Supply Chain Council of European Union | Scceu.org
Supply Chain Risk

Gulf’s ecommerce businesses have a fuel cost issue that needs speedy solutions

Prices are expected to rise, with consumers and businesses starting to feel the effects. This poses significant challenges for logistics and delivery businesses to fulfil orders without customers absorbing the additional charges. How will the Middle Eastern logistics industry meet this without threatening customer loyalty?

Optimizing delivery routes

Heavy traffic increases fuel consumption and puts more wear and tear on vehicles leading to higher replacements and maintenance costs. However, automated route planning, unlike manual planning, takes real-time traffic, distance, delivery location, and other data into consideration while planning the journey.

Leveraging an AI-powered route optimization can help businesses to reduce the distance travelled, eliminate empty miles, decrease trip volumes, prevent vehicle idling, and smartly combine forward and reverse logistics. Geocoding converts addresses into exact coordinates and eliminates the problem of poor-quality addresses, leading delivery agents to the exact location every time.

Increase resource capacity

Automation also allows you to lay out your routes in advance to plan and assign your most cost-effective resources.

Prevent multiple attempts

Ensuring you’re using the right tools for your logistical needs goes a long way in enabling effective spending. It is also crucial to work with technology partners with a proven track record who understand the challenges specific to your industry and your business.

The right logistics provider will have efficient operations that keep costs down without sacrificing the service. With these kinds of partners, you can expect a smoother, cost-effective, and fuel-effective operation with no unforeseen surprises.

Safeguarding customers from fuel price hikes will be key to tapping into the growing eeommerce market in the Middle East, as well as building a loyal customer base. For businesses in the MENA region, optimizing logistics costs is one of the most effective ways to do this.

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