Logistics Middle East - August 2010 by ITP Business Publishing

An ITP Business Publication Licensed by Dubai Media City

DANGEROUS DISPATCH Is a region-wide blacklist warranted for the local hazardous cargo market?

WMS MARKET REPORT NEWS AND ANALYSIS FOR SU SUPPLY UPPPPLY LY CCHAIN HAIN HA IN M MANAGEMENT PROFESSIONALS

Hazem Al Nowais, COO of Waha Land

AUGUST 2010 ISSUE 71

How to transform your supply chain with the latest generation of WMS

PRESCRIBED SUCCESS Hellmann Calipar positions itself as the Middle East’s ultimate provider of healthcare logistics

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CONTENTS

CONTENTS Issue 71 August 2010 For the latest news and stories go to

16 02 Editor’s Letter

14 ArabianSupplyChain.com

30 Hazardous Cargo

With a focus on improved efficiency and ROI, how important is effective communication?

Highlights of the month from the official website of Logistics Middle East magazine.

Is a region-wide blacklist warranted for the Middle East’s hazardous cargo market?

04 Readers Letters

16 Cover Story

34 Agility’s Top 10 Warehouses

Readers of Logistics Middle East provide their views on the industry’s hottest topics.

With the launch of a multi-million dollar facility in Dubai Logistics City, Hellmann Calipar CEO Madhav Kurup explains the company’s game plan for the Middle East.

The logistics giant profiles its top ten storage centres in the Middle East and North Africa.

07 News Update • Cargo operators waiting on Al Maktoum • DHL opens first logistics facility in Hamriyah • Aramex ships lions from Jordan to Africa • TNT expands road network in Saudi Arabia • Momentum opens new warehouses at SICD • Logistics scholarships announced at UOWD • SNS designs Halwani warehouse in Jeddah • GWC to open Logistics Village Qatar in 2011 • IDS launches supply chain consultancy • KSA set for $100bn logistics transformation

40 Ask the Expert

20 Special Report

Fars Al Mazrooei examines the benefits from efficient industry flooring in warehouse centres.

An overview of the warehouse management systems (WMS) market in the Middle East, with profiles of the region’s leading suppliers.

42 Facts and Figures

26 Case Study Global Shipping & Logistics (GSL) details its success story with the Manhattan Associates warehouse management system in Dubai.

Transportation statistics from a variety of regional and international sources.

56 Face To Face Interview Frank-Uwe Ungerer discusses his strategy as the new country manager of DHL in the UAE.

www.arabiansupplychain.com | August 2010

EDITOR’S LETTER

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Managing Director Karam Awad Deputy Managing Director Matthew Southwell Editorial Director David Ingham Commercial Director Fareed Dubery EDITORIAL Senior Group Editor Robeel Haq Tel: +971 4 210 8597 email: robeel.haq@itp.com Editor Casey McFann Tel: +971 4 210 8598 email: casey.mcfann@itp.com Contributors Nadia Khan, Ed Attwood ADVERTISING Commercial Director Fareed Dubery Tel: +971 4 210 8381 email: fareed.dubery@itp.com Sales Manager Jayant Dey Tel: +971 4 210 8246 email: jayant.dey@itp.com STUDIO Group Art Editor Daniel Prescott Designer Lucy McMurray PHOTOGRAPHY Director of Photography Sevag Davidian Senior Photographers Efraim Evidor, Jovana Obradovic Staff Photographers Isidora Bojovic, George Dipin, Murrindie Frew, Lyubov Galushko, Shruti Jagdesh, Mosh Lafuente, Ruel Pableo, Rajesh Raghav PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Deputy Production Manager Matthew Grant Managing Picture Editor Patrick Littlejohn Image Editor Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami CIRCULATION Head of Circulation & Database Gaurav Gulati

s the end of summer is fast approaching, this seasonal industry-wide slowdown will soon be coming to an end. While this is good news for those with a keen eye on quarterly reports, it also presents an opportunity for supply chain managers to take a closer look at their operational efficiency. With that in mind, this month we’ll be examining Warehouse Management Systems (WMS) and the streamline effect of organisational communication that they so often provide. In a business where time is money, this technology proves too valuable to overlook. Our cover story this month profiles a company that has placed its bets on the region’s emerging healthcare market. As prescription medicines and pharmaceutical supplies are in increasing demand, such products require a specialised supply chain. Hellmann Calipar’s CEO assures me that he is prepared to serve this booming sector, and the company’s new warehouse in Dubai Logistics City is testament to that fact.

We also shed some light on the world of hazardous cargo in this issue. While it’s not as glorious (or profitable) as some of the other sectors, there is still a market for the storage and transport of precarious goods. We can only hope that companies are keeping up with the stringent standards that are currently in place. Some within the industry feel that undocumented, often dangerous shortcuts are happening in order to turn quick profits. Is a regional blacklist the most appropriate solution? And although its reputation has taken a bruising in recent months, Agility wants our readers to know that the company is not going anywhere. With the expectation of a rebound from recent turmoil, we feature Agility’s Top 10 warehouses in the Middle East. Enjoy the issue and we look forward to welcoming you again next month. If you have any comments to make on this month’s issue, please email Casey McFann, editor of Logistics Middle East magazine (casey.mcfann@itp.com)

To subscribe please visit www.itp.com/subscriptions 2 AUGUST 2010 | www.arabiansupplychain.com

MARKETING Head of Marketing Daniel Fewtrell Marketing Manager Annie Chinoyl ITP DIGITAL Director Peter Conmy ITP GROUP Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 210 8000 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Masar Printing Press Controlled distribution by Blue Truck Subscribe online at www.itp.com /subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

Audited by: BPA Worldwide Average Qualified Circulation 6,379 (July - Dec 2009)

READERS LETTERS

An ITP Business Publication Licensed by Dubai Media City

CLIMATE CONTROL How a cooler warehouse can translate to increased productivity from workers

PLAYING WITH FIRE JULY 2010 ISSUE 70

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS

Can the latest generation of ﬁre protection systems safeguard warehouses?

Al-Futtaim and Toyota are supreme

Kudos to the Waha Capital team

Dear Editor, I was interested to read your case study on the Al-Futtaim spare parts centre in Dubai. Although I have never visited the facility, it’s not surprising to hear about the professionalism and efficiency of this operation. n. Speaking as a customer, and not ott a logistics manager, its re-assuring asssuri assurin su urin i to happens to myy know that if know i anything an g hap ha Toyota FJ7, the parts will be handled handle and andl an d that through hrough hrough ou u h the h warehou warehouse ehouse ho e th h wass featured in your magazine. It woul would wou o ld d bee interesti interesting in er interes g to see how thee fa faci ffacilities i of other manufacturers f tture s compare in the hee Middle id dd ddle dlllee East. dle E Goher Iqball

Dear Editor, I’ve had the opportunity to conduct business with Waha Capital and its no surprise that the company has made your cover. It’s great to deal with such a professional team and I’m glad to see their Al Markaz project is starting to receive a great deal of attention. Abu Dhabi has emerged as a very important market in the Middle East and this development should play an important role in the logistics industry’s growth there. I’m confident the project, like the company, will prove to be a success. Martin Benson

CAPITAL GAINS

Hazem Al Nowais, COO of Waha Land

Finding a cool solution

Waha Land tackles the shortage of warehousing space in Abu Dhabi

GULF WAREHOUSING COMPANY І AL-FUTTAIM LOGISTICS І GAC І MOMENTUM LOGISTICS

Dear Editor, Your feature on climate control and worker productivity was, for lack of a better term, a breath of fresh air. As a warehouse manager who has been in Dubai for 15 years, I can firmly attest to this. Although the controlled climate is implemented to maintain the integrity of stored goods, it will positively affect worker productivity too. We’ve all heard nightmare stories where people are forced to work in facilities where the temperature is unbearable. In these conditions, a cooler environment will always translate into greater productivity. Sachin Menon

The impact of globalisation Dear Editor, I’ve been reading Logistics Middle East for a number of years now and it’s a great publication. However, I think it would be interesting to include a little more about the international logistics industry in your magazine. After all, we live in a global world now and it seems Logistics Middle East only focuses on this region, and more specifically the Dubai market. I would like to see more stories on Middle East relations with places like South America, China and the Indian subcontinent. I think it would be very interesting to know how business is conducted here versus there. What do the other readers think about my suggestion? Ramon Arevalo

WAREHOUSE FIRE PREVENTION

Playing with

The dangers of messing with fire Dear Editor, I thought the article on fire protection services in the last issue of Logistics Middle East was spot on. Given all the outbreaks that have recently occurred in the UAE, it is no coincidence that companies without protection are the ones that burn to the ground. What is sad is that the workers are the ones who are injured or killed when something goes wrong. It is never the ‘decision makers’ whose blatant disregard so often costs not just dollars, but lives. The laws should be stricter in their application of passive fire resistance. With the technologies that exist today there is no room for excuses. Otherwise we will continue to see more of the same tragedies. Tali Sarma

Can the most up-to -date fire protection systems really guard warehouse opera tors from the threa t of fire?

o the untrained eye, the latest well-ver sed in fire protection technology as wareho in protecting large buildings such It is not only active is something straight uses from fire. “Each fire protection systems company has which out of to look at a science fiction the risks presented should feature highly novel. in its warehouse on the action list at the design stage. the latest highly-s Take to select the most appropriate Passive fire protecti system,” advises ensitive, Nixon. laser-based VESDA solutions can help on “There is not one detector for exampl minimise the damage fix-it-all system for This aspirating smoke e. everything.” As a warehouse fire, warehouses, particul detection system particularly in places of arly in the industri can Middle East, intelligently detect like a warehouse fire at grow larger in size al zones where many the and very earliest stage, triggerin volume, located buildings are in close vicinity of each g four programmable many of the previously used fire detectio alarms. Each alarm other. systems n Passive fire protecti are now rendered has largely ineffective. on means taking the warehouse operato a threshold set by “Some of the structural conside new advances in r enabling a measur rations to hand detection designin staged response ed technologies when to any threat – g a fire-proof wareho from a bigger facilitiehave been really targeted to the use. This can be suspicious investig key to reducing the ation s with higher and odds of a fire occurrin larger open and involving the activati to the highest-level areas,” Nixon g to minimise damage agrees. “As the height on of sprinklers through containment. and facilities increase emergency services of these “There is definite . Unlike other many , detection become of its difficult and counterparts, this s more on the importa ly not enough attention placed device is planted at normal point type nce of passive fire detection will argues ground struggle level, and not the protecti on,” to detect.” ceiling – very handy Mark Lavender, sales for a warehouse whose and marketing Of course, it inevitab director ceilings are so high for Promat Fire Protect ly helps if fire protecti that needs are conside by the time smoke ion. “A lot of reaches there, the red right at the beginni on attention is focused on active fire has the wareho spread out of control systems like ng of alarms and use design process . fire extinguishers but . Sadly however, an integrated VESDA is just one exampl it is much more often approach with both an afterthought once e of the many new fire detection and the working togethe active and passive systems warehouse has been protection technol built and the mechan r to protect an asset ogies and electric available to wareho ical more success would be al work has been done. use operators despera ful. ” “It to protect their wares is always te easier to put systems Global company from damage. With in during the constru Promat specialises the phase rather increase in wareho ction passive in use fires being a continu than do fire protection solution cause of consternation ed emphasises Nixon. the work retrospectively,” structur s for the e of buildings “Wareh for the Middle East, like warehouses, could these technol to look at weight loading ouse operators need including fire ogically advanced compartments and , water demands and systems those aspects provide the solution barriers, sprays and paints, which will potentia to the problem? firestopping, fire lly affect the partitio Craig Nixon, busines structur rated e itself ns during the design s development manage stage. When of structurand ceilings as well as the protection at Tyco Fire and Security r looking at racking al steelwork. As wareho UAE, believes so. As systems within the leading fire protecti storage contain uses usually on and detection compana facility for example, you need to large undivided areas, take your fire in the region, and the use of such y systems into conside agent for VESDA, ration during the design methods, particularly fire walls or Tyco is process barriers, is extremely effective of the warehouse.” in avoiding the spread fire, heat and smoke. of 30 JULY 2010 | www.arabiansupplychain.c om

