There is no space or sector that technology hasn’t disrupted. And supply chain and logistics isn’t far behind. Not only that, but the market is also fast growing as well. According to a Mordor Intelligence report, the Middle East and Africa Freight and Logistics Market size is believed to touch $163.57 billion in 2024 and over $222.63 billion by 2029. This records a compounded annual growth rate (CAGR) of more than 6.3 per cent.
Discussing the implications of technology in the space, Andre Luecht, Global Strategy Lead -Transport, Logistics & Warehouse, Zebra Technologies, spoke about what steps can be taken by companies, and what are the next stages of development.
Zebra helps organisations monitor, anticipate, and accelerate workflows by empowering their frontline and ensuring that everyone and everything is visible, connected and fully optimised. Our award-winning portfolio spans software to innovations in robotics, machine vision, automation and digital decisioning, all backed by a +50-year legacy in scanning, track-and-trace and mobile computing solutions. With an ecosystem of 10,000 partners across more than 100 countries, Zebra’s customers include over 80% of the Fortune 500.
edge/: How has the logistics sector evolved and grown in the MENA region? How has the use of technology impacted and brought up the changes and shifts in the space?
Andre Luecht: There’s a focus on making logistics and warehousing sustainable and reducing carbon emissions with electric vehicles, smart warehouses, route optimisation, and eco-friendly packaging. According to Zebra’s 2023 Global Warehousing Study, 77 per cent of warehouse decision-makers are focused on reducing emissions and waste while eight in ten warehouse decision-makers say it’s important their warehouse technology solutions maximize battery life.
Another focus is the need to digitise and modernise the region’s major shipping port operations across UAE, KSA, Oman and Bahrain as they are major logistics hubs. Companies are very mindful of the disruption in the Panama Canal and closer to home in the Red Sea, putting delays, increased costs and security top of mind.
We are also seeing developments across warehousing operations, logistics related to e-commerce, and last mile delivery services. There is a need for more warehousing space to meet growing demand and technologies to make operations visible, connected and optimised.
For example, Aramtec, a prominent UAE premium food service distributor, will deploy a warehouse automation solution to further digitise and enhance its warehouse operations, aiming to increase productivity by around 14 per cent. Rashideen Egypt for Trade, one of Egypt’s major fast moving consumer goods (FMCG) distribution companies, increased its fast-moving consumer goods sales and distribution performance 21 per cent using mobile printers, tablets and handheld computers.
edge/: What are the key technological trends you see in the logistics and supply chain space in the region?
Andre Luecht: It is perplexing how the logjams of the last several years happened. Some blame poor planning, but it’s poor communications and lack of visible data across the supply chain. There are technologies that can tell everyone how long it should take and how long it is taking to get goods from the first mile through the last.
Pinpointing the exact location of every shipment in real time, it becomes easier to harmonise labour with demand and provide advance notice to customers about impending arrivals.
Supply chain leaders will have to get intelligent technologies online as fast as solution providers can support the deployments – including AI/machine learning, RFID, and electronic data loggers. Many transport and logistics companies have already been piloting technologies at the loading dock that show them how to improve trailer and container utilization.
And platforms like FourKites that give an “air traffic control” type view of supply chain movements will become mission critical. Those who are using this technology will likely expand their application to other business functions or geographic locations.
Transportation and logistics are increasingly focusing on B2B2C or straight B2C as manufacturers, distributors, and retailers work to get goods to customers at record speeds. Even if there were enough qualified drivers, pilots, and loaders, there are still only so many planes, trains, trucks, containers, etc. on this planet right now. Ship-from-store, shipping from manufacturing or distribution (drop shipping), and new modes of transportation to deliver to the consumer (cargo bikes, electric vehicles,) will augment the traditional van-based, last-mile delivery landscape.
edge/: With generative AI and Industry 4.0 being the hot topics, how do these technologies transform the logistics sector?
Andre Luecht: These are early days, when it comes to deploying generative AI for real life use cases in transport and logistics. I also think it’s important to use generative AI in ways that augment and add value to a company’s current platforms and technologies where possible, rather than seeing it as a siloed magic bullet. I’ve had discussions and read reports looking at how generative AI can assist with logistics network design, route optimization for robotic, drone and autonomous vehicle delivery, global trade optimization, supplier management and sourcing and contract analysis. There are other types of AI that will modernise and improve logistics operations.
edge/: How is Zebra working with technology to bring in shifts in the logistics sector?
