November 2021 Issue 85
ENHANCING THE BUSINESS OF LOGISTICS
Acme Intralog: Setting New Benchmarks in Materials Handling
Pushing the boundaries in Automation Solutions ALS Logistic Solutions On growth course
Savoye ME
Reinforcing a legacy
MAN TG Range Debuting the latest
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Global Supply Chain Woes
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
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Recently, in mid October 2021, President Joseph R. Biden announced that the Port of Los Angeles would operate 24/7 in a bid to address product shortages in the United States. The news comes on the back of the ongoing supply chain crisis across the globe that is driving up consumer prices and inflation. Clearly, the President and the Administration are trying to do their best in the face of logistics challenges and supply chain upheavals. So how did the supply chain get so messed up? It’s tempting to blame the pandemic alone for the current supply chain catastrophe, but in some ways, the pandemic merely exacerbated existing problems with global trade and exposed some new ones. Closer home, we recently witnessed the pomp and pageantry following the official inauguration of Expo 2020 at an ostentatious ceremony replete with firecrackers, music and grandiosity. Indeed a very impressive and lavish spectacle! For the next 182 days beginning 1 October 2021, visitors to one of the greatest show on the planet will have the distinctive and welcome opportunity to explore and interface with the 192 country pavilions for the duration of the Expo 2020. The Exhibition season is now well and truly upon us. Materials Handling Middle East 2021 and Hypermotion will be held in tandem in early November. For this edition, our Cover Story centres on Acme Intralog, a key player in the sector. We talk to Navin Narayan, Founder-CEO, Acme Intralog, in an exclusive interview. Elsewhere we also engage with Walid Khoury, Group Managing Partner & Senior MHS (Materials Handling Systems) Consultant, ALS Logistic Solutions, on the latest developments and updates at the Company. Global Supply Chain also has the opportunity to see up close and personal and also test drive the latest TG Range from the MAN Truck and Bus Company. Read on for details and the report on our visit to the manufacturer’s Jebel Ali Dubai Middle East Headquarters.. As with every edition, our editorial menu comes with 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 NOVEMBER 2021 3
November 2021 Issue 85
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NEWS
Up to date news of the Global Suppy Chain industry.
Acme Intralog
The regional automation and logistics services solutions provider is on a roll.
ALS Logistic Solutions
Exclusive interview with Varun Viswanath, Sales Manager & Team Lead, GENAVCO.
MAN Truck & Bus
The German manufacturer of commercial vehicles has unveiled the new TG range in the region.
Savoye
GSC conducts an exclusive interview with Alain Kaddoum, the newly appointed Managing Director, Savoye ME.
Moglix
An exclusive interview with Piyush Malviya, Senior Director of Moglix.
Materials Handling ME 2021
GSC previews the biannual industry exhibitions for the Materials Handling sector.
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52 54 55 56 58 60
Blue Yonder
Panasonic has completed the acquisition of Blue Yonder.
SAL-Saudi Arabia
SAL has signed a cargo ground handling agreement with Qatar Airways Cargo.
GWC Qatar
GWC has entered into a strategic partnership with UPS.
Energy Trends
The Top 10 Oil and Gas Trends to Watch-Gartner.
DHL
The company has opened a new logistics hub at Abu Dhabi International Airport.
Mawani KSA
The expansion project will double the port’s container handling capacity.
Moved by people qrcargo.com
AP Moller-Maersk enters strategic partnership with Danish Crown n AP Moller-Maersk recently announced the signing of a global end-to-end logistics agreement with Danish Crown from 2021. The three-year end-to-end agreement covers all Danish Crown’s business units, delivering solutions on ocean services, inland logistics and cold chain logistics. Access to the digital supply chain platform Tradelens, which is underpinned by blockchain technology, is also a core part of the agreement. “The food supply chain is highly demanding, but we will work hard to provide fast, reliable and dynamic supply chain solutions to Danish Crown as a modern end-to-end logistics company with fully controlled assets,” affirmed Vincent Clerc, Executive Vice President and CEO, Ocean and Logistics, AP Moller-Maersk. The Danish Crown Group is one of the largest meat-processing companies in
Jais Valeur and Vincent Clerc signing the accord.
Europe, and distributes fresh and frozen foods worldwide. With a significant export to Asia and a growing business in both North- and South America it is key for Danish Crown to ensure a flexible and resilient supply chain to support their business needs and meet their sustainability targets, a press communiqué stated. ”There is no doubt, that Maersk is at the leading the sustainability transition
within container logistics, which very much aligns with our own ambitions to become the world´s most sustainable meat supplier in 2030,” remarked Jais Valeur, Group CEO, Danish Crown. “In Maersk we have a partner who understands and priorities the importance of an active collaboration in our daily business. This close collaboration is key and will ultimately service our customer’s needs,” into account concluded Valeur.
DP World partners with CDC Group to create Africa investment platform n DP World recently announced the creation of an investment platform in partnership with the UK’s development finance institution and impact investor CDC Group (CDC). DP World is contributing its stakes in three existing ports initially and expects to invest a further US$ 1bn through the platform over the next several years. CDC is committing approximately US$ 320mn initially and expects to invest up to a further US$ 400mn over the next several years. The transaction is subject to certain final regulatory approvals. The platform will invest in origin and destination ports, inland container depots, economic zones and other logistics across Africa to increase trade, create new job opportunities and broaden access to essential goods. It will initially be seeded with minority stakes in existing DP World assets with significant capacity expansion plans, including Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). “DP World is committed to Africa for the long-term and sees significant opportunity for future growth across the continent. The partnership with CDC offers the flexibility to accelerate and capitalise on these opportunities,” noted Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World. “This platform will help entrepreneurs and businesses accelerate growth with access to reliable trade routes, and it will help African consumers benefit from the improved reliability and reduced cost of vital goods and food staples,” commented Nick O’Donohoe, CEO, CDC.
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Etihad Cargo expands its African footprint n Etihad Cargo has expanded its pharma sector reach into Africa with the signing of a Service Legal Agreement (SLA) with Astral Aviation and Kenya Airways to provide reliable and cost-effective airfreight solutions across the continent. Operating a fleet of 14 freighters out of its Nairobi and Johannesburg hub, Astral Aviation services a network of 15 African destinations, which Etihad Cargo will leverage for increased vaccine distribution across Africa. Both carriers are members of The International Air Cargo Association (TIACA) and Pharma.Aero, whose joint Project Sunrays initiative offers cross-industry collaboration for pharma
shippers managing complex vaccine distribution logistics. The SLA, a first Pharma Interline agreement, ensures Etihad Cargo partners are fully compliant with latest GDP and IATA Pharma regulations and standards, and guarantees processes, from booking to handling of such sensitive goods, are standardised and performed to the highest quality. “In addition to significantly expanding Etihad Cargo’s reach across Africa, this inter-airline agreement ensures complete adherence to the specific requirements of pharmaceutical product transportation,” explained Martin Drew, Senior Vice President Sales and Cargo, Etihad
Aviation Group. “The equitable access and distribution of COVID-19 vaccines in Africa will be enhanced with the help of partnerships and collaborations within the aviation sector, such as the one enacted between Etihad Cargo and Astral,” commented Sanjeev Gadhia, CEO, Astral Aviation. “Kenya Airways Cargo is excited to join Etihad Cargo in the HOPE Consortium initiative through providing logistical solutions in our home continent. This is a fundamental need and pre- requisite toward aviation recovery in Africa,” commented Peter Musola, Head of Cargo Commercial, Kenya Airways.
Scania vehicles, including the recent purchase of 10 new P380 trucks with another ten due for delivery soon. Momentum’s fleet is expected to get an additional boost with further investments planned until the year-end. “We conducted a thorough analysis of all our operations before replacing our fleet. Scania proved to have the best value offering on a weighted scale, considering the total cost of ownership, driver training, deployed at multiple depots across the customer support, and maintenance,” region. noted Martin Roberts, Director of “In the last ten years, we have Transportation, Momentum Logistics. experimented enough to know what works “Our offering of an outstanding Total the best and what doesn’t. Scania was Operating Economy for Momentum, the obvious choice to initiate our fleet including tailor-made fuel-efficient and replacement programme,” remarked Alex reliable trucks, driver training, service Lewis, Managing Director, Momentum contracts and finance solutions has made Logistics. Momentum choose Scania and Al Shirawi Since December 2017, the fleet Enterprises as their preferred supplier,” replacement drive at Momentum Logistics commented Hans Wising, Sales Director, has witnessed the delivery of 96 new Scania Middle East.
Momentum Logistics opts for Scania trucks n Momentum Logistics, a subsidiary of global port operator, Gulftainer, in its continuing sustainability drive in the Emirates, recently replaced its transportation fleet with innovative, sustainable, and fuel-efficient Scania trucks, distributed, and serviced in the UAE by Al Shirawi Enterprises. With operations spanning the Middle East and the USA, Momentum Logistics has a fleet of over 100 commercial vehicles and 240 multipurpose trailers
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Gulf Craft embarks on digital supply chain transformation with SAP n Gulf Craft recently announced a strategic digital transformation partnership with global technology company, SAP, which will revolutionise the experience of its customers all over the world. The digital transformation will include the implementation of new systems and processes that will drive the brand’s Mohamed Hammad, Executive Director, Midmarket, SAP UAE and Talal Nasrallah, CEO, Gulf Craft. innovative approach to boat and yacht manufacturing - from prototyping, to and resource management efficiency,” “By adopting SAP’s real-time production and delivery of the vessel to observed Talal Nasralla, CEO, Gulf Craft. solutions, Gulf Craft can drive innovation the owner, the company said in a press As part of the first phase of digital to optimise its operations, costs, and statement. transformation, Gulf Craft will deploy the customer experiences, and fuel its “With the addition of customers RISE with SAP that includes and supply global growth strategy,” asserted Zakaria from different parts of the world, the chain solutions running on the Microsoft Haltout, Managing Director, SAP UAE. digitalisation will help unify our sales, Azure cloud. Founded in the United Arab Emirates project management, manufacturing and In the second phase, SAP Ariba in 1982, Gulf Craft has three facilities procurement functions on one real-time digital procurement solutions and the in the UAE and the Maldives and has a digital platform. This will contribute SAP SuccessFactors human experience manufacturing capacity of 200 boats per significantly to enhancing our operational management suite will be rolled out. year.
Aramex commits to reducing greenhouse gas emissions n Aramex recently announced signing a commitment with the Science Based Target initiative (SBTi) to significantly reduce its greenhouse gas emissions by 2030. This initiative is part of Aramex’s sustainability strategy to reduce its impact on the environment, prevent climate-related risks, drive down energy consumption, and ensure that the company’s progress towards net zero carbon is aligned with climate science, it was announced in press release. By signing this commitment, Aramex will work with a clearly defined science-based carbon targets to put the Company on track to reducing its emissions in line with the Paris Agreement’s goals of curbing a rise in global temperature to well-below 2°C. The Science Based Targets initiative (SBTi) is a collaboration between CDP,
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the United Nations Global Compact (UNGC), World Resources Institute (WRI) and the Worldwide Fund for Nature (WWF) and defines and promotes best practices in science-based target setting and independently assesses companies’ targets. “Aramex is continually seeking ways to improve our efforts to make a real positive impact, in line with the national commitments to the United Nations Sustainable Development Goals (UNSDGs),” stated Raji Hattar, Chief Sustainability Officer, Aramex. Aramex’s sustainability strategy is embedded across all its business lines. The Company continues to proactively take steps to measure, manage, and mitigate the impact of climate change, while also investing in solutions, awareness building, and expertise, the press statement concluded.
Raji Hattar, Chief Sustainability Officer, Aramex.
FedEx Express to invest over US$ 400mn in Saudi Arabia
GE Gas Power MEASA Summit 2021 strengthens regional supply chain Jack Muhs, Regional President, FedEx Express MEISA.
n FedEx Express recently announced its transition to a directserve presence in the Kingdom of Saudi Arabia to meet the country’s growing international shipping demands. The company will invest more than SAR 1.5bn (US $ 400mn) into the Saudi economy over the next 10 years through talent management and local operations and infrastructure. This investment will reaffirm the company’s commitment to the country’s non-oil economic growth, in line with Saudi Arabia’s Vision 2030 goals, the company stated in a press communiqué. FedEx Express has been facilitating trade in Saudi Arabia since 1994, offering international solutions and connectivity through local service providers, most recently through SAB Express. “We see FedEx Express playing an important role in developing the small and medium enterprise environment in Saudi Arabia, which forms the backbone of the economy, and represents 99% of Saudi Arabia’s private sector,” affirmed Jack Muhs, Regional President, FedEx Express Middle East, Indian Subcontinent, and Africa. FedEx Express will continue to work closely with SAB Express to provide pickup, delivery, and customs clearance services across the country. Sheikh Salah Al Bluewi, Chairman, SAB Express, remarked. “We’re happy to continue supporting FedEx Express in Saudi Arabia with their growth journey, and join them in playing a critical role in developing Saudi Arabia’s logistics infrastructure,” he concluded.
n In continuation of its commitment to further strengthen collaborations with regional suppliers, GE Gas Power recently organized the Middle East, Africa, and South Asia (MEASA) Partnership Summit 2021. Representatives of up to 220 organizations from over 30 countries attended the event, which was held under the theme “Grow Global Reach, Drive Regional Impact”. “We remain committed to growing local entrepreneurship and strengthening the regional supplier ecosystem across the power sector,” commented Joseph Anis, President and CEO, GE Gas Power Europe, Middle East, and Africa. In 2020, GE Gas Power worked with over 650 suppliers within region as well as globally, to support various services and projects across MEASA. The agenda encompassed sessions on safety and compliance; the future of energy across MEASA; regional market dynamics; chain and sourcing overviews; the benefits of inclusion and diversity at the workplace; and cyber-security. The Summit also included a ‘Key Suppliers’ awards ceremony to recognize the achievements of organizations. From the UAE, Osborne Engineering and Kamlesh Trading were recognized in the ‘Quality’ category for collaborating to deliver an excellent customer experience. GE has supported the development of the Gulf Cooperation Council’s (GCC’s) energy infrastructure for over 80 years, a press communiqué concluded.