WAREHOUSE FIRE PREVENTION Furthermore, the real benefit of passive fire protection lies in facility. “Some compan maintai ies simply don’t want of building in the event ning the structure spend money to Whilst Dias believes on fire of fire and prevent that automatic ing minimum required protection and will do the fire suppres collapse. “Maintaining compartmentation sion systems with .” he says. can stop the spreading standby fire Despite their concern protection stations of a fire from wareho are imperative, other s however, both use companies to warehouse, as we fire safety measures can remain optimistic have typically witness be equally importa that the Middle in heavy built-up ed East is slowly without relying on nt locations like industri cottoning on to the the latest technol benefits of for implem zones,” says Lavend al fire protection ogy er, pointing to the systems in line with entation. In many case of neighbo its global exampl Dubai Industrial City instances, for urs. Recent figures e, which fell victim to a fire can be discovered by a indicate that one global market of the biggest fires worker to hit the region two for active fire protecti the prior to the activation of years currently worth a ago. Starting as an fire on detection is system, and this explosion in a firework around US$5 billion warehouse, the fire annually early warning can be invaluable in providing s and set to grow by around 5% in the spiralled to the other building next couple and out of control and occupants to the local and of years. But is the engulfed public emergency technology services more than 80 neighbo . enough to convinc “There is e the region’s prevent Having all staff trained on fire warehouses in its wake. uring ion procedures and warehouse operato definitely not rs? use of basic fire With scenarios fighting equipment like this, As operator of is relatively cost-fre enough attention it is not surprisi several essentia e and ng that fire l as part of a comple warehouses in the region, fire te and balanced protection speciali placed on the protection plan. Bernard sts like Dias, operations Lavender and Nixon importance of Guidelines from bodies manager for RHS often feel such as the USLogistics, headqu frustrated with compan artered National believes that most passive fire ies in the Fire region who compla forward Associa in about the tion (NFPA) also advocat Protection looking companies protec tion do ” cost of fire protecti consider approac e a balanced on systems. fire protection as an h to fire protection investment solely which does not “Afterall, how expensi rely upon technology. and not a cost. “The ve is the total loss of Kathleen Almand, your having the cost of not executiv business?” Lavend right type of investm er points out. “The e director at the NFPA’s cost of protection ent in fire Researc passive fire protecti Fire Protection systems could be h Foundation, places on systems are minima disastrous for of the involvement in the overall constru l the business,” emergency respons he ction cost and are e services at the only a highly sophisti admits. The company uses of the a minor expenses top in comparison.“ Nixon list. “Engaging the cated laser system local emergency also fire detectio agrees that whilst for both respons some warehouse operato n and e team early in the design process of in the region clearly rs warehouses. Additioprevention to protect its the fire do take fire protecti protection system nally, an in-rack sprinkle on very system and will ensure that it seriously, others can r is designed with an overall sprinkle be reluctant to invest their capabilities r system in the the shipping marsha capital required to in mind, she ” says. get the best system lling zone are on hand, Regular training of for their they be teams in the should operatio deemed necessary. n of the fire protecti a fire event is also essentia on systems during l.

Recent ﬁgures indicate

that the global market

for active ﬁre protection

is currently worth

around US$5 billion

annually and set to

grow by around 5%

in the next couple

www.arabiansupplychain.c om

of years

| JULY 2010 31

Please address your letters to: Logistics tics Middle East, PO Box 500024, Dubai, UAE or email: logistics@itp.com g p (Please provide your full name and address, stating clearly if you do not wish them to appear in print. All letters will be edited for clarity of shortened to fit the allotted space).

4 AUGUST 2010 | www.arabianbusiness.com/transportation

NEWS UPDATE

Cargo operators play waiting game in shift to Al Maktoum

The multi-billion dollar airport has opened with 15 carriers including Rus Aviation and Coyne Airways

fter much-speculation about the number of cargo operators that will initially have a presence at Al Maktoum International Airport, the multi-billion dollar project has opened with a total of 15 carriers, according to a statement from Dubai Airports. Amongst the tenants are Coyne Airways, which flies scheduled A300 and Il-76 flights from Dubai to various locations in Iraq and Afghanistan, and Rus Aviation, which will move over from its current base in Sharjah. Other operators that have signed agreements include the likes of Aban Air, Aerospace Consortium, Aviation Service Management, Rial Aviation, Sonic Jet and United Aviation Services. Officials are adopting a two-pronged strategy to convince airlines to register at Al Maktoum International, offering a string of business incentives and banning certain types of older cargo aircraft from the emirate’s main Dubai International Airport. However, a number of the market’s leading players appear to have adopted a ‘wait and see’ approach before shifting over their operations to the region’s newest aerotropolis. Cargolux senior vice president of sales and marketing Robert van der Weg said that the airline – one of the world’s biggest allcargo carriers – had no plans to relocate its operations from Dubai International Airport “at this time”. Atlas Air, which has a fleet of 28 B747 freighters and an office in the Dubai Airport Free Zone, said that any flying and related ground operations activity at the new airport would be dictated entirely by demand from its clients. “We certainly have the ability and flexibility to fly into a great number of airports around the world, including Al Maktoum International, on either a recurring or a periodic basis – all depending on our customers’ wants and needs,” said Bonnie Rodney, Atlas Air’s marketing and communications director. But a spokesperson from FedEx, which owns the world’s largest cargo airfleet, said it had no plans to move from its regional hub at Dubai International Airport’s Terminal 2.

Dutch express giant TNT indicated that it was “excited” by developments at the site, and that its future operational position “had to include” the new airport. “We are preparing ourselves for the coming years in close cooperation with the authorities and will be able to discuss our growth strategies further in the coming months,” said TNT UAE sales and marketing director Mark Woodcock. A senior executive from DHL’s local logistics partnership said that it was planning to utilise the new airport and its logistics facilities, although not immediately. “Danzas is looking forward to set up offices and warehouse in the cargo village as well as Dubai Logistics City in the next two years,” stated DHL Global Forwarding’s emerging markets CEO, Enver Moretti. Dubai World Central’s vice president of cargo and logistics Andrew Walsh told Logistics Middle East that the airport was indeed working closely with the express firms to ensure that they would have all of the required facilities. “At the moment, that segment of the industry is heavily integrated with the passenger industry, as cargo operators move a lot of material via belly capacity – so they are likely to stay at the current airport for the time being. However we are talking to them about the facilities and we will need to develop those facilities out of Dubai World Central,” Walsh said. Walsh also mentioned that he was confident in that the new airport would meet its first-year target, which is to fill the capacity of the cargo terminal by October 2011. The facility has been designed to handle 250,000 tonnes a year. “To translate that, that’s currently the volume that we see all the main-deck freighters taking to and from Dubai International Airport today,” he added.

PHASE ONE: AL MAKTOUM INTERNATIONAL AIRPORT Phase 1 of Al Maktoum International Airport features an A380 capable runway, 64 remote stands, a cargo terminal with annual capacity for 250,000 tonnes of cargo, and a passenger terminal building designed to accommodate five million passengers per year.

www.arabiansupplychain.com | AUGUST 2010

NEWS UPDATE

NEWS IN BRIEF

DHL opens Sharjah free zone facility Express facility will provide bonded and duty free facilities for import-export shipments across the GCC

Aramex has completed the recent transportation of two lions from Jordan to their natural habitat at Lionsrock Big Cat Sanctuary in South Africa. The precious cargo, which included a young lioness, a male lion cub and three spotted hyenas, was shipped on behalf of the Princess Alia Foundation and marks the second time this year the logistics firm has transported lions from the Jordanian capital to South Africa. “Our gratitude goes to Aramex, who helped to arrange the transfer and sponsored the flight,” stated the foundation. TNT has expanded its Middle East road network with the introduction of 30 new trailers, which will assist the company to capitalise on Saudi Arabia’s strong growth potential. “The Kingdom’s economic growth has given businesses like TNT the confidence to implement expansion initiatives,” said Nael Attiyat, sales and marketing director of TNT SAB. “Strengthening our fleet of delivery trailers will also complement the growing preference of Middle East customers that have opted to use road networks over traditional air and sea freight services.” Agility boosted its social corporate responsibility (CSR) programme by hosting a fundraising event for the Children’s Cancer Centre Lebanon (CCCL) last month. The logistics company hosted an outdoor screening of the final World Cup 2010 match in Beirut and raised over $13,500. The event was attended by over 300 people. “Giving back to local communities is core to Agility’s culture. With our global footprint as a company, we are in a privileged position to help,” explained Raymond Rizk, chief executive officer of Agility Lebanon.

8 AUGUST 2010 | www.arabiansupplychain.com

DHL has become the first express courier company to establish an office at the Hamriya Free Zone development in Sharjah

DHL has increased its presence in the United Arab Emirates with the opening of a logistics centre in Hamriya Free Zone (HFZ). The facility, which will provide bonded or duty free facilities for the import or export of shipments across the GCC, makes DHL the first express EXPRESS LOGISTICS

courier company to establish an office in the Sharjah free zone. “The opening of this new facility will enable our customers to benefit from duty free import and export shipments, and will provide us with the competitive advantage of being the only courier company in the Hamriyah Free Zone to offer

this service,” commented Derek Tully, operations manager of DHL Express in the UAE. “With over 23 facilities and service points across the UAE, this facility is also a testament to DHL’s commitment to offer customers in the UAE the highest standards of service, convenience and quality.”

Momentum expands SICD warehouse units Momentum Logistics has completed its third phase of new warehousing at the Sharjah Inland Container Depot (SICD), with 35 units now available at the site. The latest phase included the addition of nine 800m2 units and three 600m2 units. According to Matthew Derrick, general manager of Momentum Logistics, the initial vision behind SICD was to develop the site as a ‘mini bridge’ linking bonded movements from Khorfakkan Container Terminal (KCT) to the heart of the United Arab Emirates, while providing a logistics and distribution centre in its own right. SICD now acts as the headquarters for Momentum Logistics, complete with new 3PL

workshops and offices at the site, together with other specialist activities such as container cleaning and repair. “We have steadily built up facilities, particularly warehousing, at the SICD in response to customer demand, and I’m delighted that we can now offer a further 12 units in

this ideally located position – perfect for storage plus cargo distribution on adjacent uncrowded roads to all parts of the UAE,” stated Derrick. “The new warehouses provide safe, secure, insulated storage at the heart of one of the UAE’s most important logistics centres,” he continued.

Momentum Logistics has now completed 35 units at Sharjah Inland Container Depot

NEWS UDPATE

UOWD launches logistics scholarship Logistics professionals are being invited to apply for a range of ‘industry partner’ scholarships launched by the University of Wollongong Dubai (UOWD). “We currently have a number of scholarship students under a partnership with Dubai Municipality, focussing on our Master of Quality Management degree,” stated Rob Whelan, president of UOWD. “The university has also established partnerships with The Mohamed bin Rashid al Maktoum Foundation, the Road and Transport Authority (RTA) and the Dubai Statistics Centre,” he added. With no particular quota on the number of scholarships offered, Whelan hopes to attract professionals within the logistics and supply chain sector, as well as qualified students with a first

NEWS IN BRIEF

EDUCATION

Research shows that 60% of logistics professionals do not have SCM qualifications

degree, eager to get into this rapidly growing industry. “A recent survey indicated that over 60% of people working in this industry lack a specialised qualification in supply chain management,” said Whelan. “This is an opportunity to develop higher level skills in the logistics industry and our experience indicates that

graduates from UOWD Masters programmes have enhanced work opportunities and promotion prospects. This is an exciting industry in the UAE and our logistics programme is a strong, relevant and unique qualification that will open up many opportunities for graduates, as well as benefit the logistics industry overall.”

IDS Scheer has launched a supply chain consultancy package in the Middle East to advise companies on the best methods of reacting to market changes and increasing their liquidity. The solution is based on a four-step method, with customers being offered proposals to improve their supply chain within three weeks. “With our method, we establish a close connection between IT and supply chain management,” explained Matthias Schubert, a consultant with IDS Scheer. “Based on that, we derive where the customer needs to take action and help them to realise improvements in their operations.”

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NEWS UPDATE

NEWS IN BRIEF

SNS wins Halwani warehouse contract Company will review the procedures at Saudi Arabia facility to increase client’s supply chain efficiencies Halwani Bros has selected SNS to design its forthcoming warehouse facility in the Saudi Arabian city of Jeddah. The design process will provide Halwani Bros with a detailed warehouse AutoCAD layout, which includes the design of racking systems, marshalling and staging areas, number and positions of inbound/outbound docks, positions of auxiliary areas and the orientation of the storage aisles. In addition, SNS will complete a full review of operational procedures at the warehouse in an effort to minimise overall costs, streamline throughput and goods flow and ensure compliance with warehousing best practices. “Being selected by a company the size of Halwani Bros in WAREHOUSE

Gulf Warehousing Company has confirmed that operations at the forthcoming Logistics Village Qatar (LVQ) development will commence in January 2011. The first phase of the supply chain company’s project will include 70,000m2 of warehousing space in total. “The entire team is very excited about this project and convinced that it will change the perception of logistics infrastructure in Qatar,” stated Ranjeev Menon, CEO of Gulf Warehousing Company. “Construction has continued to progress and Logistics Village Qatar is set to go-live next year.” Epoc Messe Frankfurt has announced that its latest Material Handling Middle East event will return to Dubai International Convention and Exhibition Centre from 25th to 27th September 2011. “We are excited about embracing new trends in the supply chain industry and working to ensure Materials Handling Middle East 2011 acts as the ideal platform for key players to come together,” said Ahmed Pauwels, chief executive officer of Epoc Messe Frankfurt. Transworld Logistics has been awarded a two-year contract with ENOC International Refining & Marketing and ENOC Process Company. Under the agreement, the Dubai-based company will provide a range of freight forwarding and clearing services from its central warehouse in Jebel Ali Free Zone. “We are leveraging our strengths and expertise in managing business for oil companies in the United Arab Emirates and are delighted to add ENOC to our prestigious list of customers,” commented Warren Jacob, CEO of Transworld Logistics.

