Aljazierah Home Appliances
DIGITALISATION OF SUPPLY CHAIN OPERATIONS DURING A PANDEMIC
IN ASSOCIATION WITH
DIGITAL REPORT 2021
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DIGITALISATION OF SUPPLY CHAIN OPERATIONS DURING A PANDEMIC
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ALJAZIERAH HOME APPLIANCES
Naiyer Hussain, Supply Chain Director of Aljazierah Home Appliances, takes the time to discuss digitalisation of supply chain operations during the COVID-19 era
W
hen you consider the new norms and values established in 2020, I don’t doubt that you consider COVID-19 to have been the dicta-
tor that defines them; and, it’s certainly the case that 04
the global pandemic has been an influencing factor, but we would be amiss to claim that it is the only one. In fact, the true defining factor of this year has been the genius of human innovation and adaptability - especially when it comes to supply chain operations. It’s the collaborative efforts between individual humans at different stages of the supply chain that truly made the difference as the world stood in the looming shadow of adversity. A man who knows all about that unity through collaboration is Naiyer Hussain, the Supply Chain Director of Aljazierah Home Appliances, manufacturer & retailers of Home Appliances & HVAC equipment ranging from water coolers and heaters to refrigeration units and freezers across Saudi Arabia and the Middle East.
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“ Digitalisation in supply chain is required for improved decisionmaking capabilities, which allows companies to bridge the gaps across endto-end supply chain.” — Naiyer Hussain, Supply Chain Director, Aljazierah Home Appliances
Although Aljazierah was the first manufacturer of its kind in Saudi Arabia and the Middle East, it’s no longer alone in its particular marketplace - in fact, it has global competition. To the question of, “what put’s Aljazierah ahead of its competitors,” Naiyer succinctly stated that “the leadership and vision of the CEO, CFO, and Vice President are all vital to Aljazierah’s success in our respective markets, and those three individuals underpin the reason why we’re ahead of the competition, right now. As it stands,
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“Aljazierah was started in 1968 by the
we’ve successfully nurtured strong part-
late Mohamed bin Abdulaziz Al Rajhi,
nerships with both our customers and
a visionary entrepreneur. It was the
our suppliers, which ensures that both
very first factory of its kind in the Middle
ends of our businesses supply chain
East to produce home appliances.
remain on-top. As a company, we also
Today, Aljazierah has nine production
have a tendency to explore options and
facilities for water heaters, water cool-
find multiple solutions to the problems
ers, evaporative coolers, gas cookers,
that we may face; we treat each problem
refrigerators, washing machines and
as a case study and the executive arm
plastic components. Our products are
of the organisation put in the hours to
well known in Saudi Arabia, and we are
brainstorm and come up with probable
now exporting products to almost all of
solutions together, as a team.”
the Middle Eastern markets. We have
When it comes to the supply chain
also expanded into the African markets,
operation of any organisation with the
through the use of one production
size and scope of Aljazierah, many
factory in Sudan,” Naiyer told Supply
industry-leading companies choose to
Chain Digital.
either use one supplier that can provide
07 E X E C U T I V E P R O FILE :
Naiyer Hussain Title: Supply Chain Director Company: Aljazierah Home Appliances Industry: Home Appliances Location: Riyadh Naiyer is a senior leader possessing vision and skills to design, develop and monitor E2E supply chain. He performs comprehensive projects around supply chain, digital supply chain transformation and change management strategies to improve visibility across supply chain to achieve reliable, responsive, agile & cost-efficient supply chain including operational excellence. He managed global procurement of CAPEX & OPEX in most modern manufacturing plants. He directed supply chain re-engineering for a paradigm shift from production-driven to a demand-driven business model, leading to a higher percentage of sales and production with high inventory turnover. He participates and speaks in supply chain conferences & seminars across GCC. www.a l j a z i e r a h . com
ALJAZIERAH HOME APPLIANCES
FP ABOUT US Aljazierah Home Appliances FEB 2021 CLICK TO WATCH
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WE DO IT BETTER
Made
in
Italy
Leader in safety valves for electric storage water heaters w w w. r i t m o n i o . i t
“ It has been important to recognise the reality of the situation and acknowledge that all companies have limitations - even ours.” — Naiyer Hussain, Supply Chain Director, Aljazierah Home Appliances
March 21st, onwards. Considering the fact that the pandemic had been rife in China since December of last year, Aljazierah was already on high alert with the intention of mitigating any supply chain risks.” “We started moving inventory to regional warehouses to balance the risk, and we also made arrangements within factory premises for the rest of the workers to work in regulated, safe
all of their goods and services, or they go
conditions, so protect each individual
the other route and use several, work-
whilst also preventing the spread of
ing in unison. In Aljazierah’s case, Naiyer
infection throughout our labour force,”
told us that “we are made up of several
the Supply Chain Director added. It’s
interdependent global partners. All our
clear that Naiyer, just like every other
suppliers are highly skilled and profes-
leader in the field, didn’t want to lose
sional in their areas. They keep the high
human resources to the virus, given
value of partnership agreements, and
that “expected shortages of materials
continuously work on product innovation
and services were already the biggest
and process optimisation, for the sake of
challenge - and a major pressure for me,
our customers.”
