GPCA catches up with digitisation

BE PREPARED

REPORTS • THE GCC CHEMICAL INDUSTRY SHARES THE SAME CONCERNS AS ITS COUNTERPARTS ELSEWHERE. GPCA IS HELPING BRING LOGISTICS ISSUES TO THE FORE

THE CHEMICAL INDUSTRY in the Arabian Gulf must ensure its readiness to face the growing rate of supply chain digitisation that will lead to continuous disruptions and create new challenges and opportunities for regional producers to adapt to and respond to a new market reality.

That was the overriding message from speakers at the Gulf Petrochemicals and Chemicals Association’s (GPCA) 11th Supply Chain Conference, which took place from 15 to 17 April at the InterContinental Festival City Hotel in Dubai.

The chemical supply chain is transforming rapidly as global challenges add pressure on chemical players to improve their efficiency and end-to-end supply chain. Against this backdrop, a new set of technological advancements, known as ‘Supply Chain 4.0’, is influencing how organisations oversee their logistics, procurement and value generation. The move towards greater digitisation is transforming chemical supply chains, creating new opportunities to make them more agile, resilient, faster and efficient.

GET READY FOR CHANGE In line with the event’s theme - ‘Getting Ready for the Future: Supply Chain 4.0’ - speakers discussed the key enablers for a successful chemical supply chain transformation, ranging from collaboration, implementation of new technology, digital procurement, value-based sales and operations planning, to building local content and more.

The conference began with an opening address by Ahmed Al-Shamsi, senior vice-president, Regional MEAE at Borouge and chairman of the GPCA Supply Chain Committee, and continued with a keynote address by Fayez Al Malki (below), vicepresident of global supply chain for Sabic. Al Malki called on the chemical industry in the Arabian Gulf region and globally to respond to and address the new generation of disruptive technologies, such as Artificial Intelligence (AI), Advanced Analytics, Internet of Things (IoT), Robotics, Process Automation and the Digital Supply Chain Twins, which will continue to disrupt existing supply chain operating models now and into the future, he said.

In line with the regional aspirations to position the Gulf Cooperation Council (GCC) area among the top logistics hubs globally, future GCC government visions and long-term initiatives have been launched with the objective to transform the supply chain landscape in the GCC. In his keynote presentation on day two, Abdulaziz Mohammed Almohawes, Head, Authorized Economic Operator at Saudi Customs, highlighted the importance of the Saudi Authorized Economic Operator Programme, a new trade facilitation initiative offering faster and simpler import and export processing in the Kingdom.

For his part, Eng Ali A Al-Omeir, business development director at MODON, discussed the programmes and initiatives put in place by the Saudi Authority for Industrial Cities and Technology Zones to use smart technology and attract new investments in the country.

BRING IT ON Speaking at the event, Dr Abdulwahab Al-Sadoun, GPCA’s secretary general, commented: “Supply Chain 4.0 is not a mere buzzword, it is a necessity and a reality that is right here, at our doorstep. No industry is better placed than the chemical industry in the Arabian Gulf to respond to the immense opportunity created by this rapidly evolving »

trend. To build more responsive and intelligent supply chains, the industry must leverage the latest technology innovations. It must embrace the new generation of digital procurement which supports better decisionmaking and improved performance.

“A concerted focus on end-to-end visibility will also be needed to manage product and data flows across global supply chains,” Dr Al-Sadoun continued. “The chemical industry must develop new service offerings to create greater value for its customers and source goods and services from within the region to boost local content and support the growth of SMEs. Ultimately, chemical players should enact a cultural shift from being efficiency-focused to becoming more value driven,” he concluded.

In line with its commitment to building local human capital in the Arabian Gulf region, on 15 April GPCA hosted the 11th edition of its Leaders of Tomorrow programme on the sidelines of the Supply Chain Conference. Students from universities across the GCC attended a special seminar comprised of expert presentations by senior industry leaders from City Cement Company, Borouge and Tasnee, as well as an interactive session designed to build real-life knowledge and experience for the young participants and their peers.

At a time when the chemical logistics sector around the world, and not just in the GCC states, is facing up to a more connected future, attracting the right talent will be crucial. GPCA is not alone in trying to help industry address the issue and it will be interesting to see how the initiative progresses.

LET’S HAVE RULES Just before the Supply Chain Conference, the Oman Oil and Orpic Group hosted an important industry roundtable organised by GPCA in Muscat. The meeting was attended by more than 65 delegates from the GCC states, including senior government and industry leaders. The roundtable included representatives from GPCA member companies, as well as environmental authorities, industrial bodies, fire departments, armed forces, customs and others.

The high-level meeting entitled ‘Harmonised Chemical Management in the GCC’ discussed the importance of collaboration between government and private organisations, and highlighted GPCA’s continuous efforts to provide a platform for cooperation and facilitate a meaningful dialogue among legislators, industry stakeholders and government officials to enact a step change in chemicals management regulations in line with global best practices.

Opening the event, Dr Hilal Abdullah Al Hinai, general manager of corporate support services at Oman Oil and Orpic Group, welcomed delegates by saying: “This meeting aims to create a platform for cooperation between regulators in the GCC and petrochemical industries to meet challenges and discover the opportunities in improving awareness and promoting dialogue among regulators on best practices available around the world. ”

The meeting further addressed the need to adopt regional initiatives on chemical classification, packaging and labelling in line with the Globally Harmonised System (GHS) and the benefits of adopting ADR as a common solution for the Arabian Gulf region both from an industry and government perspective.

Finally, industry experts praised the outstanding role that Responsible Care®, the chemical industry’s commitment to continuous improvement in health, safety, security and environmental performance, has played over the last decade to raise the bar in the chemical industry’s EHS&S standards through the implementation and peer-to-peer review of voluntary health and safety initiatives.

Dr Al Sadoun commented: “We are pleased to have had such a positive outcome at this important government-industry roundtable, which gathered together senior government officials, industry leaders and legislators to discuss ways of collaboration between GCC governments and the chemical industry that effectively address chemical management risks and opportunities. By organising this meeting with the support of Oman Oil Company (OOC) and Orpic, we aim to improve the awareness and foster dialogue among regulators on best available practices across the globe, while increasing collaboration to facilitate the development of regulations related to GHS and the transport of dangerous goods by road by working in partnership with the relevant stakeholders.” HCB www.gpca.org.ae

AHMED AL-SHAMSI, CHAIR OF THE GPA SUPPLY CHAIN COMMITTEE (ABOVE), STRESSED THE IMPORTANCE TO

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