DP World has accelerated efforts to drive digital transformation across its business operations worldwide using Oracle Cloud Applications (SaaS) in a move that industry experts say will likely spur further digital technology adoption in the UAE.
The digital transformation programme adopted by DP World supports the company’s strategy to develop complementary sectors in the global supply chain such as industrial parks, free zones and logistics, employing cloud applications that can increase efficiency, create new services and support diversification.
The global port operator is no stranger to new opportunities presented by going digital. DP World last year deployed a terminal analytics software from SAP at its flagship Jebel Ali Port, to streamline berth moves and container handling.
Through this new agreement, Oracle will develop a modern and integrated technology platform for DP World on a global scale, integrating the companies more than 65 container terminals around the world.
Oracle’s Cloud applications will enable the standardisation of key core processes including finance, operations, procurement and human resources.
As part of this new platform it will also incorporate technologies in Artificial Intelligence, Machine Learning, Internet Of Things (IOT) and Block Chain, to deliver smarter operations and create intelligent logistics to benefit customers.
“Our decision to partner with Oracle is driven by our vision for global connectivity through intelligent logistics, reducing costs and creating value for all our stakeholders,” said DP World group chairman and CEO Sultan Ahmed Bin Sulayem.
“Innovative tech solutions are the way forward in the 21st century and we’re equipping ourselves with an effective platform to grow into new sectors where technology can maximise efficiencies and enable us to deliver transformational products and services,” he added.
“This is all part of our innovative culture that complements the smart initiative of Dubai and the example set by our leaders to expand our horizons in the digital world. We are continuing our leadership role in transforming global logistics through digitalisation.”
Oracle Business Applications senior vice president (ECEMEA) Arun Khehar, said: “We are extremely proud of DP World’s strategic decision to drive its large scale digital transformation on Oracle’s cloud solutions. We are confident that the deployment of this new digital core will bring the next level of business value and differentiation needed to help DP World achieve its growth goals.”
Jim Bralsford, vice president, sales, EMEA, INTTRA, said in a recent interview that the UAE and wider Middle East region’s maritime and freight forwarding sector lagged behind the rest of the world when it came to the digital transformation of operations.
INTTRA is the largest neutral electronic transaction platform, software and information provider in the ocean shipping industry and seeks to digitalise the ocean freight sector to boost efficiency and lower costs.
“What’s often needed is for a large market leader to take that first step, forcing competitors as well as its clients to adapt as well,” he said.
This was seen on a grand scale most recently with Maersk Line’s major project to roll out IoT across its fleet, connecting all parts aboard all its ships with a head office in Denmark and using massive banks of data to find new, more efficient ways of operating its ships.
CMA CGM, Hapag-Lloyd and MSC have followed suit, exploring similar options. An executive at one of Maersk Line’s rivals told the Economist last year that: “We just watch what Maersk does and copy it.”
Many other maritime companies and operators in secondary industries on-shore, such as logistics, will be watching what DP World does and thinking the same thing.