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#TDC18 - Naqel Express - Ecommerce opportunities in Saudi Arabia and middle east

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Rajeeb Chowdhury will provide a brief overview of both opportunities and challenges facing global
e-merchandisers and logistics service providers in Saudi Arabia and Middle- East . While doing so, the speaker will illustrate examples of some of the practical and innovative solutions offered by NAQEL Express along its e-value chain - from the first mile pick-up to the final mile delivery. Key topics covered during this session are:
o Market opportunities: Typical nature of opportunities in Saudi Arabia and other Middle East countries fore-merchandisers around world.
o Last-mile delivery process: best-in-class methods pursued to successfully exploit those opportunities and meet the individual needs of on-line customers.
o Analytics and Al (Artificial Intelligence) solutions: aimed at optimizing productivity and customer satisfaction.

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#TDC18 - Naqel Express - Ecommerce opportunities in Saudi Arabia and middle east

  1. 1. Leaders & Heroes THE DELIVERY CONFERENCE RAJEEB CHOWDHURY Chief of Customer Services & Planning e-Commerce Opportunities in Saudi Arabia and Middle East Solutions Theatre
  2. 2. e-com Opportunities In Saudi Arabia & Middle East By Rajeeb Chowdhury Chief of Planning & Customer Service
  3. 3. Agenda Opportunities Challenges Solutions 1 2 3
  4. 4. Opportunities: Digital in the Middle East & Saudi Arabia 1 Opportunities 60% 38% 127% 34% 50% 37% 66% 34% Middle East World Saudi Arabia
  5. 5. Opportunities: Why Saudi Arabia? Basket ValuesMarket Size Consumer Behavior Customs Clearance  70% Population < 30 Years  High Duty Free Value  High consumer buying power  Shopping = Entertainment  70% - 80% Users prefer COD  Low returns after Order  USD 10 Billion  62% of GCC Market  Fashion (31%); Electronics (31%); Toys (13%) Furniture (11%)  Same Day Clearance  High De-Minimums Value: USD 266.  Low Customs Duty for High Value Ship 1 Opportunities
  6. 6. Opportunities: Why Saudi Arabia? 1 Opportunities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Imported from China = 72% Rest of the World = 28% 2017ShipmentsPerDay Annual Growth = 240% NAQEL Express Saudi Arabia: Example of volume growth of e-commerce Final Mile Delivery Ramadan Christmas
  7. 7. Agenda Opportunities Challenges Solutions 1 2 3
  8. 8. Challenges: Key Challenges Facing e-commerce logistics in Middle East Delivery Capacity Challenges Conservative Culture Climate  Constraints in Final Mile Capacity  E-com Logistics companies struggling to deliver service quality desired by Customers.  Drop in Courier Productivity witnessed during the summer months due to extreme weather.  Delivery of temperature sensitive goods require special care.  Cultural sensitivities around Home Delivery  Customer conflicts with couriers due to cross- cultural differences. 2
  9. 9. Challenges: Key Challenges Facing e-commerce logistics in Saudi Arabia Driving & Accessibility Challenges Cash Culture Geographical Coverage 2  A sizeable proportion of consumer base do not drive.  Home Delivery preferred over collection from Pick-Up/Drop-Off Centers.  Cash On Delivery Mode preferred.  Low level of Trust on using Credit Card online.  Customers widely spread across the country  Delivery to Remote Areas often a Challenge for the carriers  Complex Address System
  10. 10. Agenda Opportunities Challenges Solutions 1 2 3
  11. 11. Solutions: Multiple Tracking Options for Customers Solutions 3 Using Mobile Number Using Shipment Barcode Number Using Shipper Reference 1. Track Location of Shipment 2. Track Location of Driver / Courier
  12. 12. First Mile Pre-Sorting API & Co-Branding Solutions: e-Value Chain & Our Services Solutions 3
  13. 13. First Mile Line Haul Customs Pre-Sorting Air Cargo Services Own Customs Clearance API & Co-Branding Solutions: e-Value Chain & Our Services Solutions 3
  14. 14. First Mile Line Haul Customs Warehousing & 3PLFinal Mile Pre-Sorting Air Cargo Services Own Customs Clearance API & Co-Branding Mobile Application SMS Notification & Address Capture Cash-On Delivery e-Fulfillment Processing Returns Call Center Support Delivery Solutions: e-Value Chain & Our Services Solutions 3
  15. 15. Solutions: Enhanced User Experience using Mobile App Solutions 3 Shop On-line using our Partners (M-commerce Experience) Track Shipment Pick-Up & Manage Shipment Location Mapping via SMS & Mobile APP Call Center Support Cash On Delivery Home Delivery Returns Processing
  16. 16. Solutions: Using AI Tools & Data Analytics Solutions 3 Complaint Handling Methods Customer Interaction Methods Customer Delivery Methods
  17. 17. Solutions: Delivering Operational Efficiency using AI Tools Solutions 3 POINTER: NAQEL Route optimization Tool First Mile: Pre-Sorting Dynamic Courier Route Design Real-time Productivity Monitoring Automated Delivery Outsourcing
  18. 18. Solutions: Maximizing Value for e-Sellers Solutions 3 e-Sellers can co-brand & Sell using NAQEL Platform Lowest Returns in the Industry 12% Co-Branding & Selling Prompt Return of COD Amount Comprehensive Cash Collection & Remittance Process Managed On-line
  19. 19. NAQEL Express Head Office Samena Building, 1st Floor, Eastern Ring Road, Exit 17, Riyadh, Saudi Arabia Tel: 920020505 P.O. Box: 99931 Riyadh 11625, KSA Web: www.naqelexpress.com

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