Andre Luecht: We have recently launched the ultra-rugged MC9400 mobile computer series. Equipped with public and private 5G (data only) and Wi-Fi 6E connectivity, the MC9400 Series is designed to enhance workflow efficiency and device security across the warehouse and transportation and logistics industries. We also launched our new FXR90 ultra-rugged fixed RFID reader, providing maximum visibility even in high-volume, rugged environments like a warehouse.
The FXR90 reader minimizes shrink and loss with the ability to identify and track where inventory losses are occurring so corrective actions can be taken to prevent future losses. With integrated wireless capabilities, including Wi-Fi and 5G, it also increases inventory visibility to maximize accuracy without an expensive infrastructure investment.
These are new products alongside our existing range of mobile computers, tablets, printers, RFID solutions and supplies which connect and optimise workers, assets, and inventory in logistics.
edge/: Traditionally, Logistics has always been believed to be slow in adopting technology, has that shifted? If yes, how?
Andre Luecht: The option to be slow to adopt technology is really a thing of the past. There have been so many disruptions to supply chains in recent years, that it’s essential to invest in solutions that make workflows more efficient and automated, chains more visible and predictable, and tools that make jobs better for front-line workers.
Zebra’s Global Warehousing Study tells us that many warehouse decision-makers (76%) say they are under pressure to improve performance while adjusting to shifting consumer e-commerce demands. Inaccurate inventory and out-of-stocks continue to significantly challenge productivity according to nearly 80% of warehouse associates and decision-makers.
In fact, both groups—82 per cent of associates and 76 per cent of decision-makers—acknowledge they need better inventory management tools to achieve better accuracy and determine availability. And a significant 91% of decision-makers are addressing this need, citing plans to invest in technology to increase visibility across the supply chain by 2028.
Many of the solutions needed come in the form of technology hardware and software. Zebra’s global Warehousing Vision Study tells us that 58 per cent of warehouse decision-makers plan to deploy RFID technology by 2028 which will help increase inventory visibility and reduce out-of-stocks. Over the next five years, a majority of warehouse decision-makers plan to deploy fixed, passive or handheld RFID readers and fixed industrial scanning solutions that can better track assets, workers and goods throughout the warehouse environment.
edge/: How do you leverage AI and predictive analysis models, how does the sector use these models?
Andre Luecht: Supply chain managers need accurate, timely, high-level views of their inventory and chain with 360-degree platforms that connect, analyse and leverage data across the chain. These platforms provide predictive insights and analytics for road, sea, air, rail and last mile routing and allow transport and logistics teams to build custom solutions with APIs and leverage AI assistants for problem identification and solving.
For example, if a delayed arrival of an empty truck is reported, a loading dock manager can turn to their workforce management solution to reallocate labour. They may have four workers they can send to help load or unload another temperature-sensitive shipment to minimize exposure to warmer (or colder) temperatures.
In another scenario, the platform may be able to reconcile weather reports with anticipated transit routes to recommend a delayed departure. The shipment may be late, but it’s better to be late than throw away pallets of roses on arrival because it was temperature compromised.
Additionally, retailers and consumer packaged goods companies can leverage Zebra’s Workcloud Demand Intelligence Suite which uses both internal company data and external data, including weather and local events, as demand drivers that can forecast more accurately and granularly using AI, providing better inventory decision-making power to the business.
From planning through execution, companies predict, shape, and execute demand by connecting decisions, removing uncertainty, and doing more with less.
And at a device level, there is software that ensures mobile computers, batteries, and remote and stationary printers operate smoothly with a single, comprehensive view of device health and utilization—no matter where they are located across operations.
An application, like Zebra VisibilityIQ Foresight, can quickly processes data points from millions of devices every day and applies machine learning techniques to generate actionable insights with historical trends to run business operations more efficiently, providing operational insights, current state health, and predictive intelligence to prevent issues and empower informed decisions.
edge/: What are Zebra’s future plans?
Andre Luecht: Zebra will keep focusing on our customers and partners, solving problems, digitising operations, and bringing innovative solutions to market. And we will be attending and hosting regional technology and industry events throughout the year.
