Logistics News ME - May 2023

UAE SET FOR LAST-MILE DELIVERY REVOLUTION COURTESY OF AI

IRFAN TANSEL

CEO of Al Masaood Automobiles talks about the ever-evolving last-mile delivery industry

Drive the new way.

New IVECO T-WAY: high productivity and safety on off-road terrains

With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications.

New IVECO S-WAY: high technology and efficiency for on-road missions

The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator, 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio.

IN CONVERSATION: IRFAN TANSEL, CEO OF AL MASAOOD AUTOMOBILES TALKS ABOUT THE EVEREVOLVING LAST-MILE DELIVERY INDUSTRY

16

18 ANALYSIS REPORT BY CONTAINER XCHANGE reveals the benefits of digitalizing container operations

22 FREEZONE AICE 2023

Dr. Samir Hamrouni, CEO of World Free Zone Organization, spoke to Vibha Mehta about their latest event AICE 2023, and more

24

26 MULTI MODAL THE TOP-NOTCH Logistics The Top-Notch Logistics To The Live Events Industry

34 3PL

A PIONEERING STORY

Deepak Khushalani, CEO of Premier Logistics MENA, discusses the logistics landscape, automation, sustainability, and more

38 RETAIL

THE RETAIL CONGLOMERATE: CHALHOUB GROUP

Alexandros Komianos, Chief Fulfilment and Logistics Officer at Chalhoub Group, discusses the key logistics affairs with Vibha Mehta

42 LAST-MILE

ALL-IN-ONE DELIVERY GIANT YANGO DELIVERY

Vibha Mehta speaks to Agam Garg, General Manager at Yango Delivery UAE, on how Yango Delivery is shaping the delivery landscape in the region

44 SUSTAINABLITY

HOW IS BRIDGESTONE ADOPTING SUSTAINABILITY?

From Jacques Fourie taking over as the new VP and Managing Director at Bridgestone MEA to Bridgestone’s sustainability plans

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Positivity

went on, I concluded that it was pointless to delve more and simply let the universe handle things.

However, I do want to be clear that the universe will only work in your favour if you make reasonable efforts in that direction. Have you ever considered the possibility that the energy you are surrounded by affects your decision-making ability? People may find distinguishing between the various powers difficult, but the key is to trust your gut. Go with your intuition and go with the flow. It might not be the correct person, or you are not feeling it. I firmly believe in the power of optimism and the importance of surrounding myself with it. Not only do I feel good in my own flesh, but my sixth sense also keeps me away from pessimistic emotions. While trying to close this issue, a few situations prompted me to reflect and gather my ideas on numerous subject matters. I try to maintain my composure while working in this competitive field, but I don't know whether everyone gets the memo to be smooth. I did meet folks with whom I felt an immediate connection, and I did meet people with whom I would prefer to keep a respectful distance. My gut told me that, and I am confident enough to trust it.

According to Google's definition of positivity, it is "the habit of having a positive or upbeat attitude" Likewise, positivity isn't simply positive thoughts to me; it's a way of existence. I have encountered many inspiring people throughout the years and heard so many positive stories that it has made me a strong affirmer. A positive vibe is my inspiration for success and my driving force for productivity, whether it is in my personal or professional space. When I was younger, the idea of positivism and affirmations was similar to the physics concept. But as time

Vibha Mehta Editor-in-Chief vibha@bncpublishing.net

Vibha Mehta vibhamehta01 @vibhamehta01

KINGDOM OF SAUDI ARABIA LAUNCH FOUR NEW SPECIAL ECONOMIC ZONES (SEZS)

His Excellency the Chairman of the Board of Directors of the Special Economic Cities and Zones Authority, Minister of Investment, Engineer Khalid Al-Falih, extended his gratitude to His Royal Highness Prince Mohammad bin Salman bin Abdulaziz, Crown Prince, The Prime Minister, on the occasion of launching four new Special Economic Zones in Saudi Arabia.

The new zones, strategically situated across the Kingdom, are ‘King Abdullah Economic City’ (KAEC) SEZ, ‘Jazan’ SEZ, ‘Ras Al Khair’ SEZ and ‘Cloud Computing’ SEZ located in King Abdulaziz City for Science and Technology (KACST).

The SEZs reinforce and other Saudi Arabia’s position as a global business hub and will play a significant role in achieving Saudi Arabia’s economic development goals under His Royal Highness

the Crown Prince’s Vision 2030 strategy. HE Eng. Khalid Al-Falih, Chairman of the Economic Cities and Special Zones Authority and Minister of Investment, said: “This is an exciting moment. We are proud to see the launch of these four special economic zones that offer the chance for foreign investors to have a stake in the world’s fastest-growing economy.”

His Excellency the Secretary-General of the Authority, Mr Nabil Khoja, added, “With hugely attractive financial incentives, world-class infrastructure, business-friendly regulations and streamlined procedures for investors, there

has never been a better time to be part Saudi Arabia’s economic success story. The zones will become engines of growth, increasing the Kingdom’s export competitiveness, attracting talent, boosting technology, and improving our global links.”

Special economic zones – or SEZs –are geographically defined areas that facilitate specific economic activities, such as investment, trade and employment, by providing competitive advantages and legislative frameworks that differ from the base economy. This vital program will enable Saudi Arabia to fast-track specific reforms and facilitate the ease of doing business nationwide.

The incentives offered to companies cover fiscal and non-fiscal incentives, including competitive corporate tax rates, duty-free imports of machinery and raw materials, 100% foreign ownership, seamless set-up procedures, and flexibility in employing foreign labour.

The zones launched today cover a wide range of industries:

KING ABDULLAH ECONOMIC CITY (KAEC) SEZ

The premier destination for advanced manufacturing and logistics, from automobile supply chain and assembly to consumer goods, ICT to MedTech. Set in a prime location on the Red Sea, less than 90 minutes from Jeddah Air-

port, this 60km2 site offers unrivalled access to global trade routes through King Abdullah Port, ranked the world’s most efficient by the World Bank in 2022. Anchor investor Lucid, a leader in the global EV industry, will produce 150,000 EVs a year from its base in KAEC SEZ.

JAZAN SEZ

An industrial centre and critical platform for trade with fast-growing markets in Africa and Asia. Jazan SEZ offers access to the largest port in the region for the export of goods and import of materials, helping investors benefit from and contribute to large-scale infrastructure projects in Saudi Arabia and around the world, backed by easy access to both natural and industrial resources. Jazan is part of the Kingdom’s fertile southwestern region, providing opportunities for the manufacturing, processing, and distribution of food products to cater for growing regional demand and meet food security challenges across the region.

RAS AL-KHAIR SEZ

A launchpad on the Arabian Gulf for leaders in the maritime industry, Ras Al-Khair SEZ is a fully integrated marine ecosystem with a rich network of existing investors – 40% of the Zone is already spoken for – and myriad oppor-

tunities across shipbuilding and repair, offshore drilling, and maritime value chains.

Cloud Computing SEZ, located in King Abdulaziz City for Science and Technology (KACST)

In King Abdulaziz City for Science and Technology (KACST), a new Cloud Computing SEZ will be a hub for emerging and disruptive technologies. A direct manifestation of the Kingdom’s ‘Cloud First’ policy, the Cloud Computing SEZ underlines the Kingdom’s commitment to digital innovation and the fast-growing tech sector. The Zone is based on an innovative hybrid model that allows investors to establish physical data centres and cloud computing infrastructure in multiple locations within the Kingdom. It will open new gateways for investors worldwide to capitalize on the rapidly growing global cloud market, expected to be worth 834 billion USD by 2027.

Saudi Arabia’s favourable geographic location, at the heart of major trade routes and supply chains, with access to more than 70% of the world’s population within 8 hours, adds to the zones’ appeal, along with the Kingdom’s young, highly educated population of more than 34 million, comprehensive natural resources and stable, rapidly growing capital markets.

HAMAD INTERNATIONAL AIRPORT TEAMS UP WITH DELL TECHNOLOGIES TO DRIVE INNOVATION

Dell Technologies today announced that Hamad International Airport (DOH) had selected its advanced server and network infrastructure solutions to deliver the best passenger experience and operational excellence as the aviation hub continues with Phase B of its expansion plan.

Hamad International Airport, which currently serves over 170 global destinations and more than 40 airline partners, chose the Dell PowerEdge servers to secure and enhance the airport’s infrastructure capabilities and improve efficiencies and costs while creating the ultimate destination for millions of visitors.

Dell PowerEdge servers are designed to perform exceptionally, laying the foundation for the future with computing and networking modules that can be tailored to the airport’s needs and expanded over time.

In 2022, as Qatar welcomed football fans worldwide, Hamad International Airport witnessed a 101.9% year-on-year

surge in passenger traffic and a 28.2% growth in overall aircraft movement compared to 2021. Building on this momentum, the airport’s Phase B of the expansion project started in January 2023, will include two new concourses, increasing the airport capacity to over 70 million passengers annually.

The implementation of Dell solutions supports the airport’s ambitious plans. It facilitates new avenues to scale and consolidate its data centre to run the most complex, mission-critical workloads while remaining flexible for future growth needs. Made for secure interactions and able to predict potential threats, the PowerEdge servers feature cryptographically verified security design and have an intuitive systems management process to monitor, deploy and implement the automation of routine airport operations tasks.

Travers Nicholas, Country General Manager for Qatar, Dell Technologies, commented, “Hamad International Airport’s contribution to facilitating global trade, raising industry benchmarks, and

introducing the ultimate passenger convenience has been remarkable. As the sector continues to move upward and passengers demand enhanced travel experiences, a robust and flexible digital infrastructure supporting high-density growth will prove crucial. Dell Technologies is committed to helping the airport deliver on its growth vision. As a major player in the global aviation sector, Dell is eager to see it soar to newer heights in the coming future.”

Suhail Kadri, Senior Vice President of Technology, and Innovation at Hamad International Airport, said, “As one of the world’s busiest airports that moves a significant number of passengers and commodities on an hourly basis, access to agile technology remains critical. Working with a technology provider who understands the demands of international air travel and is well-equipped to support passengers, airlines, and air cargo efficiencies is therefore paramount. Working with Dell Technologies via its network of channel partners helps us meet our ambitious growth plans and introduce new digital innovations as we continue to invest in modernizing our airport.

Founded in 2017, Automyze has recently expanded into a new 25,000 sq. ft warehouse in the Umm Ramool district in Dubai. The deal with Synergy is for its technologically advanced, cloud-based warehouse management system (WMS), SnapFulfil.

