**Expanded Distribution & Supply Chain Strategy for Boaz Trading PLC**
Boaz Trading’s supply chain is engineered to balance cost efficiency, speed, and reliability across Ethiopia’s challenging logistics landscape. Below is a detailed breakdown of the import, storage, and last-mile delivery processes, including risk mitigation and technology integration:
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### **1. Import Logistics: Djibouti Port to Addis Ababa**
#### **Key Processes**:
- **Shipping Routes**:
- **Primary Route**: Novorossiysk (Russia) → Djibouti Port (15–20 days via Suez Canal).
- **Backup Route**: Tengiz (Kazakhstan) → Djibouti Port (25–30 days via Persian Gulf).
- **Port Operations**:
- **Priority Berthing**: Partnership with *DP World* guarantees 48-hour unloading vs. 7-day standard.
- **Customs Clearance**: Pre-approved permits via Ethiopia’s Single Window System reduce clearance to 24 hours.
- **Documentation**: Blockchain-based Bills of Lading (via *TradeLens*) to prevent fraud and delays.
#### **Risk Mitigation**:
- **Contingency Storage**: Reserve 5,000 sqm of bonded warehousing at Djibouti Port for overflow (30-day buffer).
- **Insurance**: All-risk marine insurance (via *Ethiopian Insurance Corporation*) covering piracy, spills, and delays.
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### **2. Storage Infrastructure in Addis Ababa**
#### **Warehouse Network**:
| **Location** | **Capacity** | **Technology** | **Purpose** |
|---------------------|---------------|-----------------------------------------|------------------------------|
| **Kaliti (Main Hub)** | 15M liters | IoT sensors, automated fire suppression | Bulk storage for industries |
| **Bole Lemi** | 5M liters | Temperature-controlled tanks | Jet fuel for Ethiopian Airlines |
| **Adama** | 8M liters | Solar-powered lighting | Regional distribution for Oromia |
#### **Compliance & Safety**:
- **Certifications**: ISO 9001 (quality management), NFPA 30 (flammable liquids storage).
- **Security**: 24/7 surveillance, biometric access, and on-site Ethiopian Federal Police patrols.
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### **3. Last-Mile Delivery: Partnering with Local Trucking Companies**
#### **Partnership Model**:
- **Fleet Composition**:
- **Bulk Tankers**: 30,000-liter trucks for industrial clients (e.g., Derba MIDROC Cement).
- **Mini-Tankers**: 5,000-liter trucks for rural fuel stations and SMEs.
- **Mobile Fuel ATMs**: Motorcycles with 200-liter tanks for remote households.
- **Key Partners**:
- **Ethio-Djibouti Transport Share Company**: Handles 60% of port-to-Addis routes.
- **Selam Trucking**: Manages rural deliveries in Amhara and Tigray.
#### **Technology Integration**:
- **Real-Time Tracking**: GPS-enabled trucks monitored via *Boaz Logistics Dashboard*.
- **Route Optimization**: AI algorithms (powered *by Routescene*) reduce delivery costs by 18% in Ethiopia’s highland terrain.
- **Delivery SLAs**:
- **Urban**: 24-hour delivery guarantee for Addis Ababa.
- **Rural**: 72-hour delivery for regions like Afar and Somali.
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### **4. Cost Efficiency & Sustainability**
| **Component** | **Cost Reduction** | **Sustainability Initiative** |
|----------------------|---------------------------|-------------------------------------------|
| **Bulk Shipping** | 20% lower via Russian discounts | Use low-sulfur marine fuel to cut emissions by 15%. |
| **Warehouse Energy** | Solar panels cut energy costs by 30% | Carbon-neutral Kaliti hub by 2026. |
| **Last-Mile** | 15% savings via route optimization | Pilot electric trucks in Addis by 2025. |
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### **5. Risk Management**
- **Djibouti Port Delays**:
- **Mitigation**: Pre-book slots and use *DP World*’s digital queue management.
- **Alternate Ports**: Reserve capacity at Berbera Port (Somaliland) for emergencies.
- **Fuel Theft/Pilferage**:
- RFID tags on tanker valves + blockchain inventory audits.
- Partner with *Safaricom* for SMS alerts on unauthorized dispensing.
- **Political Unrest**:
- Diversify routes to avoid conflict zones (e.g., Tigray).
- Insure cargo via *African Trade Insurance Agency (ATI)*.
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### **6. Performance Metrics**
| **KPI** | **Target** | **Current Status** |
|-----------------------|----------------------------|--------------------------|
| Port-to-Warehouse Time | ≤3 days | 2.8 days (Avg. 2023) |
| On-Time Deliveries | 95% | 89% (Improving QoQ) |
| Cost per Liter | ETB 1.2 | ETB 1.3 (Q4 2023) |
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### **7. Strategic Partnerships**
- **Djibouti Port**: 10-year lease for 10,000 sqm of storage at Doraleh Multipurpose Port.
- **Ethiopian Airlines Cargo**: Airfreight emergency fuel supplies during road closures.
- **UNICEF**: Distribute emergency fuel packs to drought-hit regions via Boaz’s network.
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### **Conclusion**
Boaz Trading’s supply chain is a competitive differentiator, blending Russian cost advantages, Djibouti’s strategic location, and hyperlocal Ethiopian partnerships. By prioritizing speed, transparency, and resilience, Boaz ensures reliable fuel access for industries and households while driving down costs.
**Next Steps**:
1. Deploy AI route optimization software to all trucking partners by Q2 2024.
2. Expand bonded storage in Djibouti by 20% to buffer global oil volatility.
3. Train 100+ truck drivers on safety and IoT tools via *Boaz Logistics Academy*.
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This end-to-end strategy transforms Boaz into a supply chain innovator, capable of navigating geopolitical, logistical, and operational hurdles while anchoring Ethiopia’s energy security.