In the Middle East, e-commerce is estimated to reach $50 billion by 2025
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E-commerce has exploded in popularity in recent years. In the Middle East, e-commerce is estimated to reach $50 billion by 2025, thanks to cutting-edge technology and government policies promoting a digital economy. This trend is further accelerated by young, tech-savvy consumers shopping online.
Smooth logistics is the core of successful e-commerce. We have seen logistics transform from a quiet back-end operation to a strategic asset and driver of value. At the same time, exciting new opportunities are opening up in the logistics industry to develop and apply innovative technology solutions to streamline operations.
In this context, artificial intelligence (AI) has great potential to optimize logistics. AI now enables smarter route planning, reducing fuel waste and faster deliveries. Customers also get more accurate time frames for delivery and the flexibility to manage their deliveries. In an industry typically characterized by uncertainty, volatility, and cumbersome processes, AI could be the technology companies need to become more efficient.
AI comes in many varieties, serving a variety of applications, from location and navigation and facial detection and recognition to chatbots, digital assistants, voice-to-text dictation, and electronic payments. These improve operational efficiency and reduce manual day-to-day tasks for employees while providing a more automated customer experience.
Today's customers increasingly want to know when their packages will arrive. Extensive predictive models allow you to predict the amount of a specific shipment that will arrive at a specific facility on a specific day. Using this information, you can start planning your carrier's routes and match volumes, services, and other important variables. Once the package reaches the delivery vehicle, there is scope to further optimize the route using AI-powered software.
Amadou Diallo, DHL Global Forwarding Middle East & Africa CEO
These developments will have a huge impact on the logistics industry, and we expect further developments in conversational AI that will transform the customer experience. With Interactive AI, customer service automation enables instant email responses, automated phone services, and integration with the most widely used text messaging platforms.
In particular, chatbots can help logistics companies handle low-to-medium-volume call center inquiries, such as requesting deliveries, editing orders, tracking shipments, and answering FAQs. Chatbots are today's fastest growing brand communication channel, with a chat completion rate of 68.9% from start to finish in 2020. Chatbots also facilitate valuable analytical metrics, allowing businesses to better understand customer needs and improve the customer experience.
Analyzing the data captured by an interactive AI platform provides valuable insights for your business. For example, businesses can better understand customer challenges and consumer behavior patterns, enabling more effective marketing campaigns to attract potential leads. Data analysis helps optimize prices. Retailers can leverage better in-store and web-based layout mapping based on behavioral data. It also enables retailers and e-commerce companies to efficiently manage their supply chain while ensuring supply and demand are met at an operational level.
Emerging vendors of sales and marketing intelligence and accelerated software tools are enabling businesses to realize their full potential through interactive AI. The continued adoption and expansion of interactive AI technologies within warehouses and other operational environments, as well as back-office workflows, has the potential to improve human-machine collaboration.
As the Middle East region gears up for e-commerce market expansion, seamless logistics will be essential to ensure productivity across the supply chain and transform customer interactions. Many logistics companies and retailers are focused on enhancing last-mile delivery, a key element of e-commerce fulfillment. Improvements in AI and automation will drive service upgrades, intelligent workflow automation, and new customer experiences in the future.
The author is CEO of DHL Global Forwarding Middle East & Africa.
