The need to leverage AI and automation, best practices for balancing cost and customer experience and insights on crafting driver-centric logistics processes were some key discussion points at the virtual Logistics Tech Summit.
The first-ever mega virtual Logistics Tech Summit saw the participation of more than 500 supply chain executives from across the world, including the Middle East, India, Southeast Asia, and Europe, and multiple industry stalwarts as speakers from organisations like Emirates Post, Jumia Group, Myntra, DTDC Express, Zepto, Meesho, Wellness Forever and more.
“Competition in the on-demand delivery market in the Middle East is escalating. To stay ahead of the curve, businesses need to focus on using automation, AI, ML, predictive analytics, and resilient, and profitable delivery operations,” said Soham Chokshi, Co-founder and CEO, Shipsy.
TRANSFORMATION
Talking about the need for logistics transformation to address growing global delivery demands, Apoorva Kumar, Senior Vice President – Logistics Services, Jumia Group, highlighted the importance of “disaggregating” logistics operations to identify areas that can be optimised.
“We have been managing customer clearance using logistics partners. But recently, we started working with country-specific postal authorities to clear customs, and they are doing an incredible job. Once we started disaggregating our logistics operations, we realised that postal makes a lot of sense for us,” said Kumar.
DEPLOYING AI TOOLS
Inaccurate address is a critical challenge in the Middle East that advanced technologies can help address. A report highlights that last-mile delivery failure rates range from 15% in the UAE to 40% in Saudi Arabia leading to poor customer satisfaction and lost revenue. This means that more than $7.42 billion in e-commerce revenue in the Middle East could be affected by inaccurate addresses.
“Businesses can buy off-the-shelf technologies that enable route optimisation, help manage volume bounces, and get that extra 2-3 per cent logistics efficiency while keeping customer experience intact,” said Steve Stanton, Chief Business Officer – Parcels & Express, Emirates Post. He added that modern logistics management tools like “dynamic routing” can be used to crack the inaccurate address problem, a challenge that has the “biggest cost impact.”
LEVERAGING DATA
According to a recent report, data analytics is the top priority for 45% of global supply chain professionals. Businesses across the Middle East and South Asia are increasingly using data science to optimise logistics costs and boost competitiveness.
Abhishek Chakraborty, Executive Director – DTDC Express, highlighted the significance of “data science” when it comes to accurately understanding “where to establish hubs,” “what kind of capacity to envision,” and “what kind of trucks best suit a job.” He highlighted that today 65-70 per cent of decisions they take for their supply chain network and fleet are powered by data science. He also pointed out that even as the cost of operations gradually increases, data science has been enabling DTDC to stay highly competitive.