NOVEMBER 2021 9
UPS and DP World commit to green agenda n As the Official Logistics Partner, UPS is working with DP World, the Official Premier Global Trade Partner of Expo 2020, to showcase its transition to clean energy with UPS’s electrical vehicles being charged for the first time with an off-grid charging system to power on-site deliveries. “Our joint efforts allow us to decentralize the charging system, eliminate the need for electricity in charging vehicles at Expo 2020 and further our goal of becoming carbon neutral by 2050,” observed Scott Price, President, UPS International. During the six-month mega event, UPS will use the system to charge its fleet of electric vehicles, developed in collaboration with Arrival, at DP World’s FLOW Pavilion. Sunlight will be captured by panels
on the pavilion’s roof, with the solar energy flowing through an inverter to an offgrid Battery Energy Storage System (BESS) unit which powers the charging station. “The collaboration between UPS and DP World addresses sustainability issues and is closely aligned with the UAE’s Circular Economy Policy 2021-2031 and its Green Agenda 2030,” remarked Abdulla Bin Damithan, CEO and Managing Director, DP World-UAE Region and Jafza. The sustainable collaboration is closely aligned with the UAE’s Circular Economy Policy 2021-2031 and its Green Agenda 2030, as well as supporting a key growth engine of Dubai’s economy through the development of cutting-edge circular
economy technologies. “It’s truly special to be at Expo 2020 with UPS and DP World showcasing how innovation and collaboration can accelerate the transition to electric vehicles globally,” commented Avinash Rugoobur, President, Arrival.
Tristar Group wins prestigious Sheikh Khalifa Excellence Award (SKEA) n In a recently held physical award ceremony at the Abu Dhabi Chamber headquarters, Tristar Group Chief Administrative Officer Nagabhushan Balaji and Business Excellence Manager Mohan Dharmarajan received the Silver Award from the Sheikh Khalifa Excellence Award (SKEA) under the Services Category. HE Abdullah Mohammed Al Mazrouie, Chairman of the Federation of the UAE Chambers of Commerce and Industry and HE Saeed Abdul Jalil Al-Fahim, Chairman of SKEA Higher Committee, handed the Silver Award to the Tristar Group and 20 other companies, which won in various categories. SKEA was launched by the Abu Dhabi Chamber of Commerce & Industry (ADCCI) way back in 1999 as a blue
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print, a roadmap and a methodology for continuous improvement aimed at enhancing the competitiveness of the Business Sector in Abu Dhabi and the UAE using the European Foundation for Quality Management (EFQM) model. “Tristar as a company has established the three pillars-People, Processes and Systems which help in continuous improvement. This helps us cater to the
expectations of all our stakeholders, internal and external and eventually realize our goal to be a truly world class organization,” commented Nagabhushan Balaji. Tristar’s logistics platform spans road and maritime transportation, specialized warehousing, cryogenics transportation, fuel farms, commercial aviation refueling and remote fuel supply solutions.
Evocargo debuts its Autonomous Trucks in Middle Eastern markets n Global autonomous cargo transportation company Evocargo demonstrated its unmanned logistics platform EVO.1 at Expo 2020 Dubai. Andrey Bolshakov, the Founder and Chief Business Development Officer, Evocargo International Holdings Limited, presented a smart logistics service based on self-produced unmanned electric logistic platforms EVO.1 (3.5 tons full weight) and EVO.3 (44 tons full weight) and announced a Dubai office opening. The launch at Expo 2020 Dubai of the ‘Global Smart Logistics Strategy’ by Evocargo as a comprehensive program backed up by ambitious targets of spreading smart logistic service provided by full-size unmanned vehicles EVO.3 and EVO.1 significantly impacts the logistics industry.
“Our latest autonomous innovations in Smart Logistics services, Evocargo’s end-to-end robotization logistics service based on EVO.1 and EVO.3 platforms, can decrease transportation cost by up to 60 percent,” affirmed Bolshakov.
Evocargo is an innovative global logistics company and a pioneer and leader in manufacturing and implementing autonomous all-electric/hydrogen-based delivery vehicles, a press communiqué concluded.
Jafza’s E-commerce ecosystem to attract fulfillment and marketplace operators n Jebel Ali Free Zone (Jafza) has emerged as a destination for e-commerce fulfillment and sales in the MENA region. Jafza showcased its exceptional performance in the region at Seamless Middle East 2021. As part of the event that highlights opportunities in e-commerce, retail and fintech solutions, the free zone presented its offerings for e-commerce fulfillment and discussed how changes to regulation and consumption demand create new opportunities for existing and new regional companies. Jafza’s location, which provides businesses with a single customs-bonded area, connecting Al Maktoum International Airport (DWC) and Jebel Ali Port, creates an optimal environment for cross-border e-commerce activities, according to a press communiqué. Fulfillment facilities range from 300 to 1,000sqm, with flexible lease terms, helping companies establish and scale their businesses across the MENA region. “The pioneering facilities and services in Jafza already provide benefits to over 1,700 partners engaged in e-commerce. We will continue to optimise our ecosystem to offer an integrated digital experience from receiving to last-mile delivery,” commented Abdulla Bin Damithan, CEO & Managing Director, DP World-
UAE Region and Jafza. The e-commerce sector in the UAE has displayed immense potential, recording a market value of US$ 3.89bn in 2020 and a 53 per cent year-on-year increase. During the same period, Jafza itself contributed nearly 50 per cent of the trade value, witnessing a total trade of US$ 1.91bn. The free zone leased almost 4mn sqm of space to local and global e-commerce companies, the press note concluded.
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dnata enhances cargo services with innovative drone technology n dnata has partnered with Gather AI, a US-based technology start-up, and launched autonomous drones in its warehouses at Dallas Fort Worth International Airport (DFW) in the USA, to digitise acceptance and warehouse inventory processes by monitoring shipments with 99.8% accuracy. Gather AI’s innovative software enables the drones to map the environment, collect inventory data, count cases, measure temperature, and read barcodes using only their cameras,
without the need for any additional active infrastructure. The drones are paired to a tablet device providing live inventory data. The collected data can be viewed directly on the tablet or the web, via a userfriendly application, dnata said in a press communiqué. The drones can operate at temperatures as low as -10 Celsius degrees, enabling dnata to take advantage of the technology in its state-of-the-art cool chain facilities, too. dnata plans to gradually roll out the drones across its
global cargo network in the next years. “We continue to adopt the latest technologies to deliver world-class value for our partners at every stage of the cargo handling process,” affirmed Guillaume Crozier, dnata’s Divisional Vice President for Operations and Product Development. “However, it is dnata’s dedication to bringing this transparency to their customers, combined with their insights in the air cargo industry that has been critical in applying our technology to the air cargo sector with a compelling ROI,” asserted Sankalp Arora, Gather AI’s CoFounder and Chief Robotics Engineer.
Port of Wilmington celebrates the first phase of port upgrades n Delaware, USA Governor John Carney recently joined state and local officials along with port partners, the labour union representatives, customers and vendors and executives of GT USA Wilmington (GTW) in celebrating the completion of the first phase of the Port of Wilmington’s electrification project that brings a cleaner, greener, safer environment to the port. The opening of the new container yard project today featured a demonstration of 5 all Electric Rubber Tyred Gantry Cranes. The yard project was completed at a cost of US$ 37mn and is part of an US$ 88mn investment in improvements by GT Wilmington since taking over operations at the Port in 2018. The company is committed to investing up to US$ 600mn at the current port site and in building a new facility at the nearby Edgemoor site on the Delaware River, a press communiqué stated. The key attraction to the show was the demonstration by the new all-electric Kone Cranes. These cranes are some of the newest in the industry with 100% electric no carbon emissions; battery assisted for continued electric use when off the rail; auto steering equipped for precision gantry travel and 41 metric ton lifting capacity. “We want to thank Gov. Carney, state and local officials, our union partners and our customers for attending our celebration. Their continuous support is the anchor allowing us to gain a competitive edge at the Port of Wilmington,” commented Peter Richards, CEO, Gulftainer, GT USA Wilmington’s parent company.
12 NOVEMBER 2021
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P&G and Carrefour partner to plant 26 forests in the UAE n Procter & Gamble (P&G) and Carrefour partnered to accelerate their commitment to sustainability by planting 26 forests within one year. Customers will be encouraged to take the future of the earth into their own hands by purchasing P&G products from selected Carrefour stores across the UAE. When spending AED 50 or more, customers will receive a raffle voucher/coupon with a QR code to plant a tree, giving them the opportunity to contribute to global conservation efforts as part of P&G’s #ForestsforGood program in conjunction with Carrefour’s 26 th Anniversary as a leading retailer in the region. The forestation campaign is available at 30 stores across the UAE, including branches in Mall of the Emirates, Ibn Battuta
Mall and Dubai Festival City. “We look forward to building on this coalition through future initiatives with trusted and mindful partners,” stated Mohamed Hamouda, VP, P&G Gulf. “This initiative is just the beginning, and we look forward to partnering with P&G to deliver long-lasting value through every experience with sustainable initiatives,” remarked Bernardo Perloiro, COO, Carrefour UAE at Majid Al Futtaim Retail. This year, P&G has declared accelerated commitment to strengthen progress towards its global Ambition 2030 goals. So far, P&G #ForestsforGood has planted 5 forestation programs in the UAE and 11 more planted across Africa and Asia, with an additional 26 planned within the next year.
P&O Maritime Logistics completes oilfield project in Kazakhstan ahead of schedule n P&O Maritime Logistics, a Dubaibased marine solutions and logistics company, has completed a three-year long project supporting the development of the Tengiz field in Kazakhstan, one of the world’s six largest oil fields, ahead of schedule. In 2016, P&amp;O Maritime Logistics entered a consortium with Blue Water Shipping to provide a unique class of vessel which meets the specific challenges of delivering oil production equipment through the Russian Inland Waterway System (RIWS) on behalf of its client, Tengizchevroil (TCO). The project saw the bespoke design and construction of 20 MultiCarrying Vessels (MCVs), responsible for transporting heavy oil &amp;
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gas modules from trans-shipment hubs in the Black Sea and Finland, to Kazakhstan. All 20 vessels were constructed within a total of 20 months due to the strong cooperation between P&O Maritime Logistics, its consortium partners and Vard Shipyards, a press communiqué stated.
“By understanding our customer’s specific needs, and by applying a craftsman-like approach in the construction of these unique MCVs, we have been able to implement solutions that led to measurable improvements in efficiency,” commented Martin Helweg, CEO, P&O Maritime Logistics.
ADNOC Drilling approves resolutions to drive continued momentum and long-term growth
n ADNOC Drilling Company expressed its continued confidence in the key business growth and budget resolutions at the inaugural meeting of the newly formed ADNOC Drilling Board. This follows the Company’s recent highly successful initial public offering (IPO) on the Abu Dhabi Stock Exchange (ADX), which marked the largest-ever ADX listing to date. The inaugural ADNOC Drilling Board meeting was chaired by HE Dr. Sultan Ahmed Al Jaber, Managing Director and Group CEO, ADNOC and Chairman, ADNOC Drilling. The Company’s Board approved ADNOC Drilling’s ambitious five-year business growth plan for 2022 to 2026, as well as the 2022 budget. These key approvals reinforce ADNOC Drilling’s integral position as the sole provider of drilling rig hire and rig-related services to ADNOC Group (ADNOC), as the Company maintains and further grows its critical role in enabling ADNOC to deliver on its 2030 crude oil production capacity target of 5mn barrels per day and achieving gas self-sufficiency for the UAE. “The resolutions will ensure that ADNOC Drilling effectively responds to and delivers against the trust investors are placing in the Company, as well as create additional value for ADNOC Drilling’s shareholders and the UAE,” stated HE Sultan Al Jaber. Following the listing, ADNOC retains an 84% majority-ownership in ADNOC Drilling, with global energy services company Baker Hughes retaining a 5% share. International contract oil and gas driller Helmerich & Payne (H&P) holds a 1% stake following its IPO cornerstone investment.
AD Ports Group announces strong revenue growth in H1-2021 n AD Ports Group recently announced its financial results for the first half of 2021, reporting revenue increase of 21% year-on-year to AED 1,832mn (US$ 499mn) compared with AED 1,517mn (US$ 413mn) in the first half of 2020, driven by organic growth, diversification into new businesses, new leases and partnerships. EBITDA rose 8% year-on-year to AED 770mn (US$ 210mn), up from AED 714mn (US$ 195mn) in the first half of 2020, with growth across most of the business clusters. “Our financial performance is underpinned by continued expansions and increased activity, with key partnerships and joint ventures being established that are expected to deliver reliable returns in the future,” commented Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group.
The underlying business witnessed cargo volumes growing from 15mn MT in H1-2020 to 25mn MT in H1-2021, while container throughput grew from 1.57mn TEUs (twenty-foot equivalent units) to 1.59mn TEUs during the same period. The industrial zones leased about 2.4mn sqm of land during H1-2021, according to a press communiqué. “Coming out of the peak of the pandemic, we are focusing on delivering solid returns and managing our capital effectively. Our invested capital increased from US$ 5.3bn in 2020 to US$ 6.1bn in 2021 in line with our ongoing expansion programme,” remarked Martin Aarup, Group Chief Financial Officer, AD Ports Group.
