July–August 2022 Issue 93
ENHANCING THE BUSINESS OF LOGISTICS
Slimstock: Sustainable Profitability Streamlining Operations, Boosting Revenue and Eliminating Excess Inventory
Pace Spedition Fast-paced Progress
SSI-Schaefer
Shaping Intralogistics
Qatar Airways Cargo Transporting Charity
NEW SERVICES BY TURKISH CARGO TURKISH CARGO, THE AIR CARGO BRAND THAT FLIES TO THE MOST DESTINATIONS IN THE WORLD, CONTINUES TO CARRY YOUR BUSINESS INTO THE FUTURE. TK SMART FOR YOUR GENERAL CARGO SHIPMENTS, TK PREMIUM FOR FAST AND PRIVILEGED SERVICE FOR YOUR IMPORTANT SHIPMENTS AND TK URGENT FOR YOUR IMMEDIATE SHIPMENTS WITH THE FASTEST DELIVERY TIME IN THE INDUSTRY.
For more information visit our website.
DRIVE THE NEW WAY
NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications.
NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio.
Fat pickings for Slimstock
SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com
Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai
Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused. Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.
‘Our intelligent inventory management software puts you in the driving seat,’ says the blurb on the portal of Slimstock, the Anglo-Dutch inventory optimization solutions provider that is the subject of our cover focus story for this edition. Slimstock has indeed come a long way since its founding three-decades ago. The company asserts that its intelligent inventory management software puts its users in the driving seat. The solutions provider further affirms that its software can take care of forecasting, demand planning and more to overcome and eliminate supply chain obstacles. To this end, Global Supply Chain got up close and personal with Sandeep Walia, Chief Transformation Officer—CTO, Slimstock Middle East Africa (MEA) for the insider view on the company’s spectacular growth since its founding in the region five years ago. Global Supply Chain goes one-on-one with Warren Jacob, Founder-CEO and Executive Director, Pace Spedition, the 2016-founded 3PL services provider that is basking in the glow of success following a bright track record. The company that counts Aerospace Logistics as its strong suite has been steadily growing from strength to strength. Elsewhere we engage with Carsten Spiegelberg, the recently appointed Managing Director, Middle East, India & Africa, of the German titan SSI Schaefer, specializing in producing equipment for D for the lowdown and latest developments in the company. The UAE is the subject this month of our Country Focus Report. We conduct an exclusive interview with Frost & Sullivan’s TJ Sivan, Senior Consultant, Supply Chain & Logistics Practice, and a regular contributor to Global Supply Chain for a perspective on the current UAE logistics scenario. Two more technology related stories with a characteristic French connection round up our continuing highlight on software solution providers. Singapore-headquartered Cargo Ai enables the seamless and effective management of the end-to-end cargo booking process using a single tool says its founder and CEO, Matthieu Petot. Also, France’s CargoStack is Wiremind Cargo’s first holistic product suite designed to ensure seamless interaction between airlines and forwarders. We talk to Nathanaël De Tarade, CEO, Wiremind Cargo, for the lowdown and detail spiel on the subject. We also catch-up Guillaume Halleux, Chief Officer Cargo, Qatar Airways, who brings us to speed on the carrier’s bold charitable initiatives. Our usual repertoire of news reports, contributions, OpEds round up this edition. For now, Happy reading! Malcolm Dias Editor malcolm@signaturemediame.com JULY – AUGUST 2022 3
July – August 2022 Issue 93
22
Slimstock Middle East Africa
Inventory optimization solutions provider takes rapid strides in the region.
48 Qatar Airways Cargo
Guillaume Halleux, Chief Officer Cargo, Qatar Airways, brings us to speed on the carrier’s charitable initiatives.
06 NEWS World-Mawani 20 DP Agreement
50 CargoAi
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Up to date news of the Global Suppy Chain industry
Cargo Ai enables the seamless and effective management of the end-to-end cargo booking process using a single tool says its founder and CEO, Matthieu Petot.
Dubai’s International Port Operator and Saudi Ports Authority sign landmark deal.
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Pace Spedition
Warren Jacob, Founder-CEO and Executive Director, waxes eloquent on the Dubai-based company’s encouraging performance since inception in 2016.
SSI Schaefer
GSC engages with Carsten Spiegelberg, Managing Director, Middle East, India & Africa, for the lowdown and latest developments in the company.
UAE Logistics LandscapeFrost & Sullivan
Frost & Sullivan’s TJ Sivan, Senior Consultant, Supply Chain & Logistics Practice, provides a perspective on the current UAE logistics scenario,
46 Turkish Cargo
Turkish Cargo builds e-commerce bridges with Shopee for cross border e-commerce shipments.
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Wiremind CargoStack
Shippeo introduces Carbon Visibility and brings new features to Ocean and Road Visibility.
55 Shipsy
At Seamless 2022, Shipsy showcased AI solutions that build smarter logistics processes
56 Savoye
Savoye increases global footfall with 26% growth, breaks record turnover at US$ 214mn in 2021.
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Turkish Cargo
Turkish Cargo awarded the ‘Best Air Cargo Brand’ in Europe for Sustainability.
60 Hyke
Hyke helps B2B parties unlock next-level speed & efficiency
CHAPTER 4
SAME, SIMILAR, DIFFERENT
United in our individualism At Qatar Airways Cargo, we wear the same uniform, we have similar professional interests, and we are all different in skills, age, race, gender, religious beliefs, experience, and much more. We are a cross-section of global society, and that is our strength. United in our individualism, we strive to give our customers the top quality service that makes us the world's number one cargo airline. Moved by people qrcargo.com
ADNOC L&S acquires three additional carriers to meet growing global demand for LNG
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n ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of the Abu Dhabi National Oil Company (ADNOC) and the region’s largest shipping and logistics company, recently announced its decision to purchase three additional liquefied natural gas (LNG) vessels. The new-build LNG vessels, each with a capacity of 175,000cbm, are significantly larger than the current ADNOC L&S fleet which have a capacity of 137,000cbm each. ADNOC L&S previously announced in April 2022 that it will acquire two LNG vessels which brings the total number of newbuild LNG vessels ordered to five, with the vessels scheduled for delivery in 2025 and 2026. “Several dynamics are strengthening the LNG market which makes the timing of these acquisitions particularly significant. This includes a renewed emphasis on energy access and security, as well as new environmental regulations that favour more fuel-efficient vessels, such as the new builds that we are purchasing,” commented Captain Abdulkareem Al Masabi, CEO, ADNOC L&S. All five new-build LNG vessels will be built at the Jiangnan Shipyard in China. “We are committed to the promotion of new efficient, energy-saving and environmentally-conscious
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vessels and proud to be able to support ADNOC L&S’ growth strategy for the future,” remarked Lin Ou, Chairman, Jiangnan Shipyard. ADNOC L&S has the largest and most diversified fleet in the Middle East, with more than 200 vessels transporting crude oil, refined products, dry bulk, containerized cargo, liquefied petroleum gas (LPG), and LNG to global markets. Over the past 24 months, ADNOC L&S has acquired 16 deep sea vessels, including eight Very Large Crude Carriers (VLCC) in 2021, that added 16mn barrels of capacity. Furthermore, the company acquired six product tankers, which expanded the product tanker fleet capacity to over 1mn MT as well as five VLGC for AW Shipping.
AD Ports Group inks agreement with Uzbekistan’s Enter Engineering Group n AD Ports Group recently signed a Head of Terms agreement with Enter Engineering Group to launch new businesses providing logistics and freight forwarding services in the Central Asian nation of Uzbekistan. Under the agreement, the two companies will establish joint venture companies to manage logistics and freight forwarding services, including air, sea, land and rail logistics, warehousing, contract logistics, and customs clearance. AD Ports Group will also support Enter Engineering Group’s work on tenders in the UAE, with a particular focus on the energy sector. Enter Engineering Group was incorporated in 2012 and is one of the fastest growing companies in the industrial construction market in Central Asia. The Head of Terms is the latest in a series of international agreements signed by AD Ports Group to support ports, logistics and digital projects around the world, and is the first agreement of its kind with a leading enterprise in Uzbekistan. “Working with our new partner,
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we see significant opportunities for enhancing the capacity and connectivity of logistics channels for that region, which will help drive economic growth and further cement the ties between our two nations,” commented Capt. Mohamed Juma Al Shamisi, Managing Director and
Group CEO, AD Ports Group. “This agreement will create jobs, support the needs of businesses within Uzbekistan and open international channels for trade and development,”remarked Bakhtiyor Fazilov, Chairman, Board of Directors, Enter Engineering Group.
Al-Futtaim Trading Enterprises Volvo cars wins Excellence Club Competition n Al-Futtaim’s Trading Enterprises, the official distributor of Volvo Cars in the UAE, recently announced an encouraging 61.5% increase in Volvo sales in Q1-2022 compared with the same period in 2021. Globally, Volvo Cars’ plug-in hybrid and fully electric Recharge models remain popular among customers and the share of electrified cars continued to rise. In the first quarter, Recharge sales made up 34 per cent of total sales, whereof fully electric cars made up 8 per cent doubling in the space of the last two quarters. That share will continue to grow as Volvo increases annual production capacity of fully electric cars to 150,000 units after summer. For the full year 2022, Volvo Cars expects continued high growth of fully electric cars. In the UAE, 2022’s top selling model are Volvo’s XC60, followed by XC90 and the XC40. A firm favourite among customers, the Volvo XC range’s provides premium SUVs that are versatile, beautifully designed, technologically advanced, and highly safe for drivers and passengers. Volvo’s Plug-in Hybrid and electrified
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Recharge sales in the UAE accounted for 7.1 per cent of the total sales in Q1 2022 which has increased by 87.5 per cent compared to same period last year. Concurrently with this impressive growth, Volvo Cars UAE was also recognised for a second year in the Volvo 2022 Excellence Club Competition. An initiative by Volvo Cars Importers EMEA, the Excellence Club
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Amazon supports Saudi entrepreneurs to establish logistics start-ups n Amazon recently announced the launch of the latest iteration of its global Delivery Service Partner program that empowers local entrepreneurs to set up and manage their own logistics businesses delivering Amazon packages. Saudi Arabia is the first country in the region to host the flagship program, which will be expanded to cover the MENA region at a later stage. Launched in collaboration with Monsha’at – the General Authority for SMEs, it aims to establish more than 30 new local start-ups and create hundreds of job opportunities within the local logistics sector during the program’s first three years. The Delivery Service Partner program was announced during a ceremony held at Monsha’at’s headquarters in Riyadh and attended by the Authority’s Governor Eng. Saleh Al-Rasheed and Ronaldo Mouchawar, Vice President, Amazon MENA. Saudi entrepreneurs who join the Delivery Service Partner program can take advantage of various benefits, including a specific delivery volume from Amazon, access to the company’s sophisticated delivery technology, hands-on training, and discounts on a suite of assets and services such as Amazon-branded vehicles, branded uniforms, and comprehensive insurance. “This initiative from Amazon clearly reflects this spirit of cooperation and represents a key outcome of the agreements signed during the Global Entrepreneurship Congress (GEC),
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competition was formed to celebrate its best players in the region. “We are thrilled report impressive growth compared with 2021 whilst also being recognised by Volvo Cars HQ for our unwavering commitment to the brand and our customers in the UAE,” observed Oscar Rivoli, Managing Director, Trading Enterprises.
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which was organized by Monsha’at in cooperation with the Global Entrepreneurship Network,”commented Engr.Al-Rasheed. “Through this initiative, we aim to empower enterprising innovators, enable start-ups and emerging brands across the Kingdom to realise their full potential, and contribute to Saudi Arabia’s strong, fast-growing digital economy,” remarked Mouchawar.
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Turkish Cargo builds e-commerce bridges with Shopee n As one of the significant contributors to the global supply chain sustainability, Turkish Cargo builds and reinforces air cargo bridges for cross-border e-commerce shipments. The brand strengthened its strategic partnership with Shopee, the leading e-commerce platform based in Singapore. Thanks to the cooperation between Turkish Cargo and Shopee, millions of consumers, who have internalized the digital age, will be provided with easy, fast, and uninterrupted purchasing experience with the creation of a logistic network that interconnects brands, customers, and vendors all around the world. “We are pleased to take our strong partnership with Shopee to a new level. We will continue to support Shopee`s growth with our global network and firstclass service. Our partnership with Shopee fuels the expansion of Turkish Cargo`s e-commerce business, by further leveraging Turkish Cargo`s unrivalled global network,” remarked Tarık Parlak, Turkish Cargo Sales Vice President (Asia Pacific).
“With this exciting new partnership, Shopee will be able to connect with more consumers through our shopper-oriented logistics projects that leverage Turkish Cargo’s unique expertise in expanding its network and optimizing transportation to meet the growing shoppers’ need for elevated shipping experience, “commented Terry Xie, Executive, Shopee Logistics Service (SLS). With its unique location at Istanbul Airport, Turkish Cargo provides a flight distance of seven hours to more than 60
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capital cities in the world and offers one of the most effective solutions to its customers by means of partnerships and dedicated services such as TK COURIER and AIRMAIL developed for e-commerce logistics. Thanks to its infrastructure, operational capabilities, and fleet; Turkish Cargo aims to provide one of the best services at its new hub SMARTIST, which has been designed as to meet the needs of its customers and industry partners, and rank among the key players involved in global competition.
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Al Seer Marine acquires VLCC’s valued at US$ 110mn for growing global crude oil market n Al Seer Marine PJSC (ASM), a global player across multiple marine sectors and subsidiary of International Holding Company (IHC), has acquired two Very Large Crude Carriers (VLCC) for its growing fleet. With a total value of AED 404mn (US$ 110mn), the crude oil tankers, MV Twin Castor and MV Twin Pollux, each have a carrying capacity in the upper range of 320,000 deadweight tonnage (DWT), allowing for crude oil cargo, provisions, lubricant, and fuel. Under current market conditions, these newly acquired tankers are expected to provide estimated returns of more than 20%. This is largely due to a forecasted global increase in tonne mile demand fueled by an uptick of crude oil production by 4% in 2022, and the declining global VLCC orderbook, which is down to 5.8% of the global fleet of 440 million DWT of crude oil tankers. Al Seer Marine has increased its fleet by acquiring 9 ships and is analyzing expansion initiatives in crude and product tankers, gas tankers, and dry bulk shipping sectors, with short-term plans of acquiring 10 to 15 ships in 2022. The company recently acquired two liquified petroleum gas (LPG) tankers valued at a combined AED 246mn (US$ 67mn) and has two 86,000cbm Very Large Gas Carriers (VLGC) currently under construction as part of a joint venture with BGN International.
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“This acquisition of two new crude oil tankers is strategically driven given the current market conditions, and we expect to see strong returns as oil demand recovers and ship recycling returns to normal levels,”commented Guy Neivens, CEO, Al Seer Marine.