Mario Ghosn, general manager of SNS (right), celebrates his latest contract in KSA

Saudi Arabia proves once again the value of SNS in the local market,” stated Mario Ghosn, general manager of SNS.

Saudi eyes $100bn logistics transformation Saudi Arabia is poised to invest US$100 billion over the next 10 years, transforming the Kingdom into a leading international transport and logistics hub, according to recent announcement by the Saudi Arabian General Investment Authority (SAGIA). The strategic location and infrastructure development LOGISTICS

will position the Kingdom as one of the world’s leading logistics hubs by 2020, stated the government division, which has identified 19 priority opportunities for transportation projects in Saudi Arabia. SAGIA went on to say that 15 of the projects would be based in economic cities and overall, a $100 billion investment was anticipated over 10 years.

SAGIA has identified key investment opportunities in Saudi transportation projects

10 AUGUST 2010 | www.arabiansupplychain.com

“We will put forth all our efforts to ensure that our results will exceed their expectations of the project,” he added.

“Of the projects, five would be ports, three would be aviationrelated, three would be railbased, while another three would be road-related,” stated a SAGIA report. It goes on to detail five logistics centres planned for the Kingdom, adding that Jeddah Islamic Port alone could boost capacity by 30-50%. Regarding aviation, SAGIA went on to say that “air operators would be sought to drive expansions to Saudi Arabia’s air transport infrastructure”, with significant upgrades already underway at Jeddah Airport and a new cargo village in the planning stages. As such, Saudi Arabian domestic cargo demand is expected to grow by a 4-5% compound annual rate through to 2020, while international flows are expected to grow at around 5% and 7-8% for air and sea cargo respectively, the report added.

NEWS UPDATE

Dubai celebrates launch of cargo operations at DWC

ubai marked its transition into a two-airport city last month, with the much-awaited launch of cargo operations at Al Maktoum International. A number of cargo carriers have registered to operate in the airport – which is part of the multi-billion dollar Dubai World Central development – including Aban Air, ACI, Aerospace Consortium, Aviation Service Management, Coyne Airways, EuroAsian Services, Rus Aviation, Sonic Jet, SunGlobal, Skyline and United Aviation Services. To celebrate the launch, Sheikh Mohammed bin Rashid alMaktoum, prime minister of the United Arab Emirates and the ruler of Dubai, and his son Sheikh Hamdan Maktoum, deputy ruler of Dubai, were provided a royal tour last month, alongside HH Sheikh Ahmed Bin Saeed Al Maktoum, president of Dubai Civil Aviation Authority and chairman of Dubai Airports. “Phase 1 is the first step in a long infrastructure development project that over time will see our new airport transformed into the world’s largest global gateway and a multi-modal logistics hub, while playing an increasingly integral role in the ongoing economic and social development of Dubai,” said Sheikh Ahmed. “It 12 AUGUST 2010 | www.arabiansupplychain.com

is a proud day for Dubai and an auspicious occasion for the future of global aviation.” The initial phase of the airport will feature an A380 capable runway, 64 remote stands, a cargo terminal with annual capacity for 250,000 tonnes of freight and a passenger terminal building designed to accommodate five million passengers per year. “Although it’s a long-term project, the need for a second airport in the near to midterm is clear,” stated Paul Griffiths, CEO of Dubai Airports. “Dubai International currently has capacity for 2.5 million tonnes of cargo, while volumes are expected increase to 3 million tonnes by 2015.” Griffiths added that the new airport’s facilities and connectivity to the Jebel Ali Port and Jebel Ali Free Zone is being acknowledged by adopting airlines. “We are delighted with the response from cargo operators who are seizing the opportunity. DWC opened with 15 cargo airlines signed up and we expect that number to increase steadily over the next few months.” Once completed, Al Maktoum International will be the largest airport in the world, with five runways, four terminal buildings and annual facilitation for a total of 160 million passengers and 12 million tonnes of cargo.

NEWS UPDATE

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Corpses found months after warehouse fire

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The remains of a man missing since the National Paints headquarters fire in Sharjah earlier this year has been found in the gutted remains of the factory and warehouse facility. The body of electrician Khurshid Ahmed, who worked with the company for three years, was discovered near a chemical tank where the blaze is believed to have started, according to local media reports. The Indian man was reported missing by his 38-year-old brother Tabreer Ahmed after the large-scale fire. National Paints, which has refused to comment on the situation, initially believed the man had absconded. A second body, also found in the building last month, has not been identified. Both of the victims were found by company employees who were given access to the facility to start clean-up operations. The inferno, described by authorities as the biggest factory fire in the emirate, took firefighters from all over the country more than seven hours to control. It started again two days later, and for a third time five days later. One National Paints employee said chemicals used in making paints most likely disguised the smell of the decomposing bodies, thereby preventing firefighters from locating them.

from burning warehouse

1 Emirates staff evacuated 2 Hundreds of DHL employees prepare to strike in Bahrain

3 American woman locked

in storage unit for 63 days

4 Angry horses cause freight nightmare for Saudi airline

Logistics executive 5 CEVA joins Damco Middle East

EDITORâ&#x20AC;&#x2122;S CHOICES SPECIAL REPORT

PHOTO SPECIAL

TOP 10: Emerging Logistics Markets 2010 Transport Intelligence ranks the attractiveness of countries from the developing world in terms of their logistics market potential.

Etihad highlights from Farnborough Airshow As launch customer of the Airbus A330-200 freighter, Etihad CEO James Hogan attended a special handover at last monthâ&#x20AC;&#x2122;s event.

SPOT POLL

What are your long-term predictions for Al Maktoum International Airport in Dubai?

62.5

The airport will probably be a % success over time

14 AUGUST 2010 | www.arabiansupplychain.com

16.7

The project is likely to exceed expectations

20.8

The airport will struggle to achieve its long-term targets

The Best in Service, Quality and EfďŹ ciency

Core Services: s Freight Management and Customs Brokerage s Automotive Logistics s Warehouse and Inventory Management s Domestic and International Transportation s Project Cargo and Heavy Lift s International Moving

P.O. Box 61450, Dubai, United Arab Emirates. Tel: +971 4 881 8288, Fax: +971 4 881 9157, e-mail: contact@alfuttaim.ae

www.al-futtaim.ae

COVER STORY

Madhav Kurup, chief executive officer of Hellmann Calipar Healthcare Logistics

16 AUGUST 2010 | www.arabiansupplychain.com

COVER STORY

PRESCRIBED

SUCCESS Madhav Kurup, chief executive officer at Hellmann Calipar Healthcare Logistics, discusses the challenges of keeping cool in the Middle East’s warming healthcare supply chain.

ith increasing demand for development. A joint venture between pharmaceuticals in the Hellmann Worldwide Logistics of Germany Middle East, it’s difficult and Calipar Integrated Logistics of India, to ignore the growing the 100,000 square foot facility is being importance of storage marketed as the latest pharmaceutical hub and transportation efficiencies for the in the MENA region, and certainly one of healthcare sector. After all, the sensitive the most advanced. nature of this cargo would The US$8 million (Dh29 million) uld make exposure to the region’s centre is strictly dedicated to the egion’s unforgiving climate healthcare se sector, maintaining an expensive mistake. capacity ffor up to 9000 To address this challenge,, pallets, as a well as cages drug manufacturers and for expir expired or damaged The a distributors have started goods. K Kurup hopes to m drugount that to look for logistics have of the warehouse 60% is forspendingGCC stocked w companies with specialistt within the year, e reach cast to expertise in the handling having already signed ng by 20 19 of pharmaceutical goods, a commitments commitment from a European situation that Madhav Kurup, manufacturer and a handful of urup, chief executive officer of Hellmann regional companies companies. “We have a huge Calipar Healthcare Logistics cs (HCHL) has interest in more clients,” he explains. “We actually welcomed with open are currently in talks wit with others and will n arms. “We need to create specialisation alisation within finalise contracts with four fo to five clients industries,” he states with conviction. “Th “ is in the next few weeks.”” product cannot afford to sit on an airport Valued at more than US$12 billion, the tarmac for three hours, it simply can not Middle East’s pharmaceutical market happen. And we realise that healthcare is has steadily increased over the years, a fast growing sector, and thus it needs to and is expected to grow at a healthy clip be supported with a proper supply chain.” of 10-15% annually. With more than 450 As a fourth-generation family business, pharmaceutical manufacturers in the Hellmann Logistics was launched in region, Kurup is confident that HCHL will 1871, with a focus on transporting goods be well positioned to capture a fair share throughout Germany. The veteran company of the market. has since grown into a multinational With the exception of Egypt, all Middle logistics provider, seeking to fi ll niche Eastern countries are high importers of markets such as healthcare, aviation branded drugs and pharmaceuticals. With parts, automotives, high-tech goods, and Saudi Arabia responsible for over a 49% biotechnology. market share, it is the largest regional The Middle East is expected to play a market by volume, while the United Arab fundamental role in its future growth, Emirates comprises 35% of total GCC especially with the opening of a flagship drug market spending. “The profi le in this warehouse facility at Dubai Logistics City region has been very low to date. last month – one of the first to commence Prominence has risen now though, and we operations at the multi-billion dollar have had to meet demands,” says Kurup

$9.6 b illion

“We realise healthcare is a fast growing sector and needs to be supported by a proper supply chain”

www.arabiansupplychain.com | AUGUST 2010

COVER STORY

Market Information Healthcare reforms in the region have increased the potential for higher per-capita spending on medicines, while government budgets allocated to pharmaceuticals have also increased. - Business Monitor International

According to Business Monitor International (BMI), the prescription sector is indeed on an upward swing, boosted by a growing population and changing disease profi les. For instance, the UAE is tackling an obesity and diabetes epidemic, which will require the long-term treatment of related health conditions such as increased blood pressure and heart disease. BMI’s report goes on to state that the health challenges plaguing the UAE have come to reflect the wider GCC community; together, the six states have the highest rates of obesity in the world and, within 10 years, their populations are expected to increase by a third to reach 53 million. Th is bodes well for HCHL, as the company has strategically positioned itself, as well as the Dubai Logistics City facility, for the influx in this consumerdriven demand. Consider that one major benefit of HCHL’s new hub will be the

18 AUGUST 2010 | www.arabiansupplychain.com

proximity within Dubai World Central, information is presented in real-time to and Al Maktoum International Airport, HCHL’s clients, and should there be any which allows it to rapidly redistribute spikes in temperature, it will be seen goods within minutes to markets around immediately. For manufacturers and the region and world. “We are at the distributors trying to take back some doorstep to the new airport on one side control over their product, additional and Jebel Ali sea port on the other. Th is oversight has proved a major selling point. will prove invaluable as we move forward, “You have to gain customers’ confidence as our clients will have near immediate to gain credibility. Th is industry will gain access to markets,” says Kurup. more respectability as it creates greater While the future looks bright for this solutions,” argues Kurup. market-specific sector, Kurup “Th urup is also There was once a ttime in Dubai where quick to acknowledge somee of the demanded assets. customers d challenges facing operatorss in ‘How big is the facility,’ they the Middle East. “Although ask. They thought an gh would ask this is the hottest globall established brand became so establishe region in temperature, by being rigid, yet credible. It Pro of thejected valu there are inconsistent quite effectively reinforced pharmworldwide standards and a lack of reputation to a company’s compa mark aceutica e regional quality hubs. It’s Th is however, its clients. clien e l no wonder the providers is no lon longer the case. Our rs a dect within a de have been slow to act. However, flexibility in offering solutions ver, we feel that this has presented has presented us with far more ented an opportunity that we are opportunity to satisfy our clients’ more than capable of fi lling.” demands. We pride ourselves in being o In an attempt to bring more based in solutions, pro processes, IT systems, transparency to o supply chains, and skilled people,” he adds. a Kurup describes “Some other b the th role l off “S th companies out there are what he likes to call “validated weighed down and severely limited in freight management” in what they can offer. They are asset heavy, guaranteeing uniformity and largely inflexible. If approached by a within storage and customer with a specific request, they can’t distribution. In utilising always guarantee that the service can be the latest technologies, provided. We’re different in that we don’t validated freight ask the customer to come and fit in a box. management is the act Rather, we create tailor made solutions to of recording temperature meet the demands of each customer.” across the entire supply While Kurup and his team are actively chain. The seeking clients to fi ll the company’s new warehouse, the executive remains confident about the the facility, as well as the HCHL brand itself. So in terms of space, costs, and efficiency, are they looking for smaller clients or larger more wholesale-minded clientele? “In terms of capacity, we are flexible. One customer can even take up the entire warehouse,” says Kurup. “Th is facility will be successful if we listen and react to our customers’ requests and expectations.” Within this niche market, such as attitude does indeed sound like a prescription for future success.

