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The freight and logistics industry in the UAE has been growing steadily over the past couple of years and is expected to register a CAGR of 5% during the 2022-2027 period. Primarily, this growth is fueled by the growing international trade activities, government efforts, and fantastic growth in the eCommerce sector.
In addition to the aforementioned factors, one more factor that is boosting the freight and logistics industry is technology integration. Several players are opting for technological solutions for better supply chain visibility, faster deliveries, reduced costs, and securing a greater share of the market.
However, the rise of technology integration has created a pretty competitive space in the UAE, making it hard for small and mid-sized businesses to stay afloat. This calls for technological solutions such as freight management software in UAE that are both affordable and extremely functional.
With such smart and functional solutions at their disposal, businesses can use automate their processes to increase supply chain productivity, foster transparency, and minimize logistics costs without breaking the bank.
In this blog, we talk about the factors promoting the growth of freight management software in UAE, key challenges businesses can solve with such platforms, and different tips to help you find the best freight management software.
The United Arab Emirates has become one of the ideal markets for the freight and logistics industry. No wonder, The UAE holds the 11th spot according to the World Bank Logistics Performance Index 2018 rankings in terms of being a logistics-friendly country.
The reason behind UAE being an ideal market is the strategic location of Dubai that connects South East Asia & Africa with Europe & America and a pro-technology culture. Several new players are entering the market and adopting modern and technologically advanced solutions to offer customers a better experience.
In fact, any logistics company that refrains from opting for the best technological solutions to improve operational efficiency and reduce costs aren’t expected to survive for long. Therefore, it’s important that businesses invest in reliable freight management software in UAE to ensure growth.
Let’s now talk about all the more reasons that are promoting the growth of freight management software in UAE:
The value of eCommerce sales in the UAE grew from a mere $9.68 billion in 2017 to a whopping $27.08 billion in 2022. The growth of the eCommerce industry is primarily because of the rising demand for online shopping, which is expected to increase as Dubai implements initiatives for developing its infrastructure and technology.
This uptrend in eCommerce is driving the growth of freight management software as technologically advanced solutions are necessary to meet customer expectations, such as no shipping fee, easy returns, and faster delivery.
International trade activities in the United Arab Emirates are on the rise because of Dubai’s strategic position. Along with that, UAE is a logistics-friendly country and offers several benefits to the business owner attracting international companies, again boosting international trade.
And as trade grows, the demand for better and more integrated freight management software in UAE will also increase.
Along with the growing international trade activities, the government in UAE is also taking measures to develop different ports across the country as transshipment hubs because of the strategic geographic position.
This type of development will attract both domestic and international players levying pressure on the UAE’s freight and logistics industry and thus promoting the growth of freight management software in the UAE.
The role of the UAE’s government in boosting the freight and logistics industry is monumental. For instance, the government is actively investing in the modernization of seaports, distribution centers, and freight terminals which is great for the growth of the freight and logistics industry in the country.
Moreover, the UAE government has opted for a long-term plan regarding the healthcare and pharmaceutical industry, considering the export potential and long-term impact on the country’s economy. In fact, Dubai decided to reduce pharmaceutical imports by around 18% by 2022, which will encourage production in the country promoting the country’s freight management software market.
One of the major modes of transport for logistics operations is road transport. However, with the rising population in the UAE and the inflow of expatriates (individuals who come from other countries for work) to explore work opportunities, the traffic congestion situation is becoming worse.
Traffic congestion leads to more fuel burns, more time taken to deliver goods, and underutilization of the vehicle, which directly impacts logistics costs. And this further leads to poor operational efficiency and degraded customer satisfaction.
UAE has one of the biggest carbon footprints in the world, and sadly, the transportation sector contributed 22% of the UAE’s total carbon footprint. Also, lifestyle changes have brought a transition in customer preferences. For instance, consumers care about how a product is manufactured, sourced, and packaged. Also, the stakeholders have similar environmental concerns.
However, this issue can be supposedly solved using technologically advanced tools that help in effective route and asset optimization, minimizing fuel consumption and thus reducing the impact on the environment.
The growth of eCommerce in the UAE has also increased the need for warehouses. Unfortunately, the majority of warehouses in the UAE still operate with little to no technology integration. This leads to operational efficiencies, such as inaccurate inventory management, high operational costs, and poor customer experiences.
While several small and medium-sized businesses have started opting for automation services, there’s no integration among WMS, OMS, ERP, and CRM. However, smart freight management software in UAE could help integrate the aforementioned processes giving businesses better visibility and thus improving inventory management, logistics costs, and customer experience.
The eCommerce supply chain produces data at a pretty fast rate. This data needs to be effectively analyzed to draw insights and remove inefficiencies and bottlenecks.
However, because of the lack of technology adoption, the amount of data that can be analyzed isn’t good enough. Further, the different system components create massively unstructured data silos that make it impossible to process the data for business intelligence. It means businesses aren’t able to draw meaningful insights stopping them from improving.
But, using a freight management solution that offers data analysis, businesses can make the most out of the data generated and get in-depth insights to make improvements in their supply chain.
The first thing to look for in a freight management system is a smart interface that allows for integrated management.
