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Regional economies are looking to use innovative tech to maintain resilience amid supply chain disruptions, according to a recent annual report (pdf) by DP World supported by Economist Impact. Although traditionally used as a supplementary tool, technology like AI and blockchain is now being used to reconfigure supply chains and MENA firms can stand to benefit from the emerging tech in the logistics sector.
Behind the numbers: The report’s research surveyed 3.5k senior executives globally across a range of industries to gather information on trade and supply chain practices in addition to forecasts on the year ahead. Regions included North America, Europe, Asia Pacific, the Middle East, Africa, and South America.
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The World Trade Organization (WTO) expects MENA’s exports to grow some 3.8% in 2024, but geopolitical challenges are hindering trade in the region. The war on Gaza has worsened supply-chain disruptions in the Red Sea — a key shipping route for Saudi and UAE trade with Europe. Consequently, there has been upward pressure on shipping rates due to maritime route diversions.
How can new tech work around supply chain disruptions? In addition to supply chain reconfiguration and expansions into new markets, robotics and automation have been proven to enhance supply chain management by reducing long-haul expenses, boosting work productivity, and reducing errors. MENA economies can benefit from integrating block chain technology to improve transparency, as they can better track goods and detect fraud.
AI by the numbers: 39.6% of business leaders worldwide indicated that they had integrated AI in optimizing customer experience in 2023, 34.8% adopted the tech in forecasting demand, and another 34.6% in advancing inventory levels, according to the report. 34.5% used the tech in identifying potential supply-chain disruptions. The scale of the developments indicates that AI has a profound impact on the operational efficiency of business and supply chains.
What about blockchain? Blockchain has also been used to enhance accessibility and efficiency of supply-chain management. Almost 58.9% of businesses deployed blockchain technologies in 2024, and 27.5% planned on using it, according to the report. Blockchain helps detect fraud and errors, streamline operational processes, and reduce costs.
Tech in KSA and UAE: Almost 35% of companies are adopting automation and robotics for boosted efficiency, 31% are planning to use AR/VR for troubleshooting and repairs, 26% are opting for 3D printing customization and decentralized production, DP World says.
A boon for productivity: Emirati food supplier Aramtec deployed a warehouse automation system by UAE-based digital solutions provider Zebra to meet growing customers needs and changes in its supply chain. The move to automated systems — deployed at Aramtec’s distribution centers — aimed to increase its worker productivity by 14%.
Tech in Egypt: About 33% of firms in Egypt plan to integrate advanced automation for logistics efficiency with 28% seeking to adopt blockchain for traceability and 23% looking to use 5G to increase connectivity, speed, and reliability, DP World says. “At the Port of Ain Sokhna, our technology has improved truck turnaround times by 35% and vessel productivity by 16%. We’ve also introduced multi-channel payment solutions and customer self-service applications for real-time data access, enhancing cargo control and visibility,” DP World for North Africa & the Indian Subcontinent CEO Rizwan Soomar told Egyptian news outlet Al Alam Al Youm in an interview last March.