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Jafza registers 40% increase in new customer registrations in H1-2021 n DP World’s flagship Jebel Ali Free Zone (Jafza) witnessed a robust new customer growth of nearly 40% year-on-year in H1-2021, taking the total number of companies in Jafza to over 8,700. Some of the industry segments in Jafza observed a significant rise in figures, with Machinery and Equipment witnessing an increase of 188 per cent, Vehicle and Transport seeing a 100 per cent surge and Retail & General trading growing by 78 per cent, according to a press communiqué. As a major contributor to Dubai’s economy, Jafza is a leading source of FDI inflow into the emirate, accounting for 23.9 per cent of total foreign investment. The free zone generated trade worth US$ 104.2bn in 2020. These figures contribute 32 per cent of the total trade value of Dubai Was of 2020. “The sustained growth of Jafza since its inception is an indication of its ability to leverage key market dynamics and create numerous opportunities for customers in the most challenging times,” commented Abdulla Bin Damithan, CEO &amp; Managing Director, DP World UAE & Jafza. As a specialised industrial, trading and logistics zone, Jafza is recognised as a dynamic base for a smart business community. The free zone offers unprecedented opportunities and market access to over 3.5bn people, across varied sectors in the MEASA region, the press Abdulla Bin Damithan, CEO & Managing Director, DP World UAE & Jafza. statement concluded.
MAN Energy Solutions and DP World sign agreement n MAN Energy Solutions recently signed a cooperation agreement with DP World. Effective immediately, the agreement targets common progress in the field of decarbonisation and is scheduled to run for five years with an option to extend thereafter. Wayne Jones OBE, Chief Sales Officer, and Gaby Hanna, Senior Vice President and Head of Region, Middle East &amp; Africa, acted as signatories for MAN Energy Solutions; while Sultan Ahmed Bin Sulayem, Group Chairman & CEO, signed on behalf of DP World. The signing ceremony was attended by Mohammed Al Muallem, Executive Vice President, DP World, and Captain Rado Antolovic, CEO, Drydocks World, a DP World company. “To achieve net zero emissions, we must recognize the importance of taking urgent and immediate steps to decarbonise shipping and the way to do that is by identifying opportunities to forge partnerships,” remarked Bin Sulayem. “We have worked closely with DP World on many projects over the years and are very happy to enter into this formal agreement,” commented Jones. Mutual areas of interest for the two companies include
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green-fuels infrastructure, future-proof conversions (LNG, methanol, ammonia) and investigation of their respective, global footprints to further reduce the environmental impact of shipping traffic in terms of fuel consumption and emissions, a press statement concluded.
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Siemens Energy inaugurates region’s first one-stop-shop for the energy industry in Saudi Arabia n Siemens Energy completed the expansion of its hub in Dammam, increasing its local capabilities in the energy industry, in line with the Kingdom’s Vision 2030. The facility, which now covers significant parts of the energy value chain, is the largest of its kind in the region and is ready to support neighboring countries. Saudi Arabia’s demand for electricity is rising with the growing population of around 34mn. The Kingdom faces a pressing demand for power that is estimated to grow over 30 percent to 120GW this decade. “The technology delivered by this facility will support the country in its push for sustainability and decarbonization amid an expanding energy industry,” remarked Mahmoud Sulaimani, Managing Director, Siemens Energy,
Saudi Arabia. Now the 75,000sqm industrial hub, which houses around 300 employees, has supplemented its manufacturing capacity with a fully integrated service value chain that includes technologically advanced repairs. Siemens Energy will continue to invest in this facility. It has already invested more than 100mn Euros. Located in Modon 2nd Industrial City, the SEDH (Siemens Energy Dammam Hub) is designed to manufacture a combination of up to 10 heavy-duty Gas Turbines and around 40 Compression Packages annually. Having delivered 26 compressor trains for strategic Saudi projects already, the facility will deliver more compression trains for other strategic projects in the Kingdom over the next few years. The
local supplier development program at SEDH is part of the Siemens Energy initiative to increase local content. Siemens Energy works with local suppliers to help them meet international standards and enhance the in-country supply chain.
Volvo Cars to focus on fast charging for next generation of fully electric cars n Al-Futtaim’s Trading Enterprises, the exclusive distributor of Volvo Cars in the UAE, recently announced the automotive brand is rapidly moving towards becoming a fully electric car company. Volvo Cars is bringing battery cell technology development and production closer to home and aims to tailor its future batteries to the needs of its customers: a longer range and faster charging times. It will do so by improving lithium-ion battery technology on its forthcoming second generation of electric cars, starting with the pure electric successor to its XC90 flagship, a press communiqué indicated. Current charging times are expected to be cut almost in half by mid-decade, thanks to better battery technology and continuous improvements to software and fast-charging technology. “By simplifying the design and integration of our battery cells, we can reduce weight and maximise space, allowing for considerable improvements in battery capacity, range and charging times,”
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commented Henrik Green, Chief Technology Officer. Volvo Cars will also continue to focus on the responsible sourcing of batteries, including through a wider use of blockchain technology. By working more closely with its partners and suppliers, Volvo Cars will strengthen its responsible sourcing even further. Volvo Cars’ electrification roadmap is firmly focused on vertical integration, involving the in-house design, development and production of batteries, e-motors and relevant software in collaboration with strategic partners. The aim is to achieve as many synergies and efficiencies as possible throughout the entire battery supply chain, the press statement concluded.
Etihad raises US$ 1.2bn in ESG loan n Etihad Airways has raised US$ 1.2bn in the first sustainability-linked loan (SLL) tied to environmental, social and governance (ESG) targets in global aviation. “Financing our operations in a way that supports both our planet and the people in our local communities is the natural next step of our financing strategy,” observed Adam Boukadida, Chief Financial Officer, Etihad Aviation Group. “Through our Greenliner programme, we are pursuing multiple sustainability-related initiatives at Etihad Airways to improve the environmental footprint of aviation, and green financing is a key part of our strategy,” he added. The loan terms are linked to multiple Key Performance Indicators (KPIs) that are tied to the following ESG initiatives and will be independently assessed: “HSBC and Etihad are committed to working in partnership to find innovative ways to finance industry
Martin Tricaud, Adam Boukadida and Abdulfattah Sharaf.
while also protecting the planet,” remarked Abdulfattah Sharaf, CEO, HSBC UAE & Head of International Markets. “FAB is committed to empowering the UAE’s priority sectors to grow and become more sustainable through our impactful finance solutions,” commented Martin Tricaud, Group Head of Investment Banking, First Abu Dhabi Bank.
Saudi Arabia’s Hafil increases efficiency with Infor EAM n Infor, the industry cloud company, recently announced that Hafil Transportation Company, the region’s biggest transportation company, has deployed a suite of Infor solutions including Infor EAM, to help enhance efficiency across its operations in Saudi Arabia. Hafil has a fleet of over 12,000 vehicles, a fully equipped workshop and service centres and depots throughout the kingdom, making it one of the Middle East’s largest bus and coach companies. To enhance its performance, Hafil, which dispatches 5,000 to 8,000 buses daily, selected Infor EAM, a best-in-class enterprise asset management software solution with built-in functionality and the flexibility to integrate with other applications. “With Infor EAM, we are able to manage our fleets more effectively, track vehicle and fuel expenses, and use the data to create more efficient routes and increase operational competences,” said
Akram Al-Shehri, Hafil Transportation Company’s IT Manager. “With Infor EAM, Hafil is able to track and manage its fleets, whilst capitalizing on opportunities for productivity and
cost-per-mile savings. The company will now be able to run a lot more smoothly,” commented Khaled AlShami, Infor’s Director of Solutions, Middle East & Africa.
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DSO Authority partners with Moro Hub to accelerate digital transformation n Dubai Silicon Oasis (DSO), the integrated free zone technology park, recently signed a Memorandum of Understanding (MoU) with Moro Hub (Data Hub Integrated Solutions), a subsidiary of Digital DEWA, the digital arm of Dubai Electricity and Water Authority (DEWA), to further facilitate the delivery of Smart Services at the high-tech park. The MoU was signed by Eng. Muammar Khaled Al Katheeri, Executive Vice President, Engineering and Smart City, DSO, and Eng. Marwan Bin Haidar, Vice Chairman & Group CEO, Digital DEWA at DSO’s stand at WETEX 2021, which is organised at the Dubai Exhibition Centre, Expo 2020 Dubai. The signing ceremony was attended by Matar Al Mehairi, Board Member, Digital DEWA, Mohammad Bin Sulaiman, CEO, Moro Hub. The partnership between DSO and Moro Hub will foster business advancement for both parties and enable them to emerge as leaders in innovative technology and its implementation in line with the Dubai 10X initiative that envisions Dubai to be ahead of the world by 10 years, a press
communiqué stated. “With this agreement, DSO brings us closer to fulfilling our commitment to enable Dubai 10X and support the vision of the UAE centennial 2071 that aims to make the UAE the best country in the world,”remarked Engr. Marwan Bin Haidar. “Dubai Silicon Oasis is keen on boosting its smart city solutions and digital services to facilitate access and usability, boosting ease of doing business and positioning Dubai and the wider UAE as a preferred destination for technology-focused business and investments,”commented Engr. Al Katheeri.
Dubai CommerCity collaborates with Shopify Plus Agency Creative971 n Dubai CommerCity has partnered with Creative971, a Dubai-based leading Shopify Plus Agency, to support the growth of the e-commerce market in the GCC and Middle East and North Africa (MENA) region by helping businesses establish their own online stores or digitally transform those. Dubai CommerCity’s 360-degree on-site guidance for e-commerce businesses supported by Creative971’s expertise in e-commerce website design and development will provide new and existing businesses who are planning to open or optimize their own web store with a robust approach to launch and scale their e-commerce business. “These partnerships will contribute to enhancing our services and offerings, and support us in providing our customers with an ideal ecosystem which offers them full support throughout the process
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of setting up their e-commerce business,” remarked DeVere Forster, Chief Operating Officer, Dubai CommerCity. “Our partnership with Dubai Commercity, being the first and leading e-commerce free zone in the region, is essential, as we are both working with clients that focus on e-commerce,” stated Julia Jackle, CEO &amp; CoFounder, Creative971. Creative971 provides an array of
services including design, software and data integration, training, web development, digital marketing and app development. Dubai CommerCity is the first and leading free zone dedicated exclusively to e-commerce. With an area covering 2.1mn sqft and an investment of around US$ 1bn, it is uniquely designed to support new and existing e-commerce businesses across the MENA region.
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AUTOMATION & MATERIALS HANDLING
Customised Material Handling solutions are indispensable for the future of the industry Acme enables businesses to improve operational efficiencies, automating the handling of intralogistics functions and providing them end-to-end visibility and control of their material flow.
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he stakes are high for the Logistics & Supply Chain sector and its efficacy and capabilities hinge on technology and innovation. Thus, more and more companies are looking to materials handling automation to improve processes, streamline shipping operations, and lower supply chain operating costs. That is a given and indispensable for the industry’s survivability. In a warehouse environment, material handling is commonly defined as the movement, protection, storage and control of materials and products throughout manufacturing, warehousing, distribution, consumption and disposal. The process incorporates a variety of manual, semi-automated and automated equipment and systems that allow the supply chain to work efficiently. When used properly, material handling can improve multiple systems, processes, methodologies, customer service standards and inventory management. Acme Intralog is one of the leading material handling & warehouse automation solution providers in the Middle East, developing tailor-made approaches for complex needs. Founded in 1975, Acme provides bespoke systems and process optimisations solutions for customers across multiple industry verticals through bespoke sortation systems; case storage and retrieval solutions while providing maintenance support throughout the GCC.
Following Acme’s participation as a key exhibitor in the biannual Materials Handling Middle East 2021 Exhibition staged in Dubai in early November, Navin Narayan, CEO, spoke exclusively to Global Supply Chain on an array of subjects ranging from the company’s current product offerings, the introductions of new ‘Colour-Pick’ technology, how e-Commerce is driving his business and expansion plans for the future. Global Supply Chain (GSC): Give us the brief lowdown on Acme and how do you continue to stay relevant in a highly volatile sector? Navin Narayan (NN): Acme develops tailor-made, fit for purpose solutions for customers across multiple industries including Retail, E-commerce, FMCG, Food & Beverage and Pharmaceuticals. One of our key advantages is that we are rooted in the UAE. Over the years we have continuously adapted and extended our offering based on our regional customers’ requirements. We have built a full-fledged design and manufacturing facility in Jebel Ali Free Zone, which allows us to be highly responsive and develop new solutions right here in the UAE that are in tune with the needs of the regional market. GSC: How has automation and digitalization evolved in a pandemic ridden era for the logistics / materials handling / automation sectors? NN: The pandemic has definitely accelerated the adoption of
automation solutions. Our region has been relying heavily on manual labour for material handling and warehouse operations which were challenged as Covid-19 hit us all. New regulations for social distancing and drastically increased customer demand when it comes to delivery accuracy and speed made it impossible to stick to the status quo. To remain competitive and to reduce operational costs, increased efficiency is key and this cannot be achieved by merely adding more human resources. Our customers across various industries needed to implement new systems that can optimise their throughput or handling speed fast in line with their customer demand. This is where digitalisation comes at play as well, particularly for retail, e-commerce and groceries. The last mile has increasingly been digitalised for these sectors since last year in line with the end consumers looking for an easy process for ordering from home. Automation of the intralogistics process helps to significantly improve order and inventory accuracy, reduce order processing times at the same time substantially reduces the costs of order fulfillment. GSC: Acme recently introduced ‘Colour-Pick’ technology to upgrade warehouse efficiency. Please elaborate. NN: Limited storage space and increasing, yet fluctuating demand are common challenges particularly for the e-commerce industry. Since the pandemic, this sector started
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struggling even more to meet their customer’s expectation on delivery times. Kardex Remstar’s Colour-Picking is a scalable, pick-to-light solution that guides multiple operators through the picking process using coloured pickand put-lights allowing businesses to
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add or reduce labour resources to meet current order demand. By doing so, customers can scale their demand and avoid the need to build extensions, new facilities, or to outsource. Overall, Colour Picking ensures higher throughput and maximum labour efficiency in the
warehouse with up to 70% space, and a ROI of less than 18 months. It is a team picking philosophy with high throughput and dynamic workflows. Using multiple workers in one zone, multiple batches of orders can be filled at one time to achieve higher throughput. A further advantage is that a ‘Colour Pick’ solution can be easily implemented quickly without needing years of planning and commissioning. GSC: Do you see a greater focus and orientation towards technology going forward? NN: Businesses in the Middle East have been a bit slow in adopting technology in form of automation solutions in comparison to the rest of the world. However, with the pandemic increasing manpower costs as well squeezing overall operational margins most businesses have begun to realize the value of implementing automation technologies in their production and distribution lines. We have seen a considerable uptick in customers implementing Industry 4.0 solutions and are confident of this momentum continuing over the coming years. Besides, government initiatives such as operation 300bn and Dubai Smart City will further push for technology adoption across all industries as businesses focus on improving their bottom line by reducing operational costs. GSC: How is the surge in e-commerce changing the fortunes / bottom-line for Acme? NN: We have seen the E-commerce industry in the GCC grow at about 36% over the last year, which meant two changes: increased order volume and shorter delivery windows. Recent studies show that over 96% shoppers expect to receive an ordered product within the same day, if not the next 30 minutes, while in 2019 consumers were fine with 4-5 days delivery windows.
