Saudi Logistics Industry
SCM is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.
Moreover, Supply Chain Management constructs a connected network with suppliers to develop and implement supply chains that are as efficient and economical as possible. Hence, the supply chains cover everything from production, to product development, to the information systems needed to direct these undertakings.
It is worth noting, that Supply Chain Management strives to centrally control or link the production, shipment, and distribution of a product. By managing the supply chain, companies are able to cut excess costs and deliver products to the consumer faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales, and the inventories of company vendors. Supply Chain Management is based on the idea that nearly every product that comes to market results from the efforts of various organizations that make up a supply chain.
According to Riyadh-based Saudi Market Research, the Kingdom plans to inject $147 billion into the development of the transportation and logistics industry to turn the country into a transportation hub.
Saudi Arabia’s strategic location has attracted foreign players into the Kingdom’s logistics industry. To share with you an example, the US logistics giant FedEx has announced its decision to invest $400 million into domestic logistics operations to attract other foreign players to contribute to the vast developments, said the report.
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The Kingdom is already the leading transportation and logistics operator in the Middle East and North Africa, earning $27.6 billion annually.
Also fueling the Kingdom’s supply chain ambitions is the development of new trade zones such as Jazan Economic City, NEOM Airport, SPARK zone, and the Red Sea Gateway Terminal.
Lastly, the forecast exceeds the Kingdom’s pre-pandemic levels and is expected to continue its growth until 2025, when the industry reaches $50 billion in value.
P.S Numbers and Source are: Logistics and Saudi different websites.?