Automyze specializes in start-ups and SME brands positioned for significant growth and currently shifts an average of 18,000 units monthly. However, their ambitious target to double this over the next six months required a WMS with the flexibility and scalability to adapt and grow with Automyze and its customers’ strategic expansions.

Muhammad Manji, Founder and CEO of Automyze, said, “We are an ambitious 3PL looking to give our clients scalable fulfilment solutions, whether small picks for e-commerce businesses, marketplace fulfilment or larger retail distribution. Consequently, we are excited to implement a Tier 1 WMS that will allow us to scale while maintaining our bespoke services.”

“SnapFulfil is a well-established WMS designed by people who understand warehousing logistics, particularly 3PLs. The software’s agility, configurability, and capacity to grow with us make Synergy a good cultural fit as a trusted technology partner.”

The proven flexibility of SnapFulfil’s solution means Automyze will now have accurate and consistent control of inventory and outbound processes, as well as returns, that will help them deliver a first-class service experience for their clients and customers.

The live data functionality will also help maximize performance and cost savings, plus have a tangible impact on strategic growth.

Tony Dobson, CEO of Synergy Logistics, adds, “We are delighted to be working with Automyze, who share our vision for rapid growth, and we look forward to helping them meet their ambition in the 3PL sector. The UAE is a dynamic market in which we are confident Synergy’s fulfilment tech solutions will prosper.”

AUTOMYZE FULFILLMENT CENTER EYES GROWTH WITH SNAPFULFIL

In the first week of April, Bahrain announced the launch of a Golden License, providing incentives and streamlined services to foreign and local businesses with large-scale investment projects in Bahrain. It is essential in the country’s pursuit to incentivise investments and boost job creation under its fiscal and economic reforms.

The move builds upon the growing investment attractiveness of Bahrain, which has recently recorded its highest Real GDP growth rate in almost a decade.

Companies with significant investment and strategic projects that will create more than 500 jobs in Bahrain, or

those with investment value exceeding USD 50 million, will be eligible for the License.

Companies will enjoy many privileges and benefits with the License, including prioritised land allocation for investments, infrastructure services and utilities. They will also have streamlined access to government services – including business licensing and building permit approval- and support from Bahrain’s Labour Fund, Tamkeen, and Bahrain Development Bank.

Introduced by Bahrain’s Cabinet, which was chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, Bahrain’s Crown Prince and Prime Minister, the License aims to attract invest-

ments from local and international companies to create jobs locally. These are priorities of the Economic Recovery Plan, the blueprint of Bahrain’s fiscal and economic reforms introduced in 2021 that has been the driving force of the country’s recent robust financial performance.

Further advantages under the License include the following:

> Integrated cooperation with various government departments.

> A designated account manager from Bahrain’s Economic Development Board.

> A potential review of existing laws or regulations where necessary and applicable.

THE KINGDOM OF BAHRAIN LAUNCHES GOLDEN LICENSE TO ATTRACT LARGESCALE INVESTMENT PROJECTS

GREEN LOGISTICS

TRANSFORMING THE SUPPLY CHAIN FOR A SUSTAINABLE FUTURE

Varun Visruthan, Regional Director of Addverb, offers his experience and observations on the subject

As the world becomes more focused on sustainability, businesses across all industries are exploring ways to reduce their environmental impact. One of the ways enterprises do this is by adopting green logistics, also known as sustainable logistics. This trend focuses on reducing the environmental impact of transportation and distribution of goods involved in maintaining global commerce. By embracing a range of green logistics strategies, companies can achieve a sustainable supply chain, reduce operational costs, improve their business reputation, and fulfil corporate social responsibility.

One of how companies can adopt green logistics is by using electric or hybrid vehicles for transportation. This reduces the amount of fuel consumed, resulting in lower emissions. Optimizing routes to minimize fuel consumption and emissions is another strategy companies can use. Companies can also reduce their environmental impact by implementing waste reduction and recycling programs. Automation can also be used to improve the

efficiency and accuracy of intralogistics operations, such as by implementing real-time tracking and monitoring systems.

Warehouse operations are an essential aspect of green logistics, and there are several strategies that companies can use to reduce their environmental impact. One such approach is using robotics and automation systems such as the Automated Storage and Retrieval System (ASRS). This system can help companies use the vertical space of their warehouses, reducing the facility’s overall footprint. This reduces the cost of buildings and land, and there is also less area to heat or light up, resulting in energy savings. This is especially important in applications of frozen warehouses, where there are fewer walls and roofs to absorb heat from the outside, resulting in lower refrigeration costs.

With real-time inventory updates from advanced Warehouse Management Software (WMS), warehouse managers can quickly effectuate FIFO (the first-infirst-out) method to reduce inventory wastage with fixed shelf lives. AI-powered software provides analytics to predict demand and accordingly creates inventory. Inventory can also be managed at forward locations such as smaller warehouses or microfulfilment centres (MFCs) to not only improve consumer experience but also reduce on-road transportation of vehicles or reduce vehicles with suboptimal capacity utilization. Smart Fleet Management Systems (FMS) and Truck Management Software can combine inventory management with efficient transportation by

planning inventory routes, task allocation, and scheduling. A fully automated warehouse can be seen as a lights-out (dark) warehouse with almost no human involvement. When space is better utilized, operations are optimized to every bit, and wastage is reduced significantly; there is less space to illuminate, less distance to transport, and less waste to process. In addition, it increases the efficiency, reliability, and accuracy of warehousing operations.

Companies that adopt green logistics strategies may require a higher upfront investment, but the payoff in energy consumption and environmental impact is better in the long run. For example, an automation solution provider with hardware and software capabilities, such as Addverb, can offer a range of strategies to help companies reduce their environmental impact. This includes using efficient motor drives, reusing

energy from braking, and using the latest battery technology with the most extended life cycle.

The future of logistics is green, and companies that embrace sustainable practices are better positioned to succeed in the long run. By reducing their environmental impact and building a reputation for sustainability, companies can attract customers and partners who share their commitment to a sustainable future. In addition, sustainable practices can help companies to reduce their operational costs, improve their business reputation, and fulfil their corporate social responsibility. As traditional oil-producing countries move towards electrical-based production, it is becoming increasingly important for companies to adopt green logistics strategies to remain competitive and ensure a sustainable future.

Sean Xiao, CEO of J&T Express Middle East

Varun Visruthan, Regional Director of Addverb

REPORT BY CONTAINER XCHANGE

reveals

The Container xChange Report claims 93% of logistics professionals spend half their day fixing problems without digital tools

Container xChange, an online container logistics platform, has published its recent research report, ‘The benefits of digitalizing container operations’ today. The information is based on a market survey of more than 1000 logistics professionals and revealed that freight forwarders spend almost half of their working days fixing problems without digital tools.

Addressing Inefficiencies: The State of Digitalization in Container Operations

A staggering 93% of logistics professionals spend nearly half of their working day dedicated to address-

the benefits of digitalizing container operations

ing problems. This indicates a significant inefficiency in the current system, wasting valuable time and resources.

Logistics professionals face a multitude of challenges when procuring a container deal, which can cause delays and lead to lost revenue. Among the most common problems are incorrect or incomplete documentation, miscommunication, and misunderstandings in international contracts. Other challenges include payment delays, container quality or quantity discrepancies, undetected damage, and unexpected events such as weather-related disruptions or port strikes. These issues can cause significant troubles to container operations and ultimately harm businesses.

REPORT BY CONTAINER XCHANGE REVEALS THE BENEFITS OF DIGITALIZING CONTAINER OPERATIONS

Furthermore, 92% of logistics professionals are spending an average of 3-4 hours to source just one new partner when needed. This highlights the challenges freight forwarders face to maintain a diverse and reliable network of partners, leading to increased time and effort required for partnership acquisition.

In addition to spending almost half of their working day fixing problems and 3-4 hours sourcing one new partner when needed, 53% of logistics professionals spend 3-4 hours discussing terms and conditions with new partners within the week.

Furthermore, the report shows that 93% of logistics professionals spend 2-4 hours contacting depots for release and drop-off references. These manual processes are time-consuming and can lead to inefficiencies in the container shipping industry.

The report has also revealed that one-third of logistics professionals spend a significant amount of time on manual transactions, with an average of 10 minutes per transaction, highlighting the need for digital adoption for even the simplest operations in the container operations industry.

Commenting on the state of digitalization of the maritime, supply chain, and logistics industry, Nikolaus Sievers, Director of Logistics Optimisation Solutions at Solvo. ai, said, “Supply chains consist of tangible and intangible flows: on the one hand, you have physical cargo flows and humans handling documents, and on the other, you have digital flows of data. The business of international freight forwarding is all about the intersection of people, processes and technology.”

Digitalization Becoming Essential for Logistics Industry, Risk of Falling Behind for Non-Adopters

The move to digital is evident, and those who don’t make the switch are at risk of falling behind. With the increasing demand for speed, accuracy and transparency in the industry, digital tools are becoming essential.

The report also shows that those who have digitalized or automated similar processes investigated in the report already have a significant advantage. By automating just these three processes i.e., Online marketplace for equipment and partner sourcing, Container tracking, release references of live ETAs, and Online chat for negotiating terms and conditions, one could save 8+ hours per week or 4 full working days per month. For example, most players spend only 5-10 minutes sourcing a partner using an online marketplace, effectively saving 170 minutes to their un-digital counterparts per partner.

“Digitalization is the inevitable evolution for every industry, and the container logistics industry is no different,” said Christian Roeloffs, CEO of Container xChange. “In today’s difficult times, companies are struggling with innumerable macroeconomic and geopolitical disruptions. With these manual processes, doing business can become even more difficult. Our research shows that the move to digital tools can save time, increase efficiency and improve profitability. Logistics professionals must embrace the digital transformation to stay ahead in a competitive market.”

“As the report has shown, time saved from digitalizing operations at work is proving to be an asset for freight forwarders. It allows them to focus on higher-level tasks that can drive growth and success for the company, like setting long-term goals and identifying new markets for expansion. Additionally, this free time can foster a more collaborative and innovative culture within the organization, leading to new products, services, and business models.”, he added.

Container xChange is leading the way in digitalizing container operations, providing a platform that connects shippers, freight forwarders and leasing companies worldwide.

Container xChange’s platform allows logistics professionals to source new, trusted partners, digitize container logistics processes, and streamline their operations.

