The logistics sector is an important component of the UAE economy. It accounts for substantial growth stimulation in the UAE international trade segment. The trading pathways of the West, Africa, Europe, and Asia have automatically turned the UAE into a major international transit hub. There exists a unique system in the territory of the United Arab Emirates that unites large ports and airports thereby facilitating the logistics industry into becoming a major touch-points for all businesses including infrastructure, equipment, etc. As technological advancements are rapidly leading to the automation of global industries, the logistic market in the UAE is actively adopting sophisticated technology like the Internet-of-Things, Robotics, Artificial Intelligence, Cloud technology, and so on.

 Let’s find out how these technologies are playing their roles in the UAE logistic sector –

. Internet-of-Things (IoT)

Today, the Internet-of-Things (IoT) technology is playing a huge role in various kinds of transport operations such as fleet management, freight forwarding, and so on. The IoT helps systems work separately as in transportation, routing, managing assets, as well as in-vehicle tracking.  IoT technology facilitates enhanced connectivity and efficiency in the road and port logistics. Its multitude of capabilities includes a wide range of real-time information to monitoring, measuring, controlling, learning, all of them streamlining the supply-chain as a whole. The IoT is getting sophisticated with the entry of drones and driverless cars into the industry.

In the United Arab Emirates, drones are labeled as delivery mechanisms and not only deliver driving licenses, delivery cards, various permits but also helping logistics giants like Amazon and 7-eleven in the region. Both of them are using drones for unlimited aerial deliveries thus helping the logistic sector a great deal!

. CLOUD technology

Cloud technology is responsible for providing greater flexibility, scalability across the system of an organization. Cloud technology is an ideal choice for a complex, volatile environment prevalent in the logistics industry. This technology facilitates a wide variety of ‘Logistics-as-a-service’ (LaaS) based business models that logistic providers can activate and deactivate as per their customized requirements. Thus, Cloud Technology allows for greater management capabilities and highly scalable services without using any traditional model of set-up and tools. Cost-reduction, efficiency, and productivity can be assured using this technology.

The remarkable Cloud-based capability in the form of ‘Virtual-Freight-Forwarding’ is allowing a modern system, an online system, that does the work of matching shipments with the on-time availability of transportation providers.

. ROBOTICS, Automation of the sector

Logistics management plays a key role in the warehousing system and supply-chain in the retail segment. E-commerce, automotive, and retail, all are triggering automation in the UAE logistic market. Companies are striving to match the competitive market by adopting automation and reducing human error in the entire ecosystem. Robots are being used to transport goods far and wide. Robotics technology in logistics offers a greater level of uptime over manual labor, thereby,  bolstering productivity and efficiency in the sector. In the wake of current situations, robots are doing all sorts of sorting distributing jobs in the warehouse department. This way, 70%of labor costs are reduced and efficiency soars to the level that days*nights are constantly on work-mode.All thanks to the power of Robotics technology!

. AI and Data Analytics

Artificial Intelligence is playing a significant role in the logistics industry. The fundamentals of this technology are revolutionizing the entire landscape of logistics right from predictive analysis tools to autonomous vehicles and controlling robots. Since the UAE is shifting to a data-driven economy, handling the demand and supply of an innumerable amount of data using analytics tools is leveraging the logistics industry to a greater level. This way, it helps in fine-tuning customer experience and efficiency at an operational level. Moreover, it offers a greater level of predictive maintenance, inventor visibility, cost reductions especially at the operational level, and entire management becomes smooth without obstructions.

The significant contribution of the logistics industry to the UAE economy can be assessed from the latest announcement by the Government –   a massive $136 million support package to Dubai logistic sector alone. Thus, time-to-time investments in the logistics sector have provided the UAE with a genuine status ‘the best trade & tourist destination’.

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