Country focus
Food
Viewpoint
Saudi’s freight industry embraces technology
Logistics development in the GCC
Omni-channels optimise the supply chain
Connecting trade professionals with industry intelligence
March 2018
For the
Greater good. G r o up CEO Kh a l ed Al Hura i m e l i s p o s i t i v e o f B e e ’ a h ’s e xpa nsi o n p l a ns f o r t h e r e gi on
P 3 8 - R e a d a b o u t h ow RTA h a s i t s p l a n s i n p l ac e f o r D u b a i
Contents
Contents
M a r c h 2 018
Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME
March 2018
R e a d a l l t h e l at e s t i s s u e s o n I s s u u
Start 12 | News 20 | Op-ed
An insight on transformation in the modern world
Features 22 | Cover story
Khaled Al Huraimel of Bee’ah discusses the environmental company’s journey over the years
32 | Food Logistics Impact of the increasing food requirements in the region
38 | Transport
Dubai RTA officials comment on upcoming projects and expansion plans
42 | Interview
Truxapp redefines logistics technology in the region
48 | Viewpoint
Omni-channel benefits of effective inventory systems
50 | Report
DHL survey on growing talent gap crisis
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52 | Supplier News 54 | Diary Logistics News ME | March 2018 | 3
Regional News
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M a r c h 2 018
E d i to r ’ s L e t t e r
M a r c h 2 018
A note from the editor
Pa r o m i ta D e y paromita@bncpublishing.net |
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Keeping in line with the UAE Vision 2021 revolving around sustainability, Dubai’s Roads and Transport Authority (RTA) launched the first tests of the world’s first autonomous pods at the World Government Summit. The autonomous pods – launched in cooperation with Next Future Transportation – are designed to travel short and medium distances in dedicated lanes. They can be coupled together in as little 15 seconds or detached – depending on the riders’ destination – in five seconds. Each pod is fitted with cameras and electromechanical technologies to carry out the coupling and detaching, which can be activated while the pod is in motion. In addition to this, in line with its efforts to provide a better quality of life in the Middle East, Bee’ah underscored its unshakeable vision for sustainability by purchasing the first and largest fleet of Tesla Semi trucks in the Middle East. The announcement was made in-line with Bee’ah’s participation at the World Future Energy Summit, held in Abu Dhabi from January 15-18, 2018.
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The organisation placed an order for 50 of the automotive brand’s revolutionary all-electric vehicles immediately after their launch on November 16. The incoming Tesla Semi trucks, which enter production in 2019, will primarily be used for waste collection and transportation, including transportation of materials for recovery. They will also add to Bee’ah’s growing fleet of vehicles, which total over 1,000 today, and continue upgrading the organisation’s transport options in making the fleet as eco-friendly as possible. Overall, Bee’ah’s modernised fleet will continue to make a significant contribution to reducing the company’s carbon footprint, and that is by using the new Tesla Semi trucks alongside the existing electric vehicles, the vehicles that run on compressed natural gas and the ones that run on bio diesel, in addition to the boats that use solar energy while cleaning lakes and water bodies. Dubai sits on the cusp of every technology and sustainable innovation and is constantly coming up with new solutions to go with the same.
