Forbes Middle East

The Trends Here To Stay In Delivery And Logistics

Nour Suliman, CEO of DHL Express for the Middle East and North Africa, sets out the trends that will continue shaping the delivery and logistics landscape post-COVID-19.

- www.dhl.com

As the pandemic seems to be waning and the world focuses on life after Covid, the global delivery and logistics landscape is coming to grips with lasting changes. When the world went into lockdown last year, with borders closing and flights being grounded, Covid forced the industry to shift and adapt at a rapid rate. As pressures mounted, trends and innovation­s were accelerate­d to keep the world moving, from the overnight spike in demand for PPE and other necessitie­s, to the sharp rise in e-commerce and, more recently, the rollout of vaccines across the world.

Now, as we move towards a post-Covid era, there is indication that these trends, technologi­es, and innovation­s will be yielding sustainabl­e returns beyond the pandemic’s realm.

E-commerce And Last Mile Delivery

Amidst store closures, lockdowns and health concerns, e-commerce has been a big benefactor of the pandemic. As online shopping has increased in popularity, the new wave of consumers who turned to shopping online out of necessity, will likely stay now they have discovered the ease and convenienc­e of doing so. Likewise, retailers who pivoted online in order to survive will have enjoyed the benefits of reaching new customers, and will continue to invest in their online sales channels, even as stores reopen.

New last mile delivery services inspired by the pandemic and the need for safe, contact-free options have grown in popularity because of the flexibilit­y and convenienc­e they offer. ‘Buy online, pickup in-store’, curb side delivery, and parcel lockers, count among the latest options gaining traction world-wide. Last mile delivery services have also improved customer experience and increased brand loyalty. With customers spoilt for choice, expectatio­ns for innovation remain high.

Technology Innovation

Logistics companies expect technology innovation to deliver significan­t gains in productivi­ty and performanc­e going forward; they also believe it will enhance the entire customer journey. Automation technologi­es including AI and robotics are being used for operationa­l tasks such as picking and packing goods within warehouses, and for enhancing strategic planning and

forecastin­g. This automation is improving the overall efficiency of the supply chain and providing opportunit­ies to overcome cost constraint­s. Certain technologi­es were specifical­ly adopted during the pandemic to help enforce social distancing in warehouses. Robotic goods-to-person (G2P) systems, for example, move goods from one person to another – and they perform this task in such an efficient way that they increase productivi­ty, enhance warehouse management, and improve storage density. This technology is advanced and economical, and can easily be tailored to work in every kind of warehouse environmen­t in the future.

Sustaining Sustainabi­lity

Sustainabl­e logistics has gained momentum during the pandemic. Consumers are re-evaluating their shopping habits; they have become more conscious of the environmen­tal impact of their online shopping and are turning away from unsustaina­ble brands. There is a higher expectatio­n on businesses to play their part in reducing waste across their entire supply chains, be it through recyclable packaging, electric vehicles, or minimizing their carbon footprint. It is therefore inevitable that supply chains will increasing­ly prioritize environmen­tal operationa­l efficiency through waste reduction, responsibl­e sourcing, water efficiency, and the reduction of greenhouse gas emissions.

The B2B Transforma­tion

The B2B sector is going through intense transforma­tion. When the pandemic hit, companies from Europe and America suddenly could not get their goods to China, which was severely impacted. As a result, the need for urgent digitaliza­tion of B2B supply chain processes to make them more resilient and adaptable, quickly became evident. Today, the way B2B sales interactio­ns take place is definitely changing; the sector is taking on a more digital approach, driven also by a pool of young and digital-savvy talent that is taking on key decision-making roles. Against this backdrop, those B2B businesses that don’t invest in e-commerce channels will quickly find themselves left behind.

Data-led Approach

The unpredicta­bility of the pandemic highlighte­d how ill-equipped some supply chains were to cope with disruption­s to normal procedures. It also reinforced how a data-led approach is crucial for supply chains to become more flexible and resilient.

Supply chains should be driven by data; the faster the data, the more efficient the planning processes can be for complex operations such as cross-border deliveries. Data enables full visibility and transparen­cy of the movement of goods. This means an unexpected change would no longer be a disaster for the delivery journey, but rather an opportunit­y to reroute the flow of goods across the world and still arrive on time.

Enhanced data capabiliti­es can also give customers a greater and more flexible range of tracking options, while advanced analytics allows links in the supply chain to draw an infinite number of insights and turn them into actionable opportunit­ies.

5G is powering this digital revolution, making data connection­s faster and more accurate, and transformi­ng the logistics industry’s capabiliti­es and efficienci­es as a result.

Diversific­ation Of Global Supply Chains

For decades, globalizat­ion has enabled cross-border trade to flourish, yet trade disruption­s brought about by the pandemic have prompted business leaders to rethink the vulnerabil­ities of their global supply lines – namely geographic­al factors. In the early weeks of the pandemic, China, which is considered the hub of world manufactur­ing, implemente­d strict border restrictio­ns, causing delays for commerce supply chains across the world. Those businesses affected struggled to compete for alternativ­e suppliers, and some were even forced to reduce or stop production. Many have since been focusing on de-risking strategies to reduce their reliance on manufactur­ing in one region, de-centralizi­ng and spreading their production across less risk-averse countries, or regionaliz­ing closer to home.

Whilst some Covid-19-related trends and innovation­s may taper off in the future, the logistics and delivery business will continue to future-proof their supply chains through data and technology innovation. Not only will this optimize efficienci­es and reduce costs, but just as importantl­y, it will improve the customer experience and create invaluable loyalty.

“Trade disruption­s brought about by the pandemic have prompted business leaders to rethink the vulnerabil­ities of their global supply lines.”

 ??  ?? Nour Suliman, CEO
Nour Suliman, CEO
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