Etihad Cargo to increase frequencies this Summer n Etihad Cargo, the cargo and logistics arm of Etihad Aviation Group, will provide additional capacity to key destinations in the summer months across Asia, Africa and Europe. From July, Etihad Cargo will continue to operate its Boeing 777 freighter network with flights across Chicago, Dhaka, Frankfurt, Hanoi, Ho Chi Minh City, Hong Kong, Johannesburg, Kenya, Milan, Riyadh, Saigon and Shanghai. “Etihad is operating additional flights during the busy summer period, which will introduce additional belly capacity across key routes for Etihad Cargo’s customers,” commented Martin Drew, Senior Vice President–Global Sales & Cargo, Etihad Aviation Group. “Cargo transported during the season will benefit from Etihad Cargo’s extensive road feeder service across the US, Europe and Asia,” added Drew.
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GWC and Ponticelli sign Supply Chain Management Agreement n Qatar’s GWC has signed an agreement with France’s Ponticelli Frères Group, by which GWC will handle the freight forwarding, customs brokerage and transport for Ponticelli in the State of Qatar for a period of three years. The signing ceremony took place at GWC’s Regional Hub in Ras Bufontas Free Zone between Ponticelli Frères Group Qatar Country Manager Charles Caia and GWC Group CEO Ranjeev Menon. The ceremony was attended by top officials from both companies. “GWC’s track record of reliable delivery and commitment to international standards is a matter of utmost importance for us,” stated Caia.“With this agreement, we are sure to enhance the speed of delivery and efficiency of operations for both Ponticelli and our customers in the State of Qatar,” he added. Qatar is one of the top three exporters of LNG in the world, and with its North Field Expansion, it is set to expand its capacity a full 50% by 2027, fulfilling a global surge in demand. “GWC takes every action to enable oil and gas operations in the State of Qatar by offering unparalleled scale and efficiency ensuring that all the diverse logistics needs of the oil and gas industry are met with the highest grade of professionalism.” remarked GWC Group CEO Ranjeev Menon. GWC started by providing onshore operations, breakbulk handling, heavy equipment transportation, warehousing, customs clearance, and freight forwarding.
The company’s infrastructure has since grown to include open yards for pipe laydowns, chemical and hazmat storage, and overhead cranes for repair and refurbishment, a press communique concluded.
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Aramex to acquire global cross-border NEWS e-Commerce enabler platform, MyUS n Aramex recently announced today that it is has entered into a binding agreement to fully acquire Access USA Shipping (MyUS), a global technologydriven platform that enables cross-border e-Commerce, for a cash purchase price of US$ 265mn, subject to customary adjustments. MyUS is a leading, US-headquartered, technology-driven and cross-border e-Commerce platform, providing costeffective package forwarding solutions to millions of customers who shop from retailers based in the US, UK and China., according to a corporate press communique. The acquisition is in line with Aramex’s strategy to expand its cross-border operations and to capitalize on the attractive growth opportunities from a fast-growing US$ 4tn global e-Commerce
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sector. The acquisition is expected to unlock several benefits for both entities, including operational synergies and improved efficiencies, shared technology platforms and the opportunity to service new markets. “We are acquiring a profitable business and this transaction is value accretive to Aramex and our shareholders. It will also create great value for our customers and partners,” commented Othman Aljeda, CEO, Aramex. “This acquisition allows our customers and business partners to benefit from Aramex’s global network, international expertise and scale, while still being able to enjoy our personalized, tailored solutions. We are confident that under Aramex’s stewardship, MyUS will continue to grow and flourish,” remarked Ramesh Bulusu, CEO, MyUS.
Brambles commits to net-zero emissions by 2040 n Sydney, Australia-headquartered Brambles has announced its commitment to achieving net-zero greenhouse gas (GHG) emissions by 2040. As part of its Sustainability Programme, the global logistics company, operating through the CHEP brand, has accelerated its decarbonisation strategy towards pioneering regenerative supply chains.“Adopting science-based targets and bringing the net-zero deadline forward by ten years accelerates our mission to build a regenerative supply chain. By delivering on our net zero ambition and beyond, we will continue to be a sustainability global leader building the supply chains the world needs for the future,” affirmed Juan José Freijo, Chief Sustainability Officer, Brambles. Brambles’ new ambitious commitments are built on a solid decarbonisation roadmap, with two main milestones.
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These are the 2030 mid-term reduction targets recently approved by the Science Based Target Initiative (SBTi) that include a 42% reduction in absolute Scope 1 and 2 GHG emissions on 2020 levels and a 17% reduction in absolute Scope 3 GHG emissions on 2020 levels. There is also a solid roadmap towards decarbonization. To manage this challenge effectively, Brambles has created a dedicated decarbonisation function integrated within the supply chain organisation. “Our roadmap to net-zero emissions by 2040, collaboratively developed with all our regions and constructed firmly around approved SBTs, will provide our business with longer-term strategic direction and will help retain our leadership position in sustainability,”explained Marisa Sánchez Urrea, Global Supply Chain Decarbonisation Director, Brambles.
Dubai Customs organizes 2nd DCCC meeting 2022 amid expectations of more economic growth n The Dubai Customs Consultative Council recently held its meeting in an atmosphere of optimism with several economic indicators in the UAE showing growth. The meeting focused on several topics including the prospects of trade recovery and the multiple economic benefits that will be provided by the historic UAE-India Comprehensive Economic Partnership Agreement, which is expected to help increase trade between the two friendly countries by 120% to US$ 100bn within 5 years, compared to US$ 45bn currently. Along with Ahmed Mahboob Musabih, Director General, Dubai Customs, CEO, Ports, Customs and Free Zone Corporation & Chairman of the Consultative Council, the leadership team comprises of Dubai Customs, and representatives of business and trade group members. The UAE’s foreign trade in 2021 recorded nearly AED 1.9tn (US$ 5.173bn), growing 27% compared to 2020 and 11%
compared to 2019, he confirmed. In October 2021, the UAE approved the federal budget for the years 2022-2026 with a total of AED 290bn (US$ 79bn), making it the largest federal budget in the history of the UAE. “The Comprehensive Economic Partnership Agreement helps reduce tariffs and facilitate trade between the two countries significantly, supported by innovative initiatives such as the
Authorized Economic Operator and the cross-border e-commerce platform, as well as the Logistics Passport initiative” commented Musabih. Suresh Kumar, Chairman, Indian Business Professional Council (IBPC,) indicated that the UAE’s investments in India amount to US$ 67bn, and India’s investments in the UAE amount to $US 18bn (US$ 4.95bn).
DHL Express rolls out solar power projects across its regional facilities n In line with its global sustainability ambitions to become a net-zero logistics company by 2050, DHL Express is investing in solar power projects across all its regional facilities, with the first solar photovoltaic (PV) installation completed in its Amman, Jordan facility, which will reduce energy consumption by 100%. DHL has installed 434 solar panels in its Jordan facility, in partnership with Yellow Door Energy, the leading sustainable energy partner for businesses in the region. The solar plant is expected to produce 294 kWh of clean energy in the first year of operation, which would cover 100% of the facility’s energy consumption needs while halving the facility’s electricity costs. “Our investments in solar systems form part of a long-term strategy to reduce our energy consumption across our operations by tapping into renewable solutions and alternative energy supplies,” commented Bachi Spiga, Head of Operations, DHL Express MENA. The PV installation is under a Build-Own-Operate-Transfer (BOOT) solar agreement that is managed by Yellow Door Energy. As the solar developer, Yellow Door Energy is responsible for financing, designing, building, operating and maintaining the
solar plant until the system is transferred to DHL at the end of the BOOT term. The solar energy system has net metering, which ensures that any excess energy produced will be stored by the system’s electric grid and credited back to DHL. “Yellow Door Energy continues to help companies significantly lower energy costs and become sustainability champions. We look forward to providing clean energy for DHL for many years to come,” stated Rory McCarthy, Chief Commercial Officer, Yellow Door Energy.
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dnata invests US$ 100mn in green operations n dnata is investing US$ 100 million in green operations in the next two years to further enhance environmental efficiency across its global network. The company’s ongoing investment in infrastructure, equipment and process improvement will support it to achieve its strategic objectives and reduce its carbon footprint by 20% by 2024, and by 50% by 2030. “We will further increase our investments and efforts in strong cooperation with our partners to achieve our targets and preserve the environment for current and future generations,” stated Steve Allen, CEO, dnata Group. In recent years dnata has significantly invested in advanced technologies to optimise resources and improve operational efficiency across its facilities. It installed renewable energy features, such as solar panels, heat recovery units and electric vehicle charging at its existing facilities in the UK, Singapore and Ireland. The company will also incorporate
carbon reduction initiatives in the construction and operation of its recently announced new cargo centres in The Netherlands and Iraq. Choosing green options is a prime consideration in dnata’s fleet planning, too. It has increased investments in electric and hybrid ramp, ground support (GSE) and forklift equipment, and refurbished existing GSE with new technologies to further decrease emissions and update them to the latest
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safety and quality standards. As a result, dnata became the first ground handler to successfully complete green aircraft turnarounds using only zero-emission GSE in the USA and UAE. dnata’s catering team has invested in process improvement to minimise its environmental footprint. It has been working closely with many of its airline customers to analyse consumption trends and use predictive data to optimise the loading of F&B for in-flight catering.
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Emerson Expands In-Region Manufacturing with new facility in Saudi Arabia n Emerson recently inaugurated an expanded facility in Dammam, Saudi Arabia to manufacture its Rosemount pressure and temperature transmitters and manifolds. The inauguration was attended by Emerson executives, as well as Saudi Aramco and SABIC stakeholders from critical teams such as procurement and local content. Emerson has a longstanding collaborative relationship with Saudi Aramco and SABIC to support localization initiatives such as Saudi Vision 2030 and local content programs like In-Kingdom Total Value Add (IKTVA) and Nusaned. “We are bringing our businesses closer to our customers and aligning our capabilities according to the needs of our customers. This facility will improve efficiency not just in production, but also in logistics and delivery costs, providing better value to our customers and partners,” remarked Liam Hurley, VP and GM, Emerson’s Western Region in Middle
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East and Africa. “Emerson is pleased with this expansion not only because we are able to strengthen our manufacturing capabilities to our key customers in the area,”commented Mounir Taleb, Emerson’s VP for Measurement Solutions, Middle East and Africa. Senior Manager, Procurement, SABIC for the instrumentation category, Khalil
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Ramul, also commended Emerson for being soldiers of technology and leaders of excellence in his keynote speech delivered during the inauguration. The new instrumentation facility is designed to offer expanded production capacity of transmitters to support future demand from Emerson key customers in the Kingdom.
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Emirates Post rolls out a suite of new services at Seamless ME 2022
n Emirates Post, the official postal operator and leading express provider in the UAE, recently launched its latest range of advanced services as part of its broader customerdigital, and sustainabilityfocused strategies. “The new business solutions will result in added convenience and faster more efficient delivery of services, as well as wider options for Emirates Post’s corporate customers. The move will strengthen our position as a leading postal and e-commerce logistics partner,” asserted Peter Somers, CEO, Emirates Post. Emirates Post has showcased the new solutions under three categories, ‘eCommerce,’‘Digitization,’ and ‘Sustainability’, all of which operate under the common theme ‘Evolution of Customer Experience.’ The new ‘E-Commerce’ service portfolio features a number of solutions including the cost-effective international shipping ‘EcomPro’ solution, which promises door to door transit time of three to five days depending on the destination; as well as ‘Domestic services’
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which offer same-day and next-day domestic delivery options. Another solution is their suite of ‘Fulfilment Solutions’ which comprise warehouse management and fulfilment services through the company’s facility in Dubai South along with localized micro fulfillment services via its customer centric hyperlocal network across the UAE. Under the ‘Digitization’ category, Emirates Post has launched ‘EP Connect’, a new platform for corporate customers to manage their accounts, book shipments, keep track of their items, and manage invoicing, amongst many other features. This online and offline tool supports a seamless, convenient portal for corporate customers to interact with Emirates Post. Stephen Stanton, Chief Business Officer, Emirates Post’s Parcels and Express unit, was also a speaker, sharing his expertise during a panel on day two titled ‘Gaining Competitive Differentiation Through the Last-Mile Approach: Achieving First-Time Success in Product Delivery.’
GROHE Launches Regional Distribution Centre in Dubai Logistics City n GROHE, the leading German global brand for bathroom and kitchen solutions, has recently launched its new MENA Regional Distribution Centre (RDC). Located in Dubai Logistics City, the new facility will reduce transportation lead times for customers and support inventory ramp-up for new product launches. GROHE is now one of the few brands in the region to use a local distribution centre. Leveraging Dubai’s strategic position between East and West, GROHE’s newest RDC will serve as an ideal hub that will optimize operations and lead times between European and Asian production facilities, supporting the continued growth of the business in the region. In the MENA region, a press communique indicated. GROHE now has three such facilities in Dubai, Egypt and Turkey. Operated by Kuehne+Nagel, the RDC
is powered by renewable energy through solar panels. The state-of-the-art facility was inaugurated in the presence of Jonas Brennwald, Leader, LIXIL EMENA, as well as other top executives representing the GROHE brand. “As one of the most sustainable brands in the sanitary industry, we are aware of our responsibility in making a positive impact on climate change mitigation through our business operations, products and services. Our new MENA RDC will contribute to region’s green ambitions and mission for sustainability,” stated Renu Misra, Leader MENA, LIXIL EMENA. “This new warehouse for GROHE is a testament to our commitment to operating sustainably and supporting the reduction of carbon dioxide emissions, while supporting our partners’ business expansion,” commented Lee I’ons, Regional Director, Kuehne+Nagel.
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Sadara’s pipelines commence supplies to PlasChem Park n Sadara Chemical Company (Sadara) recently announced that its Ethylene Oxide (EO) and Propylene Oxide (PO) (EO/ PO) pipeline transportation system is now fully operational, supplying feedstock from the company’s Jubail chemical complex to tenants in the adjacent value park, ‘PlasChem Park.’ These tenants will use the feedstock and other inputs to produce diversified specialty products, enabling important applications for the Kingdom in several key downstream industries, such as oil and gas chemicals, construction materials, detergents, home and personal care products, water treatment chemicals and coating and paint applications, a press communique indicated. The EO/PO pipeline transportation system is the first of its kind in the Middle East and North Africa (MENA) region. Sadara’s first trial of the system supplied feedstock to the Halliburton chemical facility, which was inaugurated in March of this year. “The facilities envisioned for PlasChem Park are vital for the future of the Kingdom’s petrochemicals industry. They will help realize the Kingdom’s Downstream Initiative, combining manufacturers’ expertise with the special chemicals that Sadara produces, for the benefit of local, national, and global markets,” affirmed Dr. Faisal M. AlFaqeer, CEO, Sadara, commenting on the milestone. The project consists of two parallel pipelines, each about six kilometers long, distributing EO and PO feedstock from Sadara’s
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site to business tenants in PlasChem Park. PlasChem Park is a 12sqkm industrial park in Jubail Industrial City II, dedicated to downstream chemical and conversion industries in Saudi Arabia. Developed by the Royal Commission for Jubail and Yanbu (RCJY), the park is adjacent to Sadara’s Chemical Complex and is uniquely positioned to enable and support multiple Sadara-based downstream opportunities in many market segments, including the Chemicals Intermediates Cluster, Ethylene Oxide/Propylene Oxide (EO/ PO) Cluster, Polyurethane Cluster and Polymers Cluster.