POOR ECONOMIC CLIMATE KNOCKS WAREHOUSE CONSTRUCTION

Rueben Scriven, Research Manager at Interact Analysis, shares his insights on how the warehouse construction sector has been hit hard because of the current poor economic conditions

As with many other sectors, the recent economic downturn has hit the warehouse construction sector hard. Updated research by Interact Analysis suggests that fulfilment centre construction has suffered, partly driven by Amazon’s decreased micro-fulfilment spending.

In response to the rising trend towards online shopping and e-commerce during the pandemic, we saw an increase in the construction of fulfilment centres to cope with this demand. Amazon accounted for a large proportion of this activity, doubling its fulfilment capacity between 2020 and 2021. But, as the trend towards e-commerce begins to slow down, the construction and build-

ing of new fulfilment centres have also dipped. In 2022, 4,000 fulfilment centres were added to the global building stock, but in 2023 this is forecast to decline to 2,000. Consequently, demand for end-to-end automation solutions will also decrease, and the boom we saw during the COVID-19 pandemic will end. Many companies will likely focus on automating their assets rather than investing in new, more significant projects.

Warehouse construction has also suffered from poor economic conditions across much of the globe, particularly rising interest rates. The US is expected to see a “meaningful” downturn within the next 12 to 18 months. Consequently, Interact Analysis forecasts a decline in the rate of warehouse construction in the coming years. Despite this, the growth in e-commerce since the pandemic is likely to dampen the shock to the warehouse construction sector.

Rueben Scriven, Research Manager at Interact Analysis

This is a lagging indicator, so a significant decrease is expected in 2H 2023 and 1H 2024. Overall, 6,700 warehouses will be added to the global building stock in 2023, a reduction of 35%

compared with 2022 but still higher than pre-COVID levels.

Overall, almost 10,000 warehouses were added to the building stock in 2022. In 2023 this will drop to 6,700.

Overall, China and the US are leading the way regarding warehouse construction. In 2022, the two countries combined accounted for 58% of the total square footage added. The US’s entire warehousing stock increased by 6% over the year and China’s by 5%. The updated research shows that Japan and France registered the lowest growth in additional warehouse square footage in 2022. Rueben Scriven, Research Manager at Interact Analysis, says, “It is essential to realize the downturn in warehouse construction is not due to a lack of demand. Instead, it is due to high-interest rates and poor economic conditions. The slowdown in warehouse construction is likely to be short-lived as the market for sites is still there. Rent prices are anticipated to increase in the mid-term, and e-commerce will continue to drive

demand over the long term. Regarding automation, although we expect to see a decrease in demand for end-to-end automation, by the end of 2022, 18% of all warehouses had some form of automation installed, and this is set to increase to 26% by the end of 2027. Food & beverage warehouses and parcel sectors report the highest levels of automation in their warehouses.”

MANAGING THE LOGISTICS COMPLEXITIES OF SHORT SHELF-LIFE GOODS

“It is essential to realize the downturn in warehouse construction is not due to a lack of demand. Instead, it is due to high-interest rates and poor economic conditions.”

AICE 2023

On behalf of the World Free Zones Organization, His Excellency Dr Mohammed Al Zarooni, Chairman of the World Free Zone Organization, invited us to a Media Round Table on the sidelines of AICE 2023 – which took place from May 1 to May 3, 2023, in Dubai. Here is everything you want to know about Vibha Mehta, Editor-in-Chief of Logistics News ME interaction with Dr Samir.

Can you talk about World Free Zone Organization? And, what is the significance of hosting AICE 2023?

This event is vital for our sector. We are an organisation that represents all free zones worldwide. As a member-based organisation, we play three significant roles. Improving daily life for our members is the first responsibility. The second responsibility is that our members cannot function alone; they are part of an ecosystem, and we must assist them in assimilating

into the ecology of this narrative—lastly, the ability to foresee the demands of our members.

Therefore, these three components are combined in all of our events. In addition, one should consider “Why this event is important today.” When the number of free zones increased rapidly thirty to forty years ago, we gave them a specific edge to draw investors by basing their allure on incentives. And we discovered that additional incentives were required.

We concluded that three factors—best practices, innovation, and sustainability—are more important than incentives to address this dilemma. We support many of our people in overcoming the pandemic. What should we do next, we ask ourselves? What are best practices, innovation, and sustainability beyond these novel elements?

The solution is an ecosystem of trust, and we must create one to enable our stakeholders to cooperate more effectively. We hold the top spot in global trade 2.0 because we wish to combine

Dr. Samir Hamrouni, CEO of World Free Zone Organization, spoke to Vibha Mehta about their latest event AICE 2023, and more

current and upcoming daily tasks. A third of international trade passes through free zones. And a lot is happening in the business world, including the cost of transportation, war, and the disruption of the global value chain. So, let’s look at how this daily work affects and guides us towards the Free Zone’s new allure, a trustbased ecosystem component.

What does it mean for the local and regional free zone community and the UAE?

We operate on a global scale. Thus, everything we do serves to meet this world’s needs. Naturally, whatever we do will also be applied to and affect the free zones in Dubai.

Suppose we predict that this tendency will continue and that the global value chain is being upended. In that case, we might also anticipate that future manufacturing will occur locally rather than far away, affecting the local free zones.

Are there any challenges that you are currently facing for WFZO?

Yes, our challenge as a global organisation is to serve everyone – cater to all. Our members are from various sister nations, like Nepal, Togo, and Argentina. However, we want to learn from those that are facilitating outstanding work. Therefore,

the countries suffering must implement these new components, this effectiveness, and this better contribution to the local economy. We have consistently rejected the idea of being a club of the greatest, stating instead that we are a global organisation for all free zones for developing and underdeveloped nations.

How are the free zones incorporating digital transformation?

The pandemic has sped up the digital change, which has been ongoing for years. Free zones have also consistently promoted digital transformation, making them the ideal places to work in any nation and where the rest of the country looks to learn from what is happening there. As a result, due to the procedure’ improved digitalisation, for example, Malaysia requires 15 days to establish a firm. Still, Kuala Lumpur Freezone requires just three to five – thanks to Digital Transformation. Therefore, free zones are added to the everyday reality where the pandemic has expedited the digital process. To sum it up, Free zones have always been ahead of the other part of the country.

Are there any expansion plans?

Yes, we did say there are members from 140 of the 165 nations. Therefore, that geographic expansion continues. We achieved our objectives a few years ago, but what do we do now? Since we will conduct a strategic workshop on the organisation’s future in the following five years, the AICE 2023 event will be exceptional, not just for the topic that will determine the organisation’s future. I will take advantage of the chance to sit down with all of our stakeholders, including members and non-members, ministers, and a multilateral organisation. I will ask them what else we can do.

Dr. Samir Hamrouni, CEO of World Free Zone Organization

“We have consistently rejected the idea of being a club of the greatest, stating instead that we are a global organisation for all free zones for developing and underdeveloped nations.”

TAPPING INTO AUTOMATION AND SOFTWARE

IN THE SUPPLY CHAIN INDUSTRY

Alain Kaddoum speaks to Logistics News ME on the advantages of combining automation and software into the supply chain industry

The supply chain and logistics industries are already impacted by automation, which is only expected to increase in the coming years. However, warehousing and inventory management are two areas where automation is expected to impact significantly. Automated storage and retrieval systems, robots, and drones are already assisting in warehouse

and distribution centre inventory management, error reduction, and efficiency improvement. Another industry which automation is likely to influence is transportation.

Drones and self-driving cars are being developed and tested, which could revolutionise logistics industry transportation. “Using these technologies, last-mile deliveries could be made more affordable and quicker. Another

key area where automation could be beneficial is supply chain visibility,” says Alain Kaddoum, Managing Director at Savoye Middle East.

Additionally, the real-time tracking and monitoring of goods and shipments throughout the supply chain can be made possible with the help of sensors, Internet of Things (IoT) devices, and blockchain technology. “As a result, businesses would be able to recognise and resolve issues quickly and efficiently, increasing customer satisfaction and cutting costs,” says Alain. Although adopting these technologies will demand careful planning, investment, and collaboration between stakeholders, including logistics providers, manufacturers, and retailers, automation is expected to drive significant changes in the supply chain and logistics industry overall.

“At Savoye Middle East, we have incorporated automation into our operations by leveraging our cutting-edge software and automation technologies. Warehouse management systems, automated storage and retrieval systems, and transportation management systems are just a few of the automation solutions provided by the company.”

These solutions have been developed to aid companies in streamlining their supply chain operations, boosting productivity, and cutting costs. Our advanced software services, such as order management systems, warehouse management systems (WMS), transport management systems, warehouse control systems, B2B integration platforms, and ODATIO, a combination of warehouse management systems and transport management systems, provide extensive support for customers seeking streamlined operations.

Alain adds, “Savoye’s other technological services include goods-to-person and goods-to-robot preparation, mobile robot solution, plug and play conveyor, packing machines, automated pallet storage, picking tools, and robotic lockers.”

Additionally, combining automation and software in the supply chain can provide several benefits, one of the primary advantages being increased efficiency. Automation can perform

repetitive tasks quickly and accurately, reducing the time required to complete several operations. This speeds up supply chain operations and boosts overall productivity. Furthermore, the software can optimise processes and provide real-time data, allowing supply chain managers to make informed choices and quickly tackle challenges.

“This can result in faster response times and improved supply chain agility. Accuracy is also increased when software and automation are combined. The possibility of human error, which can be expensive in terms of both time and money, can be effectively eliminated by this,” comments Alain.

Additionally, software and automation can be integrated to enhance inventory management. Supply chain managers can benefit from better visibility into inventory levels and trends by automating inventory tracking and using software to analyse data, lowering the possibility of overstocking or stock shortages.

“For instance, we launched ODATiO, a product that combines WMS and TMS, when the idea was still relatively new. ODATiO is an end-to-end visibility platform that ensures the entire supply chain process, from manufacturing to delivery, is managed effectively over wholesale distribution, logistics, and retailing costs and risks. Today, this technology is growing in the industry, resulting in improved operational efficiency,” shares Alain.

Correspondingly, at Savoye, automation is critical to supporting sustainability. The company significantly lowers waste, energy consumption, and greenhouse gas emissions through supply chain automation. For instance, Savoye’s warehouse automation solutions use advanced algorithms and sensors to maximise warehouse space utilisation and lower energy costs. This increases their operational effectiveness while also lowering their carbon footprint.

