A LOGISTIC PRICE TEMPLATE; A SOLUTION TO COMPANY Vs TRUCKER ACRIMONY
One of the challenges faced by the logistic companies and those in the haulage value chain in Nigeria is the inability to have an acceptable, universal and comprehensive trip rates/diesel charting rates that is acceptable to all. This problem has lead to variations in trip rates and diesel allocation across every industries within Nigeria. It then begs the question(s), how much money should be given to a Third Party Logistic Company to move from point A to point B? How much diesel should a 3PL allocate to his/her driver to deliver goods from point A to point B et al.
The Diesel price is a key determinant in fixing the trip rates. Presently the price of Diesel has continued to increase at the global market due partly to the Omicron covid-19 virus which ravaged several countries in the first quarter of the year which distorted the global fuel supply chain, coupled with the Russian-Ukrainian war (which started some weeks ago), then the deregulation of diesel in the Nigerian market.For instance between 6th March, 2022 to 8th March, 2022 the diesel prices increased from N550 to N640 with is 16.36% increment within twenty-four hours. This upward trend is sending a shocking wave to the logistic and production pipeline. This increment is causing confusion between truck owners and companies with the former demanding for an increase in the trip rate while the latter is skeptical about doing so because of the ripple effect on the consumers.
This problem will continue to exist until the Nigerian industrial/haulage sector have a standard and universally acceptable template that shows how much a 3PL should receive once the diesel goes from X to Y price. This same template will also help companies to determine the cost of their goods if the cost of logistics increases or reduces. With this data, I believe there will be no need for any acrimony between the aforementioned parties once there is a change in diesel price.
This template can also help truck owners determine the standard trip duration(s), tire rotation/maintenance schedule, engine maintenance period and tonnage per kilometer diesel consumption.
The good news is that we have a researched based parameter for making this template available for both the 3PL and production companies usage for seamless internal operations. We put into consideration the traffic idling diesel consumption rate (for 3PL operating in Lagos, State) and the exact Geo-location from point of loading to point of offloading. Our model is easy to use and changes based on diesel price variation.
Trip rate shouldn't be a blanket price quotation it should be based on geographical data (Kilometer or miles traveled). It should consider the exact point of loading to the point of offloading e.g Point A —Bajisma Industries, Obafemi Awolowo road, Ikeja, Lagos to Point B- Zertech, Oluyole Estate, Ibadan, Oyo State rather than just saying Lagos to Ibadan. This information will make pricing more realistic and trip rate will be based on kilometer traveled and diesel/km consumption rather than mere assumption that lacks a concrete data.
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Thank you for your time as always.
