Rajeeb Chowdhury will provide a brief overview of both opportunities and challenges facing global e-merchandisers and logistics service providers in Saudi Arabia and Middle- East . While doing so, the speaker will illustrate examples of some of the practical and innovative solutions offered by NAQEL Express along its e-value chain - from the first mile pick-up to the final mile delivery. Key topics covered during this session are: o Market opportunities: Typical nature of opportunities in Saudi Arabia and other Middle East countries fore-merchandisers around world. o Last-mile delivery process: best-in-class methods pursued to successfully exploit those opportunities and meet the individual needs of on-line customers. o Analytics and Al (Artificial Intelligence) solutions: aimed at optimizing productivity and customer satisfaction.

1. Leaders &
Heroes
THE DELIVERY
CONFERENCE
RAJEEB CHOWDHURY
Chief of Customer Services & Planning
e-Commerce Opportunities in Saudi
Arabia and Middle East
Solutions Theatre

2. e-com Opportunities
In Saudi Arabia & Middle East
By Rajeeb Chowdhury
Chief of Planning & Customer Service

3. Agenda
Opportunities Challenges Solutions
1 2 3

4. Opportunities: Digital in the Middle East & Saudi Arabia
1
Opportunities
60% 38% 127% 34%
50% 37% 66% 34%
Middle East
World
Saudi Arabia

5. Opportunities: Why Saudi Arabia?
Basket ValuesMarket Size Consumer Behavior Customs Clearance
 70% Population < 30 Years
 High Duty Free Value
 High consumer buying power
 Shopping = Entertainment
 70% - 80% Users prefer COD
 Low returns after Order
 USD 10 Billion
 62% of GCC Market
 Fashion (31%); Electronics (31%);
Toys (13%) Furniture (11%)
 Same Day Clearance
 High De-Minimums Value: USD 266.
 Low Customs Duty for High Value Ship
1
Opportunities

6. Opportunities: Why Saudi Arabia?
1
Opportunities
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Imported from
China = 72%
Rest of the
World = 28%
2017ShipmentsPerDay
Annual
Growth =
240%
NAQEL Express Saudi Arabia: Example of volume growth of e-commerce Final Mile Delivery
Ramadan
Christmas

7. Agenda
Opportunities Challenges Solutions
1 2 3

8. Challenges: Key Challenges Facing e-commerce logistics in Middle East
Delivery
Capacity
Challenges
Conservative
Culture
Climate
 Constraints in Final Mile Capacity
 E-com Logistics companies struggling to
deliver service quality desired by Customers.
 Drop in Courier Productivity witnessed during
the summer months due to extreme weather.
 Delivery of temperature sensitive goods
require special care.
 Cultural sensitivities around Home Delivery
 Customer conflicts with couriers due to cross-
cultural differences.
2

9. Challenges: Key Challenges Facing e-commerce logistics in Saudi Arabia
Driving &
Accessibility
Challenges
Cash
Culture
Geographical
Coverage
2
 A sizeable proportion of consumer base do not
drive.
 Home Delivery preferred over collection from
Pick-Up/Drop-Off Centers.
 Cash On Delivery Mode preferred.
 Low level of Trust on using Credit Card
online.
 Customers widely spread across the country
 Delivery to Remote Areas often a Challenge
for the carriers
 Complex Address System

10. Agenda
Opportunities Challenges Solutions
1 2 3

11. Solutions: Multiple Tracking Options for Customers
Solutions
3
Using
Mobile
Number
Using
Shipment
Barcode
Number
Using
Shipper
Reference
1. Track Location of Shipment
2. Track Location of Driver / Courier

12. First Mile
Pre-Sorting
API & Co-Branding
Solutions: e-Value Chain & Our Services
Solutions
3

13. First Mile Line Haul Customs
Pre-Sorting
Air Cargo
Services
Own Customs
Clearance
API & Co-Branding
Solutions: e-Value Chain & Our Services
Solutions
3

14. First Mile Line Haul Customs
Warehousing
& 3PLFinal Mile
Pre-Sorting
Air Cargo
Services
Own Customs
Clearance
API & Co-Branding
Mobile
Application
SMS Notification &
Address Capture
Cash-On
Delivery
e-Fulfillment
Processing
Returns
Call Center
Support
Delivery
Solutions: e-Value Chain & Our Services
Solutions
3

15. Solutions: Enhanced User Experience using Mobile App
Solutions
3
Shop On-line using
our Partners
(M-commerce Experience)
Track Shipment Pick-Up & Manage
Shipment
Location Mapping via SMS
& Mobile APP
Call Center Support
Cash On Delivery
Home Delivery Returns Processing

16. Solutions: Using AI Tools & Data Analytics
Solutions
3
Complaint
Handling
Methods
Customer
Interaction
Methods
Customer
Delivery
Methods

17. Solutions: Delivering Operational Efficiency using AI Tools
Solutions
3
POINTER:
NAQEL Route optimization Tool
First Mile:
Pre-Sorting
Dynamic Courier
Route Design
Real-time
Productivity
Monitoring
Automated
Delivery
Outsourcing

18. Solutions: Maximizing Value for e-Sellers
Solutions
3
e-Sellers can
co-brand & Sell
using NAQEL
Platform
Lowest Returns
in the Industry
12%
Co-Branding &
Selling
Prompt Return
of COD Amount
Comprehensive
Cash Collection &
Remittance
Process Managed
On-line

19. NAQEL Express Head Office
Samena Building, 1st Floor,
Eastern Ring Road, Exit 17,
Riyadh, Saudi Arabia
Tel: 920020505
P.O. Box: 99931 Riyadh 11625, KSA
Web: www.naqelexpress.com