AUTOMATION & MATERIALS HANDLING
Most e-commerce companies and logistics operators have initially focused on improving their last mile service to accommodate the rising demand. Now that this has improved substantially, businesses are now focusing on enhancing their intralogistics operations. For us at Acme this means a rising demand for scalable, high speed order fulfilment solutions, where technology helps improve accuracy and cost efficiency. And businesses are increasingly looking for local partners who can tailor a solution that caters to regional nuances. Currently over 30% of our projects are catering to e-commerce fulfilment solutions for regional and international players who are expanding their regional fulfilment capacities. GSC: Expand on the importance of factory floor safety solutions from an Acme perspective? NN: Studies show that every financial resource a company invests in health and safety in the workplace generates a return of 2.2 times more. We have always tried to emphasise the importance of safer factory floors. Every kind of automation we provide helps increase safety to some extent. Our solutions are inherently designed to provide added operator safety as well as product safety in terms of minimized product damage too. We provide robots and vacuum handling systems that help with ergonomic lifting of heavy objects, reducing potential musculoskeletal injuries as well as accidents that manual handling may cause. By using automated or semi-automated solutions businesses can reduce injuries caused by repetitive tasks on the shopfloor and use valuable manpower resource on other value adding activities. In this region, we have also seen an increase in demand for factory workplace safety products like fences and lock systems. Through our partnerships with Axelent and Pizzato we are able to cater to such needs and provide state-of the art modular
industrial fencing and safety devices such as safety switches, hinge switches and antitampering devices with RFID technology to further assist in making environments where man and machine are working together safer. GSC: What are your short and / or long-term expansion plans for the region? NN: Our core focus at the moment is to be closer to our customers. We are moving ahead with setting up operations in Saudi Arabia to be able to provide maintenance support for our existing customers as well as new projects that we are currently executing in Saudi Arabia. We have recently started operations in India and look forward positively to participating in the fast growing Indian market by providing automated intralogistics solutions that are designed and manufactured here in Dubai for the Indian market. In addition to this, through our sales office in Germany we look forward to delivering EU specification automation components to European System Integrators that are looking for reliable high quality equipment. All the while, we will continue to invest in our R&D facility here in Jebel Ali to develop new and innovative solutions that are designed keeping the region in mind.
GSC: What opportunities in store and challenges do you foresee going forward? NN: One of the key challenges we see in the near term comes from the global supply chain bottleneck that has exacerbated due to the pandemic. In addition to this, the global shortage of chipsets is putting substantial pressure on manufacturers when it comes to delivery of solutions to the market. We hope these concerns subside soon and that the global supply chain can go back to smooth operations. The greater push to providing omnichannel offerings by retailers will definitely increase demand for automation in warehouses and an increased focus on Industry 4.0 solutions. Furthermore, with an increased focus on industrialization in the region from the government such as Operation 300bn, the UAE’s Industrial Strategy, as well as Vision 2030 of Saudi Arabia, we expect added demand from manufacturing industries for Automated Material Handling Solutions. GSC: What trends do you foresee in intra-logistics automation for the region? NN: Over the last few years, larger businesses have begun to invest in intralogistics automation to improve operational efficiencies. Automation was primarily a matter of scale. However, with modular and scalable solutions now available and manufactured regionally, we see a greater demand for warehouse automation coming from small and medium sized distribution centers. In addition to this, with the improvement in last mile solutions there will be a
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greater demand for micro-fulfillment centers that cater to pharmaceutical as well as grocery retail. There will also be added focus on goods to person picking solutions that can reduce order fulfillment time as well as costs. GSC: In June 2020 Acme Intralog became an exclusive distributor of Leuze sensor products in the region. How is the brand faring? NN: Leuze has an excellent range of industry leading sensor products that cater to a wide range of
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manufacturing as well as intralogistics applications. By partnering with Leuze, we are not only able to support regional businesses with spare part requirements for their operational machinery, but also able to provide complex solutions with special focus on intralogistics and packaging industries. With excellent support from the team at Leuze, we have been able to work with factories in the region and provide them specialized automation solutions that require precise and robust sensing technology.
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GSC: Is Acme planning to take on new partnerships and representations? NN: We are always looking for strategic partnerships that allow us to enable regional businesses to thrive and improve their processes. We have recently started a partnership with the collaborative robot manufacturer Hanwha and OnRobot, who are market leaders when it comes to grippers for collaborative robots. That being said, we are also more heavily investing in our own R&D and introducing more products manufactured in the UAE as this allows us to react faster to our customer’s needs and create customized solutions that take into consideration regional requirements. GSC: What is the Acme message at Materials Handling ME (2021)? NN: Following the great UAE government initiative, I guess our main message this year is ‘Make it in the Emirates’. We are focusing heavier on showcasing products that have been developed and manufactured by our capable team of engineers, software developers and technicians. Besides, we will also continue showcasing the latest technology from some of our global partners. It’ll be worth your while visiting our stands, that I can assure you.
GSC: How is Acme currently faring and how does that compare with 2020 and what is your outlook for the remainder of 2021? NN: With the set up of our R&D and manufacturing facility in 2019 in Jebel Ali, we have seen a steady growth in order book for warehouse automation solutions. Both 2020 as well as 2021 to date were exceptional in terms of revenue growth. We see the remainder of 2021 and 2022 having the same upward tick when it comes to new exciting projects. We are confident that the current momentum with regard to adoption of smart technologies by regional businesses will continue in the long term.
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GSC: What is your vision for Acme going forward? NN: Our vision for the past years has been to enable regional businesses to radically optimise their manufacturing, supply chain & intralogistics through cost-efficient automation solutions that are fit for purpose and drive better revenue generation. I do feel even stronger about this vision for the
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future with new Industry 4.0 technologies evolving and our capabilities to cater to custom requests better every year. Being rooted in this region as long as we have, we have built strong connections with regional customers and want to continue helping them and our region to thrive. Our mission is to help support businesses as they incorporate smart technologies and to drive the fourth industrial revolution in the region.
ALS LOGISTIC SOLUTIONS
Reinforcing a legacy of providing premium specialist automation solutions Leaving an indelible mark with the latest technologies in Materials Handling, Cargo and Car Park Systems With its remarkable track record and stellar performance, ALS Logistic Solutions is now well on course to expand its operations with planned new subsidiaries across the GCC and localizing some of its products to meet regional demands and requirements.
Walid Khoury is the Group Managing Partner & Senior MHS Consultant, ALS Logistic Solutions, based in Dubai. Walid Khoury graduated with a ‘Master of Science in Engineering (MScEng)’ degree from St. Petersburg State University and has over 20 years of experience in the Logistic & Aviation industries, including Project Management and Equipment Fabrication, airport systems and design consultancy for Automation Projects. Walid Khoury was appointed as General Manager in 2001 and is currently managing all major business in the ALS network from its Dubai operation with upgraded offices to accommodate the growing number of staff, plus other offices in Germany & Malaysia & Singapore.
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ALS LOGISTIC SOLUTIONS
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here is now increasingly an accepted consensus and principle that processes and functions that involve handling materials, logistics and supply chain should and must be automated when possible. Over the past several years, there has been virtually an exponential growth in technology and sophistication in robotics, automation and materials handling. These innovations will improve operational efficiency, increase responses, deliver consistency and predictability, and importantly result in substantially lower operating cost. With more than three decades of trail-blazing experience, pioneering services provider ALS Logistic Solutions has reinforced its expertise in ergonomic spacesaving solutions for warehouses and parking areas among many other professional products and services. To get the lowdown on the range and extent of its operations and performance, Global Supply Chain conducted an exclusive interview with Walid Khoury, Group Managing Partner, ALS Logistic Solutions. Global Supply Chain (GSC): To begin with, briefly what are the core activities, offerings, and specializations of ALS Logistic Solutions? Walid Khoury (WK): ALS Logistic Solutions, founded in Germany over 30 years ago with branches in UAE, Malaysia, Singapore, and Germany is one of the leading suppliers of logistics automation with a worldwide footprint. Our material handling and automation portfolio covers a full
range of solutions from manual operations to fully automated solutions, consisting of, but not limited to systems for Air Cargo Handling, Modular Warehouse Equipment, Industrial Facility Automation, Express Handling, and Car Parks. Our dedicated crossdisciplinary consulting team designs and implements solutions that adapt to the customer needs and market requirements providing optimal material flow that increases efficiency and productivity across various industries. GSC: How is ALS evolving in the shadow of Covid-19? How have your priorities changed during the pandemic? WK: During the Pandemic, we continued to support all the businesses and clients across our network and managed to keep every member safe and healthy. Being a global solution provider with regional and local presence differentiated our offering as we were quickly able to respond to the customers’s needs especially with the difficult travel and workplace restrictions that continue to date. ALS is very well positioned to help customers in their logistics journey helping them reduce costs and improve service levels. GSC: In these times do you have a sense of greater gravitation by companies and LSPs (Logistics services providers) towards automation/digitalization? WK: Automation will play a vital role in enabling organizations to meet evolving intralogistics complexity. As customers’ demands for choice and speed continue to grow, along with environmental concerns, trends such as anticipatory demand will
be facilitated by the current shift away from manual processes towards the smart connected warehouse and facilities. GSC: Do you see a greater focus and orientation towards Automation going forward? WK: Workforce shortages required companies to look for opportunities to automate processes and reduce human involvement. Furthermore, the pandemic accelerated investments that many organizations had already made in automation. Companies are looking to automate a larger share of their processes and automation, once limited to larger facilities is now being implemented in warehouses and facilities of all sizes. Automation is the best way to improve reliability and efficiency and to match the ever-growing expectations of end customers. The cost of automation solutions has also decreased over recent years, and effectiveness has improved, leading to large, fully automated systems being deployed in a variety of industries beyond the historical courier express companies and airport baggage handling.
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GSC: How is technology and automation meeting working / operational protocols in these pandemic times? WK: Companies are now exploring the growing importance of technologies, such as augmented reality and artificial intelligence, and the role these platforms may play in evolving operational challenges. Well-structured organizations will improve their technology level, but new implementations might not work without the strict implementation of certain operational basics. Partial improvement will surely increase the efficiency but will not change the processes drastically if the changes are not implemented across the board.
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GSC: Air Logistics is an important component of your operations and ALS has a strong footprint in this sector. Please elaborate. WK: We are an engineering specialist in the automation of operations and processes in Air Cargo Terminals since ALS’s inception. Our large network within the industry and our collaboration with international airlines and airports enable us to design and implement efficient solutions based on the latest trends and developments in cargo handling in the aviation industry. With ISO 9001 standards, ALS qualified engineering and project are experts in Project Design Planning, Air Cargo
Terminals design, Planning Design Simulation, full or partial IT for automation, Installation / Training, and After Sales Support. GSC: What are some new technologies that have emerged in recent times that are essentially a game-changer for LSPs in Covid-19 times? WK: Since the pandemic started, many LSPs decided to implement full or partial automation process handling in response to the labor shortages and to handle the increase in customer demands which most companies were not ready for. The improvements in handling do not only apply to the automated storage and retrieval processes but are also
ALS LOGISTIC SOLUTIONS
related to labor efficiency and the implementation of IT packages that deliver value stream and process improvements that target these challenges. GSC: What are your short and/ or long-term expansion plans for the region? WK: The Middle East is an interesting place to invest. The region is diversifying beyond oil, and economies are much stronger than before. From Saudi Arabia’s vision 2030 to more specific and targeted initiatives in Egypt and the GCC, ambitious and cutting-edge projects are becoming a reality. The commitment of the countries remains strong and the increased infrastructure upgrade
in the GCC countries will help the regional economy in the long run. We are planning to open new subsidiaries in the region, starting in Saudi Arabia, which is a very dynamic and exciting market for us. We are exploring localization of some of our products which will help improve service levels and reduce lead times. ALS is also interested in expanding our business in Asia further, with India being our next focus area since we see many opportunities in Material Handling and Storage Systems’ Automation. This follows our successful Asian expansion in Malaysia and Singapore. GSC: What opportunities in store and challenges do you foresee going forward? WK: For many years, the fully
automated intralogistics facilities were the large sortation hubs of courier express due to the volume handled and the relative uniformity of goods’ sizes that involve handling materials, logistics and supply chain should and must be automated when possible. Nowadays, with convenience and customer experience at the forefront of retail logistics trends, warehouses and distribution centers have had to adapt to the evolving consumer landscape. The recent sharp rise of e-commerce has played a huge role in shaping the way warehouses operate, as have consumer expectations for speed of delivery, customization, and product availability. To meet the demands of fast-paced, e-commerce-driven retail operations, warehouses will continue to automate their processes. GSC: An E-commerce surge as we are witnessing now is clearly a boom for your business. Is that the case with ALS? Please elaborate. WK: Trends that were emerging before the Pandemic–ordering more online, smaller order quantities and faster fulfillment needs–have accelerated enormously because of customer behavior that was forced from going to the store to ordering online. The surge in demand for e-commerce services creates a good opportunity for our company. ALS and our partners have been working with many pharmaceutical and food retailers to help them match the right automation system to their distribution model. With the Micro Fulfillment Center (MFC), we can offer an e-commerce solution connected to pharmacies and supermarkets.
