MIDDLE EAST EDITION FEBRUARY 2020 middleeast.businesschief.com
The importance of visibility and AI
Digitally transforming the supply chain Hicham Nehme, Senior Supply Chain Manager discusses the importance of supply chains
City Focus
Doha
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FOREWORD
W
elcome to the February
In our leadership feature we speak to
edition of Business Chief
Majed Zambaraji, CEO and Managing
Middle East! This month’s cover features Hisham Nehme, Senior Supply Chain Manager at Vodafone Qatar, to discuss the ever-
Partner of Time Express, on the key trends, challenges and best strategies for becoming an entrepreneur in logistics.
changing increasing importance of supply
This month’s City Focus looks at the
chain within the telecommunications
Qatar capital - Doha. We discover
industry. “Companies, and telecom
how the city is engaging with
companies specifically, must work on
renewable energies, developing its
cost efficiency and how to manage
smart city strategies and its
their spend by using proper sourcing
international sporting culture. In
and negotiation plans, and planning
addition, our Top 10 looks at
ahead in collaboration with all other
organisations and initiatives within
stakeholders and departments,” says
the region that are driving digital
Nehme. “The supply chain’s role starts
disruption in the UAE.
from the planning stage, which is critical to achieving the goals and the objectives of the company.” Elsewhere in the magazine, Noha Samara, Head of Customer Logistics at
Do you have a story to share? Please do not hesitate to get in touch and you could be featured in our next issue. Enjoy the read!
HMD Global, discusses the importance
Georgia Wilson
of end-to-end visibility and the use of
georgia.wilson@bizclikmedia.com
artificial intelligence in logistics.
mi ddl e e a st .busi ne ssc hief. com
03
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MEA EDITION
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CONTENTS
08 Vodafone Qatar
32 Becoming an entrepreneur in the logistics industry
40 Embracing behaviours in a new technological age
50 s e s s e n i s u b w Ho ve e i h c a t s e b n ca long-term y s u s t a i n a b i l it
Digital innovation in logistics warehouses
City Focus
DOHA
62
72 82
Digital disruption leaders
98 HMD Global
08
FEBRUARY 2020
Digital transformation in the supply chain WRITTEN BY
WILLIAM SMITH PRODUCED BY
K ANE WELLER
mid dl e e a s t . b u s in e s s c hie f. c o m
09
V O D A F O N E Q ATA R
10
Hicham Nehme, Senior Supply Chain Manager at Vodafone Qatar, discusses the ever-increasing importance of supply chain to the telecommunications industry FEBRUARY 2020
V
odafone Qatar is a member of multinational telecommunications conglomerate
Vodafone Group’s partner market programme, and is one of two operators in Qatar. Hicham Nehme is Senior Supply Chain Manager at Vodafone Qatar and has 18 years of supply chain experience. “I’ve worked in different organisations and industries. Facility management, IT, manufacturing and,
11
for the last eight years, I’ve special-
The telecommunications industry
ised in telecom procurement. I’ve
is in flux globally, with changes in
been CIPS-certified since 2013 and
finance requiring variations in strategy.
am a holder of an MBA and busi-
“Telecom operators around the world
ness administration system degree.”
are facing financial pressures, due to
Nehme’s work has taken him to a num-
the shrinking of their profit margins
ber of countries in the MENA region
and rising operating costs and invest-
and he has managed projects in India,
ment demand,” Nehme explains. “What
Europe, and the United States. It’s not
telecom companies realised is that to
just his work keeping him busy, how-
overcome many of these challenges
ever. “I’m also the father of three lovely,
it is necessary to reduce costs, and to
beautiful girls – triplets.”
achieve these goals, we must empower mid dl e e a s t . b u s in e s s c hie f. c o m
Connected world, connected experiences. Learn more
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Our Achievements ‘NelsonHall’ has recognized Tech Mahindra BPS as the leading Global BPS research and analysis firm. Also featuring us as a Leader in three key market segments of the NEAT Evaluation: CX Improvement Capability, Revenue Generation Capability, and Cost Optimization Capability. Ivan Kotzev, CX Lead Analyst at NelsonHall, said: “TechM BPS’ suite of proprietary tools and platforms, specifically in RPA and intelligent automation, empower true digitization of the contact center. The company’s dedicated consulting practice, its UX design agency, and investments in emerging technology are well suited to assist clients on their path to digital CX transformation.”
TECHMAHINDRA.COM
V O D A F O N E Q ATA R
the supply chain role. The supply chain
in recent memory, 5G. “We’re proud to
has become a critical department
be one of the first operators in the world
across any telecom company. Our
deploying 5G technology and making
involvement starts with the planning
it commercially available for customers
stage, not just the execution. We can
– an achievement we are really proud
help the decision-makers to build
of.” Implementing 5G requires upgraded
their strategy and to properly put their
infrastructure, and “Vodafone Qatar is
plans in place.”
taking the lead to be part of that growth
Aside from financial flux, the indus-
in the coming years,” says Nehme. “The
try has also experienced changes in
telecommunications industry is critical
technology, and Vodafone is at the fore-
for any country, and that’s where we
front of implementing one of the most
play our role in supporting the growth of
potentially transformative technologies
the economy.”
14
FEBRUARY 2020
CLICK TO WATCH : ‘THE FUTURE OF THE TELECOM INDUSTRY’ 15
“ We’re proud to be the first company providing 5G for their customers in Qatar” — Hicham Nehme Senior Supply Chain Manager Vodafone Qatar
mid dl e e a s t . b u s in e s s c hie f. c o m
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To ensure the efficiency of the supply chain in an evolving industry, Nehme has highlighted the importance of having a clear strategy. He
“ The development that’s happened to this country in the last 10 years is magnificent” — Hicham Nehme Senior Supply Chain Manager Vodafone Qatar
emphasises that “to build a successful strategy we need to depend on a number of essential factors. First we need to understand our core business, future objectives and goals by analysing our procurement and spend reports. We also monitor financial and political changes in the world and forecast the direct or indirect effects of any new technology to understand
E XE CU T I VE PRO FI LE
Hicham Nehme Hicham Nehme is an experienced procurement professional. Having worked for 18 years in procurement and supply across different industries, Hicham is responsible for oversight of the procurement operations, strategic sourcing and digital transformation in supply chain. Hicham was instrumental in developing procurement policies and procedures and implementing procurement strategies, managing projects in the MENA Region, Europe and USA. Hicham is CIPS and CPPM Certified, with a BA in Business Administration Systems, and a father of three girls. mid dl e e a s t . b u s in e s s c hie f. c o m
19
V O D A F O N E Q ATA R
how this might influence our strat-
Nehme adds. “This helps us to build
egy. Based on the outcome of these
a clear strategy for the supply chain,
analyses we can build our strategy.
achieving our goals and objectives in
The main pillars of any procurement
the long and short term. VPC’s role
strategy are global sourcing, risk and
is to maintain a level of world class
supplier management and digital
procurement, giving us access to a
transformation. The main objective
landscape of advanced tools and
is to focus on cost reduction without
robust processes to smoothly facili-
impacting the quality of the service or
tate the interaction with our suppliers.
the products we are procuring.
