R2S Logistics is an Egyptian company providing leading fulfillment and transportation logistics solutions to e-commerce and traditional businesses. Our mission is to develop trusted long-term partnerships with local merchants and businesses by providing innovative technology-driven logistics solutions to their customers’ needs in a timely, efficient, and affordable manner.
E-commerce in Egypt is booming. While it accounts for less than 2% of retail sales, its market size is around $1.6B and is expected to grow at 33% per annum during the next years. In addition to the coronavirus acting as a catalyst in the shift towards online purchasing, the Egyptian government’s strategy is to double e-commerce business activity. Consequently, a rise in e-commerce activity will lead to a matching influx in demand for logistics operations. From order creation to delivery, every stage has to be reliable and foolproof; any complications in order handling could negatively impact the economic cycle: high delivery unreliability and cost will lead to a high volume of order returns (and loss of consumer trust), resulting in retailers having to downsize/let people go to cut costs.
The R2S project is twofold; the first stage is setting a warehouse that acts as an order fulfillment center and sorting facility. We store, organize and prepare products to be shipped to consumers across the country. Fulfillment centers do not require heavy lifting (perfectly suitable for women) and are labour intensive and require agility – meaning many young hires would be needed. The second stage is to create a Pickup and Dropoff network (PUDO), which is a network that utilizes mom-and-pop stores across the region to act as pickup/dropoff points for packages. Granting customers the flexibility to pick up their packages at their convenience solves their delivery schedule problem (up to 30% of shipments are rescheduled) and generates traffic for partnering stores. R2S will be creating employment opportunities for the youth in Upper Egypt and remote governorates since stores will become more operational; in the second phase, their standards of living will be improved by providing them the possibility of generating additional income through affiliate programs, where they would act as resellers for e-commerce merchants.
CYFE’s support will enable R2S Logistics to focus on quickly and efficiently completing the project from both – investing both the physical infrastructure and technology tools required to achieve the needed results.
Our strategic consortium partner, Morinella, a local clothing and apparel manufacturer in the Egyptian market, has also started its expansion project by receiving a grant last year from GTEX to promote exporting and international sales. The grant activities will allow Morinella to expand its manufacturing operations to absorb more production for local and export markets. This will, in turn, allow for more hiring and training of young Egyptians to enter the industry of clothing manufacturing and machine operations. The next step, however, is to sell online directly to consumers.
Furthermore, R2S and Morinella will cooperate to offer training and enablement services for local entrepreneurs and SMEs who wish to manufacture and sell locally-made apparel products online in Egypt. Through a training academy for newly launched e-commerce businesses, entrepreneurs and small business owners will receive training on how to improve and grow their digital business and best collaborate with a quality manufacturing supplier to outsource their products.
The Academy will focus on women-owned micro and SMEs in the apparel and clothing industry, which is one of Egypt’s fastest-growing sectors.