SUPPLY CHAIN IN A VIRTUAL WORLDTake Away from World Economic Forum – DAVOS 2011-12

By: Yonus A. Siddiqui

Vice President Projects

WORLD ECONOMIC FORUMGLOBAL AGENDA COUNCIL ON LOGISTICS & SUPPLY CHAINS

Global Agenda Councils (GAC) are unique multi stakeholder groups that convene leading thought leaders from academia, business, government & other fields to capture best knowledge on key issues and integrate them into global collaboration and decision making process.

The GAC on Logistics & Supply Chains is: Contributing to the global dialogue on supply chain

issues Publishing articles and providing insights Working jointly with GAC on Global Trade

Systems to propose new models of trade rather than just Tariffs.

SUPPLY CHAIN IN A VIRTUAL WORLD

INFORMATION DRIVES BUSINESS

Cargo from Jebel Ali Sea Port can be moved to Al-Makhtoum Airport in just 20 minutes, (all processes included)

10,000 virtual stores opening up in China

USD 160 Bn. Annual online retail sales in North America

A transformational shift in logistics and supply chain through virtual integration is in the

making

JEBEL ALI PORTMOBILE PHONE HOLDS THE KEY

Employee cell phones integrated with Labor Management System (LMS)

LMS integrated with Berth Planning and Gate Controls Automatically calculates the best labor deployment based on

forecasted variables Multiple what-if scenarios for cost and time optimization

Berth Planning integrated with HRMS Assigns workers to points of work in minimum time

3G connectivity given to shipping lines to access bay and stowage plan information, helping to cut port call time

Time savings up to 30%

DUBAI LOGISTICS CORRIDORSPEED IS THE NAME OF THE GAME

Cargo from Jebel Ali Sea Port can be moved to Al-Makhtoum Airport in just 20 minutes – all formalities included

Dubai Trade Portal provides a virtual integration platform Visibility of inbound shipments Automating customs, entry and exit gates Maximizing yard space on wharves Maximizing Vessel efficiency

57,000 users 26% annual growth in transactions Many companies using the Portal for 90% of their core

services

Virtual integration of All Players

ENABLING EFFECT OF E-INTEGRATION

World Bank’s 2012 report on Doing Business

placed the UAE among the top 5 countries(globally) for enabling “Trading Across

Borders”

GARTNER REPORT 2011-12

Wireless adoption is growing by 30% annually among supply chain businesses worldwide and this number will continue to be driven by new spectrum of network services being offered to logistics sector.

TAKE AWAY FOR PAKISTANI LOGISTICS SECTOR

Increasing affordability of wireless technology & Tech advancement we can easily leapfrog to the virtual world and drive growth.

Tremendous Growth in Telecom Sector 120 Mn cell phone users 92% of land area; >10,000 cities/towns/villages covered 25 Mn. Internet users; 16% annual growth rate Mushroom growth of asset tracking companies Introduction of HHTs, RFIDs, Bar Codes etc. Increasing addiction to social media Big pool of tech savvy people

Market integration with global mainstream can be put on fast track

IMAGINE THE IMPACT OF AN INTEGRATED SYSTEM ON LOGISTICS BUSINESS

Vessel demurrage close to ZERO

Port Cargo Velocity – Gate out in 2 hours

Integrated Logistics Parks with all ports

Cargo crosses Afghan border in 3 days

Delivery confirmation sent to customers within 5 mins

Virtual shopping “Walls” in public places

On line ordering through cell phones & cell phones

Allowing staff to work from home

FUTURE IS HERE ...ALREADY!