The presentation was given at Chartered Institute of Logistics and Transport and Emirates Supply Chain forum (Dubai, UAE). It talks about the upcoming trends in logistics and supply chain industry in GCC after the recession, the impacts and strategies.
PowerLogistics Asia 2014 - – Geographical Importance for Shipping, Kadukanna...
Trends in Logistics and Supply Chain in GCC
1. LOGO SP Jain Center of Management
11th December, 2010
CILT – ESCF forum
“Trends in Logistics a nd Supply Cha in Industry
in GCC”
ANKUR DAFTUAR ANUJESH SINGH GAURAV CHAWLA
MBA: Global Logistics and MBA: Global Logistics and MBA: Global Logistics and
Supply Chain Management Supply Chain Management Supply Chain Management
Under the guidance of Dr. Rajiv Aserkar
(Professor, Logistics and Supply Chain)
2. AGENDA
Strategic Location of GCC
Global Logistics Overview
GCC Logistics Overview
Impact of Recession
Drivers of Change
Future Trends
What’s in the store!
3. The Strategic Location
Gateway to a market of over 3 billion consumers !!!
67% of the world’s population is within 8 hr flight
4. Global Overview
Global 3PL revenue from fortune 500 companies by industry
Consumer Products
2%
Other
Healthcare Industrial 3%
3% 3%
Food Groceries
6% Global Logistics Size
(as of 2009):
US$ 1 trillion
Automotive
29%
Growth rate:
Elements 3 – 10%
16%
Technological (Hi-
tech) Global 3PL Revenue:
Retailing
22%
$ 210 billion (2009)
16%
Source: OECD, Armstrong and Associates, Mercer Management Consulting, World Bank, Transport Intelligence
5. GCC Logistics overview :
Logistics Performance Index
Ability to track and
LPI Rank trace consignments
5
4 Competence and
UAE : 24 Overall quality of logistics
3
serrvices
2
Bahrain: 32
1
Kuwait : 36 0
Quality of trade and Ease of arranging
transport-related competitively priced
Saudi Arabia : 40 infrastructure shipments
Qatar : 55
Frequency of ontime Efficiency of customs
delivery clearance process
Oman : 60
UAE Qatar Bahrain Saudi Arabia Kuwait Oman
Source: www.tradingeconomics.com Scores: 1= Low... 5= High
6. GCC Logistics overview :
UAE and LPI : Elements of the vision
State‐owned enterprises to lead & insp
ire by investing in mega projects
High government spending on infrastr
ucture
Public sector excellence in service an
d operations
World‐class govt. performance
Government:
A key driver
High quality infrastructure Trade & transportation hub
Pro‐business regulatory policies Tourism & MICE prime destination
Highly skilled labor Knowledge economy, based on ed
ucation, Higher Colleges, Media, Info.
Free‐zones & economic clusters &Communication Tech, and financial
sectors
Attractive invest- Focus on Core
ment environment economic factors
7. GCC Logistics overview :
GDP growth
Read GDP growth rate : GCC
20
Bahrain Kuwait Oman Qatar Saudi Arabia UAE
15
%age growth
Strong
growth
10 potential
5
0
2005 2006 2007 2008 2009 2010 2011 2012
Year
-5
Source: International Monetary Fund
8. GCC Logistics overview :
Global Competitiveness
37
Bahrain
Factors considered
35
• Institution • Labor market
Kuwait • Infrastructure • Financial Market
• Macro economic • Technology
environment • Market Size
34
Oman
• Health and education • Innovation
25
UAE
21
Saudi 17
Qatar
Source: Global Competitiveness Report, 2010, World Bank
9. The enabling trade Index : GCC
23 37
53
18 42 40
16 24 22
2008 2009 2010 2008 2009 2010 2008 2009 2010
UAE BAHRAIN SAUDI ARABIA
GCC gearing up for trade in a big way!
50 65
58 59
41
34 35 34
29
2008 2009 2010 2008 2009 2010 2008 2009 2010
OMAN QATAR KUWAIT
Source: The Enabling Trade Index Report 2008-2010, World Economic Forum
10. Effect of Recession
Project Logistics hampered due to downfall in real estate
Fall in oil prices led to turmoil in shipping
Job insecurity
Demand plunge : facility reduction more than required
Bad to worst : Press effect
Thinking, Re-thinking
Focus on LEAN
Market Cleansing : Vanishing of sub-standard businesses
Market Development: Expanding the fish pond
Revenue to Relationship : Mergers and partnerships
11. Drivers of Change
< 2009 Future
DRIVERS
Government support Integrated and level
Individualistic
approach & Oil Prices playing field
suffering
Human Resource
Technology (esp. IT)
12. FUTURE TRENDS
Modernizing Green
GCC
Logistics
infrastructure
Increasing role 3PL +
of IT Consulting
Increasing Talent
Complexity Retention
Shift from Culture
Asset Heavy to
adaptability
Asset light
14. What’s in store
Emirates Airlines on a buying spree
• Addition of 2 aircrafts each month for the next 6 years
• Dubai used as base to create a global network
Dubai Strategic Plan 2015
• DWC becomes the world's first logistics platform with all
transport modes
• RTA has developed a comprehensive roadmap to integrate
roads, highways, rail and marine transport within the emirate
Soccer World Cup - 2022
• Plans to spend $4 billion on a stadium construction and
refurbishment
• Annual growth forecast of 15 per cent in 2010 and 16 per cent
in 2011
• Invaluable image campaign for the region
Source: Arabiansupplychain.com
15. Thank You!
Please feel free to contact!
Ankurkumar99@gmail.com
Ankur has worked for 5 years in shipping industry as a merchant marine
officer. During the job he reduced the Tanker turnaround time for the
vessels by effective voyage and cargo planning. He has led
multinational/multilingual teams while managing various operations and
coordinated with various International Regulatory and Administrative
authorities.
Ism.anujesh@gmail.com
Anujesh has worked as a Process Engineer for almost 3 years in Minerals
and Metals Industry. Through all these years he has worked in diverse
projects that involved providing end to end solutions to Clients. Anujesh
has done his BTech in Mineral Engineering from Indian School of
Mines, Dhanbad.
Gaurav@gloconomics.com
Gaurav is a mechanical engineer and has worked in automotive sector for
around 3 years on Strategic Projects in Manufacturing. He is trained in Six
Sigma green belt and has worked extensively on in-plant logistics, capacity
planning, theory of constraints, global benchmarking and operations
management. One of his projects on asset utilization has won a National
Award at IMTMA Productivity Summit 2008, India.