They help us to work faster, more
At Vodafone, we are fortunate to have Vodafone Procurement 20
securely and more simply.” The supply chain’s influence has
Company (VPC) – one of the largest
also expanded beyond its usual remit
procurement organisations in Europe,”
to take a seat at the decision-making
“ The main pillars of any procurement strategy are global sourcing, risk and supplier management and digital transformation” — Hicham Nehme Senior Supply Chain Manager Vodafone Qatar FEBRUARY 2020
CLICK TO WATCH : ‘STRATEGIC SUPPLY CHAIN PARTNERSHIPS’ 21
mid dl e e a s t . b u s in e s s c hie f. c o m
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LEARN MORE
table. “Companies, and telecom
our strategy – first planning is vital for
companies specifically, must work on
the supply chain,” Nehme emphasises.
cost efficiency and how to manage
“We collaborate with our partners and
their spend by using proper sourcing
suppliers from outside and with inter-
and negotiation plans, and planning
nal stakeholders. What is the best form
ahead in collaboration with all other
of planning to do? What can we opti-
stakeholders and departments,” says
mise for our three and five-year plans?
Nehme. Thanks to its involvement in an
This is the key part of any successful
early stage, Vodafone Qatar’s supply
procurement strategy.”
chain team can more easily align its
At the same time, another important
strategy with the company’s overall
factor to consider is risk mitigation.
goals and objectives. “We assess
“Risk is critical for supply chain man-
what the company needs to develop
agement, in all terms,” Nehme says. 23
mid dl e e a s t . b u s in e s s c hie f. c o m
CLICK TO WATCH : ‘MANAGING RISK IN THE SUPPLY CHAIN’ 25 “Supplier risk, fraud risk, bribery risk,
important tasks for a supply chain
delivery risk. Even managing risk in
department. “Making suppliers and
contracts is important. Coordinating
business happy is the key to suc-
with the legal department to achieve
cess for any supply chain expert or
decreased risk or payments, all of
professional,” Nehme explains. “The
this impacts supply chain decisions.”
partners we have locally and inter-
Another risk is spending outside the
nationally are why we are successful.
normal procurement policy, which
We build relationships with suppliers
Nehme refers to as ‘dark purchasing’.
in different industries, focusing on
“We successfully managed to reduce
encouraging local suppliers to invest
this by helping internal stakeholders
more in the telecom industry. Mannai
realise the importance of aligning with
is a strategic partner in IT, lately it
SCM and avoid this type of purchasing.”
has been choosen as Best Oracle
Supplier relationship management (SRM) is undoubtedly one of the most
Partner at Oracle Open World in Dubai. We also have suppliers in the mid dl e e a s t . b u s in e s s c hie f. c o m
V O D A F O N E Q ATA R
telecom industry like Hayat, which we count on for a lot of projects. HATCOM is another strategic partner
“ Making suppliers and business happy is the key to success for any supply chain expert or professional”
working across many projects from our side. Tech Mahindra is one of the international suppliers that you will always find when you need them.” Alongside the external implementation of 5G, internal technology transformation has also been a focus. “We changed our enterprise resource planning (ERP) system recently and moved to Oracle Fusion,” says 26
— Hicham Nehme Senior Supply Chain Manager Vodafone Qatar
Nehme. “That, I think, is a big step for the company. We used to use many software systems to manage our
PART N ERS
Tech Mahindra “Tech Mahindra offers innovative and customer centric IT experiences, enabling enterprises to develop their technological capabilities and deliver tangible business value. I visited Tech Mahindra in
FEBRUARY 2020
India and saw the importance of the human factor and how they invest in creating a professional business environment for their employees. As a supply chain expert, I always look for partners like Tech Mahindra”.
operations across different functions, some of which involved paperwork. But we’ve decided that, by June 2020, the supply chain at Vodafone Qatar will be completely paperless. We’ve digitalised all our processes and procedures. Supplier prequalification, supplier evaluation, supplier proposal evaluation, e-auctions, e-sourcing. These are all tools linked to the ERP, helping us to change the way we manage procurement activity within the organisation.” The introduction of new technology tends to require a process of change management, and in this case it was no different. “It was a little bit difficult to explain to someone who was used to using the same system for a long time how this move from a system they’d been using for the last 10 years was going to change their life and make it easier,” Nehme remembers. “But we worked to simplify the process and procedures to ensure that the delivery was successful from our side. ERP was our first step in digitalisation, and it was a critical step. Any organisation needs to have a proper ERP system to manage their processes, ensure mid dl e e a s t . b u s in e s s c hie f. c o m
27
V O D A F O N E Q ATA R
PART N ERS
Hayat Communications “Hayat Communications’ service and products are the benchmark for quality and security. As a partner, Hayat maintains a high quality of professional service and integrity. Health and safety is a critical concern for Vodafone,
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CLICK TO WATCH : ‘TAKING THE LEAD WITH 5G’ 29 transparency and make sure that eve-
supply chain plays in any organisa-
rything is streamlined.”
tion – I believe digital transformation
While the ERP was the first step, going forward, Nehme sees technol-
is the future of SCM.” Qatar’s growth is also something
ogy playing an ever-more crucial
Nehme has had a hand in, having
role in the supply chain. “Operators
previously worked on a number of
across the world are investing
large projects in the country. “I’ve
more and more in the supply chain,”
been working in this part of the
Nehme concludes. “We’re closely
world for the last 13 years, mainly in
monitoring, for instance, blockchain
Qatar. It’s been growing at break-
and the impact it’s having on our
neck speed. People here are really
industry and others. In the future,
welcoming and they’re closely tied
we’re going to be using innovative
to their culture. It feels like home. I’ve
tools and technologies like block-
participated in a lot of projects, and
chain in the future to improve the role
when I’m driving passed and I know mid dl e e a s t . b u s in e s s c hie f. c o m
V O D A F O N E Q ATA R
30
“ The supply chain has become a critical department for any organisation” — Hicham Nehme Senior Supply Chain Manager Vodafone Qatar that I was involved, I feel very proud. The development that’s happened in Qatar over the last 10 years is magnificent. I’m proud to have played a small role in this and wish the very best for this country.”
31
mid dl e e a s t . b u s in e s s c hie f. c o m
LEADERSHIP
Becoming an entrepreneur in the logistics industry 32
MAJED ZAMBARAJI, CEO AND MANAGING PARTNER OF TIME EXPRESS, DISCUSSES THE LOGISTICS INDUSTRY AND BECOMING AN ENTREPRENEUR WRITTEN BY
FEBRUARY 2020
GEORGIA WILSON
33
mid dl e e a s t . b u s in e s s c hie f. c o m
LEADERSHIP
KEY TRENDS AND DISRUPTORS WITHIN LOGISTICS When discussing the current trends and disruptors within the logistics industry, Majed Zambaraji, CEO and Managing Partner of Time Express, highlights e-commerce as a key trend. “In the logistics industry, e-commerce is the largest current trend, reaching US$1.3trn. It is an industry that is changing radically. The global parcel market is currently worth over US$343bn, of which MENA 34
consists of US$25.7bn. We are living in a retail revolution driving new trends in courier logistics as digital reshapes the industry. With the retail space becoming multi regional, larger competition arises and old norms need to change.” Zambaraji further explains that “the retail revolution we are currently living in, where customers are quick to adopt new technologies and convenience at the click of a button, is creating new norms. With retail stores often considered slow to adapt these new logistics trends, combined with recent technologies, new opportunities are being created for entrepreneur’s to solve the complex demand and merchant expectations.”
