The Middle East is witnessing a shift in the logistics sector towards digitisation anchored on data analytics, robotics, automation, and artificial intelligence inhealthcare.
The healthcare landscape in the Middle East is transforming rapidly, and the onus of providing efficient and scalable solutions to meet that demand lies partly with the logistics sector.
The benefit of delivering products in a timely manner is a non-negotiable element in the healthcare industry. Timing is critical when the product is a life-saving medical device, and the consumer is a patient expecting it on time.
The success of an efficiently run supply chain is that it can communicate this with all the involved stakeholders to ensure that products will reach their end-point efficiently without suffering any additional costs.
Healthcare logistics is in the business of saving lives
The healthcare logistics market is expected to reach the value of $4 billion at a CAGR of 5.9% by 2029. The increased preference for biological pharmaceuticals, as well as the growing tendency of businesses to outsource, are the main drivers anticipated to drive market growth.
The healthcare logistics market is expected to reach the value of $4B at a CAGR of 5.9% by 2029.
For instance, over the years, the Kingdom of Saudi Arabia has grown its logistics sector and is now striving to position itself as a logistics powerhouse, in line with Vision 2030. To do so, the country has implemented digitisation initiatives backed by the government and the private and public sectors.
In a recent announcement, the Kingdom notified that it plans to establish 59 logistics zones to support the growth of supply chains. This is part of Saudi Arabia’s local supply chain development initiative, which the government announced would develop an industrial value chain for products.
Increasingly, healthcare companies in the Middle East are also relying on measures geared towards digitisation and implementing solutions in logistics that include:
- Warehouse management systems
- Robotics in warehouses
- Artificial intelligence
Integrating digital solutions in traditional logistics allows business owners the opportunity to innovate and even better facilitate more suitable services and improve overall efficiency.
Innovative logistics for the healthcare industry
As part of the “Future Delivery Program”, Aramex has completed the pilot phase of its drone delivery programme in Muscat, Oman, in partnership with US-based UVL Robotics – a drone technology provider. This will help the Middle East’s biggest courier company to reduce last-mile delivery times and transition to a more sustainable delivery fleet.
Aramex completed the pilot phase of its drone delivery programme in Muscat, Oman, in partnership with US-based UVL Robotics – a drone technology provider.
The pilot project will also overcome challenges faced by a traditional network, in the case of time-bound deliveries such as in healthcare, with enhanced speed, accessibility, and reliability, in addition to reaching remote terrains.
Meanwhile, in the UAE, a study by Abu Dhabi-based investment and holding company ADQ noted that the UAE logistics market is predicted to grow by 8.41% annually to reach $31.4 billion by 2026. The interesting fact is that the sector is witnessing a shift towards digitisation, with logistics companies prioritising optimal distribution through automation, internet of things, blockchain, and new warehouse management procedures.
The UAE logistics market is predicted to grow by 8.41% annually to reach $31.4B by 2026.
The Middle East and beyond
The integration of digitisation in healthcare logistics in the Middle East will benefit consumers and businesses alike, but is also expected to attract investors globally. The overwhelming support from governments with initiatives and plans, in addition to companies transforming the landscape, will, in the coming years, position the Middle East region’s healthcare logistics industry on the global stage.