The Managing Director shares, “Savoye’s automation solutions allow businesses to optimise their shipping routes, cutting down on fuel use and emissions. This is achieved using real-time data on traffic patterns, weather, and other variables to

pinpoint the most effective delivery routes. Digitising supply chain operations through Savoye’s software and automation solutions reduces paper usage. As a result, there will be reduced waste from the need for physical documents.”

As a fact of the matter, the logistics and supply chain companies in the Middle East actively use Artificial Intelligence (AI) to enhance their operations, reduce costs, and enhance efficiency. These companies are taking several steps, including investing in AI-powered solutions like predictive analytics, robotics, and machine learning to optimise their processes and improve efficiency. They are working in partnership with tech firms to create tailored AI solutions that address their unique requirements, using these firms’ technological expertise. As a result, logistics and supply chain companies are providing their employees with the necessary training to become proficient in data analytics, programming, and AI implementation.

“Companies are adopting cloudbased solutions to store and access data, essential to implementing AI. They also try to safeguard sensitive data from cyber threats by implementing data encryption, firewalls, and other cybersecurity measures,” dishes Alain.

However, the impact of automation and software on the human component of operations will vary depending on several factors. Automation and software can aid in the streamlining of processes, reduction of errors, and increase in efficiency, all of which lead to greater overall productivity - this can lead to a reduction in the need for human intervention in specific tasks, which could lead to job loss or a shift in job responsibilities.

“Despite this, we believe that the human element in operations will continue to be essential. The automated systems will need to be monitored and managed by humans, who will also need to interpret the data and make decisions based on it. Moreover, critical thinking, problem-

solving, and creativity are still necessary for several aspects of operations involving human interaction. Combining automation and software can also create new job opportunities, such as roles requiring specialised knowledge in managing automated systems or software development.”

Lastly, Savoye Middle East collaborated with the New East General Trading L.L.C., a prominent regional distributor of automotive parts – to provide automated solutions to the company’s Dubai Distribution Centre. This cutting-edge solution is built on Savoye’s Pick-To-Light technology, Haipick Autonomous Case-handling Robots (ACR), and Intelis conveyors.

“This marks an important milestone for both businesses as we work together to spur innovation, increase efficiency in the spare parts supply chain, and raise the standards for automated solutions in the Middle East. By integrating our highly advanced Autonomous Case-handling Robots (ACR) solution – the first to be used in the Middle East – we sought to simplify and automate the complex internal systems of the New East’s distribution centre,” concludes Alain.

Alain Kaddoum. Managing Director at SAVOYE Middle East.

THE TOP-NOTCH LOGISTICS SOLUTIONS PROVIDER

TO THE LIVE EVENTS INDUSTRY

Apioneer among its contemporaries in offering logistical services to the Middle East’s live events industry, EFM Global Logistics was established in 2000 and has 15 years of expertise in the Middle East.

EFM provides supply chain management, customs brokerage, warehousing and distribution, and project cargo logistics, with a focus on the thriving live events industry. Companies that provide logistics services must operate in strict accordance with the schedule because the industry is all about rigorous unshakeable deadlines.

From successfully executing numerous activations at the FIFA World Cup in Qatar last year and Expo 2020 to providing for US rapper Kendrick Lamar’s appearance at the Abu Dhabi F1 concert, EFM Global Logistics offers unparalleled expertise to its clients.

Employees and suppliers at EFM Global Logistics frequently face limits. Therefore, they live by the maxim ‘Measure Twice, Cut Once.’ This encourages them to guarantee that they will hit deadlines by virtue of their planning and project execution. According to Marcel Meyer, Commercial Director at EFM Global Logistics, “When we have to deliver cargos to remote locations, we have to send surveys to evaluate the load, enhanced impact of the weather, shipment’s route, and timing, which may lead to uncertain situations.”

The relocation of the James Webb telescope for NASA was one of the most remarkable achievements. “It took several years to plan the entire move from the US, and now it is in space and taking pictures,” adds Marcel.

There is always the possibility of unforeseen circumstances when working on such massive projects, necessitating immediate action. “It can be necessary to make last-minute changes to a stage set-up or convert a maritime shipment

to an aviation shipment. It’s also crucial to remember that most of our clients and users of our services have no prior experience with logistics,” according to Marcel. “They need to comprehend the logistics to plan and organise the event. They thus give us everything,” Marcel continues. “We also look after their logistics and the overall extended partners of the project.”

THE TOP-NOTCH LOGISTICS SOLUTIONS PROVIDER TO THE LIVE EVENTS INDUSTRY

Vibha Mehta and Marcel Meyer discuss how EFM Global Logistics is altering the landscape for logistics services in the region

“IT CAN BE NECESSARY TO MAKE LAST-MINUTE CHANGES TO A STAGE SET-UP OR CONVERT A MARITIME SHIPMENT TO AN AVIATION SHIPMENT. IT’S ALSO CRUCIAL TO REMEMBER THAT MOST OF OUR CLIENTS AND USERS OF OUR SERVICES HAVE NO PRIOR EXPERIENCE WITH LOGISTICS.”

Being one of the market leaders in this niche, EFM’s clientele comes from almost every industry and walk of life. They don’t have conventional divisions like import, export, air, or sea freight. “In our organisation, project managers and coordinators oversee numerous initiatives. They will establish a relationship with the client and carry out their requests,” declares Marcel. Ensuring deadlines are met, and all last-minute requests and adjustments are addressed as soon as possible. When communicating with clients, EFM Global Logistics is open and honest, informing them whether a timeframe or a particular mode of transportation makes sense and making any necessary recommendations. “We never

let our customers down, which is why they trust us. Because we can tell from the start if something is possible, we consistently succeed and will always be able to advise our clients,” states Marcel. EFM separates out from other freight forwarders because each project has an on-site manager who oversees everything, from supervising loading and unloading to lashing and beyond. EFM maintains quality certifications for ISO 9001, ISO 14001, and ISO 20121. The highest levels of health and safety are also prioritised by EFM Global Logistics, who always wears a standard safety vest, safety boots, a helmet, and gloves. According to Marcel, “We worked hard to help decorate the city for the FIFA World

Cup in Qatar last year. The FIFA Fan Fest was one of our greatest projects, which we also coordinated.” EFM had a team on-site for the World Cup and had already begun planning for specific festivals, activations, and the country’s city decorations. “We were working directly with the Qatar entities - consulting them and conversing with them about what to do for various logistics operations.”

Additionally, EFM Global Logistics managed the on-site logistics for the Kingdom of Saudi Arabia pavilion at Expo 2020, curated massive concerts for Rammstein, seven 747s full of kit, and recently completed tours for the Slipknot and Deep Purple.

In the Middle for 15 productive years, EFM Global Logistics continues to expand in the region, opening a significant new warehouse and additional offices in Riyadh, with other locations in Saudi Arabia to follow. “

“The customer always comes first,” concluded Marcel. “We go to the ends of the earth for them. We have carved a niche. It’s the EFM way.”

UAE SET FOR LAST-MILE DELIVERY REVOLUTION

COURTESY OF AI

In Conversation: Irfan Tansel, CEO of Al Masaood Automobiles talks about the ever-evolving last-mile delivery industry

Last-mile delivery—the last leg of a shipment’s journey to its final destination— has become an increasingly important part of business operations across many industries, globally and in the UAE. In this digital era, delivery solutions form a crucial part of everyday life, with significant e-commerce players now heavily relying on these solutions for growth.

In light of an impressive year-on-year growth forecast, the B2C e-commerce market in the UAE is set to more than double in value by 2027. According to

the recent UAE B2C E-commerce Market report by Research and Markets, the UAE’s B2C e-commerce market is experiencing a massive surge in Gross Merchandise Value—from $26.8 billion in 2022 to $46.8 billion by 2027. This upward trend could prove a lucrative opportunity for businesses looking to capitalize on the e-commerce boom.

With consumer trends shifting towards online transactions, UAE businesses are also turning to smart logistics solutions for their B2B deliveries. This emphasis on retail efficiency, whether B2B or B2C, drives overall economic growth.

UAE SET FOR LAST-MILE DELIVERY REVOLUTION, COURTESY OF AI

Irfan Tansel, CEO of Al Masaood Automobiles

UAE Ready For A New Age In Last-Mile Delivery

To catapult the UAE’s e-commerce sector, Freezone DMCC and Dubai Government have recently launched the DMCC E-Commerce Ecosystem. This pioneering move is set to bolster the Middle East & North Africa’s e-commerce market, which is currently valued at $32 billion and

anticipated to break into new heights, reaching an estimated worth of $50 billion by 2025.

As the UAE accelerates towards a future of advanced technologies, what lies in waiting for smart logistics in the last-mile delivery space? Let’s look at some emerging trends and consider their potential implications.

Automation And Robotics

Robots are being used to manage large volumes of orders quickly and accurately, leveraging advanced algorithms to streamline the fulfilment process and reduce human error. Robotic systems can handle tasks such as packaging and sorting goods that are too complex or tedious for humans, resulting in increased throughput while reducing labour costs and waste. Robots can also move quickly through warehouses or delivery areas, leading to a faster response time. Moreover, automation and robotics provide enhanced scalability, enabling companies to scale up their operations rapidly without investing in additional personnel or infrastructure.

Autonomous Vehicles

Another trend in last-mile delivery is using autonomous vehicles, such as drones and self-driving cars, to deliver packages more quickly and efficiently. Autonomous vehicles can be programmed to prioritize specific orders in order to meet customer

demands and ensure timely deliveries, especially temperature-controlled packages. These vehicles can safely navigate complex environments, reducing human error and arguably increasing safety for drivers and pedestrians. Autonomous vehicles also help improve operational efficiency as they can be easily monitored and rerouted in real time to minimize delays or disruption of service.

AI And Data Analytics

More companies are set to use AI and data analytics to track shipments, optimize delivery routes and improve overall customer service. We can gain better insights into customer preferences by utilizing AI algorithms such as deep learning, natural language processing, and sentiment analysis. This allows us to make more informed decisions about which products to stock, how to handle orders more efficiently, and how best to allocate resources for maximum efficiency. Data also allows for predictive analytics that can anticipate customer demand and ensure rapid response times in case of unexpected changes in demand or other disruptions.

