20 minute read
ECOMMERCE
THE REALITY
IS AROUND THE CORNER
Niranjan Gidwani, Consultant Director of Texub, talks about the burgeoning B2B e-commerce industry
The evolution of B2B e-commerce from a niche segment of the commercial market to where it will soon equal or surpass traditional channels has been underway for some time. Going back in time, B2B purchasing was, and has even till recently, been dominating - by a generation that has believed in and favoured centralized, face-to-face interactions and personal relationships. Whether we like it or not, B2B purchasing is now the responsibility of the much more internet-savvy Generation X, and this activity will soon be under the management of the first alldigital generation, for whom devices are an extended appendage of their bodies. Globally, the world chooses to call them Millennials.
Unlike the previous generations, millennials are at ease with online buying. It must be understood that they have no problem extending their B2C shopping practices to their B2B purchases. And they will. Giant online retailers like Amazon have been the pioneers in creating frictionless experiences that consumers have been used to. Such incidents are now commonplace across almost all B2C categories, and no good online platform can survive for long without super seamless experiences. The same buyers are now getting into positions responsible for work and business-related purchases. B2B vendors are rushing to adopt the same principles and methods to their online buying experiences. The B2B e-commerce model will likely be a hybrid model, where buyers want to shift between online and offline transactions and interactions for purchases and services.
As this gains traction, the importance of putting together the data and creating seamless experiences will only increase. By 2023, Gartner forecasts 15% of mid-to-large B2B brands to launch their marketplaces and 70% of all marketplaces to support B2B transactions. The transition to digital is not without risk, and the high-profile cyberattacks and increased fraud will cause their share of problems. In the case of B2B, transactions are likely to be of higher value and, therefore, more concerning. For B2C and B2B businesses, securing customer data and protecting company infrastructure from fraud and security breaches are as crucial as any other aspect of e-commerce. Adopting and investing in a mobile strategy, especially as more Millennials and younger digital generations take leadership roles, will be essential for any B2B business looking to sustain and grow its e-commerce revenue into the future.
As per Gartner and other analysts, the only way forward for B2B is a greater reliance on e-commerce and the continued development and advancement of the trends and technology we are used to seeing. B2B sales organizations are not selling the way today’s buying customers want to buy. This is slowly but surely creating a growing buyer-seller divide. This current phase is pivotal for traditional B2B sales leaders and organizations. It’s time to acknowledge that the world has changed and that we can’t sell how we used to.
It is imperative to learn from the habits of highly successful B2C organizations like Amazon to truly understand the customer and use data and deeper insights to be more effective. Since online B2B is likely to be bigger than online B2C in a few years, this provides organizations with a fresh opportunity to co-exist alongside the Amazon of the world. Interesting times ahead. We may hear of some upcoming start-ups from this region creating new success stories of the future.
Niranjan Gidwani, Consultant Director of Texub
THE FUTURISTIC
TYRE INDUSTRY
Stefano Sanchini, Regional Managing Director of Bridgestone Middle East and Africa, shares his reflections on the expanding tyre industry in the region
HOW IS BRIDGESTONE MEA ADAPTING TO THE PLANS OF ADVANCING INNOVATIONS IN THE TRANSPORTATION INDUSTRY WITHIN THE REGION? Bridgestone has been leading the industry in advanced and sustainable mobility solutions, and we have been exploring various avenues to innovate our products to meet the current speed and efficiency of the industry.
Tyres are not only the point of contact between a vehicle and roads but will also help in data collection. Tyres can offer real-time insights to the vehicle controller, further optimising performance, safety, durability, and efficient fuel consumption. We create value by leveraging multiple data platforms to create connected solutions as a part of the global mobility ecosystem.
