Growth of the logistics sector in Saudi Arabia and how OTO improves shipping operations

Over the past 4 years, since the launch of OTO, many commercial activities belonging to different and growing industrial sectors within the Middle East and North Africa region have benefited from OTO as an effective technical solution that contributes to improving their shipping operations and managing all operational processes smoothly, making OTO, as a shipping gateway and a leading logistics platform in the Arab world, a pivotal point contributing to enhancing competitive value and bringing about a revolution in the shipping sector in the region.

Let's take a deeper look at the role of the OTO shipping gateway in developing logistics management systems and improving shipping operations in Saudi Arabia, and reducing the costs and times of order delivery, but first, let's review some important statistics related to the shipping and logistics sector in Saudi Arabia.

Statistics on the growth of the shipping and logistics sector in Saudi Arabia

• The logistics market in the Kingdom is in a constant state of change

The shipping and logistics sector in the Kingdom is witnessing enormous changes in various fields. With the accelerating technological developments, changing customer needs, and increasing global competition, the market has become a dynamic environment that requires companies to adapt to keep pace with these changes.

• According to the latest reports, the size of the logistics market in Saudi Arabia is estimated at $25.33 billion in 2024, and is expected to grow at a compound annual growth rate (CAGR) of 5.36%, reaching $32.88 billion by 2029.

• The logistics sector in the Kingdom of Saudi Arabia in 2024 is also witnessing a great diversity in business models related to logistics services, including 2PL, 3PL, and 4PL, which meets the diverse supply chain needs and contributes to improving shipping operations, ensuring the delivery of products to customers at specified times.

• The Kingdom’s transport infrastructure is witnessing great diversity

The Kingdom’s infrastructure includes various ways to transport goods, including land roads, waterways, and air lines. This great diversity reflects the strategic role of a strong infrastructure in achieving geographical and economic sustainability in the region, as the diversity of transportation means contributes to enhancing the efficiency of transporting goods and delivering them at specified times.

• The impact of the logistics sector in the Kingdom on various industries

The role of the logistics sector is not limited to transporting goods only, but it is the backbone of many other industries, including manufacturing, retail trade, healthcare, automotive industry, communications, etc., as the efficiency and performance of the logistics sector directly affects the efficiency and performance of other related industries.

This widespread impact confirms the vital role played by the logistics sector in the Saudi economic landscape, as it contributes directly to supporting many other industries, which reflects positively on economic growth, providing job opportunities, and enhancing the Kingdom’s competitiveness.

• Enhancing the benefit of technological integration

The logistics sector is witnessing an increasing trend towards relying on cloud software solutions (SaaS) to integrate supply chain operations and streamline their management, which leads to enhanced efficiency.

Instead of incurring the costs of infrastructure, development, and maintenance, companies are increasingly moving towards using cloud software solutions that allow access to specialized logistical applications and resources online, without the need for costly investments in private infrastructure.

How did OTO contribute to improving shipping operations in Saudi Arabia for various sectors?

Given the great capabilities OTO possesses, built on innovation, development, and a strategic approach, this has qualified it to be a central point in the region that contributes to bringing about a revolution in shipping operations in various industrial sectors.

Perhaps the most prominent sectors that benefited from OTO are:

• Retail sector

The retail sector – especially e-commerce – is at the forefront of adopting OTO’s innovative logistics solutions, which contributed to enabling retailers to improve their supply chains, starting from inventory management all the way to final delivery.

OTO, as a leading logistics platform, allows technical integration and direct dealing with more than 200 regional and international shipping companies, which allows for a variety of shipping options based on cost, speed, and reliability, and this leads to significant reductions in shipping costs and improvements in delivery times.

• Healthcare and pharmaceutical sector

OTO’s innovative solutions play an effective and important role in this sector due to the sensitivity of the products related to it, as they contribute to ensuring timely delivery of medical supplies and medicines, which is critical, and help maintain a stable and reliable supply chain.

The capabilities and potential that OTO possesses contribute to dealing with special drug shipping conditions, such as temperature control to ensure the safety of this type of sensitive product.

• Food and beverage sector

OTO, as a leading logistics platform, possessed the high ability to deal with complex logistics requirements, including the supply chain for perishable goods, as a factor contributing to changing the rules of the game in the food and beverage sector. The platform's effective routing and scheduling capabilities ensure that products arrive fresh, while maintaining quality and compliance with health laws and regulations.

OTO serves this field by providing many shipping services such as refrigerated shipping, frozen shipping, and food delivery services, in addition to fast and super-fast shipping, and others.

• Electronics and telecommunications sector

In the fast-evolving telecommunications and electronics sector, companies benefited from OTO's innovative logistics solutions, which contributed to rapid adaptation to changing market requirements and the launch of new products, enabling these industries to maintain a competitive advantage through effective logistics management, as well as speed of response to customer requirements and delivery of shipments to them in the fastest time and best quality.

In conclusion

OTO, as a leading shipping gateway in the Arab world, provided a comprehensive and innovative solution that contributes to overcoming all challenges related to shipping operations in all these diverse sectors and others.

By providing real-time data, analytics, and integration with many shipping companies, sales channels, and Enterprise Resource Planning (ERP) systems, OTO enables companies to improve their shipping operations, reduce costs, and improve delivery times.

As the field of logistics continues to evolve, OTO's role in improving effective, cost-effective, and timely shipping operations becomes more important and indispensable, as it effectively contributes to enhancing the competitive value of commercial activities.