FEBRUARY 2020
“ We are living in a retail revolution driving new trends in courier logistics as digital reshapes the industry” — Majed Zambaraji, CEO and Managing Partner, Time Express
35
BECOMING AN ENTREPRENEUR Speaking from personal experience, Zambaraji reflects on the challenges he faced when establishing Time Express. “There were many challenges. In particular, getting new business is hard as a startup. Clients want low prices, excellent service, references, and secured vendors. So it is important to gain trust based on your knowledge.” Zambaraji also highlights the challenge of juggling time consuming admin work with mid dl e e a s t . b u s in e s s c hie f. c o m
LEADERSHIP
building a strong business revenue.
tions, dynamics and policies
In addition to these financial chal-
of each area. “We currently cover 19
lenges, Zambaraji also explains that
emerging countries,” he notes. “The
fierce competition can be a chal-
challenges are the numerous
lenge. “You need to think out of the
regulations, norms, customs, lan-
box to get into a market segment.
guage, traditions, localisation,
We looked for niches – under-pene-
employment policies, free zone
trated and under served areas such
legislations, company registration
as e-commerce, pharmaceuticals
policies, and import and export
and telecom.”
ministry requirements. The dynamics
When it comes to the challenge
36
and complexities of the Middle East,
of operating in multiple regions, Zam-
Africa and India region makes
baraji highlights the importance
know-how and knowledge on how to
of understanding numerous regula-
operate locally critical.”
“ You need to think out of the box to get into a market segment. We looked for niches – under-penetrated and under served areas such as e-commerce, pharmaceuticals, and telecom” — Majed Zambaraji, CEO and Managing Partner, Time Express FEBRUARY 2020
CLICK TO WATCH : ‘INTERNATIONAL PARCEL AND COURIER SERVICES IN DUBAI’ 37
ESTABLISHING YOUR OWN COMPANY
of being able to have a vision of
“The most important aspect in
where an industry is moving or
building your business is to not be a
getting disrupted. “Once you know
‘me too’. You need to have a strategy
this you can position your model to
of differentiation and innovation,”
take advantage of new upcoming
says Zambaraji. “Look for what
waves.” Giving an example of apply-
uncovered areas you can take
ing this mindset to his own business,
advantage of. Look at what is missing
Zambaraji further explains that Time
for consumers or what can make an
Express experienced consumers
industry or service better and more
becoming flex shoppers, who do not
practical. Ultimately, you want to be
see a difference between physical
enhancing and improving the way
space and virtual space. “With this
trading works.”
shift to e-commerce, parcel courier
To create a good business model, Zambaraji believes in the importance
shipping is growing rapidly and at Time Express we engage with large mid dl e e a s t . b u s in e s s c hie f. c o m
LEADERSHIP
retailers to meet new consumer expectations and price points for fast and cheap delivery.” When asked what makes a good leader, Zambaraji discusses the importance of motivation. “A good leader is someone who picks employees that are better than themselves and ensures that they stay motivated. The challenge however, with a startup is often these people’s salaries are too high to absorb. So, you need to give a sense of mission to your team to keep 38
them motivated and see the light at the end of the tunnel. For your best players, you need to let them be part of your ship and give them shares in your company.”
as a “provider of an online integrated API platform to connect retailers in
IN PROFILE: TIME EXPRESS
the UK, Europe, and USA interna-
When asked to define his company,
tionally.” Time Express enables
Zambaraji describes Time Express
retailers to ship internationally in an economic way, resulting in lower costs versus integrators. “Over the last four years, Time Express has tripled in size and is the number one leader in e-commerce last mile fulfilment in the Middle East, India and Africa, with a presence in 19 countries.”
FEBRUARY 2020
“ The world is overcrowded. There are many competitors in every industry. As an entrepreneur there is no room for mistakes” — Majed Zambaraji, CEO and Managing Partner, Time Express
Zambaraji attributes the company’s
mistakes. You need to work in an
success to his drive to wanting to
industry that you know inside out and
learn more, hard work, commitment
excel in it. Entrepreneurship has no
and a willingness to go the extra mile
room to learn, you must be more
to get things done. “Thinking out of
knowledgeable than others in your
the box and looking for new solutions
industry. But most importantly, you
as well as different ways to address a
need to have patience, cash to survive,
problem have been key to my career
be very persistent and believe in
advancement,” says Zambaraji. His
yourself,” concludes Zambaraji.
advice to others looking to radically transform their industry is: “the world is overcrowded. There are many competitors in every industry. As an entrepreneur there is no room for mid dl e e a s t . b u s in e s s c hie f. c o m
39
TECHNOLOGY
40
g n i c a r b Em s r u o i v a h be in a new l a c i g o l o n tech age WR ITT EN BY
AM BE R DO NO VA N- ST EV EN
S
orus, h lC ia c o S , O T C , n se n e Tim Chri st ge m e n t a g n e e e y lo p m e e th w explains ho u ances of n e th s d n ta rs e d n u rm platfo unic ation m m o c e e y lo p m e to r e employ
FEBRUARY 2020
41
mid dl e e a s t . b u s in e s s c hie f. c o m
TECHNOLOGY
S
ocialChorus has earned its name as one of the top employee engagement plat-
forms by working with CEOS to maximise the delivery of information to employees
in what is an increasingly misaligned environment.
SocialChorus was founded by Greg Shove and Nicole Alvino in 2008, and as the company started to gain momentum, Shove was on the search for a CTO who wanted to transform the company, taking its consulting-based foundations and making it a truly staff-led business. Tim Christensen's belief in creating genuine value in people’s day-to-day lives 42
aligned with Shove on a philosophical level, and so he joined the team to create a software that would achieve this. He explains: "Initially we didn't have a firm idea of what we desired the product to be, but we knew what we wanted it to do: improve a person's day. "Christensen, who hails from a working class family, reflects that over the last 30 years very little has been divested to the blue-collar worker, despite the continued evolution of technology. “For this reason, we wanted to build a product that didn't discriminate against position or function; one that promoted equality and added value into every worker's day." Reflecting on the five years since, Christensen shares one particular milestone he is particularly proud of: increasing the product’s daily users from a few hundred to over half a million. "It's very FEBRUARY 2020
“ Our support team will not be satisfied with anything less than SLA 100%” Tim Chris tensen, CTO, SocialChorus
43
rewarding to see that it is working and making an impact,” he says “This has always been about reaching as many people as possible, and my personal satisfaction is seeing this impact on an individual level." Considering SocialChorus’ success, Christensen explains that, while there are several platforms designed for internal communications, knowledge management and collaboration, there is no concrete space in enterprise that connects knowledge and news. "From mid dl e e a s t . b u s in e s s c hie f. c o m
TECHNOLOGY
nt a w 't n o d e w , y n a p m o “ As a smaller c , s e r u t a e f f o r e b m u n r to win on scale o � y t li a u q n o in w o t we want Tim Chris tensen, CTO, SocialChorus
44
a workflow perspective, we aim to
CEOs and workers when delivering
make the communicator more effec-
information. "For example," Christensen
tive, assist them in telling the right story
explains, "a CEO may communicate via
and we will assist in its delivery and
email, or workers may receive informa-
amplifying the goals of the communi-
tion when congregating in the break
cator." This, he explains, benefits the
room. Our role is to amplify these mes-
worker. "If we can make their lives eas-
sages in a way that enhances prefer-
ier in two minutes each day, then we've
ences, and not just discard them." This
been successful, because we're look-
often becomes an oversight that has
ing at it holistically, both from the
caused many companies to lose out on
worker and from the communicator."
delivering an optimised service. "Some
Within this, SocialChorus must
competitors want to push organisa-
embrace the existing preferences of
tions to use one centralised platform,
FEBRUARY 2020
CLICK TO WATCH : ‘SOCIALCHORUS – BRAND VIDEO’
but if marketers enjoy using Marketo,
"Real success is getting customers to
or engineers enjoy using Slack, or if a
engage with the content, not getting
grocery teller uses a break room, then
them to engage with the content on
that needs to be respected. For exam-
our platform."
ple, if you get your information in the
To carry this attitude with confidence
breakout room, then a digital display
and success, the platform must be
may be the best way to communicate
accompanied by exceptional service,
information, or by sending it to their
which Christensen believes the team at
personal email. By pushing users to
SocialChorus has in spades. "We have
move to a different platform altogether,
a great deal of pride in all that we do.
another hurdle is placed between the
For example, our support team will not
communicator and worker, and that is
be satisfied with anything less than
not solving the issue," says Christensen.
