< PreviousPARTNER CONTENT | IQ 40www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST The Middle East’s e-commerce market is evolving at a breakneck speed, and behind every order, shipment, and warehouse process lies a demand for smarter, faster, and more adaptable fulfi lment solutions. At the heart of this transformation is IQ, which has made technology not just a support function but the very foundation of its business. “At IQ, technology is not an afterthought but the backbone of everything we do,” says Hani Alyassir, Head of Technology at IQ. Unlike many software companies that build tools in isolation, IQ’s fl agship system, the IQ Hybrid Platform, was born within its own operations, solving real challenges across various industries, including e-commerce, apparel, automotive spare parts, postal services, and 3PLs. This is technology designed from the warehouse fl oor up. “Every feature of the platform comes from years of input by operations, logistics, sales, fi nance, IQ PUTS TECHNOLOGY AT THE CORE OF SUPPLY CHAIN AND LOGISTICS As the Middle East market accelerates with innovation at every forefront, IQ is building an ecosystem powered by its in-house platform, reshaping fulfi lment and robotics, and driving digital transformation from the warehouse fl oor up and business leaders who live these challenges daily,” Alyassir explains. The result is a platform shaped by reality, not theory, built to meet the complexities of modern e-commerce head-on. THE CORE OF THE IQ ECOSYSTEM At the centre of IQ’s strategy is the platform, which powers three interconnected pillars of the company’s operations. The fi rst is IQ Fulfi llment, which supports more than 500 small and medium-sized e-commerce businesses by providing them with the effi ciency, scalability, and fl exibility they need to grow and thrive. The second is IQ Robotics, which integrates advanced automation directly into operations through a Warehouse Execution System (WES) built into the platform, thereby removing the headaches and limitations of legacy systems. IQ has expanded its operations, deploying over 1,000 advanced robots across various projects and transforming companies such as BFL, ISS, and SPL. The third is IQ Hybrid, a standalone solution that enables enterprises to embrace digital transformation with modular, confi gurable, and scalable software tailored to their needs. It brings together essential systems, including Warehouse Management, Order Management, Transport Management, and Billing Management, all under one unifi ed platform. Together, these pillars form a model that not only optimises IQ’s own fulfi lment processes but also extends the benefi ts of its technology to a wide range of businesses across industries. It is a holistic ecosystem where logistics expertise and innovation converge to create a future-ready approach. BUILT FOR AGILITY AND GROWTH One of the defi ning strengths of the platform is its modular and confi gurable design. Clients can adopt the specifi c capabilities they need while paying only for what they use. For businesses navigating fast-changing environments, the platform’s no-code adaptability is a game-changer. Hani Alyassir, Head of Technology, IQ LOG_Oct2025_40-41_IQ Advertorial_13728260.indd 4008/10/2025 16:44IQ | PARTNER CONTENT 41www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 “Every feature of the platform comes from years of input by operations, logistics, sales, fi nance and business leaders who live these challenges daily” “Its no-code adaptability allows businesses to respond quickly to day-to-day changes without long development cycles, making it both fast and effi cient,” Alyassir notes. This fl exibility ensures that companies can scale operations, adjust to seasonal peaks, or integrate new sales channels without disruption. For enterprises with legacy systems or complex warehouse environments, IQ Hybrid acts as a bridge rather than a replacement. Its built-in integration capabilities allow companies to adopt robotics or advanced fulfi lment technologies without tearing down existing systems, a major advantage for businesses wary of digital transformation costs and risks. MOVING BEYOND LEGACY SYSTEMS In an industry where outdated, rigid systems still dominate, IQ is positioning itself as the modern alternative. Traditional warehouse management software often struggles to keep pace with the new era of robotics, automation, and real-time data integration. IQ Hybrid, by contrast, is designed with scalability and fl exibility at its core. “Where traditional systems are rigid and outdated, IQ Hybrid is modern, fl exible, and designed for true scalability,” Alyassir explains. What began as the technological engine behind IQ’s own rapid growth is now available to organisations across industries. For companies still tied to legacy systems, this represents a clear pathway forward for digital transformation without disruption. IQ is not just off ering software; it provides a proven model that has been tested within the demanding operations of the region’s leading e-commerce fulfi lment provider. REDEFINING FULFILMENT AND AUTOMATION The growth of e-commerce in the Middle East is driving demand for faster delivery, smarter inventory management, and seamless customer experiences. Meeting these demands requires more than incremental improvements; it requires rethinking the very architecture of fulfi lment and logistics systems. Through IQ Fulfi llment, startups gain access to enterprise-level capabilities without massive upfront investment. With IQ Robotics, automation