$1 tri llion

WMS MARKET OVERVIEW

20 AUGUST 2010 | www.arabiansupplychain.com

WMS MARKET OVERVIEW

When seeking to lower costs and streamline operations, the implementation of a WMS solution can pay dividends in the long run, explains Integralâ&#x20AC;&#x2122;s Margareta AbuRas. s the supply chain remains as dynamic as the industries in which it serves, it remains vitally important that service providers are continually progressing forward with their technology. â&#x20AC;&#x153;Companies cannot afford to remain idle,â&#x20AC;? says Margareta AbuRas, managing director of the supply chain consultancy fi rm Integral. â&#x20AC;&#x153;They will soon find that the competition has left them behind. Th is includes WMS technologies as well as techniques, including the adoption of voice picking, pick by light, RFID and automation. In addition to technological advancements, providers must incessantly keep pace with numerous changes in commercial requirements, customs and other authoritiesâ&#x20AC;&#x2122; rules and regulations.â&#x20AC;? According to AbuRas, the economic and financial challenges to global commerce over the past two years have heightened awareness as to the necessity of reviewing oneâ&#x20AC;&#x2122;s supply chain strategies. â&#x20AC;&#x153;Quite simply, most existing processes have largely become obsolete, as they were designed for a far more stable business environment. Re-engineering supply chain business processes therefore becomes a must. After all, if you keep doing the same thing and expecting different results, you are setting yourself up for failure,â&#x20AC;? she says. â&#x20AC;&#x153;One of the major challenges that must be overcome in the Middle East is the

sub-standard educational programmes requirements, while customisation and provided to those in the industry. The implementation of the system, remains market needs educational fundamentals to equally as important.â&#x20AC;? be established, prior to investing in WMSConsequently, she says, the continuous based solutions.â&#x20AC;? support provided by competent WMS AbuRas believes that this essential base service providers should remain of of knowledge will provide the industry with paramount importance. â&#x20AC;&#x153;Logistics is a real a better grasp of developed techniques and time operation, and cannot wait for month terminologies, so often found end to close like a balance sheet. A und to successfully increase efficiency functionality issue that is not ency â&#x20AC;&#x153;If yo and lower operating costs. tackled on time could prove u ke do One major educational disastrous for operations. al thing ing the saep a m aspect that AbuRas would These factors should be n e differ d exp e e like to bring clarification considered when c n t t i n r are se esult g heavily to is the differentiation selecting a WMS provider.â&#x20AC;? tting s, you up fo yours of Enterprise Resource In terms of the future r failu elf reâ&#x20AC;? Planning (ERP) and of the Middle East WMS d Warehouse Management market, AbuRas thinks itâ&#x20AC;&#x2122;s nt Systems (WMS). â&#x20AC;&#x153;While ERP increasingly bright. is nevertheless the backbone â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s often a case of starting ne of a business infrastructure within thin the supply at ground-zero. Being introduced to the chain, they are not designed d to support the WMS market right now presents a wealth complexity and flexibility of a supply chain. of opportunity to clients that are seeking For more complex supply chains, hains ERP and improved supply chain solutions. I believe WMS complement each other by building the regional market will continue to grow structural flexibility in the business as more and more WMS vendors will be environment,â&#x20AC;? says AbuRas. coming into playâ&#x20AC;? says the consultant. Although some might disagree, in terms â&#x20AC;&#x153;However, in the longer term, I would like of the big players within the WMS market, to see more relevant supply chain education AbuRas says there is only a handful globally, initiatives. Not just one day supply chain which include SPAN with Infor SCM and conferences, where the networking is great LogCubes with Manhattan Associates in and speakers are witty, but rather an the Middle East. Others, such as Exactus, education in efficient market practices and ATMS and Ehrhardt + Partner Solutions procedural safety, taking precedent to also have a sizeable share of the market. everything else. Th is will make our industry â&#x20AC;&#x153;However, being a big player in the WMS stronger in the Middle East, as the field should not just involve the revenue progressive growth of warehouse figures. I believe that local and regional management systems continues well into support in terms of understanding customer the 21st century,â&#x20AC;? she concludes. 2EVENUES -ILLION .BOIBUUBO "TTPDJBUFT 3FE1SBJSJF 4"1 0SBDMF "MEBUB 4PMVUJPOT 5&$4:4 *OGPS )JHI+VNQ 4PGUXBSF $%$ 4PGUXBSF " 4*4 "DDFMMPT

Margareta AbuRas, managing directior of Integral

Manhattan Associates and RedPrairie remain the market-leading providers of WMS software on a global level

www.arabiansupplychain.com | AUGUST 2010

WMS COMPANY PROFILES

synchronisation with existing systems such as ERP and they may notice an inventory balance discrepancy, which creates doubts in some minds. Again, the right expectation levels must be set at the outset, as it is unlikely warehouse management systems will give incorrect data and it is most often a user error.

EXACTUS - NASSER TUFAIL, CHIEF EXECUTIVE OFFICER What are customers in the Middle East demanding from their WMS providers? Common requests from customers include lower upfront acquisition costs, faster return on investment, and tighter integration with existing systems. This will allow them to create real-time operations for sharing and synchronising data, with up-to-theminute information being presented in a graphical, easy to decipher format. More recently, customers have also been asking for yard management, voice picking and configurable workflows, and some have also expressed an interest in SaaS or software on demand pricing models. In certain markets where there is a strong manufacturing base, companies want to leverage warehouse management systems around their manufacturing operations for the traceability of raw materials into finished goods.

How does the regional market for WMS compare to more developed countries? While around for perhaps the last 15 years, the use of warehouse management systems in GCC countries has become more widespread in the last three to five years. Whilst the US and European logistics markets have historically been far more advanced in terms of leveraging WMS and other related technologies, GCC markets are starting to catch up, as the scale of operations becomes more complex and size of the logistics operators bigger. In the early days, there were many deployments that took too long to implement, did not meet expectations or failed altogether. There are some horror stories that prospective buyers of WMS systems were very conscious of and withheld from venturing into this area. Of late, this prevailing attitude has changed as there are many solid references from customers, and admittedly not just ours, who are taking full advantage of WMS technologies to gain a competitive edge and realise significant market benefits. 22 AUGUST 2010 | www.arabiansupplychain.com

Have recent market conditions positively or negatively affected WMS demand? Are there instances where WMS would not be appropriate to implement? Whilst there is little doubt that any warehouse could benefit from a WMS, not every warehouse may necessarily need a WMS. For instance, when the initial costs of acquisition and ongoing support cannot be offset by the benefits of implementing a WMS. Some companies that only deal in inventory management could probably handle their operations with an ERP and may not need a WMS at all. In a small company with a warehouse that handles a limited number of SKUs and already has an in-house legacy system or ERP that can direct basic warehouse tasks, there may not be the need to deploy a WMS. But with requirements for such things as real-time control, customer and product based task workflows, contract billing and inventory deployment, it is highly likely that a WMS will almost be a necessity.

What are some problems faced with clients utilising WMS for the first time? There is an initial learning curve that is required for effective use of a warehouse management system and, not surprisingly, the first time a WMS is deployed, user productivity will normally drop before it improves. At this stage, detractors within an organisation might try to make a case for the virtues of a paper-based system and decide not to lend their necessary support. It is imperative that all concerned parties are on board during the implementation and deployment phase, and that these issues are well understood by all. When companies start utilising a WMS system for the first time, one of the challenges they typically face is data

Although 2009 was a relatively soft year overall for the logistics industry, due to the worldwide recession and its resultant effects on the GCC markets, the second quarter of 2010 has seen some increased activity in the WMS space and we expect this trend to continue. Rather than maintaining a wait-and-see approach, customers are now beginning to engage and move forward with their plans to become more competitive by employing these technologies sooner rather than later.

What technological advancements would you expect or like to see in the future? We are beginning to see an increase in the overlap in functionality between warehouse management systems and other systems such as ERP, transportation management, supply chain planning, manufacturing and distribution requirements planning and execution systems. We believe that interoperability between different systems, either through overlap or tighter integration, will only lend to enhancing real-time visibility in the logistics operations. We also predict that voice picking will become more mainstream as customers seek to improve visibility between the workforce and operations sectors. Finally, there is also increasing demand in pick-to-light technology as it seems to be gaining greater traction within the Middle East region.

WMS COMPANY PROFILES

How does the regional market for WMS compare to more developed countries?

Are there instances where WMS would not be appropriate to implement?

The decision-making process is often slower and providing a return on investment within the initial sales circles can be challenging, simply due to a lack of historical data in many organisations. Corporate organisations are also less agile in making large capital expenditure commitments, as there’s more red-tape. There is still a reluctance to deal with organisations that do not have a local presence in all countries and the concept of remote support, although fully excepted in the west, is still considered a barrier in the Middle East region.

Yes, often where a company’s supply chain strategy is still within its infancy or where simple paper based solutions can cope with non-complex operating conditions.

What are some problems faced with clients utilising WMS for the first time?

In what direction do you see WMS technology heading?

There is sometimes a lack of understanding about what a tool like WMS can bring to their business. Often a company either under values the benefits or inversely over estimates what a WMS will achieve for them. This is purely down to education and can be resolved by ensuring that before any decision is made, the first-time-user fully explores their requirements. Once a WMS vendor is selected the next big issue is commitment, which is required at every stage of the business relationship.

WMS is becoming a commodity and the traditional WMS focused market is consolidating. The future will belong to the suppliers that can continue to innovate and expand their portfolio of mobile or ondemand products and execute over the web/ cloud/mobile devices. Some organisations will continue to grow by adding more smart SCE applications and demonstrating enduser benefits. Others will be absorbed by acquisition or simply not be able to compete because they cannot innovate fast enough.

What technological advancements would you expect or like to see in the future?

What are some problems faced with clients utilising WMS for the first time?

The focus now is very much on proven systems, with solid functionality and good local support. This has meant that most of the voyages of fantasy have dropped by the wayside. We are however introducing new technologies like mobile CCTV for security of the warehouse itself and the associated delivery vehicles. This technology has now come of age and is ideal for ensuring the security of the supply chain.

RFID is moving forward slowly and steadily, but only for niche applications. Voice directed picking is also becoming more widespread. Interestingly, mobile computing hardware is coming down rapidly in price, including both WiFi and GPRS, which will drive wider adoption of WMS both within and outside the warehouse. Finally, remote warehousing is now within the reach of most companies, allowing them to track, trace and record stock wherever that stock might be in the world, including small unmanned warehouses.

Trying to do too much, too quickly. I believe in adopting the crawl, walk, run principle. Get everyone trained in the basics, get them using the system properly, start enjoying the benefits of the WMS platform, then begin a progressive programme of using more and more of the functionality – when and where it’s applicable. If just being introduced to the technology, you can’t expect to know everything about it right away.

Are there instances where WMS would not be appropriate to implement?

How does the regional market for WMS compare to more developed countries?

In this region, perhaps the first area to focus on is people’s ability to run a warehouse properly. WMS is not a magic wand, but a tool to be used by people who understand warehousing and have the drive to improve their operations. People are key to this. It is all about methodology before technology. Your warehouse needs to be of a reasonable size in terms of location, product movements and product codes in order to justify a warehouse management system.

The gap is certainly narrowing and the GCC has now caught up in terms of functionality. The next challenge it to ensure that customers make good use of the functionality through regular localised training and support. Some areas, like voice directed picking are lagging, but it is an economic return on investment question in my opinion. It remains contingent upon the size and operational capacity of your facility, more-so than just going for the latest and greatest technology.

REDPRAIRIE - PETER VAN MERODE, DIRECTOR What are customers in the Middle East demanding from their WMS providers? Companies across the region are demanding fixed priced and fixed scope implementations for their warehouse management systems. The ability to purchase leading-edge WMS technology with the options for including transportation, retail store and workforce optimisation across the supply chain are key business drivers across the region.

ATMS - STEPHEN CROSS, MANAGING DIRECTOR What are customers in the Middle East demanding from their WMS providers?

Have recent market conditions positively or negatively affected WMS demand? Both. We have seen some expenditure programmes frozen until business confidence is fully returned and we have also seen organisations making rapid decisions because they have to optimise their inventory in tough economical times.

www.arabiansupplychain.com | AUGUST 2010

WMS COMPANY PROFILES

EPS - RAMON THOMS, REGIONAL DIRECTOR What are customers demanding from their WMS providers? Customers in the GCC expect no different than customers in the rest of the world. A world-class WMS should provide easy to use and easy to understand warehouse processes. It should define a clear structure within the warehouse and it should deliver valuable information like stock on demand, resource and space utilisation. Also expected is an easy integration of existing IT-systems like SAP, Oracle, MS Navision, seamlessly integrating the WMS into a complete supply chain.

How does the regional market for WMS compare to more developed countries? The Middle East is catching up. Lots of companies in this region did their homework during the crisis. They identified their own strengths and weaknesses and are concentrating on their core competencies to eliminate unnecessary wastes of money. It’s not only manpower that will satisfy the information thirst of companies, but rather modern systems capable of delivering KPI to decision makers.