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Regional News
Regional News A n u p dat e f r o m a r o u n d t h e r e g i o n Cargo
Emirates SkyCargo transports first Emirati satellite
Emirates SkyCargo has successfully transported KhalifaSat- the first satellite developed and built by Emirati engineers in the UAE at the Mohammed Bin Rashid Space Centre (MBRSC). As the first step in its journey to space, KhalifaSat was flown from Dubai to Incheon International Airport in South Korea on an Emirates SkyCargo Boeing 777 freighter aircraft that was specially chartered for the occasion. Emirates SkyCargo also unveiled a special branded truck to mark the event. The KhalifaSat project was launched in 2013 by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime 12 | Logistics News ME | March 2018
Minister of the UAE and Ruler of Dubai, with the aim of manufacturing the first space satellite on the UAE soil. Following its launch in 2018, the remote sensing satellite will provide images of Earth for practical application in a variety of industries. Nabil Sultan, Emirates divisional senior vice president, cargo, remarked: “Over the years, Emirates SkyCargo has transported a wide variety of unusual cargo but being able to transport the first satellite manufactured in the UAE is a unique honour. We are delighted to bring our expertise in air transportation to the table on this historic and momentous occasion.” Salem Al Marri, assistant
director-general for Scientific and Technical Affairs, MBRSC, commented: “It has been a journey of nearly five years from the time the Mohammed Bin Rashid Space Centre commenced the manufacture of KhalifaSat to now where we’re getting ready for the final launch. We needed a partner who had the capability and expertise to transport KhalifaSat from Dubai without compromising its sensitive instrumentation and components. Emirates SkyCargo worked with us over a three-month period to make sure that the entire transportation process went smoothly.” Given the extremely sensitive nature of the
shipment, teams from Emirates SkyCargo and MBRSC worked together from November 2017 to prepare and plan all the steps in the movement of the satellite from Dubai to Incheon airport. The satellite was first moved from MBRSC’s manufacturing facility in Dubai, to the Emirates SkyCentral DWC freighter cargo terminal at Dubai World Central airport, on a dedicated remotely monitored Emirates SkyCargo truck travelling on a geo-fenced route with a police escort for maximum security. A number of trial loading exercises were also conducted by Emirates SkyCargo and MBRSC, to ensure that operations went smoothly during the actual transportation of the satellite. The satellite was then loaded through the wide main deck doors on the Boeing 777 freighter aircraft. The air cargo carrier’s team of cross-functional specialists including specialised loadmasters drew up an optimal loading plan on the aircraft for the safe transportation of the satellite. In addition to loading and transportation, detailed planning was involved from Emirates Skycargo to ensure aircraft and crew availability as well as obtaining all relevant permissions for operating a chartered freighter flight to Incheon International airport. www.cbnme.com
M a r c h 2 018 Technology
DMCC, CropData to develop digital agri-marketplace in India
Dubai Multi Commodities Centre (DMCC), a leading free zone for commodities trade and enterprise, has signed a strategic partnership with CropData Technology to develop a digital pan-India agri trading marketplace, as the UAE and India look to intensify economic cooperation.
Under the agreement, DMCC will develop the digital platform which will eventually connect up to 500 logistic hubs throughout India, by streamlining the forward sale of farm outputs. With over 14,000 companies in its free zone, DMCC will also act as a gateway for increasing agri trade
between the two countries. Built on blockchain technology, the DMCC and CropData Technology partnership forms the largest technological initiative of its kind in the region, and is due to be operational this year in two states in India. Ahmed Bin Sulayem, executive chairman, DMCC, said: “The UAE and India are on a steep mission to grow cross-border collaboration. This is exciting, and we are delighted to introduce new technology that will further facilitate and increase trade between our two countries.” Gautam Sashittal, chief executive officer, DMCC, said: “This online marketplace will be the first such collaboration in the agri space between the two countries and will complement the Indian government’s eNAM (electronic National Agriculture Marketing) initiative.” The DMCC and CropData Technology partnership aligns with the ongoing work between the UAE and India to increase connectivity and enhance bilateral trade between the two countries.
The data Port Maputo
14.9mn the amount (in tonnes) of cargo by the port in 2016
18.2mn the amount (in tonnes) of cargo by the port in 2017 2016
2017
955 896 number of ships received at the port 2016 vs 2017
MV Amani Largest ship that used the port in 2017, carrying 96,400 tonnes of magnetite
Port Maputo is managed by MPDC, a joint venture between DP World, Mozambique’s publicly-owned ports and rail company CFM, Grindrod of South Africa, and the private company Mozambique Gestores
Quick news
UPS launches daily non-stop service between Louisville hub and Dubai, reducing time-in-transit between the US and key destinations in the Middle East by a full business day.
Ireland-based Aerogen, a leading provider of acute care aerosol drug delivery for major hospitals globally, has opened its office in Dubai Airport Free Zone.
Honeywell launched its first industrial cyber security centre of excellence (COE) at its Middle East headquarters in Dubai, UAE.