Web3 Applications

Web3 applications have the potential to offer improved security, increased transparency, and faster processing of transactions. Through Web3, delivery companies can gain access to immutable data for more accurate tracking of orders and deliveries, as well as smart contracts for automated payment processing. On the other hand, customers can benefit from enhanced privacy through data encryption and permission access, allowing them to grant or deny access to their data as they deem fit. Web3 applications could also enable automated machine learning algorithms that provide real-time insights into customer experience and product performance.

Utilizing such innovative technologies, Al Masaood Automobiles continues to handle large-fleet aftersales services of government and semi-government entities. The deployment of these technologies allows us to fulfil large orders in a timely and uninterrupted manner.

“I ENTERED THE LOGISTICS INDUSTRY WITH MY FIRST GM AND A LABOURER BY RENTING MY FATHER’S WAREHOUSE IN JEBEL ALI, AND THAT’S HOW WE STARTED OUR JOURNEY.”

A PIONEERING STORY

DEEPAK KHUSHALANI, CEO OF PREMIER LOGISTICS MENA, DISCUSSES THE LOGISTICS LANDSCAPE, AUTOMATION, SUSTAINABILITY, AND MORE

Dubai-based Premier Logistics MENA was founded in 2016 with a core focus on freight forwarding, warehousing and distribution, customs clearance, and transport management – providing end-to-end logistics solutions to businesses in a range of industries, including healthcare, FMCG, retail, and e-commerce. “When we first started this company, we were a bit lost,” says Deepak Khushalani, CEO of Premier Logistics MENA. However, in due course of time and his distribution experience in Africa, Deepak quickly took the grip in his hands. “I entered the logistics industry with my first GM and a labourer by renting my father’s warehouse in Jebel Ali, and that’s how we started our journey.” While Deepak had set off on this journey filled with ups and downs and hustling his way up, he locked his first warehouse on a threeyear contract.

“The warehouse had roughly 12,000 pallet positions, and we had not even filled out a single pallet position for the first three months – I was panicking with that. Eventually, our first contract fell through,” adds Deepak. However, post-COVID-19, Premier Logistics MENA was in a tight spot as they

were only in warehousing. Correspondingly, they tapped into the storage, distribution, and packaging of goods. “And, last year, we fully acquired a freight forwarding company, making our presence in all verticals, including last-mile delivery,” mentions Deepak.

Usually, it is seen that companies would venture into freight forwarding as a core business proposition and then step into warehousing, but Premier Logistics has the opposite story. “When I think in hindsight and look at it, we were into warehousing

first, which is asset-heavy, and then bought a less asset-heavy freight forwarding company – that’s what proved our mettle,” says Deepak. With expansion plans in the region, including Saudi Arabia and Egypt to India, the revenue for the company has tripled since its inception – proving the industry has a lot more potential in the industry for Deepak. However, also focusing equal efforts towards digital transformation.

Having said that, digital transformation is a crucial challenge for everyone. Things are changing quickly,

and keeping a tab on daily changes takes work. “Each company focuses on its digital transformation, but logistics is an age-old industry. It still runs traditionally yet has an unlimited capacity to be digitalized. And the time is now,” adds Deepak. From blockchain and machine learning to Chat GPT, all are shifting the horizons for the far larger industrial landscape.

“We are going to make sure that we take that challenge up. And I think in the next one and a half years, we will be very tech-driven,” shares Deepak.

Additionally, Deepak emphasized that one of the significant challenges that companies are currently facing is collaboration. While the industry is enormous, and as a 3PL company – a partnership with other companies is one of the biggest problems. Deepak states, “If only there were the collaboration in the industry, which is good collaboration, I think it would be somewhere else. And that kind of challenge. Some companies are opening to it slowly. Just

a simple collaboration among various tasks can do a lot more wonders. Businesses are launching their warehouses and other services, creating a fix for many 3PL companies.”

Furthermore, for a business or a customer, the end-to-end visibility of their good is the most important. “As Deepak, if you ask me what smooth supply chain management means, I will say it has to be effortless. Everything should be visible on a dashboard –Simple and Seamless.” A 3PL

company truly jumps into this situation and makes life easier for consumers and clients. Underlining this, Deepak shares his motto: “We handle everything, from a plane to a hairpin.” Offering no gaps, the best solution to overcome this would be a tech-driven model. Where everything is laid down for its client, and with a click, you can access all the information. “This will be a true and smooth supply chain for me – transparent and seamless,” quotes Deepak.

Premier Logistics MENA have robust plans to expand into China, India, and Saudi Arabia. Expansion is vital for any business; if it unfolds well, it can do wonders. “I think expansion is significant, but the logistic landscape is shifting fast, leaving us 3PL companies out with the bigger companies owing the larger logistics boxes. However, with E-commerce booming with digital transformation, there come last-mile deliveries.”

When mentioning the lastmile delivery landscape, one knows that this ever-evolving industry is set to shift the entire logistics and supply chain industry. Customers want their

orders in an hour or a day; businesses are making those changes and trying to keep up with them. “I think speed and accuracy are essential, and that’s where most companies are moving,” explains Deepak.

The logistics and supply chain industry are complicated – from execution to management. One needs to have faith and trust in the ecosystem. Deepak explains this a bit further: “We are just movers and safe keepers for their goods. And those goods are worth millions and billions of dollars. And we only charge the revenue to store or keep them, so we are ideally safe keepers, so they should have that trust.”

Incorporating sustainability initiatives in its operations, Premier Logistics MENA plans to go paperless in the next six months. “I know it is difficult for a logistics company since the entire industry works conventionally, but we are trying our level best to get into the whole paperless in any way we can contribute, you know, a small contribution to the carbon footprint is also a contribution,” mentions Deepak.

Furthermore, Deepak describes the future as Connected. Digitalized. Dependable.

“Information and dependability. I think that’s something very, very important. The client depends on the company; the company depends on its team. And the team is so dependable for me; it’s something where you can depend on the company if you see the company being auto rated, and if you see the connections all over the world, I think that’s where the fast-moving logistics industry is going towards,” concludes Deepak.

CHALHOUB GROUP THE RETAIL CONGLOMERATE

Alexandros Komianos, Chief Fulfilment and Logistics Officer at Chalhoub Group, discusses the key logistics affairs with Vibha Mehta

With over 22 years of experience, Alexandros has been working with Chalhoub Group for roughly 15 months overseeing the innovation and operations of all the fulfilment and logistics functions at Chalhoub.

Importance Of Logistics And Supply Chain Operations

Existential. “From our vantage point, we bring the commercial vision to life. We bring all the physical products to the market – either via a store or through e-commerce operations for our customers,” begins Alexandros. In order to be really unique in the market, he simply laid out the fundamentals of logistics and supply chain management as a bridge between the Chalhoub Group, products, and their end consumers. Additionally, aspects like geography, business operations, and cost are crucial in forging a solid logistics stance.

Despite the high operational complexity brought on by the various markets, Alexandros continues, “Controlling costs is very important for our group.” He also made notice of the

importance of capital and cash flow. “If we don’t follow the right demand forecast and prepare for demand peaks and troughs, we will end up with a lot of inventory, which capital we can use for investments,” says Alexandros.

Chalhoub Group’s supply chain management and logistics are supported by five fundamental pillars. “’People,’ the way we treat them, and the environment that we create for them to learn and work in is the first thing,” Alexandros continues. Additionally, ‘processes’ are crucial to Chalhoub’s multi-industry business model for serving their many fashion, beauty, and cosmetic brands - helping them distribute their various products.

“How we can standardise the processes across the group is very critical. We also believe that ‘data and technology’ in today’s world is very impactful. With the right data in place, we can convert data into decisions by looking at them analytically and enhancing and supporting informed decisions,” shares Alexandros. He also discusses oh how ‘visibility’ and ‘resilience’ took the front seat post-COVID-19. He says, “Until the data allows visibility across end-to-end departments, you

still have a silo. And building resilience is important about making sure we can adjust, especially with Covid-19, while still minimising risks.”

Challenges

First and foremost, Saudi Vision 2030 has changed the face of the Middle East’s logistics and supply chain business as the Kingdom of Saudi Arabia continues to develop. Having stated that the logistics operations are altering not only within the nation but also across the area. Alexandros reveals to us the uproar that the new free zones have caused in the logistics industry. “Since I will have access to more open zones in the area, managing the flow of the items is the most prominent problem for us right now. This, however, will be in addition to the Kingdom’s growing expansion from a consumer standpoint. He went on to say that from an inbound standpoint, everything from suppliers to goods forwarders to the accessibility of transporta-

tion will experience a 100% boost. “The Saudi market, for me personally, is very vital and will be shifting the landscape for us,” he continues.

In addition, there are issues that are more directly tied to operations and how businesses interact with their customers. According to Alexandros, “Customers are unique, so the markets become unique.” He explained how each market is unique and how firms require a multi-local strategy model to be able to provide their customers with a customised approach. “It’s difficult because all we need to do to stay relevant in the market is employ the right resources at the right time and monitor results sparingly. We don’t just roll out a solution tailored to the consumers in Dubai or Qa-

tar because it might not work and probably won’t work,” he shares.

Automation

Automation is the key to the future. Automation is a buzzword. While everyone applies automation simply because the industry is getting ready for the future, it is essential for each person to truly shape their business needs and objectives. However, it is essential to remember that the GCC nations have a lot of cost-effective yet practical labour available. Also, the operations are designed to emphasise manual labour and processing. “The important question is, how do you alter automation to these practices,” questions Alexandros. He continues by saying that either one can start a facility with a greenfield scenario in the right manner

by collaborating with the human element. Or by finding the appropriate automation solutions that meet a product profile, retrofit automation into a brownfield.

“In my opinion, automation can improve decisionmaking with simple or complex computations - an automated system can enable warehouse position replacement than using Excel, making the individual’s role much more of a supervisor,” adds Alexandros. Second, he recommended that the manual handling can be decreased. “We have already begun integrating robotic process automation, he says. Because there are repetitive tasks in our systems, we can use this type of automation to free up our staff from having to complete them every week or every month. Since the repetitive tasks are already present in the system, you can simply allow them to be automated while improving the process. Additionally, we have automated route planning for our last-mile activities, giving us more flexibility.”

Human Element

According to Alexandros, “The human element will still be solid.” He thinks that humans will always be in charge of automation and will help to make it successful by changing them from executors to more decision-makers. “Skills are evolving. I think there will still be a strong emphasis on the human element. We are completely dependent on others and must remain so. However, because they will deal with the exceptions rather than, you know, the common or simple processes, their role will become more important.”

