GLOBAL SUPPLY CHAIN JUNE 2021 ISSUE

June 2021 Issue 81

ENHANCING THE BUSINESS OF LOGISTICS

Saudi Arabia

Logistics & Supply Chain Industry on the rebound Kingdom gets a big business bounce with the Grand ‘Saudi Vision 2030’ Turkish Cargo

Honouring (Cargo) Frontliners

EVOTEC

Perfecting ‘Track & Trace’

SOHAR

Steaming Ahead

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Track & Trace Technology SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai

Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused.

Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.

In its simplest form, Track & Trace technology enables and empowers brand owners to track their products at all times and trace on demand, while also protecting units against counterfeiting.

Due to its rising popularity with brand owners, this technology and its multiple applications is gaining ground across the globe. Needless to say, this technology is expected to grow exponentially in the region as production and delivery systems get more sophisticated and reliable.

This edition of Global Supply Chain puts the spotlight on Track and Trace technology that is increasingly becoming a new frontier for manufacturers, retailers and fulfillment centres as they seek to bring new and quicker efficiencies into the supply chain and delivery mechanisms.

The added complexity of multiple channels to market means that there needs to be greater visibility and agility in track and trace.

EVOTEC is one such company that is spearheading the application across multiple businesses in the UAE. We interview Jihad Tayara, the company’s CEO, to get the lowdown on how companies are both adopting and adapting to this technology.

On another note, Saudi Arabia continues dominate the region’s economic powerhouse both as one of the world’s biggest oil producers and crude exporters. The logistics and supply chain sector in the Kingdom is one of the key and dominant segments in the economy further boosted by the grand and ambitious ‘Saudi Vision 2030’, the brainchild of HRH Mohammed Bin Salman Al Saud, the Crown Prince of the Kingdom.

These are also exciting times for new and pivotal technologies in Materials Handling (Swisslog) and WMS (Infor)—featured in this edition in our technology wrap-up.

Our regular series of thought leadership articles and contributions from eminent and well-regarded logistics and supply chain professionals are grist for our content mill as we engage, weigh in and deliberate on major issues gripping the industry.

Add to this our latest news roundup, updates, OpEds and a lot of carefully sieved and well-curated input to stimulate and satiate the readers’ quest for gainful insights in the logistics and supply chain arena.

Happy reading!

Malcolm Dias Editor malcolm@signaturemediame.com JUNE 2021 3

June 2021 Issue 81

22

06

Saudi Arabia Logistics Report

The Kingdom has been rebooting this vital sector. A full capsulated report by Frost & Sullivan.

NEWS

Up to date news of the Global Suppy Chain industry

28 Hellmann Worldwide Logistics 32 35 Turkish Cargo 40 Innova Supply Chain 42 BETO 44 DP World UK Frost & Sullivan Exclusive

J. Sivan, Senior Consultant, Supply Chain & Logistics Practice in the Kingdom Hellmann’s Saudi Arabian operations have been faring well.

The Carrier has paid glowing tributes to its freight frontline employees

Irene Sutton, CEO, offers valuable professional insights into the volatile world of supply chain.

New product LEO Custom launch is causing much excitement.

The introduction of a feeder rail network at the UK port holds growth prospects for the international ports operator.

4 JUNE 2021

46 Warehousing 47 Gulf Corporation-HBKU SSI Schaefer-Sievi

Sievi invests in an automation solution from SSI Schaefer to benefit from industry growth.

A new MoU has been reached in Qatar between GWC and Hamad Bin Khalifa University.

48 Cathay Pacific Report Robotics 50 EVOTEC Exclusive 52 56 Swisslog 59 SOHAR 60 WMS The Carrier has released its 2020 Sustainability Report.

Frédéric Zielinski, Managing Director, Savoye EMEA, provides his take on Robotics.

An interview with Jihad Tayara, CEO, EVOTEC. OpEd by Alain Kaddoum, GM, Swisslog ME on Smart Urban Fullfillment.

Thumbnail Report

Khalid AlShami Senior Director, Solution Consulting, Middle East & Africa, Infor on the latest in WMS cloud computing

Moved by people qrcargo.com

made.com expands its distribution centre at DP World’s London Gateway Logistics Park n DP World recently announced that one of the largest occupiers at London Gateway’s Logistics Park will more than double its onsite capacity by exercising an expansion option in its lease agreement. made.com, the leading digital lifestyle brand in home, will open an additional 350,000sqft of new warehousing over two phases, with the first phase complete by August this year and the second in April 2022, to help it meet customer demand for online retail and further optimize its supply chain.

This decision has been made possible

by DP World’s unique offering and main USP for its occupants to easily scale up their physical distribution infrastructure and grow their business within London Gateway Logistics Park.

“Over the past decade, DP World has invested nearly £2bn in the UK to create the right trading infrastructure and smart

made.com expands its distribution centre at DP World’s London Gateway Logistics Park.

logistical solutions, so we can provide our customers with fast, reliable and flexible links to international supply chains and markets,” Oliver Treneman, Park Development Director, DP World, UK. “Combined with our innovative ‘just in

time’ supply chain model, this expansion of our warehousing facility in Tilbury is an exciting step towards achieving our long-term strategy to grow the business sustainably,” remarked Nicola Thompson, COO, made.com

DP World announces corporate leadership changes

Abdulla Bin Damithan, CEO & Managing Director, DP World, UAE Region and Jafza.

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n After revealing robust financial results for the year-end of 2020 and an encouraging start to 2021, DP World will turn a new page with a transition in management in the UAE. Abdulla Bin Damithan has been appointed Chief Executive Officer and Managing Director of DP World, UAE Region and Jafza.

He takes the reins from Mohammed Al Muallem, who has been promoted to Executive Vice President of DP World.

During his 20-year long career at DP World, Abdulla Bin Damithan has held leadership positions with increasing responsibilities, the most recent being Chief Commercial Officer for the UAE Region.

As an accomplished leader in the maritime and logistics sector, he has led different aspects of the business to commercial success. This includes Ports

& Terminals, Parks & Zones and Trade Enablement solutions, a press release stated.

“I am confident that the leadership of Abdulla Bin Damithan will take DP World, UAE Region to the next level of growth,” noted Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer, DP World.

“I look forward to utilising my experience in the company to cement DP World’s position as a leading smart trade enabler,” noted Abdulla Bin Damithan, CEO & Managing Director, DP World, UAE Region and Jafza.

“In my new position, I will continue to stay committed to my goal of leading the organisation and our subsidiaries to newer heights,” commented Mohammed Al Muallem, Executive Vice President, DP World.

Etihad Rail collaborates with Transportr to develop integrated digital logistics services n Etihad Rail, the developer and operator of the UAE’s national railway network, recently signed an agreement with Transportr, a leading company in digital freight services.

The cooperation comes as part of Etihad Rail’s long-term digital innovation strategy in advancing cutting-edge technology for the rail sector, alongside the company’s commitment to the UAE’s digitalisation agenda.

Through the cooperation, Etihad Rail and Transportr will work together to enable the streamlining of service provision in the logistics sector through digital solutions such as booking, tracking, and multi-modal connectivity, that will provide a complete digital rail freight solution that will complement Etihad Rail’s range of new and sophisticated technologies that are convenient and efficient.

“Through integrating state-of-the-art technology into our network, we are creating a rail service that is new, modern, and cost effective, bringing significant benefits to the wider local and regional logistics sector,” observed Ahmed Al Hashemi, Executive DirectorCommercial, Etihad Rail.

“This infrastructure

PO Maritime MCV arriving at DP World Yarimca.

Ahmed Al Hashemi, Executive Director, Commercial, Etihad Rail

will connect key centres of industry with urban and rural communities, sustaining trade, boosting national development, and delivering faster, safer, and more reliable services for businesses,” noted Alaa Hawari, General Manager, Transportr.

Etihad Rail continues to drive change and enhance the wider logistics and transport sector in the UAE and the GCC. The company integrates novel technological breakthroughs with preexisting logistical systems, ensuring that customers can access the full benefits of the UAE’s status as a global logistics hub.

Through providing the potential to connect the Emirates, from Al Ghuweifait on the borders with Saudi Arabia through to eastern ports on the Indian Ocean, Etihad Rail delivers the smooth and seamless transport of cargo goods.

P&O Maritime Logistics launches new inland river route n A new container and breakbulk shipping line from Marmara to the Caspian Sea, via the Russian inland waterways, saw the completion of its trial voyage at the end of last month, connecting Turkey to the strategically-important region of Central Asia.

In 2020, approximately US$ 31.2bn in trade took place between Turkey, Russia and Central Asia. The region accounts for 6% of Turkey’s exports and 9.6% of Turkey’s imports. In the same year, US$ 17.8bn of imports and US$ 4.5bn of exports were made with Russia, one of Turkey’s largest trade partners.

The new line utilising P&O Maritime Logistics’ Multi Carrying Vessel (MCV) will mainly transport containerised products such as industrial machines, construction materials, textiles, cosmetics, white goods, and marble, while additionally offering a convenient service for breakbulk & project cargo.

The state-of-the-art container terminal at DP World Yarimca, is now one of the largest in the İzmir Gulf and Turkey, with a capacity of 1.3mn.

“With trade booming between these regions, the opening of a new sea route will undoubtedly be a boon to firms operating in these markets,” remarked Kris Adams, CEO, DP World Yarımca.

“P&O Maritime Logistics were selected because of the ability to carry both breakbulk and container cargo, which fits with the type of goods that move on this route,” commented Martin Helweg, CEO, P&O Maritime Logistics.

JUNE 2021 7

Almajdouie Logistics invests in Hyundai heavy-duty vehicles

Al Majdouie Hyundai partnership.

n Saudi Arabia’s Almajdouie Logistics recently enhanced its fleet with 30 new Hyundai Xcient trucks, which are equipped with advanced technology to improve efficiency and sustainability.

The heavy-duty vehicles will support the company’s ongoing efforts to expand its business and implement large-scale regional projects.

Almajdouie Motors Company, the authorized distributor of Hyundai Commercial Vehicles in the eastern and northern regions of Saudi Arabia, delivered the trucks in line with an existing contract.

“We are pleased to deliver this large fleet of heavy trucks to one of our sister companies after they tested 50 trucks in operation for more than four years. The new order comes under the company’s strategy to renew its fleet and help in carrying out its construction and logistical work,” remarked Eng. Sherif El Gohary, Managing Director, Almajdouie Motors-Hyundai.

“As an asset-based company offering a range of services spanning diverse sectors, effective asset management plays a key role at Almajdouie Logistics. The new trucks are

8 JUNE 2021

a valuable addition to our expansive fleet and will help us to increase efficiency and further improve our high levels of service,”commented Mohammad Bin Ali Almajdouie, CEO, Almajdouie Logistics Hyundai Xcient trucks are available in a variety of configurations, including dual, triple, or four-axle chassis versions. All models feature automatic transmissions and advanced suspension systems that provide stability under all operational conditions.

The high roof cabin and air suspension make the journey more comfortable for the driver. The trucks are equipped with aluminum air tanks which help to reduce condensation and create cleaner air inside the tanks.

The engine produces 440 horsepower, making the Hyundai Xcient one of the most powerful heavy-duty trucks globally.

Hyundai Xcient models feature advanced technologies that improve performance and lower operating costs.

The innovative design and low centre of gravity make the Xcient ideal for transporting huge volumes, further enhancing the fleet’s efficiency.

Qatar Airways Cargo to support prioritization of vaccines n Qatar Airways Cargo has signed a Memorandum of Understanding (MoU) with UNICEF for a five-year period to support UNICEF’s Humanitarian Airfreight Initiative.

Through this initiative, Qatar Airways Cargo will work closely with UNICEF and its freight forwarders to prioritise the transport of vaccines, medicines, medical devices and critical supplies utilising its extensive global network and capacity.

Through its QR Pharma product, Qatar Airways Cargo will offer controlled cool chain and dedicated monitoring, intervention and servicing as well as proactive re-icing at its Doha hub when required and will also adjust and increase its cold chain capacity to meet UNICEF’s forecasted requirements.

“The logistics around the transportation of these shipments is complex and being at the forefront of time and temperature-sensitive transportation, we understand the intricacies of a seamless cool chain and the criticality of transporting Covid-19 related shipments on priority,” commented Guillaume Halleux, Chief Officer Cargo, Qatar Airways.

“Delivery of these life-saving vaccines is a monumental and complex undertaking, considering the sheer volumes that need to be transported, the cold chain requirements, the number of expected deliveries and the diversity of routes” noted Etleva Kadilli, Director, UNICEF Supply Division.

UNICEF’s Humanitarian Airfreight Initiative brings together a number of airlines covering routes to over 100 markets for the air transport of Covid-19 vaccines and other critical supplies in support of the COVAX Facility – the global effort aimed at equitable access to Covid-19 vaccines.

Qatar Airways Cargo played a major role during the pandemic last year from the very early stages, ensuring vital aid and PPE is transported globally. The cargo carrier continued in the face of challenges, ensuring continuity of global trade and prioritised medical and aid shipments working closely with governments and NGOs to transport over 250,000 tonnes of essential supplies to impacted regions.

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Emirates SkyCargo completes one year of transporting cargo on passenger seats n Emirates SkyCargo is marking the first anniversary of loading urgently required PPE, related supplies and other vital cargo on the seats and inside the overhead bins of its Boeing 777-300ER passenger aircraft.

Responding to the pressing demand for transporting PPE during the first wave of the Covid-19 pandemic in late April 2020, the freight division of Emirates adjusted its operating model to load select goods inside the aircraft cabin on passenger seats and in overhead bins to make additional room for urgent cargo on its flights.

Over the course of one year, the air cargo carrier has now operated more than 3,100 flights with cargo on seats and in the overhead bins transporting more than 11,000 tonnes of vital cargo, equivalent to cargo transported on 800,000 aircraft seats.

The procedures developed also

specified the maximum weight and dimensions of individual packages as well as the types of cargo that could be permitted inside the cabin and additional safety instructions. For example, all perishable cargo packaging for loading on seats and in bins have to include an adequate internal absorbent layer.

PPE and other medical supplies tend to be the most common cargo transported on aircraft seats and inside the bins.

Other general cargo including garments and clothing, dry food, dental supplies and sporting goods have also been transported on seats.

Emirates SkyCargo has continued to serve as an important global connector of urgently required goods and supplies during the Covid-19 pandemic through its rapid and flexible approach and by working closely with its customers.

ACME Intralog is the exclusive distributor of Leuze sensor products n ACME Intralog has announced an agreement with Leuze, a German manufacturer of industrial automation solutions, to become exclusive distributor of the company’s products, which include sensors and safety equipment.

The distribution arrangement between Acme Intralog and Leuze Turkey subsidiary, will see ACME carry a full range of high-quality products from the sensor manufacturer, for the markets of the UAE, Saudi Arabia, Bahrain and Oman.

Established more than 50 years ago, Leuze manufactures a wide variety of products for industrial automation–including sensors for switching, measuring, safety, identification, data transmission, industrial image processing, network and connection technology, as well as accessories and supplementary products.

“Our agreement with Leuze underlines UAE’s strategy to position the country as a global industrial hub by 2031,” asserted Navin Narayan, CEO, ACME Intralog.

The agreement will also enable ACME to utilize Leuze’s innovative technologies when developing solutions

10 JUNE 2021

Navin Narayan (R) with Matthias Hoehl and Samet Sarıkaya (L)

for its customers in the region – allowing companies in the region to benefit from optimum usability and the highest levels of performance.

“With ACME as an authorized distributor of Leuze sensors, switches, safety products, cables, connectors and more; we will be able to better serve

customers in the Middle East region,” he stated.

Leuze is an innovative and efficient sensor solutions provider for industrial automation applications. Over the past 50 years or so, the company has grown into an international enterprise and is considered a technology driver.

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Kibsons expands its home delivery fleet with 80 new Thermo King refrigerated vans n Kibsons International, one of the largest retailers in the United Arab Emirates (UAE) has expanded its grocery home delivery fleet with 80 new refrigerated vans refrigerated with V-300 units from Thermo King.

The new refrigerated vehicles will operate across Kibson’s multiple sales points, cold store facilities and meat processing plant, expanding the reach of the company’s home delivery operations across the entire country.

The V-Series refrigeration units from Thermo King, a leader in transport temperature control solutions and a brand of Trane Technologies, feature tight temperature control even with multiple delivery drops, easy to use driver interfaces and low noise, low emission operation as demanded in urban operations.

