Since it inaugurated its regional headquarters and gateway facility in Dubai in 1989, FedEx Express — the express logistics giant and subsidiary of the global courier company, FedEx Corp. — has established its position as a key provider of express shipping solutions across the Middle East and beyond.
Taarek Hinedi, Vice President of the Middle East and Africa Operations, walks us through the company’s solution offering and the unique challenges facing today’s logistics and supply chain industries and how technology is helping these sectors advance.
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A central hub
According to Hinedi, The Middle East continues to be one of the key growth markets for FedEx, particularly with its accessibility and geographic location offering an ideal bridge between Eastern and Western economies and catalysing the growth of cross-border trade as well as driving demand for express logistics.
“The UAE, Bahrain, Kuwait, Oman, Saudi Arabia, Jordan, and Egypt are directly served by FedEx, meanwhile, other countries are served through a network of service providers,”
Hinedi notes, pointing out that Dubai’s access to large regional and global markets, its open trade and investment policies, transparent global business practices, as well as its strong macroeconomic environment made it an ideal location for the company’s Middle East, Indian Subcontinent and Africa (MEIA) headquarters.
Today, FedEx’s Dubai Hub launched in 1998 serves 58 weekly flights to and from Dubai to connect global markets and provide customers with express access to the region.
“Our extensive Middle East road network also connects the UAE, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and Jordan, offering day-definite economy services,” Hinedi adds.
Challenges and opportunities
While the global pandemic has highlighted the pressing need for smarter and more resilient logistics and supply chain operations, it also paved the way for the digital transformation needed to keep pace with the rapidly evolving customer demand and plan for future growth.
“Innovation has always been in FedEx’s DNA. We are constantly exploring the potential of new technologies such as computer-assisted vehicles, artificial intelligence, data analytics, blockchain, robotics, and drones to get the job done,” Hinedi says, adding that while blockchain is “still in its infancy,” FedEx aspires to play a leading role in the advancement of the promising technology.
“We want technology solutions to resolve complexities, support our customers in adapting to change, and respond to the needs and demands of the market,” he explains.
Hinedi further notes that by leveraging its Electronic Trade Documents solution (ETD), FedEx allows customers to electronically upload their customs documentation to facilitate customs procedures and reduce the risk of shipment delays.
“We also offer innovative tracking solutions like FedEx SenseAware, which is our near real-time tracking technology with the ability to monitor the location, humidity, and temperature of sensitive shipments and allow the customer to intercede if needed,” he adds.
Industry 4.0
Industry 4.0 technologies including Artificial Intelligence (AI), Machine Learning (ML) Internet of Things (IoT), and robotics are key pillars of today’s logistics and supply chain operations.
According to Hinedi, technology will continue to advance in the upcoming years to enhance productivity and business recovery, as well as improve connectivity between people, systems, machines, and manufacturers.
He highlights that blockchain technology offers a significant opportunity to improve supply chain fulfilment efficiency, make global trade processes more transparent, reduce inaccuracies, and digitise information.
“Most importantly, with consumers becoming increasingly concerned about where, how, and when products are manufactured and delivered, the blockchain technology can provide proof of authenticity and reduce counterfeit items. This helps to build trust between industries and their customers,” he says.
Enhanced efficiency
The past two years saw unprecedented technological progress, particularly across the logistics and supply chain domains. Businesses are shifting toward technology solutions that can boost their operational efficiency and provide end-to-end visibility over their supply chains, inventory, and fleet management operations.
“We have seen the growing reliance on the IoT within the logistics industry. IoT enhances visibility in every step of the supply chain and improves the efficiency of inventory management. Integrating such technology into the industry improves and enables efficiency, transparency, real-time visibility of goods, condition monitoring, and fleet management,” Hinedi reveals, explaining that the combination of AI algorithms and machine learning technologies allows logistics and supply chain providers to be proactive in dealing with demand fluctuations.
“AI-based forecasting solutions allow managers to plan supply chain processes and find ways to reduce operating costs. In addition, AI-based cognitive automation technology brings intelligence to automate administrative tasks and speeds up information-intensive operations,” he says.
Hinedi explains that the use of robotics is also a growing trend in the logistics and supply chain industry, stressing that the integration of robotics can increase the speed and accuracy of supply chain processes and reduces human error.
“It is important to note that the value of robotics is clearest when working collaboratively alongside people to increase efficiency,” he says.
Technology is key
Elaborating on the key technologies implemented across FedEx’s operations, Hinedi stresses that technologies including robotics, automation, augmented reality, and data analytics present strong potential in the logistics industry. Thus, they play a critical role in the company’s last-mile deliveries and tracking operations.
