SAP, the enterprise software company, and Aramex, the logistics and transportation solutions provider, will support the Middle East’s growth as a global logistics hub, and make it faster and easier to deliver packages, thanks to an innovative partnership, the companies announced.
Logistics is a key vertical being transformed in the Internet of Things era, with sensors and real-time Big Data analytics providing real-time visibility, automation of processes, productivity optimisation, enabling real time decision making and reduction of environmental impact across regional and global supply chains.
Demonstrating the Middle East’s growing role in global logistics, air freight currently transports 35% of internationally-traded goods, with the Middle East projected to be the fastest-growing international freight market at 4.87% CAGR to 2018. By 2018, the UAE will be the world’s third-largest air freight market, according to the International Air Transport Association.
Anticipating further growth, a variety of back-end SAP technology solutions will help Aramex to scale their global expansion in franchising and package delivery, and make it easier for customers to use their services, such as express delivery and e-commerce for consumers, and logistics and records and information management on the business-to-business side.
Iyad Kamal, Chief Operating Officer of Aramex, said: “We are delighted to be partnering with SAP. At Aramex we are always looking for new and strategic ways to innovate our business. We believe that this ability to rapidly introduce new technology solutions gives us a strong competitive edge and this platform consolidation will perfectly allow us to strengthen collaboration across business units. It will also help ensure that we maintain exceptional levels of service, for our customers and partners as well as our employees around the world. This is a natural, logical step in further streamlining our global business operations.”
Aramex has operations in over 350 locations across 60 countries, and more than 13,000 employees. Aramex’s Q3 2015 net profits increased by 7% year-on-year, from $18.9 million in Q3 2014 to more than $20.3 million.
Tayfun Topkoc, Managing Director, SAP UAE, said: “Dubai and the Middle East are taking an increasing role in global logistics, with the region’s organisations being among the world’s early adopters of technology in the Internet of Things era. With S/4 HANA real-time capabilities, Aramex will be able to anticipate the expanding logistics needs, and continue to simplify, innovate, and grow. We are proud to be a key innovation partner in Aramex’s digital transformation journey to deliver best practices in logistics and fuel their next generation of growth.”
Aramex will deploy a variety of back-end technology solutions, led by enterprise resource planning, and finance and accounting, to enhance its operations. Big Data analytics, powered by the SAP S/4 HANA real-time analytics platform, will provide the “engine” that powers its expansion.
In the coming months, Aramex is set to deploy solutions that optimise the management of their warehouse and transportation operations.
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