In Foresight Alexandros believes that in the future, human capital will be a vital factor in developing this industry. He said, “It will be crucial to create settings that prioritise people to retain existing employees and draw in new ones. The function of people will, however, become increasingly important as a result of the digital transition, as we can see in ahead. We need to build and improve the environment.” Moreover, highlighting how it’s important to remember the industry’s front-line workers, such as the drivers and pickers who perform the most challenging jobs.

“I believe that with commercial innovation, the focus will shift to be more customer centric. The area will increasingly focus on whether we provide the proper services, do we provide the right experiences, and are our logistics set up to provide them rather than on how much each unit costs, will happen quite soon,” he states.

Correspondingly, there is a digital transition. “The digital transformation will quicken, and we’ll switch from data analytics to real data insights for real-time decision-making,” Alexandros says. One will concentrate on more environmentally friendly solutions as 2023 is designated as the ‘Year of Sustainability’, and the regional nations emphasise the significance of sustainability. “I think all of this will have a wider and more significant influence on the industry,” he concludes.

“I BELIEVE THAT WITH COMMERCIAL INNOVATION, THE FOCUS WILL SHIFT TO BE MORE CUSTOMER CENTRIC. THE AREA WILL INCREASINGLY FOCUS ON WHETHER WE PROVIDE THE PROPER SERVICES, DO WE PROVIDE THE RIGHT EXPERIENCES, AND ARE OUR LOGISTICS SET UP TO PROVIDE THEM RATHER THAN ON HOW MUCH EACH UNIT COSTS, WILL HAPPEN QUITE SOON.”

THE RETAIL CONGLOMERATE | CHALHOUB GROUP

“While this would give the impression then that the country’scountry’s lastmile delivery sector is among the most advanced and robust in the world, the onground reality is that most providers tend to follow a brute force approach,” shared Agam Garg, General Manager at Yango Delivery UAE. “With little technology being leveraged to streamline operations, tasks such as scheduling, routing, communicating, tracking, and delivery confirmation are all predominantly manual. The result of this is an ecosystem that works, but is not without significant management overheads for companies and frustrations for customers.”

At the same time, Yango Delivery has world-class expertise, developed over years of success in scaling last-mile delivery operations for numerous highgrowth start-ups across the globe. This, combined with their passion for customer service excellence, means that they can entirely overhaul last-mile logistics for organisations in the UAE.

ALL-IN-ONE DELIVERY GIANT

YANGO DELIVERY

Accelerated by the pandemic, the momentum of the last-mile delivery sector in the UAE has only continued to grow. Consumers have embraced the convenience of having everything delivered directly to their front door, from food and groceries to electronics and

clothes. Market data projects that mobile retail commerce in the UAE will grow at an impressive Compound Annual Growth Rate (CAGR) of 18.9% until 2025. Consequently, there has been an exponential rise in the number of courier services and logistics providers who have stepped in to meet the market need.

“Where other providers continue to rely on archaic, manual processes, at Yango Delivery, technology is at the heart of our offering. Paperwork, phone calls, and endless spreadsheets are replaced by slick digital dashboards that can be conveniently accessed anywhere and on any device. With just a few clicks, our customers can schedule deliveries and track riders/drivers in real-time,” adds Agam.

Moreover, Yango Delivery is one of the only providers that are equally strong in both forward and reverse logistics – areas that have traditionally been segmented, leading to added complexity for both organisations that then have to work with multiple delivery partners and customers who must endure the unintuitive process of arranging a separate pick up, even if it is apparent at the time of delivery itself, that the product is not per their expectations. Agam continues, “We eliminate this complexity by serving as an all-in-one smart and speedy delivery provider.”

All this translates to an ability for their customers to outsource this critical aspect of their operations confidently. Doing so frees up precious resources they can redirect to core activities such as business development, marketing, customer service

Vibha Mehta speaks to Agam Garg, General Manager at Yango Delivery UAE, on how Yango Delivery is shaping the delivery landscape in the region

or product design that enable them to scale their business.

Additionally, while the benefits of digitally transforming last-mile operations are abundantly evident, as with any significant change to the status quo, trepidation must be overcome. “Because until now, all providers have largely offered the same value proposition, organisations assume that what they are currently being offered is the industry standard. They, therefore, have become set in their ways despite the obvious challenges they face,” says Agam.

An added consequence of this is that with a minor in the way of value to differentiate between providers, cost becomes a key factor. Companies make alarming compromises, such as working with freelancers and unlicensed operators in the race to the bottom. In addition to exposing themselves to the legal implications, these organisations risk fraud.

Agam continues, “We have been focusing on raising awareness in the market about the incredible value that the technological transformation of last-mile operations can bring. This message has resonated strongly with brands that recognise timely and reliable delivery deliveries as important to their business. After all, no matter how good your product is, it will have little value to customers who don’tdon’t receive it on time or in the condition it was meant to be delivered.”

Moreover, AI is shaping the industry, and how! Routing is one of the advancements of AI that has an immediate and measurable impact. One of the applications of AI that has a direct and quantifiable impact is routing. At Yango Delivery,

they leverage their routing and batching algorithms to optimise resource utilisation. AI is also effectively used to auto-correct addresses based on the initial pick/drop point and final pick/drop point.

“Our routing algorithm creates the most efficient routes for couriers, taking into account factors such as traffic and road limitations, while our batching technique can allow assigning orders going in one direction to the same vehicle,” dishes Agam.

Correspondingly, the adaptation of AI in their operations helps Yango Delivery UAE minimise delivery times and reduce mileage and fuel costs – which will lower the environmental impact of delivery.

“Our decision to enter the UAE followed careful market analysis and planning. The last mile logistics segment continues to grow, and the unique value proposition that Yango Delivery offers enables us to stand out as the partner of choice,” adds Agam.

“We are entirely focused on this market where we work towards transforming the sector’s operations. With the UAE serving as a proving ground for the region, we will, in parallel, assess the readiness and opportunities in other GCC markets. The potential is huge, but we will follow a strategic approach, steadily building on our strengths and successes.”

With robust growth projected for e-commerce, food delivery and other segments in the UAE, Agam expects a similarly parallel solid growth in last-mile delivery. In addition to the increase in volume, there will be increasing pressure to provide new conveniences for customers. “For example,

recognising consumer’s desire to send parcels to each other at Yango Delivery quickly. We recently launched our new rapid consumer-to-consumer delivery feature that allows Dubai residents to send and receive goods, within the Emirate, within just 60 minutes,” shares Agam.

Such rapid convenience is also being demanded of organisations. While nextday delivery has become the market standard, changing customer behaviours in the wake of the pandemic has meant that the delivery window continues shrinking. Agam states, “Today, the expectation is of same-day and express deliveries.” “In line with growing customer

expectations, there will be a need for constant innovation by last-mile delivery companies. Transformative technologies such as autonomous vehicles, drones, electric delivery vehicles and networks of pick-up and drop-off points will steadily make their way into last mile operations and will rapidly mature as uptake increases,” concludes Agam.

As has been the case with other areas of digital transformation, the UAE is ideally positioned to pioneer advancements in last-mile delivery, which other GCC markets will eventually adopt. Yango Delivery is interested in being at the forefront of this transformation.

ALL-IN-ONE

Agam Garg, General Manager at Yango Delivery UAE

HOW

BRIDGESTONE

How do you feel about starting your new position with Bridgestone in the region? Humbled, Energised and Excited! Being part of the great Bridgestone’s Middle East and Africa Team has been a rewarding experience. With my team, I get to tackle one of the most challenging markets in recent years and witness a prosperous year-end. Bridgestone’s Middle East and Africa businesses have

been on a growth trajectory, attributed to our team and partners’ unwavering commitment to development and hard work. Building strong relationships with our employees and suppliers is equally important as building strong relationships with our customers.

I am delighted at the opportunity to lead Bridgestone’s business in the MEA region. I look forward to leveraging my expertise

to reinforce the organisation’s position as a global leader in mobility solutions and elevate our credibility among customers by ensuring high-quality products.

How would you describe your leadership in terms of bringing about change in the Middle East, given your prior experience? Though I am new to the Middle East market, I have worked in Africa for over 16 years and am familiar with doing business in challenging Emerging markets. Over this time, I have learned that before embarking on any change, we must first understand where we are at and what made us successful to this point and clearly understand what needs to be protected to move forward. And almost always, you will find committed, hardworking employees, loyal customers and channel partners to take on the journey with you.

My main goal as Bridgestone MEA’s leader is to guide our organisation on its mobility solutions journey through our strong E8 commitment to the future, keep our company adaptable to the evolving market, and maintain a strong focus on sustained market leadership growth. By leveraging my past Global experience across numerous business verticals and my knowledge of the tyre industry, I will gain critical insights into how markets react to rapid changes in the industry and adjust our company accordingly. Building on this information and our extensive research capabilities, we will continue to offer customers prompt and efficient solutions without compromising quality.

What special efforts will you be making for the company?

Previous leaders have done a great job at building a solid foundation for our business; my role is to continue building and driving the business forward for the generations to come after me.

I focus on developing a dynamic, inclusive environment that fosters individual and team spirit. My core leadership purpose is to Create authentic Leadership teams by developing individuals to realise their true potential and value.

I want to create a culture and leave a legacy where every team member in

IS

From Jacques Fourie taking over as the new VP and Managing Director at Bridgestone MEA to Bridgestone’s sustainability plans

ADOPTING SUSTAINABILITY?

my organisation feels like they have progressed in their personal and professional leadership journey while working with me and acknowledge their team as one of the best to have worked with. I focus specifically here as there is no line item on the balances sheet for our greatest asset, our people. This is the role of leaders!

We at Bridgestone strive to be recognised as a diverse and inclusive organisation that our children would be proud to work for in the future. My efforts for the company will be moulded by the vision of providing our employees with an exceptional working environment that fosters innovation, growth, development and a strong sense of belonging.

What factors do you believe automation will bring about in the tyre industry?

We can see how businesses have embraced industrial

automation and implemented artificial intelligence (AI) to dominate the ever-evolving market. For businesses, especially those that invest in innovation, digitalisation of the automotive value chain opens new possibilities. These new technologies and

the accelerating data growth are also creating substantial employment opportunities across the sector.

Bridgestone’s AIbased, high-productivity manufacturing technology, which measures and checks the quality parameters of tyres by collecting vast data per tyre and further digitalisation of Bridgestone manufacturing processes, has enabled production to use less energy and produce less waste. The investment has seen Bridgestone employees upskill to operate industryleading digital technologies that have subsequently helped to improve resource efficiency and job satisfaction.