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Saudi Water Partnership Company and ENGIE Win ‘Sustainability and Innovation Pioneer in Water’ Award n Global low-carbon energy company ENGIE won the award for ‘Sustainability and Innovation Pioneer in Water’ at the first edition of the recently conducted Decarbonization and Climate Action (DACA) Awards ceremony. The ceremony was hosted at the Arab Green Summit (TAGS), and the award was handed to Eng. Khaled Alqureshi, CEO, Saudi Water Partnership Company (SWPC) and Latifa Lahsine, Vice-President, Engineering & Technical Support Group, ENGIE AMEA. ENGIE won the ‘Sustainability and Innovation Pioneer in Water’ award for demonstrating environmental stewardship in delivering innovations to the water sector. Specifically, the award recognizes those which address the need for greater efficiency in water management and water conservation in response to the threat of water shortage, and in line with the United Nations Sustainable Development Goal
(SDGs) Six – ‘Clean Water and Sanitation for All’ – in the most transformative, impactful, and innovative way. “Through such FDI’s, knowledge transfer, and focus on localization we will be able to support and accelerate the energy transition in the Kingdom of Saudi Arabia,” remarked Turki Al Shehri, CEO ENGIE, Saudi Arabia. ENGIE operates over 13 desalination
plants in the GCC, which combined provide 10 million people with potable water. “We are delighted to receive this latest award for delivering the Yanbu 4 and Jubail 3B IWPs in Saudi Arabia for the Saudi Water Partnership Company. Cementing our role as a leading operator in water desalination in GCC,” Latifa Lahsine, Vice-President, Engineering & Technical Support Group, ENGIE.
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TIER Mobility launches E-Scooters and E-Bikes in Saudi Arabia
Shipsy demonstrates its AIPowered Logistics Management Solutions at Seamless ME 2022 n Building smarter logistics processes and ensuring sustainable supply chain operations took centre- stage at this year’s Seamless Middle East ME 2022. The eCommerce sector in the Middle East has experienced tremendous growth jumping from US$ 5mn five years ago to over US$ 50mn by the end of 2022. This has been driven by a dramatic shift in how consumers purchase owing to the availability of multiple online channels to shop from. To capitalize on this growth and ensure customercentric delivery operations, retailers and eCommerce companies will need to rapidly digitize and automate their existing planning processes. Shipsy, a global smart planning management platform provider, was a key participant at this year’s Seamless
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n TIER, the world’s leading shared micro-mobility provider has officially launched its e-scooter and e-bike service in Saudi Arabia in partnership with Sela Sport Company, the first fully-fledged sports marketing management firm in Saudi Arabia. “Our launch in Saudi Arabia has come at the right time as TIER’s e-scooters and e-bikes allow residents to travel longer distances using a sustainable transport method. This is just the beginning for Saudi Arabia, as we are aiming to launch e-scooters and e-bikes across other cities,” noted Amir Melad, General Manager, Middle East, TIER. The TIER e-scooter will consist of the latest model, the TIER 5. The new scooter model is designed for frequent urban use and has a service life of 5 years while effectively having an unlimited lifespan due to entirely modular, replaceable, and repairable components. The e-bikes have pedal assistance up to 25 km/h. Each pedelec is equipped with a practical basket for storing luggage or shopping as well as a charging phone holder for easy navigation. Residents in Jeddah and Riyadh may access TIER e-scooters and e-bikes by locating the nearest vehicle on the virtual map and unlocking the e-scooter or e-bike by scanning the QR code. Users have access to TIER’s hassle-free virtual parking system, to finish the ride users can simply find a designated safe parking location and press the ‘End Ride’ button.
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Middle East event. “The eCommerce sector needs to reevaluate its logistics processes to ensure that it’s in line with this vision by ensuring sustainable delivery processes,” asserted Soham Chokshi, CEO and Co-founder, Shipsy. Shipsy demonstrated how its over 170 customers across the globe are providing a seamless delivery experience to their customers using its AI-powered logistics management platform. Shipsy empowers businesses to optimize cross-border logistics, make deliveries cost-efficient and sustainable and mitigate transportation risks. “To help businesses reduce carbon emissions, Shipsy empowers them to reduce trip volumes, miles traveled, returns and empty miles. We empower logistics stakeholders to effectively reduce the distance traveled by 5% and shrink trip volumes by 6%,” noted Chokshi.
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FedEx launches the first international trial of Roxo n FedEx Express recently announced that it has signed a collaboration agreement with Dubai Integrated Economic Zones Authority (DIEZ) to start autonomous trials for Roxo, the FedEx SameDay Bot in the Dubai Silicon Oasis (DSO) community. Roxo is being designed to be a personal delivery device. Its purpose is to make local same-day deliveries autonomously, with human teleoperators constantly available if intervention is needed, to customers’ homes and businesses. The Dubai trial includes creating an optimized route along footpaths and roadsides. Using technologies such as laser detection and ranging sensors (LiDAR), multiple cameras, and radar, and coupled with machine-learning algorithms to avoid obstacles. The Dubai trial, which FedEx will conduct between Dubai Silicon Oasis Headquarters and Dubai Digital Park, will be the first time Roxo’s autonomous capabilities are tested outside of the United States. “FedEx is committed to building the future of the logistics and transportation industry. Dubai, with its world-class infrastructure and highly adaptable market for new technologies, is an ideal location for the international mapping and testing of the Roxo autonomous bot,” commented Taarek Hinedi, Vice President, FedEx Express Middle East, and Africa Operations. “In line with its role within the Dubai 2040 Urban Master Plan and the Dubai Autonomous Transportation Strategy, DIEZ is committed to continue working closely with authorities and
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businesses to assess innovative solutions and roll them out at our integrated technology park,” remarked Eng. Muammar Al Katheeri, Chief Engineering and Smart City Officer, DIEZ. “The first mile last mile delivery bots have a huge potential to bring convenience and faster service to different communities in Dubai,” noted Khaled Al Awadhi, Director of Transportation Systems, RTA. Roxo is being designed to optimize autonomous last-mile delivery service by offering a lightweight, reduced-emission solution.
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Construction begins on Saudi Arabia’s Jubail 3B Independent Water Project n In the presence of Khaled Z AlQureshi, CEO, SWPC, global energy company ENGIE, together with Nesma Company Limited and Ajlan & Bros Holding Group recently broke ground on the Jubail 3B Independent Water Project (IWP) plant located 65km north of Dammam airport in the Kingdom of Saudi Arabia. Commissioned by Saudi Water Partnership Company (SWPC), the Jubail 3B plant will produce 570,000 cbm/day of potable water using reverse osmosis technology. The plant will supply water to Riyadh and Qassim regions once commercially operational in 2024, under the terms of a 25-year Water Purchase Agreement. The consortium, led by ENGIE, was awarded the Jubail 3B project in June 2021 after submitting a bid with a tariff of SAR 1.591(US$ 0.42) per cbm of potable water to SWPC. Developed under a public-private partnership structure (PPP), the plant
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will be financed by the consortium and operated and maintained by ENGIE. Once complete, the plant will have a 61MWp capacity solar facility, the largest in-house solar capability for a desalination plant in the Kingdom, helping to optimize electricity consumption and reduce grid reliance. “The Jubail 3B IWP plant will not only use reverse osmosis, a more energyefficient process than traditional thermal
desalination technologies but will also use renewable solar energy in place of traditional fossil fuels, helping to reduce its carbon footprint. Moreover, the plant will critically support the creation of local job opportunities,” added AlQureshi. “We are delighted to be breaking ground on the plant today and look forward to becoming fully operational by early 2024,” noted Philippe Lambert, CEO, Jubail 3B.
RECAPP and Coca-Cola Middle East renew partnership
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n RECAPP, the UAE’s first free-of-charge door-to-door recycling service developed by Veolia and Coca-Cola Middle East, have renewed their partnership with the common goal to close the loop on various packaging waste materials through an innovative recyclable collection scheme that enables segregation at source and diversion away from landfills. This collaboration follows Coca-Cola supporting the launch of RECAPP, a recycling service developed by Veolia, the global benchmark company for ecological transformation, as a pilot in 2021 as Circle Coalition partners. To mark the renewed partnership, recycling bins have also been deployed at the Coca-Cola Middle East offices in Dubai to encourage the recycling reflex at the workplace. Plastic and aluminium waste collection is a new step for RECAPP that aims to collect more recyclable waste generated into business
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SADAFCO announces construction of a new depot in Makkah
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areas and Coca-Cola Middle East is the first company to pave the way in this area. “We are delighted to receive the support of Coca-Cola to encourage the recycling reflex all over Abu Dhabi and Dubai’s communities,” noted Jérôme Viricel, General Manager, RECAPP, Veolia Middle East. “RECAPP will help make recycling easier and more accessible for communities, whilst promoting a sustainable lifestyle and developing a circular economy,” observed Tolga Cebe, Vice President & General Manager Middle East, The Coca-Cola Company. The celebration of this partnership marked an important milestone in the RECAPP journey to celebrate 27,000 downloads of the app and the collection of 280 tonnes of recyclables since its launch in November 2020.
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n Saudia Dairy and Foodstuff Company (SADAFCO) has announced the start of construction of a new sales depot in the Saudi Arabian city of Makkah. The new depot located in Makkah’s industrial city covers a total area of 8,009sqm and replaces the existing rented location. The new depot is in line with SADAFCO’s strategy to facilitate its growth and strengthen its performance. The project will be fully financed by company’s own internal resources. Construction is expected to begin in the first quarter of the fiscal year ending March 31, 2023, at an estimated cost of approximately SAR 27mn (US$ 7.2mn). The company’s Established sales and distribution networks currently services
the Kingdom and the wider region. It currently operates 20 depots in KSA and 4 more regionally. Upon completion, the new warehouse will deliver significant future cost savings and improved effectiveness in the company’s supply chain. “Our efforts now are focused on catering to the shifting needs of our consumer base and widening our future product portfolio. The investment into our infrastructure will certainly contribute to that success,” commented Patrick Stillhart, CEO, SADAFCO. Based in Jeddah, SADAFCO is a publicly listed company which has been producing high-quality dairy and foodstuff products under the Saudia brand name since 1977, a year after the company was formed.
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DP WORLD-MAWANI (SAUDI ARABIA)
DP World, Mawani, ink partnership deal for Jeddah Logistics Park
Dubai Ports operator believes the facility will bolster its footprint in the region
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he Saudi Ports Authority (Mawani) recently signed a 30-year agreement with an investment value of more than US$ 133.33mn to build a port-centric logistics park at the Jeddah Islamic Port on the Kingdom’s Red Sea coast. The two parties aim to establish a logistics park which spans over 415,000sqm, with an inland container depot capacity of approximately 250,000 TEU and warehousing storage space of 100,000sqm, while future expansions could increase the storage space to 200,000sqm. DP World believes the facility will bolster its footprint in the region and will bring pioneering multi-modal logistics solutions to Saudi Arabia.
Logistics Park The new logistics park is expected to boost Jeddah Islamic Port’s re-export activities, reducing the time and cost of logistics for importers and exporters, alike. According to a press statement, ‘the park will provide an integrated platform of services that link port operations with last-mile activities,
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providing temperature-controlled storage for cargo, in addition to its processing, labelling, fulfilment, consolidation and de-consolidation’. “We are committed to enhancing the role and the status of Jeddah’s Islamic port, which is strategically located on the Red Sea and has historically played a pivotal role in facilitating the movement of trade between the East and the West,” commented Sultan Ahmed Bin Sulayem, Chairman and CEO, DP World. “A key part of our strategy as an endto-end supply chain solutions provider, is to package logistical services for our customers and bridge any existing gaps in the market. Facilities like these will enable us to make deeper inroads into the Kingdom, by extending our collaboration with leading logistical service providers,” he added.
Holistic approach “The park will provide advanced and eco-friendly e-services by integrating the operations of the South Container Terminal with the new logistics park. The Authority’s move to develop a
holistic logistics park will enhance the competitiveness of the Jeddah Islamic Port. It will also contribute to raising the quantity of trans-shipped goods in line with the national strategy for transport and logistics services,” affirmed Omar Talal Hariri, President, Mawani. “This partnership will connect the port’s operations to the new logistics park to offer end-to-end logistics services with high efficiency. It will also help us further expand our collaboration with major logistics service providers, enhance the re-export operations and cut costs of the logistics services to provide best-in-class services to stakeholders and investors,” Hariri added. It is important to note that DP World signed a new concession agreement with Mawani in April 2020 to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for the next 30 years, committing to invest a total of more than US$ 800mn to expand and modernise the terminal. When the project is complete, the revamped terminal will increase Jeddah Islamic Port’s container handling capacity from 2.5mn to 4mn TEU.
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COVER STORY—SLIMSTOCK
Initiating Transformation:
Enabling Effective and Better Supply Chain Decisions Slimstock will soon be celebrating three decades of an illustrious and successful track record while retaining its top spot as a market leader in inventory optimisation. As a leading inventory management specialist, Slimstock has worked and partnered alongside industry professionals, domain experts and other multiple stakeholders to develop its proprietary, sophisticated, award-winning inventory optimisation platform Slim4.
S
ince its commencement in 1993, the Netherlands headquartered Slimstock has been synonymous with better demand forecasting, effective inventory optimisation and supply chain collaboration. The combination of its competent, advanced supply chain performance enhancement platform, Slim4, and its team of dedicated inventory management experts has empowered and enabled its customers boost product availability levels, reduce
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supply chain costs, and mitigate risk. To get the inside track and the lowdown on its corporate mission success, Global Supply Chain conducted an extensive and exclusive interview with the newly appointed Sandeep Walia, Chief Transformation Officer—CTO, Slimstock Middle East Africa (MEA) and Turkey. Sandeep comes with strong professional credentials with vast experience and exposure to this field and a strong association and identity with
Slimstock. Sandeep was the first customer of Slimstock in the Middle East and his odyssey as a customer- started in 2017. It continues to this day, as a new member of the Regional Team. Global Supply Chain (GSC): Give us the one-minute spiel on Slimstock as a provider of distinctive Inventory Planning and Supply Chain solutions? Sandeep Walia (SW): Over the last
COVER STORY—SLIMSTOCK
Over the last 30 years, Slimstock has helped over 1500 businesses worldwide to boost profitability and unlock working capital by improving availability, increasing efficiency, and eliminating waste. Sandeep Walia Sandeep is an omni-channel supply chain and strategic transformation professional with 17+ years International Leadership Experience with global leaders – L’Oréal, LVMH, Adidas, Blue Yonder (part of Panasonic Group). He has lived & worked in France, Germany, Japan, Singapore, India and protracted stay projects in USA, Switzerland, South Africa & China. Currently, he is based in Dubai, UAE. Shared P&L responsibility, aligned Supply Chain strategy & execution to contribute to Sales/ Profit/Market Share growth in EU / APAC / META. Sandeep led the regional E2E Omni-Channel Supply Chain & Product compliance team and additionally managed two dedicated 3PL partners based in Dubai, UAE and Jeddah, KSA for the Number 1 Beauty Retailer in the region Designed and Implemented the Supply Chain Organisation, OMS / WMS Integration, Last mile logistics with 3PL for launch of E-Com businesses in UAE & KSA.
