Logistics for Startups: A Founder's Guide to Building a Resilient Business in Africa

It’s incredibly validating when you create a product people want, build a brand, and the first orders start coming in. However, as the initial excitement settles, a new, formidable challenge emerges: How do you get your product from where it is to where your customers are?

This is the world of logistics.

For many, logistics for startups is an afterthought. It is a complex and costly problem to be dealt with later. But this is a critical mistake. Logistics isn't just about delivery vans and dispatch riders. It is the central nervous system of your entire business. It dictates your costs, your customers' happiness, and ultimately, your ability to grow profitably.

Ignoring it is not an option. Mastering it is your competitive advantage. This guide will break down the fundamentals of SME logistics in Nigeria into a clear, manageable framework for any African SME ready to build a resilient and scalable operation.

What is Logistics, Really?

At its core, logistics is the strategic management of how resources are acquired, stored, and transported to their final destination. It’s a holistic view of the entire physical journey of your products and a key component of your overall supply chain management. 

For a growing business, this can be broken down into five fundamental pillars. Understanding these is the foundation of effective logistics for startups.

Inbound Logistics

This is everything related to getting raw materials or finished products to your business. It includes sourcing from suppliers, transportation to your facility, and receiving the goods. A flaw here means you can't produce or sell anything.

Warehousing and Storage

This is where your products are stored before they are sold. Whether it’s a dedicated warehouse, a corner of your office, or your living room, how you organize this space and manage what’s inside is important.

Inventory Management

This is how you know exactly what you have, how much of it you have, and where it is. Proper inventory management prevents stockouts (losing sales) and overstocking (tying up capital).

Outbound Logistics

This is what most people think of as "logistics." It includes all the steps required to get your final product to the customer, like order processing, packaging, sorting, and transportation for last-mile delivery. For online businesses, this is a particularly critical function, and mastering its complexities is often referred to as ecommerce delivery management.

Transportation

The actual movement of goods. This could be via your delivery bike, a third-party logistics (3PL) provider, or a larger freight company. This is where the promises you make to your customers are physically kept.

Understanding how these five pillars interact is the first step toward building an efficient system for your supply chain management.

The Three Key Decisions Every Nigerian SME Must Make

As you grow, you will face three strategic decisions that will define your logistical framework. Getting these right is crucial for success in SME logistics in Nigeria.

Decision 1: In-house vs. Outsourced Logistics

This is the classic "build vs. buy" dilemma.

• In-house Logistics involves buying your vehicles (e.g., delivery bikes or vans) and hiring your drivers.
  • Pros: Total control over the delivery process and brand experience. Potential for lower per-delivery cost at very high volumes.
  • Cons: High upfront capital investment (vehicles), ongoing operational costs (fuel, maintenance, driver salaries), and the significant headache of managing drivers and vehicle uptime. This operational challenge is a discipline in itself, known as fleet management, which focuses on overseeing the entire lifecycle of your vehicles to ensure efficiency.
• Outsourced Logistics means partnering with a third-party logistics (3PL) provider or multiple courier companies to handle your deliveries.
  • Pros: No capital expenditure, access to a wider delivery network, and the ability to focus on your core business.
  • Cons: Less direct control over the end customer experience, and costs can become high if not managed properly.

Pro Tip: For most businesses navigating logistics for startups, a hybrid approach or starting with outsourcing is the most practical path.

Decision 2: Choosing Your Courier Partner(s)

If you choose to outsource, selecting the right courier is important. Do not make this decision based on price alone. A cheap but unreliable partner will cost you more in the long run through lost customers.

Use this checklist to evaluate potential partners:

• Reliability & Speed: What is their average on-time delivery rate? What are their typical delivery timelines for key areas (e.g., within Lagos, Lagos to Abuja)?
• Coverage: Do they deliver to all the locations your customers are?
• Cost: Are their prices transparent and competitive? Do they offer cash-on-delivery services?
• Technology: This is a non-negotiable. Does the courier offer real-time tracking? Can their system integrate with yours? A partner who operates on phone calls alone will become a bottleneck for your growth.

Decision 3: Your Technology Stack

Whether you run your fleet or use partners, you need a central platform to manage everything. A spreadsheet will not work beyond a handful of orders per day. A modern logistics management platform, like Dellioo, acts as your command center. It allows you to:

• Track all orders in one place.
• Monitor the real-time location of your in-house drivers or oversee the performance of your courier partners.
• Automate customer notifications.
• Analyze data to see where you are spending money and where there are delays.

Investing in technology early is the key to avoiding the operational chaos that plagues so many growing businesses.

Getting Started: A Practical 4-Step Action Plan

Feeling overwhelmed? Don't be. You can start building a solid logistical foundation today with these four steps.

1. Map Your Current Process

Take a piece of paper and draw out your entire order journey, from the moment an order is placed to when the customer receives it. Identify every single step. Where do things get delayed? What steps consume the most time? This simple act will reveal your biggest bottlenecks.

2. Master Your Inventory Basics

You don't need complex software to start. Begin with a well-organized spreadsheet. Implement the "First-In, First-Out" (FIFO) principle to ensure older stock is sold first. Set the minimum stock level for each product that should trigger a new order from your supplier.

3. Define Your Delivery Promise

Based on your current capabilities, what can you realistically promise your customers? Is it same-day delivery within your city? 48-hour delivery statewide? Be honest and conservative. It is always better to under-promise and over-deliver. Your delivery promise is a core part of your brand reputation.

4. Start Measuring Everything

What gets measured gets managed. Begin tracking a few key metrics, even if it's manually at first.

1. Cost Per Delivery: How much does it truly cost you to fulfill one order?
2. On-Time Delivery Rate: What percentage of your orders are delivered within your promised timeframe?
3. Order Accuracy Rate: What percentage of orders are delivered correctly with no errors?

This data, however simple, is the foundation for making smarter business decisions.

Build a Strong Foundation for Growth

Viewing your logistics for startups not as a problem to be solved, but as a core part of your business strategy, is the mindset that separates businesses that stagnate from those that scale. Build a strong foundation here, and you will have built a platform for sustainable growth.

Ready to move from a spreadsheet to a strategy?

Dellioo provides a user-friendly technology platform that makes professional-grade logistics accessible for businesses of all sizes. Talk to one of our experts today to see how we can help simplify your operations and power your growth.