SLA 100%, and they will be disappointed mid dl e e a s t . b u s in e s s c hie f. c o m
45
TECHNOLOGY
with even 5% less. This sort of attitude is present across all of our departments, and prospective clients can see this from us when deciding between us and a competitor — they can see how much we care. As a smaller company, we don't want to win on scale or number of features, we want to win on quality." While competitors have larger teams, Christensen explains that having a smaller team rewards a much higher quality due to the close-knit dynamics and collective conscientiousness, 46
and this is reflected in positive customer feedback that deems SocialChorus the best in the market. "It is rewarding to know that we have an excellent product,” he says, “it doesn't just give out features, it solves real problems." Christensen forecasts that this year will bring a number of new challenges:
a message while traveling to an airport
"I will likely begin working on new trans-
and have the service transcribe and
lations and transcripts, as well as low
translate it to go into an article to be
band-width usage." One of his key
distributed to workers, say perhaps, in
challenges is to connect the CEO
Zimbabwe, where there is a weaker
with employees in demographics with
internet connection. This would give
low technology, or in other instances,
these workers the same access to
where the CEO may not speak the
information. As data is only growing
same language as employees. "I would
in value, Christensen shares that the
like to be able to have a CEO record
next step in the company's growth is
FEBRUARY 2020
“ It is rewarding to know that we have an excellent product� Tim Chris tensen, CTO, SocialChorus 47
to build upon SocialChorus' analytics capabilities in order to deliver insights and intelligence, not only to discover trends, but to be able to identify why they change and how to respond to it. Paired closely with this, machine learning will be used for auto transcriptions and translations, and AI will enable recommendations and relevancy, for speed and tuning.
Tim Christensen, CTO, SocialChorus mid dl e e a s t . b u s in e s s c hie f. c o m
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S U P P LY C H A I N
DIGITAL INNOVATION IN LOGISTICS WAREHOUSES
50
FEBRUARY 2020
Business Chief takes a look at how three leading logistics companies are digitalising their warehouses WRITTEN BY
51
GEORGIA WIL SON
mid dl e e a s t . b u s in e s s c hie f. c o m
S U P P LY C H A I N
W
ith technology evolving at an exponential rate, and the logistics industry needing flexible
solutions for its complex operation, we
take a closer look at some of the successful deployments of digitalisation within the warehouses of leading logistic companies around the world.
UPS Founded in 1907, UPS has been “breaking barriers throughout its 100+ years as 52
a leader in global commerce”. Within the company’s international supply chain and freight operations, its key services include: logistics, distribution, transportation, freight (air, sea, ground and rail) and freight forwarding.
SUPER HUB To combat the challenges that come with providing efficient and on time delivery during peak seasons, UPS uses new technologies within its warehouse facilities to create operational precision and network efficiencies. “Our transformation initiatives are enabling UPS to perform at high levels, even as we handle nearly double the average daily FEBRUARY 2020
53
package volume as the rest of the year. We are confident we will sustain these high levels of service and we’re ready to take on even more customer shipments in the coming weeks,” commented David Abney, CEO and Chairman of UPS. The new technologies UPS is harnessing include: • Advanced analytics; UPS has developed a peak volume alignment tool (PVAT) utilising advanced analytics to efficiently manage loads by synchronising its volume demands and mid dl e e a s t . b u s in e s s c hie f. c o m
S U P P LY C H A I N
capacity. In addition to PVAT, UPS is
developed a bluetooth audio device
utilising advanced analytics to bet-
that gives its employees processing
ter forecast its package volume that
instructions as they scan packages.
needs to be processed. • Network planning tool (NPT);
technology, UPS has been utilising
by utilising advanced analytics,
innovations for its drivers too. These
artificial intelligence (AI) and opera-
include mobile tools to improve
tions research, UPS has developed
onboarding and effectiveness, via
its NPT to help coordinate trac-
a delivery helper app. UPS has also
tor-trailer movements between its
developed UPSNav to provide drivers
sortation hubs to reduce bottlenecks.
with higher levels of accuracy and pre-
• Dynamic Sort Instruction (DSI); 54
In addition to its new in-house
cision when making deliveries.
to increase employee productivity
As a result of UPS’ global deploy-
and reduce training time, UPS has
ments of automation, AI and advanced
FEBRUARY 2020
CLICK TO WATCH : ‘DB SCHENKER INTRODUCING DIGITAL PICKING’ 55
“ Delivering automation possibilities for logistics and warehouse operations is a foundation for building the next generation supply chain” — Xavier Garijo Member of the Board for Contract Logistics, Schenker AG
mid dl e e a s t . b u s in e s s c hie f. c o m
S U P P LY C H A I N
analytics, UPS has seen between 25%-35% higher efficiency.
DB SCHENKER With over 140 years of experience supporting the global exchange of goods, DB Schenker strives to provide its customers with “innovative supply chain solutions to challenge the status quo”. DB Schenker provides its solutions for land transport, air freight, ocean freight, contract logistics and supply chain management. 56
ROBOTICS POWERED BY AI To provide flexible solutions within its warehouses to drive productivity, DB Schenker has been utilising the combination of AI and robotics with the help of Gideon Brothers — a global manufacturer of autonomous robots. With the digital age becoming increasingly complex, DB Schenker strives to offer its clients a strategic advantage. “DB Schenker continuously explores opportunities to integrate innovations from visionary start-up companies,” commented Xavier Garijo, Member of the Board for Contract Logistics at Schenker AG. FEBRUARY 2020
“ This is a technological leap, self-driving machines, powered by vision and AI, will succeed where earlier technology failed” — Matija Kopic CEO and Co-Founder, Gideon Brothers
57
“Delivering automation possibilities for
and stereoscopic cameras, to pro-
logistics and warehouse operations is
vide next generation robotics vision.
a foundation for building the next gen-
In addition to its next generation
eration supply chain.”
robotic vision, the robots can move
“This is a technological leap,” commented Matija Kopić, CEO and
800kg and have a hot-swappable battery system to minimise downtime.