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r growth…
COVER STORY—SLIMSTOCK
30 years, Slimstock has helped over 1500 businesses worldwide to boost profitability and unlock working capital by improving availability, increasing efficiency, and eliminating waste. Underpinned by our dedicated Academy and cutting-edge R&D Department, we support thousands of supply chain professionals with actionable inventory insights, ongoing development, and industry best practices. We believe achieving excellence in inventory management should be
simplified and easy to use. That’s why we dedicate all our time into developing the skills, knowledge, and tools that Supply Chain teams need to thrive.
Does this sound familiar…
GSC: What in your opinion, made you eminently qualified for this position? SW: I am an omni-channel supply chain and strategic transformation professional with over 17 years of international leadership experience with global players like LÓreal, LVMH, Adidas and Blue Yonder. Having worked across cosmetics,
“All of the working capital is tied up in stock! How could we let this happen?”
luxury, retail, apparel and footwear, and F&B gives me understanding of digital supply chain transformation needs across different verticals. The tuning of supply chain set-up differs largely if you are an uber luxury fashion brand providing best in class retail experience or an online cosmetics retailer selling wide portfolio of more than 100 brands. As a strategic supply chain partner, it is important to understand these nuances. Having lived and worked in France, Germany, Switzerland, Japan,
“Inventory is piling up in the warehouse. Soon it will consume us all.”
SLIM4 PLATFORM TIME VS AUTOMATION
“Where has all this obsolete stock come from!”
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EXCEL VS EFFICIENCY
BEST OF BREED ADD-ON TO ANY ERP SYSTEM
WORKFLOW DRIVEN AND ROLE BASED
PROCESSING POWER
COMPLEXITY VS SIMPLICITY
USER FRIENDLY
MONEY BACK GUARANTEE
COVER STORY—SLIMSTOCK
SUCCESS IN EVERY INDUSTRY
RETAIL
ECOMMERCE
WHOLESALE
BUILDING MATERIALS
CONSUMER PRODUCTS
MANUFACTURING
FMCG
PHARMA
AUTOMOTIVE
RIGHT STOCK. RIGHT PLACE. RIGHT TIME.
FORECASTING
ASSORTMENT INVENTORY MANAGEMENT
Singapore and with long-stay projects in USA, China and South Africa gives me detailed understanding of supply chain configurations across different markets. For example, same day delivery is a basic service here in Middle East but is still considered as premium in EU and not many players provide the this service in US. I have proven track record of IBP / S&OP, Supply & Demand Planning, Production Planning, E-Com Fulfilment, Digital Assortment Management, MDM (Master Data Management), BI (Business Intelligence), WMS (Warehouse management System) related Transformation projects in NA-North America / EMEA-Europe Middle East Africa / APAC-Asia Pacific with dedicated focus on Change Management This is the cherry on the cake. I was the first customer of Slimstock in the region in 2017. So, I have first-hand
SHELF LIFE MANAGEMENT PROMOTIONS MANAGEMENT
PRODUCT LIFE CYCLE MANAGEMENT BOM
experience of Slimstock’s dedicated customer-first approach GSC: As the newly appointed Chief Transformation Officer for Slimstock MEA, what are your top priorities for the company for the short and the longterm? SW: In a relatively short term, the top priority is to get to know our existing customers in the region and how we can further add value to their businesses. Post-Covid supply chains will need to operate with an agile and adaptive toolkit, and we consider that it is our duty to support our customers in that journey For the mid-term, I would dedicate time and effort to ensure that we are positioned as a holistic / 360-degree knowledge partner in domain of inventory optimisation, demand and supply planning with a clear value add across people and process components,
ORDER OPTIMISATION
MULTI – LOCATION MANAGEMENT
along with technology of course. This is something that we already do in Europe and North America and in my opinion our regional businesses are also starting to focus on the People and Process Maturity when they go for digital transformation initiatives. GSC: What kind of new demands / pressures are being put on your business now in this pandemic-era? SW: Imagine driving a car without shock absorbers. You will not notice much until you hit a bumpy road. Pre-Covid, supply chains were designed to be reactive, responsive, lean with a focus on efficiency. However, lean supply chains can be fragile in face of unplanned disruptions as we saw during the fatal combo of demand and supply shocks during the Covid, from which the supply chains still have not recovered fully.
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r growth…
COVER STORY—SLIMSTOCK
SUPPLY CHAIN IS OUR PASSION
Covid-19 exposed how the focus on reducing costs can impact supply chain resilience and make it difficult to effectively respond to and recover from crises. Post-Covid, resilient supply chains will become the competitive advantage. The resilience will come with organizational commitment and equal focus on “Supply Chain Planning” and ‘Supply Chain Execution’. Heavy spend in SCE without proper focus on SCP and vice-versa will backfire. Also, more and more customers in the region are realising that understanding demand signals and generating supply responses accordingly will not only add more value to top and bottom lines but will also drive their Sustainability agenda. Because the quality of your demand planning accuracy and wastage are directly linked. Our holistic people, process, technology approach can help our customers build agility, dexterity, resilience in their supply chains
Does this sound familiar…
“Inventory is piling up in the warehouse. Soon it will consume us all.”
SOFTWARE AND SUPPORT
“All of the working capital is tied up in stock! How could we let this happen?” SLIMSTOCK ACADEMY
CONSULTANCY AND RESEARCH
“Where has all this obsolete stock come from!” through Smooth glide
Supply Chain Maturity Stages
Gartner Identifies Five S&OP Maturity Stages 1
Silo Planning
Traditional Approach
2
3 S&OE
4 S&OP
5 IBP
E2E
Driving End to End Supply Chain Optimisation
Suppliers
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Supply Planning
Demand Planning
Operation & Logistics
Sales & Budgeting
Finance
Portfolio Management
Stages ne
3 Customers
1
Suppor
COVER STORY—SLIMSTOCK
GLOBAL SERVICE PROVIDED LOCALLY
1500+
CUSTOMERS ON BOARD TO DATE
200+
IMPLEMENTATIONS DELIVERED IN 2022 ON TIME AND WITHIN BUDGET
96%
CUSTOMER RETENTION RATE
Sandeep Walia – CTO with Sadi Abdel Kariem Al Sadi H. – CEO
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WE ARE ACTIVE IN
50+
COUNTRIES
WE HAVE OFFICES IN
25+
COUNTRIES
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COVER STORY—SLIMSTOCK
SLIMSTOCK’S 8 PROMISES
Does this sound familiar… Promise #1 Promise #2 We will make you outperform
We guarantee an ROI of less than 1 year
“All of the working capital is tied up in stock! How we let You this happen?” To be competitive, could you can return it, if
need a winning supply chain
Promise #5
We help you reduce your footprint
you don’t like it
Promise #6
Our academy is free for our customers
“Where has all this obsolete stock come Make the effort to In order to win, you reduce waste need to train from!” Our S&OP/IBP & Inventory planning expertise is best positioned to help our customers in this big supply chain transformation that Covid initiated. As the famous adage goes, if you fail to plan, you are only planning to fail. GSC: What do you count among your strengths and USPs-unique selling propositions? What sets you apart from your peers? SW: Our dedicated focus and expertise on supply chain planning and inventory optimization and a strong customer base world-wide across many industries are plus points. We have a net retention rate of over 97%. Our dedicated and super talented teams are based in UAE, Turkey, and South Africa to support the Middle East Africa region GSC: What industry verticals do Slimstock solutions find application in? SW: We support our customers across
Promise #3
We design software people love working with
Promise #4
We provide you with the latest innovations
“Inventory is piling up in the warehouse. Soon it will consume us all.” Software should seamlessly support people & processes
Don’t settle for second best
Promise #7
Promise #8
The best lessons come from your peers
Every customer should be a reference
We actively connect you with our network
many industry verticals – automotive, FMCG, luxury, omni-channel retail, pharmaceutical, Food & Beverage, fashion, industrial equipment, grocery, and other sectors. This goes to show that our sophisticated Slim4 Platform can answer the supply chain needs of different verticals easily. Our multi-industry customer base also helps us in our product development strategy. Through our close collaborative relationship with our existing customers, we are always developing our solution and services so that we consider the realities our customers operate it. GSC: How is technology driving change in the manner companies are conducting their businesses in the supply chain realm? SW: Big Data & Predictive Analytics, Cloud based Apps, IOT, 3D Printing have already established themselves in Supply Chain Operational Excellence with well-defined
We deliver as promised
use cases and tangible results AI/ML enabled planning and decision making is going through an interesting expansion phase as use cases across industry multiply but the quality of data available for self-learning tech is still a challenge Blockchain has lot of potential in transactional supply chain and logistics execution In my opinion, Technology itself alone cannot drive and sustain change but what we see is that Technology is helping businesses support the constantly changing customer expectations, regulatory framework, X-border trade, geo-political dynamics, and other parameters. GSC: What in a nutshell are the new technologies in inventory / warehouse management to eye in the present context? SW: Demand sensing, Automated Data Cleansing, AI/ML enabled planning
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r growth…
COVER STORY—SLIMSTOCK
Does this sound familiar…
“All of the working capital is tied up in stock! How could we let this happen?”
frameworks to adequately match supply response to demand signal are some of the new and emerging technologies that offer much hope.
The fulfillment of these orders will directly depend on quality and availability of inventory at these nodes. Wrong sizing of inventory would mean a direct impact on NPS, CX, Topline & Costs. And this is where Slimstock helps its customers with automated decision-making platform to ensure right stock at right time at right place. Traditionally, the region has focused a lot on multiplying workforce rather than automation because of reasons that are very specific to the Middle East but moving forward Automation (physical operations and qualitative decision making) will be on top of CIO and CSCO’s (Chief Supply Chain Officer) agenda if it is not already
“Where has all this obsolete stock come from!”
GSC: How important is automation for the logistics in the Middle East and what trends are you observing in the region? SW: It is very well documented already that Covid shifted lot of demand from offline to online and changed consumer’s buying behavior. Consumers today require that everything be available for ultra-rapid fulfillment and delivered to them at a reasonable price. Due to the highly competitive nature of the ME market, On-demand delivery is quickly turning into a differentiator. As we discussed before, Same-day delivery was once something that was premium. Today, it is more than just an ‘add-on’, it’s now expected by many consumers in ME. As such the growth of MicroFulfillment will become even more localised as organisations will continue to leverage multiple locations to fulfill orders and reduce time to delivery. Automation of physical side of fulfilment operations is one opportunity but that would not be efficient with wrong inventory at the wrong place. Imagine a business using dark stores, ship from store, click & collect etc. as possible options for consumers who shop with them online.
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GSC: What opportunities and challenges confront Slimstock MEA going forward in the current landscape? SW: Every challenge in itself is an opportunity if we have the right talent. This is where I see biggest opportunity. Supply Chain Talent in the Middle East region, specifically in SCP space is not at the same level as in the EU or North America because lot of investment in Middle East has gone into SCE Tech in last few years. Focusing on “last mile” is super important but not at the price of “first mile” As Middle East businesses look to upskill the planning capabilities of their teams, we are well positioned as their knowledge partner. We do not consider
“Inventory is piling up in the warehouse. Soon it will consume us all.”
ourselves as an IT vendor, this is not what we do, we think holistically about our Customer’s transformation journey from People, Process & Tech standpoint. GSC: How significant is the region for Slimstock? SW: I would like to share a personal anecdote here. As I mentioned before, I was the first customer of Slimstock in MEA region and one of the promises that Slimstock made during the RFP was to open a fully-fledged office in the region if they are selected as a vendor. And they really did it even though they were finally selected for their adequation to our needs. Now, we have offices in Dubai, KSA, Turkey and South Africa, which shows the importance of this region. Mainly because we have big customers who have operations not only in GCC but also in many countries across MEA and Turkey. GSC: As the official at the helm, what is your vision for Slimstock MEA going forward? SW: It is quite simple to be honest. Continue to drive the business with our customer-first approach, add consistent value to Operational Excellence our customers strive for. Maintain our position as preferred knowledge partner in the space of Supply Chain Planning. Make it a fun place to work because a team that plays together, stays together!!
Perfecting waste Perfecting waste collection collection
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This truck is also equipped with superior safery features such as advanced emergency middle-east.renault-trucks.com brake system, lane departure warning system, and tire pressure monitoring system.
PACE SPEDITION: EXCLUSIVE INTERVIEW
Keeping Pace
Offering value-added solutions and services beyond the realm of freight forwarding operations Focus on human resources capabilities, training and technology to excel in a highly competitive and challenging domain In a recent exclusive interview, Warren Jacob, the CEO, Executive Director and Founder, Pace Spedition, affirms that he does not merely see his 3PL services provider company as a link in the supply chain, but an integral and reliable manager of the critical first and last mile in a seamless and efficiently-run supply chain mechanism.
Mumbai-native Warren Jacob first came to the UAE in 1997. He worked in C-Suite jobs at key companies—Freight Systems, the Transworld Group and Allport which has since been rebranded to EV Cargo. He has had extensive overseas experience having worked in Singapore, Malaysia, Hongkong and China when he headed operations across APAC based out of Singapore. Warren is a qualified trainer in soft skills and a guest speaker and some of the B-Schools in UAE. He is currently domiciled in the UAE with his wife. His daughter Joanna lives in the UK and is pursuing her MBA in Logistics & Supply Chain. Warren holds a Master’s in Business Administration with specialisation in Advertising.
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PACE SPEDITION: EXCLUSIVE INTERVIEW
Pace Spedition-Pratt & Whitney PW4056 Aircraft Engine moved from USA to UAE.
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here appears to be no slowing down and Pace Spedition is progressing at a fast pace. Located in the DMCC Free Zone, the 2016-established 3PL company comes with professional expertise, experience and proven performance credentials. The company founded by logistics veteran Warren Jacob presently serves customers across the region and the continents. He affirms that his vision to build a successful company comes from the passion he has for the business and the commitment and zeal to serve his customers with uncompromising standards of service, competence and capability. Pace Spedition’s network of partners are carefully hand-picked, and its employees are trained to work with a service mindset, delivering a topclass service consistently, he asserted. Warren explained that technology is an important tool for the company, and it harnesses that strength well as it is only too well aware that if they are to keep their customers happy, they need to give
them visibility on every single shipment moving through their systems, notably PACE-TRACK which is one prominent such initiative.