Are there instances where WMS is not appropriate to implement? No. WMS is necessary nowadays, rather than being something that is nice to have. It is something that each and every company should use to gain independency from the workers knowledge and to fulfil the requirements of a steadily growing market.

What are some problems faced with clients utilising warehouse management systems for the first time? That the wrong partner to implement such a critical business application was chosen. The actual software is not the only criteria when selecting a solution; remember that the implementing partner also plays a vital role in this process. If the partner does not understand the client’s business, the project will fail. Many Middle East companies made the mistake of not carefully choosing the right partner. Just selling the software on a CD without the proper knowhow does not help companies in the long-run. WMS is a business critical application that has an impact on the daily operation.

Have recent market conditions positively or negatively affected WMS demand? Recent market conditions have positively affected the WMS demand. Warehousing and logistics is one of the most underestimated business aspects of the modern time on a global level.

What direction do you see WMS heading? Technology advancements we would like to see in Middle East warehouses include pick-by-voice, which eliminates most of the pick-errors done by warehouse personnel. It boosts the performance and delivers transparency to the entire process. 24 AUGUST 2010 | www.arabiansupplychain.com

SPAN GROUP - KAMEL EL-GHOSSAINI, REGIONAL MANAGER- SUPPLY CHAIN SOLUTIONS What are customers in the Middle East demanding from their WMS providers? Clients are looking more into optimisation and cost savings with their WMS. For SPAN and Infor WMS, this is a request that some companies missed during the busy days. The Infor Tier 1 WMS is all about optimisation, cost saving and cost tracking.

How does the regional market for warehouse management systems compare to more developed countries? In terms of warehouse infrastructure in the Middle East, I would say Dubai is better positioned than a lot of further developed countries. However, more investment is required in professional training for warehouse staff. We have to admit that a lot has been done since early 1996 when we started, however in logistics there is always room for improvement, mainly in the areas of customs clearance and electronic date exchange within the GCC boarders.

Are there instances where WMS is not appropriate to implement? When we propose a WMS, there is always a need and a ROI involved. We work closely with our client to qualify and quantify the need and the challenge they are facing and decide accordingly if a WMS is appropriate. In many instances we request the clients to upgrade their warehouse storage equipment prior to implementing a warehouse management system. The proper foundation must be in place to ensure successful WMS implementation.

What are some problems faced with clients utilising WMS for the first time? In any software implementation, there are a number of project success factors. First, clear customer expectations, second, right implementation partner and third, right product selection. Also, fourth is management commitment to the project’s success. Whenever one of the following is lacking, challenges will appear.

Have recent market conditions positively or negatively affected WMS demand? We have seen positive demand. Customers are willing to take more time to evaluate the proper WMS solution and look for the right partner to work with. We encourage all of our clients to do so. SPAN has been the partner of choice with a very professional and experienced implementation team and with our tier 1 Infor WMS, we clearly standout.

WMS COMPANY PROFILES

LOG CUBES - TAREK SAOUD, DIRECTOR

somehow protected from the fluctuations in market conditions.

What are customers in the Middle East demanding from their WMS providers?

Are there instances where WMS would not be appropriate to implement?

Lately we noticed that customers are demanding two main criteria from WMS providers. The first is the usual stable and bug-free warehouse management system that will help them in tracking, controlling, and optimising inventory, labour, equipment, and space. However the second and new criteria is the qualification of vendors in logistic practices, and the ability to transfer knowledge and expertise. We are seeing more and more cases where customers are enquiring if we can perform consulting work to define deficiencies in their current operations and to suggest how to overcome these challenges. We find that trend pretty unique to previous years where the client’s requirements were primarily driven by technology solutions, while the knowledge and know how of the vendor was a bonus.

Absolutely. A certain warehouse that I visited recently in the region had all the criteria for a WMS. It was a large facility, full to the rim with stock, operating three shifts a day and it was well racked. So it has all the reasons to be a prime candidate for a WMS solution. During the site visit, our team noticed the unorganised operations and confusion of how the warehouse tasks were being handled. We asked to meet the warehouse manager and to our surprise we found they did not have one. This massive facility along with the millions of dollars of stock was being run by very hard working supervisors that had no director or logistics manager to guide, organise and improve things (they were reporting to the CFO). The state inside that warehouse reminded me of the expression “running around like headless chicken”. Our first recommendation was that we will help them by putting in place a management structure and then we would talk WMS.

How does the regional market for WMS compare to more developed countries? The Middle East market is different from country to country. As we all know Dubai, and to a large degree Kuwait, were the leaders and the catalysts in opening the eyes of the region to the fact that logistics is a serious business and needs to be approached professionally. The operators of infrastructure facilities such as ports, customs systems, distribution centres, and transport companies must work hand-inhand to effectively raise the standards and professionalism. This is what was achieved in Dubai and that caused a race among service providers such as 3PLs and large distribution companies to invest and update their systems to a state-of-the-art WMS. Now we see a similar level of awareness in Qatar and Bahrain. In Saudi, we are currently witnessing the awakening of a sleepy logistics industry and business owners there are realising that this is the new competitive weapon that will set them apart.

What are some problems faced with clients utilising WMS for the first time? A common misconception that we often face is end users believing that any WMS solution will help them resolve the operation’s problems and that it will make running a warehouse a simple and accurate activity. The reality is that warehouse tasks are still human intensive operations and are prone to operator error. We are frequently asked to investigate why an operation is still facing

the same level of missed orders, misplaced items or shipping errors even after deploying a WMS. Our findings always point to the fact that not all WMSs are equal. There is one place where all of them look equal and that is on the marketing brochures and literature. The reality is that the WMS market is classified into tier 1, 2 and 3. Tier 1 solutions are those that have gone through many years of implementations with various customers worldwide (in excess of 1000 installations) and have been upgraded, enhanced, and stabilised over the years to the point that they not only optimise operations but also help minimise operator errors and provide better control. The other tier solutions are still working on incorporating the ‘checks and balances’ required in order to keep errors at a minimum.

What technological advancements would you expect or like to see in the future? For the past few years there was a lot of hype on running the WMS via the web and hosting the solution remotely, as well as the buzz on RFID. These did not pick up, especially in our part of the world, where internet stability and connectivity still does not exist to the levels required to ensure that a mission critical system like the WMS is up 100% of the time without any interruptions. A WMS is an activity-based solution and users cannot wait minutes nor seconds for instructions; things have to happen in milliseconds to ensure full productivity. It is clear that best of breed WMS providers will continue to invest significant portions of their income on product enhancement and R&D to ensure they remain ahead of the other players.

Have recent market conditions positively or negatively affected WMS demand? A WMS vendor is like a stock broker. During good times they are in demand because the customer’s business is expanding and in need of organisation. During bad times, visionaries and leaders keep WMS vendors busy because they see it as an opportunity to improve and correct internal procedures and operations by implementing a WMS. So I consider vendors in the WMS domain to be

www.arabiansupplychain.com | AUGUST 2010

WMS CASE STUDY

DIGITAL DELIVERY

A pioneer of technology advancements in the Middle East, Global Shipping & Logistics (GSL) details its success story with the Manhattan Associates warehouse management system.

26 AUGUST 2010 | www.arabiansupplychain.com

WMS CASE STUDY

stablished in 2006, Global Shipping and Logistics (GSL) had a bold, almost grandiose vision for its future direction. Quite simply, admits the Dubai-based company’s IT manager Arun Kumar, it wanted to become the leading player in controlled storage. With the goal of becoming the number one warehousing operation in the United Arab Emirates - in terms of physical size and inventory handling services - GSL invested in a state-of-the-art warehousing complex within a massive one million square foot plot at Dubai Investment Park. At the same time, the company wanted to arm itself with the most advanced supply chain solutions available on the market, to help attract blue-chip clients from sectors as diverse as frozen food to furniture. “For historical reasons, the number of supply chain solution vendors operating in the region has been very limited and so we saw an opportunity here to really differentiate ourselves,” explains Kumar. Believing that the partner companies within their supply chain should be able to exchange critical supply chain data at any time, GSL sought a series of integrated browser-based solutions that would capably and reliably facilitate the order fulfi lment process through effective inter-enterprise communication across suppliers, manufacturers, distributors and end-users. Equally important was identifying a supply chain platform that was functionally rich and highly configurable, as well as easy to use and implement. After a detailed evaluation of various solutions on the market, GSL decided to go with Manhattan Associate’s Supply Chain Architected Logistics Execution (SCALE) system. In reviewing WMS providers, Kumar says budget wasn’t so much the issue. He was looking more towards configurability, while not being heavily consultant dependent. “We ended up choosing a product that was priced 20-25% higher than the market average. However, although it required more of an upfront cost, we received a superior product in the long run,” continues Kumar. “We were impressed with the track record of Manhattan Associates in the region, with a number of industry marketleaders in their respective sectors already using Manhattan’s solutions.” In examining the capability of the new facility, Kumar was pleased with the relatively efficient WMS implementation. “For a typical install, it can take a week

or two to set up process flows and item masters, but we did it in a single day,” he says. “One of the great benefits of SCALE was its configurability, which really comes into its own when you’ve just signed a new client. We are continually signing up clients of all sizes and demands. Yet we’ve never had an inventory control issue.” GSL also realised differentiation as a competitive advantage. “In addition to the core warehousing functionality, the dynamic market trend of the Middle East requires service providers to be flexible and provide complete visibility on not just warehousing but billing as well, which we have achieved. Furthermore, the billing management module is integrated to GSL’s Oracle eBusiness Suite for accurate and timely billing information for our customers, completing the full integration from service to cash,” he adds. “With our Trading Partner Management module, clients can access detailed reports on stock levels, transaction status and item master information, amongst other things, via the web, which minimises the number of enquiries we receive from clients. Our clients can additionally place and then track orders through real-time system updates, which is another advantage.”

Challenge:

GSL wanted to deploy the most advanced supply chain solution available on the market

Goal:

GSL aimed to become the number one warehousing solutions provider in the Middle East in size and inventory-handling services

Solutions: GSL wanted a flexible solution with full visibility and integrated billing management, eventually selecting Manhattan Associates

Result: Products for 40+ blue-chip clients filled two new warehouses at Dubai Investment Park within seven months of going live, leading to an average inventory accuracy of 99.8%

www.arabiansupplychain.com | AUGUST 2010

WMS CASE STUDY

One of Global Shipping & Logistics warehouses in Dubai Investment Park maintains sub-freezing temperatures and is predominantly used to store ice creams and frozen foods

Having used Manhattan Associates’ software to manage on to SCALE’s end-users. “The decision to upgrade was a major both warehouses since they were commissioned in 2006, GSL step for us,” explains Kumar, “We were running both distribution recently made the decision to upgrade to a more recent version centres at full capacity, so we could not afford any downtime. At fi rst there was some of Manhattan ILS, in order to take advantage of the so reluctance to take the risk of a software upgrade, but Manhattan Associates introduced us to provided features. According to Kumar, twentyy of “We other custo customers who convinced us that all would be GSL’s customers are already using Manhattan’s n’s up c ended well – and they were right. The entire upgrade was Trading Partner Management module to trackk a pro hoosing completed in less than two months, with support their orders, and GSL can accurately measure thee complete was p duct th at riced throughout from Manhattan’s consultants. We use and cost of manpower through the integration througho highe 20-25 have a system that is faster, more efficient of the solution’s labour management and now hav r % t h mark et av an the and allows us to offer an improved billing management capabilities. Furthermore,, in operations, operat erage to our customers.” performance ‘dashboards’ provide GSL’s managerss service ” with a view of the entire operation in real time. In what could best be described as pow-wow has come to appreciate the open Kumar points out that SCALE remains extremely mely sessions, Kumar Ku ered to clients, as Manhattan Associates upgrade-friendly, and though the past two years rs have discourse offere what its customers are expecting in future been sluggish for WMS providers, Manhattan Associates has is keen on knowing wh Associates hosts seminars called Product continued to reinvest upwards 10% of net revenuee into research upgrades. “Manhattan A and development. The provided benefits, he says, are then passed Councils in which clients clien fly out and talk to product managers, the hardware, to give opinions of the guys actually creating crea what the system needs or they would like to see. It allows for a GLOBAL SHIPPING AND LOGISTICS (GSL) very interactive platform with the supplier, as well as gives us an opportunity to meet other Manhattan clients.” ` Headquarters: Dubai, United Arab Emirates From an IT perspective, Kumar states the decision to implement ` Distribution centre: Four temperature-controlled warehouse facilities the warehouse management system has been pivotal in helping located in Dubai Investment Park GSL establish its reputation as a quality logistics provider and ` WMS solution: Manhattan Associates’ Supply Chain Architected for represents a growing trend towards digital supply chains for the Logistics Execution (SCALE) Middle East logistics industry. 28 AUGUST 2010 | www.arabiansupplychain.com

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HAZARDOUS CARGO

Dangerous Dispatch With demands to implement a regional blacklist in the hazardous cargo sector, how can warehousing and transportation companies in the Middle East remain ahead of the game?

n this increasingly dangerous world, would you believe that aerosols, perfumes and concentrated food flavours are deemed hazardous cargo? It’s true, and there is an entire profession dedicated to handling these and other hazardous materials properly. This includes managing and advising other managers on hazardous materials, as well as process planning and development of new products through manufacturing, distribution, use, disposal and cleanup. “Any item or substance that places the public, animals and the environment at risk when it’s being transported or moved is considered a hazardous product,” explains Omar Abdullah Al Shamsi, logistics and trading manager at Emarat. “Our company transports and trades mainly jet fuel, gas oil, gasoline, fuel oil, lube oil and LPG. Every one of these products is officially classified as hazardous cargo.” Although the contents of hazardous cargo shipments can vary, most often they remain liquid or gaseous in nature, and are shipped or stored in bulk to reduce associated costs.