Co-Founder of Gideon Brothers. The
“Self-driving machines, powered
robotics developed by DB Schenker
by vision and AI, will succeed where
and Gideon Brothers utilises a visual
earlier technology failed,” added
perception based robotic autonomy
Kopić. “It will become ubiquitous in
system that combines deep learning
industrial environments.” mid dl e e a s t . b u s in e s s c hie f. c o m
S U P P LY C H A I N
“ The future is exciting. The future is about innovation and making sure we continuously improve” — Oscar de Bok CEO, DHL Supply Chain 58
DHL Speaking with Oscar de Bok, CEO of DHL Supply Chain in January’s edition of Business Chief, de Bok highlighted the need for flexible solutions as supply chains become increasingly complex and the importance of a large global company such as DHL having a strategy that utilises digitalisation and collaborative robotics. Between now and 2025 the company aims to invest US$2.2bn into digitalisation of its logistics and robotics. FEBRUARY 2020
ROBOTICS From cleaning robots to robotic arms within DHL’s warehouses, its operations are seeing the benefits of digital automation to enhance its workforce. Cleaning robots (Neo); developed by Avidbots, DHL has deployed its cleaning robots in multiple standard warehouses, to reduce the need for people to complete repetitive and tedious tasks. ‘Follow me’ robots; designed by Effidence, it is a simple trolly that follows an associate will they pick items to help transport the load. Once it is full you can simply press a button to send it on its way, while another replaces it. Robot arms (Sawyer); Sawyer is a robotic arm developed to sense its surrounded removing the need for it to be static and caged. This robotic arm can be moved to where it is needed to complete repetitive and mundane tasks.
mid dl e e a s t . b u s in e s s c hie f. c o m
59
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S U S TA I N A B I L I T Y
62
S E S S E N I S U B W O H E V E I H C A T S E B N CA M R E T G N LO Y T I L I B A N SUSTAI ain
pply Ch u S , r o t c e ir D anaging M l, e e S plains d r x a e , h e r a Ric w la e d , able K & US) in (U a s t s ic t u s is a g o d il L u & es c a n b iv t u c e x e a ul l h e v g n lo e h t how c -le r o igned f s e d l e d o m s s busine W RI TT EN BY
R IC H A R D S E E L
FEBRUARY 2020
63
mid dl e e a s t . b u s in e s s c hie f. c o m
S U S TA I N A B I L I T Y
I
n today’s highly-competitive business environment, even the largest, most profitable organisations struggle to maintain
business longevity. To increase their chances
of long-term success, companies must transform themselves into sustainable enterprises, capable of adapting to changing priorities, markets and customer demand. European organisations often lead the way. KPMG’s latest Change Readiness Index ranks business action on rapid change based on an 64
‘Enterprise Sustainability’ metric, which takes into account factors such as carbon emissions per unit of GDP and the energy mix used by the business community. The ranking places Switzerland first overall, and in terms of Enterprise Sustainability, for the second consecutive year. European countries fill five other places in the Enterprise Sustainability top 10. There are three areas around which discussions and debates about the sustainable enterprise tend to be focused: the environmental impact or footprint of the business, the need to create a sustainable business model and why a sustainable workforce is critical. The focus on reducing environmental impact by reducing energy FEBRUARY 2020
65
mid dl e e a s t . b u s in e s s c hie f. c o m
S U S TA I N A B I L I T Y
a b le n i a t s u s a g n i “ Build ly n o l l i w e c r o f k wor , r e v e w o h , k r truly wo he t n i e n o y r e v e if itted m m o c s i s s e bu s i n nge ” a h c o t n e p o a nd — Richard Seel, r, Supply Chain to c e ir D g in g a n a M US), delaware & Logistics (UK &
usage, emissions and introducing ‘smarter’ practices in the workforce is important. However, businesses also need to make certain that their specific business model is sustainable. They need an approach that sustains resources within the business over time.
CREATING A SUSTAINABLE BUSINESS MODEL From the outset, planning for the long-term is key, which is becoming increasingly difficult when factors
66
such as market demand and competition are constantly shifting. To achieve longevity, organisations need to apply sustainability principles in everything they do. Resources — both people and other assets — are crucial. Sustainable businesses focus on making those resources sustainable over time — and that means being willing and able to adapt the business model to match changed priorities. In line with this, true sustainability is often about understanding the market landscape and ensuring the business proposition FEBRUARY 2020
CLICK TO WATCH : ‘AR METALLIZING ENSURES SUSTAINABLE GROWTH WITH MICROSOFT DYNAMICS’ 67 is aligned to shifting customer
involve the combination of historical
demand. To be sustainable, smart
data, data analytics and key algo-
organisations must reflect on
rithms to quickly detect anomalies
addressing customer and societal
and notify the relevant people quickly,
needs, often without even knowing
enabling businesses to reduce costs
in advance what the optimal solution
by addressing and resolving any
might be. In today’s age of automation,
inefficiencies in the process, as well
building a sustainable business
as stay compliant by quickly identify-
model will almost certainly involve
ing where it may be in breach of the
digital transformation.
rules and rapidly rectifying this.
That could mean the introduction
These examples highlight the
of machine learning and AI-powered
sustainability benefits that digitally-
systems that diagnose problems in
driven innovations can bring to
advance, enabling quick intervention
businesses. However, when organisa-
and problem resolution. It could
tions move to digital technologies, mid dl e e a s t . b u s in e s s c hie f. c o m
S U S TA I N A B I L I T Y
they need to have a ‘Plan B’ in place to be able to keep the business up and running in the event that systems and networks are brought down or experience a security breach. A recent cyber — attack on Norsk Hydro, a global aluminium producer, forced the company into desperate measures. The entire workforce — 35,000 people — had to switch to pen and paper as a result. Production lines shaping molten metal were switched over to manual functions, and in some cases, long68
retired workers came back in to help colleagues run things “the old-fashioned way”. a key role here in indicating just how
A SUSTAINABLE WORKFORCE
positive and sustainable workplace
Every business can look to reduce
culture is. Businesses need insights
their environmental impact and make
into their workforce that span levels,
changes to their business model to
departments and entities — and it’s
drive long-term sustainability. However,
important to link talent data with
if they do not put practices in place
enterprise information. The answer
to cultivate sustainable employees,
is a global system of records able to
they risk undoing that good work.
harmonise data generated by different
To drive a more sustainable work-
sources, providing key insight into
force, leaders must cultivate an
problems or issues. It is this type of
environment that helps people
reporting which drives sustainability.
to be empowered, productive and resilient. Technology can play FEBRUARY 2020
Companies must apply the digital mindset to HR and workplace processes
e e y o l p m e n e “ Wh p u t ’ n s i g n i e b well ss e n i s u b e h t , r to pa the s s o r c a s r e f f su in ” a h c e u l a v e r i ent — Richard Seel, r, Supply Chain Managing Directo US), delaware & Logistics (UK &
69
to support productivity and growth — or risk becoming obsolete. SAP SuccessFactors, a leading cloud-
attrition rates make organisations more sustainable. This approach to building a sustain-
based HR solution, is an integrated
able workforce will only truly work,
environment encompassing all HR
however, if everyone in the business is
processes that is driven by data and
committed and open to change. There
analytics — and the ideal path to
must be business-wide sponsorship to
sustainable smart HR.
creating and maintaining a sustainable
By helping to ensure employees are happy and have greater wellbeing at work, organisations can
work culture — and this may involve cultural and operational change. As we look to the future, it is likely
increase long-term business viability.
that predictive analytics will become
Employees that are happy are less
ever more important in maintaining a
likely to leave, and the resultant lower
happy, sustainable workforce. As an mid dl e e a s t . b u s in e s s c hie f. c o m
S U S TA I N A B I L I T Y
ns o i t a s i n a g r o , ity v e g n o l e v e i les h p i c n i r “ To ac p y t i l i b ina a t s u s y l p p a o need t o” d y e h t g n i h t y in ever — Richard Seel, r, Supply Chain to c e ir D g in g a n a M US), delaware & Logistics (UK &
70
FEBRUARY 2020
example, an employee applies for maternity leave through the organisation’s HR system. This employee ‘life event’ triggers the HR department to start offering communications specific to that employee, so for example, asking: have you thought about childcare vouchers? Have you thought about the return-to-work programme or our part-time working options? In rolling out concepts such as this one, employee wellbeing is prioritised. Ultimately, the strength of a company lies in the health of its people, especially in the professional services industry where human capital is the company’s added value. When employee wellbeing isn’t up to par, the business suffers across the entire value chain, making burnout a business critical challenge, and driving down overall levels of sustainability into the bargain. But businesses that focus on a sustainable workforce and ally that with a sustainable business model and environmentally-friendly business practices are likely to be here for the long-haul.