PACE-TRACK PACE-TRACK offers a full suite of services and advantages including access to shipment history and monitoring, shipment status report, download reports, customized reports and accounting data. Pace Spedition prides in offering solutions that go far beyond just freight. This also constitutes their corporate motto. Pace Spedition offers comprehensive 3PL Logistics solutions for general cargo and hazardous or dangerous goods. The range of services includes but is not restricted to flexible storage options; ambient and temperature-controlled storage; value-added services like kitting, pick and pack, labelling; cross-docking; fully automated Warehouse Management System and scheduling of standard reports and ability to create reports as required by our customers.
Global Supply Chain conducted an exclusive interview with Warren Jacob, CEO & Executive Director and Founder Pace Spedition where he spoke expansively on a broad spectrum of subjects. Global Supply Chain (GSC): For the uninitiated, give our readers the oneminute spiel on Pace Spedition. Warren Jacob (WJ): At Pace Spedition, we aim to bring solutions to our customers within the legal framework of doing ethical business. We saw a big vacuum in the Critical Logistics segment in the UAE as there are not many serious players here who focus on this end of the business. To offer solutions on critical logistics, you need to have the support props in place and a working, 24-7 hotline so customers can reach you on and a sharp ERP system to offer online visibility to the customer to reduce anxiety and grief. Whilst we also do general cargo and manage some top e-commerce B2B businesses, our strength is in the Enforcement, Aerospace and Defense Logistics segment. This is the niche sector we are currently focused on whilst
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PACE SPEDITION: EXCLUSIVE INTERVIEW
GSC: Why did you set up Pace Spedition? WJ: After spending more than twenty years in the UAE holding C-Suite positions, I realized it was time for me to break-out and build something of value which would be recognized as a great company to do business with and Pace Spedition was set up in May of 2016.
GSC: What industrial sectors and verticals does Pace Spedition cover for its clientele? WJ: Our current range of services comprises Aerospace and Defense, Fine Arts Logistics and e-commerce Business-to-Business is the backbone of our business verticals. Being a prominent freight forwarder, we have to offer the complete mix of services ranging from Air, Ocean and Land which integrate into the business verticals we serve.
GSC: How has Pace Spedition performed thus far? WJ: For any start-up, the initial few years are always challenging, and we were no different. As customers began to know us and valued what we do, business grew, and we have performed very well in the last three years.
GSC: What opportunities and challenges do you foresee for Pace Spedition going forward? WJ: We see opportunities in strong markets like Saudi Arabia, Egypt and in countries like Syria and Yemen, once the imposed sanctions are removed and the geo-political situation stabilizes.
continuing to offer a range of other multiple services for a diverse client range.
CEPA is expected to increase the total value of bilateral trade in goods to over US$ 100bn and trade in services to over US$ 15bn within five years.
Also, of great significance and potential rich pickings for both nations is CEPA, the historic India-UAE Comprehensive Economic Partnership Agreement, the new mega trade agreement between UAE and India is very promising, signed in February 2022. CEPA is expected to increase the total value of bilateral trade in goods to over US$ 100bn and trade in services to over US$ 15bn within five years. GSC: Describe your partnership with Compass Forwarding Inc. and particularly with its Saudi Arabian operations? WJ: We represent Compass Forwarding Inc in the UAE and our partnership with them has been since the very beginning. US-based Compass Forwarding is a boutique international logistics company and is a great company to partner and are a leading name in the Aerospace and Defense Logistics segment. Their Saudi Arabian set-up is very active, and we have been able to build good business between our two companies. Pace Spedition-Bell 412 helicopter fuselage moved from Canada to UAE
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PACE SPEDITION: EXCLUSIVE INTERVIEW
We are a people’s company and our key employees have been with us since the beginning. We value the hardwork every single employee has put into this company.
GSC: Are you planning overseas expansion or JVs or partnerships? WJ: Overseas expansions will only be through any strategic partnership which I think will benefit the company and people who work for us. Alistair Louis, Business Head Aerospace and Aamir Khan, Aerospace specialist.
GSC: How did Pace Spedition perform in 2021 and what is the outlook for 2022? WJ: In 2021 our top-line grew by 20% over the previous year and that was very heartening as our bottom line was also strong. The hard work and teameffort we all put in was productive and eventually delivered good results. GSC: How did the pandemic impact your operations and revenues, if at all? WJ: The pandemic did hurt us for the first three months in 2020 but later in the year and in 2021 global logistics had a V-shape recovery and we also benefitted from this. Business was stable during this period, and we were able to sustain ourselves as trade and commerce was still ongoing. GSC: What general concerns / challenges confront the generic freight sector in the UAE / GCC light of the current economic situation? WJ: The geo-political situation is always a concern for any business, and we need to be prepared for this with strong resilient plans and forward thinking to mitigate its impact. The UAE is a country where logistics is serious business, and the administration is always looking to
create new opportunities to strengthen this industry. We have world class infrastructure in airports and seaports and with the railway network being built the UAE will be a great place for companies to set-up offices and do business as logistics forms an integral part of any successful business plan. The UAE Government is also investing heavily in further developing transport infrastructure and introducing and initiating policies that foster growth. GSC: What are your growth and additional expansion plans for the short- and long-term futures? WJ: We would like to consolidate our position in 2022-23 and look for strong global players and partners who would like to participate in our success and set an imprint in the UAE. I am contemplating growth through consolidation. GSC: Why did you decide on DMCC for registering the company? WJ: We wanted to have 100% ownership of the business we do and the DMCC Freezone has supported us very well in this endeavor.
GSC: Pace Spedition is presently privately owned. Do you plan for the company to go public in the foreseeable future? WJ: We are a zero-debt company with no external debt and I prefer to keep it privately owned which gives me greater freedom in moulding the company the way I would like to see it grow. GSC; What is your vision for Pace Spedition on your watch? Where do you hope to steer the company? WJ: We are a people’s company and our key employees have been with us since the beginning. We value the hard-work every single employee has put into this company and would like to reward them with great career prospects working for us. We have strengthened our Aerospace team and have inducted Alistair Louis, Business Head Aerospace and Aamir Khan, an aerospace specialist who is an AOG-Aircraft on Ground expert handler, and this will bring greater value to our customers who entrust us with their critical AOG shipments. For now, it will only be value, value and greater value being delivered through our efficient, involved and highly dedicated people.
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SSI SCHAEFFER-EXCLUSIVE INTERVIEW
SSI SCHAEFER-EXCLUSIVE INTERVIEW
Shaping the future of Intralogistics
Excelling in offering modular, scalable intralogistics solutions and services With 70 operative companies and seven production facilities worldwide, SSI Schaefer is the world’s leading provider of products and systems for intra-logistic material flows and waste engineering, develops innovative concepts and solutions spanning multiple industries verticals.
I
n its most basic sense, Intralogistics refers to the streamlined flow of material and goods within a business enterprise, often involving solutions that automate the warehouse. Intralogistics harnesses technology and innovative processes to optimize systems, increase process efficiencies and capabilities. While logistics is the transportation and movement of goods from one business to another, such as different parts of the supply chain, intralogistics (also known as internal logistics) applies to material handling equipment within a particular business site, and often utilizes warehouse automation. Intralogistics involves detailed concepts, designs and planning for internal transport processes to enable optimized and smooth-running processes, as well as increased productivity. It impacts the end-to-end manufacture, installation and startup operation of specific products and systems, and serves as the foundation for running a successful business. It is vital that the intralogistics solutions for fulfillment and distribution centres are always up to date and subject to constant innovation.
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Long established Since its inception in 1937, SSI Schaefer has been an owner-operated, privately owned German family company. The company’s products and solutions find applicability in industry, trade, commerce, and diverse industry verticals. With regional headquarters in Dubai Logistics City, SSI Schaefer oversees extensive operations in the Middle East and Africa. Armed with proven and demonstrable credentials, SSI Schaefer is one of the world’s oldest and largest total solutions providers and components manufacturers in Logistics systems, storage, and handling solutions and IoT logistics software. Its highly diverse portfolio ranges from plastic containers through to automated high bay warehousing systems, customised to its clients’ needs. Complete and integrated solutions are based upon quality products manufactured within the SSI Schaefer group and fully supported by a robust and reliable customer support and maintenance team. The company is constantly evolving and remains at the forefront of innovation in both new product development and the provision
of unique intralogistics solutions, according to information posted on its official portal. To get better acquainted with the latest updates and the lowdown on the latest developments at SSI Schaefer, Global Supply Chain conducted an exclusive interview with Carsten Spiegelberg, Managing Director, Middle East, India & Africa. The following are the excerpts from that interview. Global Supply Chain (GSC): Characterize in your own words the role and mission of SSI Schaefer in the domain of modern automated intralogistics systems. Carsten Spiegelberg (CS): Staying relevant to the industry and our customers is our commitment and our goal. The objective at SSI Schaefer is to enable our customers to achieve better business performance through intelligent processes. To this end, we offer modular, scalable intralogistics solutions and outstanding project execution standards across the full range of intralogistics products, solutions, and services. Offerings range from simple pallet racking for manual warehouse operations, semi-automated order fulfillment up to fully automated
robotic solutions, including the necessary software packages. GSC: How is automation revolutionizing the industry modular warehousing and automated logistics solutions? CS: Warehouses today are embracing automation to improve efficiency and reduce human labour and to cut down supply chain wastes. Automation can be adopted on different levels, however, to
streamline storage, picking, and ordering processes, warehouses need to be equipped with Warehouse Management System (WMS) software and technology that would track and trace inventories ingeniously. First movers such as the E-commerce, Cold Chain, and Food & Beverage industries have started to deploy more advanced automation technologies to meet the ever-increasing consumer demand.
Other market sectors that are just about to take off have begun to adopt automation by looking into the different areas of their logistics process to “fix”, in the hope of achieving a fully automated warehoue operation in the long run. GSC: How is the surge in regional (and global) e-commerce volumes driving business at SSI Schaefer in the Middle East?
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SSI SCHAEFFER-EXCLUSIVE INTERVIEW
CS: Since the pandemic occured, it has adversely affected many business processes. Over the last two to three years, many forward-thinking companies took advantage of the situation to digitalize their logistics and supply chain operations and that has provided big opportunities for our industry. Although we are slowly seeing the supply chain disruption wave recede, the effects are still considerably apparent in many market sectors. As such the developed transport logistics networks, rising internet penetration levels and a growing tech-savvy youth population in the Middle East have attracted many to invest in the region. Over the last decade, SSI Schaefer has been a preferred partner for many like-minded customers who share the vision of achieving world-class logistics systems in their business. Everyone of our customers is important to us, and the trust they placed with SSI Schaefer keeps the relationship strong. GSC: Narrate one or two of the latest technology breakthroughs / innovations recently introduced by SSI Schaefer?
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CS: Future-proof, sustainable intralogistics solutions must fit seamlessly into our customers operational processes, be infinitely expandable, and adapt flexibly to new conditions. Our approach is not to think in terms of individual components or systems, but to think in terms of integrated solutions. SSI Schaefer has a broad range of products and systems covering the entire internal material flow and we are continuously expanding this range with new ideas and innovations to adapt to changing markets and requirements. These products then form the foundation for system solutions specifically developed to meet individual requirements more effectively and efficiently.
To manage seasonal shifts in demand, combined with the expectation for e-commerce to continue growing upwards within the region and beyond, we are looking at establishing an integrative, collaborative effort between the labour force and automation, working together to ensure orders are fulfilled in a timely, accurate manner. Adopting automation technology and integrating it with current manual labourintensive operations is a progressive journey. To facilitate this long-term goal, SSI Schaefer can help identify and plan appropriate solutions that can be integrated into existing operational structures so that future challenges brought about by spikes in demands can be met head-on.
GSC: In this context, what is the role of automation? CS: The success of e-commerce lies in the various degrees of automation. As digital orders rise beyond expectations, it becomes manually impossible for e-retailers to accurately pick and pack each order and fulfil shipments on time without the intervention and accuracy of automation solutions.
GSC: How is the SSI Schafer faring in the Middle East and how do you assess the potential for future growth? CS: In line with our long-term commitment to our customers and partners we are continuously expanding our local competencies to be able to work together in trust and partnership to provide individual consultation in the local context, solve challenges for any
WAMAS allows efficient and flexible order processing, goods movement, and resource optimization with the provision and analysis of logistics performance data.
application, find appropriate solutions and ultimately offer the right products, supply system components, and implement complete solutions. Our local team and our competencies and experience for consultation, sales, implementation and after sales service have become stronger than ever. Across the region we can look at an everincreasing customer base where we have successfully commissioned not only manual warehouses and semi-automated storage systems, but also a wide range of fully automated warehouses and state-of-the-art shuttle solutions around warehousing and order fulfillment in a diverse range of industries. GSC: Briefly explain WAMAS software and how popular is this single software suite in the region? CS: WAMAS is a proprietary software developed by SSI Schaefer. The full suite allows efficient and flexible order processing, goods movement, and resource optimization, along with the provision and analysis of logistics performance data. Since the modular software manages and controls all intralogistics processes, it is suitable for warehouses at different levels of automation, making it an alltime favorite among our customers. GSC: Describe your partnership with SAP? CS: SSI Schaefer is a certified SAP partner, depending on the logistics concept, we can support customers with the selection, introduction, and the operation of SAP-solutions. With a focus on customer benefits, SSI Schaefer in July 2021 officially became a majority shareholder of SWAN, an SAP logistics specialist. This strategic merger allows us to offer an even broader solution portfolio and outstanding expertise in SAP logistics.