AUGUST 20102010 | www.arabiansupplychain.com | www.arabiansupplychain.com 30 JULY

The consignments are often more expensive products in Dubai. On the international to insure and require specialised handlers and side, there are additional rules that govern logistics support. “Most of the products we hazardous product transportation, whether deal with are relatively low in value and high by sea or by road or sometimes by air. “The in quantity,” explains Sumesh Nair, general main regulations related to transporting such manager of Dubai-based Globelink West cargo by sea are MARPOL Annex 2 (Marine Star Shipping. “The majority are chemicals. Pollution), the IBC code (International Code Construction and Equipment However it is often not cost-eff cost effective for the Constructio Carrying Dangerous to transport or store because use of of ships Ca the segregation that must be Chemical in Bulk), and the code (International provided. As well as restraints ts IMDG co Dangerous Goods),” imposed on the quantitiess Marine D Ashita Khanna, handled. We would like to see states this policy changed. ” chemical tanker analyst at Perfu UK-based Drewry As there are many laws the U mes are c and colog Consultants. and regulations that definee Shipping o haza nsidered nes Whenever a hazardous and govern hazardous us Whenev rdou s car shipment is transported, cargo, the regulations are go containers are appropriately generally administered by a labelled to identi identify the hazard that environmental agencies, safety afety and health administrations, and transportation could result from the product, should departments. “Transporting by road tankers anything happen. There are many dangers shipments are not labelled must comply with civil defence fence rules and involved if these shipme regulations,” says Waddah Ghanem Bani Gh B i or packaged k d correctly. tl “If “I such products are Hashim, group EHSQ compliance manager in direct contact with environment, they at Emirates National Oil Company (ENOC), are going to cause harm; at the very least, which deals with a number of hazardous the hydrocarbon gas emissions damage the

DID Y KNOWOU ?

HAZARDOUS CARGO

Some officials would like to see a greater crackdown on habitual violators of hazardous cargo regulations and are calling for implementation of a black-list in the Middle East

ozone layer and enhance global warming,” warns Hashim. Some within the industry, including Emarat’s Al Shamsi, are lobbying for a blacklist of those who are caught not following the strict procedures that have been put into place. “In the worst-case scenario, if a company fails to comply with industry standards, the business must be closed

immediately by the concerned authority and persons in charge should be black-listed from handling any business related to hazardous cargo,” demands a vehement Al Shamsi. And while some companies specialise in hazardous cargo, most do not. It remains something they are willing to handle on behalf of their customers, although it is rarely the core aspect of their business.

“We handle hazardous freight for several major companies in the region, including petrochemical and oil and gas companies. Some of the products are very toxic and require special handling,” comments Peter Richards, group director and general manager at the Sharjah-based logistics specialist Gulftainer, which operates more than 180 trucks from its network of shipping ports.

www.arabiansupplychain.com | AUGUST 2010

HAZARDOUS CARGO

The majority of hazardous cargo friendly companies, including Gulftainer, use their own transport fleet and need to ensure that their drivers are aware of safety requirements when transporting hazardous cargo. “Currently we are handling all products through our own road tankers and have chartered a ship for one year for sea transport, which puts all responsibility of the carriage of the cargo during sea passage on the ship operators,” says Al Shamsi. “Additionally, every truck utilised during the transport of hazardous cargo should be

Largest accidental explosion Stringent policies regarding the handling of hazardous cargo include adequate storage and mandatory labeling

The world’s largest man-made accidental explosion occurred in 1917 in Halifax Harbour, Nova Scotia, Canada. An estimated 2000 people were killed and 9000 injured when a French cargo ship laden with explosives collided with a Norwegian livestock carrier. The explosion caused a tsunami in the harbour and a pressure wave of air that snapped trees, bent iron rails, demolished buildings, grounded vessels and carried fragments for kilometres.

32 AUGUST 2010 | www.arabiansupplychain.com

While choosing to remain anonymous, one equipped with fire fighting equipment, to allow for immediate intervention, should the source believes there is currently an issue with quality storage facilities within the UAE, and worst case scenario actually become a reality.” Nair says while oversight, especially in some companies are failing to take measures this sector, is a good thing, he would to ensure the safety of workers as well as cargo. “Right prefer an easing in limits, as profit “Righ now there is a Prope serious shor shortage of hazardous margins are too slim to equip r safety storage. This presents a justify housing or transport. t. cargo stora know ment a because some “Regarding regulation, wee problem n a re tw ledgeable d companies are choosing not welcome it. However, some companie o the ri ways to staff would like permission to to declare their freight, and les sk actually handle greater with s associat sen keeping it in unregulated h ed azar conditions. Consumers in this quantities, so as to makee conditions cargo dous it more cost effective for or market are relatively limited in knowledge of requirements us to handle such dangerous ous their knowled and some companies and precarious goods,” hee says. for HAZMAT an “We recommend every provider to are taking advantage, advantage undercutting the the industry’s follow established regulations, tions, including market and degrading degradin using protective gear and always having reputation. We can only hope that they will course.” knowledgeable staff on hand..” be flushed out in due cour

Clarion Shipping is a global Ocean and Air freight forwarder, a multimodal Transportation and Logistics Services provider head quartered in Dubai, UAE. Clarion strives to be a global organization in the world of logistics by providing value added integrated logistics solutions. Clarion caters to customers in need of a local logistics service partner with global reach providing professional, yet personalized services. We are a ONE-STOP-SHOP for all your logistics requirements.

P.O. Box 43030 Dubai, UAE Tel: +971 4 359 3030 Fax: +971 4 359 3040 Email: clarion@emirates.net.ae Website: http://www.clarionshipping.com

• Freight Forwarding • NVOCC • Land Transport • Air & Sea Freight • Projects Handling • Packing/Removals • Customs Clearance • Insurance Services • Exhibition Handling • Sea- Air Movements • Supply Chain Services • Break Bulk and Charter • Warehouse & Distribution • Import & Export Consolidation • Clarion Express Courier Services • Clarion Document Storage Services OFFICES IN: U AE, OMAN, SAUDI AR ABI A, KUWAIT , B A HRAIN, Q ATA R, INDIA, HO NG KO N G – CH I N A , T H AIL AND, MAL AYSI A, I NDO NESIA, US A , L E B ANO N, K E NYA, TA NZANIA , UGA N DA , RWANDA, BU R UNDI , DJI BOUTI, JUB A, D. R. C O NG O , NIG E RIA , CAM E RO O N, GHA N A .

AGILITY LOGISTICS TOP 10 MIDDLE EAST WAREHOUSES

AGILITY LOGISTICS TOP 10 MIDDLE EAST WAREHOUSES 34 AUGUST 2010 | www.arabiansupplychain.com

AGILITY LOGISTICS TOP 10 MIDDLE EAST WAREHOUSES

DUBAI Agility’s flagship warehouse in Dubai is located at Jebel Ali Free Zone and operates as a central hub for the company’s regional operations. The facility can store a large variety of cargo, offering 22,608m2 of temperature controlled storage, 4172m2 of dedicated pharmaceutical storage and 30,405m2 of ambient storage. The turnaround times for vessels at the nearby Jebel Ali Port are some of the quickest in the world and Agility’s proximity to the main container terminal and customs authorities provides an ideal location to operate a regional distribution centre. The warehouse is also integrated to the company’s road and airfreight systems, being just 40 minutes away from Dubai International Airport, 15 minutes from the new Al Maktoum International Airport and a central hub for Agility’s Middle East road network. Th is allows for goods to be delivered in a secure and efficient manner wherever the destination. One of four facilities in Dubai, Agility’s Dubai warehouses provide specialised services to a variety of prestigious clients from different industries, including the automotive, life sciences, electronics, and fast moving consumer goods (FMCG) sectors.

BAHRAIN In addition to serving its own domestic market, Bahrain is considered a popular gateway to the Kingdom of Saudi Arabia, with a direct connection through the King Fahad Causeway. In addition, the country will soon be linked to another of its close neighbours Qatar - with the opening of a similar bridge within the next ten years. Agility’s facilities are planned with this in mind, offering clients full integration with its broader GCC distribution and logistics network. The logistics company operates a facility in the Al Hidd industrial area, which is relatively close to both Bahrain’s seaport and airport. In addition, bonded facilities are available at the Mina Salman port and Bahrain Airport Free Zone. The main warehouse offers fully air conditioned dry storage with over 16,250 pallet positions. A chilled and freezer section is also available with nearly 7000 pallet positions. These facilities service a number of industries, including life sciences, biotechnology, manufacturing, retail and information technology. The warehouses are supported by over 70 transport assets, which have been purchased to continuously enable local and regional distribution.

With a network of 90 warehouse facilities in 12 locations across the Middle East and Africa, Agility profiles its top ten storage centres in countries such as the UAE, Bahrain, Oman, Kuwait and Saudi Arabia.

www.arabiansupplychain.com | AUGUST 2010

AGILITY LOGISTICS TOP 10 MIDDLE EAST WAREHOUSES

QATAR Agility believes its Qatar operations are a perfect representation of the company’s diverse service portfolio, with much of the work focused on the country’s oil and gas, FMCG, retail and banking sectors. In addition, Agility offers specialised solutions, such as records and information management, international moving and relocation services, and a dedicated chemicals storage facility.

Servicing these various markets while complementing Agility’s growing logistics capabilities in Qatar is a 30,000m2 warehouse in Doha, where over 600 staff and 150 trucks and trailers work to provide solutions to over 200 customers throughout the country. The warehouse offers 32,000 pallet positions, with a combination of temperature-controlled, refrigerated and open yard facilities.

OMAN Located in close proximity to Muscat’s main commercial centre, together with the city’s shipping and airport, Agility has designed its Oman headquarters in Ghala to integrate within a national logistics system. Th is spans the entire country, with warehousing centres in primary locations such as Nizwa, Sohar and Salalah. In total Agility offers 19,000m2 of warehousing and 26,000 pallet positions, as well as 139,000m2 of open yard storage. Local operations have a focus on the oil and gas, FMCG, retail and telecoms sectors. Many of these customers are served by the Ghala warehouse facility, which offers 15,000m2 of multi-temperature storage and has a total capacity of 12,500 pallet positions.

KUWAIT Agility has long-believed that its warehouse capabilities are second-to-none in Kuwait and epitomise the company’s regional strengths in storage assets. In total, there are 52 facilities in the country, of which 40 are situated in the Sulaibiya area. Other warehouse locations include Mina Abdullah, Doha and Shuwaikh, which service a diverse spectrum of clients from every industry sector. These range from FMCG to pharmaceutical and from perishable cargo to hi-tech goods. 36 AUGUST 2010 | www.arabiansupplychain.com

The company’s ambient, temperature controlled, chilled and frozen warehousing is supported by a local team of over 1024 employees and integrates into Agility’s domestic and international distribution network. The Kuwait facilities comprise of 254,000m2 in covered, temperature controlled warehousing, with a further 170,000m2 of open yard storage, and a total of 230,000 pallet positions. These facilities are also supported by over 5800 transport assets.

AGILITY LOGISTICS TOP 10 MIDDLE EAST WAREHOUSES

KINGDOM OF SAUDI ARABIA Located next to Riyadh dry port and situated within a Government specified warehouse district, Agility’s Saudi Arabia warehouse offers direct access to the Jeddah and Dammam highways, with near and easy access to the city’s industrial areas. The warehouse offers multiple temperature zones and tailored logistics solutions to many top brands from the FMCG, high tech, oil and gas, pharmaceutical and retail sectors. Servicing the largest consumer market in the GCC, the Riyadh warehouse has 40,000m2 warehousing space and 59,000 pallet positions. With over 400 employees across three offices, the Riyadh warehouse is the fi rst step in Agility’s strategy for an integrated logistics network of warehousing and transportation facilities across the Kingdom, capable of offering local, regional and global solutions.

