Delivering the ‘Digital Journey’
This means that much of the Gulf operates as a destination point for cargo with insignificant quantities of value-add or manufacturing operations. This adds to the complexity, as you have comparatively lower levels of expertise operating or managing supply chains in this part of the world when compared to Europe, the US and even East and South-East Asia. Finally, logistics is a derived demand and there simply is not the population density in the GCC as there is in many parts of the world. To optimise any supply chain, volume and scale are key factors. GSC: How is the SC&L industry faring in the region overall? RK: It is always fascinating to see how anything develops in the region and the Logistics and Supply Chain industry is no exception. The sheer willingness to invest and develop something from scratch in this part of the world is second to none. Coupled with prudence and resources, the only way is up. GSC: What is the outlook for the industry in the region for 2019 going forward? RK: Overall the outlook is positive. There is the global slowdown to contend with but we do not expect this to be a full on economic recession. The upside for growth given the exponential growth in
e-commerce will be a significant contributor and there is also the opportunity for some countries in the region to become a regional and global e-commerce hub. Given the access the region has to technology and expertise there is also the opportunity to leap frog other parts of the world and capitalise on much of the benefits of Industry 4.0. GSC: What are the opportunities and challenges for the generic industry globally? RK: The opportunity is that we are starting from a very low base in terms of both volumes and expertise so for much of the region the only way is forward. The challenges are the lack of expertise, be it foreign or domestic. There are many players in the market but to reiterate the point made earlier, this is a destination location and therefore the level of expertise is not readily available. Globally, supply chain and logistics is a derived demand so in a sense we are not masters of our own destiny. GSC: How are the trade / tariff wars between the United States and China and separately the looming Brexit crisis impacting the industry? RK: Every logistician should always be looking at ways to optimise the efficiency and effectiveness of his or her Supply Chain. The sad fact of the matter is that we
seldom do this. We are too caught up in day-to-day operations and also do not want to risk modifying or augmenting something that currently works. The risk is too high and the individual reward not attractive enough to make us want to do that. The US-China trade war and Brexit is however forcing us to do just that so in a way we should be “thankful” that it is forcing us and our managements to re-look what we do and find a better, more profitable alternative. GSC: What implication are new and sophisticated technologies having on the industry? RK: The opportunity to leapfrog and leverage the benefits of Industry 4.0 is the carrot for professionals and entrepreneurs. If executed correctly and with prudence it will allow logisticians in the Middle East to steepen our learning curve and in a few years be considered world class in terms of Supply Chain and Logistics expertise and capability. GSC: What are you hoping to attain at LogiSYM 2019? RK: We need to broadcast the need to deliver on the digital promise. Not just to espouse concepts and theories but to actually get the fundamentals right and implement them across our organisations and in the interrelated supply chains we manage or influence. GSC: What is your message at this landmark event? RK: Industry 4.0 offers huge opportunities for our industry and Dubai and the Middle East overall is in a great position to leverage and capitalise on this. GSC: What is your vision for the industry for the short and / or long term futures? RK: In the short term we want to drive home the message to work and build on robust management and supply chain principles. An old message but one that still needs to be driven home as very few companies actually have this in place. Also, we need to pay more attention to ESG (Economic, Social and Governance) considerations and adopt responsible practices wherever possible. In the mid-term, seeing the role of women and locals from this part of the world playing a more significant role in managing supply chains in this part of the world and in the longer term adopt the opportunities that present itself through digitalisation and industry 4.0. OCTOBER 2019 39