Logistics Middle East – August 2019

CASE STUDY | LEADERS IN LOGISTICS BREAKFAST

28 AUGUST 2019 | LOGISTICS MIDDLE EAST http://www.logisticsmiddleeast.com

across the Saudi Arabian border quickly, because the lead time
for processing and clearance of cargo can hit 38 hours, which
means a shipping time of four days from Dubai to Riyadh.”
This is a problem says Dr Balan because the UAE has become
a ‘centre of gravity’ for the e-commerce sector in the region.
“Dubai is up there with Singapore and Hong Kong with its
infrastructure and regulations for trade and specialized fields
like e-commerce,” he says. “Because of this, when a major
e-com player is looking at expanding into the Middle East,
our when a new homegrown business is emerging, there’s a
strong gravitational pull in Dubai.”
According to Pluteanu, the solution in the short-term (as
regulations and processes between the UAE and KSA be-
come better-aligned) lies in using the right providers. “These
challenges are manageable if you have the right partners,^ Fadi Amoudi, Founder & CEO, IQ Fulll lment.

THE DELAYS NOW ARE NOT
NECESSARILY ONLY DUE TO THE
PROCESSING OF DOCUMENTS OR THE
CLEARANCE OF THE DOCUMENTS, IT’S
THE QUEUES AT THE BORDER ITSELF,
TRUCKS WAIT UP TO 48 HOURS AT THE
BORDER,”
SANDEEP PONNAPPA, GENERAL
MANAGER, RSA LOGISTICS.

for our clients for example

we leverage our very close

relationship with clearance

agents. Through these re-

lationships we’ve been able

to clearly communicate our

issues when there’s a delay

and resolve it quickly. This

has really been able to help

us reduce lead-times.”

Ponnappa adds that lead

times can only be reduced

by adopting technology and

more manpower at the bor-

der, referencing the leaps and

bounds that Dubai Customs

have made in clearing more

than 90% of cargo within a

few hours. “The delays now are

not necessarily only due to the

processing of documents or the

clearance of the documents, it’s

the queues at the border itself,

t r ucks wa it up to 48 hours at t he

border. This is the main chal-

lenge, there needs to be more

PAN E L: C RO S S - B O R-

DER ECOMMERCE

MODERATOR:

MARK HEALD, HEAD OF

SUPPLY CHAIN, AL

F U T TA I M R E TA I L

PAN E L:

SANDEEP PONNAPPA,

GENERAL MANAGER,

RSA LOGISTICS

CORNELIU PLUTEANU,

LOGISTICS MANAGER, AL

GHURAIR FOODS

DR. BALAN SUNDA-

RAKANI, ASSOCIATE

PROFESSOR - SUPPLY

CHAIN MANAGEMENT,

UNIVERSITY OF

WOLLONGONG