Port of Salalah completed its first ship-to-ship transfer operation (STST) at Salalah anchorage recently, as part of its expanding service offering in 2018. Logistics News ME | March 2018 | 13
Regional News
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Agility collaborates with IBM, Maersk on global blockchain solution Global logistics provider, Agility, has become the first freight forwarder to collaborate on Maersk and IBM’s blockchain solution, which aims to provide more efficient and secure methods for conducting global trade. IBM and Maersk revealed their global trade digitisation platform, built on the Hyperledger Fabric 1.0 blockchain, in January. DuPont, Dow Chemical, Tetra Pak, the U.S. Customs and Border Protection, and others piloted an early version of the project. Agility has agreed to identify events associated with individual shipments and to share and receive information about them via the distributed ledger blockchain technology developed by IBM and Maersk. Agility’s goal is to reduce costs– which reportedly accounts for one-fifth of the world’s total $1.8tn annual shipping costs– and increase shipping efficiency by integrating information about shipments onto a secure platform accessible to shippers, carriers, freight forwarders, and others in the supply chain. Essa Al-Saleh, CEO of Agility Global Integrated Logistics, said: “Blockchain technology is going to make shipping cheaper, safer and more reliable. As early adopters, companies like Agility can help Maersk and IBM understand the needs of shippers and develop standards that will make trade more efficient. We can help customers understand how to use blockchain to improve shipment visibility, eliminate paperwork, reduce errors, and shorten transit and clearance times.” In addition to showing the location of containers in transit, blockchain can show the status of customs documents, bills of lading, and other documentation. It can improve workflow, cut processing costs, and enhance visibility by integrating shipping processes and partners. Customs and border authorities can use the technology to improve the information available for risk analysis, leading to increased safety and security as well as greater efficiency in border inspection clearance. Other blockchain-based shipping initiatives are underway, including those relating to trade finance, product provenance, and the consolidation of administrative processes.
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14 | Logistics News ME | March 2018
vehicles
Ford captures healthy Middle East market share in 2017
Ford’s commercial vehicles team made a significant contribution to the group business in 2017, by developing unique fleet solutions and securing key tenders in Saudi Arabia and the UAE. The globally best-selling Ford Transit made major inroads into a range of commercial applications last year, one of which is the Dubai Corporation for Ambulance Services (DCAS) new “ambulance of the future”, on show as part of the stand at the Arab Health Exhibition and Congress in Dubai. Theirry Sabbagh, managing director for Ford Middle East, said: “Our focus on the business remained lasersharp. We worked with our dealers to provide them the tools to help them succeed whether on the product mix, the value for money equation, or even the sales and after sales experience. We finished the year on a strong note, giving us an excellent base to start from for 2018.” Sabbagh is confident that the industry will stabilise and grow in 2018, and he says Ford
and its distributor network are ready. In 2017, Ford dealers continued to invest in a stronger distribution network with new sales and service points opening in the region. The company also appointed a new distributor for both Ford and Lincoln brands in Kuwait, Alghanim Auto, and recently assigned the Iraqi territory to its new distributor, Al Kasid Group. One area that Ford claim to be relentlessly working with its dealer partners is customer satisfaction. According to Ford’s own customer satisfaction survey, more and more customers are satisfied with the level of sales and after-sales services they are receiving from Ford dealers. Sabbagh added: “This is a great success story that we should all be proud of and we commend both our dedicated teams and our dealer partners as they demonstrate their true commitment to the business. As we continue to offer our latest product range, from our various dealership outlets, customer satisfaction is critical to our continued and sustained success.” www.cbnme.com
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Regional News
Quote It echoes the Dubai Autonomous Transport Strategy aimed at converting 25% of mobility journeys in Dubai to autonomous transportation by 2030.” Mattar Al Tayer, director-general and chairman of the board of Executive Directors of the Roads and Transport Authority (RTA), commenting on the tests of the world’s first transport autonomous pods.