mid dl e e a s t . b u s in e s s c hie f. c o m
71
CITY FOCUS | DOHA
DO
City Focus
72
Business Chief MEA explores the Qatari capital of Doha and the city’s ongoing engagement with renewable energy, smart city strategy and international sporting culture WRITTEN BY
FEBRUARY 2020
HARRY MENEAR
OHA mid dl e e a s t . b u s in e s s c hie f. c o m
73
CITY FOCUS | DOHA
O
n the sun-baked shore of the Persian Gulf, the Qatari capital city
of Doha looks out across one of the world’s most valuable shipping lanes. Every day, more than 17 million barrels of crude oil pass
through the Gulf, and out through the Strait of Hormuz. Qatar – a member of OPEC until 2019 – has reserves of around 25bn barrels and produced 1.72 billion barrels of oil equivalent per day (boepd) in 2017. While 74
this makes the country a relatively minor oil producer in comparison to its neighbours, the majority of its economic clout comes from natural gas. The country exports more than 78 million tonnes of liquid natural gas per year, which is a significant contributor to its US$167bn GDP. However, Qatar – like many nations in the region – is eager to prove that it’s more than the sum of its ties to the energy sector, and the heart of its ongoing modernisation is its capital city. Home to over 1.8 million people, Doha was founded in 1825, when the country still existed under British rule. Since gaining independence in 1971, Qatar has grown
FEBRUARY 2020
“Qatar is eager to prove that it’s more than the sum of its ties to the energy sector�
75
mid dl e e a s t . b u s in e s s c hie f. c o m
CITY FOCUS | DOHA
“Al Kharsaah Solar Power Plan will support a full 10% of Qatar’s energy needs” into one of the emergent economic
renewable energy, smart city strategy
powerhouses of the region, with
and international sporting culture.
Doha at its heart. More than 80%
76
of the country’s population lives in
LUSAIL CITY
Doha’s metropolitan area, which is
Located just 15 km from Doha proper,
the fastest growing in Qatar. This
Lusail City was first announced
month, Business Chief MEA explores
in 2005 as a smart city by design.
Doha and its surrounding area, and
Described by Stéphanie Buret as
the city’s ongoing engagement with
“pharaonic in its scale and ambition,”
FEBRUARY 2020
CLICK TO WATCH : ‘HOW TO SPEND A DAY IN DOHA’ 77
Lusail will reportedly provide a
Lusail a smart city is its sustainable
switched on, high-technology envi-
facilities and utilities. One impor-
ronment comprising both wired and
tant utility is the district cooling
wireless communication networks
system, whereby four district sta-
to offer advanced services.
tions and 175 km of piping make it
At the heart of the 38 km square
one of the largest central cooling
development is the Lusail Command
systems in the world. In numbers,
& Control Centre (LCCC), a state of
this will save an estimated 200,000
the art command centre and a highly
tonnes of carbon dioxide annually.”
sophisticated data centre, where all
For any urban development in the
smart services management and
heart of the desert, energy conser-
monitoring will be centralised.
vation is key to a sustainable urban
According to a special report by Volvo, “a major part of what makes
strategy. Lusail is bursting with smart meter technology, which enables mid dl e e a s t . b u s in e s s c hie f. c o m
CITY FOCUS | DOHA
homeowners to understand their
AL KHARSAAH SOLAR POWER PLANT
energy consumption via in-home dis-
Surrounding its metropolitan area
plays, as well as helping city planners
with new smart city developments
manage demand for water and power.
isn’t the only step Doha is taking to
“Not only does it make practical
ensure its preparation for a greener
financial and environmental sense
future and develop a more diversi-
to use smart meters, but the sys-
fied economy. Last month, the Qatari
tem represents just one section
government announced that it had
of a much larger centralised infra-
signed an agreement with French
structure network, which provides
energy giant Total and Japan’s
world-class, centrally-controlled
Marubeni to construct an 800 mega-
services in Qatar,” commented
watt solar power plant close to Doha.
Essa Kaldari, CEO, Lusail Real
The facility – which is the largest
Estate Development Company.
project of its kind that Total has been
78
FEBRUARY 2020
involved in – will reportedly support a full 10% of the nation’s energy demands, Reuters reported. The plant, which will cost US$467mn to build, will be 60% owned jointly by Qatar Petroleum (QP) and Qatar Electricity and Water Company (QEWC), with Total and Marubeni owning the rest. According to Qatari Energy Minister Saad al-Kaabi, the Al Kharsaah project “will generate about eight times the solar energy Qatar had pledged to build, helping the organisation
“ The 2020 FIFA World Cup will place logistical pressures on the country the likes of which haven’t been seen at any sporting event in history” 79
mid dl e e a s t . b u s in e s s c hie f. c o m
CITY FOCUS | DOHA
of a carbon-neutral event.” The event in question is a cornerstone of Doha’s strategy as it enters the new decade: the 2020 World Cup.
THE FIFA WORLD CUP Hosting a World Cup is a herculean undertaking. The 2018 event cost Brazillian taxpayers $15bn, with FIFA picking up a further $2bn tab for operational costs. Qatar successfully bid to host the 2020 FIFA World Cup in 2009. It will be the smallest country 80
to hold a World Cup by a significant margin (Switzerland currently holds the title and is three times bigger than Qatar), as well as being the first Arab and muslim-majority nation to host the event. In 2018, more than three million people watched matches live, in a country with – near enough – 100 times the population of Qatar. The event will place logistical pressures on the country the likes of which haven’t been seen at any sporting event in history. Doha’s Hamad International Airport is the only commercial terminal in the country, which is prompting the reopening of the city’s old airport – shuttered since 2014 – in FEBRUARY 2020
1.85mn Population of Doha
order to accommodate a further 10 million passengers during the event. Whereas during other World Cups, fans have had the option to travel
1820
Year founded
to the event by train, car or bus, an ongoing boycott led by Saudi Arabia means that millions of guests must arrive in the country by air. In order to combat the environmental impact of
Nearest Airport
7.9km
Hamad International Airport
the event, Doha and surrounding cities have invested heavily in improving the region’s rail travel. Nasser al-Khater, chief executive of FIFA World Cup Qatar 2022, commented: “The fact that the metro now is going to be available for fans to use is going to take a lot of carbon out of the environment because of the decreased usage of cars and buses.” He also addressed concerns by Greenpeace that air conditioning at the eight stadiums and surrounding venues would create impactful emissions by noting
© CC Fifa
that the tournament organisers were working to make stadiums “as environmentally friendly as possible.”
mid dl e e a s t . b u s in e s s c hie f. c o m
81
T O P 10
Digital disruption leaders
82
Business Chief Middle East takes a look at the top 10 organisations and initiatives driving digital disruption within the region WRITTEN BY
FEBRUARY 2020
GEORGIA WILSON
83
mid dl e e a s t . b u s in e s s c hie f. c o m
T O P 10
84
10
Expo 2020 Dubai, UAE
One of the largest events staged in the United Arab Emirates (UAE), Expo 2020 welcomes 190 countries to showcase their culture, collaboration and innovation with their industry peers to drive disruption and shape the future. “We all have the power to shape the future,” says the event.
