and distributors and sellers can meet their delivery timelines. All these work together to make the supply chain process efficient.

6. Ability to transport large quantities and heavy goods: Haulage companies can transport large quantities of goods, as well as heavy or bulky items, that may not be suitable for other modes of transportation.

7. Organised logistics and supply chain management: For most businesses, the logistics and supply chain aspect needs more organisation. Road haulage companies provide businesses with an organised logistics system that accommodates the needs of the company and takes away the delay, inefficiency, stress, and other issues that comes from an unorganised logistics system and frees up the business owners to dedicate their time to their business.

   
   

It is a known fact that transportation is the bedrock of every economy, and embedded in the transportation industry is the haulage industry. The global road freight transportation system has grown over the years, and according to an available research and economic forecast, it will increase from $98.94 billion in 2023 to $105.96 billion in 2024.

To leverage the benefits that abound in the haulage sector in 2024 for the growth of your business, partner with SARA PROCUREMENT SERVICES LIMITED to enjoy the benefits of her haulage service (HAULAGE BY SARA).

Visit our physical office space at 3 Fatai Irawo Street, Ajao Estate, Airport Road, Lagos, Nigeria, or any of our warehouse touch point locations worldwide to learn more about us and utilise our services. 

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