“Fleet utilization is also crucial for our business, and Thermo King and its dealer network provide us with service and support whenever and wherever we need ensuring the highest uptime,” noted Husainy Sharbat, Finance and Operations Manager, Kibsons.

“The accelerated growth of the online grocery shopping increased the demand for last-mile delivery fleets specified to transport the widening range of fresh and frozen products,” remarked Walid Sellami, Area Manager, Thermo King UAE.

Saudi Arabia’s Al Sadhan Group signs business contract with CHEP n CHEP has announced that one of the leading supermarket chains in the Kingdom of Saudi Arabia, the Al Sadhan Group, operator of SPAR Saudi Arabia and Al Sadhan Trading, has signed a two-year full participating agreement with CHEP Middle East and North Africa (MENA). The Al Sadhan Group will advocate for pallet pooling with its suppliers and vendors.

CHEP’s business model is based on the circular economy concept of ‘share and reuse’. With the CHEP Pooling System the customer rents the pallets they need. CHEP controls the entire administrative procedure, retrieval and quality assurance of the pallets in a closed-loop system.

Both SPAR and Al Sadhan Group receive CHEP pallets to their Distribution

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Marco Salort Pons, CHEP MENA Director, Commercial

Centres (DC) and stores, resulting in easier handling and reduced risks that are inherent when using inferior-quality pallets.

“Making the switch to CHEP pallets gives us significant advantages over single-use pallets of non-standard sizes and quality that we receive from our suppliers,” commented Rakan Almarshad, Procurement and Contracts Manager, Al Sadhan Group.

“CHEP’s business model of sharing, reusing and recycling pallets helps us reduce our environmental impact,” observed Abdulaziz Al Sadhan, Group Supply Chain Manager.

“We strive to build and maintain long-term relationships with our customers through collaboration to improve their supply chains, reduce overall supply chain costs and provide operational efficiencies,” noted Marco Salort Pons, CHEP MENA Director, Commercial.

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10 buggies join Dubai Customs’ Siyaj to enhance inspection n Following its strategic plan 2021-2026 towards the leadership of safe customs internationally, Dubai Customs supported its Siyaj smart initiative with ten environmentally friendly buggies. Two of them will work for the K9 Unit to support with inspection operations.

The new buggies will cover the sea customs centres (Dubai Creek, Deira Wharfage, Hamriya Port, and Port Rashid). Thanks to their small size, the buggies will be able to cover hardto-reach areas assisting inspectors in thwarting smuggling of prohibited and counterfeit goods. This will be done without disturbing visitors of these touristic attractions.

Siyaj (Fence) initiative is the first integrated control 24/7 system in the world. The new system is based on a number of sophisticated AI technologies, rapid intervention teams that work around the clock, drones, and the K9 sniffing dog unit.

The initiative will enhance Dubai and

the UAE’s security and help protect the society from the hazards of illegitimate shipments while facilitating trade and supporting the global supply chain.

“Siyaj initiative enhances security in Dubai and the UAE, and helps thwart smuggling attempts while facilitating trade,” commented Ahmed Mahboob Musabih, Director General, Dubai Customs.

Musabih confirmed that Dubai Customs follows a series of procedures

and techniques to fight smuggling, including early warning served by the smart risk engine, which can detect any suspicious shipments.

Intelligence information will be analysed carefully to intercept suspicious shipments and thwart these smuggling illegitimate operations. This will also help streamline the international trade and supply chain,” remarked Abdullah Busnad, Executive Director, Customs Inspection Division, Dubai Customs.

Turkish Cargo adds Munich to its expanding cargo flight network n Turkish Airlines’ increasingly popular air cargo brand Turkish Cargo keeps growing steadily by strengthening its flight network.

After Frankfurt, Turkish Cargo has now recently added Munich, the commercial and industrial city of Germany, among its destinations served with direct cargo flights.

“Besides making a remarkable contribution to the need for global air cargo transportation, we are glad to add Munich, a substantial business center, to our flight network, and continue to offer a stable and reliable cooperation to the leading exporters of the market,” affirmed Turhan Ozen, Chief Cargo Officer, Turkish Cargo.

Munich is considered as the technological metropolis of Germany, and it hosts the market leaders in

14 JUNE 2021

automotive, electronics, medical and biotechnological products.

Turkish Cargo aims to strengthen the air cargo bridge it has established between Europe and the Middle East with the reliable, fast and direct air transportation it offers to logistics service providers with Airbus A330F type wide body cargo aircraft on IST-MUC-IST cargo flights.

Connecting the continents, Turkish Cargo has the world’s largest direct cargo flight network consisting of 96 destinations, 25 direct cargo destinations and express carriers. Turkish Airlines continues to carry out global transportation of both passengers and cargo with its growing fleet currently comprising 363 aircraft including 25 dedicated freighters.

Aramex appoints new Chief Executive Officer n Aramex recently announced the appointment of Othman Aljeda as Chief Executive Officer, replacing Bashar Obeid who submitted his resignation to the Board on 29 April 2021.

Othman joined Aramex 1994, and over the last two decades, he has stepped up in several leadership roles to strengthen the Company’s business in the GCC, Asia, and North America & Europe.

From 2007 to 2017, Othman set up Aramex’s first regional office in Asia and spearheaded its expansion plans in the region, establishing major hubs in Hong Kong and Singapore. In 2015, he played an integral role in leading Aramex’s first successful acquisition of Mail Call in Australia.

In 2020, in addition to his Regional CEO responsibilities, he also served as Interim Chief Operating Officer for six months, ensuring stability and continuity through a challenging, unprecedented pandemic.

“Othman will continue to focus on driving our ambitious growth strategy, build on our global partnerships and guide Aramex through this new and exciting chapter,” remarked Captain Mohamed Juma Alshamsi, Chairman of the Board of Directors, Aramex.

“Along with the rest of the management team, we will continue to build on our solid foundation, capitalize on our strengths, and take the lessons we learned from the pandemic to find the most innovative solutions,” commented Aljeda.

Othman Aljeda, CEO, Aramex

DAFZA signs agreement with SCA to support trading of crypto assets n Dubai Airport Free Zone Authority (DAFZA) has recently signed an agreement with the Securities and Commodities Authority (SCA). The agreement will support the regulation, offering, issuance, listing and trading of crypto assets within the free zone.

The agreement was signed by Dr. Maryam Al Suwaidi, Acting CEO of the Securities and Commodities Authority and Amna Lootah, Assistant DirectorGeneral, DAFZA. The new agreement allows companies trading with crypto assets cryptocurrencies to be licensed within DAFZA as the SCA will be issuing the relevant approvals and licenses.

In cooperation with DAFZA, the Securities and Commodities Authority oversees the offering, issuance, listing and trading of crypto assets and licensing related financial activities within the jurisdiction of DAFZA. “The signing of the agreement confirms the two parties’ keenness to

develop its cooperation in common areas of work, which contributes to achieving the objectives of the national agenda and the government’s strategy to enhance economic growth,” affirmed Dr. Maryam Al Suwaidi.

“Cryptocurrencies and crypto assets have moved from the stage of showing interest to direct investment, which have got acceptance and investments from key

global companies,” added Amna Lootah.

The demand for cryptocurrencies and crypto assets is set to accelerate rapidly in the near future in the UAE and other GCC countries, as global trading volumes for crypto assets continue to soar.

Cryptocurrencies have fuelled demand for real estate investments as early adopter investors who grew rich from digital currency look to diversify their assets.

JUNE 2021 15

Tristar Group extends support towards India’s fight against Covid-19 n The Tristar Group has donated 150 sets of oxygen concentrators to St. Martha’s Hospital in Bengaluru, India, to support the state’s battle against the Covid-19 pandemic.

With a compact, ergonomic design that uses less space and energy, and produces less heat, the oxygen concentrators are ideal to provide some relief in India’s crowded hospitals and healthcare centres, as the country continues to fight against the pandemic.

“We are a business for purpose and saving lives is an integral part of our corporate strategy,” affirmed Eugene Mayne, Group CEO, Tristar.

Abu Dhabi Ports announces completion of Delma Port’s second phase n In support of its ongoing development of Al Dhafra Region, Abu Dhabi Ports recently announced the completion of the second phase of development at Delma Port. Abu Dhabi Ports is leading the developments of Al Dhafra’s premiere multi-purpose port and other key maritime infrastructure in the emirate.

A key focus of the second phase of the development was the construction of a dedicated 315-metre quay wall, which together with several modern onsite facilities, were designed to specifically satisfy the demands of Delma Island’s and Al Dhafra region’s long-standing maritime community.

“Projects such as the ongoing development and evolution of the new Delma Port are vital to facilitating the economic growth of Delma Island and Al Dhafra region,” observed Captain Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports.

“The new Delma Port serves as the focal point of our government’s plans to grow and promote the economic and social development of Al Dhafra region,” noted Saif Al Mazrouei, Head of Ports Cluster – Abu Dhabi Ports.

The second phase of the development also saw the creation of a new protection breakwater that will shelter the northern half of the harbour which, as part of the project, was dredged to six metres in depth.

16 JUNE 2021

Shipwaves lends a helping hand to Covid-affected India n With the aim of extending support amid devastating second wave of Covid-19, which has resulted in a significant oxygen shortage, Shipwaves recently shipped 500 Oxygen cylinders in a 20ft container from Dubai, UAE. “At Shipwaves we demonstrated our continued support for the country by offering free of cost endto-end logistics services to individuals, businesses, and non-governmental organizations (NGOs) who would like to support the nation in these pandemic times. I express my gratitude to all of my Dubai and India teams who worked tirelessly to make this mission a success during the holy month of Ramadan,” affirmed Mohammed Haris, Managing Director, Shipwaves.

Mammoet wins contract for Saudi Aramco’s Gas Storage project n Over 200 lifts are expected to take place throughout the 17-month long project in the Aramco Hawiyah Unayzah Gas Reservoir Storage (HUGRS) project is located 260km east of Saudi Arabia’s capital Riyadh.

The plant comprises a gas injection facility with a capacity of 1,500mn standard cubic feet per day (mmscfd) as well as a withdrawal facility which is capable of processing up to 2,000 mmscfd of gas.

The project includes construction of a gas injection facility with booster and injection compressors, a gas reproduction facility with reproduction compressors and slug catchers, as well as various utilities & offsite facilities.

Samsung Engineering, the appointed main engineering, procurement and construction (EPC) contractor, has awarded Mammoet’s Saudi branch the transport and installation scope of the project.

Over 60 components will be received either at King Fahad Industrial Port

in Jubail or at a fabrication facility in Dammam and transported to the site for further installation. The heaviest components include four slug catchers, each weighing over 400T. Over 200 lifts are expected to take place throughout the 17-month long project.

“This contract award was secured primarily on the back of the client’s

confidence in Mammoet’s technical expertise, quality and safety standards and we are confident in the success of this project,” remarked Kevin O’Sullivan, General Manager, Mammoet Saudi Arabia.

The facility is expected to be completed in 2023 and will enable Saudi Aramco to efficiently manage surplus gas volumes to meet seasonal demand.

JUNE 2021 17

Saudi Arabia prepares for its first wind farm from Vestas n The Saudi Arabian Ministry of Energy recently commemorated the mid-way mark of the construction of the Dumat Al Jandal wind farm, Saudi Arabia’s first utility-scale wind farm of more than 400MW capacity and the largest in the Middle East.

HRH Abdulaziz Bin Salman, Minister of Energy in the Kingdom of Saudi Arabia and Fawaz Al Muharrami, Acting Executive Director, Clean Energy, Masdar, were among those who visited the Dumat Al Jandal wind farm construction site to commemorate the installation of half of the wind turbines from Vestas.

Once completed and commercially operational in 2022, the wind farm will potentially supply clean electricity to 70,000 Saudi households and will displace 988,000 tonnes of carbon emissions every year, in support of the Kingdom’s climate change mitigation goals.

“We believe that the Dumat Al Jandal wind farm is the first step to diversifying not only the Energy sector but also the Renewable Energy sector by adding wind power into the energy mix and

ultimately creating three times more work opportunities for the local talent,” remarked Muhamed Bou-Zeid, General Manager, Vestas MENA. Located in the Al-Jouf province, 900km north of Riyadh the capital, the Dumat Al Jandal wind farm project was awarded to the consortium by the Renewable Energy Project Development Office (REPDO) of

the Saudi Ministry of Energy, Industry and Mineral Resources (MEIM) in January 2019.

The Dumat Al Jandal wind farm will supply electricity under a 20-year purchase agreement (PPA) with the Saudi Power Procurement Company (SPPC), a subsidiary of the Saudi Electricity Company (SEC), the Saudi power generation and distribution company.

dnata expands cargo operations at Sydney Airport n dnata, a leading global air and travel services provider, has signed a five-year lease with Sydney Airport to expand its existing cargo facility at the international airfreight terminal by an additional 4,800sqm.

The enlarged 16,300sqm site with direct ramp access will feature an increased number of landside and airside docks as well as enhanced processing capacity and throughput with the flexibility to scale. dnata also operates a 10,000sqm dedicated import warehouse. This offairport warehouse is equipped with ball decks to facilitate the de-containerization process.

“We are committed to consistently investing in infrastructure and equipment to deliver world-class service, safety and efficiency to our customers,” remarked Brett Fuller, Managing Director, dnata Australia. dnata operates cool chain facilities

18 JUNE 2021

in both Sydney Airport and Melbourne Airport. The facilities were designed and built with flexibility and unique product requirements in mind, enabling

the company’s cargo teams to offer an uncompromised temperature-controlled handling and storage solution to airline customers.

Bee’ah partners with PepsiCo for plastic recycling & PET waste collections n Bee’ah has joined forces with PepsiCo, one of the leading food and beverage companies, to support the company’s commitment to collect and recycle the equivalent of 100% Aquafina plastic packaging produced in the UAE in 2021.

The pledge is in line with the UAE’s goal to divert 75% of total waste from the landfill and is part of PepsiCo’s ongoing goals to reduce, recycle and reinvent for a more sustainable food system. PepsiCo’s local bottling partner, Dubai Refreshment Company will support this ambitious goal.

As part of the partnership, Bee’ah will oversee the collection, transportation and recycling at their Material Recovery Facility (MRF) of polyethylene terephthalate (PET) plastics. Bee’ah’s MRF is one of the largest and top producers of plastic recyclables in the Middle East with an annual capacity of over 600,000 tonnes.

“As the Middle East’s sustainability pioneer, Bee’ah is leading the charge for a circular economy and zero-waste targets

in the UAE and wider region,” noted Khaled Al Huraimel, Group CEO, Bee’ah.

“We are increasing recycling rates, increasing recycled content in packaging, and increasing the recyclability of packaging, enabling us to reuse packaging material rather than treating it as waste,” observed Aamer Sheikh, President and General Manager at PepsiCo-Middle East,

North Africa and Pakistan.

To encourage consumers to join PepsiCo’s commitment for sustainability, Bee’ah will also leverage its community recycling incentivization programme– Bee’ah Rewards, which uses a blockchainpowered mobile app to track recyclers’ deposits of plastic bottles at any of Bee’ah’s collection points.

DSV Panalpina to acquire Agility’s Global Integrated Logistics Business n Agility and DSV Panalpina recently signed an agreement for DSV to acquire Agility’s Global Integrated Logistics (GIL) business. The combination is expected to create a top-three global freight forwarder based on revenues.

Agility will become the second largest shareholder in DSV with an approximate 8% stake in the combined company.

Agility and DSV have reached an agreement that DSV will acquire Agility’s stand-alone GIL business in an all-share transaction.

The combination of DSV and GIL will fortify DSV’s position as a leading global transport and logistics company with a combined pro forma revenue of approximately US$ 22bn and a combined workforce of more than 70,000 employees.

“This deal creates significant shareholder value and marks a new milestone in Agility’s journey. Agility remains committed to the supply chain industry, and will become the second largest shareholder in one of the fastest-growing and most profitable logistics companies in the world,” said Tarek Sultan Al-Essa, Agility’s Vice-Chairman.

According to Tarek, Agility will be exploring opportunities between DSV and its other businesses, with promising areas of future cooperation potentially including Agility’s Logistics Parks business, Shipa group of companies, and technology ventures. Agility will remain an emerging markets leader, investor in emerging technologies, and champion of sustainable business.”

“Agility’s Global Integrated Logistics business and DSV are an excellent match, and we are proud that we can announce our agreement to unite,” remarked Jens Bjørn Andersen, Group CEO, DSV.