personally. Aljazierah had to ensure the
On the subject of COVID-19 - the
safety of our people whilst also maintain-
elephant in the room, really - it often
ing a constant flow of goods so that our
seemed that Asia, Europe, and the
stocks didn’t bottom-out. We oversaw
Americas were hit hardest by the virus.
a reduction in work timing from 18 hours
Naiyer revealed that “Saudi Arabia also
to just six hours for logistics and ware-
had COVID-19 cases and the govern-
housing projects. It was a challenging
ment implemented curfews and highly
time, but, again, good teamwork and col-
restricted everybody’s movement from
laboration got us through it.” www.a l j a z i e r a h . com
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“ The team here makes each crisis into a case study and, together, through collaboration, we fix it so that the next time a similar situation occurs, we are prepared to tackle it.” — Naiyer Hussain, Supply Chain Director, Aljazierah Home Appliances
You’ve most likely heard the claim before, but many professionals across the supply chain industry and its subsidiaries, have been suggesting that digital transformation accelerated by approximately a decade in 2020 alone, due to the innovations that had to take place to ensure business continuity and survival at the height of the pandemic. To this, Naiyer told us that he “absolutely agrees with the notion that COVID has accelerated the digitalisation process in almost all sectors. Prior to the pandemic, there was already a conceptual shift
FP COMPETITION Aljazierah Home Appliances FEB 2021 CLICK TO WATCH
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towards digital, but when the world went
unavoidable. To ensure that we provided
into isolation, the pace of that digital
our customers with our essential ser-
transformation accelerated ten-fold so
vices, we obtained permits and licenses
that companies could adapt to a world in
from the Saudi Arabian government, so
lockdown. Without digital tools and tech-
that we could continue operations dur-
nologies, it would have been impossible
ing the lockdown, and we had to obtain
to continue running the show.”
police permits for the transportation of
“In truth, we were not fully prepared
goods and workers - we even relocated
at Aljazierah. We lacked many tools, but
to areas outside of containment zones,”
our team used their experiences and
Naiyer added.
skills to work under abruptly changing
Naiyer shared that Aljazierah would
environments. We made many decisions
be looking to implement any of the tools
to reduce the impact of the pandemic on
and technologies that the company was
our business - but minimal damage was
previously lacking and emphasised the www.a l j a z i e r a h . com
ALJAZIERAH HOME APPLIANCES
1968
Year founded
Riyadh Location
500+ Number of employees
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FP DIGITIZATION Aljazierah Home Appliances FEB 2021 CLICK TO WATCH
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importance of them when he told us that
though. At Aljazierah, as with every
“digitalisation in supply chain is required
other company around the world, they
for improved decision-making capabili-
also need to embrace the technology,
ties, which allows companies to bridge
“because it makes our business process
the gaps across end-to-end supply
easier, and we can then replicate our
chains. Also, micro-segmentation with
goals into digital advancement and repo-
digitalisation increases the overall profit-
sition the tech for remote handling. This
ability of operations across the chain by
must also collaborate with our business
allowing for more actionable, targeted
model, reduce cost, and save time.”
choices that will - theoretically - have
In the coming years, if the world
a positive effect on the overall supply
continues to struggle with unexpected
chain management experience.”
viruses and natural disasters, it’s likely
The Director was quick to add that it
that the new norms of 2020 will remain.
isn’t only about implementing the tools,
Now, at the height of lockdown, global www.a l j a z i e r a h . com
ALJAZIERAH HOME APPLIANCES
supply chain networks struggled with the spike in demand for products purchased through eCommerce - a problem that will potentially continue into the New Year and further. Naiyer told us that “eCommerce sites alongside traditional sales channels and showrooms have made the supply chain more complex and, due to the convenience of the amalgamation, we now have to deal with higher customer expectations for faster deliveries. Managing customer expectation is the biggest challenge that we will all face 14
moving forward - an additional step that increases the complexity for upstream and downstream partners along our networks.” Naiyer’s final comment to Supply Chain Digital provided some wisdom that the many C-Suite executives could do with following; to the question of leadership and managing a company through a time of volatility and uncertainty, he said, “I am trying to keep calm during this crisis. I still sometimes get stressed during a period of crisis, as you might expect, but if you can keep a cool head, you can strategise around the negatives. Aljazierah intends to keep production running, avoiding stoppage and
“ As a company, we also have a tendency to explore options and find multiple solutions to the problems that we may face; we treat each problem as a case study and the executive arm of the organisation put in the hours to brainstorm and come up with probable solutions together, as a team.” — Naiyer Hussain, Supply Chain Director, Aljazierah Home Appliances
FP CHALLENGE Aljazierah Home Appliances FEB 2021 CLICK TO WATCH
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minimising downtime; while doing so, it is important to recognise the reality of the situation and acknowledge that all companies have limitations. The team here makes each crisis into a case study and, together, through collaboration, we fix it so that the next time a similar situation occurs, we are prepared to tackle it.�
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ALJAZIERAH HOME APPLIANCES FIRST INDUSTRIAL CITY P.O. 2872 RIYADH 11461 KINGDOM OF SAUDI ARABIA T +966-11-448 9868
www.aljazierah.com
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