disruptive technologies in logistics sector.

1. INTRODUCTION
 WHAT IS DISRUPTIVE TECHNOLOGY?
o In the ever dynamic and competitive global market of today one of
the most crucial and imp aspects of a business is its ability to
constantly change according to the needs and demands of a new
generation of consumers who demand bothpersonalized products and
customized services.
o In the age of innovation the world is full of endless choices and
opportunities where new products and services are launched at an
ever-increasing pace, new solutions can be built on top of existing
technologies faster than ever before.
 Disruptiveinnovation refers to a concept, product, or a service that
either disruptsan existing marketor creates a completelynew
marketsegment.
 It is an innovation that significantly alters the way that consumers,
industries, or businesses operate. A disruptive technology sweeps away the
systems or habits it replaces because it has attributes that are recognizably
superior. Therefore all major industries are concentration their resources
towards research and development of tech and innovation and ai.
 Recent disruptive technology examples include e-commerce, online news
sites, ride-sharing apps, and GPS systems.
 According to PWC, there is “no other industry where so many industry
experts ascribe a high importance to data and analytics in the next five years
than transportation and logistics – 90% … compared to an average of 83%.”
This is an industry that already is at the leading edge of innovation. The
Mckinsey Global Institute estimates that the transportation-and-warehousing
industry already has the third-highest automation potential of any sector.
For retailers at scale, this requires a comprehensive retooling of their supply

2. chains. For logistics at large, this means significant changes are on the way –
driven by new technologies and concepts.
DP WORLD
 What started at Port Rashid in Dubai in 1972 as a local trader , the DP world
is now a global trade enabler with an employee-count of over 50,000 people
working at 150 operations around the globe having an interconnected global
network of 123 business units in 54 countries across seven continents, with a
significant presenceboth in high-growth and mature markets
 Under the leadership of Mr. Sultan Ahmed Bin Sulayem, operations of DP
world include ports and terminals, industrial parks, logistics and economic
zones, maritime services and marinas. With the aim to be essential to
building the bright future of global trade, the company strives to leave a
long-lasting positive impact on economies and the world. DP world is now
an integral part of supply chains, tailoring innovative solutions that tackle
challenges and manage costs fortheir clients.
DISRUPTIVE TECH AND DP WORLD
 Speaking at the World Government Summit, in Dubai, Sultan bin Sulayem,
chairman of DP World and chairman of Dubai's Ports, Customs and Free
Zone Corporation, said he foresees a day when seaports either move inland,

3. or become obsolete, as a result of disruptive technology reshaping the cargo
industry.
 In responseto growing competition and to meet the twin challenges of
moving cargo quickly and efficiently as global trade expands, DP World is
harnessing disruptive technologies in a bid to strengthen its logistics
infrastructure and diversifying its portfolio to better serve the dynamic trade
needs of its customers and partners.
 Focusing on mutually beneficial relationships – with governments, shippers,
traders, and other stakeholders along the global supply chain – relationships
built on a foundation of mutual trust and enduring partnership. Dp world
thinks ahead, anticipate change and deploy industry-leading technology to
create the smartest, most efficient and innovative trade solutions, while
ensuring a positive and sustainable impact on economies, societies and our
planet.
 Thus the company focuses on 5 coretrends that will shape trade and
logistics.
These are:-
1.HYPER PERSONALISATION
2.NEW CARGO TECHNOLOGIES
3.INCREASED AUTOMATION
4.EFFIECIENT MARKETPLACES
5.DIGITAL MAKEOVER FOR LOGISTICS
RECENT DESRUPTIVE TECHNOLOGY AT
DP WORLD

4.  BOX-BAY STORAGE TO EASE TRAFFIC
CONGESTION
One of the major hurdles to efficiency and
speed at ports since decades is the inability for machines to directly access any
sea containers. They need to reshuffle containers whenever one is needed, taking
up time and space.
o Boxbay is a joint venture by DP world, the Dubai-based provider
of worldwide smart end-to-end supply chain logistics and the
German industrial engineering specialist SMS group at the Jebel Ali
Terminal 4 to change the way that containers are handled in ports with
smart innovation.
o With the use of a disruptive technology, the patented design and rack
structure of Boxbay creates unique advantages with containers stored
up to eleven stories high, delivering the capacity of a conventional
terminal in a third of the surface area.
This new system is expected to see 200 percent more capacity at DP World’s
terminals compared to other conventional ones, effectively increasing the capacity
to 2.5 times more containers per hector. This new revolutionary technology is set
to handle metal products that weigh as much as 50 tonnes each in racks as high as
50 metres and
o is designed to be fully electrified making it the only container yard
that can be powered by solar panels on its roof.
o Scalable to any location, fully automated with direct access to each
container, Boxbay eliminates unpaid and unproductive reshuffling. It

