The Middle East logistics industry is set to be growing since the modern physical infrastructure is spreading across the region including upcoming railway network.
GCC logistics is at the crossroads and it is likely to get the most benefit from strongly emerging trading activities between Asia, Africa, Europe and GCC countries.
UAE logistics market valuations touched $27 billion in 2015, driven by an increase in import and export trade volume. Analysis shows that economic growth across FMCG and automobile sectors will also escalate demand for logistics services in the UAE.
The falling oil price is due to the overproduction by US and Saudi Arabia led increasing demand of logistics and transportations solution in the GCC.
Another factor which differentiate GCC logistics and renders a huge platform for logistics and SCM is their domestic manufacturing industries and their diverse interest to operate their own logistics and transportation.
Logistics opportunities In the UAE-
This position on the globe has cemented Dubai and the UAE’s place as a leading sea-air multimodal transport hub in the world – a cost-effective transport mode that provides considerable savings in transit time and freight cost, compared to pure sea freight or air freight mode. Sea-air allows transit time of only 15 to 17 days from origin port to a destination airport, and savings on cost of as much as 50% compared to pure airfreight.
Saudi Arabia, the UAE and Oman will remain the biggest market contributors (a combined 85 per cent share) to the value of the GCC logistics sector, especially for Dubai’s successful bid to host World Expo 2020. The emirate has allocated a total of AED 31.7 billion to build and develop its infrastructure and improve its logistics facilities in the run up to the Expo.
Hawling Challenges in Logistic Industry
GCC approached problems of logistics industries in different ways. Some have stuck to the traditional model of producing, packaging and storing product at site and shipping it to the market once orders have been received. The problem with this is the delivery time, as it can take up to two months to ship product from the Middle East to Asia, by which time prices could have changed two or three times.
The GCC-wide rail network will be a game changer in the regional transportation network and will impact the current players in the logistics market, especially with land transportation. E-commerce is expected to be challenging and will play a significant role in the years ahead especially for the fast growing retail sector with cross border transactions and demanding timely deliveries.
A challenge stands at it’s place for the investors or new Logistics service providers in GCC because of the presence of domestic industries and their large network and logistics infrastructure. Until a new Logistic Service Provider gets an effective and next generation solution, their business can not penetrate the existing logistics providers of GCC.
Technology Is Solving Key Logistics Challenges
The business of logistics in the Middle East now depends on an easy flow of information. Latest technology makes possible to improve market logistics operations by linking up the members of supply chain through communication network which allows to share essential market information; results increase in productivity and reduce lead time.
Nowadays modern technology is able to generate billing and documentations online to reduce the number of paperwork and make less complex paperwork even a smooth logistics solution enables an easy way to reverse duty and taxes on exchanges and returns.
Companies can streamline and create new efficiency through the implementation of the latest advanced and integrated technologies to ensure consistency with international best practices which will help to monitor and visualize the shipments during the transit time across globe, especially when a shipment gets carried out by different logistics providers to reach its destination can be tracked down in a single centralized system.
In few countries like China and other GCC countries where different official languages are preferably used apart from English. New age logistics solution available in multi-lingual can be a phenomenal to drive business as it support individuals to work in their local language.
‘LogixGRID Technologies’ offers next generation Logistics CLOUD to overcome key logistic challenges
LogixERP is a unique CLOUD based all in one solution for logistics which can be accessed from anywhere using Computer or Mobile Phone. LogixERP features or tools are designed to meet the requirement of logistic company of any size to efficiently and effectively manage their AIR, Road, Sea Logistics. LogixERP bring together Accounts and Financial planning integrated with Logistics operation.
LogixERP Mobility Platform offers number of mobility solutions running on Mobile, Rugged & Wearable to keep field workforce connected to the system and helps to remove inefficiency in transshipment operation.
Well integrated with 3rd party system or eCommerce websites it’s provide a seamless flow of information – Ensure internal and external clients are always have the latest information/update.
Fully support the GCC logistics requirement with features specific design to handle the logistics requirements of working in different free zones or transportation through international borders. Its available in English and Arabic and its Accounting system support GCC currencies.
The impact of LogixERP is so overwhelming that it’s hard to discern exactly what it is changing since it’s an integrated tool within the system. LogixERP is essential to get the most value out of operations like –
- ‘Real time pricing’ to understand the price of every logistics elements of supply chain.
- ‘Eliminate multiple WMS and TMS system’ .
- ‘Accurate merge in transit model’.
- ‘Resource flexibility’ which makes accessible to entire team regardless of location or time.
How Logix ERP could support logistics management in achieving your KPIs.
- Shipment / Package scanning at every transshipment point
- On-Time Receiving
- On-Time shipping and delivery
- Order Accuracy
- Inventory Accuracy
300+ modules of LogixERP broadly categorized into Administration; Operation; Fleet Management; Planning; Routing & tracking; customization; Last & First Mile Logistics; Account; Financial Planning; Trip Management; WMS; Insurance management; Customer Care.
Already Express, Courier & Full-Truck logistics companies in UAE & Saudi are managing their business through LogixERP. Availability of local support and deployment team based out in GCC countries offer clients, an easy access to any support required for running the ERP in their organization.