alexa Manufacturers to cut transport costs after new deal with Sendy - Daily Nation

Manufacturers to cut transport costs after new deal with Sendy

Thursday July 4 2019

Phyllis Wakiaga.

KAM chief executive Phyllis Wakiaga. FILE PHOTO | NMG 

JOHN MUTUA
By JOHN MUTUA
More by this Author

Local manufacturers are set to make big cargo deliveries into and out of Nairobi using online logistics firm Sendy in a deal aimed at slashing firms’ transport costs by using technology.

The company’s partnership with the Kenya Association of Manufacturers (KAM) will see it target manufacturers doing big load cargo deliveries across the country.

“Part of KAM’s goal to our members is to enhance market access for products, locally and globally, and to grow exports by 33 percent by 2019. By partnering with Sendy to offer logistics education and knowledge to our members, we believe it will add value and help the members reduce their logistics costs,” KAM boss Phyllis Wakiaga said at an event held at the Nairobi Serena Hotel yesterday.

Under the deal, manufacturers can opt to use pick-ups, vans and trucks from Sendy’s platform.

Customers pay Sh1,500 for up to five kilometres covered on the logistics firm’s platform while a three-tonne truck costs Sh5,900, Sh6,500 for five tonnes and Sh7,600 for deliveries by a 10 -tonne truck for up to 20 kilometres.

Sendy will also train more than 200 manufacturers on how to cut down their logistics costs through the use of technology under the new deal with KAM.

The move comes as manufacturers continue to shoulder high costs of transport where they mainly foot a flat rate per truck regardless of their size of cargo and distance going as high as Sh60,000 per truck countrywide.

This has seen small-scale traders team up to share the cost of transporting goods across the country and neighbouring states.