LEBANON Strategically located in the heart of Beirut’s commercial centre, Agility’s warehouse is only five minutes from Lebanon’s major port and about twenty minutes from Beirut International Airport. Situated between two major highways, it provides for convenient and easy access throughout the country. The 30,000m2 facility offers 22,000 pallet positions, multiple temperature zones, and a range of value added services, supported by the latest technology and security systems. The Beirut warehouse provides services to a broad client base include major multinationals in the fast moving consumer goods (FMCG) sector, as well as retail and hi-tech companies. In order to meet demand, Agility is currently developing a state-of-theart 23,000m2 warehouse located within 15 minutes of central Beirut.

www.arabiansupplychain.com | AUGUST 2010

AGILITY LOGISTICS TOP 10 MIDDLE EAST WAREHOUSES

EGYPT

JORDAN Agility’s main Jordan warehouse is situated in close proximity to the Aqaba Container Port and has been marketed as a state-ofthe-art distribution hub for Jordan and the wider region. Covering 15,000m2 in total, and with over 15,000 pallet positions, the Aqaba facility is complimented by three additional warehouses in Jordan, totalling 29,000m2 and 36,000 pallet positions. These facilities are served by almost 400 transport assets, ensuring a seamless distribution network throughout the country. Offering multiple temperature zones, suitable for an array of industries, Agility serves various clients in Jordan, mainly from the automotive, hi-tech, retail and FMCG industries.

38 AUGUST 2010 | www.arabiansupplychain.com

ABU DHABI Agility’s Abu Dhabi facility offers a total of 400,000m2 in air conditioned, dry, chilled and open areas. Th is consists of 9000m2 of closed warehousing space and 375,000m2 of open yard storage. The company’s open yard space also includes a custom bonded storage area that measures 10,000m2 for transit storage purposes, in addition to a resident customs officer and a customs clearance facility. The Abu Dhabi facility also has a dedicated humidity and temperature controlled records management area, providing specialist solutions for customer documents storage. Agility is currently developing a new 40,000m2 facility in Abu Dhabi to capitalise on growing demand in the UAE capital.

One of the most important markets in the Middle East, Agility’s warehouse in Egypt includes 154,000m2 of space, with 43,000m2 in covered storage and 35,000m2 in open yard storage. The Cairo warehouse is strategically located with direct access to the major transport roads that feed Cairo, Alexandria, the Nile delta and Upper Egypt, making it well positioned for a domestic distribution centre, while utilising Agility’s complete supply chain solutions to import, warehouse and deliver goods throughout Egypt. Th is facility was opened in 2006 to meet the needs of a broad range of multi-national and local companies. Marketed as one of the few state-of-the-art facilities in Egypt, the Cairo facility offers the latest technology and control systems, supported by a team of 330 dedicated employees in offices throughout Egypt.

ASK THE EXPERT

KEEPING GROUNDED

QUESTION: How can companies benefit from efficient industry flooring in their regional storage facilities? WHY THE LOGISTICS SECTOR HAS INCREASED ITS FOCUS ON FLOORING

THE POTENTIAL TO SAVE TIME AND MONEY WITH THE RIGHT CONCRETE

HOW LASER LEVELLING CAN BOOST AUTOMATION AND EFFICIENCY

Following the growth of the Middle East logistics industry, and the corresponding increase in demand for warehouse space, companies are exploring a variety of different measures to ensure their supply chain operations are efficient. An area that has increased in importance over the years is flooring, especially with the installation of heavier and higher racking systems, which require concrete floors with greater tolerance standards. Damaged or unlevel floors can have dramatic implications on the transportation and storage of stock, including product damage, costly repairs and delayed deliveries.

Successful concrete floors are the result of a detailed planning process, which focuses on the needs of the user to deliver the appropriate tolerances and quality required. Part of this process involves a design brief and establishing performancebased specifications. The finished concrete slab is then tested against this specification to ensure the final product will perform as designed. The basic steps of the process to reduce the hidden costs of remedial and maintenance repairs include the correct floor specification, well-prepared ground work, proper reinforcement, well-planned joints appropriately spaced and the correct concrete mix.

An unlevel storage facility floor will impact other handling systems in the facility, such as pallet racks, automated storage and retrieval systems, conveyors, horizontal carousels and narrow-aisle lift truck operations. Therefore, it is vital that all measures are taken to ensure a completely flat service. Traditional hand screed methods of construction, whether using a straight-edge or vibro-strike type tool, rely heavily on the skill of the team to set accurate wet pads and follow them precisely. Even amongst the most qualified team, errors between reference points will inevitably occur. A laser screed machine can be utilised to offer precise flatness and level maintenance, as the machine’s laser control system ensures an accurate finished level through the use of electro-hydraulic controls and allows for easier and fast construction. Laser receivers mounted on the screed head receive a signal from a transmitter providing automatic control to finished floor level.

MAKING THE RIGHT DECISIONS AT THE INITIAL PLANNING STAGES

OTHER IMPORTANT CONSIDERATIONS

When building a storage facility, the first TO ENSURE THE BEST END RESULT thing that companies should consider Other steps in the process include a wellis flooring, especially in terms of which planned and managed site with an even treatments and materials to use for flow of concrete, together with accurate maximum durability and longevity. It placement and levelling using a combination is not as simple as just laying concrete. of skill and technology. Good finishing Adequate attention has to be paid and joint cutting should also to the surface of the floor, where be considered, as should the coatings and sealants should be appropriate time for curing the applied to increase protection. floor before loading. Each of these Additionally, there are other steps remain interrelated and techniques that can be applied to dependant upon each other. A further increase durability. One is performance-based specification vacuum dewatering, which drawn up at the very early removes the surplus stages of a project’s water from the concrete development is the only and reduces the overall way to ensure success water content by 15and ultimately, the 20%. Other benefits achievement of a include a super quality concrete flat surface, less floor in your This month’s column was written crack formation, facility that by Joachim Nyberg, managing less maintenance is fit for the director of Fars Al Mazrooei and minimum purpose dusting. intended. 40 AUGUST 2010 | www.arabiansupplychain.com

UNDERSTANDING THE PERILS OF POORLY CONSTRUCTED FLOORING Excessive joints, unexpected cracks and uneven floors are at the very least unsightly and at the worst debilitating. Badly positioned joints or large open cracks in aisles or free movement areas can slow down materials handling equipment movement, cause unnecessary wear to tyres, wheels and bearings, and potentially cause instability with loads. Uneven floors can have the same negative effect, slowing production and adding cost. A poorly designed and improperly constructed floor may have problems such as cracking, inadequate joint performance and poor surface tolerance. Various repairs can often rectify many of these defects, but at a great cost of time and money.

INDUSTRY STATISTICS

FACTS & FIGURES Air Cargo Regional & International Statistics

Knowledge of cargo statistics is essential to supporting your supply chain operations. Every month, Logistics Middle East provides its readers with three pages of the latest information from a variety of trusted sources, including Emirates SkyCargo, Airports Council International (ACI) and Saudi Ports Authority. EMIRATES SKYCARGO FUEL PRICE INDEX

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS 210,000

450

175,000

14 May

25 June

406

410

401 4 June

140,000

385 11 June

370

2 July

382

21 May

105,000

382

373 70,000 330

35,000

FUEL PRICE INDEX The fuel index is based on the average price of aviation fuel in five key spot markets (Rotterdam, Singapore, New York, US Gulf and US West Coast).

09 Jul 10

02 Jul 10

25 Jun 10

18 Jun 10

11 Jun 10

04 Jun 10

28 May 10

21 May 10

14 May 10

07 May 10

250

MONTHLY AIR CARGO REPORT: EUROPE REGION* AIRPORT/COUNTRY

APRIL 2010/2009

April 10

Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sept 09

Aug 09

July 09

INDEX 100 = 53.5 US cents per US gallon

June 09

0 May 09

290

CARGO STATISTICS This graph represents the cargo volumes handled at Dubai International Airport over twelve months. Cargo is measured as loaded and unloaded freight and mail in tonnes (Source: Airports Council International)

MONTHLY AIR CARGO REPORT: AFRICA REGION*

YEAR-TO-DATE 2010/2009

AIRPORT/COUNTRY

APRIL 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Amsterdam (Netherlands)

112,326

12.2

472,155

18.5

Accra (Ghana)

3116

-21.8

14,019

-13.6

Brussels (Belgium)

33,600

0.6

147,436

3.7

Addis Ababa (Ethiopia)

3645

-23.0

13,796

-36.0

8.8

Algiers (Algeria)

1493

-38.8

5926

-25.3

Antananarivo (Madagascar)

892

1.2

3708

2.5

Cologne (Germany)

43,071

-2.4

187,643

Frankfurt (Germany)

169,463

21.2

704,768

28.9

Istanbul (Turkey)

36,790

26.7

147,110

38.8

Leipzig (Germany)

43,939

10.7

187,706

26.2

London Heathrow (UK)

105,701

7.3

476,181

18.1

Luxembourg (Luxembourg)

54,971

11.2

219,612

9.4

Paris (France)

158,020

11.3

643,770

12.1

Vienna (Austria)

19,793

34.1

76,141

34.4

Warsaw (Poland)

4263

22.8

17,369

23,678

8.4

101,554

Zurich (Switzerland)

24,715

9.3

107,492

11.3

Casablanca (Morocco)

4454

-20.6

17,032

-17.6

Dar Es Salaam (Tanzania)

1238

-26.2

4972

-16.8

Djibouti (Djibouti)

414

n/a

2191

-29.2

Harare (Zimbabwe)

1787

14.5

6992

10.4

Cairo (Egypt)

23,137

25.3

94,171

15.8

Libreville (Gabon)

1330

-22.5

5848

-12.4

10.7

Saint-Denis (Reunion)

2515

2.3

10,942

14.0

15.7

Tunis (Tunisia)

1896

12.0

6869

18.9

Johannesburg (South Africa)

*Monthly cargo statistics for international airports, with data provided by Airports Council International (ACI). Cargo is defined as loaded and unloaded freight and mail (in tonnes).

42 AUGUST 2010 | www.arabiansupplychain.com

INDUSTRY STATISTICS

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*

MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION* AIRPORT/COUNTRY

APRIL 2010/2009

YEAR-TO-DATE 2010/2009

AIRPORT/COUNTRY

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

34,151

21.1

135,508

22.2

Ahmedabad (India)

Amman (Jordan)

7072

14.1

27,922

13.2

Bahrain (Bahrain)

27,626

-2.9

111,925

-0.5

Beirut (Lebanon)

6114

4.0

24,506

8.1

Calcutta (India)

178,357

19.6

723,107

25.9

2594

6.4

11,604

2.5

Abu Dhabi (UAE)

Dubai (UAE) Fujairah (UAE)

APRIL 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

2352

47.6

8916

35.9

Bangalore (India)

17,004

43.5

66,047

34.4

Bangkok (Thailand)

105,063

36.4

414,117

41.3

9128

26.0

37,326

30.4

Colombo (Sri Lanka)

13,159

26.7

54,015

30.0

Fukuoka (Japan)

21,184

8.9

81,739

9.1

356,915

37.6

1,271,060

34.8

Kuwait (Kuwait)

22,083

41.4

69,745

18.8

Hong Kong (China)

Muscat (Oman)

8191

67.9

30,844

65.0

Jakarta (Indonesia)

41,553

20.2

169,555

20.1

n/a

968

26.0

Kuala Lumpur (Malaysia)

57,877

30.0

220,179

28.9

28.0

Manila (Philippines)

34,956

51.6

135,470

57.3

Ras Al Khaimah (UAE) Sharjah (UAE)

33,013

10.5

144,805

Mumbai (India)

51,103

14.8

212,215

23.4

Osaka (Japan)

64,914

42.2

236,661

38.1

YEAR-TO-DATE 2010/2009

Seoul (Korea)

11,928

-1.9

50,445

-6.9

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA AIRPORT/COUNTRY Anchorage (USA)

APRIL 2010/2009 Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Shanghai (China)

286,274

45.6

1,026,214

55.0

258,107

190.8

789,369

68.7

Singapore (Singapore)

148,884

15.9

583,971

17.6

Taipei (Taiwan)

152,309

53.6

564,564

65.5

Tokyo (Japan)

190,583

35.3

706,456

40.1

Buenos Aires (Argentina)

16,476

48.2

59,570

33.2

Chicago (USA)

115,638

45.7

427,555

36.8

Los Angeles (USA)

147,145

27.5

552,112

25.8

Memphis (USA)

323,519

8.1

1,275,321

8.6

Mexico City (Mexico)

30,849

23.9

120,658

23.0

*Monthly cargo statistics for international airports, with data provided by global trade association Airports Council International (ACI). Cargo is defined as loaded and unloaded freight and mail (in tonnes).

For up-to-date figures, visit:

www.arabiansupplychain.com | AUGUST 2010

INDUSTRY STATISTICS

FACTS & FIGURES Sea Freight Regional & International Statistics Our sea freight data includes information on bunker fuel prices at major port facilities in the Middle East, North and South Europe, North and South America, and Asia. More specific cargo statistics are also provided from the Saudi Ports Authority, covering the major ports in the Kingdom.