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This turnkey system provides a complete solution for a relatively lower cost than the rebuilding of the entire supply chain. Orders are rapidly processed and ready for pick up or delivery within minutes. Last-mile costs are also comparatively low with our system due to the pick and pack strategy. There are clear signs that consumer expectations are evolving. The focus is no longer exclusively on next-day delivery, if not on the same day. ALS provides the most suitable fulfillment solution for e-commerce for online groceries, wholesale retail, pharmaceutical, and fashion industries. GSC: Describe your partnership with Germany’s Goldhofer Airport Technology? WK: ALS has a long-standing partnership with Goldhofer the global leader in heavy-duty aircraft and apron handling special vehicles. Goldhofer offers a complete range of aircraft tow tractors for handling aircraft in every weight range. In response to the recent increases in demand for airport logistics in the Middle East & Africa region, ALS and Goldhofer opened a joint representative office and regional logistics center in Dubai in 2018. From their new representative office, Goldhofer provides customers with more intensive local support including a dedicated parts store that allows them to attend GCC and Africa clients at the maximum speed. The new sales and service center is located in our office in Dubai. Our partnership with Goldhofer Airport Technology is a long-term relationship based on mutual trust and commitment and we are very happy to support them to be the market leaders in the Middle East and Africa. GSC: What trends do you
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foresee in intra-logistics automation for the region? WK: Companies are looking to transform efficiency through highly focused collaboration between automated systems, IoT IT solutions, and an increasingly skilled workforce. The workforce of the future will no longer be required to undertake repetitive mundane activities. These tasks will be handled by automated systems, potentially 24/7; staff instead will require new skills and expertise to undertake far more complex and valuable roles throughout the supply chain. Automation will play a vital role in enabling companies to meet evolving intralogistics complexity. As customers’ demands for choice and speed continue to grow, along with environmental concerns, trends such as anticipatory demand will be facilitated by the current shift away from manual processes towards the smart, fully automated warehouse and facilities. GSC: Are you planning to take on new partnerships and representations? WK: ALS is open to partnership with leading companies within the Air cargo, Car Park, and Material Handling Industry. We have long-term fruitful cooperation with our existing partners, and we believe it turned out successful for all of us.
Exploring business opportunities with ALS will help companies market the products in the Middle East, South East Asia, and Europe. Recently we have partnered with Australian Turntables, a world-recognized ISO accredited company specializing in rotational movement systems. They provide turntables to a wide range of industries. ALS expert engineers will support Australian Turntables from the initial concept design of a project through to completion and beyond. GSC: How big is the ALS footprint in the pharma / food / cold chain sector? WK: ALS is abreast with regulatory requirements in the region with specific regulated industries like pharmaceutial, cold chain, and food. Shipments of Pharmaceutical and sensitive products require specific equipment and automated storage facilities. Transporting healthcare products by air demands a rigorous logistical approach. If mishandled, the intactness of these products can be compromised by temperature changes during transportation. ALS designs storage facilities for sensitive items, where material handling systems are connected with smart technology allowing us to weigh, dimension, and scan the items and share the information with all parties including regulatory authorities. Companies like Al Dawaa Pharmacies in Saudi Arabia benefited from this expertise already and currently, they are the market leader in Pharmaceutical distribution in the Kingdom of Saudi Arabia. We have also partnered with KNAPP for the Micro Fulfillment Centers for Carrefour in the region and working on other similar large
ALS LOGISTIC SOLUTIONS
clients to fulfill their ambition in automating their processes. GSC: How did ALS currently fare in 2020 and what is your outlook for 2021? WK: 2020 was a year of unique challenges in terms of health and
the economy, however, ALS continued its growth trajectory across all divisions and regions. Despite the ongoing Covid-19 pandemic, we had market success and positive momentum provided by the global economic
recovery. For 2021, we remain positive in the overall outlook towards ALS growth and we will continue to pursue opportunities and business diversity to make sure we grow stronger.
NOVEMBER 2021 37
MAN TRUCK & BUS
MAN Truck & Bus debuts its New TG Range in the Middle East New dependable range adapted for wide array of applications across diverse geographies, topographies and operating conditions
M
AN Truck & Bus recently introduced the New TG range for its Middle East, Africa and Latin America markets, the company’s largest sales territory. This pioneering range, the outcome of intense research and empowered with smart sophisticated technologies and telematics, was earlier unveiled virtually in Europe and worldwide in Q1-2021. This comes after a year of the global launch of the New Generation Truck range. The development of the new trucks was based on customer feedback, to provide them vehicles that meet their operational requirements – for today and for the future, the manufacturer said in a press communiqué. MAN Truck and Bus hosted a special press preview of the New TG3 Range introduction at its Middle East Headquarters Offices in JAFZA where a pose of specially invited journalists got a look, up close and personal of the new sophisticated, sturdy and durable vehicles. The assembled scribes were also provided the opportunity test drive the latest offerings from the renowned
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German manufacturer of premium commercial vehicles that have evolved out of extensive research and which meet exacting standards and the highest regulatory requirements. The new range represents MAN Truck & Bus as a provider of sustainable transport solutions. It underlines the high competence of MAN’s engineering team that has always delivered robust, reliable and efficient vehicles, the note continued. The site has been developed by entrepreneur and industry professional Andrei Geikalo, a former commercial director in the heavy lift and project cargo sector.
New Range
The New TG Range wears a distinct look with a new cabin that makes it stand out among its competitors. The new look is both visually appealing and functionally efficient. These vehicles offer highest levels of reliability and efficiency for diverse applications and operating conditions. “The launch of the new range is a milestone moment for all of us. It reflects MAN’s focus on helping our
customers in their business. These trucks are built to be highly reliable; able to withstand rugged use over their typical operating life, while delivering best-in-class performance. As a result, customers get the optimum uptime and attractive totalcost-of-ownership,” affirmed Joerg Mommertz, Senior Vice President, Head of Sales Area Middle East, Africa and Latin America (MEA & LA), MAN Truck & Bus.
Assurance
“We have on offer a 3-year warranty on the complete driveline on truck tractor models. We also have service contracts that can help customers in terms of preventive maintenance, predictable costs, optimised vehicle uptime, roadside and on-site assistance,” he continued. With the introduction of the new trucks, MAN also reaffirms its commitment to ‘Simplifying Business’ of its customers. The company aims to do so with effective after-sales for service and parts; a range of digital and financial solutions; and business
MAN TRUCK & BUS
advisory, besides the reliable and efficient products. Among the digital solutions on offer is the telematics suite from MAN. This is a powerful enterprise grade solution for customers and it is designed to support improved levels of fleet efficiency and safety, and reduce environmental impact.
Greater efficiency and economy
The engine range remains robust, reliable and efficient as before. It will continue to deliver consistent highperformance over long duty cycles. MAN is the only truck maker to offer engines that conform to emission norms ranging from Euro 2 to 4, 5 and 6d depending upon the selected model. Substantial improvements in the areas of maintenance and service can reduce service life costs. These trucks also offer significant payload advantages for weight-sensitive application sectors.
Competent and personal partnership
Partnerships have been critical to MAN’s successes and its importer partners have done a commendable job to achieve customer satisfaction. The New TG Range also follows product ethic which is oriented towards client customization. This allows for a new MAN TGX, TGS, TGM or TGL configuration series to be put together that fits the exact transport task, using flexible configuration options.
Optimised Uptime
The operational efficiency of a truck is largely dependent on the parameter of reliability and how easily it fulfills its task, each day. MAN endeavours to make the tried and tested even better with the New TG Range. These trucks will perform just as before as the power-train retains its characteristics from the previous generation. The new simplified and powerful
electronic architecture supports the trucks’ functionalities even better and makes the New MAN Truck Generation particularly fit for the future.
Excellent driver fit
In order to optimise the work place in the truck, their performance and motivation need to be placed at the forefront. This is why the new MAN Truck Generation sets standards in terms of user-friendliness, optimum ergonomics, operation which is more intuitive and reliable. There is also the aspect of optimum space, a well-conceived storage concept and perfect sleeping comfort. The ultimate achievement is a driver who is well rested, comfortable and alert at all times, which leads to safer and efficient operations each time. MAN ProfiDrive offers additional targeted and practice-oriented training to help drivers with more efficient and safer driving methods.
The new MAN TGX—User endorsed
In addition to its driving comfort, the driver’s workplace with its clearly arranged, fully digital display instruments, the intuitively operable driving and multimedia functions incorporated into the new, generously adjustable multifunction steering wheel and the innovative, distraction-free rotary pushbutton control function of the MAN SmartSelect system.
NOVEMBER 2021 39
SAVOYE MIDDLE EAST
Sustainability Practices and Corporate Social Goals are a priority While the Middle East is on track with implementing digital transformation and technological tools across levels and sectors for the logistics and supply chain industry, leveraging the right technology is imperative, affirms Alain Kaddoum, Managing Director, Savoye Middle East.
G
lobal warehouse automation integrator and software publisher Savoye recently announced the appointment of Alain Kaddoum as its Middle East Managing Director. With Kaddoum on board, Savoye will enhance its long-term strategy to become one of the leading providers of supply chain solutions
40 NOVEMBER 2021
in the region, combining hardware and software according to customer needs such as manual, mechanised, automated, or robotised installations, a press communiqué stated. The changing landscape entails organizations like Savoye to focus on innovative solutions, meet customer demands, improve service, drive cost reductions, and lessen environmental
hazards, asserted Alain Kaddoum, Managing Director, Savoye Middle East, in a recent exclusive interview with Global Supply Chain.
Global Supply Chain (GSC): What immediate implications does the emergence of Savoye in the Middle East have for the regional logistics and supply chain industry?
SAVOYE MIDDLE EAST
Alain Kaddoum (AK): We are seeing an upbeat outlook on the future of the logistics and supply chain sector in the Middle East, one of the regions with the highest growth potential. The region’s ongoing digital transformation is expected to further drive the growth of the industry. With its 35 years of experience, Savoye has begun playing a significant role in the regional sector’s steady development and brings along a range of solutions. Our full range of material handling equipment (MHE), intralogistics, and other solutions helps bring about better management of supply chain systems.
Furthermore, our bespoke supply chain solutions, which combine hardware and software tools, are inclusive of manual, semi-mechanized, mechanized, highly automated, or robotic installations. GSC: As the newly appointed Managing Director for Savoye in
the Middle East, what are your top priorities for the company for the short term? AK: One of my top priorities is to boost the team’s capabilities because I strongly believe that growth starts within the workforce. Empowering employees through trainings, upskilling, and creating a work environment that recognizes and value their hard work will have direct impact on their productivity, and the overall growth of Savoye. Further, it is also imperative to encourage them to continue to be innovative, trust their decisions, and recognize their contributions. When the team feel valued and trusted, their performance will speak for themselves. Savoye’s success is a product of people sharing the same vision, and working together to provide sustainable and innovative solutions to our clients. True growth can be achieved by prioritizing the organization’s strength and capabilities. GSC: How have your priorities been rearranged and what kind of new demands and pressures are being put on your business now in view of the pandemic? AK: From a global standpoint, we are seeing the need for clients to restructure their logistics operations in order to keep pace with the increasing demands particularly from the e-commerce sector. The supply chain and logistics industry is no stranger to challenges, given how big and significant the role it plays in the global market. However, the disruptions caused by the pandemic magnified some of the vulnerabilities of this industry and present new challenges. Coupled with the impacts of the Covid-19 pandemic, other factors currently driving pressure to organizations are the increasing demand for integration of sustainability across operations, the growing e-commerce industry,
and changing trends. The pandemic highlighted the urgency to embrace digital innovations and automation in order to sustain business operation, driving organizations to ramp up their investments on smart technologies. In addition, the increasing sustainability awareness of customers entails businesses to be environmentally conscious in their operations. Automation is now becoming one of the solutions to reduce carbon emission and achieve a sustainable business model. On Savoye’s end, we are also prioritizing further development in innovative and sustainable supply chain solutions to address the challenges and the complexities of logistics operations. As a logistics
Alain Kaddoum has dedicated over six years of his professional career in the intralogistics industry in the Middle East, providing him with technical background on automation and warehouse management, which will be beneficial to Savoye’s daily operations. Kaddoum holds a Bachelor’s degree in Electrical and Electronics Engineering and a Master’s degree in Automatics, Informatics, and Decisional Systems from INP Toulouse, France.
