EXCLUSIVE: In an in-depth discussion, Piyush Malviya of Moglix talks about the challenges of the Middle East’s logistics, procurement and industrial sectors, and how technology plays an integral role in shaping these segments 

Moglix, a global leader in B2B e-commerce and supply chain solutions, has recently entered the Middle Eastern market. This move marks a pivotal chapter in Moglix’s growth story, leveraging the region’s digital transformation initiatives and supportive regulatory framework. 

In an insightful conversation with Logistics Middle East, Piyush Malviya, Vice President and Head of the MEA region at Moglix, delves into the company’s plans and strategic vision for the Middle East. Malviya shares insights on how Moglix has tailored its business model and supply chain strategies to address the unique challenges of the Middle Eastern logistics and industrial sectors. Through these strategic initiatives, Moglix aims to play a pivotal role in catalysing the region’s transition to a digital economy and setting new benchmarks in supply chain excellence. 

Strategic entry into the Middle East 

Moglix’s entry into the Middle Eastern market represents a strategic milestone for the company, driven by a keen understanding of the region’s growth potential and innovation landscape. Malviya articulates the core reasons behind this expansion, highlighting the region’s alignment with Moglix’s supply chain capabilities. “Our entry into the Middle East was driven by the strategic fit between the region’s potential for growth and innovation and our supply chain capabilities—both digital and on the ground,” says Malviya. 

The decision to establish a presence in the Khalifa Port Free Trade Zone (KPFTZ) was influenced by the UAE’s commitment to digital transformation and supportive regulatory framework. Malviya notes, “Based on the UAE’s commitment to digital transformation, the region boasts a supportive regulatory framework and government initiatives conducive to the growth of tech companies.” 

The MENA region’s growing B2B e-commerce market presents a significant opportunity for Moglix. With the market expected to reach a valuation of $2,293 billion by 2030 and the UAE e-commerce market poised to grow from an estimated $5.5 billion in 2024 to $8 billion by 2026, the timing of Moglix’s entry is strategic. “These factors seamlessly align with our vision to positively transform the traditional B2B landscape and catalyse the nation’s transition into a digital economy,” Malviya adds. 

Moglix’s operational base in Abu Dhabi and Dubai, along with its network of regional warehouses, serves as a strategic hub for customer fulfilment across the Emirates. The launch of their B2B e-commerce platform underscores their commitment to offering a comprehensive digital catalogue. “Through the launch of our B2B e-commerce platform’ moglix.ae,’ we are now offering a digital catalogue which encompasses 500,000 industrial products across 50+ categories,” explains Malviya. 

Moglix plans to extend its reach across the GCC, targeting lucrative markets and leveraging opportunities in various sectors such as manufacturing, real estate, FMCG, government, and education. Malviya emphasises the importance of strategic partnerships and consumer-centric solutions in achieving long-term success, “By synergising strategic partnerships and consumer-centric solutions, we have positioned ourselves for long-term success within the Middle East’s dynamic B2B e-commerce ecosystem.” 

Adapting to the Middle Eastern market 

Navigating the complexities of the Middle Eastern logistics and industrial sectors requires a nuanced approach tailored to the region’s unique dynamics. Moglix has customised its business model and supply chain strategies to meet these specific needs, demonstrating an understanding of the local market. Malviya explains, “The unique nature of the logistics and industrial sectors in the Middle East is defined by the presence of multiple specialist solution providers across diverse functions of the supply chain ecosystem.” 

Moglix’s approach in the Middle East is seen by its holistic supply chain solutions, which integrate a wide array of online and onsite capabilities. Malviya elaborates, “We are here as a holistic supply chain solutions provider that combines all these capabilities—online and onsite—on one platform. Our end-to-end offerings across the P2P cycle include indirect and direct procurement, supply chain SaaS suite, supplier network, multimodal logistics, and warehousing.” 

The company’s playbook for customising solutions for large corporate customers is based on creating industry-specific end-to-end solutions. Whether in FMCG, food & beverage, retail, textiles, or the automobile sector, Moglix has developed case studies of successful implementations. “We have built a case study of end-to-end solutions for each industry vertical,” Malviya notes, emphasising the importance of tailored approaches. 

