Issue 004: The Mangrove Newsletter

News & Expert Views, Reports, Insights, Thoughts, and Perspectives on Global Resilience and Business Continuity.

Welcome to Issue 004 of the Mangrove Newsletter! We hope you enjoy reading this as much as we enjoyed putting it together for you.

1. Updates on Mangrove

• We are finally live on Salesforce!

• We are redesigning our website to include our products, clear pricing and free resources. 

2. Resilience Updates (What we are reading) 

Regulation: 

• Middle East:

• United Arab Emirates (UAE): The Central Bank of the UAE (CBUAE) has expressed interest in operational resilience and is studying the Basel Committee's principles.

  • The Dubai International Financial Centre (DIFC) issued an "AMI 5.5 Operational Efficiency and Resilience" in 2021, highlighting the importance of operational resilience in its jurisdiction.

• Other Middle Eastern countries:

  • Similar to Africa, some Middle Eastern countries like Saudi Arabia and Bahrain are focusing on cyber security and IT risk management, laying the groundwork for future operational resilience regulations.

Resilience Failures:

Dubai, the desert metropolis known for sunshine and innovation, was recently caught off guard by a downpour of unexpected heavy rain. While the rain brought temporary relief from the heat, it also exposed a surprising vulnerability in the city's booming delivery industry.

Popular delivery companies like Talabat and Deliveroo faced a surge in demand for essential items as residents stayed indoors. However, the heavy rain hampered their ability to fulfill orders on time. Traffic snarled, delivery routes became flooded, and motorbike riders struggled to navigate the wet conditions. This resulted in frustrated customers and a stark reminder of the need for supply chain resilience, even in a place like Dubai.

The rains had a domino effect, and the disruption went beyond delayed deliveries. Restaurants relying on deliveries for fresh ingredients faced shortages, impacting menu availability. Grocery stores, anticipating lower foot traffic due to the rain, are expected to fall back on increased online orders and delivery. This highlighted the interconnectedness of the modern supply chain in Dubai, where a seemingly minor disruption in one sector had a ripple effect across others.

While heavy rain in Dubai might be uncommon, this incident serves as a valuable lesson. Delivery companies can build resilience by:

• Investing in technology forecasting: For example, real-time weather data allows for proactive adjustments to delivery schedules and resource allocation during unexpected weather. This data could be used to prompt users to purchase ahead of time to avoid unexpected delays or service outages. 

• Diversifying delivery options: Offering car or van deliveries alongside motorbikes can ensure operations continue even in wet conditions.

• Building partnerships with local businesses: Collaborate with restaurants and grocery stores to maintain buffer stocks and ensure availability during peak demand periods.

• Investing in rider safety: Providing riders with proper rain gear and training for navigating challenging weather conditions.

The Dubai downpour serves as a reminder that unexpected events can disrupt even the most well-oiled supply chains. By prioritising resilience, delivery companies can not only weather future storms but also build stronger customer trust and a more robust business model. This focus on preparedness will be crucial as Dubai continues to grow and its reliance on efficient delivery systems increases.

Resilience Successes:

Dubai, once a humble desert outpost, blossomed into a global hub for trade, tourism, and innovation. This remarkable transformation wasn't driven by chance but by a deliberate strategy of economic diversification and a long-term commitment to resilience. While Saudi Arabia and Qatar aspire to steal the spotlight, replicating Dubai's success requires a multi-pronged approach. Here are some key lessons learned on how they successfully built a resilient economy.

Dubai recognised the limitations of a resource-dependent economy. They actively fostered a diverse economic landscape, attracting businesses in sectors like finance, technology, tourism, and logistics. This diversification acted as a buffer against fluctuations in oil prices, creating a more stable and sustainable economic foundation.

Dubai heavily invested in infrastructure, focusing on world-class airports and ports, cutting-edge transportation networks and transforming itself into a seamless gateway for global trade. This forward-thinking approach not only benefited existing businesses but also attracted new ones, further fueling economic growth. Additionally, Dubai enacted business-friendly policies, creating a welcoming environment for entrepreneurs and investors.

Dubai's emphasis on seamless transportation, logistics, and technology positioned it as a global trade and logistics hub. They invested heavily in smart technologies and streamlined processes, making it easier and faster for businesses to move goods and people around the world. This focus on connectivity fostered a vibrant ecosystem for businesses to thrive. Now, Dubai is focused on investing in AI to ensure its continued relevance in the future.

Dubai's commitment to political stability offered businesses and investors a sense of security. The absence of major political upheavals created a predictable environment, allowing businesses to plan for the long term and invest with confidence.

Dubai didn't just keep pace with technological advancements; it actively led the charge. From embracing smart city initiatives to fostering a culture of innovation, Dubai positioned itself as a hub for cutting-edge technologies. This commitment to the future ensured continued relevance and adaptability in a rapidly changing world.

Dubai's success serves as a blueprint for economic resilience. By diversifying its economy, investing strategically in infrastructure, prioritising connectivity, maintaining political stability, and embracing technological advancements it has successfully charted a course for sustainable and vibrant economic futures. 

Additional Readings:

• Introduction to healthcare supply chain management in the MENA region!
  Fintech in MENAP: A solid foundation for growth 

• Designing out of difficult times 

3. Case Studies: 

The MENA region is experiencing a surge in demand for services and products, driven by population growth and investment. This creates pressure on supply chains to ensure efficient delivery of goods. Both the report by S&P Global and the International Monetary Fund (IMF) explore the supply chain and economic outlooks in the Middle East for 2024. In this month's case study, we will look at using the Mangrove 6-step framework to analyse any situation related to supply chain disruptions or economic challenges, to support local businesses with practical steps for navigating regional difficulties and building more resilient supply chains. 

