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MENA’s warehouse robotic market is set to see a CAGR of 10.46% between 2020 and 2025, according to a Mordor Intelligence report. The Middle East is seeing increased demand for storage, as the region is largely dependent on food imports, which can be fulfilled by warehouses augmented with robotic systems, the report said.
There are numerous automation solutions being implemented at MENA warehouses, including conveyor systems — which handle the movement of goods from one location to another — reducing the need for manual labor in material handling, Talabat’s director of machine learning and algorithms Muhammad Hassouna told Enterprise Logistics. Other automation tools include automated storage and retrieval systems (AS/RS), which are robots that automatically store and retrieve items from designated locations in the warehouse, boosting handling, inventory management, and fulfillment, Hassouna also said.
Talabt sees the implementation of automation in regional operations as a matter of ‘when’ not ‘if’, with the outfit’s ‘talabot’ already handling some last mile deliveries at Doha’s Msheireb district, as well as Dubai’s Silicon Oasis, Hassouna added.
Talabat had previously partnered with Muscat Bay to kick off Oman’s first drone food delivery service, the company also launched Talabat AI, a ChatGPT-powered grocery shopping assistant, with the platform coming online in the UAE and slated for entry into other regional markets this year, Hassouna alaso said.
Other regional players are entering the foray: China-based Hai Robotics teamed up with UAE-based SPAN group to offer robotics and automation warehouse solutions to SPAN’s customers across the MENA region last year. UAE water producer Mai Dubai partnered with Switzerland’s Swisslog to roll out automated logistics systems several years ago. Swisslog also inked an agreement to provide Kuwaiti automated grocery platform Raha with an autostore for its first fully automated robotics-fulfillment center back in 2022.
The UAE is leading MEA’s automation drive, with the country leading the race for the adoption of automated technologies at warehouses, Swisslog Middle East spokesperson Rami Younes told us. KSA and South Africa are next in line, Younes added.
The automation of warehouses offers a range of benefits that can boost operational efficiency, productivity, and customer satisfaction, Younes explained. Benefits include better accuracy, space utilization, and inventory management, as well as faster order fulfillment. Automation also allows businesses to better use their workforce by reallocating resources to value-added tasks that require human expertise. Since automation generates vast amounts of data on warehouse operations, it can also provide insights which can be analyzed to develop more informed decisions, Younes also said.
Data from automated processes can go a long way: By leveraging data analytics and reporting capabilities, warehouses can zero-in on bottlenecks, optimize processes, and continuously improve operational performance, thereby raising competitiveness, he added.
But a lack of will and technical know-how are getting in the way of drives to automate warehouses in MENA, with the region short on skilled workers and professionals trained in operating and maintaining automated systems in the region, Younes added. Another sticking point involves time periods required to realize a return on investment (ROI) on hefty outlays for automated technologies. The payback period and overall ROI need to be carefully evaluated, with considerations to factors such as warehouse size, volume of operations, and the regional business context, Younes noted.
Investing heavily in human capital will ease implementation, with increased training programs for warehouse staff overlooking automated systems vital to help ease them into operating, maintaining, and troubleshooting the technology, Younes said. Conducting an in-depth analysis of current warehouse processes and infrastructure to understand specific needs, constraints, and requirements at individual warehouses is vital, he also highlighted.
Automation’s uptake is poised for rapid growth globally: “It is evident from various reports and findings that warehouse automation has been steadily growing and gaining traction over the past few years. Many industries including retail, healthcare, e-commerce, and automotive have recognized the benefits of automation, such as increased efficiency, reduced labor costs, improved accuracy, and enhanced overall productivity. As automation technologies continue to advance and become more accessible and affordable, their adoption is likely to accelerate” Younes told s.
A long-term trend: Automation in warehouses is poised to become a long-term trend in the industry on the back of lower automation costs and increased competitiveness creating economic advantages for companies, Younes said. Moreover, industries will see better returns as automation scales. However, the speed and scope of its adoption will vary across industries, firms, and regions. While some warehouses may fully embrace automation soon, others may adopt a more phased approach, depending on their specific needs, Youness added.
