Risks are inevitable when it comes to the supply chain, whether delayed cargo, or trade wars among other uncertainties
Improved cross-border trade, a surge in digital payments and a robust tech ecosystem are driving a burgeoning e-commerce market in the MENA region. According to estimates, the regional e-commerce market size is expected to reach $57 billion in 2026, notes Olivier Laurent, Country Manager Abu Dhabi and MEA Regional Fashion & Luxury Sector Head, DHL Global Forwarding.
This represents a powerful opportunity for local businesses to rethink their overall sales and distribution strategies to keep up with the anticipated boom. But even as tech advancements accelerate e-commerce, supply chain challenges continue to hamper growth.
The strain of achieving perfect order fulfillment, including return options, flexible delivery offerings, and instant track-and-trace capabilities, is putting enormous pressure on retailers and supply chains.
Many third-party logistics providers have also struggled to keep pace with technological advancements, leading to reactive logistics rather than a strategic, proactive approach to supply chain management.
Inevitable
Risks are inevitable when it comes to the supply chain, whether delayed cargo, trade wars, raw material shortages, changes in weather patterns, or economic uncertainty. However, new technologies and delivery solutions can help predict and plug gaps, while improving productivity and the customer experience.
The latter is a growing pain point as people expect a seamless e-commerce and online purchase experience, including same-day delivery, customization, real-time tracking, flexible omnichannel ordering, and receipt and return capabilities. Companies are bogged down with developing a supply chain that not only meets these expectations but is able to scale rapidly to provide the same or a better level of service as their business grows.
The digital route for improved CX and operations
A digital supply chain uses the latest technologies, such as big data analytics, automation, cloud computing, blockchain, robotics, Internet of Things (IoT), and more, to integrate all operations into one intelligent system. This means significantly better insights to develop highly efficient processes.
Businesses will be able to enjoy real-time visibility across the chain, allowing them to respond quickly, flexibly, and more accurately to changing demand or supply situations. Furthermore, the integration of powerful, new innovations, such as predictive analytics and machine learning, offers exciting opportunities for digital supply chain managers to develop new approaches to product distribution, such as predictive shipping – if they are willing to make the shift.
Unfortunately, many supply chain managers still struggle to see in the value in building a digital supply chain that integrates warehouse, transportation, demand planning, procurement, order fulfilment, and other typically siloed tools, resulting in a more efficient data exchange.
Harnessing the cloud
Cloud-based service applications and application programming interfaces (APIs) are the foundation of a robust digital supply chain. They fuel real-time data processing and cloud-based platforms needed to run it. Cloud supply chains integrate every piece of a global logistics management system into one cloud-enabled dashboard, where each link in the chain is recorded, coordinated, and orchestrated.
Meanwhile, APIs are software protocols that allow applications to communicate and exchange information. A combination of both offers the visibility and intelligence needed to optimize routes and relationships, reduce waste and environmental impact, and adapt to demand and disruptions.
For the logistics industry and supply chain managers to build a truly digital supply chain, they will need to rethink the entire network – from design to monitoring and execution. As MENA businesses ride the next wave of e-commerce, they will need to look at the supply chain more holistically and fully understand it across a product’s entire lifecycle.
By deploying cloud-based supply chain management solutions, regional brands will be able to improve and accelerate automated data exchange and monitor processes, which will in turn help predict risks, mitigate disruptions, and fuel e-commerce.
