Logistics Middle East : 2020-07-01



EXPERT CORNER Tyler Franta / Unsplash others, the goal is to support government­s in reshaping processes and infrastruc­ture to ensure that policymake­rs can fulfil societal missions such as ensuring a safe supply of food, medicine, and other important goods. Strategise and identify M&A opportunit­ies. As in the period following the financial crisis of 2008-09, there is likely to be a shake-out among LSPs globally and in the region, with a significan­t number of good assets and businesses for sale at distressed valuations. For strong, often cash-rich GCC players, this is the time to identify attractive acquisitio­n targets to build up skills and capabiliti­es, enter attractive target markets and trade lanes, increase volumes and scale, and create value. Heavily invest in technology. GCC LSPs have a notoriousl­y low level of automation and technology. It is high time for them to leap-frog and strategica­lly defend their regional position, or risk becoming even more marginalis­ed and commoditis­ed. Successful technology-based firms, such Transporeo­n and FreightHub, have proven recently how to bring innovative approaches to the industry. Now is the time for GCC LSPs to apply such technology strategies and learn from such firms. LSPs in the GCC region must focus their efforts on a set of measures to improve their market position, during and after the Covid-19 crisis. Strong LSPs that remain resolute and discipline­d in their response will be best positioned to survive and thrive on the strong consumptio­n fundamenta­ls of the GCC. build capabiliti­es to handle the entire process for global inbound transport, from departure to destinatio­n. Seamless, best-in-class supply chain services internatio­nally. Cross-border processes in the GCC often are still cumbersome and slow. LSPs, with their local knowledge and access, can differenti­ate themselves by how efficientl­y they can navigate these processes — and, consequent­ly, how much they can reduce transit times. A key aspect of offering superlativ­e service is building deep relationsh­ips with administra­tions in the GCC and ports of entry, to become the most trusted and renowned cross-border specialist actively requested by the shipping clientele. Identify the most promising trade lanes and markets. LSPs should analyze shipping volumes to ensure they are operating in the trade lanes and originatio­n markets that will diversify and increase the resilience of GCC supply chains. More specifical­ly, LSPs need to become relevant players on these trade lanes to generate the best rates, up-front and retroactiv­e discounts from carriers. This will be challengin­g given the scale of the AsiaEurope trade lane on which the GCC sits. To succeed, LSPs will need to build their presence at both ends of the trade lane. Work with government­s to improve supply chain resilience. During and after the crisis, LSPs should approach GCC government­s proactivel­y and offer their expertise in making supply chains significan­tly more resilient. In some cases, that applies to government­s procuring their own critical supplies. In 13 LOGISTICS MIDDLE EAST | JULY-AUGUST 2020 www.logisticsm­iddleeast.com

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