NOVEMBER 2021 41
SAVOYE MIDDLE EAST
solution provider, we need to keep up with the challenges faced by our clients; hence we continue to ensure the right balance of investments in organization, processes and technology. GSC: What opportunities and challenges confront Savoye going forward in the current landscape? AK: The region offers a lot of expansion opportunities for us, especially as logistics and supply chain businesses in the region continue to adopt advanced solutions for more efficient operations. These advanced solutions are key to addressing pressing industry challenges such as the complicated global logistics system that leads to higher charges for product storage, transfer, and management.
Take for instance, at Savoye, we help tackle the complexity of the logistics system through one of our ground-breaking
HAI Robots working in the warehouse.
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solutions, the ODATIO software. This multipurpose solution includes warehouse and transport management systems designed to enhance communication and productivity. Through ODATIO, we enable companies to manage their storage space, ensure the accurate tracking of product arrival and departure, and even calculate the amount of fuel required to ship the goods. Likewise, our order management systems, robotic assistance, and packing machines are helping address the industry’s technology requirements today. GSC: What are your expansion plans for the company for the foreseeable future? AK: On a global expansion point of view, the next challenge for Savoye will be to penetrate the ASEAN region. Besides, Savoye still pursues developing its portfolio of solutions for intralogistics. Savoye recently signed a partnership with company HAI Robotics to integrate
their HAIPICK robots. The partnership with HAI Robotics will allow Savoye to ideally complement its own range of solutions for goods-to-person order preparation.
Indeed, our X-PTS technology being more particularly relevant to meet high-performance needs and large volumes of orders to be processed, the HAIPICK solution, based on HAI Robotics robots, will be perfectly suited to smaller flow contexts.” GSC: How significant is the principle of sustainability for Savoye? AK: Sustainability is critical to Savoye’s overall success. This is why, as a logistics solutions provider, we aim to provide eco-friendly and reliable technologies to our clients such as smart packing machines that adapts the height of the cartons to the height of the content. That concretely means fewer trucks on the road! Why is it necessary for supply chain groups to adopt sustainability
SAVOYE MIDDLE EAST
JIVARO packing machines. as the new corporate mantra? Worldwide, sustainability is taking the center stage. It is here to stay, as such, industry players have to respond accordingly so as not to be left behind. They need to engage in collaborative efforts to reduce the industry’s environmental impact. Moreover, it has been proven that sustainable practices can help reduce cost, increase operational efficiency and, therefore, yield higher net profit. Integrating more efficient and eco-friendly solutions are helping industry players to cut down on their GHG emission. Many are also upgrading their systems to incorporate modern solutions such as those provided by Savoye. During the first half of 2021, we witnessed an increase in the
number of customers looking for eco-friendly technology products and software. The rollout of our JIVARO packing machine, which adjusts the carton size based on its contents, has led to a fewer number of shipments for companies, thus reducing their transportation costs. GSC: As a logistics solutions provider, how is Savoye responding to corporate social management? AK: Savoye’s technological solutions for supply chain groups are helping businesses to reduce their carbon footprint, especially in terms of transport and management. Savoye’s Order Management Systems and ODATIO, both of which are transforming the rigid system of
management in supply chain groups, as well as its packaging technology, the JIVARO machines, have been enabling companies to attain their sustainability goals. GSC: How has the supply chain industry evolved over the years on the sustainability front? AK: In the face of many environmental challenges such as climate change, the logistics and supply chain industry has stepped up its efforts to reduce its environmental impact and integrate sustainable practices into its processes. From manual tasks and usage of different systems, businesses have embarked on the rapid adoption of technological software solutions to improve their processes and enhance organizational transparency.
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SAVOYE MIDDLE EAST
Savoye introduces autonomous robotics in Middle East supply chain HAIPICK solutions is a leading player in Autonomous Casehandling Robotics Savoye, a leading global player in the design, manufacture, and integration of automated and robotics system in logistics and supply chains, has become a partner and integrator of HAI Robotics, world leader in Autonomous Casehandling Robotics (ACR) system. The partnership is poised to bring HAIPICK solution in the Middle East, where there is a notable demand for autonomous technology solutions in the supply chain and logistics sectors.The HAIPICK system features autonomous and intelligent functions such as robots that pick and place
boxes or bins on storage shelves up to five to seven meters high and able to carry up to eight loads to continuously feed goods-toperson picking stations. Further, the solution is flexible and works well even in extreme weather environment.
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Investment in Artificial Intelligence According to industry experts, majority of supply chain organizations will invest in Artificial Intelligence and digital software by 2024. Robotics solutions such as HAIPICK will help companies in the digital transformation across their supply chains, increasing productivity, automating processes, and improving their total operation. Another prominent feature of the HAIPICK solution is that it can be customized to suit different application scenarios, allowing Savoye to integrate it ideally in their own range of solutions for goods-to-person order preparation.
In addition, the HAIPICK solution will further support Savoye’s X-PTS technology, a high- speed shuttle system for stocking and de-stocking lightweight load to enhance the processing of meet repetitive, timeconsuming, and large volumes of orders.
Innovative cutting edge solutions “This partnership with HAI Robotics is another opportunity for us to offer an innovative and cutting-edge solution for supply chain organizations particularly in the Middle East,” affirmed Alain Kaddoum, Middle East Managing Director, Savoye. “The HAIPICK solution complements our in-house solutions like goods-to-person X-PTS Pick Station, LED strip-based put-to-light shelves, INTELIS conveyors, and WMS and WES control software with HAI Robotics mobile robots, allowing us to deliver a distinct solution to our clients in the region,” he continued.
AI and smart software solutions are taking over the supply chain sector and is also increasing competition. Logistics solutions providers like Savoye are establishing their mark in addressing the demand for such unique solutions and opportunities in the market, a press communiqué concluded.
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MOGLIX
The first B2B Commerce unicorn in the manufacturing sector debuts in the UAE Moglix connects suppliers with a fragmented buyer base through its data science-driven technology. The company aims to build a digital operating system in the UAE that is closely aligned with the digital initiatives of the Emirates.
I
ndia’s Moglix, the online industrial business-to-business marketplace, with a network of more than 16,000 suppliers, recently set up base in Abu Dhabi’s Kizad after raising US$ 120 million in its latest funding round that valued the company at US$ 1billion. The company operates out the Khalifa Port Free Trade Zone in Abu Dhabi and plans to expand operations across the Middle East. “We are excited to enter the UAE, a gateway to the GCC and a major hub of global commerce and innovation with a vision to transform into a digital economy,” affirmed Rahul Garg, Founder and Chief Executive, Moglix. Global Supply Chain conducted an exclusive interview with Piyush Malviya, Senior Director, International Operations, Moglix where he spoke expansively on a range of subjects related to the roll out of the B2B e-commerce platform, moglix.ae, that provides a digital catalogue of 500,000 industrial products across more than 50 categories. Global Supply Chain (GSC): For the uninitiated, give us the brief spiel on Moglix? Piyush Malviya (PM): Moglix is one of Asia’s largest and fastest growing B2B Commerce companies. Moglix enables manufacturing and infrastructure companies to transform their end-to-end supply chain, from procurement to distribution. Through our digital platform, supplier and buyer network, and
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logistics strength, we bring down cost, enhance sales, improve operational efficiency, and make the supply chain touchless. We serve over 700,000 industrial items, across over 20,000 pin codes across India, enabling over 800 large manufacturers and over 3000 factories. GSC: As a B2B Commerce unicorn, why did you choose to make a foray into the UAE? PM: We are the first B2B commerce unicorn and have touched the US$ 1billion milestone in six years since inception. We have built successful customer collaboration case studies across diverse industry verticals in India and globally. UAE has a very vibrant domestic economy with strong growth fundamentals. Furthermore, UAE is a hub of international trade and cross-border supply chains in the MENA region.
Two factors have been integral to our decision to enter the Middle East. First, the government initiatives and policy support for digital transformation have been very encouraging. Beyond the regulatory framework to attract tech companies, government agencies in the Middle East are proactive in investing in technology adoption and creating the necessary ecosystem for both individuals and institutions to follow suit. GSC: Why did KIZAD become a
choice of locations for Moglix’s UAE operations? PM: KIZAD is strategically located in the Dubai mainland while being in close proximity to Abu Dhabi. The logistical access to both the emirates is integral to our hubspoke model of supply chain operations in the UAE. GSC: Through Abu Dhabi based Alpha Wave Ventures, you raised a total funding of US$ 220mn and a valuation of US$ 1bn. How did you pull off this deal? PM: Alpha Wave had been tracking and studying Moglix for some time. We are aligned on our vision to add value to the manufacturing sector and they believe that Moglix’s proven tangible ROI model can be scaled globally. We have a common goal to bring innovation and excellence to the manufacturing sector in the Middle East, unlocking growth for suppliers and manufacturers. GSC: Moglix’s objective is to simplify indirect procurement and enable tech-led supply chains—explain? PM: At Moglix, we are simplifying B2B buying processes by replicating the catalog-based buying experience that individuals get in B2C e-commerce. Indirect procurement accounts for 80% of volumes of SKUs at large enterprises but only 20% of value. We want to enable customers to unlock resources, time
MOGLIX
engagements, and cost efficiencies from their non-strategic work of indirect procurement and chase their strategic goals of value creation and business impact. Tech-led supply chains are data-centric. The visibility into clean data makes indirect procurement safer, more agile, and efficient. GSC: How has the response been thus far to your entry into the region? PM: Moglix is already present
Moglix serves 3,000 manufacturing plants across India, Singapore, the UK, and the UAE and counts global manufacturing giants such as Siemens, Yamaha, Bridgestone, P&amp;G, Unilever, and Perfetti Van Melle as its customers. It is one of the largest e-commerce platforms of industrial goods in Asia. Moglix will be collaborating with large manufacturing enterprises
across diverse verticals such as manufacturing, real estate, construction, and finance in the Middle East. We are witnessing good traction in the market. The boom in consumer e-commerce has rubbed off on businesses as well. Since 2018 we have witnessed procurement teams take to B2B e-commerce and tech adoption in a big way in the Middle East. GSC: How has the response been thus far to your entry into the
region? PM: Moglix is already present across diverse verticals such as manufacturing, real estate, construction, and finance in the Middle East. We are witnessing good traction in the market. The boom in consumer e-commerce has rubbed off on businesses as well. Since 2018 we have witnessed procurement teams take to B2B e-commerce and tech adoption in a big way in the Middle East.
across the UAE to simplify indirect procurement and enable tech-led supply chains. They bring together supply chain expertise, tech backbone, and logistics infrastructure to enable lean and efficient manufacturing operations. Moglix is one of Asia’s largest and fastest-growing B2B commerce platforms in the industrial indirect procurement space with a clear first-
mover advantage. The company is building an operating system for manufacturing that provides its customers a full-stack service covering procurement, packaging, and digital supply chain solutions. They are the pioneers of reimaging industrial distribution by bringing the ease, convenience, and speed of e-commerce to B2B commerce.
NOVEMBER 2021 47
MOGLIX
GSC: Describe briefly how Moglix will enable and provide full-stack service covering procurement, packaging, and digital supply chain solutions? PM: At Moglix, we combine our on-ground supply chain expertise with a technology-first approach to B2B commerce processes. Our digital supply chain ecosystem enables us to integrate all supply chain processes from indirect procurement, direct procurement contract management SaaS, warehousing, packaging, and supply chain financing. Customers get visibility and maneuverability to stay in control of their end-to-end supply chain journey from a single operating system. Integrating all supply chain processes into one digital ecosystem we plug in the efficiency leakages that emanate from fragmented supply chain processes. Our digitally integrated full-stack solution transforms stakeholder engagement from being combative to being collaborative. GSC: How will Moglix’s award-winning suite of software products for contract management and B2B Commerce empower the logistics sector on the whole? PM: When supply chain teams have greater visibility into their contract data, they are clearer about their decision-making and thus more agile. The agility in decision-making and execution of contracts is the key to the mobility
of goods, resources, and value. Logistical agility is a result of safer decision-making in supply chain processes. Unilever has in excess of 1500 procurement professionals, operating across over 100 countries, managing US$ 20billion annually. Processing contracts for a geographically dispersed organization was time-consuming and inefficient. iCAT is a cloudbased contract automation tool codeveloped by Moglix and Unilever that has automated the contract management system of Unilever. We worked closely with Unilever to identify the root cause of the issues and co-create the solution to consolidate and automate their contract management process by deploying an Intelligent Contracting Automation Tool (iCAT). iCAT is a co-developed dynamic, cloud- based solution. iCAT makes the contracting process collaborative, efficient, and accurate, increasing the contracting velocity and reducing risk. GSC: What industrial sectors do you cover? PM: We work with diverse sectors including aviation, metals, mining, educational institutions, shipping, construction, and real estate. GSC: Moglix has received investments from leading global venture capital funds. What are the implications? PM: We started six years ago with a firm belief in the untapped potential of the B2B commerce space. Through the course of our journey, we have been able
Moglix recently raised its Series E round of funding led by Falcon Edge Capital making it the first B2B Commerce unicorn in the manufacturing sector. Moglix has also received investments from leading global venture capital funds such as Accel Partners, Jungle Ventures, Venture
Highway, Harvard Management Company, Tiger Global, Sequoia Capital India, and International Finance Corporation and individual investors are Ratan Tata, Chairman Emeritus, Tata Sons; Kalyan Krishnamurthy, CEO Flipkart; Vikrampati Singhania, MD, JK Fenner, and Shailesh Rao, Ex-Google.