DHL Supply Chain appoints new MEA CEO David Christmas, previously CEO Middle East, Russia and Turkey (MERT) at DHL Supply Chain and head of Transport (MLEMEA), has been promoted as the CEO of Middle East and Africa, announced by the DHL Supply Chain Mainland Europe, Middle East and Africa (MLEMEA) management team. In his new role, Christmas will be leading on the overall strategy for the supply chain business and the direct managerial team, while overseeing operations and business activities to ensure a consistent delivery of quality services. Commenting on his appointment, Christmas said: “We continue to see tremendous opportunity in the Middle East and Africa region and we hope to further strengthen our leadership as the supply chain service provider of choice. We have had a number of significant wins last year which couldn’t have been achieved without our regional team delivering the best service quality and we look forward to another successful year.” Christmas’ career in logistics spans over 20 years across Europe, Asia and Africa, in various roles including, general management, business development, transport, and customer relations.
16 | Logistics News ME | March 2018
Cargo
GSSCO registers 680,000 TEUs at Jubail Container Terminal
Gulf Stevedoring (GSCCO), part of the Gulftainer group of companies, has recorded a strong performance at the Jubail Container Terminal (JCT) in Saudi Arabia, registering a container volume of over 680,000 twenty-foot equivalent units (TEUs) in 2017. JCT also recorded its highest-ever monthly throughput at 79,074 TEUs in August 2017 – an impressive 33% hike on July 2017, also one of the terminal’s bestperforming months. With Jubail’s petrochemical plants now in full production, the ports in the coastal city are experiencing a steady increase in activity. In November 2017, JCT received the largest container vessel to arrive at Jubail to date with the maiden call of Evergreen Marine Corporation’s (EMC’s) 14,424-TEU EMC Taurus. The 369m long vessel completed 813 container moves on its maiden call. At a reception held by GSCCO to mark the 2017 milestones, Captain Fahd bin Ahmed Al Amer, director general of the Jubail Commercial Port, congratulated the team on the remarkable feat. The
event drew the participation of senior officials from Saudi Customs, Saudi Coast Guard, and the Jubail Commercial Port Authority. Richard James, managing director of GSCCO, said: “The milestones we have achieved at JCT are an indication of our commitment to consistently delivering bestin-class performance. The Jubail port remains a key gateway for incoming and outgoing container traffic in the burgeoning Saudi market. As we identify new opportunities for growth, we remain focused on engaging our customers and partners as well as governments for long-term impact. We will also continue to invest in new talent and technologies to enhance operational excellence and increase terminal productivity.” In addition to JCT, GSCCO also operates the Jubail Industrial Port (JIP) and the Northern Container Terminal (NCT) in Jeddah. To keep pace with the anticipated growth across its Saudi facilities, GSCCO has deployed three additional rubber-tired gantry (RTG) cranes to boost the capacity of the terminal and maintain its excellent productivity rates. www.cbnme.com
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Majaal Warehouse Company signs deal with Broadway Trading Majaal Warehouse Company, a developer and operator of industrial facilities for small and medium enterprises (SMEs) in Bahrain, has inked a partnership deal with Broadway Trading & Services, a major exporter of recycled plastics on the sidelines of the Gulf Industry Fair 2018. Set up in 2011, Broadway Trading & Services specialises in the procurement of heavy equipment for the oil and gas sector. The firm is now installing processing facilities at Majaal which will specialise in turning factory processed plastic into granulated material
ready for export to the Far East, said the company in a statement. While the inputs will originate in Saudi Arabia, the business will be a manufacturer and net exporter of material produced in Bahrain. At the signing, Amin Al Arrayed, the managing director of Majaal Warehouse Company, said: “We are very pleased to welcome
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Broadway to our facilities, where they will occupy nearly 1765.15sqm, making them our third largest tenant. We are excited that Broadway’s innovative operations are creating jobs and value for the economy. Their selection of Majaal as their new home further reaffirms our position as the preferred provider of industrial facilities in the Kingdom.”
Dawood Ma, the co-partner of Broadway, said: “We chose Majaal primarily for the quality of its industrial facilities and the responsiveness of their management. We need our facilities to work for us and in Majaal we have found a good partner. Majaal’s location is also ideal as it provides us easy access to both the seaport and the highway leading to Saudi Arabia. Their team is professional and friendly which makes for a great working relationship. We are planning to expand in the future and we expect that Majaal will help facilitate our future growth.”