becomes not an obstacle but an enabler of effi ciency. And with IQ Hybrid, enterprises can embark on digital transformation journeys tailored to their needs. “From enabling startups in IQ Fulfi llment, to driving enterprise automation with IQ Robotics, to leading digital transformation through IQ Hybrid, the platform is at the heart of it all,” Alyassir summarises. “It is not just software, it is the proven core technology redefi ning fulfi lment and digital transformation.” By embedding technology into the very DNA of its operations, IQ has created an ecosystem where fulfi lment, robotics, and digital transformation seamlessly converge. For the region’s businesses, IQ’s story off ers a blueprint pointing the way forward toward fulfi lment built for the future. A breakdown of the IQ Hybrid system LOG_Oct2025_40-41_IQ Advertorial_13728260.indd 4109/10/2025 09:58INTERVIEW | DP WORLD 42www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST DP WORLD CONFRONTS LOGISTICS’ BIGGEST BLIND SPOT For years, Scope 3 emissions have been ignored despite making up the bulk of logistics’ carbon footprint, but Piotr Konopka of DP World explains how the company is leading with data, digitalisation, and bold targets LOG_Oct2025_42-44_Interview_13717700.indd 4228/09/2025 23:22DP WORLD | INTERVIEW 43www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 For decades, global logistics companies have focused their climate strategies on reducing Scope 1 and 2 emissions, those generated directly from operations or purchased energy. Yet the real elephant in the room has always been Scope 3: the upstream and downstream activities that account for the lion’s share of emissions in transport and supply chains. “Global regulations and carbon pricing mechanisms have traditionally prioritised Scope 1 and Scope 2 emissions, overlooking Scope 3, despite it being the largest contributor for many sectors,” said Piotr Konopka, Group VP – Decarbonisation and Energy Programmes at DP World. “In freight forwarding and port logistics, Scope 3 emissions dominate the overall carbon footprint. Neglecting these emissions can lead to missing real climate action opportunities in these hard-to-abate sectors.” Under the EU’s Corporate Sustainability Reporting Directive (CSRD), Scope 3 reporting is no longer optional. For DP World, this has meant not just adapting, but leading. The company has set ambitious SBTi validated goals: a 42% cut in Scope 1 and 2 emissions and a 28% reduction in Scope 3 emissions by 2030, based on a 2022 baseline. “This alignment is not just about compliance,” Konopka said. “It’s also about helping our customers navigate this complexity while enabling them to address their own blind spots across supply chains.” THE RISKS OF INACTION The complexities of Scope 3 disclosures are daunting. They span 15 categories of upstream and downstream activity, from suppliers to end customers. Companies still rely on spend-based methodologies, which Konopka warned “lack the precision the industry requires for Scope 1 and Scope 2 emissions reporting.” The lack of standardisation adds further ambiguity. As Konopka explained, “the ongoing debate in the ports industry about whether emissions from vessels at berth should fall under terminal operators or port authorities” is just one example. For companies under increasing regulatory scrutiny, such uncertainties translate directly into compliance and investor risks. “Companies risk being penalised or publicly criticised both for inaction and for failing to navigate this ambiguity eff ectively,” he said. To mitigate these risks, DP World is investing in robust data-driven approaches. This includes tracking well-to-tank emissions to identify hotspots and prioritise areas such as fuel switching and electrifi cation. The company is also piloting supplier engagement programmes designed to increase emissions transparency. “These steps help de-risk our operations and enhance our appeal to stakeholders who are demanding verifi able climate action,” Konopka said. Piotr Konopka, Group VP, DP World 28% DP World has set an ambitious Science Based Targets initiative validated goal for this reduction in Scope 3 emissions by 2030 LOG_Oct2025_42-44_Interview_13717700.indd 4328/09/2025 23:22INTERVIEW | DP WORLD 44www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST DIGITAL SOLUTIONS ARE THE BACKBONE If Scope 3 reporting is complex, the solution lies in digitalisation. Technologies such as AI and IoT are already reshaping how companies measure, monitor, and manage emissions. “Digital solutions are vital in moving from spend based estimates to unit-based, auditable Scope 3 emissions reporting,” Konopka noted. “The scale of data required is immense especially for global companies sourcing from diverse suppliers. Technologies like AI and IoT make this level of transparency feasible. Even better, they have the potential to automate data-gathering and reporting.” At DP World, this ambition is already a reality. The company’s Carbon Emissions Calculator gives customers visibility over the emissions impact of their cargo from port to fi nal destination. In Southampton, a real-time CO₂ calculator allows cargo owners to compare modal choices and make lower emission decisions. “These tools provide detailed insights into carbon output, enabling more informed decision-making and supporting Scope 3 emissions reporting,” Konopka explained. DP World is also upgrading its internal systems to capture emissions data across its supply chain and rolling out a wide-scale supplier engagement programme to enhance