Saudi Arabia this year started installing post office boxes at residences, and there seems to be very few signs that people have begun adapting to the new service. This might be due to the fact that everyone is used to relying on post office boxes and package courier service like the ones offered by the “world’s largest package-deliverer” United Parcel Service.
Jim O’Gara is the new country manager for UPS’ operations in the Kingdom and he says the company, whose authorized service contractor here is EIRAD Trading & Contracting Co. Ltd., is growing it operations quickly.
EIRAD and UPS are also committed to the Kingdom’s Saudization program, an ongoing attempt to spur job growth among Saudi nationals in order to reduce the country’s dependence on foreign labor.
“We take great pride in our company-wide Saudization level, which is in excess of 30 percent,” said EIRAD Managing Director Mamdouh F. Ghazzawi. “We continue to attract young Saudi talent to our organization.”
EIRAD Trading & Contracting Co. Ltd has been the authorized service contractor of UPS in Saudi Arabia since 1997, offering UPS Worldwide Express, Domestic Express and Road Freight Service. Recently EIRAD had expanded its capabilities to offer warehousing, logistics, distribution and consulting solutions to its customers.
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the flow of goods, information and funds. Headquartered in the US city of Atlanta, UPS services more than 200 countries and territories worldwide.
O’Gara and Ghazzawi dealt at length about the operations of UPS in the Kingdom and made the following remarks:
Saudi Arabia is a very large and rapidly developing country with close to 25 million residents spread across a far-reaching territory.
To properly service that market, any company or an organization in the country’s distribution industry must be capable of moving goods and services with an incredible degree of efficiency. And this efficiency can only come from a company’s ability to leverage its technology, human resource and experience. But package delivery experience and existing infrastructure alone are not sufficient for a company to compete in the Kingdom’s competitive distribution business.
Customers today expect more from a delivery company or organization, as the information on the status of package is important as the package itself.
Saudization in the courier business is growing consistently, but is not as fast as one would expect it to be.
EIRAD/UPS’ Saudization has increased over the last years. Its team is supplied with adequate industry training, which enhances their skill and knowledge, and enables them to become assets. It is not only employing Saudi nationals, the key is retention and development, which has been its main success.
With growing market in the Kingdom, the company finds it difficult to determine its market share. However, globally UPS is the “world’s largest package delivery company” and a leading global provider of specialized transportation and logistics services.
UPS has shown extraordinary commitment to IT, investing approximately $1 billion annually for the past 15 years on an integrated global IT network that is unmatched in the industry.
Essentially, the way UPS approaches IT and the accompanying investments is that the company’s business units spearhead decisions on applications and the IT department facilitates the selection, testing and implementation of those applications. UPS views technology as a business enabler.
UPS offers customers in Saudi Arabia a comprehensive set of tracking, tracing and proof of delivery services — provided free of charge.
UPS’ redesigned website — UPS.com — makes it easier than ever for customers to find what they want. The design helps users quickly access the most frequently used features on the site. Package tracking, for example, which is used about 10 million times per day worldwide, can now be accessed directly from the home page.
Today EIRAD Trading & Contracting Co. Ltd. offers UPS Worldwide Express, Domestic Express, Road Freight Service, Mailroom Management, logistics, freight forwarding (air, sea and land), customs brokerage, warehousing, distribution management and consulting solutions.
The international courier rates have increased due to growing oil prices and increased security surcharge globally, as these courier shipments travel to international destinations.
The domestic business-to-business rates have declined due to competition. However, the volume of the business has also increased.
Today, the major portion of the market still consists of customers who look for more value in the services they receive and do not select courier companies just based on low rates.
EIRAD/UPS competes on the value of its services and not on price alone.