Tarek SultanAl-Essa, Vice Chairman, Agility.

JUNE 2021 19

DP World and Ethiopia sign MoU n DP World has signed a Memorandum of Understanding (MoU) with the aim of developing the Ethiopian side of the road linking Ethiopia to Berbera into one of the major trade and logistics corridors of the Country’s international trade routes.

The MoU, which was recently signed in Addis Ababa by Dagmawit Moges, Ethiopia’s Minister of Transport, and Sultan Ahmed Bin Sulayem, Group Chairman and CEO,DP World.

In terms of the MoU, it is proposed that the Parties would establish a joint venture logistics company to perform logistic operations from origin to destination.

DP World and its partners envisage investing up to US$1bn over the next ten years in developing the supply chain infrastructure along the corridor. This will include dry ports, silos, warehouses, container yards, cool and cold chain depots, freight forwarding and clearing activities.

“Ethiopia aims to diversify its port access facilities and services to improve its trade corridor access routes; utilizing

the Berbera corridor will surely have a potential to make Ethiopia a front runner in logistics operations,” commented Dagmawit Moges, Ethiopia’s Minister of Transport.

“As a leading global provider of trade and logistics solutions, we strongly believe

that developing the Berbera Corridor into one of the major trade and logistics corridors will unlock huge economic benefits for Ethiopia, and support its ambitious development plans,” remarked Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.

“We are pleased to strengthen our partnership with Etihad through this latest agreement, which further builds on our

shared history of successful collaboration,” commented Khalid Al-Bassam, Chief Commercial Officer, Saudia.

Etihad Airways and Saudia solidify relationship n Etihad Airways and Saudia recently announced a new reciprocal loyalty agreement, expanding on the existing codeshare deal between the two airlines.

Members of the Etihad Guest and Al Fursan programmes can now earn and redeem miles on flights across both carriers’ networks. Loyalty programme members from both airlines will also be able to earn Tier Miles and Tier Segments, helping them progress to the next tier level faster. In addition, members will be able to earn miles on Etihad and Saudia codeshare flights.

“This partnership complements Etihad’s existing codeshare agreement with Saudia and opens more destinations for Etihad Guest members to earn and spend their miles through travel,” remarked Terry Daly, Executive Director Guest Experience, Brand & Marketing, Etihad Airways.

20 JUNE 2021

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SAUDI ARABIA REPORT

SAUDI ARABIA: Energizing the Kingdom’s Logistics Sector The Kingdom of Saudi Arabia, by virtue of being the the largest country in the Middle East powered by a vibrant economy, makes a compelling case as a transport and logistics value proposition.

The nation is located in a geographical strategic area at the confluence of the world’s top three continents—Asia, Europe and Africa.

This position gives it the distinctive advantage as the convergence point of trade and distribution routes through the oil-rich Arabian Peninsula.

Saudi Area is the largest logistics

market in the region with impressive market metrics that include a consistently growing economy, a developed logistics infrastructure, one of FEATURES OF LOGISTIC the largest roadKEY networks in the world, KSA GOVERNMENT HAS ALREADY INVESTED HEAVILY I new sophisticated industrial cities, the SUCH AS PORTS, RAILWAYS, ROADS AND AIRPORTS. largest maritime network in the region and the commitment of increased spending on public projects on the back of the Grand ‘Saudi Vision 2030’.

The following report

by Frost & Type of Services Offered Sullivan, provides a snapshot of the Market Nature • Air, Sea and Land • Stage of Market promise and potential Freightof the Kingdom Growth Stage • Custom Clearance • Competition Structure: of Saudi Arabia’s effervescent logistics - Fragmented • Import & Export sector—Editor. • E-commerce Logistics • Warehousing

22 JUNE 2021

• Value Added Services • Express Services • Project Cargo & more

SAUDI ARABIA REPORT

Saudi arabia transportation market overview Critical success factors SAUDI ARABIA TRANSPORTATION MARKET Transformation of business models is one of the key for service providers to stay OVERVIEW

•Cloud based online freight TRANSFORMATION OF BUSINESS MODELS IS ONEplayers OF THEand KEYlogistics FOR SERVICE TO STAY AHEAD OF COMPETITION FROM BOTH ahead of competition from both established start PROVIDERS ups services is expected to play key role ESTABLISHED PLAYERS AND LOGISTICS START UPS in penetrating into both existing Market MarketOverview: Overview: and newsuccess business segments.

Critical factors Fragmented market with a mix of domestic, and international players, Fragmented market with a mix of domestic, and international players, offering solutions such as FTL, LTL, serving across various industry offering solutions such as FTL, LTL, serving across various industry verticals. pricingservices to penetrate • Cloud•Competitive based online freight is verticals. expected play key segments, role in mosttoindustry and penetrating intowith bothlarge existing and new contracts brands/ Keycompetitive competitive factors: Key factors: business segments. to minimize threat of organizations Largesized sized fleet, wide spread network country or region Large fleet, wide spread network acrossacross country or region connecting major industrial and and consumption hubs, competitive pricing. pricing. unorganized connecting major industrial consumption hubs, competitive • Competitive pricingtransporters. to penetrate most industry segments, and contracts with large•Skilled brands/organizations to minimize human resources to fulfil threat of unorganized transporters. the supporting activities within

Keyservice service offerings: Key offerings: Specialized service offerings suchsuch as break bulk, reefer container, Specialized service offerings as break bulk, reefer container, Temperature Controlled Offerings for Perishables.

Temperature Controlled Offerings for Perishables.

•

Keytechnologies: technologies: Key Telematics,Warehouse Warehouse Management Systems, Vehicle to Vehicle Telematics, Management Systems, Vehicle to Vehicle communications, andand tracking are some of theof technologies that have communications, tracking are some the technologies that have strong on on service offerings stronginfluence influence service offerings.

transportation such loading Skilled human resources to as fulfil the and unloading at the points of origin supporting activities within transportation such as loading and and destination. unloading at the points of origin and destination.

•

own maintenance Supporting infrastructureof forfleet ownand maintenance of fleet manpower at manpower at alland key operation all key operation hubs, Riyadh, especially hubs, especially Jeddah Riyadh, Jeddah and Dammam

Security and safety: Security and safety: Qualityand and safety other important requisites road freight Quality safety areare other important requisites of roadoffreight transportation service offerings. transportation service offerings.

•Supporting infrastructure for

and Dammam.

Source: Frost & Sullivan analysis

E-commerce growth coupled with increase in domestic consumptions will be the catalyst in warehouse modernization and infrastructure, KEY FEATURES LOGISTICS - KSA whichOF will also give rise to adoption to new technologies.

2

GOVERNMENT HAS ALREADY INVESTED HEAVILY IN THE CONSTRUCTION OF SEVERAL TRANSPORT & LOGISTICS INFRASTRUCTURE KEY KSA FEATURES OF ROADS LOGISTICS SUCH AS PORTS, RAILWAYS, AND AIRPORTS.- KSA

KSA GOVERNMENT HAS ALREADY HEAVILY OF SEVERAL TRANSPORT & LOGISTICS INFRASTRUCTURE Key features of INVESTED logistics - KSAIN THE CONSTRUCTION INDUSTRY OVERVIEW •The freight transportation SUCH AS PORTS, RAILWAYS, ROADS AND AIRPORTS. KSA government has already invested heavily in the construction of several segment has dominated the transport & logistics infrastructure such as ports, railways, roads and airports.

INDUSTRY OVERVIEW logistics industry of Saudi Arabia.

The freight and logistics industry is a large and dynamic industry, strongly supported by state-led Type of Service Competing Parameters End User Type ofHAS Services Competing KSA GOVERNMENT ALREADY INVESTED HEAVILY IN THE CONSTRUCTION OF SEVERAL TRANSPORT & LOGISTICS INFRASTRUCTURE Market Nature Type of Service investments in rail, maritime, Industries Catered Revenue%: •Clientele Offered ROADS AND AIRPORTS. Parameters SUCH AS PORTS, RAILWAYS, road,End logistics, Air, Sea and Land • Stage of Market Catered • Clientele Catered User and airport •Freight Transportation: 68.8%Revenue%: •Network coverage in KSA Type of• Services Competing Type of Service Freight Growth Stage INDUSTRY OVERVIEWMarket Nature Industries • Freight Transportation : • Network coverage in infrastructures.

• Food & Beverages INDUSTRY OVERVIEW Offered Parameters •Warehousing: 20.4% •Discounts Offered IN THE• CONSTRUCTION OF SEVERAL TRANSPORT & LOGISTICS INFRASTRUCTURE Competition Structure:Catered 68.8% KSA •The demand Air, Sea •andCustom Land Clearance • Stage of•Market Revenue%: • Clientele Catered • Retail for cold storages is Forwarding Market: 7.5% •Service Portfolio -•Freight Fragmented Freight • Import & Export Growth Stage • Warehousing: Discounts • Freight Transportation : 20.4% • Network• coverage in Offered • increasing Food & •Beverages KSA due to the rising Oil in & Gas •Value Added Services: 3.3% •ProductKSA Portfolio • Custom Clearance 68.8% • Freight Forwarding E-commerce Logistics • Competition Structure: • Service Portfolio • demand Retail • E-commerce for vaccines, meat, and INDUSTRY• OVERVIEW - Fragmented Market: 7.5% •Price Charged • Import & • Warehousing: 20.4% • Discounts • Export Warehousing • Offered Product Portfolio • other Oil & Gas perishable products.

• Pharmaceuticals KSA GOVERNMENT HAS ALREADY INVESTED HEAVILY IN THE CONSTRUCTION OF SEVERAL TRANSPORT • Value Added Services: • E-commerce Logistics • Freight Forwarding • Service Portfolio • Value Added Services • Price Charged E-commerce warehousing • Automotive &sector Spare is 3.3% SUCH AS PORTS, RAILWAYS, ROADS AND AIRPORTS. • •The Market: 7.5% EndParts User • Warehousing • Product Portfolio Type Services Competing User IndustriesType of Service Type of Services •ofExpress Services Offered • even Pharmaceuticals expected to boost by MarketEnd Nature • Value Added Services: Industries Offered • Value •Air, Added Services • PriceParameters Charged • Project CargoLand & moreFreight • Electronics Catered Sea and INDUSTRY OVERVIEW • e-commerce Automotive & Spare 3.3% companies opening Air, SeaServices and Land • Stage of Market Catered Revenue%: • Clientele Catered • • Express Parts and dynamic industry, strongly •Food & Beverages Clearance • •Custom The freight transportation segment has dominated the logistics industry of Saudi Arabia. The freight and logistics industry is atheir large fulfillment centers across Freight Growth Stage • Freight Transportation : • Network coverage in • Food & Beverages User infrastructures. supported by state-led investments in•Retail rail, maritime, road, logistics, End and airport • Project•Import Cargo & more • Electronics Competing & Export • Type Custom Clearance • Competition Structure: 68.8% KSA perishable products.

Saudi Service • ofThe demand for cold storages is increasing in KSA due to the rising demand for vaccines, meat, and other • RetailArabia. VAS is being popular Industries Parameters Fragmented •Oil & Gas •E-commerce Logistics Market Nature • •TheImport freight transportation segment has dominated the logistics industry of Saudi Arabia.

The freight and logistics industry is a large and dynamic industry, strongly • & The warehousing sector is even expected to boost by e-commerce companies 20.4% opening their fulfillment centersOffered across Saudi Arabia. VAS is being popular with allproviding companies VAS Export • Warehousing: • Discounts with allGascompanies • Oil & Catered Revenue%: • inClientele Catered supported by state-led rail, maritime, road,tologistics, and airport infrastructures. providing VASinvestments as part of their service portfolio give all possible services to their clients under one roof.

•E-commerce •Warehousing • Stage of Market E-commerce Logistics • Freight Forwarding • Service Portfolio as part of their service portfolio to • • •The demand for cold storages is increasing in KSA due to the rising demand for vaccines, meat, and other perishable products.

• E-commerce Freight Transportation : • Network coverage in • Food & Beverages Market: 7.5%their fulfillment •Pharmaceuticals •Value Added -Growth StageSaudi • •The warehousing sector is Services even expected by e-commerce companies opening centers across Arabia. VAS is beinggive popular with all companies Warehousing • Product Portfolio 68.8% KSA to boost all possible services to their • Pharmaceuticals • Retail Source: Frost & Sullivan Analysis TypeServices: of Services Competing providing VAS as part of their service portfolio to•Automotive give all possible services their clients under one roof.

• to Value Added & Spare Parts •Express Services • Competition Structure Market Nature Type of Service Value Added 20.4% Services • Price Charged • • Warehousing: • Discounts Offered clients under one roof.

Offered Parameters • Automotive & Spare • Oil & Gas 3 3.3% •Electronics •Project -Fragmented• Stage of Market Express ServicesCargo & more Parts Catered Revenue%: • • Freight Forwarding • Service Portfolio • Air, Sea and Land • Clientele

KEY FEATURES OF LOGISTICS - KSA

CS - KSA

KEY FEATURES OF LOGISTICS - KSA

Source: Frost & Sullivan Analysis • E-commerce Freight Growth Stage • Market: Project7.5% Cargo & more • Electronics • Product Portfolio • Freight Transportation 3 : • Pharmaceuticals • Value Added Services: • Custom Clearance • Competition Structure: 68.8% • Price • 3.3% The freight transportation segment hasCharged dominated the logistics industry of Saudi& Arabia. industry is a large and dynamic industry, strongly • Automotive Spare The freight and logistics - Fragmented Import & Export • Warehousing: 20.4% supported by state-led investments in rail, maritime, road, logistics, andParts airport•infrastructures.

• The demand for cold storages is increasing in KSA due to the rising demand for •vaccines, meat, Logistics and other perishable products.

E-commerce • Freight Forwarding • Electronics

• Network coverage KSA

JUNE•2021 23 Discounts Offered

• Service Portfolio

SAUDI ARABIA REPORT

Logistics Market MARKET Forecast FORECAST LOGISTICS LOGISTICS MARKET FORECAST Economic growth, population maturation, and rapid urbanization are the factors driving the saudi arabian ECONOMIC GROWTH, POPULATION MATURATION, AND RAPID URBANIZATION ARE THE FACTORS DRIVING THE SAUDI ARABIAN

ECONOMIC GROWTH, MATURATION, AND URBANIZATION ARE networks.

THE FACTORS DRIVING THE SAUDI ARABIAN government to investPOPULATION in the massive expansion of theRAPID country’s transportation GOVERNMENT TO INVEST IN THE MASSIVE EXPANSION OF THE COUNTRY’S TRANSPORTATION NETWORKS. GOVERNMENT TO INVEST IN THE MASSIVE EXPANSION OF THE COUNTRY’S TRANSPORTATION NETWORKS. Logistics market is expected to$60.68 reachbillion $60.68 byofthe end of 2024, driven by government initiatives trade and Logistics market is expected to reach bybillion the end 2024, driven bydriven government initiatives ininitiatives trade and in in Logistics market is expected to reach $60.68 billion by the end of 2024, by government trade and industry promotion, development of economic cities, infrastructure development, and economic diversification. industry promotion, development of economic cities, infrastructure development, and economic diversification. industry promotion, development of economic cities, infrastructure development, and economic diversification.

Transport and Logistics Sector Forecast, KSA, 2019 - 2024 Transport and Logistics Sector Forecast, KSA, 2019 - 2024 CAGR (2019-2024) 4.6 % CAGR (2019-2024) 4.6 %

60.68 60.68 48.37 48.37

2019 2019

Growth prospects for the Saudi Arabian logistics industry

2024 2024

*Note : Values are in current US dollars *Note : Values are in current US dollars

Growth prospects for the Saudi Arabian logistics industry look promising overthe theSaudi nextArabian five five years.

Economic Growth logistics look prospects promising forover the next years. industry Economic look promising over the next five years. diversification, policy reforms, tax regimes, and FDI diversification, policy reforms, tax regimes, andEconomic FDI policies diversification, policy reforms, tax regimes, and FDIencouraging policies are shifting in favour of favour an open and policies are shifting in ofeconomy an open economy areprivate shifting investment. in favour of The an open economy and encouraging advent of technology and the and encouraging private investment.

The advent private investment. advent of technology andcreating the nation’s vision onThe economic diversification are ofopportunities technology and the nation’s vision on economic nation’s vision on economic creating across several diversification industry sectorsare such as retail, opportunities industry sectors such as retail, diversification areseveral creating opportunities across several eCommerce,across healthcare, and other non-oil-based industries. eCommerce, healthcare, and other non-oil-based industries.

industry sectors such as retail, eCommerce, healthcare, and other non-oil-based industries.