EXPO 2020’S THREE THEMES INCLUDE: • Opportunity - Expo 2020 aims to support the development of innovative solutions • Mobility - to explore the use of digital connectivity and how it is shaping the future • Sustainability - driving innovative ways to sustainably source food, water and clean, renewable energy FEBRUARY 2020
09
85
Ghadan 21
Abu Dhabi, UAE
Ghadan 21 is a government accelerator programme launched in 2018 by H.H. Sheikh Mohammed bin Rashid Al Maktoum. This three-year programme, with a fund of US$13.61bn, aims to drive innovation and economic development in Abu Dhabi. Under the programme, companies are benefitting from multiple licensing initiatives to reduce the process complexity and resultant time to obtain a commercial licence. In addition, Abu Dhabi can benefit from two recently established laws, the Public Private-Partnership (PPP) law and the Foreign Direct Investment (FDI) law. Both laws aim to support local and international investment opportunities. mid dl e e a s t . b u s in e s s c hie f. c o m
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08
87
Hub71
Abu Dhabi, UAE
Hub71 is a global tech ecosystem of founders, investors and business enablers. Its core focus is to create an optimal environment for innovative tech companies looking to maximise their success and scale globally.
THE THREE MAIN SERVICES HUB71 OFFERS ARE: • Capital via venture capital funds and investors • Favourable business environments via Abu Dhabi Global Market • Global markets via Mubadala’s investment company network Hub71 is a flagship initiative for the Ghandan 21 accelerator programme and has partnerships with multiple organisations including: Mubadala, Abu Dhabi Investment Office (ADIO), Abu Dhabi Global Market (ADGM), SoftBank and Microsoft. mid dl e e a s t . b u s in e s s c hie f. c o m
T O P 10
88
07
Mohammed Bin Rashid Innovation Fund UAE
Established in 2018, Mohammed Bin Rashid Innovation Fund (MBRIF) is a federal government initiative, represented by the Ministry of Finance (MoF), with Emirates Development Bank (EDB) hosting and operating the fund. MBRIF is made up of $5.44mn in capital to support individuals and companies registered in the UAE that offer unique and innovative ideas. MBRIF’s core goals of bridging the financing gaps, improving economic competitiveness and growth, stimulating public-private collaboration, and commercially accelerating and promoting the UAE aim to enhance the seven sectors in the National Innovation Strategy. MBRIF’s particular ambition is to spark innovation within the technology sector and contribute to the UAE’s vision of becoming a technologically advanced state. FEBRUARY 2020
06
Abu Dhabi Investment Office Abu Dhabi, UAE
Founded in 2018, Abu Dhabi Investment Office (ADIO) is a UAE government body that aims to drive foreign direct investment from companies outlined in the country’s National Innovation Strategy. When it comes to technological innovation, ADIO is working specifically to accelerate advanced agricultural technology (AgTech) to develop the UAE into a global leader in desert agriculture. As a result, ADIO has established a three-year programme with up to $270mn incentives for innovators in AgTech and a rebate of up to 75% on all research and development activities. ADIO’s three core sectors within the AgTech sector include: algae-based biofuels, indoor farming and precision agriculture and ag-robotics. mid dl e e a s t . b u s in e s s c hie f. c o m
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The kitchen revolution
As operators add more digital channels to their restaurants, it creates new complexity and challenges. Restaurants have been used to controlling the transaction flow. Now, with the rise of delivery marketplaces, mobile applications and in-store selfservice, restaurants need to compete at a higher level and adapt to a digital-first ordering environment. This means ensuring proper routing of orders into the kitchen, a focus on food quality and distribution at the right time and data/analytics to measure and improve the performance of the kitchen. Key trends impacting kitchen optimisation and production, include: • The rise of off-premise ordering & delivery To meet this growing consumer demand, restaurants need robust kitchen production systems to accommodate the flow of orders into the restaurant from multiple channels. • Speed of service Consumers no longer have any patience for waiting in lines or waiting for food. They essentially want to “speak” directly to the kitchen. • Growing dependency on kitchen data Real-Time production metrics are fast becoming a requirement. Operators need to be able to gauge order volume, production status, progress order times and manage staffing levels within their kitchen in real-time.
© 2019 NCR Corporation Patents Pending
Successful brands we work with are investing in kitchen optimisation and production technology to stay ahead of the curve. NCR Kitchen Operations solutions enable restaurants to plan and prepare for anticipated spikes in order volumes and manage the production of orders coming from all channels to improve the customer and staff experience. Brands that are leveraging NCR Kitchen Operations and Digital Signage are also improving the customer experience by providing guests with accurate quote times and order status notifications via text paging and in-app notifications. Large quick-service chains using our technology have increased their speed of service by as much as 15% with improved visibility into order volume, production status, order times and staffing levels. Over 30,000 restaurants around the world use NCR Kitchen Operations to manage their kitchen production. While not visible to consumers, kitchen optimisation and production technology reduce errors, reduce waste and have a tangible impact on the customer experience.
Find out more. Visit www.ncr.com/restaurants and see how our technology can help your business thrive.
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Mubadala
Abu Dhabi, UAE
Founded in 2002, Mubadala is a global investment company that strives to create sustainable financial returns in addition to creating a globally integrated and diversified economy. Mubadala invests in various sectors within the UAE, with specific focus on semiconductors, the Internet of Things (IoT) and information and communication technology (ICT). In October 2019, Mubadala launched two investment funds designed for technology companies in the MENA region to foster technological talent. The first, a $150mn fund to support Hub71 for regional expansion and growth. the second, a $100mn fund for direct investment in startups committed to operating through Hub71. mid dl e e a s t . b u s in e s s c hie f. c o m
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Dubai Future Foundation Dubai, UAE
Launched with the ambition to play a pivotal role in shaping the future of Dubai, the Dubai Future Foundation was established in response to the National Innovation Strategy to drive the region to achieve competitiveness within global arenas. The foundation has established multiple initiatives to drive innovation. Specifically for the technology sector, it has established: • The Centre for the Fourth Industrial Revolution, designed to keep up with rapid global changes by preparing strategies and policies as well as developing solutions and use cases for innovative technologies • The Mostaqbal Portal, designed to promote science, technology and research among UAE youths • The Regulations Lab, designed to proactively anticipate and develop future legislation for disruptive technology FEBRUARY 2020
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Dubai International Finance Centre UAE
Dubai International Finance Centre (DIFC) began its operations in 2004. Its vision is to drive the future of finance by offering the region a comprehensive fintech venture capital environment. When it comes to driving technological innovation in the financial world, DIFC has launched several strategies to drive innovation in fintech, including: • A $100mn fintech fund to establish, grow and upscale startups and growth stage fintech firms in the MESA region • An Innovation Testing Licence (ITL) to provide controlled environments for development and testing of innovative fintech ideas via an independent regulatory body • A flexible and cost effective, interactive and collaborative workspace to foster innovation and creativity mid dl e e a s t . b u s in e s s c hie f. c o m
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Smart Dubai Dubai, UAE
Founded in 2014, the Smart Dubai initiative was established to align with the National Innovation Strategy launched by H.H. Sheikh Mohammed bin Rashid Al Maktoum. Smart Dubai leverages technology such as blockchain, artificial intelligence (AI) and data science to ensure Dubai’s rapid development is met with efficient and fast processes. 94
SOME OF SMART DUBAI’S INITIATIVES INCLUDE: • Achieving a 100% paperless government by 2021, saving one million trees • The Dubai blockchain strategy to achieve a city that is fully powered by blockchain in 2020, driving economic opportunities and innovation • Harnessing AI and machine learning technology to drive the city towards becoming the smartest city in the world
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UAE NIS
Dubai, UAE
Established in 2014, the UAE National Innovation Strategy (NIS) was launched by H.H. Sheikh Mohammed bin Rashid Al Maktoum. The core strategic aim is to make the UAE one of the most innovative nations in the world within seven years. “We want all Emiratis to make a valuable contribution to their nation’s growth by building their knowledge and applying their talent with innovation and drive. Innovation, research, science and technology 96
will form the pillars of a knowledge-based, highly productive and competitive economy.” The NIS aims to provide the best technology infrastructure to enable effective channels of communication and competitive, cost effective services to drive drive innovation. In addition, NIS will help to develop smart cities, software, applications, ICT, AI, semiconductors, nanotechnology and 3D printing.