The tyre industry, aware of the changes caused by automation, has made significant investments to be future-ready and resilient.

How do you envision businesses incorporating sustainability into their regular operations?

At Bridgestone, we know the growing importance of ensuring a sustainable

future. We have been going above and beyond to fulfil this requirement while delivering effective products. With our cutting-edge and environmentally friendly mobility solutions, we have been exploring numerous ways to innovate our goods and surpass industry standards. We approach each project with sustainability as the top priority and aim at adopting environmentally friendly tyre technologies.

We intend to be the industry leader in creating a waste-free mobility sector and relentlessly work to ensure that the sector has a sustainable future. At Bridgestone, innovation and teamwork are essential to creating a sustainable mobility sector. In line with this, we partnered with pertinent businesses and joined the Sustainability Network run by the Dubai Chamber of Commerce and Industry. To reduce the over-concentration of rubber production in various places, we have engaged in multiple research and development projects to explore sustainable sources of natural rubber.

HOW IS BRIDGESTONE ADOPTING SUSTAINABILITY?

Jacques Fourie, VP and Managing Director at Bridgestone MEA

SUSTAINABLITY LNME

Automotive experts predict that electric vehicles are the next big trend in the automotive sector. We are now on the path of developing innovative EV tyres, and 30 per cent of new OE fitments developed by Bridgestone EMIA in 2020 were dedicated to EVs. We have designed ologic technology, especially for BMW’s all-electric i3. Our innovative Enliten technology and Virtual Tyre Modelling solution also underscore our efforts to attain sustainability.

How significant is sustainability going to be for Bridgestone MENA?

We at Bridgestone constantly work to live up to our slogan, “Solutions for your journey.”

We have continuously invested in developing sustainable and intelligent solutions to provide our clients with a secure and

practical experience. As a reputable supplier of cuttingedge automotive solutions, we are committed to utilising smart technology to secure a sustainable future for the mobility industry. As a result, we have been reorganising our operations regularly to promote electric mobility and increase its efficacy through cutting-edge virtual tyre remodelling and simulation technologies.

Our investments in creating smart, sustainable solutions to assure mobility’s safety and effectiveness have increased over the past few years. We acquired Azuga, a top global connected platform for

collecting data from drivers and vehicles and converting it into knowledge that will help improve the safe operation of vehicles. Additionally, we collaborated with the mobility-focused company Autobahn, which provides us with a cutting-edge platform to help startups explore the potential of developing novel, disruptive models in the mobility industry.

To become carbon neutral by 2050 and improve the sustainability of the mobility industry, electric vehicles present Bridgestone with a wide range of opportunities. We create high-end tires and EV-specific technologies

thanks to our collaboration with top manufacturers. We also want to establish a network of fully functional EV-ready retail and service locations that provide charging, mobile services, and EV maintenance and tyre servicing, all under one roof. In keeping with this, we recently collaborated with electric vehicle startup Fisker to introduce an all-electric SUV in several European countries. Additionally, we bought Arvento Mobile Systems, a company that provides digital fleet solutions and fleet management services to clients in Turkey and the Middle East.

“My main goal as Bridgestone MEA’s leader is to guide our organisation on its mobility solutions journey through our strong E8 commitment to the future, keep our company adaptable to the evolving market, and maintain a strong focus on sustained market leadership growth.”

LEADING RECOMMERCE PLATFORM

REGION’S MOHAMMED SLEIMAN, FOUNDER AND CEO OF CARTLOW, TALKS TO US ABOUT THE BASICS OF THE REVERSE LOGISTICS PLATFORM IN THE MENA REGION

Cartlow is the leading reverse logistics platform in the MENA region, combining re-commerce with an efficient returns experience and advanced return management mechanism to unlock the full potential and benefits of an end-toend solution. This unique combination enables them to offer streamlined and sustainable solutions to their partners and customers.

The e-commerce platform provides a convenient way for partners to recover value from returned products. It enables

customers to purchase high-quality products at a reduced cost, all while promoting sustainability and responsible waste management.

Cartlow offers Buy-Back and TradeIn programs allowing customers to sell or exchange their unwanted products for credit towards their new purchase. These programs are beneficial for both customers and partners. “Customers can earn money or receive discounts on new purchases, while the partners can recover value from returned or used products and promote sustainability by reducing waste,” says Mohammed Sleiman, Founder and CEO of Cartlow.

Considered one of the prominent reverse logistics platforms, Cartlow specialises in the reverse supply chain process, including handling the return and refurbishment of products. The platform focuses on remarketing returned and refurbished products, helping sellers recover value from their returned items and enabling buyers to purchase these products at a lower cost.

Cartlow is considered a reverse logistics platform because it specialises in the reverse supply chain process, which involves handling the return and refurbishment of products. The platform focuses on remarketing returned and refurbished products, helping sellers recover value from their returned items and enabling buyers to purchase these products at a lower cost.

Reverse logistics is a critical aspect of the supply chain, as it manages products after they have been sold and delivered. Mohammed adds, “In many cases, returned products may be in good condition and can be resold, which is where Cartlow’s expertise in refurbishing

and remarketing comes into play. This process involves testing and repairing products, cleaning them up, and then listing them on the Cartlow platform at a discounted price.”

Cartlow’s approach to reverse logistics not only benefits sellers by providing them with a solution to recoup value from returned products but also benefits buyers who can purchase high-quality products at a reduced cost. Additionally, this process helps reduce waste by keeping products out of landfills and giving them a second life. Overall, Cartlow’s focus on reverse logistics makes it a unique and valuable platform in the online marketplace space.

The reverse logistics market is also relatively new in the MENA region. Still, it is rapidly growing due to several factors, including increased awareness of sustainability and the circular economy, changing consumer preferences, and technological advancements. The region has been experiencing

rapid economic growth and increasing urbanisation, which has led to a rise in e-commerce and online shopping. “As a result, there has been a corresponding increase in the volume of returned products. We are seeing a growing demand for reverse services as more retailers and e-commerce companies look for ways to manage their returned products more effectively,” states Mohammed. Moreover, the region is also experiencing a shift in consumer attitudes towards sustainable consumption and responsible waste management. As more people become aware of the environmental impact of discarded products, they are looking for ways to reduce waste and recycle products. The growth of the reverse logistics market in the MENA is thus being driven by the need to manage the growing volume of returned products sustainably.

Mohammed further says, “Advancements in technology such as Artificial Intelligence, Machine Learning and Big

Data Analytics are also playing a significant role in shaping the reverse logistics market in the region. These technologies are being used to optimise the reverse supply chain process, from automated testing and refurbishment of returned products to predicting demand for refurbished items. This helps reduce costs and improve the efficiency of the reverse logistics process.”

Correspondingly, one of the biggest challenges Cartlow has encountered is the need to achieve operational scalability without sacrificing quality. “This required a substantial investment of resources, including time and money. We recognise its essential role in maintaining the high standards expected by our customers. Through the introduction of automated systems, we improved our operational efficiency and optimised our processes, resulting in better performance and higher levels of customer satisfaction,” dishes Mohammed.

Additionally, as per Mohammed, the logistics industry in the MENA

region is undergoing significant changes driven by various factors, including e-commerce growth, infrastructure development, digital transformation, and sustainability. “As the industry continues to evolve, companies will need to adapt to these changes to remain competitive and provide value to their customers,” shared Mohammed.

Focusing on sustainability, which is also one of Cartlow’s core values, they specialise in refurbishing and remarketing returned products – Cartlow is helping to reduce waste and extend the life cycle of products. Additionally, programs offered by Cartlow, such as the Buy-back and trade-in, encourage customers to recycle their old products, reducing the amount of waste that goes to landfills. Overall, Cartlow has an essential role in promoting sustainability. Mohammed says, “By implementing sustainable practices and offering various programs to help reduce waste, Cartlow is contributing to a more sustainable future.” The logistics industry is rapidly evolving. In the next five years, one can expect to see several significant changes in the industry:

> Increased automation

> More sustainable practices

> Increased demand due to the growth of e-commerce

> Increased customisation

> Greater emphasis on data

“Overall, the logistics industry is poised for significant change in the next five years. Companies that can adapt to these changes and embrace new technologies and practices are likely to succeed in this rapidly evolving industry,” concludes Mohammed.

Mohammed Sleiman, Founder And CEO of Cartlow

THE IMPACT OF AND SUPPLY CHAIN MANAGEMENT DRONES IN LOGISTICS

Rabih Bou Rached, Founder and CEO of FEDs Group, reflects with us about how drones will affect the future

As drone technology continues to evolve and advance, it is interesting to see the wide variety of industries and sectors it can and has impacted. We have already seen drones significantly improve the construction, energy and utilities, and agricultural sectors, particularly around operations and efficiencies.

One sector that could be revolutionised entirely using drone technology is the logistics industry.

As businesses in the logistics sector are increasingly adopting autonomous technology, it is vital to highlight the different applications of drones. Unlike vehicles or land-based solutions, drones can bypass traffic congestion and access hard-to-reach areas; drones also offer improved delivery to the correct address. Not only do drones significantly reduce delivery times and costs for service providers, but as technology advances, we can expect to see even more innovative ways drones are used to improve logistics

operations. Regarding warehouse management, small drones can be used to scan barcodes and streamline inventory and stock management. In contrast, cargo drones can be used to transport goods from warehouse to warehouse or warehouse to facility.

FEDS is working with its clients in the GCC to facilitate cargo transportation with drones and warehouse management. Several segments of the logistics industry would benefit from using drones for cargo transportation, including the e-commerce sector, medical supply delivery, and transporting materials to offshore or hardto-reach facilities.

Emergency response is another area of possible use, where drones can transport essential supplies and cargo during any disaster, especially where roads have been destroyed.

Furthermore, drones can be deployed throughout the supply chain, assisting with land and air deliveries. Logistics firms are also exploring new methods of collaboration between trucks and

drones. These pilot programs utilise information-sharing to execute deliveries by air to multiple locations straight from a delivery vehicle.

The construction and oil and gas industries could greatly benefit from cargo drones because such drones can carry heavy loads.

