Thomas Kipp, Senior Advisor for Transportation, Travel, and Logistics at Roland Berger, emphasized that data will be the most significant trend in technology in the future. Speaking at the WORLDEF DUBAI event, Kipp stated, “The point of sale can be either retail or online, but all these processes must work together. From a data perspective, access to real-time or near real-time data will be extremely important over the next 5-6 years.”
A Seasoned Expert in Digital, E-Commerce and Logistics Sectors
Having held C-level roles in leading Logistics companies like DHL Group, Aramex and Naqel Express for the past 20+ years, Kipp has developed extensive expertise across digital, e-commerce as well as related Logistics sectors. He is currently a Senior Advisor at Roland Berger, a leading global consulting firm, where he focuses on logistics, transportation, and supply chain issues, particularly in the Middle East, while also working on international projects.
“Access to Real-Time Data Will Be Crucial in the Next 5-6 Years”
Kipp reiterated that data will be the key technological trend of the future, explaining, “Why do I say this? Because what you truly need to understand is how to conduct business with your end-to-end supply chain and how to connect suppliers, logistics providers, and points of sale. Whether the point of sale is retail or online, all these processes must operate in harmony. In terms of data, access to real-time or near real-time data will be of paramount importance over the next 5-6 years.”
“Retail Essentially Functions as a Warehouse”
Kipp further elaborated: “How do you optimally balance service levels at the point of sale with inventory levels and products in transit? Suppliers must also grasp this concept because they are responsible for ensuring that manufactured products are available for sale. I believe this is the future of supply chains and data. Looking ahead, real-time data access will be essential for supply chain management, as it plays a crucial role in warehouse operations.”
He continued: “Today, you can sell products online while simultaneously operating brick-and-mortar stores. Essentially, your retail store functions as a warehouse. This raises an important question: How does this impact inventory management? When a product is taken from the store for shipment, it results in a reduction in inventory. If you do not recognize this within a couple of hours, inventory balance, replenishment, and calculations may be inaccurate. This is why access to near real-time data will be critical. Many companies are already excelling in this area.”
Challenges in Cross-Border E-Commerce
Kipp also discussed challenges in cross-border e-commerce, stating, “The primary challenge is how to create a reliable shopping experience. For instance, if you and I want to purchase something from the U.S., it may seem simple because targeting that market is crucial. However, how can we ensure a trustworthy experience? What about my personal data? Can I pay using the same payment method I use domestically? Can I shop with the same confidence as I do locally?”
He added: “When considering cross-border e-commerce, it is essential to clearly identify the target consumer. Is the consumer in the target market the same as one in my home country? Take China as an example: If I were living in China, I would use eBay, WeChat, and expect customer service in Chinese. If you aim to sell to China, are you prepared to invest in organizing this experience to gain consumer trust in your product, service, and overall shopping experience? These are key considerations for businesses embarking on this journey.”
Understanding and Managing Returns
Another major issue, according to Kipp, is managing returns efficiently on a global scale. “Although there are regional solution providers, return processes remain complex and challenging. Some companies are developing scoring models to predict return probabilities based on factors such as product profiles, consumer behavior, and country trends. While this is helpful, businesses must still understand how to manage returns effectively.”
Touching on return-related technologies, Kipp highlighted that “Dubai Customs utilizes blockchain technology, which can facilitate seamless and verified transactions. Solutions like these are essential. In Dubai’s customs and logistics sector, there are examples of how such technology simplifies processes for everyday consumers.”
“For Me, the Key Word Is Resilience”
Kipp also addressed human logistics, emphasizing the importance of resilience in supply chain management. “When I think about supply chains and their future, the key word that comes to mind is ‘resilience.’ Resilience is about how well a supply chain responds to and recovers from disruptions. One of the best examples is COVID-19. Since the pandemic, I feel like the industry has been in a constant state of crisis, driven by various factors. COVID-19 was an unexpected crisis, but in recent years, we’ve witnessed increasing geopolitical tensions and trade issues. Take the Red Sea situation, for example—these are real challenges impacting our sector. The critical question is: How can we respond effectively?”
Kipp elaborated: “Many e-commerce companies assume they are exempt from these challenges because they are accustomed to dealing with shipping disruptions, particularly to the U.S. However, if trade issues persist, can e-commerce sellers still ensure a reliable and predictable supply of products? Or should they rethink their approach?”
Expanding Supply Base and Strategic Partnerships
Kipp suggested that businesses should consider diversifying their supply base. “Another question is how to collaborate with different partners for domestic delivery and logistics. Strategic partnerships play a crucial role when establishing an e-commerce infrastructure or ecosystem. Additionally, predicting consumer demand is essential for financial planning. For instance, in this region, we know that certain food products like sweet potatoes are highly demanded during Ramadan. How do you forecast this demand accurately? How can you improve your predictions and adapt your business model accordingly? How do you manage inventory to avoid excessive stockpiling?”
Proactive Crisis Management Is Essential
Kipp cited Sheehan as an example, explaining, “Sheehan can launch a new product within seven days—imagine that. But how long will that product remain in demand? How do you predict that? And how do you manage a supply chain capable of launching 5,000 to 8,000 new products daily? This requires data-driven decision-making and a robust supply chain management strategy.”
Concluding his remarks, Kipp emphasized the importance of forward-thinking leadership in crisis management. “Very few companies have taken the time post-COVID to reflect on and prepare their organizations for future disruptions. Responding to a crisis often requires a complete reevaluation of organizational models and decision-making processes. Decision-making must be delegated to those closest to the disruption. Whether the issue arises at a port, an airport, or in transit, no one will wait for instructions. This is why businesses must proactively engage in crisis management to be well-prepared for future challenges.”
Who is Thomas Kipp?
Thomas Kipp works as a Senior Advisor for the Transportation, Travel, and Logistics practice at Roland Berger, a leading international consulting firm. He is based in Dubai. With more than 25 years of experience in the logistics, transportation, postal, and e-commerce sectors, Thomas has held various C-level positions and global operational responsibilities. He moved to the GCC region in 2020. Thomas previously served as the CEO of Naqel Express and Group COO of Aramex PJSC. Prior to this, he was a Divisional Board Member at DHL Group for 14 years, where he held various global roles within the Postal and Parcel/E-commerce division.
