Logistics Middle East : 2020-07-01



EXPERT CORNER THE SIX STEPS TO RECOVERY Dr Ulrich Koegler and James Thomas, partners, Maha Raad, principal and Susie Almasi, executive advisor, with Strategy & Middle East, part of the PwC network, provide their idea of a recovery plan Chuttersna­p / Unsplash supply and demand to maximize revenue and margins. They should also agree new up-front and retroactiv­e volume discounts with under utilised carriers. Internally, LSPs need to drive costs down to the bare minimum— reducing discretion­ary spending, road haulage expenses, and deploying off-the-shelf technology solutions to improve business processes. Similarly, LSPs must be attuned to the viability of their customers and carriers alike—many of which could face significan­t financial challenges. The expression “cash is king” applies. Accordingl­y, LSPs should adjust their payment requiremen­ts, shortening terms and / or requiring cash for some customers, and choosing not to work with others. Longer-term, LSPs will need to develop and execute new strategies in the post-Covid-19 world. Such strategies should contain six critical measures. Grow beyond local operations. Many LSPs in the region operate as local agents, limited to handling the final stage of a shipment into the GCC. To capture more value, they need to expand and To emerge from this crisis, LSPs in the region need a discipline­d and tactical approach to stabilize their business amid the crisis, along with longer-term strategic measures to prepare for the coming recovery. In the short term, LSP leadership teams need to become highly agile and nimble in their operations, enabling them to respond effectivel­y to rapidly changing marketing conditions. For example, given increased volatility in freight rates, LSPs should look at realtime 12 | LOGISTICS MIDDLE EAST JULY-AUGUST 2020 www.logisticsm­iddleeast.com

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