The mobility solutions offered by Bridgestone follow four key themes – data collection, data platform, data analysis and user interface: > Data collection includes telematics, RFiD, sensors and 3D for tyre measurement. Data platforms are being studied further to ensure efficient security, privacy issues, data storage, computing, and API. > Data analysis entails exploring value-addition by Artificial Intelligence and machine learning, digital twins, and visualisation. In the user interface, we are developing the
Stefano Sanchini, Regional Managing Director of Bridgestone Middle East and Africa
software, web interface, and mobile applications. We have been working towards developing high-standard and sustainable tyres using these technologies. > To ensure efficient production and operations, we leverage the digital twin solution to reduce time and resource usage, positively impacting the environment. For instance, our innovative Virtual Tyre Development Technology assists us in creating a virtual copy of a tyre, which helps predict its performance without physically manufacturing and using it. This reduces carbon emissions and raw material usage during the development phase by approximately 60 per cent. Furthermore, it also saves around 200 prototype tyres and 40,000 kilometres of physical testing per tyre during the development phase. > Additionally, we collaborate with Microsoft to develop an innovative Tyre Damage Monitoring System leveraging the Microsoft Connected Vehicle Platform (MCVP). It is designed to ensure road safety and reduce accidents caused by technical failures. The system monitors and gathers information on the damage, depicting the part that has been damaged, which further helps in gaining insights into road conditions and infrastructure. The system collects data, enabling responsible authorities to mitigate risks by identifying road damage, location, and other hazards. The development of these systems marks a significant milestone in our efforts to position Bridgestone as a leader in sustainable and advanced mobility solutions. WHERE DO YOU SEE THE TYRE INDUSTRY PROGRESSING IN THE NEXT TEN YEARS? The industry’s aim in the fourth-coming years should be to reduce the environmental impact of our operations and manufacturing. At Bridgestone, we aim to achieve carbon neutrality across our value chain and product life cycle by 2050, with 100 per cent sustainable materials, to contribute to the global efforts of protecting the ecosystem. We at Bridgestone believe in a Circular Economy and strive to adopt practices such as redesign, reuse, repair, remanufacturing, and recycling, which will contribute to realising organic production and consumption by leveraging new technologies and business models.
In the next 3-4 years, we see demand quite strong, so we will continue to invest predominantly in technology because, in the future, we will see more and more EVs, which might require new technology for tyres. So, we are investing in that technology to deliver EV-specific tyres. >>>
We have been committed to shaping a sustainable future for the mobility sector, innovating, and pioneering tyres, making them more resilient, secure, energy-efficient, connected and digitally developed. Bridgestone has been a strong advocate for adopting electric vehicles, producing tyres and EV technologies, and working on an efficient EV-ready retail and service network. Our digital mobility solutions enable the development of advanced technologies and telematics ensuring sustainable mobility.
WHAT ARE KEY FACTORS BEING TAPPED INTO TO ACCOMMODATE DIGITALISATION IN THE TYRE INDUSTRY? The key to achieving a sustainable mobility sector are innovations and collaborations. We have undertaken numerous innovations in partnership with relevant companies to realise our joint goals. Moreover, we have joined the Sustainability Network managed by the Dubai Chamber of Commerce and Industry to ensure our active participation in regional sustainability initiatives. We have invested in various research and development activities to explore environmental-friendly sources of natural rubber to assuage the overconcentration of rubber production in several regions. Natural rubber is the raw material used in tyre production and large quantities. We aim at optimising genuine rubber content in guayule shrubs and evaluating applications in different types of tyres and rubber compounds.
We are additionally developing innovative EV tyres to boost the adoption of electric vehicles. We are happy to report that 30 per cent of new OE fitment development by Bridgestone EMIA in 2020 was dedicated to EVs. Our Ologic technology has been designed for BMW’s all-electric i3 and the Enliten technology, which provides excellent fuel efficiency.
Our Virtual Tyre Modelling solution has accelerated our efforts in attaining sustainability. It helps create a digital twin at the development phase, reducing the volume of physical prototypes and physical testing, thus cutting down raw material consumption and product development time. We approach all projects keeping sustainability in mind and are making conscious efforts to reduce raw material consumption, apply virtual development technology wherever possible and implement our sustainable tyre technologies. We have been working beyond boundaries to deliver the latest innovative and viable products while enhancing quality and performance.
Bridgestone operates intending to be the leader in achieving a waste-free mobility sector and remains dedicated to shaping a sustainable future for the industry.
WHAT ARE THE STEPS ARE BEING INCORPORATED TO BALANCE ADVANCES LIKE IOT AND AI TO SUSTAINABILITY? Owing to the rapid digital transformation in every sector, the rise in the use of IoT and AI technologies has put forth an evolved Connected, Autonomous, Shared, and Electric (CASE) vehicle in the region. Autonomous cars are projected to hit the 24 million mark by 2024.
The transition to autonomous operations is expected to impact the tyre industry significantly. These vehicles will
require new and innovative tyres with improved performance, including sensors, intelligent diagnostic capabilities, and advanced safety solutions.
Bridgestone Group considers CASE a key priority and constantly develops innovations and offerings to meet customer expectations.