Source : General Authority for Statistics & Frost & Sullivan Source : General Authority for Statistics & Frost & Sullivan

4

The governments deliberate effort to move away from oil and invest in other sectors will see a increase in goods movement to improve the other sector and infrastructure and can see a lot of investment 4

COURIER, EXPRESS, AND PARCEL (CEP) MARKET TRE

Freight Transportation Market Trends

A combination of factors is likely to transform the Economic to Arabia increaseis non-oil Theservices Courier,offerings Express,– And Parceldiversification (CEP) market efforts in Saudi fairly consolidated in nature. The orts to increase non-oil GDP, focus onGDP, developing knowledge based economy, increasing competition among the domestic and international service ststotoincrease increase non-oil non-oil GDP, GDP, domestic and international legs dominate the market accounting for more than 65-70% of the mark ternationalproviders, service providers, advances in digital technologies forcing the regional players to upgrade their technologies aligned with are global national rnationalservice serviceproviders, providers, Aramex, and Saudi Post theclients. top players. gned with global clients ed withglobal globalclients clients d with Road Transportation: For most of the industries the primary mode of transportation of goods is through the road hrough the ough oughthe the • E-commerce: It is onewhere of thepipeline major factors driving the market growth.

With higher connectivity ra network with the exception of oil & gas industry transportation is extensively used. Industries such ively used. ely ly used. used. working population, and advanced infrastructure, the country is one of the major markets in onlin as food & beverages, medical and pharmaceuticals etc. require temperature controlled facilities due to the nature ed facilities dfacilities facilities in Middle East.

As the e-commerce grows, the return deliveries also increase.

Currently, the rate o of their products, while other industries such as automotive, Engineering Equipment, and metals require huge over pment, and ment, ent, and and low in Saudi pertaining to the Cash on Delivery (COD) shipments, when compared to other countrie dimensional trucks for transportation.

Key Industries: Industries suchPickup as cement, metal,(PUDO): automotive and oil &points gas, and import/export oriented in the future. rt oriented • The Drop-off Collection arehighly expected to gain popularity oriented oriented industries such as oil & gas, chemicals, food & beverages, FMCG, engineering & industrial equipment, apparel , apparel & around 15% to 20% of the e-commerce orders are collected at a physical location operated by t apparel pparel && oving from & footwear depend on road transportation forpartners. moving cargo ports industrial centres oreasy moving fromcompanies. companies or their It alsofrom makes thetoreturn management for the ving ng from from production hubs to consumption hubs.

• transport International Arabia has been becoming an Sea Transportation: Sea is the Players: preferredSaudi mode of international transportation dueimportant to the bulkymarket nature for both dom ulky nature ky y nature nature international shipments with major companies entering and expanding networks in the ma e, which is of most industrial products, apart from being significantly economical when compared to air mode, which is used which whichisis international players are making strategic investments to establish a regional logistics networ based on criticality of shipments. opening of new distribution centers, smart warehouses, etc.

Key Drivers of Freight: Key drivers of freight include infrastructure development such as economic cities and free c cities and cities ties and and etail sector zones, economic diversification with focus on privatehas investment consumption sector growth. aligned w • Technology: Technology become and key domestic enabler for companiesretail to be competitively ail sector il sector are gaining Due to increase in domestics consumption, freight and last mile delivery in services arebusiness gaining have momentum. trends and dynamics.

Theforwarding logistics companies, especially the CEP to be considerate eregaining gaining Digital Technologies andthe New Business Models: Advancements in digitalcan technologies are expected to improve technological investments which otherwise make the business disrupted. to improve efficiency and affect traditional logistics business models leading to disruptions in service offerings and freight oimprove improve • Last mile delivery: It is challenging in Saudi as there are no postal codes/rarely used. Currentl and freight transportation solutions. Logistics start ups and technology adoption are expected to play key role in terms of nd d freight freight companies in Saudi Arabia regularly ask for landmarks rather than addresses, with drivers often interms termsofof transforming traditional business models with the support of digital technologies. terms of

WhatsApped locations.

Source: Frost & Sullivan Source:Frost Frost&&Sullivan Sullivan Source: 24 JUNE 2021

55

5

SAUDI ARABIA REPORT

WAREHOUSINGWarehousing MARKET market TRENDS trends WAREHOUSING MARKET TRENDS The warehousing industry is exhibiting healthy growth, with technological advances continuing WAREHOUSING The warehousing industry isMARKET exhibiting healthyTRENDS growth, with technological advances continuing to be a key driver. The rise of be a key driver.

The rise of with automation and value-added services to competitive The warehousing industry to is exhibiting healthy growth, technological advances continuing toattain be a key driver. The rise of

ENDS

The warehousing industry isservices exhibiting healthy growth, with technological continuing to be a keyoperate, driver. The rise to of a automation and value-added to attain competitive differentiation is advances changing the way warehouses leading automation and to competitive differentiation isisadvances changing the warehouses leading aa The warehousing industry differentiation isservices exhibiting healthy growth, with technological continuing be a keyoperate, driver.across The rise of is changing the way warehouses operate, atodynamic future theto KSA. automation and value-added value-added services to attain attain competitive differentiation changingleading the way wayto warehouses operate, leading to dynamic future across the KSA. dynamic across KSA. automation and value-added services to attain competitive differentiation changing the way warehouses operate, leading to a dynamic future future across the theis KSA. •Increased Warehouse Capacity: in government regulations and Pandemic have collectively dynamic futureEase across the KSA. • Increased Warehouse Capacity: Ease in government regulations and Pandemic have collectively influenced the warehousing demand in Saudi Arabia.

Prior to the pandemic, most manufacturers had •• Increased Warehouse Capacity: Ease in government regulations and have Increasedthe Warehouse Capacity: in government and Pandemic Pandemic have collectively collectively influence warehousing demandEase in Saudi Arabia. Priorregulations to the pandemic, most manufacturers had adopted leanthe manufacturing as a bestEase practice, with halt inregulations production andPandemic border closures there ishad a warehousing demand in Saudi Arabia.

Prior to the pandemic, most manufacturers • influence Increased Warehouse Capacity: in government and have collectively influence the warehousing demand in Saudi Arabia.

Prior to the pandemic, most manufacturers adopted lean manufacturing as a best practice, with halt in production and border closures there had is a adopted lean manufacturing as best with and closures there isisthe a increased pressure to have inventory monitored.

Warehouses need thisadditional additional capacity meethad influence the warehousing demand in practice, SaudiWarehouses Arabia.

Prior toproduction thethis pandemic, most manufacturers adopted lean manufacturing as aa inventory. best practice, with halt halt in in production and border border closures there increased pressure to have the need capacity totomeet thea increased pressure to have the inventory.

Warehouses need this additional capacity to meet the adopted lean manufacturing as a best practice, with halt in production and border closures there is a business friendly reforms and post-Covid challenges. increased pressure to have the inventory.

Warehouses need this additional capacity to meet the business friendly reforms and post-COVID challenges. business reforms and post-COVID challenges. increased pressure to have inventory.

Warehouses need this additional capacity to meet the business friendly friendly reforms andthe post-COVID challenges.

• Increased Use of Warehouse Automation: Because of COVID and business friendly warehouse reforms, businessUse friendly reforms andAutomation: post-COVID challenges.

•Increased of Warehouse Because of Covid and business friendly friendly reforms, •• Increased of Automation: Because of and business reforms, Increased Use Use of Warehouse Warehouse Automation: Because of COVID COVID business reforms, warehouse automation is set to gain a steady traction in the and coming years.,friendly ASRS can help automation is set toof gain a steady coming years., ASRS help warehouses labour automation isis set to gain aathe steady traction in the coming years., ASRS can help • warehouse Increased Use Warehouse Automation: Because of COVID and business reforms, warehouse automation settraction to gainin steady traction in thecan coming years.,friendly ASRSsolve can help warehouses solve labour challenges and manage unpredictable spikes in demand. challenges and manage unpredictable spikes demand. warehouses solve challenges manage unpredictable in warehouse automation is set to and gain a insteady traction inspikes the coming years., ASRS can help warehouses solve labour labour challenges and manage unpredictable spikes in demand. demand.

• Accelerated Growth of challenges eCommerce: market is spikes booming in KSA. While the COVID warehouses solve labour andE-commerce manage unpredictable in demand.

•• Accelerated Growth of eCommerce: E-commerce market isis booming KSA. While the COVID Accelerated Growth ofthe eCommerce: E-commerce market booming in infor KSA. thesurge COVID pandemic didn’t start eCommerce boom, it is certainly responsible theWhile recent in •Accelerated Growth of eCommerce: E-commerce is booming in KSA. While the Covid pandemic didn’t start the eCommerce boom, ititmarket isismarket certainly responsible for the recent surge in • pandemic Accelerated Growth of eCommerce: E-commerce is booming in KSA. While the COVID pandemic didn’t start the eCommerce boom, certainly responsible for the recent surge in demand because of lockdowns.

The sustained impact of increased eCommerce orders will change the didn’t start the eCommerce boom, it is certainly responsible for the recent surge in demand because demand because of lockdowns.

The impact increased eCommerce will pandemic didn’t start the eCommerce boom, it is of certainly responsible fororders the recent surgethe inof demand because of lockdowns.

The sustained sustained impact of increased eCommerce orders will change change the order profile of the warehouse significantly. lockdowns.

The sustained impact of increased eCommerce orders will change theorders orderwill profile of the order of significantly. demand because ofwarehouse lockdowns.

The sustained impact of increased eCommerce change the order profile profile of the the warehouse significantly. warehouse significantly.

• Increase in Cold Storage: Post discovery of COVID 19 vaccine there is growing need to store vaccines order profile of the warehouse significantly.

•• Increase in Storage: discovery of 19 vaccine there isis growing need vaccines Increase in Cold Cold Storage: Post Post of COVID COVID theregrowing growing need to to store store vaccines at a certain temperature and discovery coupled with one 19 of vaccine the fastest eCommerce sectors and aa certain temperature and coupled with one of the fastest growing eCommerce sectors and • at Increase in Cold Storage: Post discovery of COVID 19 vaccine there is growing need to store vaccines at certain temperature and coupled with one of the fastest growing eCommerce sectors and at consumption becomePost keydiscovery enabler for to be competitively aligned with market trends •Increase in Coldhas Storage: of companies Covid 19 vaccine there is growing need to store vaccines consumption has become key enabler for companies be competitively with market trends at a dynamics. certain temperature andcompanies, coupled one ofto the growingaligned eCommerce sectors and consumption hasThe become key enabler forwith companies to befastest competitively aligned with market trends and logistics especially in the CEP business have to be considerate a certain temperature and coupled with one of the fastest growing eCommerce sectors and consumption and The logistics companies, especially in the CEP have to considerate consumption has become key enabler for companies to competitively aligned with market trends and dynamics. dynamics.

The logistics companies, especially in be the CEP business business havedisrupted. to be be considerate regarding theenabler technological investments which otherwise can make the market business has regarding become key for companies to be competitively aligned with trends and dynamics. the technological investments which otherwise can make the business disrupted. and dynamics.

The logisticsinvestments companies,which especially in the havedisrupted. to be considerate regarding the technological otherwise can CEP makebusiness the business The regarding logistics companies, especially in the CEP business havecan to be considerate regarding the technological the technological investments which otherwise make the business disrupted. investments which otherwise can make the business disrupted.

Source: Frost & Sullivan Source: Source:Frost Frost&&Sullivan Sullivan 6 66 Source: Frost & Sullivan

KSA has opened its doors for tourism and is promoting religious tourism, with this initiative there will be a lot of influx of people and demands a seamless airport transfers.

6

Courier, express, and parcel (cep) market trends

e top five players in both the ket share. SMSA Express, DHL,

The Courier, Express, And Parcel (CEP) market in Saudi Arabia is fairly consolidated in nature. The top five players in both the domestic and international legs dominate the market accounting for more than 65-70% of the market share. SMSA Express, DHL, Aramex, and Saudi Post are the top players.

ates, young ne retailing of returns is es in region.

•E-commerce: It is one of the major factors driving the market growth. With higher connectivity rates, young working population, and advanced infrastructure, the country is one of the major markets in online retailing in Middle East. As the e-commerce grows, the return deliveries also increase. Currently, the rate of returns is low in Saudi pertaining to the Cash on Delivery (COD) shipments, when compared to other countries in region.

Currently, the courier

•The Pickup Drop-off (PUDO): Collection points are expected to gain popularity in the future.

Currently, around 15% to 20% of the e-commerce orders are collected at a physical location operated by the courier companies or their partners. It also makes the return management easy for the companies.

mestic and arket. The rk, such as

•International Players: Saudi Arabia has been becoming an important market for both domestic and international shipments with major companies entering and expanding networks in the market. The international players are making strategic investments to establish a regional logistics network, such as opening of new distribution centers, smart warehouses, etc.

with market e regarding

•Technology: Technology has become the key enabler for companies to be competitively aligned with market trends and dynamics. The logistics companies, especially in the CEP business have to be considerate regarding the technological investments which otherwise can make the business disrupted.

ly, delivery requesting

•Last mile delivery: It is challenging in Saudi as there are no postal codes/rarely used. Currently, delivery companies in Saudi Arabia regularly ask for landmarks rather than addresses, with drivers often requesting WhatsApped locations.

Source: Frost & Sullivan 8

JUNE 2021 25

SAUDI ARABIA REPORT

Value added service market trends

ss environment and drive automation it has erentiate themselves from others.

With the advancement of technology, the government initiative to reform the business environment and drive automation it has become easier to provide many value added services by the vendor and differentiate themselves from others.

G, Pharma sportation ouse and

•Cold Chain: Product’s requirement such as processed food, dairy, meat, poultry, FMCG, Pharma (especially Covid vaccines) has increased, thus, both reefer storage as well as transportation demand are increasing and will see an increased number of cold storage warehouse and transportation.

bined with ; Door to electronic on advice, dation. All

•Groupage Services: These services provide clients to an optimum level of services combined with accurate speedy customs clearance and documentation. Groupage services include; Door to Door freight forwarding services, Computerised order tracking facilities, Customised electronic customs clearance and documentation, Export consolidation services, Tariff Clarification advice, Import de-consolidation services, Worldwide NVOCC services, Priority deconsolidation. All these services are being bundled in by vendors.

rvices to is difficult mand for

•Warehouse VAS: Vendors in KSA market provide multiple value-added services to customers, including packaging and kitting, inventory management and others which is difficult to maintain during in-house warehouse operations thereby, accelerating the demand for warehousing on lease and rent on 3PL basis.

e services, the future

•Customs Clearance: Most of the vendors have started to provide customs clearance services, Customs clearance will be one of the most value generating value added service in the future especially in the ports as there is a lot of dependency on the marine transport.

Source: Frost & Sullivan

With many initiatives under Vision 2030, one can see technologies 7 adopted in particularly in the 13 focused sectors; which ranges from warehouse automation to port modernization.

Logistics trends: economicECONOMIC diversificationDIVERSIFICATION LOGISTICS TRENDS: Public investment fund (pif ) program endeavours to develop the kingdom’s wealth by contributing

PUBLIC INVESTMENT FUND (PIF) PROGRAM ENDEAVOURS TO DEVELOP THE KINGDOM'S WEALTH BY CONTRIBUTING TO NON-OIL GDP to non-oil gdp growth & investing ACROSS opportunities across diversified sectors.

GROWTH & INVESTING OPPORTUNITIES DIVERSIFIED SECTORS. Shifting Focus of KSA Economy Shifting Focus of KSA Economy PIF on13 13sectors sectors part ofcore its core domestic strategy PIFwill willfocus focus on as as part of its domestic strategy

Transport & logistics Entertainment, leisure & sports Telecoms, media and technology

•Localize Cutting-Edge Technology through the PIF •

Food & agriculture

Financial services

• •

Healthcare Metals & mining

Construction, Building components & services

Major Manufacturing Sub-sectors

Grow the assets of the PIF •Grow the assets ofthe the Unlock New Sectors through PIFPIF Build•Unlock Strategic Economic Partnership throughthe the PIF PIF New Sectors through Localize Cutting-Edge Technology through the PIF •Build Strategic Economic Partnership through the PIF PIF Targets by 2025

Consumer goods & retail

OIL BASED ECONOMY

• • • •

Real estate Aerospace & Defense

Automotive

Major Manufacturing Sub-sectors

Utilities & renewables

PFI mission, under Vision 2030, is to establish itself as one of the world’s largest sovereign wealth funds by 2030,

PIF under Visionenable 2030, to establish itself as one that of drives the be a mission, global investment powerhouse, the is creation pf new sectors & opportunities economic transformation of KSA the world’s largest sovereign wealth funds by 2030, be a global investment powerhouse, enable the creation pf new sectors & opportunities that drives the economic transformation of KSA.

