1 MT is not = 10,000 Kg so for your maths to work we assume you are ferrying 10 Mt to arrive at…
Waweru Kimani
1

Hi Waweru, thank you for engaging.

Yes; this is for 10 metric tonnes (we had a typo; thank you for kindly pointing it out).

You are correct. There are also Cess fees in some counties which we could have factored in (Ksh 1000 for Mau, for example, so say an additional 10 cents per kilo). Sometimes there could also be offloading fees depending on the location and time. The quoted transport savings will still be the same though, in this sample example, if we assume a standing Cess fee.

You do bring up some interesting points with waste and handling. There are companies that are beginning to deliver only what customers have pre-ordered: a buyer - a vendor, shopkeeper or restaurant - will put in a request for exactly what they need based on their demand predictions. The company aggregates the orders and will then request supply or harvest of only that total amount. So, while there is still a lot of waste and sometimes oversupply in the system, such companies are improving that. Handling is also reduced when streamlining happens, such as with less distribution points, e.g. reducing the number of times goods move from one vehicle to another. We are seeing that happen slowly as well.

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