We have been committed to achieving a ecological future for the mobility sector and have continuously been transforming our operations to advocate the adoption of electric vehicles. We aim to make electric mobility more efficient by deploying cutting-edge virtual tyre remodelling and simulation technologies. This helps reduce development time, raw materials consumption, and carbon emission while ensuring accuracy and flexibility. Because of our virtual tyre development capabilities, we can simulate rolling resistance in actual driving conditions, enabling us to design EV tyres that can optimise rolling resistance and increase battery range in real-life situations. We strive to ensure suitable tyres for EVs and make EVs more efficient and accessible.
WHAT ARE YOUR THOUGHTS ON URBAN MOBILITY? Due to rapid industrialisation and urbanisation worldwide, the mobility sector faces numerous challenges. The mobility sector in the Middle East is no exception, as it faces urban mobility issues in regional transport and infrastructure development discussions and policies. The region is gradually transitioning to sustainable and connected cities, which has increased the need for holistic models to enhance the mobility sector.
Several nations in the Gulf region have deployed multi-faceted transportation and mobility management strategies, but unique, feasible solutions are still necessary. While the transformational phases pose various challenges, there are opportunities as well. Bridgestone has been rapidly transforming from a tyre manufacturer to a leading mobility solutions provider to take advantage of the opportunities presented and offer our customers enhanced solutions. To achieve this end, we have been transforming five key areas: investment in >>>
tyre and technology, enhancement of retail and maintenance services, improvement of predictive maintenance capabilities, maintenance and tyres as service-based solutions, and new digital solutions to the market.
HOW IS BRIDGESTONE MEA PLANNING TO INTEGRATE URBAN MOBILITY WITH THE EVOLVING POLICIES IN DUBAI AND THE GCC?
The automotive industry is witnessing enhanced sustainability and efficiency owing to developments in EV technologies, diversified powertrains, and stricter environmental policies. With these changes, customer expectations of tyres are also increasing.
The UAE has undertaken various global initiatives and internal regulations while attaining its NDCs and promoting ESG compliance and maintainable developments, in line with UAE Green Agenda 2015–2030, the Paris Agreement, the UN Sustainable Development Goals (“SDGs”), as well as the UAE Vision 2021 and Dubai 2040 Urban Master Plan.
Carbon emissions can be effectively reduced by using more public transport instead of private vehicles. The Road and Transport Authority successfully reduced 642,000 carbon emissions in 2018. Additionally, the RTA has implemented various initiatives to promote local and federal policies to realise the objectives of the UAE Centennial 2071, which aims at positioning Dubai as a leader in sustainable practices. Bridgestone has constantly been investing in developing green and intelligent solutions to ensure safety and efficiency in mobility. We recently acquired Azuga, a leading global connected platform, which will help gather data from vehicles and drivers and turn them into information that will assist in enhancing the safe operations of vehicles while reducing cost and risk. We also partnered with Autobahn, a start-up is mobility-focused innovation network, which offers us a new platform to support start-ups and explore opportunities in recent and disruptive models in the mobility sector. It also provides exceptional opportunities to establish a communication channel with a network of relevant industry partners.
Moreover, electric vehicles offer Bridgestone many opportunities to achieve carbon neutrality by 2050 and make the mobility sector more sustainable. Our partnership with leading EV manufacturing companies enables us to develop premium tyres and EV technologies. We also aim to establish a network of end-toend EV-ready retail and service centres, which offer maintenance and tyre service for EVs, charging and mobile services, all under one roof. Keeping in line with this, we recently partnered with Fisker, an electric car start-up, to launch an all-electric SUV in several European markets.
We also acquired Arvento Mobile Systems, a digital fleet solutions provider that offers fleet management services to customers in Turkey and the Middle East. We aim to streamline operations for fleet owners and drivers by providing services beyond tyres. Lastly, we will ensure our customers’ convenience, efficiency, and productivity through effective fleet management solutions based on integrated mobile systems and data analytics.
HOW DOES THE COMPANY PLAN TO MERGE MODERN DESIGN AND CREATION WITH IMPROVED TECHNOLOGICAL DEVELOPMENTS? Bridgestone will shift its focus on the electric vehicle segment considering the automotive industry’s transition to electric mobility. The EV fitments offered by Bridgestone encompass its industry-leading, sustainable technologies that meet the requirements for EVs, such as: > TECHSYN is an innovative solution that helps achieve better wear efficiency and reduced rolling resistance while reducing raw material consumption. > The B-Silent technology reduces tyre noise for driver comfort and ensures sustainable and lightweight tyres. > ENLITEN technology assists in reducing 30 per cent tyre rolling resistance by and decreases tyre weight by 20 per cent, which extends EV driving range while lowering environmental impact by improving resource productivity.