• • • •

PIF Targets by 2025 •More than SAR750 billion •Assets Under (Approximately USD200 Assets Under Management (AUM) to reach over USD1.07 trillion by end of 2025 (AUM) to Management billion) of local investments Aim to invest at least SAR150 billion (approximately USD40 reach USD1.07 cumulatively by 2025 billion) in theover local economy bytrillion 2025 endaccumulated of 2025 contribution of USD320 •PIFbillion andtoits portfolio Aim by for the non-oil GDPto invest at •Aim companies to contribute More than SAR750 billion (Approximately USD200 billion) least SAR150cumulatively billion by 2025 60% of local content of local investments (approximately USD40 PIF and its portfolio companies to contribute •Increase 60% of localof assets in content billion) in the local new and promising Increase of assets in new and promising sectors to 21% economy by 2025 sectors to 21% Aims to create around 1.8 million jobs (direct and indirect) •Aim for the accumulated •Aims to create around by 2025 contribution of USD320 1.8 million jobs (direct and Source: PIF SA & Frost & Sullivan Analysis billion to non-oil GDP indirect) by 9 2025 All editorial input provided by Frost & Sullivan

26 JUNE 2021

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SAUDI ARABIA REPORT

Logistics and Supply Chain sector in high gear in Saudi Arabia Kingdom announces stimulus of US$ 1.3tn to jumpstart the economy

A

s the Crown Prince seeks to prepare the Kingdom’s economic future, HRH Mohammed Bin Salman Bin Abdul-Aziz Al Saud has laid out a road map for the country dubbed ‘Vision 2030’.

The plan aims to transform Saudi Arabia by liberalising social norms and improving government services whilst reducing the dependence on oil income which has been the mainstay of the economy over the past several decades.

Global Supply Chain spoke exclusively to J Sivan, Senior Consultant, Supply Chain &

28 JUNE 2021

Logistics Practice, Frost & Sullivan on the state of the logistics and supply chain industry in Saudi Arabia.

Global Supply Chain (GSC): Briefly, how would you characterize the state of the current Saudi Arabian economy?

J. Sivan (JS): Covid-19 and the plummeting oil prices are weighing down the Saudi Arabian economy. With the advent of the pandemic, the demand for petroleum products has further reduced due to lack of movement on account of lockdowns in countries worldwide.

Regional tourism has been

drastically affected. However, with the Vision 2030 and National Development Program, the government has made efforts to reduce the dependency on oil, diversify its economy, and has an ambitious plan on infrastructure development, which has fuelled the growth of many industries even in times of crisis. Especially the supply chain and logistics industry is out in high drive in connecting resources for infrastructure development.

GSC: The Saudi economy has been negatively impacted by a double whammy—the plummeting of oil prices /

SAUDI ARABIA REPORT

revenues and the onset of the coronavirus pandemic.

What implications does this have for the Kingdom’s economy in real time and what is your assessment of the same?

JS: National and regional lockdowns, a slowdown in customs clearance, Covid-19 related restrictions on border crossings have affected economic and trade activities. However, stimulus measures and other government support programs helped the revival of growth in H2-2020.

On the positive front, disruptions in the supply chain have accelerated growth in automation and digital transformation of government entities and private enterprises. It helped build a stronger ecosystem for start-ups, enterprises, and government, thereby providing more employment opportunities and increasing the demand for skilled manpower.

GSC: Covid-19 is now a global phenomenon. Relatively speaking, how much of a fallout has the pandemic had on Saudi Arabia had vis-a-vis other regional neighbours and countries?

JS: Covid-19 undoubtedly is a global phenomenon, and as explained, Saudi Arabia was reeling through the same effects as all the GCC countries, which primarily depend on oil as their main source of revenue.

Like Saudi Arabia, all the other GCC countries are trying to diversify their economies and move away from oil-based economies. They are competing against each other to be the regional hub of business in GCC. Out of all the counties in GCC, UAE is least dependent on oil, but impacted, as it is dependent on tourism which was hit heavily.

J Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan

Saudi too has been hit; if one considers the magnitude of investments done by it in the infrastructure sector. It is now challenging to mobilize resources for construction amidst lockdowns and border closures. The cost of completing the project has now increased. With limited manpower, it is now taking more time to complete the project.

GSC: As things stand currently, what are the key takeaways and highlights of the Saudi economy?

JS: Reforms introduced as part of the national development vision played an important role in navigating challenges resulting from the pandemic. Government stimulus measures to support the private sector, labour market reforms that contributed to increased female labour force participation are some of the factors expected to contribute to revival of economic growth.

Gradual relaxation of containment measures and National vaccination drive, which began in Dec 2020 is expected to cover 70 percent of population by end 2021 and is likely to positively impact investor confidence. Nonoil growth, which declined by 2.3 percent in 2020 is expected to increase by 3.9 percent in 2021.

GSC: Where are the new

opportunities and challenges for investment in Saudi Arabia and which sectors hold the most promise and potential?

JS: With the extent of development in infrastructure development, construction is one sector that holds promise. At the same time, there is much emphasis on modernization, so the digital sector and construction are the two broad sectors with immense prospects and potential.

Keeping construction and digitization in mind, the opportunities can be seen in the fields of airport expansion and digitization; seaport expansion and modernization; building economic zones and smart cities; warehouse and fulfillment centre expansion and automation; road and rail infrastructure development; e-commerce and last-mile delivery and freight forwarding and transportation.

The construction industry in Saudi Arabia is in full swing, and it demands a huge amount of heavy construction materials and machinery.

GSC: Saudi Vision 2030 has been the logistics and supply chain and transportation infrastructure the centerpiece of the Kingdom’s economy….comment please.

JS: Logistics and supply chain is not only the centerpiece of Saudi Arabia; it has become the core sector to develop for the entire GCC countries primarily due to the location. GCC is right in the middle of the three continents connecting Asia, Europe, and Africa. This has pitted countries of GCC against each other to become the logistics hub of the region.

JUNE 2021 29

SAUDI ARABIA REPORT

Saudi Vison 2030 targets to increase the share of FDI in GDP from 1.7% in 2019 to 5.7% of GDP by 2030.

Apart from the geographic location, Vision 2030 has brought in a lot of reforms and economic diversification. The construction industry in Saudi Arabia is in full swing, and it demands a huge amount of heavy construction materials and machinery be transported to the construction site.

Further, with Saudi opening its doors for tourism and increasing the capacity of visitors for Umrah is bringing to the fore a new set of challenges. All of these developments call for appropriate logistics infrastructure, and the Saudi government recognize that logistics is the lifeline for all developments and has given the most importance to logistics and supply chain.

GSC: How significant is the logistics and supply chain industry to Saudi Arabia, the region’s biggest economy?

JS: Saudi is not only the region’s biggest economy, it is also the country that is connecting all the countries in the GCC together.

Most of the cross-border trade happens through the road and Saudi. With all the developments

30 JUNE 2021

happening in Saudi, logistics is the sector that can accelerate realizing Saudi’s Vision 2030.

Furthermore, the changing consumption pattern and buying behaviour of the most populous country in GCC requires a robust yet modern logistics and supply chain sector to support the demand.

GSC: There has been substantial investment in the Kingdom’s seaports / airports / transportation sector. What are the repercussions of these moves?

JS: Optimization of these invested resources is the main hurdle facing Saudi Arabia. With Covid-19, most of the sea and airports are operating at sub-par capacity. At the same time, all countries in GCC are pegging to become the logistics hub for the region. This will pose a serious challenge to the return on investments (ROI) as the demand gets distributed with regions competing against each other.

However, in the coming years, when the world recovers from the pandemic and when operations go back to normal, Saudi will reap the benefits of investing in the logistics sector. The utilization rate of these resources with all the countries investing in the logistics sector in GCC will be lower than the optimum level.

GSC: Based on current trends

and economic indices, what is your / Frost & Sullivan prognosis for the Saudi economy and the logistics and supply chain sector for 2021-2022?

JS: Saudi Economy as a whole will benefit from the global rebound from the pandemic. Slowly the oil demand is rising.

Logistics and supply chain sector predictions are as follows: There will be a considerable amount of investment in the warehouse sector, both related to expansion and automation. As more companies are making their supply chain resilient, the inventory of goods is going to increase.

Due to e-commerce demand in Saudi, the last mile delivery will see a major transformation in the coming years.

The construction industry will be the major driver for port modernization as most of the goods for the construction industry come through seaport.

Cold chain logistics will pick up mainly due to vaccine distribution, and change in local consumption will drive the cold chain logistics (groceries, vegetable, fruits, and dairy) In 2021, Saudi has slowly started accepting visitors on regional tourism, the number won’t be as high as it was pre-Covid, but one can expect the figure to go up in the coming years.

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HELLMANN WORLDWIDE LOGISTICS

Saudi Arabia at the forefront of Hellmann’s growth Following substantial investments, Hellmann Worldwide Logistics expects considerable organic growth in the Kingdom

F

ollowing its foray into Saudi Arabia in 2013, Hellmann Worldwide Logistics has since made deep inroads into the Kingdom, with a good track record and an expanded workforce.

Global Supply Chain conducted an exclusive interview with Lars Nielsen, Managing Director, Hellmann Worldwide Logistics, Saudi Arabia, who spoke expansively about the company’s origins, growth over the span of eight years since its inception and outlook for the future.

Global Supply Chain (GSC): Give the sense of the scale and size of Hellmann Worldwide

32 JUNE 2021

Logistics’ operations in the Kingdom of Saudi Arabia and for how long has the company been functioning there?

Lars Nielsen (LN): We opened our first office back in 2013 on a very small scale and I recall personally getting involved in operations, which back then only consisted of only one person.

We have grown exponentially since then and currently employ more than 150 people covering 12 locations kingdom-wide with concrete plans to more than double the number of employees by 2022.

GSC: How significant is Saudi

Arabia for Hellmann?

LN: Saudi Arabia is still at early stages for Hellmann when compared to its potential, but we see Saudi Arabia as one of our key drivers for growth within the Middle East and North Africa region.

GSC: What is the scope of service offerings to your Saudi clients and what industry verticals do these represent?

LN: We cover the full range of freight forwarding services from global logistics to local handling and in our CLC (Contract Logistics & Consulting) business unit we complete our clients’ supply chain

HELLMANN WORLDWIDE LOGISTICS

Lars Nielsen, Managing Director, Hellmann Worldwide Logistics, Saudi Arabia.

with warehousing, value-added services and last-mile distribution.

We do business with all industries but with a strong focus on healthcare, automotive, FMCG and latest within e-commerce too.

GSC: How did you fare in 2020, Q1-2021 and what is your assessment for 2021?

LN: Growth was in line with budget, and I expect 2021 to exceed expectations and previous years’ results.

GSC: Tell us more about your recent JVs in the Kingdom?

LN: At this stage we have signed a MoU to explore a potential formation of a JV specialized in

Healthcare Logistics within KSA and we are working on the details to make this a reality in near future.

A dedicated entity for Healthcare Logistics in KSA will be unique and the first of its kind where combining local and international capabilities will make us market leaders overnight in a market demanding international quality standards and kingdomwide coverage.

GSC: What are the opportunities and challenges for Hellmann in KSA going forward?

LN: We have a clear path laid out wherein we expect to capitalize

on the known opportunities in our industry, but the biggest opportunity is the fact that we operate in a country going through massive changes at a continuously increasing pace.

The ability to foresee the impact of these changes will become the biggest opportunity for Hellmann in Saudi Arabia and we are constantly aligning with senior stakeholders to ensure we will be first movers and stay ahead of competition.

Most challenges can be converted to opportunities and this is especially true when it comes to change in Government

JUNE 2021 33

First People First!!

People will be a priority always.

A successful recipe to build the relationship of our business today.

HELLMANN WORLDWIDE LOGISTICS

regulations where our relatively flat organization remains agile and adaptable.

GSC: What are your expansion plans for the short- and longterm futures?

LN: We expect a significant organic growth as we have invested heavily into Customer Service and Account Management bringing us to, and above, the level our customers expect from us. However, we are always on the lookout for new ventures, so time will tell.

GSC: Saudi Vision 2030 has made the logistics and supply chain and transportation infrastructure the centerpiece of the Kingdom’s economy…. how will it boost the logistics sector in the country.

LN: The effect of Government initiatives is already having a significant impact in for example Customs and various industry regulatory bodies. Processes are automated, inspections routines change, product registration process is simplified and many more – all this creates a more agile logistics eco system where the end result is cost savings and increased service levels for our customers.

Years ago, Saudi Arabia stated

34 JUNE 2021

its intentions to improve its ranking on the Logistics index and there is action behind those words – we can see the change all around us and there is no doubt in my mind that Saudi Arabia is becoming increasingly important in the regional and perhaps global logistics landscape.

GSC: There has been substantial investment in the Kingdom’s new seaports / airports / transportation sector. What are the repercussions for the logistics sector of these moves?

LN: Improved service levels, higher safety standards and a large range of new solutions, just to name a few. However, I believe the most significant of them all is the investment into Free Zones all over the Kingdom and they are rapidly becoming a reality in Saudi Arabia.

This comes with a wide range of benefits for the customers here and most likely also for the region and in particular North Africa / Red Sea. GSC: What is your vision for Hellmann in Saudi Arabia going forward?

LN: First People First!! People will be a priority always. We will continue to put our customers, vendors and our own employees first as this has proven a successful recipe to build the relationship on which our business is based today.

Hellmann will cement its position as a household name for 3PL services and continue to expand our service offerings in specialized industry verticals.

Our current growth trajectory is incredibly steep, and we are still only at the beginning of the curve so I definitely envision that we expand our position as market leaders. n

TURKISH CARGO

Turkey’s national flag carrier pays rich tributes to cargo personnel and frontline freight staff Unprecedented move by Airline to laud the efforts and reward the dedication of its employees

Turkish Cargo has paid glowing tributes to the remarkable work of the teams in the trenches. In a first person narrative, the carrier has heaped recognition, respect and admiration for a section of its key team members.

I

n an affirmation of its faith in the abilities and commitment of its dedicated workforce, Turkish Cargo has upped the ante and moved to publicly thank them for their services and steadfastness.

Despite the difficulties and challenges facing in this period of unprecedented pandemic crisis, Turkish Cargo is highlighting the essential nature of handling and handling teams, without whom air freight forwarding would quite simply be impossible.

Turkish Cargo like many other airlines is doing everything they can to offer more capacity: increasing

the number of all-cargo flights, converting passenger flights into freighters, demonstrating greater flexibility, and more–which makes handling agents vital players in ensuring the continuity of the supply chain. Without them, it would be impossible to receive and load cargo, which in turn would also make air freight forwarding impossible.

This remarkable work not only plays a crucial role in transporting goods, it also ensures the continuity of the supply chain and maintains the air freight ecosystem on which all stakeholders are totally interdependent.

JUNE 2021 35

TURKISH CARGO

Meet the Silent Heroes of Turkish Cargo Operations!

Offering services to 127 countries and being the fastest-growing air cargo brand around the world, Turkish Cargo has been carrying out the air cargo transportation operations under the favor of talented colleagues.

In these operations, there are really important occupational groups from pilots to loadmasters.

Turkish Cargo tells about a working day for each occupational group in the cargo with these short films. Let’s get to know them all together!

The carrier’s ‘Explosive Detection’ Dog ASKA and her Handler SEZER are a great team!

Sezer says that it is a very serious responsibility to ensure security in a system where tons of cargos are transported all over the world every day. He also feels lucky to be partners with Aska.

36 JUNE 2021

TURKISH CARGO

Customer Service Officer TUBA YILMAZ! She works at Cargo Customer Services Department. Her job is to coordinate for solutions with our domestic and international stations in line with the demands of our customers and to inform them 7/24 without interruption.

How do we follow the flight process of a freighter?

Our Operation Control Officer Oğuzhan and his team monitor the process of a freighter from pre-flight to the completion of the flight, from start to finish.

JUNE 2021 37

The Talented Loadmaster KORAY! Safe transportation of cargo from one point to another in the air cargo industry requires high mathematical knowledge, hard work, rapid analysis and evaluation skills. Loadmasters are responsible for all these processes in a cargo plane.