Collaborations with local businesses and government  

Forging strong partnerships with local businesses and government entities has been a cornerstone of Moglix’s strategy in the Middle East. These collaborations are pivotal in enhancing Moglix’s operational capabilities and bridging gaps between local expertise and global markets. Malviya underscores the significance of these partnerships, stating, “The end goal of these supply chain localisation initiatives is to zero down the gaps with both our large corporate enterprise customers in the Middle East and those across the world who are looking up to the Middle East as a strategic sourcing hub for the global manufacturing supply chain.” 

Moglix has established numerous local-level partnerships with MSMEs, banks, logistics services providers, supply chain financing platforms, and payment gateway operators. Each partnership brings distinct value, facilitating a seamless and efficient supply chain process. “We have partnered with local MSME and OEM suppliers for indirect procurement and with multimodal logistics solution providers in the region,” Malviya explains. “By doing so, not only are we fulfilling the procurement mandate of large enterprise buyers in the region, but also putting together the largest stack of local managerial, technical, and logistical know-how.” 

These partnerships are also instrumental in Moglix’s efforts to integrate local business regulatory frameworks and adhere to the ESG charter for large corporate enterprises outlined by local governments. This alignment ensures that Moglix’s operations comply with local regulations and sustainability goals. Malviya notes, “At the heart of these local business partnerships is the business regulatory framework and the ESG charter for large corporate enterprises as laid out by local governments in the Middle East.” 

Additionally, Moglix’s collaboration with payment gateway integrators is crucial for offering a seamless B2B e-commerce experience tailored to the regional market. This includes adopting local currency, technology, regulatory frameworks for cybersecurity, and fit-for-audit data governance. “Our partnership with payment gateway integrators in the region is key to offering a seamless B2B e-commerce experience,” Malviya highlights. This localised approach not only enhances the customer experience but also ensures compliance with regional standards and regulations. 

Technological tools and innovations 

At the heart of Moglix’s operations in the Middle East is a technological framework designed to enhance efficiency, transparency, and reliability across the supply chain. Malviya elaborates on the central role of technology in Moglix’s strategy, stating, “At the heart of the Moglix operating system for B2B commerce is technology. We have put together an operating system that enables material, data, and fund flow through a single green channel corridor so that we are always alongside customers.” 

Moglix’s technology stack is built on three key pillars: source-to-pay, intelligent contracting, and B2B e-commerce. These components work together to provide real-time visibility and seamless coordination across the supply chain. “Visibility into the ‘now’ of the supply chain journey enables enterprise users to plan for the ‘next’,” Malviya explains. “In other words, the real-time coordinates of the physical movement of processes, goods, and logistical assets, in combination with our artificial intelligence and machine learning capabilities, set the tone for de-risking transactions and unclogging bottlenecks.” 

The source-to-pay solution is a cornerstone of Moglix’s technological offerings, providing procurement and logistical tracking capabilities. Malviya shares a practical application of this technology, “Our source-to-pay solution is used by a leading EPC infrastructure enterprise with 4,000+ users across 500 sites every day to seamlessly purchase industrial goods and track the logistical coordinates of their consignments.” 

Intelligent contracting is another critical aspect of Moglix’s tech stack, which is designed to streamline procurement processes and ensure efficient contract management. “Our intelligent contracting solution is used by one of the world’s largest FMCG behemoths to draft and edit contracts for direct procurement, ensuring that millions of customers across the world can access the goods they need every day,” Malviya notes. 

Moglix’s B2B e-commerce solutions further enhance the customer experience by providing a seamless online platform for purchasing industrial products. This capability is particularly beneficial for large-scale enterprises in the region. “Our B2B e-commerce solutions are used by a multinational mine-to-market metal and oil & gas conglomerate to offer a seamless online customer experience for the purchase of zinc, silver, copper, etc.,” Malviya highlights. 

The scalability and customizability of Moglix’s technology stack allow the company to replicate successful use cases and create tailored supply chain solutions for customers in the Middle East. “Our technology stack is granular and scalable, implying that we can replicate successful use cases to create a customised supply chain SaaS solution for our customers in the Middle East on demand,” Malviya explains. 

Moglix’s strategic entry into the Middle Eastern market exemplifies the company’s vision to leverage digital transformation and drive innovation within the region’s logistics and industrial sectors. Through strategic partnerships, tailored business models, and cutting-edge technology, Moglix is well-positioned to address the unique challenges of the Middle Eastern market. 

As Moglix continues to expand its footprint across the GCC, its holistic approach to supply chain management promises to set new benchmarks in the B2B landscape, fostering a resilient and efficient supply chain ecosystem in the Middle East.