Despite the current resilient economic condition of the country, the logistics industry managed to flourish in recent years. It is estimated that this fundamental pillar of the economy is set to grow at the rate of 7.3 percent CAGR net worth of $66.3 billion by 2020. In 2015, the logistic industry contributed to 13 percent of the Kingdom’s GDP which is now growing exponentially with progressive development plans. According to the reports published by Kuwaiti logistics firm Agility in January, Saudi Arabia stood seventh in best logistic among 50 emerging markets.
In spite of all these developments and growth in the logistics industry, firms need to adapt to the technology changes to stay at the front of the pack. One of the few technologies that are influencing the development and growth of the logistics industry is artificial intelligence (AI), the blockchain, big data, and robotics. To enhance efficiency and productivity, organizations not only need to understand these technologies but should adopt them. With the rapidly changing technologies, the landscape of supply chain which we are seeing today will be much different in the future. Only those with the nimble mind will survive through these rapidly changing trends.
CEO of Gulftainer’s group, Peter Richards said that big data has the potential to improve the efficiency and encourage the innovations which can be used to model behaviors and can be used in future to detect and forecast the events. Moreover, he added to streamline business processes, one should consider using blockchain. With the transforming abilities of the blockchain, connected fleets powered by the internet of things (IoT): can be more secure with blockchain. Artificial intelligence has made its way into the logistics industry but the actual impact can be seen in the future. Big data is already produced with the on-demand logistics and automated transport marketplaces powered by IoT. Soon we will be able to see the anticipatory logistics.