Key takeaways from the articles: 

• The human element of supply chains can be the most unpredictable. Impacted by the Government and civil instability in the region.

• Rising costs of maintaining stable supply chains. Driven by inflation and a panoply of environmental and related regulations that are coming into force in 2024 onward.

• Trade protectionism becoming more prevalent, particularly in support of employment-led manufacturing policies or to mitigate elevated costs of basic goods. Emphasis being placed on reshoring, which can cut costs as well as risk, will remain in favour but involve a careful balancing of operational, transportation and political risks.

The key supply chain initiatives in 2024 for the MENA regions were:

• Continued investment in supply chain resilience is crucial to navigate future disruptions.

• Companies need to focus on building resilience through diversification and agility, not just cost-cutting strategies.

• A recovery in demand at the same time as logistics network interruptions and political uncertainties make investing in resilience more important than ever.

Knowing that investing in and building resilience for your supply chains in 2024 are a key initiative to success. Decision-makers need to prepare for future problems by practically embedding resilience and agility into their supply chains. By applying the Mangrove 6 Step Framework, a deeper understanding of the potential impacts of supply chain disruptions and regional conflict, and how to build resilience in the face of challenges can be gained.

1. Core Identification: 

Step requirements: Recognising the fundamental products or services crucial for success. 

Example: The MENA report mentions human resources (skilled workforce) and physical resources (infrastructure) as necessary for healthy supply chains and economic growth.

2. Resource Mapping: 

Step requirements: Pinpointing the physical, human, and intangible resources needed to deliver those offerings.

For example, to successfully deliver healthy supply chains and economic growth, the following resources would be required:

• Physical Resources: Transportation networks (roads, ports, airports), warehouses, manufacturing facilities, communication infrastructure (internet, phone lines).

• Human Resources: Skilled workers (logistics managers, engineers, transportation specialists). 

• Intangible Resources: Strong supplier relationships, efficient logistics planning software, robust cybersecurity measures, etc.

These can be easily mapped against routes or specific regions. 

3. Resilience Assessment:
Step requirements: Evaluating resource vulnerability to disruptions and identifying areas for improvement (e.g., diversifying suppliers, building redundancies).

For example, disruptions in humans and physical resource areas (e.g., conflict causing population displacement or damaging infrastructure) can hinder supply chains and the economy. Improvements to these identified vulnerabilities could include diversification strategies, building redundancies, investing in technology, etc.

4. Risk Prioritisation:
Step requirements: Recognising and ranking potential threats based on their likelihood and impact on core operations.

For example, human resource disruptions might be prioritised as high-risk and high-likelihood, whereas physical resource disruptions might be high-impact and medium-likelihood. Or prioritise an escalation of the conflict as a high-impact, high-likelihood risk. 

5. Mitigation Strategies: 

Step requirements: Developing plans to counter identified risks, such as diversifying resources or creating contingency plans.

For example, improvements to these identified vulnerabilities could include:

• Diversifying suppliers and transportation routes: Reduce reliance on single points of failure.

• Develop supplier risk assessments: Identify potential weaknesses within your supplier network.

• Investing in automation and technology: Increase efficiency and reduce reliance on manual labour.

• Cross-training employees: Increase workforce flexibility to adapt to disruptions.

• Developing strong contingency plans: Prepare for disruptions with alternative suppliers, production methods, or transportation routes.

6. Continuous Improvement: 

Step requirements: Regularly reviewing and updating the resilience framework to adapt to changing circumstances and remain competitive.

For example, using the data from the framework complete retrospective analysis of the successes and failures of building resilience. Allowing the effective investment into areas which need strengthening and avoiding going through the motions for the sake of it. 

The MENA region presents a complex landscape for businesses in 2024. While experiencing a surge in demand, fragile human resources, rising costs, and potential trade protectionism create significant supply chain challenges. The reports from S&P Global and the IMF highlight the need for a proactive approach to building resilience.

The Mangrove 6-Step Framework offers a practical solution to navigate these difficulties. By identifying core resources, assessing vulnerabilities, and prioritising risks, businesses can develop mitigation strategies and continuously improve their supply chain resilience. This proactive approach will ensure they are well-positioned to navigate the challenges and opportunities that lie ahead.

4. What We're Working On: 

• We are launching White Space - we want to educate everyone on resilience for startups and SMBs. We want resilience to be in the tool belt of every entrepreneur and venture capitalist. Why? Building businesses that last should be the new normal everywhere.

• The team is working on new features for our analytics platform and intuitive AI environment. Mangrove analytics offers 

  • Mangrove Analytics is a data analytics platform built for startups. It offers real-time reporting, insightful visualizations, and advanced analytics to identify critical risks, vulnerabilities, and opportunities. Leverage sentiment analysis, collaboration tools, and data exploration to make data-driven decisions and optimize your startup's success. With Mangrove Analytics you can see every angle, make smarter decisions.

  • Mangrove Plus is a risk bot with interactive support to provide real-time advice, identify and eliminate redundancies, and help you navigate critical risks and vulnerabilities. With Mangrove Plus, you'll have guided processes and scenario planning to make informed decisions and achieve your goals.

5. Work with Us

Global business, SMB, or a Startup? We understand that technology is essential for modern businesses, and we've built replicable processes for businesses that guarantee long-term scalability and sustainability.

Let’s work with you to build better and scale faster. Schedule a Demo with us here. We can’t wait to connect.