A new study conducted by “Economist Impact”, the trade arm of the “Economist” group, and the Dubai World Ports Group “DB World”, showed that business leaders around the world are optimistic about the path of trade movement in 2024, despite the challenges witnessed in 2023 and the rising geopolitical tensions. .
The study, which was revealed during the activities of the World Economic Forum “Davos”, stated that the main motivation behind this optimism is the growing belief that technology will bring about a huge shift in the efficiency and flexibility of supply chains, as companies re-evaluate the risks in their supply chains, and are moving toward… Towards strategies for geographical proximity to “friendly” centers of manufacturing and consumption and the adoption of dual supply chains, amid mounting concerns about protectionism, global fragmentation, and political instability.
The study, titled “Trade in Transition,” captured the views of trade experts and senior executives in a variety of regions and sectors, noting that this period of unprecedented transformation, increasing geopolitical risks, and the pressing realities of the impact of climate change and significant advances in technologies, position companies… We face complex challenges, but at the same time they open up horizons of promising opportunities.
A global survey conducted as part of the study, which included 3,500 corporate executives, revealed that technologies that improve the effectiveness and flexibility of supply chains are the main source of optimism for business leaders when they are asked to evaluate the future of global trade, and that the widespread adoption of artificial intelligence is an essential factor. In this optimism, 98% of executives use artificial intelligence technologies to make a radical change in at least one area within their supply chain management operations, from finding solutions to inventory management problems, to reducing trade expenses, to improving transportation routes.
A third of the companies surveyed use artificial intelligence techniques to reduce the overall costs of business operations and enhance resource planning and supply chains, while more than a third of companies believe that enhancing the use of digital tools to improve inventory management represents the most effective strategy in reducing the overall costs of trade and supply chains. .
Sultan Ahmed bin Sulayem, Chairman of the Board of Directors and CEO of DP World Group, said: “The results contained in this report show remarkable optimism, despite companies being forced to operate in an rapidly unstable environment, and governments can also enhance the benefits.” economic development and reaching its maximum limits by providing the predictability that companies need, while reducing trade disputes. In light of this, tariffs must be reduced, in addition to cooperation with the private sector, to expand the use of technological innovations, especially in the fields of digitization, automation, and artificial intelligence. “This allows for greater efficiency and clarity.”
• 98% of executives use artificial intelligence technologies to transform supply chain management.
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