ULAS BERK BAYRAMOGLU, one of the Turkish Cargo Pilots!

His profession means everything to Pilot Ulas Berk Bayramoglu, at Turkish Cargo delivering world’s needs to its every corner.

38 JUNE 2021

TURKISH CARGO

MEHMET TUNCER, a Turkish Cargo Check-in Specialist Punctuality and a smooth operation is of utmost importance at Turkish Cargo.

Mehmet Tuncer, works as a Check-in Officer.

Turkish Cargo Performing air cargo operations to more than 300 destinations, 96 of which are the cargo destinations, Turkish Cargo operates with the fleet of Turkish Airlines consist from 363 aircraft, 25 of which are dedicated freighters, at its hub in Istanbul, where connects the continents with its strategically unique position.

Turkish Cargo, the fastest growing and developing air cargo brand of the world, aims to become one of the top three air cargo brands in the world. n

JUNE 2021 39

SUPPLY CHAIN AS A SERVICE

Outsourcing Supply Chain Services: A growing industry trend

Increasingly, more and more companies are gravitating towards external contracts for supply chain systems and process implementation. Outsourcing SCaaS is now the new normal with multiple services providers available for every supply chain operation affirms Irene Sutton, CEO, Innova Supply Chain—Editor.

W

hen it comes to adoption of ‘Supply Chain as a Service’ (SCaaS) is not a question of ‘if’ but rather ‘when’.

The well-known concept of Software as a Service (SaaS) is, according to Wikipedia, ‘a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted’.

SaaS is also referred to as ‘On-Demand’ Software. The concept relates to an outsourcing

40 JUNE 2021

of an organisation’s software and technology needs, such as ERP (Enterprise Resource Planning), TMS (Transport Management System), CRM (Customer Relationship Management) and more. Beyond just software, virtually every other aspect and function of Supply Chain is available as an outsourced, ondemand service, in short, Supply Chain as a Service.

Supply Chain as a Service (SCaaS), is both an old and new concept and projected to reach

US$ 7,854.40mn by 2025. The growth of SCaaS is driven by both the rise in consumer expectations and the growth in mobile devices and improved global connectivity.

Outsourced services A multitude of companies, locally and internationally, offer an outsourcing service for some portion of your Supply Chain processes. Organisations can outsource their Manufacturing, Distribution, Procurement,

SUPPLY CHAIN AS A SERVICE

solutions to manage, control and optimise services.

We have been moving into the age of the Digital Supply Chain for some time now, and to leverage all available technologies in the future, most companies will not have the expertise, resource, and funding to try to do this on their own and will need to outsource.

Digital supply chain advantages

The future for SCaaS means finding service and solution partners that will become more than just suppliers but will provide a trusted partnership. Solutions that align an organisation’s internal strategy with market developments and effective software services will make the difference between market leaders and those destined to only follow. n

The advantages of moving to a Digital Supply Chain includes end to end global connectivity, improved productivity, lower cost, greater service, heightened flexibility and adaptability, scalability and better asset management.

Despite the advantages of embracing Supply Chain as a Service there are barriers to adoption.

Many organisations have concerns around control of processes or data, lack of industry or in-house knowledge, impact on the workforce and of course return on investment.

It’s also important for organisations to ensure they are ready to outsource and apply new technology. ‘Any automation applied to an inefficient operation will magnify the inefficiency’ affirms Microsoft’s founder Bill Gates.

Dell experience Logistics, Accounts Payable, Transportation Management, Systems and more.

As we outsource key parts of the business operations, we need to maintain awareness of service levels and utilise supply chain digital solutions to achieve a competitive advantage.

Management of service providers and visibility of the supply chain operations need digital solutions and so the supply chain evolves again and Supply Chain as a Service becomes about

When I worked at Dell Computers almost 30 years ago it was my first experience of any company outsourcing a key part of their operation, I saw huge corporations and government entities trusting an outsider with their technology needs and strategy.

At that time it was easy to see that it made sense to trust the manufacturer of the product to understand that product best and to understand how that product would meet the needs of the business.

Irene Sutton is CEO, Innova Supply Chain, a Dubai-based international consultancy team providing specialist knowledge in Integrated Procurement, Supply Chain and Logistics.

Irene is a dedicated business executive with more than 25 years of experience. She has been in the Middle East since 2005, focused on the U.A.E. and Saudi Arabia.

Irene’s Supply Chain and Logistics business experience includes management roles in companies including Dell, Oracle, AT&T, i2 Technologies and DHL and sectors including HiTech, Logistics, FMCG, Telecoms and Oil & Gas.

JUNE 2021 41

BITO

BITO-Lagertechnik Bittmann is launches a new product LEO Custom LEO custom is the mobile robot that optimises manufacturing logistics

LEO custom is the latest addition to the LEO Locative AGV range from BITO-Lagertechnik Bittmann. This variant can be customised by adding different build-ups to suit your products and processes.

I

n 2017, BITO-Lagertechnik launched LEO Locative, a driverless transport vehicle for moving bins and cartons in production facilities, warehouses and distribution centres. The LEO AGV can be integrated into any operational process, it is particularly user-friendly and there is no need for a dedicated WLAN and IT connection, the manufacturer revealed in a press statement.

The new LEO custom vehicle offers the same advantages and, on top of this, construction allows adding build-ups on top to suit special product requirements, thereby widening the field of possible applications, the press communiqué continued.

Automated material handling in production and distribution settings This robust, self-guided vehicle is ideal for automating material handling in manufacturing environments. LEO custom has stood the test in the automotive industry, where bulky single parts and components such as car seats or wings need to be moved to the work places.

42 JUNE 2021

In another application, LEO custom will bring trolleys loaded with supplies to the assembly stations and return empty trolleys to the re-fill point.

LEO custom handles material flows in your warehouse The LEO AGV manages recurring transport tasks in e-commerce warehouses. LEO custom bring picking trolleys and clothes racks to the picking area while assigning workforce to different tasks. LEO custom also returns empty trolleys or racks to the warehouse.

LEO custom can be used as a mobile buffer stock The LEO AGV is not only great for moving items from A to B. On its way from one production step to the next, LEO custom serves as a mobile intermediate store. As a result, manufacturing areas are not cluttered or even blocked by goods.

LEO vehicles allow to bridge the time span between two production steps and to realise Just in Time (JIT) delivery to the next workstation. With the help of LEO custom, the JIT concept can

be taken to the next level: Just-InSequence (JIS).

Supply Pattern In line with this supply pattern, the right products are supplied in the required quantity, at the right time, to the right place and also in the right order (sequence).

Parts and components needed for production are delivered just in the sequence they are needed.

Ideally, the person assembling the components does not have to choose the right part from a pool of parts, but merely picks the next part in the supply queue for assembly.

Another good use of LEO custom is to use the travel time between two processes as drying or curing periods, thereby

BITO

decoupling production processes.

LEO custom is an alternative to conventional conveyors Installing a fixed conveyor lane means that available floor space is occupied and work areas are divided. This is why car manufacturers have been looking for alternatives to this efficient but inflexible technology. LEO custom does the same job without blocking space and is just as reliable in transporting supplies.

LEO custom can also be used to accompany an entire operational process. Depending on the production process and the products to be transported, the vehicle provides small parts

and components along the entire manufacturing route.

Benefits of LEO custom Like LEO Locative, LEO custom is an AGV solution that is very easy to install and to operate. It is immediately ready for use and easy to navigate. LEO simply follows the tape path on the floor, giving complete flexibility to reconfigure by simply pulling up the tape and relaying new routes. Build-ups offer the same degree of flexibility: they can be easily adapted to the needs of the operational process.

No wireless local area network (WLAN) or other IT infrastructure is required to operate the transport system. The AGV solution runs on lithium batteries and is charged at

an automatic charging station.

LEO custom can be called to the workplace at the touch of a button.

LEO custom combines performance and ergonomics with a very good price-performance ratio and has an ROI of less than one year. n

JUNE 2021 43

SUSTAINABILITY

DP World’s UK Port & Logistics hub customers to benefit from Intermodal container trains

D

P WORLD in the UK recently announced that its two deep-water ports at Southampton and London Gateway became the first in the country capable of handling Freightliner’s new 775 metre intermodal container trains, further cementing the critical role of the smart logistics hubs in Britain’s international supply chain.

The longest in use on the national rail network, the new 775 metre trains are 250 metres longer than a typical freight train and carry between 12 and 14 additional containers on each service, generating significant cost and environmental benefits for customers transporting goods to and from the ports.

The trains, which are the length of more than seven football pitches, depart the freight rail terminals at Southampton and London Gateway every working day of the week to Manchester, Birmingham and Leeds respectively carrying a range of goods.

Beneficial to customers “I am delighted that our customers at both Southampton and London Gateway will be the first

44 JUNE 2021

The trains depart the freight rail terminals at Southampton and London Gateway every working day of the week in the country to benefit from the increased productivity and efficiency of these new 775 metre trains,” affirmed Ernst Schulze, Chief Executive, DP World, UK. Both ports already have a high degree of rail interconnectivity, with Southampton having the highest proportion of containers moved by train in the UK at more than 30 per cent and London Gateway aiming to achieve similar levels, according to a press statement.

“The emphasis on rail across both ports takes 300,000 trucks off UK roads each year, bringing significant environmental benefits and we expect this number to continue to grow. Our aim is to be a partner in our customers’ business success, providing fast, reliable and flexible links to international supply chains and markets,” added Schulze.

“We very much welcome the capability to run 775 metre services from DP World’s deepwater ports at Southampton and

London Gateway,” asserted Eddie Aston, Chief Executive Officer for Freightliner and parent company Genesee & Wyoming’s UK/Europe Region.

Environmental gains According to Schulze, running container train services at 775 metres not only improves the productivity and efficiency of rail freight but has significant environmental gains.

The three daily roundtrip 775 metre intermodal trains that Freightliner is currently running from the Port of Southampton will collectively save over four million road miles and 9,500 tonnes of carbon emissions (CO2e) per year, further contributing to the government’s commitment to bring all greenhouse gas emissions to net zero by 2050,” he added.

Earlier this year the Government awarded freeport status to DP World Southampton (as part of Solent Freeport) and DP World London Gateway (as part of Thames Freeport), positioning the two smart logistics hubs to continue supporting regional growth across ports, warehousing and manufacturing for decades to come. n

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SSI SCHAEFER

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ievi, a leading manufacturer of safety and occupational footwear in Northern Europe, has commissioned SSI Schaefer to extend its existing warehouse located in Sievi, Finland in 2021. The footwear manufacturer supplies its products to the local market,

Sievi invests in an automation solution from SSI Schaefer to benefit from industry growth A scalable and sustainable solution to store raw materials and finished products in one single warehouse and production site but also exports to more than 40 countries worldwide.

Always looking for future-proof solutions, innovation and spurred by industry growth, Sievi felt the need to invest in warehouse automation. Sievi’s main goal is to enable fast and seamless delivery of its 200 SKUs (Stock Keeping Units) to the customers, as well as to accommodate future development plans for the expansion of production and storage capacities.

To serve these needs, SSI Schaefer will provide a sustainable extension of the existing system that will double the overall performance per hour and increase storage locations by more than 60%.

The initial Sievi system was completed by SSI Schaefer in 2009.

This previous cooperation, the scalability of the existing solution and the flexible WAMAS software

by SSI Schaefer formed a great basis for this ongoing partnership.

“Since Sievi is a market leader in their field and one of the most well-known brands in Finland, it feels great to continue the cooperation with a company with strong values and dedication as a family-owned business, as we are.

We are looking forward to being

46 JUNE 2021

part of this future expansion of Sievi”, affirmed Michael Hillström, General Manager, SSI Schaefer in Finland and Sweden.

Sustainable extension for maximum performance and storage capacity To meet the performance requirements, SSI Schaefer will implement a solution for more efficient sequencing processes between the automated miniload system and packing stations. The six existing packing lines will be deinstalled and six new packing lines will be implemented in a different location.

In addition, a total of six sequence towers will be installed in front of the packing stations, offering various buffer storage locations that are connected by lifts. Bins and cartons that are retrieved from the automated miniload system can be therefore efficiently buffered and conveyed to the packing stations in the required sequence.

To avoid stock shortage, a new high-bay warehouse with four SSI Exyz storage-retrieval machines will be implemented. The SSI Exyz machines will handle pallets with raw materials as well as semi-

finished products.

Scalable and sustainable solution Furthermore, the automated miniload system for the storage of shoe cartons will be extended by three aisles. This scalable and sustainable solution enables Sievi to store raw materials and finished products in one single warehouse and production site.

After goods-in, raw materials and semi-finished products will be stored in the new high-bay warehouse and conveyed to the production area as required.

Afterwards, finished products are stored in the automated miniload system.

Shoe boxes are conveyed to the sequence towers, where they are buffered and conveyed to the packing stations in the right sequence using lifts and the conveying system. At the packing stations, the shoe cartons are packed according to customer orders. After labelling they are conveyed to the goods-out area and delivered to retailers with order sizes varying from one to 2,000 cartons.

The project is expected to go live in December 2022. n

COMMERCIAL VEHICLES

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he College of Science and Engineering (CSE) at Hamad Bin Khalifa University (HBKU), Doha-Qatar recently signed a research collaboration agreement with Gulf Warehousing Company (GWC), the leading logistics and supply chain solutions provider in Qatar and one of the fastest growing companies in the region.

Combining their expertise and resources, HBKU-CSE and GWC will collaborate to promote impactful and innovative research and development (R&D) in the fields of engineering, technology, and sciences with a special emphasis on logistics and supply chain management.

The outcomes of this initiative will be geared toward boosting industry performance and achieving mutually beneficial new opportunities and ideas, while offering a scientific approach to problem resolution for issues facing the industry.

The agreement provides for GWC to collaborate with HBKU’s degree programs at the CSE, which include master’s and doctoral programs in logistics and supply chain management, to assist students’ research in these areas, acting as an extension to GWC’s R&D efforts.

Project developments HBKU will also work with GWC to identify new research project

Qatar’s HBKU and GWC undertake collaboration on Research and Development Joint research and development projects will focus on vital areas of logistics and supply chain management opportunities for students pursuing degrees in relevant fields to further their academic development. Selected students may be offered financial support for their research activities, or a sponsorship/scholarship program, based on academic merit and relevance of research areas.

Recently named the first Regional Supporter and Official Logistics Provider for the FIFA World Cup Qatar 2022, and the first logistics company to operate out of the Ras Bufontas and Um Al-Houl Free Zones, GWC will provide HBKU students, faculty and researchers access to topnotch facilities as well as excellent scientific advice on potential areas of research, including experimental methods, set-up, and design.

This collaboration aims to enhance knowledge diffusion between private sector and universities to improve employment possibilities and broaden the career paths of young professionals and feed the logistics sector with competent professionals ready to take up industry challenges.

Research development “The agreement underscores our recognition of the need to develop highly qualified researchers and manpower in all fields related to logistics and supply chain management in Qatar,” asserted Dr. Mounir Hamdi, Founding Dean, CSE. “Our joint efforts shall include research and development projects and encouraging training opportunities that support the achievement of the human development pillar of Qatar’s national vision,” affirmed Ranjeev Menon, Group CEO, GWC. “CSE is keen to support the role of private sector entities such as GWC by developing future expertise in these and other areas of critical importance,” explained Dr. Tareq Al-Ansari, Assistant Professor, CSE-HBKU. GWC underlined its critical role in the nation’s medical cold supply chain, ensuring the safe delivery of the Covid-19 vaccine from airport to injection site, in its capacity as the Authorized Service Contractor of UPS in the State of Qatar. n

JUNE 2021 47

SUSTAINABILITY

Cathay Pacific releases Annual Sustainable Development Report 2020 Safety, Carbon Offsetting, Sustainability in operations and Biodiversity are focus areas for airline

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he Cathay Pacific Group recently released its 2020 Sustainable Development Report that summarises the initiatives that were brought about by the pandemic including new safety measures and policies introduced to support its customers and employees through the global health crisis.

The report also points at the progress made in reducing carbon footprint, along with measures taken to tackle operational sustainability matters.

One of the key focal points for Cathay Pacific, as a leading airline, is to embrace its responsibility to lead the charge towards sustainable aviation and ensure future generations can experience the joy of travel.

The Hong Kong based airline announced its commitment to achieve net-zero carbon emissions by 2050, becoming one of the first Asian airline’s to establish a timeline for making carbon neutrality a reality.

