Saudi Arabia’s retail sector is undergoing a massive transformation, fuelled by Vision 2030.
Zeeshan Mir, Area Head of Integrated Sales – Retail, Lifestyle & Technology, A.P. Moller Maersk takes us along on the way forward.
Being dynamic in a world of trendsetters
At a time when the spending patterns are rapidly evolving and the platforms of purchase are both physical and digital (and interrelated), the Kingdom of Saudi Arabia has decided to embrace market disruptions and match global pace of consumption.
In a nutshell, the nation aims to channel its ambition by opening newer strategic investments to support business developments, and expand avenues for industries like Retail, Lifestyle, FMCG, Technology, Automotive and more.
Saudi Arabia is the 28th largest market for e-comm., with an estimated revenue of USD 10 billion dollars in 2023, whereas it is expected to grow to USD 22 billion dollars by 2027. So, growth of e-commerce has played and is going to further play a major role in the development of logistics in the region.
Unlocking resilience with customer-centric logistics
In today’s fast-paced and unpredictable global market, Saudi supply chains must be as agile as they are robust. Zeeshan Mir explains that at the heart of this statement lies a simple yet powerful principle: start with the customer and work backwards. By prioritising customer-centricity, businesses can build supply chains that are not only efficient but also resilient enough to thrive in an ever-changing landscape.
Many retailers these days are looking for integrated logistics providers, such as Maersk, who provide end-to-end supply chain solutions to move their goods. And such integrators provide multiple solutions to the same problem. This elasticity allows companies to tackle unexpected events by speeding up or sometimes slowing down their supply chains.
The power of visibility and smart data
Visibility is the cornerstone of an efficient supply chain. By integrating real-time smart data into inventory and delivery schedules, supply chain managers can make faster, more informed decisions: whether it’s securing multiple sources or shipments to meet fluctuating demands. Integrated logistics providers like Maersk are revolutionising this space with digital tools that offer unparalleled visibility without the need for hefty investments.
One retailer I worked with, facing complex supply chain challenges, invested heavily in an in-house visibility tool. Yet, maintaining data integrity was a constant struggle. In contrast, Maersk's plug-and-play digital solutions provide multi-carrier visibility from day one, regardless of whether your goods are moving with Maersk or another carrier. These tools not only save costs but also deliver 100% transparency across all journeys, enabling smarter decisions and smoother operations.
Brand awareness is on the rise in KSA, with more local consumers embracing international brands, even in rural areas. Demand for premium and luxury products is surging as well, as the economy grows and disposable income increases. Shoppers are also becoming more informed, prioritising brand transparency and ethics.
Moreover, e-commerce is booming across the Gulf Cooperation Council (GCC), driven by smartphone adoption, internet penetration, and shifting shopping habits. Digital payments are also on the rise, with cashless transactions reaching 23% in 2023 as consumers embrace mobile and online payments. This growth in e-commerce has driven the transformation of how goods are transported, stored, distributed and delivered.
Changing end-consumer shopping habits have direct impacts on a company's strategy towards their logistics and supply chains. This has resulted in expedited logistics services in first mile, middle mile or last mile deliveries, efficient fulfilment centres and efficient auto processing.
However, many retailers still lag in leveraging end-to-end visibility to monitor supply chain demand and harness the power of their data. Staying ahead of the curve means embracing these tools to enforce the right actions and decisions, turning data into a competitive advantage.
How the right 3PL can transform your supply chain
Navigating supply chain complexities can be daunting, but the right 3PL (third-party logistics) partner can transform challenges into opportunities. At Maersk, our Supply Chain Management (SCM) services are designed to simplify logistics complexities. With local expertise and a global infrastructure, we provide a robust supply chain backbone that empowers businesses to grow, exceed customer expectations.
The right 3PL partner, who can provide the right solution, end-to-end connections and the right attention and focus, can make retailers feel like they are in a partnership model rather than a customer-vendor model. Maersk has successfully achieved this through its integrated strategy and strong verticalisation.
Transforming connectivity with our new integrated logistics park
Customers in the region can also unlock new growth opportunities with Maersk's Logistics Park (MPL) in Jeddah. Strategically located near the port, MLP minimises transportation costs and time, while offering a seamless integration of end-to-end services across ocean, air and landside transportation. This state-of-the-art facility is designed to enhance your business efficiency, providing a one-stop solution for all your logistics needs.
Gain expert insights into the forces shaping Saudi Arabia’s retail landscape and explore Maersk’s logistics expertise that can empower your business.
Get in touch
Thank you for reaching out!
We’ll get in touch with you shortly.
Please be aware that if you’re new to Maersk, you’ll first receive an email to verify your information before we can reach out.
If you want easy access to our products and services, you can also create an account here:
Something went wrong.
Get in touch
Explore more of our logistics solutions that suit your business needs to advance in the Retail industry.
Anything you need, we’re here to help
Logistics services
Contact us
Ready to ship?
By submitting this form, I agree to receive logistics related news and marketing updates from A. P. Moller-Maersk and its affiliated companies via e-mail. I understand that I can opt out of such Maersk communications at any time. To see how we process your personal data, please see our Privacy Notification.