Technology
DP World to incorporate Oracle cloud platform for trade DP World is keen to drive digital transformation across its business operations worldwide using Oracle Cloud Applications (SaaS). DP World group chairman and CEO, Sultan Ahmed Bin Sulayem, and Oracle Business Applications senior vice president Eastern and Central Europe, Middle East and Africa (ECEMEA), Arun Khehar, signed an agreement to develop a modern and integrated technology platform. The digital transformation programme supports the company’s strategy to develop complementary sectors in the global supply chain such as industrial parks, free zones, and logistics, to add value for all its stakeholders and the move supports its vision to become a digitised global trade enabler – employing cloud applications that
(L) Arun Khehar, Oracle Business Applications, and (R) DP World’s Sultan Ahmed Bin Sulayem
can increase efficiency, create new services, and support diversification. Oracle’s cloud applications will enable the standardisation of key core processes including finance, operations, procurement, and human resources. As part of this new platform, it will also incorporate technologies in artificial intelligence, machine learning, Internet of Things (IoT) and block chain, to deliver smarter operations and create intelligent logistics to benefit customers. Logistics News ME | March 2018 | 17
Regional News
Thyssenkrupp showcases delivery robot at Washington Auto Show 2018
Leading German multinational conglomerate, Thyssenkrupp, presented its TeleRetail delivery robot at the Washington Auto Show 2018 in Washington DC, US. US Sen John Thune (R-SD), chairman of the Senate Committee on Commerce, Science, and Transportation, convened a hearing titled “Driving Automotive Innovation and Federal Policies” at the Washington Convention Centre, according to the official statement. The session focused on self-driving vehicles, and thyssenkrupp Elevator’s and TeleRetail’s ground-breaking delivery robot was named as a benchmark product. Ivo Siebers, senior vice president of Global Logistics at thyssenkrupp Elevator, said: “Fast growing American metropolitan areas need intelligent solu-
18 | Logistics News ME | March 2018
At a width of just 85cm, the delivery robots can carry payloads of up to 35kg, and reach into inner-city areas where vehicular transport is limited. tions to cover the last mile in delivering spare parts to our technicians. In connection with TeleRetail, we are testing autonomous vehicles to solve this growing logistical problem.” In collaboration with software developer TeleRetail, thyssenkrupp Elevator launched a pilot project in which delivery robots transport spare parts and other material to maintenance job sites. The robots are said to represent the future of smart maintenance logistics. For elevator and escalator servicing, spare parts are needed quickly and a technician either has to drive back to base in his
or her service vehicle or have it delivered by a colleague. But with increased traffic clogging up city streets, the pressure on the supply chains is rapidly. “This is a major urbanisation challenge that our service technicians are already experiencing today,” added Siebers. “With driverless delivery robots, we could fill a gap and get spare parts from our warehouses to the job site faster, more efficiently and with less impact on the environment.” Information on delivery status can be obtained quickly via an online Logistics Automation Platform. “We hope to improve
our service delivery in this way,” added Siebers. TeleRetail is developing driverless delivery vehicles, and for thyssenkrupp Elevator, they could be an optimal logistics solution for elevator servicing. The cloud-based driverless systems could form complete supply and logistics networks; a promising solution with enormous development potential. Torsten Scholl, CEO of TeleRetail Mobility Automation, said: “With our platform, we want to optimise logistics by saving time and costs, and minimising space requirements, energy consumption and emissions. Thyssenkrupp Elevator and TeleRetail are looking forward to conquering the emerging 3D logistics automation opportunities together.”
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M a r c h 2 018
Snapshot
Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, Sujoy Bose, CEO of NIIF, and Ramesh Abhishek, secretary of the Department of Industrial Policy & Promotion at India’s Ministry of Commerce & Industry, at a panel discussion titled ‘Smart Trade, Transport and Logistics Solutions’, moderated by CNN’s Richard Quest, during World Government Summit 2018.
