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T
hanks to customer expectations, the
supply chain and logistics industry
have evolved significantly over the
past few years. Brick and mortar processes
of delivering goods and services are just not
good enough. Hence, the need surfaces to
deploy technologies that empower business
to keep up with customers.
In 2018 we witnessed significant
advancements in the supply chain and
logistics field. But is it enough? No, there is
still a plethora of challenges that need to
be addressed.
In Middle East and Asia (MEA), small-scale
restaurant owners are finding it difficult to
compete with food aggregators that have
no intention to generate profits. In cities like
Dubai, inaccurate addresses remain a big
challenge. In addition, improving last mile
delivery to boost customer experience will
continue to be a prominent trend.
So, now we’ve entered 2019, let us quickly
glance through the four major supply chain
and logistics trends that are going to impact
businesses in the MEA region.
“
The question is how does a restaurant
compete with these aggregators who are
delivering food at cut-throat prices? There
is no easy answer to this but adopting an
advanced supply chain and logistics platform
can surely solve a lot of problems. THE ONLY WAY
TO BE ON TOP OF
THE ‘CUSTOMER
EXPERIENCE’
TREND IS TO
DRASTICALLY
IMPROVE LAST-
MILE DELIVERY
WITH ADVANCED
SAAS-BASED
LOGISTICS AND
ECOMMERCE
PLATFORMS.
Take this case in point. A pizza joint in Dubai
wanted to partner with a food aggregator
to scale deliveries. Unfortunately, it never
worked out because as the latter was
insisting on credit card payment options on
their platform and demanded 37% of total
transaction value. The only way out for the company was
to have a supply chain and logistics
management platform, that will make
delivery efficient and cost-effective.
Leveraging such an advanced platform, the
Pizza joint built its own proprietary digital
Adoption of advance supply chain
and logistics platforms
In the Middle East region, revenue from the
food delivery market is expected to grow at
an annual growth rate of 13.6%, resulting
in a market volume of US$2,804 million by
2023. Hence, it’s not surprising that investors
will continue to fund food aggregators. Not
worried about generating profits, these food
aggregators are seldom known for playing
by the rules and conflict of interest between
these aggregators and restaurants owners
are common.
www.intelligentcio.com
Gautam Kumar, Co-Founder and COO, FarEye
INTELLIGENTCIO
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