Investment in technology-enabled services key in driving growth of mail and express service industry in KSA
Sustained technology investments and the introduction of a wider range of customised services are among the key factors that are driving the continued growth of the mail and express service industry in Saudi Arabia. The sector has also benefited from vastly improved quality standards in terms of security, efficiency and reliability, encouraging a greater number of people to avail of various mail and express delivery solutions being offered in Saudi Arabia. Due to this fact the Kingdom of Saudi Arabia achieved 3.22 per cent worldwide in the logistics services while Germany achieved the first place by 4.11 per cent. Nael Attiyat, Sales and Marketing Director of TNT SAB KSA, one of the leading express companies in the country, said: "Service excellence is a primary concern and serves as the backbone of our growth strategy in the KSA; especially that domestic developments lead by the planned Economic Cities emphasizes the strong demand for sector growth. The cities alone would contribute an additional 86-129 million tons per annum which is approximately 30% of the expected growth in cargo flow through the kingdom. Saudi Arabia domestic cargo demand alone is expected to grow by a 4 to 5 per cent through 2020, while international flows are expected to grow at 5 per cent and 7 to 8 per cent for air and sea cargo, respectively. Accordingly we have invested in a new range of technology solutions as well as in human resources, increasing our manpower headcount by up to 20 per cent in line with the opening of nine new branches across the country to accommodate the sector growth.” The latter has revealed that it has enjoyed enhanced business performance after introducing a new range of customised express service solutions designed primarily for KSA customers. TNT SAB KSA disclosed that technology-enabled services such as the company's enhanced tracking service have been greatly appreciated by KSA customers even as the company continues to aggressively invest in several other IT-based solutions such as scanning shipment online updating, express import cross-boarder booking, and internet booking on local accounts even for shipments from Europe. TNT SAB KSA pointed out that Saudi Arabia has emerged as a key growth area because of the country's large local and expatriate population, which creates a huge business potential for various domestic and international express services. TNT SAB KSA further revealed that the Saudi market has even witnessed increasing contributions to TNT's global operating income. As part of its growth plan for the Saudi market, the company disclosed that it will focus on major accounts in the country, work towards doubling its team, and restructure its sales team set up.
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