Railways
Strukton to install 4,284 solar panels on Riyadh metro depot Strukton, a key provider of cross-border solutions in the field of rail infrastructure, vehicles, and mobility systems, won a contract to install 4,284 solar panels on a Riyadh Metro depot serving the rail system’s Lines 4 and 6, in partnership with Germany’s Wagner Solar. A Dutch company, Strukton has operations in the rail systems, civil infrastructure and technique, and buildings markets. Internationally, the company focuses on transport systems in densely-populated areas, opening up port, airport
and mining areas, and generating and distributing (sustainable) energy. The $3.8mn contract, the first for Strukton in Saudi Arabia, was awarded by Samsung C&T, which is responsible for implementing the MEP (mechanical, electrical and plumbing) works of Line 4 of the FAST consortium. As per the deal, Strukton along with Wagner Solar, a part of the Sanderink Investment Group, will set up the 4,284 solar panels which are expected to produce a total of
2,452MWh capacity power. The solar project comes in line with Vision 2030, the national programme of Saudi Arabia, which is aimed at
transforming and diversifying the economy, and renewable energy plays a vital role in achieving the goals of the sustainability agenda. Logistics News ME | March 2018 | 19
Op-Ed
Opinion
Kim Winter and Bushra Ali retrospect on the idea of transformation in one of the most tech-lutionary periods in the history of mankind
Transformative action I There is nothing more powerful in provoking thought and reaction than a demonstration of disruption in action.”
20 | Logistics News ME | March 2018
t is 2018 and those still struggling to wrap their heads around the notion of change have already become irrelevant. Change, transformation, evolution, and, one daresay, ‘revolution’— are a fact of life. We are no longer merely anticipating or predicting change. Instead, we are already thick in the middle of one of the most rapidly evolving eras in the history of mankind. Today, the name of the game is ‘transformation’ – how we choose to respond, react, adjust, and even capitalise on the changes that are happening around us every waking moment. It is important to understand the nuanced difference between change and transformation. Change merely indicates a shift of any kind in the status quo. It can be small and incremental, positive or negative, or even inconsequential. On the other hand, transformation implies a significant, fundamental change that is often large-scale and permanent. Change indicates a state of flux, whereas transformation involves a decisive ‘letting go’ of the past to embrace a new way of doing things. At LogiSYM Dubai 2018, held on February 13 and 14 at the Jumeirah Creekside Hotel, we focused on the theme ‘Disruptive Changes, Transformative Possibilities in the Supply Chains of Tomorrow’. In particular, we grappled with transformation in the logistics and supply chain industry at both a macro and micro level. Drawing from global knowledge and regional expertise, we honed on the relevance of the changes on the horizon – both promising and challenging. We discussed the transformation that will inevitably entail as GCC economies diversify and disruptors set new precedents and address crucial gaps in capacity, performance, and capability in supply chains across industries, ranging from construction to finance to F&B.
Indeed, it was no coincidence that LogiSYM Dubai fell on Valentine’s Day this year. In many ways, the day is an annual feat in supply chain excellence, as millions of roses are shipped fresh, largely from Kenya (one of the world’s largest exporter of roses) to arrive in flower shops and doorsteps in record time and perfect condition. It requires this complex supply chain to operate like clockwork for Valentine’s Day to be as special as our partners expect it to be. To demonstrate this, we partnered with key regional disruptors, VP Group, and their freight forwarding partner Flower Exchange, as well as B2B eCommerce platform Floranow, to supply 500 red roses for our guests on day of the event. However, since there is nothing more powerful in provoking thought and reaction than a demonstration of disruption in action, we decided to take our showcase a step further – or actually, 10 feet above the ground. Space Autonomous Drones, the first licensed commercial drone provider in the Middle East, orchestrated the delivery of roses via drone at our event, to illustrate what last mile delivery shall inevitably look like in the near future. Nonetheless, while digital disruption may be the biggest buzzwords of the moment, the significance of astute leadership and human resource capabilities cannot be overlooked by organisations eager to prepare for the inevitable transformations ahead. This was recognised at the conference as well, during one of our closing panels titled ‘Transformational Leadership in a Middle East Integrated World’. The panel, which featured leading international recruitment specialists, behavioural experts and professors, emphasised the role of leadership in fostering young talent that can help businesses harness transformation for business success, rather than mere survival.
