Few years back, the rate at which technology was adopted in logistics sector, was sluggish. Today, the global logistics sector is adopting technology at a different pace altogether, for efficient operations which, in turn, is helping their clients to save billions of dollars, said Liji Nowal, CEO at ODeX.
In an interview to Transport & Logistics Middle East (TLME), Ms Nowal said that the COVID-19 pandemic have speeded the adoption of digital technologies by several years. "It was the pandemic that caused a disconnect between the stakeholders' ability to communicate and commute, thereby affecting the network," she said.
However, digitalization offered a way to maintain the network's pace, although slowly at first but rapidly accelerating over time, added Ms Nowal.
Following are excerpts of the interview...
What is ODeX all about?
ODeX is a Digital platform for exchange of information, documents and payment facilitation in the ocean shipping industry and EXIM trade. We connect all key stakeholders of the EXIM ecosystem to help manage multiple aspects of trade.
What made you enter the supply chain industry as a solution provider?
None of the ODeX founders are from supply chain – but in our former organization we got an opportunity to develop a solution for Logistics Service Providers (LSP’s). We were surprised that such a critical industry was lagging so far behind in digitization.
We identified that there is a real need for improving the “inter-stakeholder” interaction, and improve the overall industry efficiency, by simplifying the interactions between stakeholders. We then set out to build a platform that seamlessly connects all stakeholders across Ocean Shipping Eco system.
ODeX has reduced the time taken to clear cargo by over 50% for our users. Please elaborate?
We brought about simple, yet powerful changes to the way the industry functions. Pre-ODeX, customers had to submit multiple documents at physical counters of Liners, wait of payment confirmation and collect release orders physically.
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Today most of these tasks are carried out online. And add to it the seamless payment process that we provide, the total TAT for cargo release has dropped significantly post ODeX adoption.
To reduce TAT even further, we integrate directly with Agents, Shippers, Consignees and Liners – thus reducing manual tasks.
How responsive has the industry been to adopting tech?
When we started our services in 2015, adoption was slow. But today we see that the industry is open to embracing innovation in Logistics Tech, and often eager to implement any change.
How has the pandemic affected the supply chain network?
It was the pandemic that caused a disconnect between the stakeholders' ability to communicate and commute, thereby affecting the network. However, digitalization offered a way to maintain the network's pace, although slowly at first but rapidly accelerating over time.
What is your opinion of the Middle East furthering its growth as an emerging logistics hub?
Geographically situated between East and West, it is an ideal location for connecting and servicing the two ends of the globe via road, air, and sea.
In addition, the logistics facilities and infrastructure, along with its low costs, free-trade policies and agreements, and growing investments and trade links, make it a profitable gateway for businesses.
In fact, it is estimated that the logistics industry contributes approximately 14% of UAE's GDP, and this percentage is expected to continue to rise.
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