Business News
Warehousing & Logistics: Minimising disruption to maximise growth
Sep
A report released by Dubai Chamber in April this year reveals how the UAE logistics and warehousing sector could play a critical role in global efforts to overcome the Covid-19 pandemic. The country’s well established air cargo routes, excellent maritime freight connectivity and a mature warehousing and logistics network are helping global communities weather and push back despite the wave of restrictions put in place because of the prevalent health scenario.
Indeed, the UAE warehousing and logistics sector is strong and resolute, indicated by yet another report released by Ken Research last year. While presenting the market outlook for the nation’s warehousing and logistics sector till 2025 it talks about the strong growth trajectory that the industry has enjoyed in the period 2013-2019, excellent results that are also helping the sector weather the storm that arose from the global pandemic.
Local players such as international freight forwarder and logistics provider, Freightworks, based out of Dubai, have seen business remain as strong as it was during the pre-pandemic stage.
Sectors in recovery mode
Sean Bradley, Managing Director, Freightworks, says, “Our warehouses were overloaded with inbound orders prior to Covid, and the global shutdown meant few outbound movements, so the warehouses remained full. In addition Dubai Express/ Freightworks has remained busy throughout, specifically with medical and humanitarian equipment and more recently with our relocations division working 24/7. Revenues since March were significantly down but July performance this year matched July 2019 results, so certain sectors are slowly recovering.”
Our warehouses were overloaded with inbound orders prior to Covid, and the global shutdown meant few outbound movements, so the warehouses remained full. In addition Dubai Express/ Freightworks has remained busy throughout, specifically with medical and humanitarian equipment and more recently with our relocations division working 24/7. Revenues since March were significantly down but July performance this year matched July 2019 results, so certain sectors are slowly recovering.
While warehousing in the UAE saw steady growth, especially with the excellent work being done by the nation’s free zone bodies, in terms of logistics, the courier, express and parcel market saw exponential growth in the period as well, thanks to technological advancements, more automation within the sector and increasing mobile penetration. These factors, including a spurt in new trends resulting from the aforementioned pointers, are only expected to bolster, support and help the sector expand.
Finally, though, it will be supply-chain resilience that will play a critical role in ensuring if companies engaged in global trade can weather the challenges posed by the pandemic in the long run. A webinar hosted by Abu Dhabi Ports in July this year and attended by global bodies representing the logistics and warehousing sector as well as food and banking, from nations including the US and China, the UK, Saudi Arabia and India, also saw the launch of a white paper titled Ensuring Supply-Chain Resilience in 2020 and Beyond.
Put together with the help of research and findings from participants of the webinar as well as global research bodies, the white paper revealed how vital supply-chain resilience would be to ensure sustainability of any kind of business.
Through our research, we have validated that companies which have invested in the requisite assessment and preparation phases of supply-chain risk mitigation have been able to meet the challenges presented thus far, and will be able to continue to do so in the near term.
Speaking to local media, Robert Sutton, Head of Logistics Cluster, Abu Dhabi Ports, said: “Through our research, we have validated that companies which have invested in the requisite assessment and preparation phases of supply-chain risk mitigation have been able to meet the challenges presented thus far, and will be able to continue to do so in the near term.”
The global logistics experts also shared their views and experiences on how companies can cope with external trade shocks, and even realise competitive advantage during the unprecedented logistical turbulence brought on by Covid-19.
Karim Shariff, UAE-based Partner at Bain & Company, a leading global management consultancy that contributed to the white paper research, while speaking to local media said, “I would stress that when it comes to supply-chain resiliency, the most important factors to consider are adapting to the demands of customers, building an agile network, and having an empowered organisation with clear risk management across all levels.
“Finally, data is paramount. We are living in an age of an abundance of data, however, many companies aren’t able to make sense of it and focus on the wrong information, which leads to flawed insights and actions.”
Cathy Morrow Roberson, US-based Founder and Head Analyst at Logistics Trends and Insights said: “Every day, supply chain companies must navigate a world of risks. To do that successfully, requires flexibility and the agility to respond quickly to unexpected disruption. It is crucial that companies have the right technology, tools and partners to help them manage and mitigate both known and unknown risks. With the right systems in place, businesses can increase their chances of minimising disruption to trade and maximising success in the marketplace.”