Among the various issues, EVs face is the vehicle’s weight, which has a significant impact. In this regard, Bridgestone has partnered with multiple car manufacturers to develop High Load (HL) tyres that can support the increased weight of powerful electric and hybrid vehicles.
Bridgestone EMIA is introducing the Bridgestone OE tyres, customised for EVs, reflecting its commitment to the future of electric mobility. These tyres have undergone rigorous testing and have obtained car manufacturers’ approval. It can support the unique features and requirements of EVs and their manufacturers by providing reassurance on the range, control, and tyre life.
To support the automotive industry’s ambitions on sustainability, Bridgestone has collaborated with several global EV manufacturers for hybrid and electric vehicles, such as Mercedes EQA and EQB, BMW i3, Fiat 500 EV, Nissan LEAF, Volkswagen’s all-electric ID.3 and ID.4, among others.
TELL US ABOUT YOUR RECENT COLLABORATION WITH PANATTONI, AND HOW IS IT GOING TO IMPACT OPERATIONS IN THE MIDDLE EAST. Bridgestone’s collaboration with Panattoni is expected to accelerate the growth and development of the Burgos plant. This new logistics facility will serve as a European distribution centre, enabling increased exports to the MEA region (Middle East and Africa).
The Burgos plant is a strategic location for the company and reflects our commitment to developing regularly. Being in partnership with Panattoni provides us with the assistance of a leader in industrial logistics, which will ensure a high technological and environmental standard consistent with Bridgestone’s projects while further increasing the export capacity of the plant.
WHAT’S THE FORESIGHT FOR BRIDGESTONE MEA IN THE NEXT FIVE YEARS? ‘Solutions for your journey is more than just a marketing tagline at Bridgestone. It also shows our dedication to offering organic solutions by leveraging innovative technologies and advanced data analytics for the mobility sector. The COVID-19 pandemic has accelerated digital transformation, and the automotive industry is not exempt. Bridgestone is prepared to deliver practical, innovative, and sustainable mobility solutions in the post-pandemic world.
Bridgestone’s digitalisation agenda encompasses adjusting to evolving consumer behaviour. We aim to explore futuristic business models actively, as companies that embrace technology today can be resilient enough to meet the dynamic digital needs and consumer preferences.
The nations in the Gulf regions, particularly in the Middle East, as wellaccustomed to adopting unconventional mobility solutions due to fast government decision-making processes and increasing focus on modern urban transportation modes. Additionally, the region has been implementing various programs for development and transformation to ensure a competitive position globally, which will further boost the establishment of a modern mobility ecosystem.
Bridgestone Group has been devoted to contributing to global efforts in achieving sustainability. To evolve into a sustainable solutions company through various corporate activities, the group takes multiple measures to impact customers and society positively. The United Nations’ Sustainable Development Goals (SDGs) aim to tackle prevalent social, environmental and economic challenges by 2030 to ensure a sustainable future. As the world makes efforts to realise these common goals, the Bridgestone Group will also contribute to society as a sustainable company, in line with the SDGs. It aims to leverage its knowledge and expertise to help address general global issues.
Various companies have always been working to offer seamless mobility experiences, and there will be more enhancements and developments in this regard. New solutions and services are expected to be implemented to build a data-centred and sustainable transport ecosystem. We can expect highly integrated and efficient transport systems with automated transport solutions.
LOGINEXT’S DHRUVIL SANGHVI
TALKS ON HOW SAAS IS DEVELOPING THE LOGISTICS INDUSTRY
Logistics News ME interviewed Dhruvil Sanghvi, Founder and CEO of LogiNext, one of the biggest global SaaS (software as a service firm) leaders in automation solutions – with a primary focus on supply chain and logistics.
