Freight transportation and logistics (T&L) is a critical industry for the Gulf Cooperation Council (GCC) countries, yet its technology and infrastructure lag behind that of developed countries and new investment is needed, according to a thought-leadership piece from Strategy&, a PwC subsidiary.
The piece states that worldwide, new digital tools and applications are transforming T&L at all stages of the value chain, and argues that GCC companies have not seized this opportunity, nor capitalized on new technologies.
While report acknowledges there are numerous “emerging technologies” in the GCC, many of these technologies are still in the initial stages of implementation.
Strategy& has observed that digital solutions have the potential to reduce operating costs by 10 to 30% in the GCC, and reduce operational risk and breakdowns by up to 75%.
A statement reads: “To capture these gains, GCC companies must move fast or risk ceding the first-mover advantage to their competitors.
“Already, some early adopters are implementing these technologies and retooling their operations and offerings, leading to operational and financial performance gains.
“To succeed, companies must apply a framework in which they rethink their strategic objectives and business model and then define a digital strategy to address their business needs.”