SSI SCHAEFER-EXCLUSIVE INTERVIEW
Competence for every industry sector Perfectly designed solutions for every industry sector Same-day delivery, shop-friendly delivery, e-commerce, omnichannel marketing, and efficient production supply are making modern intralogistics more challenging than ever before. Efficient processes and a specifically tailored degree of automation combined with industryspecific expertise is the best way of addressing these challenges. Intelligent network intralogistics with high performance information technology plays an important role in securing the future of any company. Furthermore, the industry-specific experience and expertise of the intralogistics partner played a key role. Drawing on this experience and expertise, SSI Schaefer experts automate and optimize processes, supporting them with the company’s proprietary software solutions. The WAMAS logistics software from SSI Schaefer has a modular design and can be perfectly adapted to a customer’s particular requirements. In addition, it can be effortlessly integrated into existing systems as a result of its diverse interfaces. As a certified SAP service partner, SSI Sschaefer extends its software portfolio with solutions from SAP. Specific expertise in six market sectors Although many industry sectors face the same challenges with regard to their in-house material flow, their strategies and solutions are incredibly diverse. That is why SSI Schaefer has specialized in six market sectors,
combining its extensive expertise: Food Retail: Automated storage solutions for customers who store and ship foodstuffs. Products are delivered to wholesalers, businesses or via e-commerce channels. Warehouses generally include different temperature zones. Food and Beverage: Storage and picking solutions for beverages, foodstuffs, confectioneries, deepfrozen goods, and dairy products. Retail and Wholesale: Solutions for companies whose business consists of temporarily storing and reselling primarily non-food products to retailers or end customers. SSI Schaefer’s entire product spectrum is utilized, depending on the specific sub-market sector. Healthcare and Cosmetics: Storage solutions for the pharmaceutical and cosmetics industries. The goods are primarily delivered to pharmacies, cosmetics businesses, and e-commerce customers. Industry: Automated warehouse and transport solutions for the industrial sector. Customers include machinery and equipment manufacturers, along with the automotive and electrotechnology sectors. The solutions range from storage logistics for production facilities and spare parts logistics to the use of robots and auto-guided transport systems. Fashion: Solutions for customers who produce fashion articles (apparel) or trade with them. These goods can be transported and stored horizontally, hanging, or packaged.
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SSI SCHAEFER-EXCLUSIVE INTERVIEW
GSC: What are the opportunities in store, competition and challenges confronting SSI Schaefer in the region going forward? CS: Globally the outlook for the logistics industry is excellent. The demand clearly outweighs the available resources, which brings us directly to the challenges for our region. Central Europe, North America, Australia, and other countries seem to have moved out of the pandemic and pulling all available capacities. Investment plans are approved quicker having longer RoI’s in mind. In times where steel prices and shipping rates rise in double digits on monthly basis, where semi-conductors and electrical components are facing a global shortage, quick and controlled decisions are the key to secure the scarce available resources. Nevertheless, the opportunities in our industry and in this region strongly outweigh the risks. Quality and technology driven solutions will be in very high demand in the years to come.
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GSC: What futuristic trends and advent of technologies do you foresee in intralogistics automation for the region? CS: Every individual warehousing and distribution requirement is different, so each application will also be different. Software and automation technology should match the respective requirement when it comes to solution design and installation. While smaller manual applications may be able to handle a one-size-fits-all approach, scalability for future should be mandatory. In this kind of environment flexible technologies around autonomous vehicles, robotics and unit sorter systems will further develop and continue to grow their share. At the same time traditional technologies around automated warehousing including a wide suite of shuttle solutions, conveyance and order picking will remain, adapted, and developed further. These then need
to be applied and customised into larger integrated facilities designed for retail, omni-channel and large-scale e-commerce applications. GSC: How is SSI Schaefer adopting and adapting to these new technologies and trends and demands from clients? CS: With its international presence, its comprehensive portfolio and strong innovation capabilities, SSI Schaefer is well prepared to adapt to the specific needs of each of our customers, recommend and select the right level of automation and adopt adequate technologies and systems from within its international portfolio and beyond. Our growing local workforce, in close co-operations with the competence centers in our European and Asian headquarters, assures that our customers in the region have full access to these innovations, whilst maintaining individual consultation in the local context.
Every individual warehousing and distribution requirement is different. Software and automation technology should match the respective requirement when it comes to solution design and installation.
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COUNTRY REPORT: UAE
Logistics industry-related investments gravitate to and surge in the UAE Transportation and storage sectors contributed nearly US$ 20 billion to GDP, accounting for more than 5 % of UAE GDP in 2021—Frost & Sullivan Strong recovery during the post covid growth, improved oil prices, and e-commerce are some factors leading the growth in the UAE in 2022. Freight activity improved significantly in 2021, Jebel Ali Port handled 13.9 million TEU in 2021, and overall economic growth picked up to 3.2 % in 2021, asserts TJ Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan, the respondent to our questionnaire.
G
lobal Supply Chain got the lowdown on the UAE logistics landscape for this special country report in an exclusive Q&A with Frost & Sullivan’s TJ Sivan, our regular contributor, analyst, and consultant. Global Supply Chain (GSC): What is your preliminary assessment of the logistics landscape of the UAE? TJ Sivan (TJS): The impact of Covid-19 on the logistics sector has been severe due to supply chain ‘disruptions,’ stringent restrictions on movement, and border control measures. GDP growth declined by 2.8% in 2020, the non-oil sector, which contributed 73% of the GDP, was declined by 3.9% in 2020, and export growth declined by 20% in 2020. Improved oil prices positively impact government finance and overall GCC growth. Policies are targeted toward easing restrictions and making UAE an attractive destination for investment. With improving economic and trade growth, the logistics landscape is shifting towards an investment-friendly environment with increasing participation of the private sector, and prospects look bright for the logistics sector.
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GSC: Why, in your evaluation, does the UAE occupy a place of pride as a premier logistics hub in the region? TJS: Transportation and storage contributed nearly US$ 20bn to GDP, accounting for more than 5% of UAE GDP in 2021. Being a major logistics hub in the region, connectivity with regional neighbours has improved significantly, driven by growth in trade. GCC is a major destination for non-oil exports and re-exports, accounting for 20% and 29%, respectively. Major re-export markets for UAE include Saudi Arabia, Iraq, Oman, Kuwait, India, and China, accounting for 50% of total re-exports. The recently signed landmark Comprehensive Economic Partnership Agreement (CEPA) with India, is expected to increase bilateral trade by US$ 100bn, and a separate agreement with Israel is also expected to further boost bilateral trade by US$ 10bn by 2027. With a focus clearly on trade expansion and economic diversification, expansion and modernization of transportation and logistics infrastructure will be given priority and UAE will remain a hub for not only for logistics but also for other
COUNTRY REPORT: UAE
end-user sectors like e-commerce, entertainment, and medical tourism, and hub for the financial market. GSC: The UAE economy is being boosted by surging oil prices and revenues. What implications does this have for the UAE’s economy in real time and what is your assessment of the same? TJS: The oil economy accounted for 2% of Dubai’s GDP and 50% of the GDP of Abu Dhabi. Overall, oil contributed to 28% of the GDP of UAE. Dubai has benefitted from economic diversification initiatives and, as a
result, reduced dependence on the oil sector. For example, Expo 2020 has helped to boost activity between October 2021 to March 2022, and the relaxation of travel restrictions has contributed to a strong recovery in the tourism and hospitality sector in 2021. Improved oil prices are expected to have a positive impact on government revenue, but expenditures will be focused more on priority sectors. GSC: How is Etihad Rail a game-changer for the UAE? TJS: The UAE Railway Programme, which was launched in 2016, comprises
three key projects, namely Etihad Rail freight services, Rail Passenger Services, and the third project is the Integrated Transportation Service. Etihad rail services connect Ghuwaifat on the border with the Kingdom of Saudi Arabia to the Port of Fujairah on the UAE’s eastern flank the Gulf of Oman. The UAE government has prioritized completion of rail infrastructure development as part of its ‘Projects of the 50’ development initiative. UAE Railway Programme will connect 11 cities spread across seven emirates (from Al Sila to Fujairah) and reduce
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COUNTRY REPORT: UAE
travel time significantly. Passengers can travel from Abu Dhabi to Dubai in 50 minutes and from Abu Dhabi to Fujairah in 100 minutes. As part of the Integrated Transportation Service, smart transportation solutions will be developed with a focus on planning and booking travel plans and providing integrated logistics solutions by connecting customs with logistics operations. GSC: When fully complete and operational, what implications will this have for the logistics sector in the UAE? TJS: Completion of Etihad Rail will transform the UAE freight logistics in many ways. The national railway is expected to reach an annual capacity of over 50 million tonnes of goods between ports and consumption and production centres. The project comes in line with the
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environmental policy of the UAE, and it will reduce carbon emissions by 70% to 80% over a 50-year period and will reduce the stress of road freight in the UAE. It will improve connectivity and open up opportunities in multimodal logistics solutions. GSC: UAE’s Port of Fujairah has a unique location situated on the Gulf of Oman outside of the Arabian Gulf and the notorious Straits of Hormuz. What potential for streamlined logistics does the Port of Fujairah hold for the country? TJS: According to the Fujairah Strategic Plan 2040, the Fujairah seaport is expected to expand capacity and new terminals for oil, marine services, dry bulk, and containers. The throughput of Fujairah Port is estimated to increase from 0.72 million
TEU to 1 million TEU by 2030, which will reduce the stress on other key ports in the region. This will open up logistics opportunities and improve connectivity with GCC and neighbouring regions. As part of Stage 2 of the Etihad Rail project, Fujairah and Khorfakkan ports will be connected with production and consumption centres located in the other emirates. GSC: Where are the new opportunities and challenges for investment in the UAE’s logistics segment, and which sectors hold the most promise and potential? TJS: Transportation infrastructure, warehousing, and e-commerce logistics are some of the logistics segments that have opened opportunities. Road and rail connectivity will remain a priority area Etihad Rail development project, connected
COUNTRY REPORT: UAE
economy? What percentage roughly of the country’s economy do these constitute? TJS: Foreign investment Inflow into UAE is estimated at US$ 19.9bn in 2020 and US$ 20.7bn in 2021, which stood at 5.4 percent of GDP in 2020. Business environment policies, free zones, and increasing trade opportunities driven by economic diversification initiatives are some factors that made the UAE an attractive investment destination in the GCC region. Policy measures undertaken by UAE authorities include legislative reforms aimed at ease of doing business and removed ownership restrictions on foreign direct investment. Free trade zones in Dubai focus on light and heavy industries, technology, and financial services and have made Dubai a regional business hub. UAE attracted over US$ 50bn between 2016 and 2021, and FDI stock has increased from UD$ 119bn in 2016 to US$ 170bn in 2021.
About the Author: TJ Sivan has over 15 years of experience in economic, industrial, supply chain, and logistics research and consulting space. He has hands-on experience developing insights and actionable strategies for various strategic and operational challenges relating to supply chain and logistics.
and smart technologies are expected to be the key drivers in this space. Sea and airport modernization infrastructure will remain the focus due to increased trade growth in the east-west trade lanes. Rapid growth in e-commerce with UAE positioning itself as regional e-commerce will increase demand for warehouse and Fulfillment Centres. GSC: How significant is the logistics and supply chain industry to the UAE economy? TJS: UAE economy has undergone transformational changes due to economic diversification initiatives which helped reduce dependence on the oil sector. As a result of the strong infrastructure development focus, transport and tourism benefitted from the government policy initiatives. In recent years, the policy focus has
shifted towards building a knowledge economy and strengthening digital infrastructure. In essence, UAE is expected to witness transformational changes in two areas, namely maritime connectivity, and logistics hub. Major ports in Europe and Asia are well connected with UAE ports which will allow logistics service providers to offer multimodal solutions for the shipment of goods to other countries in the MENAEA region. As a major regional distribution centre due to strong trade relations with GCC and North and East African Countries, UAE will remain a major redistribution centre for food, electronics, healthcare, and e-commerce sectors. GSC: How significant are FDI and the free zones for the UAE’s logistics-heavy
GSC: Do you believe the UAE has reached its peak or saturation point in the current scheme of things, or is there scope for further growth and utility of its present infrastructure TJS: Government focus will continue to be on diversification as per recent initiatives Vision 2021 and the UAE CENTENNIAL 2071. Transformation of the UAE into a knowledge-based economy is the focus area in both initiatives focusing on increasing productivity, enhancing competitiveness, and investing in digital infrastructure. The UAE Policy for Advanced Industries focuses on developing competitive manufacturing firms and enhancing cooperation among public, private, and free zones. Industrial Strategy (2021-2031) aims to increase the contribution industrial sector from US $ 36bn (AED 133bn) in 2021 to US$ 81bn (AED 300bn) by 2031. As a result, trade and industrial growth are expected to play a key role in the next decade, which is expected to transform the supply chain and logistics industry in UAE. Transportation infrastructure, port modernization, and upgradation will continue to be a priority area for national policymakers, and as a result, growth momentum is expected to continue during the next decade.
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TURKISH CARGO
Turkish Cargo builds e-commerce bridges with Shopee Millions of consumers will be provided with easy, fast, and uninterrupted purchasing experience
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s one of the significant contributors to the global supply chain sustainability, Turkish Cargo builds and reinforces air cargo bridges for cross-border e-commerce shipments. The brand strengthened its strategic partnership with Shopee, the leading e-commerce platform based in Singapore. Thanks to the cooperation between Turkish Cargo and Shopee, millions of consumers, who have internalized the digital age, will be provided with easy, fast, and uninterrupted purchasing experience with the creation of a logistic network that interconnects brands, customers and vendors all around the world. “We are pleased to take our strong partnership with Shopee to a new level. We will continue to support Shopee`s growth with our global network and first-class
Turkish Cargo ground operations
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service. Our partnership with Shopee fuels the expansion of Turkish Cargo`s e-commerce business, by further leveraging Turkish Cargo`s unrivalled global network,” remarked Tarık Parlak, Turkish Cargo Sales Vice President (Asia Pacific). “With this exciting new partnership, Shopee will be able to connect with more consumers through our shopper-oriented logistics projects that leverage Turkish Cargo’s unique expertise in expanding its network and optimizing transportation to meet the growing shoppers’ need for elevated shipping experience,“commented Terry Xie, Executive, Shopee Logistics Service (SLS). With its unique location at Istanbul Airport, Turkish Cargo provides a flight distance of seven hours to more than 60 capital cities in the world and offers one of the most effective solutions to
Tarık Parlak, Vice President (Asia Pacific), Turkish Cargo Sales.
its customers by means of partnerships and dedicated services such as TK COURIER and AIRMAIL developed for e-commerce logistics. Thanks to its infrastructure, operational capabilities and fleet; Turkish Cargo aims to provide one of the best services at its new hub SMARTIST, which has been designed as to meet the needs of its customers and industry partners, and rank among the key players involved in global competition. Executing air cargo operations to more than 340 destinations, 98 of which are the cargo destinations, in 132 countries around the world, Turkish Cargo operates with its fleet of 376 aircraft, 20 of which are freighters, from its hub in Istanbul that connects the continents with its strategic importance, a corporate press communique concluded.
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QR CARGO
Qatar Airways Cargo recently launched the latest ‘Chapter Three’ in its WeQare charitable initiative LET’S STAND TOGETHER CHAPTER 3
“The carrier’s latest initiative was titled ‘Let’s Stand Together’ and included a donation drive that sought to gather donations in kind for children over a 15-day period in April-May 2022.”