“We endeavour to operate in a sustainable manner and incorporate multiple social and environment friendly practices into all aspects of our business,” noted Mark Sutch, Regional General

48 JUNE 2021

Manager—South Asia, Middle East and Africa, Cathay Pacific.

Below are the key focus areas and progress made to date: Safety: The airline continues to put safety at the forefront for its employees, customers and other stakeholders.

In 2020, the Cathay Pacific introduced Port Restart Process enabling the safe return of passengers and employees along with implementing a slew of Covid-related safety precautions for its passengers and people.

Going forward the airline continues to focus on maintaining and updating Covid-related safety measures to protect customers and people along with implementing stringent port restart process ensuring the safety and compliance as ports reopen.

Climate Change: The airline made a commitment in 2020 to achieve net zero carbon emissions by 2050, thus aligning the initiatives with both, the UN’s Intergovernmental Panel on Climate Change (IPCC) and the Paris Agreement.

While the airline strategise its fleet planning by taking delivery of ten new fuel-efficient aircrafts last year, it also continues to

devise plans to meet its goals and strengthen its carbon off-set solutions through its Fly Greener programme along with investing in Sustainable Aviation Fuel (SAF).

Sustainability in Operations: Cathay Pacific aims to embed an environmentally responsible mindset in its culture and sustainable practices across operations. It has taken a holistic approach to reduce waste and the consumption of natural resources by exploring alternative materials.

In 2020, the airline removed over 43 million pieces or 11% single – use plastic items and continues to work towards its target of reducing single-use plastics usage by 50% from baseline by the end of 2022.

Biodiversity: The airline has implemented policies that protect against legal animal trade and serve sustainable seafood onboard. In 2020, the airline’s catering arm served over 58 tonnes of certified sustainable seafood, representing around 55% of the total volume of seafood purchased.

Through the airline’s Sustainable Development Cargo Carriage Policy, embargoes have been placed on an increasing number of animals and wildlife products to restrict opportunities for their shipment and thus supporting movements aimed at stopping animal cruelty and biodiversity loss.

Going forward, Cathay Pacific will continue to review its Sustainable Food Policy and work with the civil society to prevent illegal wildlife trades, a press communiqué stated.

Conscious food distribution practices, managing infrastructure, inflight waste management, minimal on-ground and aircraft emissions, digitalising systems to go paperless, reducing on-ground engine operations and sustainable procurement are various other measures taken by the airline to fuel its vision of a greener and better tomorrow. n

COMMERCIAL VEHICLES

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he Renault Trucks T X-64 are produced in a specialised conversion workshop at the Bourg-en-Bresse manufacturing site in France.

The vehicle is converted using rigorous industrial processes and is specifically intended for customers operating in Africa and the Middle East. Its high ground clearance makes it ideal for light construction, logistic or petroleum transportation, while its T cab maximises the driver’s comfort.

Truck ‘re-made in France’ Renault Trucks’ Export models have been in high demand in the GCC, the T X-64 has explicitly been prepared for the region’s markets, with its reinforced chassis and other specifications. The option of hub reduction allows drivers to operate either on-road on rough conditions, making the T X-64 ideal for tackling the region’s most challenging terrain.

With a change of stringers, suspensions, axles and conversion of the power train, the Renault Trucks T X-64 includes over 50% of new original parts.

It is fitted with a new ultrarobust reinforced 6x4 300 mm chassis with a three-axle profile, allowing a load of 8 tons on the front axle and 26 tons on the rear.

For optimum driving comfort and perfect control of the vehicle in any situation, the Renault Trucks T X-64 is fitted with an Optidriver robotised gearbox with off-road mode and manual acceleration.

Based on a Renault Trucks T Euro VI converted into Euro III, the Renault Trucks T X-64 guarantees the highest pollution control level as applied in Africa and the Middle East. The Used Trucks Factory operators begin the conversion by dismantling and recycling the Euro VI components before installing the Euro III parts.

The air and diesel filters are also

Renault Trucks’ innovative transport solutions designed for the Middle East and Africa The T X-64 Euro III model has debuted in the Middle The new T X-64 model is set to appeal to customers looking for cost-efficient trucks that feature European quality, and deliver an optimised total cost of ownership and standard warranty. reinforced, enabling the vehicle to adapt to its new environment (topography and the characteristics of locally-available fuel). Finally, ground clearance is increased to ensure the protection of the underbody on rough terrain.

Updated software and documentation The manufacturer’s software and documentation are updated to ensure the vehicle, with its new specifications, is recognised and maintained throughout the network.

Finally, the Renault Trucks T X-64 comes with a manufacturer’s warranty of 18 months or 180,000 km, which covers all components of the powertrain and is valid throughout all Renault Trucks sales and service outlets.

“Following the successful introduction of our other custom-

built models the X-Road and the X-Port to the region, these models enjoyed exceptionally high demand in GCC markets. Our Used Trucks are now well established, so we are very confident that the new T X-64 will follow in these footsteps and reinforce the brand’s growing reputation across the region,” commented Alex Vosselman, Used Trucks Director, Renault Trucks Middle East.

Used Trucks Factory conversions are conducted using recently used trucks that have been rigorously selected and subjected to over 200-point inspections. Each conversion has been specifically studied by Renault Trucks’ design and quality engineers.

The industrial manufacturing and quality control processes meet a level of requirements comparable to those applied in the manufacture of new vehicles, a press communiqué concluded. n

JUNE 2021 49

ROBOTICS

How integrating robotics in logistics helps improve supply chain efficiency The world is evolving at such an unprecedented pace that if unaided by modern technologies, there would be utter chaos caused by massive information available anywhere and global convergence in various business processes, writes Frédéric Zielinski, Managing Director, Savoye EMEA, a global provider of complete supply chain solutions.

Frédéric Zielinski

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n the face of disruptions and upheavals, it is the logistics industry that holds our modern world together by managing a huge amount of various processes like transportation, warehousing, routing, and other vital functions.

However, to remain relevant, logistics has to upkeep and upgrade to meet the changing needs of the market. In fact, we are already seeing it happen in warehouse logistics, which is now using the efficiency and convenience of robotics.

Interestingly, this innovation was first introduced in the logistics industry in 1954 by George Charles Devol, the father of all robotics.

Fast forward 66 years, there are now an estimated at least 12 million robotics units worldwide.

Given this figure, there are a

50 JUNE 2021

number of reasons why robotics is becoming more indispensable in logistics, thereby making the supply chain industry more effective in addressing today’s market concerns.

Robot-supply chain interface Integrating robots into the supply chain enhances overall revenue to the company by increasing the delivery speed and customer satisfaction. Specifically, supply chains benefit in terms of faster processes of distribution facilities, as well as increasing the efficiency of the overall system. They can slash costs while offering more stability.

According to a study by global management consulting firm Roland Berger, logistics costs can reduce by between 20 to 40

Frederic Bouchet

Frédéric Zielinski, who joined Savoye in 2018, manages Savoye’s continuing growth and presence in Europe and the Middle East as Managing Director for both activities of Savoye: Advanced software for the supply chain and Advanced Technologies for warehouses automation.

Zielinski is a sage in intra-logistics and software solutions on both national and international markets. He started his career in 2004 at Swisslog, wherein he was a sales engineer. He rose through the ranks, making him the Business Unit manager and Development Manager at the said firm’s Middle East office for over 15 years.

Zielinski obtained an MBA in management from the Swiss Business School of Zürich in 2012, and an engineering diploma from South Alsace Engineering School (ENSISA).

ROBOTICS

per cent, while productivity can increase between 25 to 70 per cent.

Robots also help execute some of the supply chain’s least attractive tasks, thereby enabling employees to handle more productive and complex tasks.

In certain processes, bots and humans tend to collaborate, which leads to a huge productivity boost.

With the advent of the Internet, mounting pressure has been placed on supply chains.

E-commerce is on the uptake and the number of customers who buy products and services online has surged. This also means that companies experience a heavier demand for high quality items and fast delivery of orders.

Packaging requirements Moreover, since orders come from all countries in the world, different packaging requirements have to be met. In this regard, companies that make use of robots in the supply chain are of significant advantage over those that do not.

The shortage of skilled workers in logistics has dramatically affected supply chains. Also, human workers are prone to on-site accidents, including those that pick loaded boxes from high rooftops or storage spaces.

These not only put lives at risk but also cost the company unnecessary expenses for medical treatment. On top of these, their delivery speed is compromised, affecting the entire supply chain at large.

With the use of robotics, companies can prevent accidents, reduce human errors, bring in a significant amount of profit, and reduce warehouse costs. Also, companies can adapt better to new challenges and apply innovations with the use of robots, specifically because human employees do not necessarily have to compromise their health and safety.

Tangible benefits The logistics industry will see many tangible and clear benefits of adopting robots for their processes.

Not only do firms become more efficient, they also do not have to worry much regarding task execution, thanks to automation that comes with robotic systems.

This will enable human staff to focus on other important tasks.

In conclusion, robotics offers massive value to the supply chain industry by revolutionizing

logistics. Given the above reasons and examples, the use of more machinery means there will be less chances of failure in the process, boosting the overall reliability of the sector.

As we can observe in prominent supply chain systems, it is only fitting for companies to use more automata to aid human processes.

After all, innovators have made these huge technological advances to help logistics companies brace for what is ahead; we just have to embrace them. n

Savoye introduces advanced warehouse & transport management solutions to the UAE UAE rollout follows solution’s global launch; company sets sights on software’s deployment in rest of GCC region Savoye has formally introduced to the UAE market its state-of-the-art warehouse and transport management system, ODATiO, as it looks to subsequently roll out the software application to other parts of the Gulf region.

The unveiling positions Savoye as a leading company providing the local market with the only intelligent supply chain solution that has combined functionalities of the warehouse management system (WMS) and transport management system (TMS).

The UAE deployment followed ODATiO’s official global launch early this year. Offering complete and real-time visibility of all warehouse and transport activities, ODATiO empowers logistics organizations in a way that will increase

their agility amid an everevolving market, especially in the field of e-commerce.

“ODATiO is the result of our significant research and development (R&D) work, technical and functional studies, framework development, and collection and analysis of new processes,” observed Frederic Bouchet, Software Sales Development DirectorEMEA, Savoye.

Web-based solutions The 100 per cent webbased solution enables complete visibility of the warehouse and transport activities through its dedicated, multi-site, multi-language, interactive, and fully customizable dashboard.

It is not only highly responsive, but it is also easily accessible using any device, including tablets and smart-phones, and operator terminals.

Furthermore, ODATiO can be completely reconfigured by the user according to the needs of the warehouse. It can easily comply with new strategic guidelines and operational structuring such as changes in storage and picking areas, the integration of a new e-commerce channel or the latest product line, and the implementation of a new layout or new automated systems.

ODATiO forms part of Savoye’s full supply chain application suite that can be integrated into any software-asa-service (SaaS) as well as on-premise system.

It caters to the needs of companies involved in the areas of 3PL (third-party logistics), luxury, retail, textile and fashion, office supplies, pharmaceuticals, beauty care, and industrial supplies.

JUNE 2021 51

TRACK & TRACE TECHNOLOGY

Building trust and reliability in the Supply Chain EVOTEQ’s SmartTrack unites stakeholders against counterfeits, shortages and other vulnerabilities in the supply chain. It also empowers consumers by allowing them to validate and verify the products they purchase through a standalone app.

S

imply stated, ‘Track and Trace’ technologies enable a product’s status to be captured through the value chain, and to retrospectively identify and verify its path.

The track and trace technology was initially implemented to enable manufacturers to monitor and track the whereabouts of their product in the supply chain and shipping; also to ensure that the food & beverage and pharmaceutical products reach the retailer or the end-user with least manipulation in the supply chain.

Global Supply Chain spoke exclusively to Jihad Tayara, CEO, EVOTEQ, who provided insights into the company’s signature SmartTrack digital solution and its growth since its founding in 2017.

Global Supply Chain (GSC): Briefly encapsulate the concept of the ‘Track and Trace’ (generic) application/ technology?

Jihad Tayara (JT): Building trust and reliability in the supply chain is crucial and EVOTEQ’s SmartTrack digital solution represents exactly that. By tracking unique identifiers for each product that is manufactured and then traced through our advanced cloud platform, the ‘track and trace’ solution offers end-to-end monitoring and analysis of the product journey in the supply chain.

SmartTrack seeks to increase visibility and assurance across various industries, including healthcare, pharmaceuticals, auto parts, luxury raw materials and food and beverages.

By carrying details of the production date, location, batch or part numbers, and the

52 JUNE 2021

manufacturer of the product, SmartTrack ensures product safety, validation, and prevents counterfeiting. When a product is scanned, SmartTrack will inspect and compare the data with its secure and encrypted database to ensure legitimacy.

The solution also helps prevent parallel imports, which are a way of trading unauthorized or unlicensed products to take over the consumer market. SmartTrack ensures that products that are scanned at warehouses, retailers and by consumers, are verified against the brand owners manufacturing data, to ensure that the product is destined for that country and consumer and conforms with the legislation and rules of sale of that country.

Smart Track allows brand owners to ensure that their products are traced using any identifier they prefer, from raw ingredients or components to the end product sale. This experience is enhanced by the use of digital imagery that is attached to that particular product.

This means that not only can the distributor or consumer be sure by checking through a mobile app that the product supply chain has been verified, but they can also see a digital image of that branded product to check against the pack that it is genuine. We can then very quickly inform brand owners of any anomaly in the supply chain in real time.

SmartTrack can also work with brand owners and logistics providers in the redistribution of product when there is a demand or an oversupply in any market.

EVOTEQ can assist them in

predictive analysis and planning using Artificial Intelligence technology. We can track changes of the product in the supply chain, redirection from the destined market to other markets, quarantining of product, product recall or withdrawal from the market.

SmartTrack provides complete visibility down to the product SKU and how it moves in the supply chain and any changes within network.

GSC: What is the EVOTEQ product offering and what are your USPs? JT: EVOTEQ was founded in 2017 in response to market demand for next-generation technologies and applications to businesses and government entities. Our aim was, and continues to be, to create digitally empowered and smarter societies. By providing innovative and transformative digital solutions and platforms, we enable governments and large enterprises across the region to improve performance, increase efficiency and make better informed decisions.

Our unique business model covers the entire span of offerings required for digital transformation.

First, we offer our clients in-depth consulting and advisory services to shape their digital transformation strategy. We then either develop a customized solution or offer the right digital solutions and platforms to meet their business requirements in order to solve major operational pain points.

Over the past few years, we have been able to secure several highprofile projects from facilitating smart transportation to building

TRACK & TRACE TECHNOLOGY

smart city management systems, digitalizing public sector and corporate services, and fortifying supply chains.

Currently, we are working with Ministry of Health and Prevention on Tatmeen a highly advanced track and trace platform for pharmaceuticals and medical products based on EVOTEQ’s SmartTrack solution, to ensure protection of public health and improve the security of healthcare at all stages.

GSC: Where (industry verticals) does Track & Trace technology find applications?

JT: SmartTrack solution allows businesses to track their products from manufacturers to the endusers while also keeping the authenticity of the supply chain intact across a number of industries such as electronics, luxury goods, drugs/medicine, soft drinks and automotive spare parts. The system has been equipped with the latest state-of-the-art technology including the SAP products which are based on secure and reliable SAP solution components.

GSC: What are the newest developments / trends for ‘Track & Trace’ technology and how is it (technology) evolving?

JT: In order to ensure a safe supply

of products and protect the brands from counterfeits, the ‘track and trace’ technology plays a very important role as a rapidly evolving industry in itself.

The Covid-19 pandemic has proved the importance of tracking temperatures in the cold supply chain. This applies to not only medical products but also food, flowers, and even industrial chemicals which are carried by logistics providers.

By logging in temperature on a tech platform, all stakeholders will be able to get updates in real time and keep track of the integrity of the supply chain. Satellite tracking, radio frequency identification and the NFC tags are some examples of technologies that are being developed to meet these challenges.

Further, the development of QR codes and the Matrix barcodes offered by GS1 also offer security and governance to trace the shipped product. Developments in blockchain will also help in making transactions within the supply chains far more secure and also ensure the product is where it should be at any given time.

GSC: How significant / important is Trace and Track technology in present day industry?

Jihad Tayara is the Chief Executive Officer, EVOTEQ, a UAE-based solutions provider trusted by government entities and leading organizations in technological innovations and digital transformation across the region.

