MATERIALS HANDLING MIDDLE EAST—PREVIEW
GCC Logistics Market recovering from pandemic-induced downturn— Frost & Sullivan Materials Handling Middle East (2021) to highlight region’s supply chain digitization priorities as a result of increasing e-commerce demand
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new Whitepaper by consultants and research firm Frost & Sullivan says the GCC logistics market is rebounding following a Covid-induced downturn and predicts the region’s surging e-commerce trade will support warehousing courier, express and parcel growth in the coming year.
The 17-page whitepaper–GCC Supply Chain & Logistics: What should your Digitization Priorities be? –reports a recent upsurge in Gulf container volumes, which rose more than 15% in the first half of this year with Saudi Arabia and the UAE accounting for 83% of the region’s 2021 logistics market. Prepared exclusively for Materials Handling Middle East 2021, the region’s leading trade show for warehousing, intralogistics and supply chain solutions, the whitepaper identifies low technology adoption hurdles hampering the GCC sector performance against a backdrop of surging cross-border e-commerce demand and shifting national vision priorities towards logistics performance.
Fragmented Market
The whitepaper reveals a GCC logistics sector fragmented by a
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large number of small and medium service providers with inefficient processes, weak supply chain management practices, and legacy IT infrastructure and systems. “As a result, transportation and warehouse management practices are inefficient due to poor fleet management and the underutilization of logistics assets,” the whitepaper notes. “Historically high investment costs associated with digitalization have led to slower adoption of digital technologies. Freight transportation and last-mile delivery are major sources of inefficiencies in the GCC logistics market. “With increasing competition from global service providers, logistics service providers need to focus on improving operational efficiency and optimize the performance of assets to stay ahead of competition.
Strategy Formulation
“Constant evaluation and redesign of service offerings will become an essential part of strategy formulation to remain competitive and gain market share in the region. Digitalization opens up medium-term growth prospects. Warehousing automation, digital freight platforms, and