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HMD GLOBAL
The importance of visibility and AI in logistics FEBRUARY 2020
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WRITTEN BY
GEORGIA WILSON PRODUCED BY
K ANE WELLER
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HMD GLOBAL
Noha Samara, Head of Customer Logistics at HMD Global, discusses the importance of endto-end visibility and artificial intelligence within logistics
N
oha Samara, Head of Customer Logistics, started her career as an electronics engineer before finding her
footing in the supply chain function where she 100
has spent most of her career. Having worked at various companies such as Procter and Gamble and Microsoft, she settled in 2016 at HMD Global as the business began its journey. Samara explains that HMD global is a unique Finnish startup founded in 2016. HMD Global designs and delivers innovative and trusted products to bring back one of the most loved and trusted brands globally, as the sole licensee of the Nokia brand. In its first year of operations, the company became a unicorn startup with offices in 50 countries. “Our vision is to make mobile technology accessible for all, with devices that continue to evolve for the better. This is our brand promise; the promise we’re keeping, today, for all our Android phones. According to Counterpoint’s FEBRUARY 2020
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research, nearly 96% of Nokia
“ End-to-end visibility is critical for our business” — Noha Samara, Head of Customer Logistics, HMD Global
smartphones are already running on Android Pie or have had an Android Pie update issued to them, making it the fastest brand to reach this level. Unlike any other Android phones out there, all of Nokia smartphones will benefit from regular security updates for three years, OS updates for two years and will come with the latest Google designed software and innovations, from AI to security. This promise is what sets us apart from other brands in the market. We
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believe in purposeful innovation and not just innovation for the sake of innovating, and this mindset fuels our determination to provide devices that are accessible to anyone and to be among the top five mobile sellers in the world.” Since its inception, Samara feels evolution has been a constant for the firm. “HMD Global has a very dynamic culture, we are passionate about challenging the status quo.” Since 2016, the company has launched more than 30 new phones, receiving the title of number one feature phones player and ranking FEBRUARY 2020
CLICK TO WATCH : ‘NOKIA 7.2 – GO AND CREATE’
ers in the MENA region. Moreover,
THE IMPORTANCE OF END-TO-END VISIBILITY
the company is very proud to have
When it comes to HMD Global’s
been recently ranked on the top
logistics operations, “end-to-end
world’s 25 fastest growing brands
visibility is critical for our business,”
of the past five years and second
says Samara. “It enables us to make
best performing in Europe. Through
more informed decisions at exactly
its partnerships with Verizon and
the right time, in a dynamic and agile
Cricket Wireless, the company has
industry.” In its efforts to achieve
also expanded into North America.
100% end-to-end visibility, HMD
With these global expansions HMD
Global has been investing in the
Global has adopted a multi ODM
development of internal systems.
strategy to meet demands and
“To provide such service and vis-
improve competitiveness.
ibility, we think it is best to have the
among the top five smartphone play-
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CLICK TO WATCH : ‘WITH NOKIA SMARTPHONES, YOU’RE IN CONTROL’
latest cloud ERP system. We have
intelligence (AI). “New and innovative
developed both a global and regional
technologies are already impacting
dashboard to provide visibility to
the existing supply chain operat-
internal stakeholders, in addition to
ing models. With this digitisation
developing a supply chain system for
of the supply chain, companies are
both distributors and retailers to con-
able to address customers’ evolv-
duct order placement, processing,
ing requirements. In recent
shipment tracking and invoicing.”
months, we have seen a rise in customers expecting
ARTIFICIAL INTELLIGENCE AND AUTOMATION IN LOGISTICS
these technologies to be
Samara emphasises that regional
Currently, the company is
markets are being driven by emerg-
utilising automation and AI
ing technologies such as artificial
within its internal operations,
FEBRUARY 2020
in the palm of their hands.”
as well as in its devices. “We use auto-
framework strategy that leaves room
mation in our dashboards, customer
for flexibility and agility for the specific
reporting, SKU planning, shipment
requirements of each region. “For
planning and supply allocation plan-
example, automation varies across
ning,� Samara elaborates.
customers and distributors. Therefore,
MENA is a dynamic region for
we need to be aware of the levels of
logistics, and Samara emphasises the
flexibility and capability available. To
importance of a standardised global
combat this challenge we need to
E XE CU T I VE PRO FI LE
Noha Samara A seasoned supply chain professional with a well-rounded experience in supply chain transformation, category and initiatives planning, demand planning and customer logistics. Samara has a strong track record of leading and building up operations within both big MNC as well as rising unicorn startups. She spent most of her career at the FMCG giant, Procter and Gamble working on different categories (Baby Care, Beauty Care and Luxury Cosmetics) before moving into the consumer electronics industry with Microsoft, followed by HMD Global. She has led several supply chain transformation projects throughout her diverse career, and possesses great team leadership skills with a high level of discipline, process improvement and standardisation. Samara has an electronics engineering background with an MBA from the American University in Cairo, and has three published cases on operations management and corporate strategy.
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107 jointly develop and build both our capability and the customers’ in order to find solutions that allow us to be compatible together.”
THE CHALLENGES OF INNOVATION When it comes to the challenge of innovation, Samara explains that remaining relevant is a core challenge. In order to combat this, HMD Global “tracks the latest innovations and encourages the teams to attend global mid dl e e a s t . b u s in e s s c hie f. c o m
HMD GLOBAL
2016
Year founded
50
Offices established in first 12 months
1,000 108
Number of employees
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“Our vision is to make mobile technology accessible for all, with devices that continue to evolve for the better” — Noha Samara, Head of Customer Logistics, HMD Global
conferences. HMD Global works to stimulate new ideas that can be implemented within the business.” Samara explains that the company has implemented bi-weekly meetings to discuss current projects for data and innovation changes that need to be implemented. “In these meetings we also encourage our employees to put forward innovative ideas that grow the business. This ensures that the rhythm of change and the rhythm of the business are always dynamic and touching the needs, issues and changes that need to be addressed.” Reflecting on the company, Samara attributes the its success to its passion, entrepreneurial mindset mid dl e e a s t . b u s in e s s c hie f. c o m
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HMD GLOBAL
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and its partnerships with other organisations. “We have a wide reach across multiple regions and continents, hence why we rely heavily on our logistics partners, which we work with closely to ensure on time deliveries for all of our markets. For example, Agility is one of our biggest logistics partners in the MENA region. We have built together a supply network design that meets our business aspirations of growth in our FEBRUARY 2020
“We believe in purposeful innovation and not just innovation for the sake of innovating” — Noha Samara, Head of Customer Logistics, HMD Global
different markets where they are operating our Hub DC in Hong Kong.” Ultimately, we are building partnerships to last. With our partners, such as Agility, DHL, and DB Schenker, we have a clear set of mutual and aligned KPIs, goals and objectives that we share. We consider them as one of our driving forces for success and a window to new markets. Ultimately, the more we grow, the more they will also grow.
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