Jihad spearheads the development of impactful, disruptive and sustainable technology solutions that increase efficiency, support business growth, and fuel digital innovation. He has put in front of him EVOTEQ’s vision to become the region’s premier technological innovations and digital transformation partner.

Under his management, the company took the lead to create a revolutionary track-and-trace application using SmartTrack to fortify and secure supply chains, which is currently being adopted by the UAE Ministry of Health and Prevention for their new digital platform ‘Tatmeen’.

Jihad also is behind the development of EVOTEQ’s several major digital transformation projects in Sharjah and the UAE, including the ‘Offices of the Future’ for Bee’ah’s headquarters among many others.

His other experiences in telecommunications include working with Motorola Networks in Dubai, Orascom in Cairo, and Investcom in Beirut. He holds a Bachelor’s degree in Telecommunications Engineering from the American University of Beirut, and a Master’s degree in Business Administration from the University of Cambridge.

JUNE 2021 53

TRACK & TRACE TECHNOLOGY

JT: Any stakeholder in the supply chain will agree that ‘track and trace’ technology is important to restore trust and transparency in the process. The technology allows traceability of raw materials, whether food, medical products, mobile telephones, or just spare parts for cars and ensures they are genuine and safe for use.

The technology allows the businesses to protect the reputation and authenticity of their brands as well as their distribution partners, by ensuring what is sent through the supply chain is legitimate and approved by the brand owners.

Meanwhile, consumers can check and confirm that the product they are buying is safe and original, coming directly from the brand owners’ production site.

This technology is one of the most significant consumer protection initiatives in recent years in the supply chain industry.

There is so much room to grow and I believe that this is the future of logistics.

GSC: Talk to us about EVOTEQ’s partnership with Bee’ah?

JT: EVOTEQ is a Bee’ah Group company and handles all digital transformation for the Group and is currently working on Bee’ah’s smart headquarters or the Office of the Future.

The company is integrating the region’s first Artificial Intelligence Platform (Platform-as-a-service) for the new headquarters, which is being referred to as one of the smartest buildings in the world. As a first of its kind in the UAE and by extension, the MENA region, the building will be equipped with intelligent edge systems, smart devices and software to increase energy efficiency and productivity in the workflow.

Another project we have worked on for Bee’ah was enabling Smart Surveillance, an artificial intelligence (AI)-assisted surveillance and oversight system

54 JUNE 2021

Bee’ah’s 92-hectare Al Sajaa landfill to provide world-class security and incident management.

This advanced system has been deployed at the Middle East’s sustainability pioneer in response to the growing demand for modern asset surveillance and monitoring solutions.

GSC: What are the opportunities and challenges for EVOTEQ going forward?

JT: The pace of moving towards digital transformation has accelerated within businesses.

As more and more importance is given to delivering superior customer experience, businesses can no longer disregard the importance of transforming digitally, and we can see the increase in demand for transformative solutions from all kinds of enterprises in the region.

More organizations will be seen integrating data analytics that will enable them to get a broader perspective of what their customers need and also help them make more informed decisions to improve customer services. As these transformations pick up momentum, businesses are increasingly under risk from attacks on digital technologies.

With the latest globally accepted standards in data privacy, securing online systems becomes crucial as companies carry their customer data on online systems and must ensure their integrity to keep the customers’ data safe.

However, we did meet with challenges. Traditional business mindsets have to change in order to make way for the digital transformation and innovative solutions. As we face unprecedented challenges today, there is a need to respond to the crisis accordingly to continue to remain relevant and resilient in the face of adversity.

Lower purchasing power of some enterprises as a direct result of COVID-19 has been one of

the many challenges we faced.

In order to keep the ship sailing, many businesses have cut costs in order to cope with businessrelated losses. Companies need to implement the right technologies to help clients remain resilient in times of a crisis.

GSC: How did you perform in 2020, Q1-2021 and what is your outlook for the remainder of this year?

JT: As the UAE starts adjusting to the new normal, regional businesses are seeing a lot of new activities in the market. The governments across the world are finally starting to ease lockdowns and businesses are adopting preventive measures at workplaces to minimize virus transmission.

Digital transformation has piqued interest of many companies which are hoping that the new technology will streamline the workflow. From contactless services to cost optimization strategies, companies have been building adaptable business models in response to the Covid-19 pandemic.

GSC: What is your future vision for EVOTEQ for the short and long terms, going forward?

JT: At EVOTEQ, we hope to create smart societies which are digitally empowered by introducing innovative and transformative digital solutions and platforms for governments and the private sector to operate on. By doing so, we will be able to devise processes that make conducting business easier and have a meaningful impact on people’s lives.

Our SmartTrack technology hopes to lead in digital transformation which can capitalize on the authenticity of the supply chain network. We hope to expand in every way into adjacent areas where our knowledge and technical expertise can help us serve our customers in a professional manner. n

Join NAFL / FIATA to get connected for networking and business opportunities Membership open for 2021

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Here’s why you should consider being a member: International Benefits:

National Benefits:

+ The FIATA member certificate + Use of the Fiata logo + Entry in the FIATA members directory & networking events + Advertising in the FIATA members directory, review and information (FIATA e-Flash) + Special Rates for FIATA publication and articles + Access to secretariat›s assistance + FIATA arbitration code + Use of FIATA documents + FIATA worldwide member connectivity + Talent Connect Worldwide, E-Learning

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The NAFL member certificate Use of the NAFL logo Free access to networking events Discountes rates in participating in global and regional conferences Asssistance in case of legal advocacy Discounts for cargo/logistic events and exhibition stands Discount training for NAFL members Training/Certification for regional/international courses Insurance at discounted rates (cargo/liability/medical) Complimentary internship, Skill upgrade and Mentoring & Innovation ideas + Discounted supplier rates for industry products

Be the Industry voice, protect yourself by STC, Insurance and maritime advice, network B2B, B2C ACCREDITATIONS National Association of Freight & Logistics

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ORDER FULFILLMENT

Smart Urban Fulfillment – Staying a step ahead today and tomorrow

E

Order fulfillment is the process of receiving goods, then processing and delivering orders to customers. The process starts with a customer placing an order and ends once they receive it. Alain Kaddoum, General Manager, Swisslog Middle East, weighs in on efficacies and new emerging technologies in this distribution and logistics maze.

mpty shelves? Long shopping queues? News about spreading pandemic had people rushing to shops, stockpiling groceries and hoarding necessary goods, while cutting back on other expenditures.

Demand on canned food soared rapidly and unpredictably, shifting shopping patterns in terms of category, values and frequencies.

Even before the pandemic, urban fulfillment was marked by radical change: industries, retailers and consumers want their orders within a few hours. For logistics providers, this means delivering orders to customers in urban areas quickly, efficiently, and within the specified time frame. Is this an

56 JUNE 2021

unsolvable conflict?

Swisslog understands the requirements of the future and is working on new solutions.

Typically, people live where the jobs are. That is why more than 50 percent of the world’s population has settled in urban centres.

Megacities are sprouting up all over the world.

Streamlining distribution Online ordering allows customers to avoid being in traffic jams and long wait times at the cash register, especially in urban areas. Adding to this, coronavirus did not leave shoppers with much of a choice than continuing their purchases

online. As a result, e-commerce is growing not only in B2C but also in B2B field.

For example, service technicians use the internet to procure spare parts. Industrial companies prosper when production needs a less specialized supply part.

But speed is of the essence. Only same-day or next-hour delivery offers a competitive edge. Logistics providers have to find the right solutions to the challenges associated with goods delivery in big cities.

To boost efficiencies along the entire supply chain implies rethinking business models and switching to innovative, databased technologies and solutions.

ORDER FULFILLMENT

Digitalization promotes and demands new direction in logistics For some time now, digitalization has been revolutionizing far more than just e-commerce. There is no doubt that digitalization has been one of the biggest disruptive movements in recent decades. Industry 4.0 is transforming business models in entire industries. More and more businesses are starting to produce goods solely on demand and ship them directly to their destinations.

This reduces the cost of logistics for industrial companies that produce goods. At the same time, planning processes need to meet ever more complex requirements.

Logistics providers in industry and commerce must be able to precisely forecast their delivery times, routes and costs. This challenge can only be solved through intelligent data analytics.

Today: Different distribution points and long delivery times Many companies still use the push principle to bring goods to market. Products pass through several intermediate warehouses and distribution centres on their way from the manufacturer to the consumer.

Tomorrow: From producer to destination in 24 hours The trend toward demand-driven manufacturing based on the pull principle is turning traditional supply chain concepts upside down. But this change is essential if we want to address challenges that the pandemic made evident to logisticians.

Thanks to that, far fewer items are made to stock. The high-speed procurement route from producer to destination within 24 hours has become a reality. Making

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ORDER FULFILLMENT

this happen requires efficient information flows. Innovative thinking and action are needed.

Concepts for global goods procurement must be coupled with the new concepts of urban fulfillment.

Digitalization is an important driver here. It makes it possible to analyze, plan, control and monitor increasingly complex data streams and product flows. Logistics providers need to be prepared for drastic changes, especially in urban centres with heavy traffic. What is feasible?

Delivery taxis, cargo bikes, drones, and robots will figure prominently in urban areas. Fast and flexible delivery services will only be possible using new methods.

In addition, the large number of approaches in existence today will need to be orchestrated. Big data analytics – the evaluation of data from many sources – helps to harmonize existing delivery concepts.

Shared warehouses

A range of solutions are already available for customers looking for automation in their urban fulfillment centres. This includes the space saving storage or multilevel storage and order picking system for small parts, AutoStore.

Swisslog is the worldwide number one AutoStore integrator and is already working on a number of urban applications with this technology.

Besides, together with shuttles and CarryPick mobile robots, we

Shared warehouses for preconsolidation of shipments by multiple service providers are being tested with great success on the periphery of urban centres.

This allows effective bundling of shipments to recipients in the city centre.

More compact types of storage will need to be used in central city districts due to scarce storage space and rising cost of land.

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Consider small parts solutions

offer a consolidated portfolio of products for light goods in your warehouse.

Think about pallet solutions PowerStore is perfect for urban warehouses too, a high-density pallet shuttle solution ideal for warehouses with low ceilings, fewer unique products and high throughput requirements.

In case of higher warehouses, PowerStore goes well in companionship of Vectura cranes for pallets. Whatever the solution, there is no place better for customers to start than with SynQ software.

Regardless how challenging your needs are, Swisslog goes handin-hand with your requirements.

Because having an array of high-end hardware and efficient business intelligence tools, we get your warehouse equipped to resist sudden effects of future unexpected events, like virus outbreaks and boost performance where others fall short. n

SOHAR

SOHAR

V

ale, one of the world’s largest mining companies, situated at SOHAR Port and Freezone, is celebrating this month, its tenth year in operation in Oman.

Vale launched the initial stages of its industrial complex at SOHAR in April 2011, marking a high point in an era of big-ticket industrial investments. The project highlighted the Sultanate’s strategic geopolitical location in the Middle East and the distinctive advantages of SOHAR as a logistics hub and maritime gateway.

Valemax capacity SOHAR, a unique deep-water port in Oman, is one of the very few ports in the Middle East capable of receiving even Vale’s Largest ‘Valemax’Vessels, which have a 400,000-ton transportation capacity.

In addition to making a sizable contribution to the country’s Gross Domestic Product, the venture has also delivered significant benefits in jobs, value addition opportunities, in-country value initiatives, and community development projects.

“Vale’s operations in Oman are a result of a dynamic partnership with OQ and SOHAR. The Omani government is a strategic partner that has contributed to its success by facilitating a smooth transition into the country and allowing Vale to develop its business operations seamlessly,” remarked Adriano Mansk, CEO, Vale Oman.

Big investment Over the course of 10 years, Vale has invested over US$ 380 million with local companies during the project phase (2009-2011), which cost US$ 2bn and more than US$ 1.2bn investments with local companies from 2012 – 2020 as part of supply chain development.

In addition, it has invested over US$ 10mn in sustainable and social responsibility projects between 2013 and 2020, as well as more than US$ 85mn in ensuring environmentally friendly operations.

“Vale is a transformational company, one that transforms the environment where it operates.Vale is dedicated to sustainable development regardless of where it operates,

Vale celebrates tenth anniversary of operations in SOHAR US$ 1.2+ billion invested in local companies for supply chain development identifying the countless opportunities for growth that are available while also recognizing the planet’s physical limits,”said Saleh Al Musalhi, Deputy CEO,Vale Oman.

“We congratulate Vale Oman on the

occasion of their tenth anniversary.

Together, we continue to position SOHAR as a key logistics hub, both in the region and in the world,” commented Mark Geilenkirchen, CEO, SOHAR Port. n

SOHAR continues to attract FDI despite turbulent market conditions Attracts over US$ 27billion investments Despite the current challenging market conditions resulting from the pandemic and fluctuating oil prices, SOHAR Port and Freezone reported an increase in cargo volume and overall performance in 2020.

The port recorded a 1% increase in the number of containers that reached the port, whilst breakbulk increased by 18.2%, liquid bulk by 5.9% and dry bulk by 1.5%. In addition, the port also recorded 100% growth in Ship-to-Ship (STS) cargo given its strategic location and its reputation for delivering

unmatched quality of service with quick turnaround times.

“At SOHAR Port, we put in place precautionary measures and identified solutions to best serve our clients and the various markets,” remarked Mark Geilenkirchen, CEO, SOHAR Port.

“We attract foreign direct investments and support the continuity and growth by implementing efficient business procedures,” noted Omar Mahmood Al Mahrizi, Deputy CEO, SOHAR Port and CEO, SOHAR Freezone.

JUNE 2021 59

WAREHOUSE MANAGEMENT SYSTEMS

How a cloud-based WMS can future-proof your warehouse

By empowering critical systems like a WMS with cloud capabilities, your organization can scale quickly, maximize productivity, and minimize outages and downtime to prevent bringing the company’s missioncritical operations to its knees, writes Khaled AlShami, Senior Director, Solution Consulting, Middle East & Africa, Infor.

E

ven when your warehouse operations seem to be running smoothly, there is always room for improvement and a need to stay up to date with innovation.

While steps are taken to keep warehouse operations at peak performance, when fulfilment times and levels are jeopardized, it’s still up to you and your team to race to recover, to ensure actions to get back on track are taken correctly so that product can make its way out the door, and time is always working against you.

If your organization previously reviewed and dismissed the value of moving your warehouse management system (WMS) to the cloud, it’s time to re-evaluate.

Decisions that seemed to make

60 JUNE 2021

Khaled AlShami, Senior Director, Solution Consulting, Middle East & Africa, Infor.

sense last year or even last quarter, likely look very different with new challenges emerging over the past several months.

Losses caused by system outages can be initially staggering and ultimately far-reaching, impacting not only revenue and productivity but also long-term brand value. It’s been estimated that the average cost of IT downtime is US$ 5,600 per minute, with US$ 140,000 per hour on the low end and as much as US$ 540,000 per hour at the higher end.

Resolving issues onpremise Internally absorbing the actions to resolve the issue on-premise and then putting in place actions across the organization to recover from the critical failure and its consequences can derail an organization even further.

However, what if you could offload that preparation, training, and responsibility to a solution partner you can trust to manage it all for you? With choosing a

software-as-a-service (SaaS) model for your WMS, experts who are contractually committed to ensuring your warehouse stays up and running are shouldering that burden.

Not only can you remove this time-consuming responsibility from your list, but when a failure of some kind inevitably occurs, you will likely never even experience a disruption. Such is the type of redundancies and fail-safes that SaaS organizations put in place.

Also, with that shift of responsibility, your team can instead focus additional time on other strategic initiatives with higher business value.

Moving WMS to the cloud By moving from on-premise WMS to the cloud, you can avoid a potentially devastating business impact while simultaneously optimizing your workforce.

An Infor customer recently found themselves facing an all too familiar story with aging technology stacks. They relied on a legacy on-premises solution for over 30 years. While it had been dependable for decades, the day the system failed, there were no longer any technicians in-house familiar with the solution and no feasible way to recover.

The organization realized the only logical step forward in that critical moment was a move to the cloud, which not only allowed them to recover, but has now set them up to scale accordingly as the business grows.

In hindsight, it would have been ideal to begin that transition to the cloud years earlier, but they are now benefitting from more than peace of mind.

As warehouse operations grow increasingly complex, making sure your system is always up to date has never been more important to your business. n

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Kanghar, our multi-depth high density storage solution improves space utilisation and efficiency for Low SKU, High Density distribution centers.

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