FUJAIRAH BUNKER FUEL PRICE INDEX 500

12 Apr

12 Jan

486

480

12 Mar

BUNKER FUEL PRICE INDEX*

460

725

n/a

443

660

640

Houston (USA)

432

452

n/a

Istanbul (Turkey)

n/a

New Orleans (USA)

438

458

n/a

675

Piraeus (Greece)

657

470

667

n/a

Rio de Janeiro (Brazil)

449

467.5

711

n/a

431.5

450

657

n/a

476

486

719

n/a

443.5

450

634

n/a

Rotterdam (Netherlands) Shanghai (China) Singapore (Singapore)

*Information on the bunker fuel price at port facilities in the Middle East, North and South Europe, North and South America, and Asia, featuring data from 12th July 2010. The prices are quoted in US$ per metric tonne and split into four categories: 380 centistoke (IFO380), 180 centistoke (IFO180), Marine Gas Oil (MGO) and Marine Diesel Oil (MDO).

TOTAL THROUGHOUT FOR SAUDI PORTS IN TONNES 15 million

350

275

Summary of cargo throughput for major Saudi Arabian ports - Saudi Ports Authority CARGO TYPE Bulk cargo (solid)

12 million

Bulk cargo (liquid)* General cargo Containers (in tonnes)

9 million

Ro-Ro and vehicles Livestock TOTAL

6 million

TOTAL PORT THROUGHPUT

CONTAINERS (TEU)

3 million

May 10

Apr 10

Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sep 09

Aug 09

Jul 09

Jun 09

12 Jul 10

450

Hamburg (Germanry)

12 Jun 10

Fujairah (UAE)

12 May 10

n/a

12 Apr 10

704

736

12 Mar 10

713

553

12 Feb 10

483

n/a

425

12 Jan 10

475

Cape Town (South Korea)

442

435

12 Dec 09

Busan (South Korea)

12 Jun

12 Sept

MDO

12 Nov 09

MGO

12 Oct 09

IFO180

12 Sept 09

IFO380

12 Aug 09

PORT / COUNTRY

459.5

MAY 2010 Discharged

YEAR-TO-DATE

Loaded

Discharged

Loaded

1,892,982

736,295

8,811,398

2,764,408

298,062

4,510,946

1,779,841

20,854,240

940,627

54,163

3,223,278

242,258

2,603,667

1,911,453

11,444,893

8,724,782

139,109

16,258

672,398

69,786

4,814

n/a

51,445

n/a

5,879,261

7,229,115

25,983,253

32,655,474

13,108,376

58,638,727

2010

2009

May

Year-to-Date

May

Year-to-Date

Discharged

227,629

1,014,313

200,627

867,825

Loaded

213,243

975,061

180,123

879,334

TOTAL

440,872

1,989,374

380,750

1,256,903

Source: Saudi Ports Authority (SPA). The statistics cover all major Saudi Arabian ports (dead weight in tonnes). *Bulk cargo (liquid) excluding crude oil.

44 AUGUST 2010 | www.arabiansupplychain.com

01 1 02 2 03 04 05 EVENTS CALENDAR 06 07 0809 10 111 112 13 14 15 116 177 18 19 20 211 2 22232425 2627282930 TRADE EVENTS

A listing of trade shows, conferences and seminars relating to the Middle East logistics industry

10th – 12th October 2010 TRANSOMAN

24th October 2010 CILT NETWORKING EVENT

26th – 28th October 2010 SEATRADE MIDDLE EAST

TransOman, the Sultanate’s leading event for shipping, transportation and logistics companies, will provide a three-day forum for local industry professionals to discuss the latest issues that are effecting the domestic market’s development. Both previous and new participants alike will find even more opportunities to discuss industry issues. In addition, delegates will be provided with the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities expected to arise. VENUE: Oman International Exhibition Centre EMAIL: ebrahim@oite.com WEBSITE: www.trans-oman.com

Following the success of its previous seminar in April, the Chartered Institute of Logistics and Transportation (CILT) has confirmed plans to host a follow-up event at Emirates Aviation College in Dubai on 24th October 2010. The session is aimed at trade professionals from across the regional industry, in addition to students that have enrolled on a supply chain programme. A variety of topical issues will be tackled by speakers from the Middle East, in addition to countries such as the UK and Holland. VENUE: Emirates Aviation College, Dubai EMAIL: info@ciltuae.org WEBSITE: www.ciltuae.org

Held under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of UAE and ruler of Dubai, Sea Trade Middle East Maritime 2010 will take place at Dubai International Convention and Exhibition Centre in October. The exhibition and conference is expected to bring together the global ship-owning community with businesses that specialise in international ship equipment, in addition to product and service suppliers in the Middle East. VENUE: Dubai Convention & Exhibition Centre EMAIL: smayle@seatrade-global.com WEBSITE: www.seatrade-middleeast.com

23rd – 24th November 2010 TRANS MIDDLE EAST

1000 2 25th – 28th November 2010 m

The historical maritime city of Alexandria in Egypt has been selected as the host city for this year’s Trans Middle East exhibition and conference. Billed as the largest annual ports, shipping and logistics exhibition and conference in the Middle East, the event is expected to attract around 70 exhibitors from around the world, with a target audience of 500 senior executives from Europe, the Middle East and Africa (EMEA). Topics will include logistics, shipping and container ports, and ongoing market challenges. VENUE: Hilton Alexandria, Egypt EMAIL: wani@transportevents.com WEBSITE: www.transportevents.com

18th May 2011 GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT SUMMIT

The Supply Chain and Logistics Group (SCLG) has announced plans to host its fourth annual Global Logistics and Supply Chain Management Summit in May 2011. The Dubai-based trade association is hoping to break its record from this year’s summit, which attracted more than 200 delegates from various Middle Eastern countries, in addition to Singapore, India and the United Kingdom. VENUE: Dubai, United Arab Emirates EMAIL: admin@sclgme.org WEBSITE: www.sclgme.org

46 AUGUST 2010 | www.arabiansupplychain.com

HANDLING EXPO

30th November 2010 AVIATION BUSINESS AWARDS

Marketed as the largest annual material handling event in the Middle East, Handling Expo makes a return to Cairo International Convention Centre in November, bringing together buyers, sellers and end-users from across the region to interact and collaborate. Attendees at the four-day exhibition will find the newest technologies and applications to make their operations leaner and more productive. Last year’s exhibitors included the likes of Landoll, Crown, Yale, Nissan Forklift, Interroll and Hyster. VENUE: Cairo International Convention Centre EMAIL: info@ifg.eg.com WEBSITE: www.handlingexpo.com

Hundreds of figureheads from the Middle East aviation industry will gather at the Emirates Palace hotel in Abu Dhabi this year for the annual Aviation Business Awards. Inaugurated in 2007, the ceremony has established itself as the ultimate celebration of achievements within the region’s booming aerospace sector over the past 12 months. This year’s awards will include 15 categories in total, covering the airline, airport and cargo sectors, together with a variety of supporting niches. VENUE: Emirates Palace, Abu Dhabi EMAIL: robeel.haq@itp.com WEBSITE: www.arabiansupplychain.com

5th – 7th June 2011 SITL DUBAI

25th - 27th September 2011 MATERIALS HANDLING MIDDLE EAST

Hosted by Reed Exhibitions, the second SITL Dubai exhibition will take place at Dubai International Convention and Exhibition Centre in June 2011, with a predicted 250 exhibitors from the supply chain and transportation sector. The event, which has been organised in co-location with the Airport Show exhibition and conference, is being marketed as a leading platform to connect the key markets in the East with their counterparts in the West. VENUE: Dubai Convention & Exhibition Centre EMAIL: mohamad.ahmed@reedexpo.ae WEBSITE: www.sitldubai.com

Established in 2001, Materials Handling Middle East is marketed as the leading trade exhibition and conference for the regional logistics industry. The fifth edition of the show attracted around 175 industry leaders from 27 countries, who showcased their products and services to around 7000 key purchasers from 82 countries around the world. Exhibitors included the likes of SSI Schafer, FAMCO, SPAN Group, Ehrhardt + Partner Solutions, Exactus and Loc8. VENUE: Dubai Convention & Exhibition Centre EMAIL: info@uae.messefrankfurt.com WEBSITE: www.materials-handling-dubai.com

FACE TO FACE INTERVIEW

DAILY DELIVERY As the latest addition to DHL’s Middle East management team, UAE country manager Frank-Uwe Ungerer highlights his strategy to develop the company’s local operations. Congratulations on your appointment as DHL’s country manager in the UAE. When did you actually start a career in logistics? As they say, it runs in the family. My father was a passionate freight forwarder and I inherited his zeal for the industry. As a young boy I helped in my parent’s small forwarding business and after school and college, I could often be found offloading trucks and rail wagons or actually driving a van to deliver goods. Naturally I chose an education in transportation studies and learned this business from scratch. Can you summarise how your career has developed since these early years? Well, I worked for some years in freight forwarding, focusing both on road and airfreight, before joining a cargo airline for 12 years. I was fortunate to work for a company that highly values people development. Once my potential was observed I embarked on a career path that allowed me to constantly grow into roles with more responsibility. Geographically I have moved between various parts of the world, from Germany to Russia onto China, and then back to Russia, until I eventually joined DHL. My roles have been focused on sales or general management.

48 AUGUST 2010 | www.arabiansupplychain.com

What prompted the move to your current position as DHL’s UAE country manager? I believe my knowledge and track record has brought me to this country. In particular, I look forward to applying my experience in developing new growth strategies across countries and regions as DHL Express UAE country manager. This is a great opportunity for me as the UAE is a fascinating market and I am arriving at a time when the crisis seems to be loosening its grip on the economy. What are your main responsibilities and objectives in this new role? In essence, I believe my role is to make our customers more successful. This will be achieved by offering an outstanding customer experience with highly engaged staff, which translates accordingly to customer satisfaction and loyalty. How do you plan to achieve your goals, both personal and corporate? The ethos of our CEO is knowing your customers, knowing your numbers and knowing your people. This combined with motivation through achievement, ownership and accountability are the fundamentals of success. We also have to be superior in the basics and processes of business, whether that be the marketing mix, operations or effective commercial processes. With great people everything is possible and our customers will experience it. How has DHL maintained its market position in the United Arab Emirates? We are the leader in the UAE’s international express market, but market share does not entirely mirror a company’s strengths. The real strength can only be determined by our customers, which we measure through customer retention and satisfaction. We are well positioned, but as usual we can and will look for further improvements.

In what ways does the United Arab Emirates differ from other markets? Each region is unique and every market has different dynamics and logistics challenges to take into consideration. With its strategic position in the Middle East, the UAE can essentially be divided into two logistics segments that shape the express industry in the emirates. Firstly, there is the local UAE market, which has held its own in the economic downturn and is continuing on a strong growth path. Secondly, the UAE is considered an ideal intercontinental transit hub given its geographical location, serving as a gateway into the Gulf for many businesses. In mid-July, the statistics department at Dubai Customs released data that Dubai has registered a growth of 16% in non-oil international trade in the first five months of 2010, while re-export activity recorded a growth exceeding 17%. What is your take on what is happening right now in the express logistics sector? The impact of the economic downturn reached the UAE later than other global markets and we observed that the effects were also less dramatic. In our industry, we saw signs of a slowdown starting at the end of the first quarter last year. We also picked up the first signs of a potential recovery as early as the fourth quarter of 2009. However, given the recent commercial climate, many businesses are reviewing their entire supply chain processes in an effort to drive cost efficiencies and reduce waste. Actions taken include stock and inventory reduction, improved forecasting, migration of goods to free zones and re-thinking of supply chain distribution routes and flow management. We see this as a good thing. All of these require the logistics industry to adapt and respond to varying customer requirements. We must continually seek evolvement in this fast-paced, ever-changing business.

Global Shipping & Logistics (GSL) offers a complete suite of supply chain solutions for different business verticals and temperature ranges from a single location. With its world-class infrastructure, systems, operations and quality processes, GSL is home to many leading brands. Speak to us and see why clients have outsourced their supply chain to us.

4OTAL #APACITY OF 0ALLETS #"s &//$ "%6%2!'%3 s &-#' s ()'( 342%%4 2%4!), s &52.)452% &52.)3().'3 s #/.35-%2 %,%#42/.)#3 s )4 4%,%#/-

s State-of-the-art Warehousing Infrastructure s Fully Automated Material Handling Systems s Integrated Warehouse Management Systems (WMS) s Real Time Inventory visibility s Web Based Order Management s Cold Storage (-25ยบC to 8ยบC) s Temperature Controlled Storage (+18ยบC to 25ยบC) s 24 hours Security and Trained Personnel s Transportation Services (Refrigerated & Dry) s Fast & Efficient Custom Clearance & Documentations (C&F) s Direct to Store Distribution s Co-Packing and Value Added Services (VAS)

P.O. Box 2022, Dubai Investment Park, Dubai, United Arab Emirates Tel: +971-4-8851566, Fax: +971-4-8851577, E-mail: info@gsldubai.com

Website: www.gsldubai.com