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to onboard several globally reputed venture capital funds such as Accel Partners, Jungle Ventures Falcon Edge Capital, and Harvard Management Co. Falcon Edge, with its deep roots in the Middle East and Europe and an understanding of public companies, will guide us through the next steps in our journey towards achieving scale, growth, and a more globally diversified footprint. GSC: What are the opportunities and challenges for Moglix in the UAE and the wider GCC going forward? PM: The macroeconomic fundamentals of the UAE are very strong. While we have launched our business in the UAE recently, we have been building our on-ground capabilities, onsite footprint, and team strength since 2020. We have been customizing our supply chain technology and internal business processes. Moving forward we aim to expand our breadth of offerings in the region and create successful customer collaborations that can serve as case studies for the custom supply chain requirements of different industries. The major challenge for us is the status quo and we are on track to enabling supply chain transformation in the B2B space through the new normal that is emerging. GSC: How concerned are you about competition in your segment? PM: With the combination of onground supply chain capabilities and our technology-first approach, we are uniquely positioned in the UAE. We provide over 50 categories of industrial goods that include both ends of the value spectrum. At 700,000 SKUs, we have one of the largest catalogs for indirect procurement in Asia. Furthermore, our full-stack technology suite has solutions for digital procurement, supply chain financing, contract management SaaS, supplier collaboration, and onsite quality assurance and deliveries. The breadth of our onsite and online offerings means that we do not have
MOGLIX
any competitors. GSC: What are your expansion plans for the region? PM: We have been doing the groundwork in the UAE, building our onsite supply chain capabilities of supplier network, warehousing, and logistics. We are strategically positioned in KIZAD with close proximity to Dubai and Abu Dhabi. UAE is the hub of international trade and cross-border supply chains in the GCC. We aim to leverage our on-ground capabilities in the UAE to scale up our footprint across the entire.
GSC: Apart from the UAE, where do you foresee growth potential and promise in the Middle East? PM: As an economic bloc, the GCC brings together US$ 3.65trillion in economic potential. That is the market size that we are looking at. Digital transformation in the B2B space in the region has
just taken off. There are several businesses that are still totally untouched and are yet to explore what’s possible with a longterm roadmap for end-to-end digital transformation. UAE with its strong growth trajectory, logistical linkages, and supportive business regulatory environment is a strategically important geography in our journey towards building cross-border supply chain corridors across the GCC. GSC: What is your vision—short and long term for Moglix? PM: At Moglix, we are building a full-stack operating system for all industrial supply chain needs including procurement, financing, logistics, and warehousing. The future of B2B commerce as we see it at Moglix is one of a digitally integrated supply chain ecosystem for businesses to plug and play. We are here to shape the future of B2B in the UAE and GCC. Piyush Malviya, Senior Director, International Operations, Moglix
Piyush Malviya is a thought leader in the digital transformation space and brings his diverse experience to transform B2B Commerce in the Middle East. He is presently the Senior Director, International Operations at Moglix. He leads Moglix in the UAE and has extensive experience in B2B e-commerce, Category Management, Digital Marketing, Operations, and Project Management. Before joining Moglix, he has worked with Snapdeal and Indian Oil Corporation. He has achieved remarkable milestones in his 10+ years of industry experience. While in Snapdeal, Piyush spearheaded a first-of-its-kind exclusive online launch for a major Swiss chocolate brand. Rated as an ‘outstanding performer’ by Indian Oil Corporation, he planned and executed various high-net-worth projects at the company. Piyush is an alumnus of the prestigious NIT Tiruchirappalli and IIM Ahmedabad. He is an eloquent speaker at several industry body associations like CII, ACMA, and SIAM.
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MATERIALS HANDLING MIDDLE EAST—PREVIEW
GCC Logistics Market recovering from pandemic-induced downturn— Frost & Sullivan Materials Handling Middle East (2021) to highlight region’s supply chain digitization priorities as a result of increasing e-commerce demand
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new Whitepaper by consultants and research firm Frost &amp; Sullivan says the GCC logistics market is rebounding following a Covid-induced downturn and predicts the region’s surging e-commerce trade will support warehousing courier, express and parcel growth in the coming year.
The 17-page whitepaper–GCC Supply Chain &amp; Logistics: What should your Digitization Priorities be? –reports a recent upsurge in Gulf container volumes, which rose more than 15% in the first half of this year with Saudi Arabia and the UAE accounting for 83% of the region’s 2021 logistics market. Prepared exclusively for Materials Handling Middle East 2021, the region’s leading trade show for warehousing, intralogistics and supply chain solutions, the whitepaper identifies low technology adoption hurdles hampering the GCC sector performance against a backdrop of surging cross-border e-commerce demand and shifting national vision priorities towards logistics performance.
Fragmented Market
The whitepaper reveals a GCC logistics sector fragmented by a
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large number of small and medium service providers with inefficient processes, weak supply chain management practices, and legacy IT infrastructure and systems. “As a result, transportation and warehouse management practices are inefficient due to poor fleet management and the underutilization of logistics assets,” the whitepaper notes. “Historically high investment costs associated with digitalization have led to slower adoption of digital technologies. Freight transportation and last-mile delivery are major sources of inefficiencies in the GCC logistics market. “With increasing competition from global service providers, logistics service providers need to focus on improving operational efficiency and optimize the performance of assets to stay ahead of competition.
Strategy Formulation
“Constant evaluation and redesign of service offerings will become an essential part of strategy formulation to remain competitive and gain market share in the region. Digitalization opens up medium-term growth prospects. Warehousing automation, digital freight platforms, and
MATERIALS HANDLING MIDDLE EAST—PREVIEW
innovations in last-mile delivery are expected to remain focus areas. Customs clearance, port infrastructure upgradation, and e-commerce hubs are some of the segments that will benefit from digitalization,” the whitepaper advises. More than 50 exhibitors will be out in force at Materials Handling Middle East 2021 to unveil their latest technologies and innovations that are solving key challenges faced by warehouse and supply chain managers today. These range from eco-friendly pallets, automated storage and picking solutions, and warehouse mapping using 3D virtual reality, to more traditional equipment such as warehouse trucks, telehandlers, tow tractors, cranes, and packaging.
Scalex Conference
The biennial three-day event, via its dedicated Scalex Conference, will also unveil the latest essential technologies and investment which the sector needs to remain globally competitive and unlock the potential and ambitions
of GCC national visions from AI to blockchain, drones and autonomous vehicles, to supply chain visibility solutions and warehouse capacity expansion. “The industry will discover the intelligent solutions that will optimise the management of time, enhance productivity and facilitate the efficient use of space needed to meet the logistics requirements of the region’s industrialisation and manufacturing visions,” explained Josue Paulos, Show Director at Messe Frankfurt Middle East, organiser of Materials Handling Middle East. “No sector is immune from the need for logistics enhancements. From FMCG to manufacturing and from oil & gas to retail, smart solutions for materials handling are closely interwoven with warehousing solutions to ensure time-sensitive delivery eco systems which open up a whole new arena of business growth possibilities.” Materials Handling Middle East will be co-located with Hypermotion Dubai from 2 to 4 November 2021 at the Expo 2020 Dubai Exhibition Centre.
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BLUE YONDER
Blue Yonder enables NUPCO deliver high-quality, affordable medical supplies Saudi Healthcare Supply Chain Company digitizes demand and supply planning, inventory optimization
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he National Company for the United Procurement of Medicines, Devices and Medical Supplies (NUPCO), a health care supply chain entity serving the Kingdom of Saudi Arabia, has now successfully implemented several digital supply chain solutions with Blue Yonder. Fully owned by Saudi Arabia’s Public Investment Fund (PIF), NUPCO is the leading provider of medical procurement, storage, and distribution services for medicines, devices, and medical supplies to 400 hospitals in the Kingdom.
To achieve its goals related to Vision 2030, NUPCO is working with its hospitals and suppliers to advance toward supporting a new business model and new approach to healthcare, all through the power of integrated technology and connectivity, the company said in a press communiqué.
Manual to digital
The company was looking to move from manual to digital planning processes and to utilize a single Warehouse Management System (WMS) to unify the operations of all its warehouses. The company is therefore leveraging Blue Yonder’s Luminate Planning Portfolio and Warehouse Management System (WMS). With Blue Yonder, NUPCO will now be able to provide low-touch statistical forecasts for all hospitals and increase collaboration with these customers; offer long-term visibility into demand and inventory for planning purposes, increasing customer satisfaction and improve collaboration between internal stakeholders to determine optimal demand and supply plans for hospital customers, according to a press communiqué. “Blue Yonder stood out as the one supply chain solutions provider who
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understood our needs and could provide these end-to-end capabilities on a single platform,” emphasized Fahad M. AlButhi, Chief Operating Officer, NUPCO.
Planning solutions
With Blue Yonder, NUPCO now has planning solutions that can seamlessly connect to its warehousing system, offering confidence and better control of its entire supply chain, ensuring end-to-end visibility of products to right-size inventory and guaranteeing supplies are getting to the hospitals that need these to provide care.
The WMS greatly simplifies the management of complex warehouse operations, provides real-time responsiveness against disruptions, and optimizes every move in its warehouses to improve throughput and agility. “We are looking forward to continuing the relationship with NUPCO as they continue to seek out and implement additional solutions to meet their vision,” commented Johan Reventberg, EMEA President, Blue
Yonder.
Panasonic completes acquisition of Blue Yonder Acquisition values Blue Yonder at US$ 8.5bn Panasonic Corporation recently announced that it has completed the acquisition of Blue Yonder, the leading end-to-end digital fulfillment platform provider. Panasonic has now purchased the remaining 80% of shares of Blue Yonder, adding to the 20% which Panasonic acquired in July 2020. The investment values Blue Yonder at US$ 8.5bn, it was revealed in a press communiqué. Since Panasonic’s announcement to acquire all shares on April 23, 2021, the acquisition has completed antitrust clearance procedures and received approval of regulatory authorities in the US and other countries. This unique end-to-end offering provides customers with unlimited visibility, control, and orchestration, allowing them to pivot operations in real-time, provide superior customer experiences, and deliver more profitable business outcomes. “Panasonic’s Edge technology with Blue Yonder’s AI/ML capabilities combines IoT devices and an AI-powered platform to gather and analyze data more quickly and with greater insight,” explained industry analyst Simon Ellis, Programme Vice President, IDC. This acquisition enhances Panasonic’s own digital transformation and customer-centric focus. The Panasonic Group will shift to a holding company system on April 1, 2022, focusing on strategic businesses in key areas such as providing supply chain innovation and automation. The Blue Yonder brand will be retained and the business will function within the Panasonic Connected Solutions Company. Blue Yonder CEO Girish Rishi and the entire leadership team will remain with the company, the press statement concluded.
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SAUDI ARABIAN LOGISTICS SERVICES (SAL)
SAL signs cargo ground handling agreement with Qatar Airways Cargo Deal is part of SAL’s strategic expansion plan
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audi Logistics Services (SAL), a market leading Saudi Arabian air cargo handler, recently signed a milestone cargo ground handling agreement with Qatar Airways Cargo, to provide comprehensive ground logistics support at Saudi Arabia’s main airports, including Riyadh, Jeddah, Dammam, and Medina. This agreement is in line with one of the Company’s strategic growth initiatives of increasing the number of partnerships with leading regional and global airlines that have high cargo shipping capacities. “This new partnership reflects our growing network of international and domestic relationships across airlines, regulators, government agencies and global industry organizations,” affirmed Hesham Alhussayen, CEO, SAL. “Through our agreement with SAL-Saudi Logistics Services, we will be offering fast and efficient handling for all types of cargo including cool chain cargo at Saudi Arabia’s main airports. SAL and Qatar Airways Cargo share a common vision of customer centricity and service excellence,” noted Guillaume Halleux, CEO, Qatar Airways. SAL is broadening its services within airports and will extend its logistics network to increase connectivity between land, sea and air transportation hubs, economic zones, and major population centres, in line with the Vision 2030 objective of transforming the Kingdom into a global logistics hub, a press communiqué concluded.
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SAL inks Global Logistics Support Agreement with CARS Deal to provide comprehensive logistics support for car shipments SAL Saudi Logistics Services (SAL), Saudi Arabia’s leading ground handling and logistics company, recently signed an agreement with Classic Automotive Relocation Services (CARS) to provide comprehensive logistics support for all its car shipments passing through the Kingdom’s main airports, land ports and seaports including Riyadh, Jeddah, Dammam, and Medina. The agreement was signed at the SAL headquarters with Hesham Alhussayen, CEO, SAL and CARS Managing Partner James McSweeney, Managing Partner, CARS. The companies agreed to collaborate on all logistics services on a comprehensive scale, including first-mile, last mile, custom clearances, warehousing, and end-to-end services,
as well as other bespoke solutions for different shipments. Their agreement covers shipments both within and outside of KSA. For more than three decades, CARS (Classic Automotive Relocation Services) has handled some of the most irreplaceable motorcars in the world. It has been a trusted name in handling the world’s finest automobiles to car shows, exhibitions, trade shows and other global events. “SAL has highly-skilled people to handle this delicate task, the experience and the infrastructure in providing the best logistics and ground-handling services to the highest international standards,” affirmed AlHussayen. “With this partnership we plan to deliver a first-class product in the high-end automotive sector and with CARS expertise and SAL’s vision we are very confident to deliver a successful and long-term partnership between our companies,” asserted McSweeney.
GWC-QATAR
GWC showcases world-class infrastructure and readiness for FIFA World Cup Top UPS International official visits logistics facilities
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trong economic growth and a strategic location are among the key advantages that reinforce Qatar as a trade and investment hub in the Middle East. The country’s logistics market has been growing steadily over the past five years. It is estimated to be valued at more than US$ 7.5bn and is estimated to register a CAGR of more than 7% during 2021-2026. The growth of the market can be attributed to the new expansion plans as the country is hosting the 2022 FIFA World Cup .
With massive investment in infrastructure, numerous new projects, and an e-commerce boom, Qatar’s logistics sector has been expanding rapidly, a development that GWC is committed to support as a leading logistics provider and the Authorized Service Contractor of UPS in Qatar, the mega Logistics Services Provider announced in a press communiqué.
