Automation is need of the hour in GCC logistics

Forklifts are the most popular forms of mechanisation in the GCC logistics industry.

The GCC logistics market needs automation in materials handling to meet growing challenges in the region. The current level of mechanisation within the sector is relatively low, according to new research.
A survey by analysts Frost & Sullivan of more than 200 logistics end-users from various industries across the GCC indicated that there is strong intent to adopt automation in warehousing and transportation to improve operational efficiency and processes.
According to the survey, forklifts are the most popular forms of mechanisation in the GCC logistics industry, with 37 per cent of respondents saying they use this equipment, followed by coding and labelling devices (34 per cent of respondents) and warehouse trucks (26 per cent of respondents).
However, the overall opinion within the GCC logistics market is that the level of penetration of automation is low, with over half of the survey respondents saying they don't use automated technology in their logistics operations because such systems were too expensive.
The world's leading suppliers of materials handling systems will look to reverse this trend and capitalise on the latent demand for automated and semi-automated technologies at Materials Handling Middle East 2015, taking place from September 14 to 16 at the Dubai International Convention and Exhibition Centre.
The biennial three-day event is the wider region's only dedicated trade and networking event for intralogistics, warehousing, supply chain management, freight and cargo, and will feature more than 150 brands from 17 countries.
"Automation of materials handling processes will become increasingly prevalent in the regional logistics industry as it rapidly scales up to meet the needs of the burgeoning market," said Ahmed Pauwels, CEO of Messe Frankfurt Middle East, organiser of Materials Handling Middle East 2015.
"The tangible benefits of automation include the faster transit of goods through the supply chain, processing accuracy, minimised manpower and quality control. The long-term benefits and cost savings far outweigh the initial capital outlay. We expect a growing number of regional buyers to source the latest technologies to suit their business needs at Materials Handling Middle East."
Among the headline names at Materials Handling Middle East are Daifuku from Japan and SSI Schaefer from Germany. The powerhouses are the world's top two suppliers of materials handling systems and the only two providers that surpassed $2 billion in revenue in 2014.
Other Top 20 worldwide materials handling systems suppliers with a strong focus on automation include Spanish company Mecalux, Swisslog from Switzerland, Kardex Remstar from Cyprus and US-headquartered Bastian Solutions.
Meanwhile, Austrian first-time exhibitor LTW Intralogistics will introduce to the Middle East its turnkey intralogistics systems, including stacker cranes, conveyor systems and software. CEO Konrad Eberle says he believes the Middle East is ready for its cutting-edge technology.
- abdulbasit@khaleejtimes.com