Launched in 2014, LogiNext promises to provide full-stack logistics services, including first-mile, middle-mile, and last-mile. With the expanding e-commerce, start-ups, CEP, and food delivery app industries, these logistically operating companies tend to open doors to more significant opportunities for expansion. Here’s what Dhruvil Sanghvi has to say on shaping the logistics industry…
TELL US ABOUT LOGINEXT AND YOUR LOGISTICS AND SUPPLY CHAIN SOLUTIONS. LogiNext is a SaaS-based delivery management platform that enterprises across industries can use- F&B, Retail, CEP (Courier, Express & Parcel), FMCG and Transportation. LogiNext Mile is the flagship product used by brands to digitize, optimize, and automate logistical operations. Be it first-mile movement from a warehouse to a hub, middle-mile movement between hub to hub or the last mile from hub to the end customer, the LogiNext platform can be used to simplify endto-end logistics.
WHICH ARE THE KEY TECHNOLOGIES INFLUENCING THE LOGISTICS SECTOR TODAY? Several technologies like IoT, autonomous robotics, artificial intelligence, and machine learning influence the logistics sector. Areas like inventory management with capacity utilization, real-time visibility, automated order allocation with route optimization and delivery driver management are specific spaces where technology has brought in a transformation. All these supply chain technologies help digitise processes and automate manual processes to increase efficiency.
ACROSS THE DELIVERY CHAIN, THE LAST MILE IS THE MOST EXPENSIVE AND TIMECONSUMING SEGMENT OF THE JOB. HOW CAN TECHNOLOGY MAKE THE LAST MILE AFFORDABLE? The last mile accounts for about 53% of the entire delivery chain. There are several reasons for alterations,
and technology is aid with several reasons. Firstly, the end customer is not at home/failed delivery attempt: 5% of all orders fail to get delivered on the first attempt. Technology can support fixing this with a driver chat or real-time communication feature whereby a shopper can inform the driver or dispatcher that they aren’t home and provide an alternative time window. Secondly, many brands don’t clearly understand how many drivers are required for efficient deliveries. A hybrid fleet management technology solves this issue by forecasting demand, showing pre-order ETA, positioning drivers in areas of high order density and dynamic order allocation. Moreover, for a better customer experience, implementing technology can catalyse a better delivery experience – this can lead to customer retention and repeat orders as the system already knows customer preferences. Lastly, it suffices drivers to optimize delivery with a route optimization algorithm, as it takes several patterns like weather conditions, traffic conditions and customer preferences to assign and deliver orders the most optimum way.
WHAT IS LOGINEXT’S SOLUTION TO REMEDY HIGH LAST-MILE DELIVERY COSTS? LogiNext Mile is a DIY platform which can be set up in a matter of minutes. There are hundreds of APIs through which an enterprise can start using LogiNext on top of their existing systems without any hassle. Apart from this, the carrier integration marketplace is a unique feature of the LogiNext platform, which allows brands to add carriers at the click of a button, enabling them to deliver much more efficiently in the last mile.
WHAT ARE SOME OF THE CHALLENGES LOGINEXT FACES TODAY? One of the logistics sector’s biggest challenges is the lack of digitization and change management. We’re putting in much effort to highlight the benefits of technology and how it can create a positive impact on businesses. Digitization and sustainability are on the agenda of many enterprises, but more emphasis is required, and brands need to move quickly to stay in line with customer expectations and the realities of modern times.
COMPARED TO THE REST OF THE WORLD, HOW DOES THE MIDDLE EAST FARE REGARDING LOGISTICS AND SUPPLY CHAIN EFFICIENCIES? In our experience, the Middle East is one of the fastest-growing regions in terms of adopting technology in the supply chain. The North American market is the most developed, but the Middle East and APAC are catching up fast, especially with region-specific innovations. We expect the Middle East to lead the way regarding premium shipping.
IN YOUR OPINION, HOW CAN THE LOGISTICS SECTOR BECOME MORE EFFICIENT – ESPECIALLY AS WE’RE SEEING A HIGH DEMAND FOR SAME-DAY/ 60 MINUTES DELIVERY TIMES? Technology and automation are the way forward. Same-day delivery and quick commerce require a lot of information and data based on which efficiency can be improved. Forecasting demand, accounting for peak hour sales and fluctuations, advanced route optimization and the rise of dark stores are some trends paving the way for more efficiency in the logistics sector.
LASTLY, WHAT’S NEXT FOR LOGINEXT IN THE REGION? We have more than 20 enterprise customers in the Middle East region, and the number is growing fast. We have an office in Dubai, and we plan to double down our regional efforts to deliver more success stories. The Middle East is a key market for growth for LogiNext, and we’re actively hiring and increasing customer support in the region. We aim to grow at least by 100% in the coming year in the Middle East.