GWC visit
Following the recent launched of its logistics hub in Qatar’s Ras Bufontas Free Zone, GWC welcomed Scott Price, President, UPS International, reaffirming a long-lasting business relationship.
UPS’s leadership visit comes at a time when the nation is gearing up for the FIFA World Cup Qatar 2022 TM for which GWC plays the role of Regional Supporter and Official Logistics Provider. Price began his visit by taking a tour of the GWC Logistics Hub and UPS Customer Centre at the Ras Bufontas Free Zone. This facility with its world class infrastructure, including temperature-controlled warehouses and frozen storage chambers, offers unmatched logistical and last mile delivery options to the aviation, pharmaceutical and events industries including FIFA World Cup Qatar 2022.
GWC Chairman
Price met up with GWC Chairman Sheikh Abdullah Bin Fahad Al Thani and Ranjeev Menon, Group CEO, to discuss the dynamic logistics sector in Qatar, the work being done by GWC and ways to collaborate in the future. “Qatar is not only resolute about becoming a global trading hub, but it is also focused on attracting FDI that will take its logistical capabilities to the next level and GWC is primed to be a part of this journey. With our focus on digital transformation, innovation
and sustainability we have been able to adapt to circumstances with agility and will continue to do so,” affirmed Sheikh Abdullah Al Thani. Expanding on this thought, Ranjeev Menon, Group CEO, GWC, added that the improving logistics environment has played a critical role in making it increasingly easier to import and export goods to and from the state.
Infrastructure investments
“As the transport and logistics sector continues to enjoy infrastructure investments and new projects, there could be more opportunities for the logistics sector. GWC is committed to making processes time-sensitive, quality-centred, customer-driven and efficiency-bound,” asserted Menon. Price also took a tour of the GWC’s flagship Logistics Village Qatar, which has set a new benchmark in logistics infrastructure. “We have witnessed first-hand GWC’s logistic prowess and Qatar’s growing clout as an international trading hub. Working with GWC, we will help Qatar continue to develop and meet its changing needs as it grows within the global economy,” concluded Price.
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ENERGY TRENDS
The Top 10 Oil and Gas Trends to Watch Oil and gas CIOs must be aware of these trends including accelerating digital innovation, rethinking vendor partnerships, and reacting to climate change to ensure that their organizations are agile and resilient in an increasingly complex future, affirms Simon Cushing, Senior Director Analyst, Gartner.
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lobal oil and gas markets are poised between two competing drivers — rising pressure to decarbonize energy provision and increasing demand for energy in developing economies. Executives must find new ways to maintain competitiveness and growth. The unique stresses of 2020 have elevated three business imperatives for 2021 namely optimizing business performance, creating new capabilities and strengthening technology foundations. The 10 key trends in this report, individually and in combination, reflect reformation of the industry in the face of complex growing challenges. CIOs who understand these trends can enable breakout performance that will differentiate them and their organizations in the months ahead.
Trend No. 1: Enterprise capabilities diverge as new business strategies emerge As individual business strategies become more nuanced and differentiated, companies will need novel enterprise capabilities to facilitate implementation. For example, refining companies are exploring biofuel and bioplastics production and deepening their presence in regional petrochemicals products. Oil and gas CIOs will need to
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facilitate these business innovations by incorporating compatible architecture principles in the design of the new enterprise architecture.
Trend No. 3: Digital twins drive transparency and automation Digital twins can deliver value across the business via the increased integration of internal systems, human activity and external ecosystems. A digital twin is a virtual representation that serves as the real-time digital counterpart of a physical object or process. Digital twins are trending because of their capacity to improve the performance of business assets. Digital twins improve operational efficiency, prevent downtime, reduce maintenance and maintenance costs, and allow for more effective collaboration between experts and operators.
Trend No 4: Comprehensive engineering creates intelligent assets To improve outcomes, such as production efficiency, uptime and yield, oil and gas companies are supplementing traditional monitoring and control systems with additional sensors, cloud-based data aggregation platforms, advanced analytics and AI. According to the Gartner 2021
CIO Survey, as many as 50% of oil and gas companies plan to increase investments in analytics, AI/machine learning (ML), automation, IoT and cloud this year. CIOs are responsible for creating intelligent asset capabilities using the increased budgets. third-highest priority for CIOs, and in 2014, there was no specific funding allocated to it. According to Gartner, 85% of CIOs in the oil and gas industry have assumed responsibility for creating a change-enabling technical platform and 79% are working to build a stronger change leadership culture in IT. CIOs will need to reorient themselves toward value delivery by introducing service delivery models that replace cost-based IT silos with value-based IT products.
Trend No. 5: Key vendor partnerships define enterprise platforms Traditionally, oil and gas companies have separate owners for managing IT vendors versus the engineers with whom vendors partner. However, Covid-19 pushed CIOs of oil and gas organizations to reconsider traditional vendor engagement. While oil and gas CIOs continue to take a lead in their relationship with large IT vendors, they are
ENERGY TRENDS
Simon Cushing, Senior Director Analyst, Gartner.
also developing more open partnerships with a small number of key vendors in areas such as engineering.
Trend No. 6: Reliance on AI becomes more widespread and less visible AI/ML are quickly gaining acceptance in the oil and gas industry. Gartner survey data suggests that oil and gas CIOs list AI/ML/analytics and the industrial IoT as the top gamechanging technologies in 2021. Several trends in AI technology and approaches promise to increase AI accuracy and deployment speed and reduce data science effort. As more decisions involve AI input, the reliance on AI will become more widespread. CIOs will need to stay on top of AI developments and evaluate and roadmap the development of AI capabilities.
Trend No. 7: Connected field workers drive efficiency and reliability Many oil and gas companies have sold assets, reduced capital and operating expenditure and shed workers after the events of 2020. The financial and human resource scarcity has compelled organizations to explore opportunities to harness digital technologies in better ways as well as
manage risk and improve productivity in difficult conditions.. While remote operations are now well established, oil and gas CIOs must focus on increasing adoption of technologies like augmented reality and machine vision, cost-effective wearable location devices and increased connectivity on sites.
Trend No. 8: Establish a roadmap to avoid carbon management chaos In the next decade, oil and gas companies will increase their focus on reducing greenhouse gas (GHG) emissions as conversation around climate change becomes more intense globally. Many oil and gas companies are committing to reducing GHG emissions to net-zero between 2030 and 2050. In order to make this vision a reality, they have started investing in clean energy solutions such as wind and solar power. CIOs need to provide appropriate IT infrastructure, services and talent to meet emerging carbon requirements. They must also start due diligence early, because the market for these solutions is immature and implementations will be complicated.
Trend No. 9: Face the challenge of attracting fresh talent Post 2020, talent retention has become a struggle for many industries, and the
oil and gas sector is no different. Along with the health and safety challenges that have emerged during the pandemic, the industry is challenged with negative perceptions related to climate change. Oversupply of crude and decreased demand during 2020 hit the global oil and gas industry hard, and the result was mass layoffs across the US as cash flows reduced. The need for digital workers is a fairly new phenomenon for this sector and finding appropriately skilled talent is even more challenging.
Trend No. 10: Multiple disruptions yield hybrid reformation of IT operating model Disruptive forces such as the cost reductions due to demand-supply challenges since 2020, growing demand for new systems and more IT agility are driving significant changes to IT operating models. While oil and gas CIOs do not expect another year like 2020, they know disruptions will continue in the sector. Oil and gas CIOs are facing a sustained period of constant flux.
These organizations need to provide a hybrid IT operating model that balances new and traditional capabilities against a continuously evolving set of business priorities. This will include reskilling the IT workforce, accelerating digital transformation, improving cybersecurity performance and establishing a workable computing landscape for agility.
NOVEMBER 2021 57
DHL EXPRESS
DHL Express inaugurates a new logistics hub at Abu Dhabi International Airport The 15,000sqm facility is located in ADIA’s Future Cargo Area
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HL Express has further cemented its presence in the UAE by launching the construction of a new stand alone, logistics hub, at the Abu Dhabi International Airport (ADIA). The 15,000sqm facility, on a 30,000sqm airside/landside plot, located in ADIA’s Future Cargo Area, is being developed in partnership with Abu Dhabi Airports Free Zone Authority (ADAFZ), a wholly owned subsidiary of Abu Dhabi Airports, and Middle East General Enterprises (MGE). “We reiterate our commitment to supporting Abu Dhabi’s growth plans and aligning to its ambitious 2050 economic vision,” observed Geoff Walsh, Country Manager, DHL Express UAE. The new facility features a 10,800sqm built-up area, with future expansion potential to increase capacity by an additional 50%. The facility will be well equipped to handle up to 3,600 inbound and outbound/ transit shipments per hour, amounting to 86,400 shipments a day, with the ability to service customers in the
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Emirates of Abu Dhabi and Al Ain efficiently. “DHL Express’ new logistics hub is an exciting and welcomed new addition to Abu Dhabi International Airport’s Future Cargo offering which strengthens our presence as a facilitator of global trade and bolsters Abu Dhabi’s position as an important regional and international hub for
air freight,” commented Shareef Al Hashmi, CEO, Abu Dhabi Airports. “DHL’s new facility has been established to cater to this growing trend, helping the UAE to become a connecting point to the entire region and the world,” remarked Saeed Abdulrahman Ghanim, Vice Chairman, Middle East General Enterprises (MGE).
DHL EXPRESS
DHL Global Forwarding and TotalEnergies partner to develop a solar project The reduction of carbon dioxide emissions is part of Deutsche Post DHL’s Sustainability Strategy DHL Global Forwarding and TotalEnergies have signed a contract for a solar energy project in Dubai. TotalEnergies will solarize eight of DHL’s sites in Dubai to cover the equivalent of over 46,000sqm of photovoltaic panels. The solar system will save more than 6,000T of carbon dioxide the first year. The project complements Deutsche Post DHL Group’s sustainability roadmap to achieve zeroemissions logistics from 2050 onwards. “With TotalEnergies, we not only drive forward the use of alternative fuels but also to optimize our overall energy consumption. In this way, we hope to attain our ambitious target to reduce all logistics-related emissions to zero by the year 2050,” noted Amadou
Diallo, CEO, DHL Global Forwarding Middle East and Africa. The whole solar system will produce over 14,000 MWh per year, enough energy to power over 16,000 homes yearly in the UAE. In addition to supplying the sites with solar power eight electrical vehicle charging stations will also be installed. Thus, DHL Global Forwarding contributes to the Group’s goal of electrifying 60% of its fleet by 2030. “We support DHL Global Forwarding with their green initiatives in the UAE of which solar will play an important part, and look forward to helping them reducing their carbon footprint in the region and beyond” affirmed Hamady Sy, Managing Director, TotalEnergies Renewables Distributed Generation Middle East and Africa.
NOVEMBER 2021 59
SAUDI PORTS AUTHORITY
MAWANI, DP World Jeddah, break ground on South Container Terminal Revamp The expansion project will double the port’s container handling capacity
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he Saudi Ports Authority (MAWANI) and DP World Jeddah recently laid the foundation stone for the expansion and modernization of the South Container Terminal at Jeddah Islamic Port. The revamp of the facility comes in line with Saudi Arabia’s strategy to develop ports infrastructure to unlock the Kingdom’s maritime logistics and transportation potential.
The ceremony to mark the start of the first phase of construction at the South Container Terminal was attended by Omar Hariri, President, MAWANI, a delegation of senior Saudi government officials, and representatives from DP World Jeddah’s Management. The development of the South Container Terminal is part of the new concession agreement MAWANI signed with DP World Jeddah in April 2020 to continue operating and managing the facility for the next 30 years. The company has committed to a total investment of $800 million to modernize the terminal.
Four-phase project
The new overhaul project, which will take place over four phases and is set to be completed by 2024, will see infrastructural upgrades, including the broadening of draft depth and quay, and the installation of advanced equipment and technologies. When complete, the revamped terminal will double Jeddah Islamic Port’s container handling capacity from 2.4mn TEUs to 4mn by 2024 and solidify Jeddah’s standing as a major trade and logistics center on the Red Sea coast. “The continuing development of
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our national ports through publicprivate partnerships is a priority for us at MAWANI as part of our longterm strategy to drive growth in Saudi Arabia’s ports sector and bolster the Kingdom’s pre-eminent position as a global logistics hub connecting three continents as envisaged in Vision 2030,” affirmed Omar Talal Hariri, President, MAWANI. “Our strategy as a smart trade enabler is to modernize the facility, expand its capacity and diversify the range of smart logistics services on offer at the South Container Terminal,” asserted Mohammad Alshaikh, CEO DP World Jeddah and Country Head, KSA.
Quay expansion
The development plans include extending the length of the quay from 1500m to 2150m and deepening the draft to 18m, which will enable the terminal to service five vessels simultaneously and handle the largest container vessels in operation today and in the future, carrying up to 26,000 TEUs (twenty-foot equivalent unit). The modernization of the terminal yard
surface, enhancements to the lighting and a complete upgrade to the utilities are also planned. Fifteen new Ship-to-Shore (STS) gantry cranes featuring the latest technology and 60 new electrically powered Rubber Tyred Gantry (RTGs) cranes will be added to the container yard in batches starting in 2022.
Quay expansion
This will enable DP World Jeddah to increase its annual container handling capacity from 2.4mn TEUs to 4mn by 2024. The RTG cranes will be controlled from a state-of-the-art remote-control room by Saudi operators, as part of DP World Jeddah’s focus on developing local talent. Since 1999, DP World Jeddah has been operating the South Container Terminal at Jeddah Islamic Port as a concession partner. In close cooperation with MAWANI, the company has achieved several remarkable achievements including a significant increase in annual container handling capacity and better customer service, a press communiqué concluded.
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