G
lobal Supply Chain conducted an exclusive interview with Guillaume Halleux, Chief Officer Cargo at Qatar Airways to get the low-down of this charitable proposition and assess its progress. Global Supply Chain (GSC): Qatar Cargo recently announced ‘Chapter 3 of WeQare Programme– Let’s Stand Together’. Tell us more about this initiative? Guillaume Halleux (GH): The third chapter is part of our long-term sustainability programme, WeQare. Children are the future generation and every child has the right to dream. To make their dreams come true, we based our Chapter 3 “Let’s Stand Together” solely around children. We garnered the support of people worldwide in the charity drive to gather donations of toys, educational materials, and sports items. The idea behind Chapter 3 ‘Let’s Stand Together’ came to me when I was on a trip to Africa with my family and visited an orphanage. We were humbled by the visit and considering the role of Qatar Airways Cargo in air freight, we decided to launch the donation drive and involve our employees across the group and our customers worldwide to contribute and be part of this vision. GSC: Give us more details about the mechanics and operations of this Chapter 3? GH: We rolled out the charity drive
48 JULY – AUGUST 2022
worldwide, opening it up for business partners, friends, families, and anyone willing to participate in this noble campaign. Each of our stations set up its own collection point where people could drop off their donations. We also opened six collection points for our employees as well as a public collection point in Doha. To foster team building, during our internal annual cargo conference, all donations were sorted in Doha with participation from over 200 colleagues from Qatar Airways Cargo and our handling partner Qatar Aviation Services Cargo. GSC: What propelled Qatar Airways Cargo to make this move? And offer a friend and confidant GH: We are concerned about the legacy GH: WeQare was launched with Every child needs a familiar source of comfort; someone they can we leave for the future generation. Asinthe Chapter 1 – daunting. One Million Kilos, providing confide when the world outside seems Because WeQare, we want to give children a world’s leading cargo carrier, we constant strongly free transport companion they can call their own. of 1 million kilos of believe in giving back to the community humanitarian aid and medical equipment Moved by people and protecting our environment.qrcargo.com Our to charitable organisations. Many of our intention is to build and contribute to a freight forwarders have been allocated sustainable future through a sustainable space to give to charities of their choice. business. It was launched at the right time when The leadership team of Qatar Airways people worldwide were affected due to Cargo came together to brainstorm on how the pandemic. we could make sustainability applicable A number of freight forwarders and to our everyday life, through a series of ground handlers even offered their concrete actions designed for the industry. door-to-door services free of charge, be Hence, partly triggered by the Covid-19 it customs processing or pick-up and pandemic and given that sustainability is delivery. Chapter 2 – Rewild the Planet top on our agenda, WeQare was launched was launched in February 2021, through in the summer of 2020. which we offer free transportation for wild animals back to their natural GSC: Tell us more about Chapter 1 and habitats. This capacity is being made Chapter 2 and how successful were these? available for wildlife NGOs, and we
QR CARGO
Guillaume Halleux, Chief Cargo Officer, Qatar Airways Cargo.
know because of talking to them, that the biggest problem they face is cost of transportation. It was from these discussions that the idea emerged. The carrier transported seven abused and rescued cubs and lions from Ukraine via Doha to Johannesburg, under this programme for Warriors of Wildlife. There are upcoming live animal shipments under this chapter that will offer free transport to rescued wild animals.
donations were received and distributed to charities worldwide. When you do something good, you generate such a buy-in that everybody wants to do something to help, and everybody loves it. Given our commitment to sustainability and protecting the environment, we will also offset the carbon dioxide emissions of the donated items transported.
GSC: What was the duration of this 3rd donation drive and how successful was it? GH: We launched the donation drive ‘Let’s Stand Together’ on 26 April until 10 May. Due to high demand, we even extended it in the State of Qatar until 15 May. I am overwhelmed by the amount of support we received from our staff and partners worldwide. The success of the project was beyond our expectations. Donations were received from over 50 cities around the world and close to 250 staff of the airline helped in sorting the items before packing them and then assisted with the distribution. Nearly 100 cubic meters (300 boxes and crates) of
GSC: How do these chapters fit in with the broader Qatar Cargo CSR (Corporate Social Responsibility) initiatives? GH: Sustainability is high on our agenda and investing in this area brings multiple benefits to everyone including our planet. We have already started several initiatives at the hub such as recycling waste, reusing spreaders and wooden planks, operating electric forklifts and tractors that contribute to reduction of emissions and electronic transmission of data. We have also successfully implemented a paper waste recycling programme. WeQare is built on the four
fundamental pillars of sustainability: economy, environment, society, and culture and fits in well with the broader CSR initiatives listed above. The programme and its chapters are close to our heart and the support that we have received thus far for the first three chapters only proves that such positive actions also inspire others to contribute to sustainability. We are not only committed to our customers but also to the world community. In this sense, WeQare is part of the group’s CSR, of which sustainability is a pillar. GSC: Is this an ongoing process and what new initiatives do you plan to launch in the future? GH: WeQare is a long-term programme with several chapters due to be announced. Each chapter allows participation not only from the airline but also offers a platform for its customers to give back to communities. Next in line is Chapter 4, details of which will be revealed once we are closer to finalising this chapter, so stay tuned.
JULY – AUGUST 2022 49
CARGO AI: FEATURE & EXCLUSIVE INTERVIEW
Harnessing the most sophisticated and modern technologies in the airfreight domain Cargo Ai enables the seamless and effective management of the end-to-end cargo booking process using a single tool
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aunched in 2019 by its founder and CEO, Matthieu Petot, Singaporeheadquartered CargoAi is a SaaS application offering air cargo digital solutions to freight forwarders, airlines and GSAs. Petot created CargoAi three years ago with the vision of bringing best practices and technologies that were commonplace in other sectors to air cargo. Creative and driven by an innovative spirit, Petot is the quintessential logistician and freight professional with impeccable industry credentials having spent more than six years at Air France KLM Cargo and Martinair Cargo.
End-to-end management CargoAi allows users to manage the entire air cargo booking process via a single tool. The online platform brings together freight forwarders, airlines and GSAs, and offers shipment quote issuing, booking and tracking. All airlines’ schedules including cargo capacity are displayed in the application. Freight forwarders can check the flight schedules at a glance and compare rates thanks to this unique solution. CargoAi
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offers a range of levels of integration for airlines, from APIs to emails. Forwarders can request quotes and make bookings via the platform. The application allows airlines and GSAs to manage all quote and booking requests in one place. The tool also provides customers with data and analytics including 3D viewing of the shipment and capacity forecasts. Global Supply Chain engaged oneon-one with Matthieu Petot, where he spoke expansively on a wide spectrum of subjects related to the infusion of technology in the freight sector. Petot explained the role of CargoAi in the freight-technology interface. Global Supply Chain (GSC): For those unfamiliar, what is CargoAi in a nutshell, and what are its mission statement and corporate objectives? Matthieu Petot (MP): CargoAi is a technology company digitizing processes for Forwarders, Airlines, GSAs, TMS (Transport Management Systems) users and other players in the air cargo industry. We focus on supporting logistics players on their digital transition and offering a full toolbox that brings
efficiency, capabilities and visibility and eventually fuels the profit machine. We do this through the CargoAi flagship marketplace, but also through the rest of our portfolio, consisting of the API Suite, White Label, Business Intelligence as well as Sustainability Suite. GSC: Why was CargoAi founded? MP: Cargo Ai was founded with a simple mission: to bring the best available technology as well as the most efficient processes and best demonstrated practices from other industries into airfreight. GSC: How has CargoAi performed to date since its founding? MP: The pace of airline and forwarder adoption is well beyond business forecasts and expectations. This of course due to the pandemic-driven acceleration of all things digital, but it is also a direct result of our customer-driven product development. At CargoAi, customer centricity is not just a buzzword but a day-to-day reality where we see improvements in workflows and larger solutions being developed because of exchanges with our customers and partners. After the launch of the CargoAi
CARGO AI: FEATURE & EXCLUSIVE INTERVIEW
flagship eBooking marketplace in 2020, we have onboarded over 5,500 freight forwarders in 103 countries. Our users can book on our 63 airlines which are live in our portfolio to date. We have become the number 1 platform in terms of airlines available for instant booking, thanks to the trust built with global airlines, but also through our strategic partnerships with the ECS Group, the leading GSA worldwide. The ECS Group has set a strong target of transitioning 25% of their bookings from manual to digital on CargoAi by the end of the year. Besides the marketplace, we have also developed a number of other solutions for the airfreight industry. We have recently launched our API Suite product which enables direct integration of all marketplace functionalities within a forwarder operative environment. On the other side, our White label eBooking solution empowers airlines with a flexible, easyto-implement eBooking channel. We also launched our CO2 (carbon dioxide) calculator in 2021 which lets forwarders view and select flight options the carbon dioxide emitted in mind, as well as monitor specific AWBs along with the exact carbon emissions. Sustainability is ingrained in our DNA and we are looking forward to developing the tools even further to make an impact and support freight forwarders with their carbon reductions initiatives. GSC: What sets CargoAi apart? What are your distinctive attributes? MP: It is interesting to see that the three marketplaces are taking very differentiated paths with their product and positioning. One of them is going towards the eGSSA route, by building sales organisations in the market and directly competing with existing GSAs. The other one is taking the digital forwarder route, building a customerfacing organisation who can contact directly shippers and offer them a solution to book directly with some airlines. At CargoAi, we are focusing on making the procurement journey more efficient for freight forwarders of all sizes. For smaller
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CARGO AI: FEATURE & EXCLUSIVE INTERVIEW
forwarders specifically, there are a lot of pain points that we set ourselves to solve due to their lack of access to airlines and we are working with our significant airline portfolio to improve this. GSC: Tell us about the composition of the CargoAi team? MP: We have the best team that combines many years of experiencing on the smartest technology of serverless architectures, and the best knowledge of airfreight. GSC: Who in the logistics, supply chain and air cargo industry can use CargoAi products? MP: With the width of our current product portfolio, Airlines, GSAs, Freight forwarders and TMS are our main customers. Of course, schedules, tracking and Business Intelligence data can vastly benefit airfreight players of all sizes, from startups to large enterprises. GSC: Tell us about your partnership with TAP (Portugal) and Etihad Airways? MP: We welcomed TAP Cargo and Etihad Cargo as part of our live airlines approximately a year ago. Through our range of distribution solutions, we are helping these airlines realize new revenue streams, reduce costs, and
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capture more of the digital booking market. The CargoAi marketplace, API Suite and White Label solutions significantly broaden the distribution and marketing horizon for cargo carriers, thereby producing a continued beneficial impact on the top and bottom lines. GSC: How is CargoAi faring in the Middle East and how significant is the region for the brand? MP: Since its inception, CargoAi has been a worldwide solution. It is very important for us to be developing all main airfreight markets simultaneously because our customers expect worldwide solutions, not just a quick fix that only improves workflow in a specific market. We already have users in the marketplace and have been overly ambitious growth plans in the region by the end of the year, with major partnership announcements in the pipeline. Stay tuned! GSC: What opportunities and challenges confront CargoAi going forward? MP: Our mission is to connect the airfreight industry with cloud-native and API-first architecture, the best of Saas marketing technology, air freight expertise and a very pragmatic approach.
This is a vast mission and one of the key challenges is to carefully select the pain points to be addressed and stay focused on executing the chosen strategy. Thankfully, we have been able to tap into the vast and rich background of our Advisors to ensure we address the industry’s requirements from a 360 perspective. GSC: How did CargoAi perform in the Covid-19 era (2020 / 2021) and how were your financial metrics impacted by the pandemic during the period? MP: As it has been described by all major airfreight players, the pandemic has been a tailwind for the need to adopt digital solutions. CargoAi was born at the start of the pandemic and we can confidently say that this situation has allowed us to win several months on our financial forecast due to accelerated adoption on both airlines and forwarders side. GSC: What is your vision for CargoAi going forward? MP: We envision a well-connected airfreight ecosystem facilitated by the CargoAi technology and pragmatic solutions. Moving forward, we are planning not only organic growth, but also to partner up with smart solution or service providers, all of which will contribute to adding value to our customers’ supply chains.
CARGOSTACK—WIREMIND CARGO
Connectivity is the future:
SaaS Cargo Management Systems gets a big boost with CargoStack All data points within CargoStack, such as rates or capacity information, are linked to respective APIs CargoStack is Wiremind Cargo’s first holistic product suite designed to ensure seamless interaction between airlines, GHAs, GSAs, and forwarders.
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CARGOSTACK—WIREMIND CARGO
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rench technology specialist, Wiremind Cargo recently unfurled CargoStack, a comprehensive SaaS Cargo Management System (CMS) suite that has propelled enhanced air cargo activity using AI-driven capabilities to new heights. CargoStack is Wiremind Cargo’s first holistic product suite designed to ensure seamless interaction between airlines, GHAs, GSAs, and forwarders. Built around a SaaS core system, airlines can use the CMS to manage their entire cargo activity from schedule to live capacity and bookings, from products and customer management, to flight optimization and loading. Since all data points within CargoStack, such as rates or capacity information, are linked to respective Applications Programming Interface (APIs), its strategic modules can easily be integrated into the IT landscapes of the airline, whether to its own systems or those of its forwarding customers, as well as its GSA and GHA partners. The entire system architecture has been designed to enhance the airline’s competitive advantage. To get better acquainted with the newest technology offering, Global Supply Chain conducted a one-on-one interface with Nathanaël De Tarade, CEO, Wiremind Cargo, for the lowdown and detail spiel on the subject. Global Supply Chain (GSC): For those unfamiliar, give us a brief profile of Wiremind Cargo and the parent company Wiremind Group? Nathanaël De Tarade (NDT): Wiremind is a software company specialized in the transport industry, created in 2014 and based in France, which employs around seventy people. While we are the European leader in Revenue Management Solutions for the railway industry, we also have launched Wiremind Cargo as a dedicated entity to address the needs of the Air Cargo industry. GSC: Wiremind Cargo recently unfurled CargoStack CMS. Give us the update on this newest introduction? NDT: CargoStack is a Cargo Management Suite that is built around a core CMS. We believe that this CMS
is the most innovative of the industry: if you look at the user experience, at the way you can handle quotes, bookings, schedules, flights, allotments, and other parameters as well as at the AI-powered forecast for revenue optimization, we offer multiple solutions that make it a very different yet effective CMS compared with legacy systems. GSC: Why was it necessary to introduce CargoStack? How did it emerge? NDT: In a nutshell: looking at the level of maturity of the industry combined with the level of maturity of the technology, it appeared to us that it was the right thing to do. We have implemented SkyPallet with more than 15 clients in the past three years, and we saw how there was the potential to go much further: the industry is undergoing a large digital transformation and our skills and expertise can bring something to the table that other providers do not. In every recent discussion I had with customers, there was a moment where the question ‘can you do more?’ came up. GSC: What are the advantages and USPs (Unique Selling Propositions) of CargoStack? NDT: We have four clear differences with our competition. We are a standout in the following segments Firstly, in the UI (user interface) usage. The ‘look and feel’ of a system is no longer something which is “nice to have.” It has become a must-have if you want to retain talent. CargoStack offers the best UI in the market. Secondly, in the unique capacity management approach with our embedded SkyPallet module, which is also unique in the market. Thirdly, in our Data Science capabilities. We have deployed AIpowered models in production, not just PoCs or research. As an example, we have a Deep Learning model that optimizes revenue for 150 million pax bookings per year for our biggest railway client. So, we know how to use AI, and we also know where in Air Cargo it makes sense to rely on it. Demand forecast,
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CARGOSTACK—WIREMIND CARGO
In addition, we have already identified leads in the area, that we believe could be great fits for CargoStack, so we will work hard in convincing them to partner with us. GSC: How has the Wiremind Group performed in this fiscal year and what is the outlook for the remainder of the year? NDT: The Wiremind Group has had a double-digit growth in revenue every year since its inception, and this fiscal year was no exception. Wiremind Cargo is somewhat of a specific case, given the fact we are investing to launch new products, so our focus right now is on delivery.
dynamic pricing and overbooking forecast are typical areas where we offer things others do not. Fourthly, in connectivity. All our architecture is API-centric, which means every single data point belongs to a dedicated API. This allows to connect to any system more efficiently than in the past. GSC: How will airlines, freight forwarders and other stakeholders benefit from the adoption of this mechanism? NDT: I believe that working with a modern CMS is set to become a competitive advantage for airlines. They gain efficiency, and most importantly they become easier to work with. I believe that in the future, if you do not have a CMS that offers such advantages as those I described earlier, you will gradually lose market share. Of course, that is not to say that success relies solely on a good CMS. However, as the cornerstone system of Air Cargo operations, it certainly is a strong asset for airlines to achieve their targets.