auditability. GAINING A COMPETITIVE EDGE For Konopka, ESG-linked logistics services are no longer a “nice to have.” They are quickly becoming a baseline requirement. “Yes, ESG-linked logistics services are already a baseline expectation today, not just from regulators but from customers and investors as well,” he said. “Companies that delay investment in emissions tracking, reduction and reporting will fi nd themselves struggling to meet future compliance requirements and losing competitive ground.” The fi rst step, he suggested, is mapping supply chain activities to identify which fall under Scope 3. Even basic spend-based tracking can highlight emissions hotspots and signal early commitment. From there, companies must invest in credible reduction strategies and external assurance. DP World itself has already embedded several initiatives designed to cut Scope 3 emissions. In Southampton, its Modal Shift Programme incentivises a switch from road to rail, saving more than 25,000 tonnes of CO₂e. In Canada, its collaboration with CN Rail and short-sea shipping providers aims to cut long-haul road emissions by as much as 75%. “These steps, along with embracing digital tools for emissions tracking, will ensure companies are not only compliant but also contributing meaningfully to climate goals,” Konopka said. LOW-CARBON FUTURE As the pressure mounts from regulators, customers, and investors, the message from DP World is clear: the time to act is now. Decarbonisation is no longer just about compliance; it is about risk mitigation, stakeholder trust, and competitive advantage. Konopka summed it up best: “Sustainability has to be a shared journey across the supply chain ecosystem. By helping our customers identify and tackle their blind spots, we’re ensuring that decarbonisation becomes not just possible, but practical.” DP World’s roadmap demonstrates how a global logistics giant can set the tone for an industry where emissions reduction is not only a regulatory requirement but a defi ning marker of leadership. Scope 3 reporting has become mandatory under the EU’s Corporate Sustainability Reporting Directive (CSRD) “In freight forwarding and port logistics, Scope 3 emissions dominate the overall carbon footprint. Neglecting these emissions can lead to missing real climate action opportunities in these hard to abate sectors” LOG_Oct2025_42-44_Interview_13717700.indd 4428/09/2025 23:22Scan & DonateREPORT | LUXURY FASHION 46www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST THE INVENTORY DILEMMA What luxury fashion teaches Middle East retail and logistics LOG_Oct2025_46-49_Report_13717689.indd 4628/09/2025 23:26LUXURY FASHION | REPORT 47www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 The luxury fashion supply chain is transforming, and not without its challenges. A recent report, Mastering Supply Chain Management in the Luxury Fashion Industry by TMP, highlights how even the most prestigious global brands are struggling with ballooning inventories, unsold stock, and the complexity of serving an increasingly unpredictable customer base. At fi rst glance, this might sound like a problem unique to high-end fashion houses in Paris or Milan. But dig deeper, and it reveals lessons that are particularly relevant for Middle East retailers and logistics players. As Saudi Arabia and the UAE become global magnets for premium retail, the inventory dilemma in luxury fashion off ers a mirror, showing the risks of overexpansion, the power of predictive technology, and the need to balance operational effi ciency with exclusivity. THE INVENTORY IMBALANCE The report details how one global luxury fashion group ended 2023 with a staggering $3.5 billion in excess stock, up 19% from the year before. The numbers point to a deeper issue: inventory growth consistently outpacing revenue growth. For four consecutive years, the company’s inventory- to-revenue ratio sat below the healthy benchmark of 2.5, meaning it was adding stock faster than it was selling products. The culprit? Rapid product diversifi cation. To capture emerging market demand, luxury brands expanded their off erings beyond core products to include casualwear, sportswear, and accessories. While this broadened their appeal, it also introduced a wave of new SKUs. More SKUs meant more complex forecasts, greater risk of overstock and higher carrying costs. And unlike fast fashion retailers, luxury brands cannot simply discount their way out of the problem. Deep markdowns erode exclusivity, the very foundation of luxury’s value proposition. What remains is a delicate balancing act: how to meet evolving consumer demand without drowning in unsold goods. For Middle East retailers, the warning is clear. Rapid diversifi cation and aggressive expansion can backfi re if logistics and inventory management cannot keep pace. A PARALLEL IN THE MIDDLE EAST The GCC retail landscape is booming. From Riyadh’s luxury shopping districts to Dubai’s sprawling malls, international and regional brands are racing to meet consumer demand. But the same forces complicating luxury’s supply chains globally—short product lifecycles, unpredictable demand, and impulsive consumer behaviour—are amplifi ed here. Tourism is one variable. Seasonal peaks such as Ramadan, Eid, or the Dubai Shopping Festival bring unpredictable surges in demand, while global tourism fl ows can quickly change inventory needs. Demographics are another. A young, digitally savvy population often shifts tastes rapidly, making demand harder to forecast. With the rise of e-commerce, where consumers expect broad