“FedEx SameDay Bot, known as Roxo™, is an autonomous delivery device currently being tested in the US. It is designed to travel on footpaths and along roadsides, safely delivering smaller shipments to customers’ homes and businesses,” he notes, highlighting that it is perfect for e-commerce and on-demand point-to-point deliveries, especially for essential items such as medicines.
He notes that the company strongly believes in the power of information and access. “In 1978 our founder Fred Smith said that information about the package is just as important as the package itself,” he says, adding that this belief has been the core of every FedEx solution brought to market since 1973, including the FedEx SenseAware near real-time tracking technology.
Hinedi believes that automation and robotics have risen to prominence on an industry level because of their ability to enhance sorting and packaging operations at fulfilment centres and warehouses.
Vaccine distribution
As the global pandemic broke out, the company was quick to leverage its expertise, global fleet of aircraft and ground transport, and advanced technology solutions to transport critical medical supplies across its global network, including essential personal protective equipment.
“We worked closely with the healthcare industry, governments, and regulatory authorities to support the delivery of life-saving medical treatments,” Hinedi reveals, stressing that the transportation of vaccines is among the most critical roles assumed by the
company throughout its history. He further underlines that with existing specialised solutions for the pharma industry, including cold storage solutions, tracking, and monitoring technology the company is “well-versed” in the transportation and handling of sensitive pharma shipments.
“We have a team of dedicated experts to monitor vaccine movements across the region and worldwide. In recognition of the unique expertise, we joined the Hope Consortium to support access to COVID vaccines in underserved communities since the pandemic began,” he adds.
Agility and adaptability
With the pandemic’s sudden onset, global supply chains were subject to dire disruptions. Almost 40% to 50% of air freight is carried on passenger flights. Thus, the grounding of commercial fleets in 2020 has left an impressionable mark on cargo capacities and global trade operations. “From the first signs of the virus, FedEx adjusted its networks, added flights, and maximised capacities, while working closely with authorities to obtain the necessary approvals for essential shipments including vaccines,” Hinedi notes, pointing out that adapting to the fast-changing environment and responding with agility during crises, are the key factors behind the success of logistics players in a rapidly changing world.
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Expanding footprint
As part of its strategy to expand its foothold in the region, FedEx has set the foundation stone of a new regional air and ground hub for the (MEISA) region in March at Dubai South’s Logistics District.
The new hub located in proximity to Dubai World Central (DWC) Airport, is set to feature forward-looking technologies to support the company’s regional and global networks as well as increase its operational efficiency to meet rising trade demands across the region and beyond.
“Within the (MEISA) region, FedEx connects 45% of the world’s population through our regional hub in Dubai,” Hinedi explains, adding that while FedEx is already offering direct-serve services in Middle East countries like the UAE, Bahrain, Kuwait, and Oman, the company has set sight on key growth markets including Saudi Arabia and Jordan, where it plans to expand its direct-serve offering to support the growth of their export and import capacities.
Over and above, FedEx Express also announced a direct-serve presence in Egypt in February, providing customers with direct access to its global network, extended service portfolio, and digital tools through a dedicated support team.
“We see so much potential in the Middle East and Africa markets and will continue to look for ways to enhance our services and provide digital solutions with a focus on outstanding customer experiences,” he adds.
Hinedi further stresses the significance of e-commerce as a platform, noting that the company aims to provide consumers and SMEs with greater access to the global marketplace, through its global air and ground networks.
Saudia Arabia
Elaborating on the company’s plans to expand its direct-serve offering to Saudi Arabia in a bid to capitalise on the kingdom’s growth potential as a key emerging market, Hinedi highlights that FedEx Express has been facilitating trade in Saudi Arabia since 1994, offering its international services through local service providers.
“In response to Saudi Arabia’s growing international shipping demands, we recently established our direct-serve presence in the Kingdom. FedEx has committed to investing
more than $400 million (1.5 billion SAR) into the economy over the next ten years, as we support the country’s non-oil economic growth,” he says, emphasising the kingdom’s significance as a growing market, being the largest economy in the GCC and a rising economic powerhouse.
He adds that by expanding its presence in the kingdom, FedEx aims to play a significant role in helping local businesses trade with ease and expand their reach over more than 220 countries across its network, offering access to new markets and a wider customer base.
“Saudi Arabia is transforming its economy through Vision 2030, and we want to be part of this change. FedEx will support different industries within the country by providing our expertise to enhance the country’s logistics sector and transport infrastructure. It is time to be in the Kingdom,” he concludes.
