Gold Digging 101: Why the Logistics Industry Approves

When Kanye West belted out his hit tack decrying gold diggers, we all nodded our agreement then later enjoyed the irony of his current choice of partner. Gold diggers have long been shamed in pop culture: the idea of blatantly searching for a wealthy partner to support you is universally frowned upon, right? Wrong. As a matter of fact, we in the logistics industry wholeheartedly support this idea.

Allow us to clarify: finding a wealthy benefactor in our industry usually means mutual benefit for all involved. Our companies prosper with the financially blessed partner sharing in the spoils. In this case, our target is Nairobi county.

Listed by the Kenya National Bureau of Statistics and Society for International Development as the wealthiest county in Kenya, Nairobi is a business partner for supply chain management firms by being the ideal location to launch such a venture. With renowned consulting firm Capgemini predicting the number of dollar millionaires (worth KES85 million and over) residing in Nairobi set to increase 62% by 2020, Nairobi is only set to become more lucrative. How, you ask?

The most obvious advantage of having a wealthy populace is the readily available investors for the logistics industry. The typical pattern for individuals with a high net worth is to seek out opportunities to further grow their standing, usually accomplished by finding promising industries and companies to invest in for nigh guaranteed returns. Beneficiaries of this investment can therefore either be individual companies engaged in corporate partnerships, supported by hedge funds, venture capitalists and the like.

Alternatively, well to do citizens can set up their own supply chain management firms bolstered by unlimited funds, guaranteeing highest quality equipment and access to a network of high profile clients within the social circles of the wealthy founders. Such companies can become a benchmark for the industry, providing the necessary kick in the rear for competitors to up their game, resulting in overall improved services across the board.

Supply chain managers can also rejoice when operating in high income areas, assured of “healthy” infrastructure support systems. Cities or counties that are well off will generally have more advanced and better maintained infrastructure systems than their less fortunate counterparts, as is evident by comparing Nairobi road network to, say my home town, the North Eastern region.

This is because high income generally means that there will be funds to create and repair infrastructure systems, either from high taxes collection rates, or due to pressure from enterprising groups willing to partner with the government. This is usually done to ensure their businesses and residences have adequate infrastructural support to continue to prosper. The government itself is also more likely to invest in developing areas that generate high income for the country, eager to ensure that this revenue persists.

Areas considered “wealthy” usually have a bustling economy, bolstered by high disposable income of residents. Where residents have spending power, the retail industry thrives, pulling the logistics industry right along with it, where goods require delivery to and from corporate warehouses to retail outlets or to individual customers where applicable.

It is also possible to establish a niche logistics service under these circumstances, such as high security transportation. Cities populated by those of means will usually require such services to transport jewelry, works of art, and other such cargo that requires armored vehicles and high alert security. Supply chain managers dealing in exports and imports are also set to benefit from operating in where the well to do reside, as it is likely that there will be steady demand for imported luxury goods, as well as export opportunities for those involved in overseas trade, e.g of African curios or fabric.

Seeking out opulent areas to operate in is therefore one of the smartest moves a supply chain management firm can make, therefore increasing their chances of success. As far as searching for a wealthy life partner goes, the logistics industry heartily approves of this method. To potential entrepreneurs, we say proudly grab that shovel and dig.

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