Catalysed by the digital transformation and the increased availability of cutting-edge innovation, the MENA region has witnessed a boom in ecommerce adoption in recent years. Rising demand for these quick and convenient solutions has meant that new and established delivery companies are actively embracing new technologies in order to enhance customer experiences and maintain their competitive advantage.

In this context, the use of Internet of Things (IoT) technologies is proving crucial for many to realise the potential of their connected devices – from machinery to mobile phones and sensors to vehicles – all to gather real-time data about their business operations and make quick, smart decisions.

How delivery companies can unlock higher operational efficiency using IoT

In this respect, for companies that rely heavily on vehicles for their day-to-day service operations, such as delivery operators, IoT fleet management solutions have opened up a host of advantages. With advanced tracking tools offering insights into traffic data, vehicle location, fuel consumption, and even driver behaviour and work-time, this data can be used to reduce operational costs, increase efficiency and detect potential risks proactively to prevent any disruptions.

In addition, IoT fleet management solutions can be combined with other features that provide real-time visibility into temperature and other environmental conditions, enhancing the reliability of delivery companies dealing with temperature-sensitive goods and seeking effective means to ensure successful deliveries.

According to estimates, the ‘quick commerce’ or ‘rapid delivery’ market in the MENA region is anticipated to reach USD $20 billion in 2024. Of particular prominence here is the food delivery sector, and data has shown that the revenue in the Middle East market has increased twofold in size since 2020.

Closer to home, Qatar’s online food delivery market is booming, driven by a growing population of tech-savvy consumers who want convenience at their fingertips. Figures from global market research company, Statista, show user penetration in the Qatari meal delivery market is estimated to be at over 31 percent with projected users set to grow to 1.1m by 2028.

 

How IoT can help meet customers’ rising demands

Rising customer expectations around faster deliveries and more reliable services, on top of new consumer preferences for scheduled deliveries, direct communication with riders, and rider location tracking, has further prompted delivery companies to deploy IoT solutions. Through tailored solutions accessible via their smartphone, tablet, PC or laptop, delivery companies can make use of IoT fleet management technology to keep track of the vehicles and drivers that are at the heart of their businesses. Crucially for drivers, IoT solutions can assign tasks, schedule jobs, plan routes and provide instant communication methods. Through visibility on driver behaviour and performance, operators can ensure employees are properly rewarded for productivity and efficiency, leading to greater employee retention and undisrupted business operations as a result all the while enhancing customer satisfaction and experience.

In our busy urban environments, data on traffic congestion can give businesses an edge to effectively plan delivery routes and make sure customer expectations are met, as promised. Instant and direct communication through IoT fleet management platforms also means that delivery companies are better aware of driver whereabouts and are able to send or receive alerts to advance driver safety at work. This also has a bearing on budget monitoring, as companies are able to optimise routes and cut fuel costs, as well as control incidental costs such as ticket fines and insurance premiums.

Future-proofing the delivery industry

With a world of possibilities to digitally transform and scale up their business, delivery companies have a lot to gain from using IoT fleet management solutions not only to overcome current challenges, but also to be better prepared for issues that could arise in the future in relation to fleet and driver management.

What’s more, the technological benefits presented by increased adoption of IoT including automation of many business processes, along with the efficiency and personalization of customer requirements, coupled with increased optimization right along the supply chain could drive Qatar’s retail sector into a new era of prosperity, further adding to its economic advancement.

To find out more, visit: https://www.vodafone.qa/en/business/services/iot/fleet-management#fleetmanagement