assortments and fast delivery, the logistics puzzle becomes even more complex. Like luxury brands, Middle Eastern retailers cannot always discount their way out of stock imbalances. For premium categories—such as high-end fashion, cosmetics, and jewellery—maintaining exclusivity is as critical as maintaining sales. TECHNOLOGY AS A SAFETY NET The report highlights how luxury fashion is leaning on technology to regain control. Artifi cial intelligence, in particular, is emerging as a critical tool for forecasting demand and managing stock. By analysing real-time data across regions, AI systems can anticipate where demand will spike, which SKUs will perform, and how to allocate stock across warehouses. Generative AI is also entering the conversation. It can simulate demand scenarios, model consumer behaviour shifts, and recommend optimised replenishment cycles. The aim is not only to reduce overstock but also to avoid the equally Riyadh is fast becoming a retail hub in the Middle East LOG_Oct2025_46-49_Report_13717689.indd 4728/09/2025 23:26REPORT | LUXURY FASHION 48www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST Resilient supply chains are built on diversity, precision, and effi ciency The iconic Dubai Mall damaging risk of understocking high-demand items. For logistics operators in the Middle East, these tools are increasingly within reach. Warehouse management systems enhanced with AI can improve picking accuracy, while cloud-based order management systems can integrate physical stores with online platforms, streamlining operations. IoT sensors can provide real-time visibility on inventory levels and conditions, critical for high value goods. In a region positioning itself as a global logistics hub, from Dubai’s free zones to Saudi Arabia’s Vision 2030 logistics strategy, adopting luxury-grade supply chain technology could provide a decisive competitive edge. RETHINKING PRODUCT STRATEGY Yet technology alone won’t solve the inventory dilemma. The report makes another key point: product simplifi cation. For some luxury houses, trimming their collections could reduce complexity, improve forecasting accuracy, and reinforce exclusivity in the market. The Middle East’s premium retail sector should consider a similar approach. Instead of overextending into categories that stretch logistics networks, whether it’s niche gourmet items for supermarkets or ultra-niche fashion SKUs, retailers could focus on curating tighter product ranges that align with both consumer demand and logistics capacity. This does not mean limiting ambition. Rather, it means aligning product strategy with operational capabilities. The goal is to create resilient supply $3.5 BILLION One global luxury fashion group ended 2023 with this amount in excess stock, up 19% from the year before LOG_Oct2025_46-49_Report_13717689.indd 4828/09/2025 23:26LUXURY FASHION | REPORT 49www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 chains where product diversity is balanced by forecasting precision and distribution effi ciency. THE ROLE OF LOGISTICS PARTNERS The report’s fi ndings also highlight a broader truth: inventory problems are not just retail issues, but they are also logistics issues. Excess stock ties up warehouse space, raises transportation costs, and increases the risk of obsolescence. In the Middle East, where logistics operators are competing for market share in e-commerce and retail fulfi lment, off ering solutions to inventory challenges could become a diff erentiator. Logistics providers that invest in AI-enabled forecasting tools, fl exible warehousing solutions, and data-driven inventory optimisation can position themselves as partners, not just service providers. Off ering insights into predictive demand patterns, stock movement, and even product lifecycle management could give operators an edge in a competitive market. The Middle East is uniquely positioned to apply these lessons. Governments are investing heavily in infrastructure, digital transformation, and supply chain integration. Saudi Arabia’s National Industrial Development and Logistics Program (NIDLP) and the UAE’s logistics free zones already provide platforms where advanced supply chain practices can be scaled. As more luxury and premium retailers establish footprints in the region, they will demand logistics capabilities that mirror global best practices. This means not only moving goods but also helping brands avoid the inventory traps highlighted in the report. LUXURY LESSONS FOR THE REGION The luxury fashion industry’s inventory dilemma is more than a cautionary tale. It’s a case study in the risks of unchecked expansion, the importance of demand forecasting, and the value of aligning product strategy with operational capabilities. For Middle East retailers and logistics players, the message is clear. Success will not come from stocking more products or building bigger warehouses alone. It will come from building smarter, technology-enabled supply chains that balance effi ciency with exclusivity. Luxury fashion may have stumbled into a $3.5 billion inventory problem, but in doing so, it has provided a playbook for others to avoid the same pitfalls. For the Middle East, a region eager to become a global retail and logistics powerhouse, the opportunity is to learn fast, invest wisely and build resilient supply chains that can thrive in both boom cycles and disruptions. “Like luxury brands, Middle Eastern retailers cannot always discount their way out of stock imbalances” LOG_Oct2025_46-49_Report_13717689.indd 4928/09/2025 23:26Next >