The rate of growth in logistics activities slowed down slightly in the third quarter of 2022, according to the Ghana Logistics Managers Index. A prime reason for this slowdown was the high cost of inventory and the associated cost of warehousing and transportation prices.
The Logistics Managers Index is a tool created by CARISCA to support decision-makers and improve businesses and livelihoods in Africa. By measuring combinations of inventory, warehouse and transportation activities and tracking the relationship between these variables, the LMI provides a timely measure of movement in logistics activities in Ghana.
The Ghana LMI is the first of its kind in Africa, and a significant step toward supply chain efficiency, visibility and transparency in the country.
The LMI measures the growth or decline of Ghana’s logistics industry based on eight key components:
- Inventory levels
- Inventory costs
- Warehousing capacity
- Warehousing utilization
- Warehousing prices
- Transportation capacity
- Transportation utilization
- Transportation prices
Key findings from the third LMI report include:
- For the first time since the quarterly LMI survey began in early 2022, one of the eight logistics metrics studied (inventory levels) scored below the threshold value of 50%, which could signal a possible recession.
- Both warehouse capacity and utilization in the third quarter of 2022 hit all-time lows for the year.
- The two metrics that show stronger growth than in the previous quarter are both cost-related: inventory costs and transportation prices.
- The use of electronic payment systems grew much slower than had been predicted the previous quarter.
- Despite the third-quarter results, logistics managers expressed optimism for improved growth in the fourth quarter.
CARISCA will continue to capture, analyze and share LMI findings quarterly on its website, https://carisca.knust.edu.gh/LMI.
Senior executives and managers of Ghanaian organizations are invited to participate in the next quarterly LMI survey by visiting https://www.surveymonkey.com/r/Q1-23-LMI.