Drones can also travel many kilometres, making them an integral part of the supply chain, thus speeding up the delivery process. Then there are what the industry calls

‘last-mile delivery drones’, which have the potential to meet a vast range of consumer requirements. However, the industry has yet to resolve several challenges around last-mile delivery. At FEDS, we’ve always maintained that while the concept is part of the fast-approaching future, it has yet to be commercially viable as there are still limitations around the technology, such as limited battery life, regulatory restrictions, and concerns

around safety and security. A challenge specific to last-mile delivery is the economics – for example, spending AED50 for delivering an AED25 order isn’t viable, as it doesn’t make economic sense. We expect drones to be introduced across the UAE for last-mile services in the near future.

The drone industry must continue working to address the limitations of existing technology. Not only will this require investment in research and development, but it will need collaboration with regulatory bodies to ensure compliance. Coupled with the implementation of robust safety and security protocols, these measures can go a long way towards easing clients’ fears about the reliability of the technology.

Given the security concerns, drones’ significant advantages are that they are more secure than conventional delivery methods. With drones, we can place a package in a carrier, and the intended recipient would be the only person to interact with it throughout its journey and delivery. Although it’s important to point out that in order for this to be a viable future, effective anti-tampering systems need to be developed and deployed.

Larger logistics companies like Amazon, FedEx, DHL, and UPS are leading the way in the evolution of last-mile drone delivery services in certain areas. These companies are setting a precedent for the broader logistics industry by demonstrating drones’ viability and potential benefits; more businesses will soon follow suit.

Drones have a wide range of potential applications across industries, and the logistics sector can contribute massively to their improvement via this technology. As drone manufacturers continue to advance the capabilities of their offerings, we can expect to see even more innovative ways in which drones can be used to improve supply chain issues and add value across the board.

“DRONES CAN BE DEPLOYED THROUGHOUT THE SUPPLY CHAIN, ASSISTING WITH LAND AND AIR DELIVERIES. LOGISTICS FIRMS ARE ALSO EXPLORING NEW METHODS OF COLLABORATION BETWEEN TRUCKS AND DRONES.”

THE IMPACT OF DRONES ON LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Rabih Bou Rached, Founder and CEO of FEDs Group

SOLUTIONS PROVIDER LNME

MICRO-MOBILITY INDUSTRY SHAPING THE B2B

Husam Zammar walks us through Terra Tech’s services, B2B micro-mobility industry, and more

ounded in 2021, TERRA TECH LTD is MENA’s first B2B tech company that provides swappable battery solutions for electric motorbikes enabling users to quickly swap out batteries at designated stations, eliminating the need for lengthy charging times. TERRA offers unique and forward-thinking approaches to energy distribution and consumption through a unique SaaS model per subscription.

With a mission towards accelerating the transition to a connected ecosystem that addresses transportation needs, our innovative solutions are designed explicitly for the last-mile delivery revolution,” says Husam Zammar, Founder and CEO of TERRA Tech. “TERRA’ s vision explains why we started and what we aim for ‘To reshape the last-mile delivery by revolutionising the way we use and share energy’.”

> They are offering an intelligent connected ecosystem built of the following: Electric two and three-wheelers along with four different types of smart swapping stations featuring infinitely faster charging with a lightweight battery, high level of security, 24X7 powered pack batteries, and cheaper energy.

> Smart Platform - a cloud fleet management where our motorbikes are connected to the cloud 24/7; you can know the status of all vehicles at any time, grasp operational data in real-time, and quickly deploy various functions. This features Geo-fencing, Battery tracking, trip details, statistics, payment, etc.

As an energy provider, TERRA envisions a significant role in shaping the UAE’s B2B micro-mobility tech industry. The company plans to introduce innovative solutions enabling businesses to adopt sustainable micro-mobility options, especially in the last-mile delivery industry. TERRA also aims to leverage its expertise in clean energy solutions to provide charging infrastructure for micro-mobility vehicles and facilitate their adoption by businesses across the UAE. “We are excited to be leading the change in the MENA region and look forward to working with businesses to create a brighter and more sustainable future for all,” adds Husam. With so, TERRA hopes to support the UAE’s goal of achieving a greener and more sustainable future.

Furthermore, the micro-mobility transportation industry continuously evolves and expands, driven by technological advancements, strategic partnerships, and improved infrastructure. Husam shares, “As growth picks up, new entrants, operators, and technologies will enter the market. The energy and transportation sector must prepare for EV deployment in the upcoming years, as automotive manufacturers will introduce a broader range of EVs better suited for the UAE market.”

With climate change becoming a pressing issue, companies are looking for greener solutions to reduce their carbon footprint. Micro-mobility options, such as TERRA electric vehicles and smart ecosystems, are seen as a more sustainable alternative to traditional transportation methods like cars or trucks. For many industries, transportation is a significant expense. Micro-mobility options can be more cost-effective than conventional vehicles.

TERRA’s shift towards micromobility will allow it to operate more efficiently and effectively, reducing costs and improving overall performance. The industries recognise the benefits of micro-mobility and are exploring ways to incorporate these options into their transportation strategies. “This trend is expected to continue as the technology continues to improve and as more cities and countries invest in micro-mobility infrastructure,” says Hasam.

Automation and AI are expected to improve micromobility services’ efficiency, safety, and sustainability, making them more attractive to businesses and consumers. As these technologies continue to develop, one can expect to see more innovative and effective micro-mobility solutions.

AI-powered fleet management systems can optimise the routing and maintenance of micro-mobility vehicles,

improving their efficiency and reliability to personalise micromobility services to last-mile delivery businesses, improving their operations and increasing customer satisfaction. AI is set to shift the micro-mobility industry in the future. AI will additionally optimise micro-mobility systems for energy efficiency, reducing their environmental impact, and AI-powered predictive maintenance can reduce downtime and maintenance costs for micro-mobility vehicles.

“For that, TERRA aims to deploy digital technology in its product development. TERRA is creating a technology environment encompassing 360˚ of openness – an ecosystem powered by AI and connected to the cloud, enabling the delivery of easily accessible energy,” shares Husam. The system continuously learns, adapts, and enhances the performance

of smart batteries and batteryswapping stations. The goal is to provide a range of intelligent solutions for cities.

Husam empathises with one of the significant challenges they faced at the beginning of the launch – hiring the right people. “Recruiting professionals with experience in the electric vehicle charging and battery swapping industry may be particularly challenging, as the industry is still emerging and relatively new,” states Husam.

Regarding the logistics companies, TERRA provides various services to make the delivery services more convenient and eco-friendlier. TERRA delivers multiple benefits to make delivery services more convenient and eco-friendlier. Husam says, “Our motorbikes are

connected to the cloud 24/7. Businesses can know the status of all their vehicles at any time, grasp operational data in realtime, and easily deploy various functions. And our platform provides logistics companies with powerful analytics, route optimisation tools, and realtime tracking systems to help them plan efficient delivery routes.”

On an end note, TERRA’s solutions are designed to meet the needs of last-mile delivery companies, aggregators, and leading F&B chains, providing a more cost-effective, efficient, and sustainable option for their operations. “By targeting these specific audiences, TERRA tailors its services to meet their unique requirements and build a strong customer base in the micro-mobility market,” concludes Husam.

SHAPING THE B2B MICRO-MOBILITY INDUSTRY

“For that, TERRA aims to deploy digital technology in its product development. TERRA is creating a technology environment encompassing 360o of openness – an ecosystem powered by AI and connected to the cloud, enabling the delivery of easily accessible energy.”

BEUMER GROUP

SETS UP ITS REGIONAL HEADQUARTERS IN DUBAI COMMERCITY

Dubai CommerCity, the first and leading free zone dedicated to digital commerce, part of the Dubai Integrated Economic Zones Authority (DIEZ) and a joint venture with the property developer Wasl, announced that BEUMER Group, an international manufacturer of intralogistics systems, has set up its new offices in the free zone. BEUMER Group will be able to expand and support its regional operations in intralogistics solutions for airports, logistics, cement, chemical, ports & terminals, and minerals and mining at Dubai CommerCity.

The announcement aligns with Dubai CommerCity’s continuous efforts to advance digital commerce in the region. It aligns with its strategic identity and commitment to achieving the goals of the Dubai Economic Agenda (D33), which aims to drive the growth of Dubai’s digital economy over the next ten years.

Founded in 1935, BEUMER Group, based in Germany, is an international leader in designing and manufacturing

intralogistics systems for conveying, loading, palletising, packaging, sortation, and distribution. With 5,400 employees worldwide, the Group records annual sales of approximately EUR 1.2 billion.

With its new offices, BEUMER Group will offer its customers in the Middle East and North Africa the latest material handling solutions incorporating the latest technologies. Dubai CommerCity will support the Group to achieve enhanced operational performance through its world-class digital infrastructure, business support, customs consultations, and other services.

The move reflects the Group’s commitment to advancing its digital transformation, which is crucial in ensuring its operational success worldwide. Dubai CommerCity will allow the Group to build partnerships with a wide range of stakeholders specialised in digital commerce, logistics, shipping, and customs, among others, as part of its efforts to provide the highest levels of support to companies operating within the free zone.

Mitch Bittermann, Senior Vice

President of Commercials at Dubai CommerCity, said, “We are proud to welcome BEUMER Group to the free zone, which is a great addition to our impressive portfolio of leading companies operating in Dubai CommerCity. With our state-of-the-art digital infrastructure, exceptional capabilities, human resources, and advanced technologies, Dubai CommerCity uniquely empowers BEUMER Group to accelerate its growth in the Middle East.”

“Dubai CommerCity’s integrated digital commerce system has attracted a diverse range of international companies to set up their offices in the free zone, which offers a fast-paced, efficient, and supportive environment for doing business. Dubai CommerCity is committed to achieving the objectives of its new strategy, which adopts a ‘technology first’ approach to support companies to achieve operational success and contribute to driving sustainable economic development.”

Torben Busch, Chief Executive Officer at BEUMER Group Middle East, said: “For more than eight decades, BEUMER Group’s work contributed to bolstering its leading position, supporting business growth, and meeting its customers’ requirements, in line with the highest international standards. Dubai CommerCity offers all the prerequisites for strengthening our leading position in the MENA by supporting us to provide exceptional logistics solutions in the region through its integrated digital system, great packages, modern and smart solutions, unique offers, and knowledge-sharing and networking opportunities.”

In September 2022, Dubai CommerCity launched its new corporate identity, as per its new strategic direction, which centres on transforming its operations and services to digital commerce. This step confirms the free zone’s commitment to contributing to the digital economy by accelerating the growth of companies in the field and increasing Foreign Direct Investment (FDI) in different industries. In addition, the new corporate identity supports the objectives of the digital economy and future technology-related strategies in the emirate.