An integrated smart interface is basically an interactive dashboard that offers you a 360-degree view of all the freight and logistics operations, from freight procurement, shipment tracking, last mile deliveries, real-time updates, container tracking, finances, etc., all in one place.
Moreover, your freight management system must be able to seamlessly integrate with existing infrastructure, such as CMS, ERP, OMS, WMPs, etc., for better monitoring, collaboration, and communication.
The purpose of smart integrated management is it allows easy access to all the crucial information in one place, helping businesses save time.
A major challenge freight and logistics companies in the UAE face is fluctuating fuel costs and rising traffic congestion. And both of these challenges amount to improper vehicle utilization, higher logistics costs, delayed deliveries, breached SLAs, and poor customer experiences.
However, freight management software that comes with smart routes and asset optimization can help solve these issues. With such functionalities, businesses can find the shortest and less congested route, saving fuel and shortening the overall delivery time. This will not only help save money but will also ensure effective vehicle utilization.
The market is full of freight management software that offers limited functionalities or caters to a specific area, such as shipment tracking, route planning, etc. And for the rest of the functionalities, businesses have to opt for other solutions or rely on human elements as they used to.
However, this is highly inefficient and costs a lot more than choosing end-to-end freight management software. End-to-end freight management solutions cater to all aspects, from freight procurement, freight tracking, sending RFQs for bidding, real-time monitoring, returns, invoicing, and other backend operations. This way, businesses can manage everything using a single software solution without having to spend much.
One of the many aspects that rely on manual elements in the freight and logistics industry is documentation. However, that is really inefficient and needs to change. Because several times shippers are requested to present documents dynamically, which isn’t possible if the documentation is being managed manually and can delay the border clearance process.
In addition, the chances of manual documentation getting misplaced are quite high, which can impact SLAs and, thus, customer experience.
Therefore, businesses should try to find freight management software that offers digitized documentation that manages documents on your behalf and updates them dynamically as and when required. This will help save time and ensure speedy deliveries.
While technologies like IoT, blockchain, cloud, etc., are becoming increasingly popular in the UAE, several businesses still rely on human elements leading to operational inefficiencies, errors, and delay in processes. However, it’s quite hard for such businesses to stay afloat if they follow a similar pattern.
A freight management software in UAE that offers automated workflows could help. Using smart automation, businesses can digitize all their processes, from managing freight, data entry, invoicing, and other back-office tasks to boost their operational efficiency and survive in the highly competitive freight market.
Freight management systems that offer only static functionalities to businesses are a thing of the past. It’s because such systems render useless in today’s unpredictive market that involves several last-minute changes.
Therefore, always try to find a freight management software in UAE that offers dynamic functionless capable of effectively handling last-minute changes. This will help you ensure 100% customer satisfaction in unpredictable circumstances.
One of the biggest reasons behind logistics being expensive is the underutilization of a vehicle’s capacity because of ineffective planning and scheduling. Several times, trucks return half empty or completely empty on their return journey, which reduces efficiency and adds to the logistics costs.
However, using AI-based route planning, businesses can smartly assign consignments to maximize resource usage, increase the number of deliveries, reduce transportation expenses and minimize carbon emissions & fuel consumption.
Real-time monitoring means businesses, along with all the involved stakeholders, can get instant updates about the location of the shipments, order status, and live delivery ETAs ensuring complete visibility and transparency.
Also, with real-time monitoring, businesses can detect if any anomalies arise mid-route, impacting the delivery SLA, and can notify customers of the same and the reason behind the delay improving customer experience.
Predictive data analysis is of paramount importance to freight and logistics business owners. Using predictive analysis, businesses can get predictive insights into the market demand, inventory, and upcoming challenges and handle them better.
Also, with predictive analysis, businesses can get notified of any incidental damages such as demurrage or detention and handle the situation better, saving time and money. Therefore, look for freight management software that offers predictive analysis and sends out predictive alerts.
These were some of the most crucial must-haves of reliable freight management software in UAE. You can now research the market for available options and make an informed decision. However, if you still find it hard to make the right choice, you can rely on Shipsy: an end-to-end freight management platform.
Let’s learn why.
Shipsy is one of the most reliable and smart end-to-end freight management software in the UAE that helps businesses in the freight and logistics industry efficiently manage their businesses.
Because of Shipsy’s end-to-end freight management capabilities, businesses can manage everything from freight procurement to freight tracking, manage RFQs, and invoices, and integrate existing infrastructure such as CRM, WMS, OMS, and ERP. They can monitor everything on a smart dashboard for integrated operational and stakeholder management. This offers all the insightful information in one place, offering businesses a 360-degree view of all the operations.
Also, businesses can use smart routes and asset optimization to find the most optimum route to save fuel, ensure timely deliveries, minimize carbon emissions and maximize vehicle utilization. Even managing documentation becomes easy with Shipsy’s digital document locker that stores all the necessary documents and supports dynamic updates. This way, businesses won’t ever get stuck at customs for incomplete documentation.
What’s more, businesses can reduce reliance on manual elements and improve operational efficiency as Shipsy supports automated workflows. Moreover, you can stay one step ahead with real-time monitoring and predictive alerts if things go south.
In addition to the aforementioned benefits, here’s what Shipsy can help businesses achieve:
To see how Shipsy will help you achieve the aforementioned benefits, book a custom demo now!
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