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DMS Lat 25° 16' 37.1532'' N
Lon 55° 17' 46.4964'' E
SHIPPING
IS GOING
PAPERLESS
and we're all going to benefit
34903 93409
01
The digital revolution sweeping shipping and logistics
When a disaster like the Ever Given incident occurs and blocks the fastest maritime shipping route between Europe and Asia, a large part of the problem is that businesses don’t know where all their in-transit inventory is, leaving them with little room for manoeuvre.
A resounding 79% of organizations surveyed by DP World said they had inadequate visibility over their supply chain. It’s an issue that cuts across the industry, but one the company hopes to resolve with its CARGOES Flow platform, which offers businesses end-to-end tracking. It’s not a new concept – we enjoy the benefits when ordering taxis, takeouts, and packages, but one which has so far been rare in the cargo industry.
A key part of the platform is exception management, which notifies businesses as soon as something isn’t going to plan, offering algorithmic and AI-driven recommendations for alternative routes or solutions. Fundamentally, the feature empowers business to act in the face of disruption, rather than being subjected to it.
And the same data also serves to smooth the flow of day-to-day deliveries, something DP World customers say has cut their shipping costs in half.
02
Streamlining the flow of cargo
There are dozens of steps in getting a shirt from Bangladesh to Boston, and each one requires forms, fees, and duties. And in a stubbornly paper-based industry, the inefficiency adds up. “Sometimes the paperwork would arrive after the container,” says Bhaskaran.
But once the data is digitized, it can be transferred immediately. With integrated systems between, for example, customs and warehousing, the data is exactly where it needs to be, when it needs to be there. By the time the container arrives at a port, the customer will have already had a notification of duties on their smartphone and the opportunity to pay. The goods can simply sail through.
In short, the better data flows, the better cargo flows too. And that resonates through every node in the supply chain, from farm or factory right down to keeping food and products on shelves and in warehouses.
This lubricating role of data is vital. However, the biggest impact of shipping’s digitization is arguably in lowering the barriers to accessing global commerce.
S 25° 16' 37.1532'' N
S 25° 16' 37.1532'' N
S 25° 16' 37.1532'' N
In short, the better data flows, the better cargo flows too. And that resonates through every node in the supply chain, from farm or factory right down to keeping food and products on shelves and in warehouses.
This lubricating role of data is vital. However, the biggest impact of shipping’s digitization is arguably in lowering the barriers to accessing global commerce.
03
Creating opportunities
It’s easy to assume that the 21st century world is already as connected as possible. But for small businesses in emerging markets, the pervasive trade network can be difficult, or impossible, to access. At the heart of the problem is an estimated $5 trillion finance gap for small businesses worldwide.
Closing this gap was the motivation behind CARGOES Finance, DP World’s blockchain-based platform for securing affordable financing. Financial institutions are often wary of lending to small businesses, often because there is little data on which to assess risk. Using much of the same data in CARGOES Flow, the company acts as trusted intermediary, demonstrating, for example, trading history, and performing key regulatory functions such as Know Your Customer (KYC).
And by leveraging blockchain smart contracts – which automates transactions – CARGOES Finance can also offer early payments and invoice financing, to supply vital working capital.
In essence, DP World are using data to inject trust between financial institutions and small businesses, democratizing international trade in the process.
04
Enabling global trade
We are trade enablers,” says Bhaskaran. This customer-focused philosophy is written through all its digital initiatives. “If there is a mango farmer in Ethiopia, we ask what can we do to help him get his mangoes to the rest of the world? And then we build him a solution.”
The company is true to its word. When COVID-19 brought footfall to the Dragon Mart mall in Dubai to a trickle, the resident businesses were at risk. Predominantly independent operators, they lacked the resources of national or international chains, so DP World went as far as building them their own ecommerce solution so they could continue to serve a broader market. Trade picked up and the independents were suddenly participating in global ecommerce.
The mission now, says Bhaskaran, is to scale and expand the company’s digitization to include as many people as possible. As digital solutions like these pervade the sector, shipping will become better equipped to negotiate shocks like the Ever Given. But it will also lower the barriers to include anyone with a product to sell. And that’s good news for all of us.