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GSC: How well has the product been received since its launch? What feedback have you received? NDT: We have just launched the first version of CargoStack, which we unveiled at Air Cargo India in Mumbai. The response we are getting is encouraging, and we got some useful feedback as well as to how we can further improve the solution moving forward. GSC: Has any Middle Eastern Airline adopted or implemented this product suite thus far? NDT: As I was stating, we just launched the product. At this time, we have already established multi-pronged relationships with airlines, and we are confident we can secure contracts soon. GSC: What prospects do you foresee for CargoStack in the Middle East? NDT: The Middle East is a region that is important for us: it is very dynamic and home to some of the biggest airlines in our industry, and we have customers in that region.
GSC: What are the challenges confronting CargoStack in its rollout? NDT: The biggest one is definitely prioritization. We are aiming at making CargoStack the best system in the industry, so that comes with hard work, a lot of features to deploy and a very ambitious roadmap. It also means you have to find the balance between contradicting factors: keeping a fast pace while taking the time to regularly ask feedback from your partners and customers, covering a large scope of capabilities while making sure you keep your focus on the aspects that create more value for the customers. If you want to find that balance, you must apply fierce prioritization – a difficult but crucial process. GSC: Is CargoStack an upgrade or will it entail the replacement of legacy systems? NDT: CargoStack targets three types of clients: First, airlines that do not have any reservation system, and are looking to implement one. We provide consulting services for them as well. Second, airlines who do have a legacy system and are looking to transition to a modern SaaS system. Third, airlines who have a CMS but want to implement CargoStack modules, which can be acquired independently and plugged to any CMS. This is the case for example of our Revenue Management tool or our SkyPallet system.
ETIHAD RAIL
An agreement was signed between Etihad Rail and Spain’s CAF for supplying, and maintaining passenger trains in the Sakamkam area, where the first passenger train station will be built in the heart of Fujairah city.
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heikh Theyab Bin Mohamed bin Zayed Al Nahyan, Chairman of Abu Dhabi Crown Prince’s Court and Chairman of Etihad Rail, visited the final package of Stage Two of the UAE National Rail Network, which extends for 145km from Sharjah to Fujairah Port and Ras Al Khaimah, to review the progress of rail construction works in these Emirates. During the visit, which started in Al Suyoh area in Sharjah and concluded in Sakamkam, the Chairman inspected key landmarks on the project’s route in the final package of Stage Two of the network starting with the rail bridge in Al Suyoh area in Sharjah, followed by a stop in Al Bithnah area in Fujairah to visit Al Bithnah bridge, then headed to visit a number of tunnels where he witnessed tracklaying works across the tunnels in Al Hajar Mountains in Fujairah. Accompanied by HE Suhail Mohamed Faraj Al Mazrouei, Minister of Energy and Infrastructure, the Chairman witnessed the signing of an agreement between Etihad Rail and Spain’s CAF company, one of the world leaders in the railway sector, for designing, manufacturing, supplying, and maintaining passenger trains for the Etihad Rail project valued at US$ 326.7mn (AED 1.2bn) The agreement, which emerged as a result of Etihad Rail’s success at the Middle East Rail 2022, was signed by Shadi Malak, CEO, Etihad Rail, and Josu Imaz, CEO, Rolling Stock, CAF, in the presence of HE Inigo de Palacio, Ambassador of Spain to the UAE, and officials from both sides. The agreement was signed in Sakamkam area, where the
ETIHAD RAIL
Chairman Theyab Bin Mohamed Bin Zayed oversees progress of Etihad Rail project Etihad Rail Chairman witnessed the signing of agreement for manufacturing passenger trains valued at US$ 326.7mn
first passenger train station will be built in the heart of Fujairah city.
Etihad Rail Passenger Trains The passenger train will connect eleven cities and regions in the UAE from Al Sila to Fujairah, including Al Ruwais, Al Mirfa, Dubai, Sharjah, Al Dhaid, and Abu Dhabi. Passenger services will allow travellers to plan their journeys between the Emirates and cities of the UAE more efficiently, from booking their tickets until they reach their final destination. They will reduce commute time by 30-40% compared to other modes of transport, where travelling from Abu Dhabi to Dubai, and from Dubai to Fujairah, will take only 50 minutes only, travelling from Abu Dhabi to Al Ruwais
will take 70 minutes only, while travelling from Abu Dhabi to Fujairah will take 100 minutes only.
The National Railway Network Stage Two The National Rail Network’s route in the final package of Stage Two extends for 145km, connecting the borders of Dubai and Sharjah, going through Fujairah all the way to Ras Al Khaimah. It comprises 54 bridges and 20 wildlife crossing points. It also has nine tunnels which extend for 6.9km through Al Hajar Mountains, including the largest heavy freight railway tunnel in the Arab Gulf which runs for 1.8km. The route is known for its distinct geographic location, being surrounded by mountains on all sides.
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BITO-LAGERTECHNIC
BITO experiences a resurgence with 2021 billed the most successful year thus far Manufacturer upbeat about sales prospects and future potential
In a strong recognition of its products credentials, BITO was awarded the climate-neutral certificate. Furthermore, an extension and strengthening of the BITO Group Management, extension signals and reaffirms 2021 as the strongest year in company history with a turnover of EUR 303mn (US$ 318.25mn).
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he past two years have been very challenging for logistics companies and providers of logistics services. Border closures and supply chain disruptions because of the pandemic have shown how fragile supply networks can get from one moment to the next. Delivery delays have resulted in production stops or disruptions in trade chains.
Change of mindset “We have noticed that the circumstances have led to a change of mindset in many companies. After the market had recovered from the initial shock, both internationally and nationally, the trend was clearly towards more stockpiling to cope with times like those caused by the pandemic. Companies were expanding their storage capacities, many new coordination centres have been established,” affirmed Winfried Schmuck, CEO, BITO-Lagertechnik. In addition, some sectors, such as the online business, which has been booming for years anyway, continue to see enormous growth. This is a challenge that the companies concerned must cope with, especially in their organization. As a result, the demand for BITO storage and organization solutions has also increased significantly. “We had the highest order intake since the company was founded, with full capacity utilisation in all areas. Tonnages
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were moved through the production halls that would have been unimaginable a few years ago. A great success that we were only able to achieve together in a well-functioning team,” added Schmuck.
BITO awarded the climate-neutral certificate In addition to the turnover figures, there has also been a positive development in implementing even more sustainable practices. In 2021, BITO-Lagertechnik was certified as a climate-neutral company. Winfried Schmuck “Sustainability has always been a priority for us. We are proud of our quality products which were designed to last. To name just a few aspects: BITO multi-trip bins and containers help to avoid tons of packaging waste. When selecting our raw materials and auxiliaries, we always opt for materials that are not harmful to health and that allow environmentally friendly processing,” asserted Schmuck. “Our production process is based on a commitment to sustainability and a resource-saving, energy-efficient approach in order to minimise the impact on our environment while saving raw materials. We have been operating a plastic bin recycling process in our own facility for many years. Acting with economic, environmental, and social responsibility should not be viewed as an obligation. We see sustainability as a great opportunity
for all of us,’’ he observed.
The BITO Group Management team extended Meanwhile, BITO-Lagertechnik has also undergone some organisational changes in 2021 when the management team has been extended with the induction of two senior officials into key roles. With Dominik Freyland-Mahling (COO) appointed for the production division and Uwe Sponheimer (CSO) appointed for the sales division, CEO Winfried Schmuck CEO will now be assisted by two long-standing executives from within the company to further professionalise the tasks and responsibilities of the three divisions. “The extension of the management team enables us to focus even more closely on customer requirements,” assured Schmuck.
Eco-friendly plastic bins and containers support sustainable storage and handling For many years, the concept of sustainability has been put into practice at BITO-Lagertechnik, supported by innovative technologies and state-of-the art machinery. Sustainable development requires a new mindset that affects the entire supply chain. In 2021, BITOLagertechnik was verified as climate-
BITO-LAGERTECHNIC
neutral by TÜV Rheinland Group Carbon Services.
Energy-efficient manufacturing and ecological alternatives to virgin plastics Users are more aware now than ever of the environmental impact of goods and services. In the field of storage, order picking and transport, as well as in production environments such as Kanban processes, reusable, sturdy, and reliable transport equipment have always been in demand in order to avoid packaging waste. Whereas the focus was on reducing costs in the past, the idea of sustainability is moving into the focus today.
Recycling and upcycling in BITO-owned facility As a manufacturer, it is equally important for BITO-Lagertechnik to offer ecological alternatives to virgin plastic. Apart from
reducing the environmental impact, using regranulated plastics increases energy efficiency in production. Every ton of polypropylene that is not produced saves 1.7 tons of carbon dioxide
Customisable divider systems and inlays with a perfect fit Practical bin inserts, inlays and subdivisions also contribute to saving packaging waste. Therefore, BITO also focusses on developing new solutions in this field. Perfectly fitting divider systems such as lengthwise and crosswise dividers, push-fit accessories and insert boxes make sure that goods do not shift and get damaged during transport. As a result, no additional disposable packaging, filling material or other protective materials are needed. There is now an ecological alternative to disposable packaging which not only provides optimum product protection during storage and transport, but also allows to place
goods in a space-saving way.
Bins made from sunflower compound A clever alternative to conventional polypropylene (PP) is Sunflower Compound (SFC), an environmentally friendly material which has been used since 2018 to manufacture BITO C-item bins. No food must be used to obtain sunflower seed shells, nor are additional cultivation areas required, as the shells are a by-product of sunflower seed production. This new material is a mixture of PP and sunflower seed shell fibres, a food industry waste product. Making a product from sunflower compound produces significantly fewer emissions than making a product from 100% polypropylene, since the compound is processed at lower temperatures than PP. By buying a sunflower compound product, customers will help to reduce their carbon footprint.
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THE LAST WORD-TECHNOLOGY
Three technology initiatives you can implement to transform and boost your supply chains Global supply chains will still be very fragmented for the foreseeable future Technology solutions today are providing and improving intelligent data, product lifecycle management, data centralization, explains Jason Pearce, IFS APJ & MEA Chief Technology Officer.
I
f the last twelve months are anything to go by, it is imperative for companies to show agility and adaptability to face the challenges of today and tomorrow. While these buzzwords are thrown around all too often, what has become evident is that data-driven insights that allow companies to obtain true visibility over their operations are the bedrock to make informed decisions when these obstacles arise. Companies must understand the need for a centralized data infrastructure that allows them to have complete, aligned oversight across their processes to truly embrace the power of intelligent data. With global supply chains impacted due to global conflict and sanctions, the continuing lockdown on China’s east coast, shortages of container and ship rotations, just to name a few, managing data and insights out of primary and secondary supply chains, is now absolutely vital. As companies emerge from a prolonged period of uncertainty, how they perform over the next twelve months will be centered on finding operational efficiencies and their commitment to sustainability initiatives.
Intelligent data
While mining and manufacturing companies may initially feel impeded by sustainability regulations and investor pressure, there are ways for them to both increase their efficiency as well as their compliance through investment in intelligent data. Adoption of data-based technology and data-driven insights will allow these companies to monitor entire asset lines
60 JULY – AUGUST 2022
in real-time, providing the basis for long term organizational objectives that will increase their capabilities to deliver on sustainability targets, while boosting revenue and profitability. While some companies may feel that their current ERP, EAM, and scheduling optimization systems allow them to make informed analytics-based decisions, what is clear is that system fragmentation is the single largest impediment to transformation and innovation for assetintensive industries such as mining and manufacturing.
Global supply chains
There has been signs of slow recovery in global supply chains in late 2021. Global freight expert DHL’s recent Export Barometer Report indicated that nearly two-thirds of local traders are expecting exports to rebound in the new year, and 59% are predicting export revenue will return to pre-pandemic levels by the end of 2022. However, global supply chains will still be very fragmented for the near future. Companies must adopt greater oversight on product lifecycle management, at every point of the supply chain, which has never been more disrupted. Insights drawn from intelligent data can allow companies to reap the benefits overall. IDC predicts that manufacturers that are facing increased disruption will digitally transform and accelerate sustainable innovation to improve supply chain operations from concept to commerce, increasing revenue by 20% in 2025.
Centralized data
Companies must recognize the importance of centralizing data for better visibility across their operations to stay competitive in a recovering marketplace. While many companies believe they have the right foundation, too many incorporate complex and disparate systems that are inefficient in gaining real-time oversight of processes. Given the complexities of solutions available to companies today, processes must be streamlined, and data centralized to optimize production, and reduce manual intervention. Creating digital infrastructure that optimizes efficiencies – such as AI/ML applications, ERP, S&OP, EAM, and MES – can achieve greater transparency, while driving new efficiencies that extend product and asset lifecycles, reduce waste, and provide feedback mechanisms to support the circular economy, which can only benefit overall on the road to recovery. After tumultuous years, 2022 will hopefully the turning point in the road to recovery. For companies to succeed, optimizing performance – through greater visibility over their processes, and harnessing the power of insights driven by intelligent data – will be crucial both today and tomorrow.
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SUPPLY CHAIN SOLUTIONS
Cold chain solutions made simple Keeping a seamless cold chain is what makes your business stand out. With specialized individual cold chain solutions for healthcare and pharmaceutical products, Hellmann is proud to offer you temperature and humidity-controlled transportation and storage.
Lets Do Business! Gordon Barnard Chief Commercial Officer (MESA) Middle East & South Asia Gordon.Barnard@hellmann.com
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