5. enables significant gains in handling speed, energy efficiency, safety
and a major reduction in operating costs and expected to greatly
reduce the traffic congestion within terminals for container movement
and reduce footprints by 70%.
 LEVERAGING BLOCK CHAIN AND ARTIFICIAL
INTELLIGENCE TECHNOLOGIES
o In line with Dubai's Blockchain Strategy, in 2019 DP World joined the
global shipping and port operations Blockchain Consortium to enable
collaborative innovation and the digital transformation of the supply
chain and logistics sectorand speed up the automation of the operations
and processes, while improving security.
o Blockchain has immense potential to bring more transparency, trust,
traceability and accountability to the space, which will help the SME
logistics companies to reduce risk and improve operations.
o DP World has completed the early stages of integration with Trade Lens,
a blockchain-based digital container logistics platform, jointly developed
by A.P. Moller - Maersk (MAERSKb.CO) and IBM (NYSE: IBM).
o In 2019 DP World’s terminals handled 71.2 million TEU (twenty-foot
equivalent units) containers from around 70,000 vessels. The
collaboration between DP World and the TradeLens platform will help

6. accelerate the digitisation of global supply chains. DP World has
connected most of its 82 marine and inland container terminals, as well
as feeder companies and logistics divisions with TradeLens.
o Collaboration will offer greater ease of doing business across the supply
chain
o Manual, time-consuming administrative processes are replaced with
digital procedures powered by Blockchain Technology
o Driven by vision for intelligent logistics, reducing costs and creating value,
for DP World the data from its integration with TradeLens will improve
operational efficiency with earlier visibility of container flows across
multiple carriers. Such visibility includes confirmation of the transport
modality that follows the port stay for each container, which in heavy
transshipment or rail ports enable better yard planning.
o It will also expand the capabilities of DP World’s digital platforms created
to move online the management of logistics enabling shippers to move cargo
to and from anywhere at the click of a mouse, across DP World’s network
and beyond.
o DP World has already connected Cochin Port (India) with the TradeLens
platform via API technology. Plans to collaborate with other DP World
business units, including the feeder line Unifeeder, have also been initiated.

7.  DIGITAL SOLUTIONS
Digitising trade on sea, land and air DP World is allowing Customers to
optimize resource utilisation and improve efficiency. Not only does this
allow businesses to tactically plan onward connections, they can also give
their customers greater visibility on when to expect delivery.
 Digital freight alliance
o DP World’s Digital Freight Alliance is an online network primarily
designed to provide freight forwarders with new tools, routes and
services, therefore enabling them to do more business. Founded in
2020 within DP World’s scaling strategy, the Digital Freight Alliance
brings together leading logistics providers via platforms such as
searates, landrates, and airrates.
o Membership with the Digital Freight Alliance opens up a new world
of possibilities.
i. It provides members with access to freight forwarders in more
than 150 countries;
ii. proven and reliable logistics partners through the KYC process;
iii. increased sales, payment protection and many other features.
 Searates

8. o DP world’s searates is an online platform designed to provide cargo owners
and consumers looking to transport goods with the best rates. It also offers
quality industry tools to freight forwarders that enable them to conduct their
business more efficiently for the following-
i. tracking and visibility of cargo;
ii. logistics community systems (lcs);
iii. documentation (i.e. Quotations, performa invoice, purchase order, bill
of lading, commercial invoice, verified gross mass declaration,
packing list, certification of origin, and stuffing plan);
iv. ship schedules
o With innovative tools, a seamless booking experience, and 24/7 support,
searates has quickly grown to be considered the primary marketplace for
freight forwarding companies. Alongside landrates and airrates, the platform
is also a member of the digital freight alliance, an online association that
brings freight forwarders globally onto one platform, giving them access to
new tools, routes and services, and enabling them to do more business
anytime, anywhere.
 Introducing 'track and trace'

