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Mobile market

by ArabianBusiness.com staff writer  on Friday, 19 June 2009

How can warehouse operations in the Middle East benefit from the latest developments in handheld computing?

Logistics managers are facing the arduous task of boosting their supply chain efficiencies while reducing the overall cost of operations. It's a challenging scenario and, with limited budgets on hand, the timing is perfect to scour the technology market in search of cost-cutting solutions. After all, even the smallest of improvements can produce a significant dividend on your company's bottom line.

To support this movement, the latest developments in warehouse management systems, RFID technology, and automated storage handling have lured the Middle East logistics industry towards an electronic era, leading to the gradual (and ongoing) demise of manual processes. In particular, the mobile computing sector has experienced a period of continued growth in the region, with estimates that annual demand from customers has increased by approximately 20% over the past five years.

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"The penetration of mobile computing in the Middle East logistics industry has been extremely high in recent years and this trend is expected to continue in the future," explains Parminder Kaur Saini, industry analyst at research firm Frost & Sullivan. "Although the global recession has led to budget cuts around the world, the demand for mobile devices in regional warehouses is being driven by the need for organisations to have the best systems in place. Manual procedures are no longer desirable for companies that want to lead the field."

The increased focus on mobility in the supply chain has translated to a range of new products and applications, each designed to improve the productivity of companies. In theory, the implementation of such devices will provide a user with remote access to the likes of warehouse management systems and customer relationship management software, therefore boosting the quality, speed and accuracy of their daily operations. This also has a domino effect by improving a company's customer service levels and, ultimately, their business profitability.

"These devices are capable of increasing the visibility of supply chain operations and minimising a company's losses due to theft, management inefficiencies and damages," continues Saini. "This is true for companies that manage their supply chain inhouse or 3PL companies that operate a network of warehouses. However, the success factor is dependent on selecting the right product and that is sometimes a challenge."

A number of factors should be considered when selecting a mobile computer, according to Saini, especially with the growing list of suppliers that are targeting the Middle East. The initial step is completing an evaluation into current procedures, including the strengths and weaknesses, allowing a company to highlight its most prominent areas for improvement. Once this is accomplished, it's time to search for suitable products - taking into account everything from system integration, functionality and ergonomics to ruggedness, durability and the vendor's regional presence.

"This region has emerged as a lucrative market for mobile computing and a growing number of warehouses will soon be completed in developments such as Dubai Logistics City, Bahrain Logistics Zone and Prince Abdul Aziz Bin Mousaed Economic City, which will help to fuel demand even further. This explains the presence of global manufacturers such as Intermec, LXE, Motorola, Datalogic, Psion Teklogix and Honeywell Scanning & Mobility, each offering something unique for the customer," says Saini.

"When researching the market, it's important to remember your budget at all times and clearly list your current requirement and goals, in addition to those that are expected in the future too. Suppliers are keen to win your business, especially in the current environment, so don't be afraid to ask lots of questions, ask for references and test the products for yourself. Such extensive research is necessary to ensure a company has chosen the right product for their operations and can lead to a faster return on investment (ROI)."


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