9. o 'Track and Trace' by P&O Ferrymasters, a DP World company, means
customers in Europe can now track and trace each of their shipments every
step of the way, allowing them to optimize their supply chain connections
with new levels of precision.
o Designed to advance the digitalization of trade and significantly improve
customers’ visibility of the supply chain it is powered by their in-house
system, Fr8manager, Track and Trace allows customers to receive real-time
updates on the precise location of their goods as they are transported by rail,
road and sea.
o This innovation improves efficiency, reduces costs and increases the speed
of information exchange by focusing on speed, reliability and experience.
TWIST LOCK ROBOT
 The introduction of the Twist lock bot, a robotic arm that can smartly
handle different types of locks on internal trucks, will reduce human
activity at the pinning stations.
 The Twist lock botcan remove and engage twist locks that are on
containers, without the need for human intervention.

10. 
 In addition to enhancing productivity, as the robotic arm is 20% faster
than humans, it will also improve safety of human workers at the
terminals.
 CARGOSPEED
DP World Cargospeed, the first initiative of its kind, was created through
a partnership between DP World and Virgin Hyper loop One, to provide
hyper loop-enabled cargo systems that will enable fast, sustainable and
efficient delivery of palletised cargo around the world.
DP World Cargospeed is set to provide an incomparable service for high-
priority, on-demand goods, delivering freight at the speed of flight and
closer to the costof trucking by connecting with existing modes of road,
rail and air transport in order to expand freight transportation capacity.
 Fast and Efficient

11. Cargospeed systems transports high-priority, time-sensitive goods including
fresh food, medical supplies, electronics, and more. As a result, it offers
unprecedented customer experience, reliability and the freedom from having
to plan too far ahead.
 Renewable and Sustainable
o Cargospeed is unique in that it doesn’tneed to be passenger-only or
cargo-only. It is a mixed-use system that fully utilizes system capacity
and maximises economic and social benefits.
o Systems are 100% electric and can be powered by renewable energy,
creating a more sustainable solution for cargo transport thus
accelerating a sustainable and digital transformation of business
operations.
CONCLUSION
 Disruptive technology is the future of business. It shakes up markets and
makes business circles question which industries will succeed or fail
when the time comes for new adoptions. Disruption across industries is
diffusing at an unprecedented rate. And disruptive technology plays a key
role in the process.
 DP World is a leading enabler of global trade, creating productive,
efficient and safe trade solutions globally. According to its CEO,

12. Innovation will play a strong role in building an integrated logistics
platform which offers end-to-end solutions for cargo owners.
 Always searching for innovative ways to do things better, DP World
invests in new technologies to lead into the future of world trade. It
prides itself in encouraging diversity, welcoming innovation and creating
an environment where people feel empowered to strive and achieve
beyond expectations. DP World’s investments in the community ensure
that partnerships generate long-term value and opportunities for everyone
sustainably and responsibly.
 Along with technological advancements, the company has also
contributed towards protection of the environment by reducing
congestion and traffic in logistics and various trade routes. Boxbay, new
blockchain technologies not only reduce the burden of the workforce but
also reduce the footprints and damage to the environment.
 The company is working with an Indian technology accelerator platform
for logistics - Log-X - in Kerala and different parts of India looking for
new technologies and startups coming in to help the ecosystemthey have.
 The innovative culture of DP world instills eagerness in its employees to
constantly make technical advancements in order to accelerate digital
transformation to deliver safer, faster, efficient and more sustainable
solutions

16. This means that there’s a new,even bigger wave of innovation ahead of us and virtually every industry
will be affected by this change – one way or another.
Approximately half of the S&P Fortune 500 companies are said to be replaced in the next decade because
of disruption. Thus, it’s important for companies not to miss opportunities to adapt.
The Potential of Disruptive Technology
Risk-taking companies may recognize the potential of disruptive technology in their own
operations and target new markets that can incorporate it into their business processes.
These are the "innovators" of the technology adoption lifecycle. Other companies may
take a more risk-averse position and adopt an innovation only after seeing how it
performs for others.
Companies that fail to account for the effects of disruptive technology may find
themselves losing market share to competitors that have discovered ways to integrate the
technology.
Characteristics of disruptive innovation:
 Lower margins, at least in the beginning
 Higher risks
 Either disrupts an existingmarket or creates anew market segment in the existingone
 Sales arguments and measures of value are usually fundamentally changed
 Ofteninvolves new technologyand/or a new business model
 Happens slowlyat first until reaches the mainstream after which grows exponentially