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M a r c h 2 018
A rosy picture: drone in action at LogiSYM Dubai 2018
Carrie Amani Annabi, assistant professor and director of the Logistics and Supply Chain Degree postgraduate program at Heriot-Watt University, urged industry leaders and their talent – young and old– to remain authentic, rather than forcing themselves into old-school moulds. She also highlighted the need to encourage and embrace more female participation in the industry to broaden the pool of talent and inject more dynamism and creativity in the industry. Carmel Perales, general manager – South East Asia, at Logistics Executive Group, who has extensive experience in recruitment and human capital consulting, discussed the lack of succession planning fuelling leadership gaps in firms across the industry. “In terms of the way, most organisations seem to be structured in the industry, especially in Asia and the Middle East, there is a lack of youth in middle management being groomed for senior level positions,” she notes. “This causes a lot of young talent to drop out or switch
Kim Winter is the global CEO at Logistics Executive Group, with over 35 years of executive leadership experience spanning corporate advisory, M&A, trade facilitation, executive development, executive search and recruitment across supply chain, aviation, eCommerce, F&B, logistics, FMCG, and retail. Bushra Ali is a business intelligence specialist at Logistics Executive Group – Middle East, with a degree in Economics and Chinese from Williams College, Massachusetts, USA, and specialises in market research and economics.
industries in order to advance in their careers.” As these perspectives indicate, transformational leadership in today’s industry is
not merely about effective workforce management, but also empowerment, education, and dynamic communication. In many ways, digital transformation is merely about providing the tools to allow organisations to achieve this. At the end of the day, it is the organisation’s leadership and human capital potential that determines how optimally these new digital tools and resources are utilised and calibrated to meet organisational objectives. Therefore, ironically, while the way we do things may continue to evolve at a faster rate each day, human capital continues to remain a key driver of business success. Despite the buzz around glitzy gadgets and glamorous technology, it is important to remember that cutting-edge computer algorithms don’t write themselves. It takes a human mind willing to get uncomfortable, confront a problem, and harness resources optimally in order to explore uncharted territories and transform businesses for the better.
C o v e r S to ry
a Green Objective Mehak Srivastava speaks to Bee’ah Group CEO, Khaled Al Huraimel about the company’s achievements, goals, and strategies Photos by Farooq Salik
E
xpansive views of a true-blue Khalid Lagoon are the first thing that greet you as you step into the sunlit conference room at the current Bee’ah Sharjah office. “We’ll soon be moving to our new headquarters,” mentions Khaled Al Huraimel, group CEO, Bee’ah. “An office that is set to be a true benchmark for all sustainable projects coming up in the region.” Bee’ah’s new 7,000sqm headquarters, located on a 90,000sqm site adjacent to the Bee’ah Waste Management Centre, is said to further bolster Bee’ah’s image as an organisation that not only aims to manage and reduce waste, but to also create an environment fit for the future. The site was commissioned to renowned architecture firm Zaha Hadid Architects, following a 2013 international competition. A steady rise Established in 2007 as a public-private partnership, Bee’ah began its journey as an environmental management company for the emirate of Sharjah, with just 40 employees under its wing. Today, it boasts of a workforce of more than 7,000 employees, all dedicated to making the world a better place to live in, one initiative at a time. It has expanded its business to other parts of the UAE, with municipal service contracts for the regions of Dibba, Mleiha, Kalba, Al Madam, Hamriya, Khorfakkan, and Al
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Batayeh. Bee’ah also holds the contract for Abu Dhabi Lot 1, formed through a partnership with Tadweer, the Centre of Waste Management, Abu Dhabi, the largest municipal contract outside Sharjah. “We initially focused all our efforts towards reducing waste,” says Huraimel. “Waste is a big problem in the region, with one of the highest rates of waste generation per capita in the world, at 2.5kg per person, per day. The emirate of Sharjah alone has a population of 1.4 million people, and the total amount of annual waste is almost three million tonnes.” The issue is a definitive cause for concern. A Frost & Sullivan study predicted that total waste generated by GCC was set to increase from 94 million megatonnes (MT) in 2015 to as high as 120 million MT per annum by 2020. The report also highlighted that GCC is not equipped to handle this level of waste generation through the existing landfilling strategies, and adoption of alternate handling mechanisms to deal with the problem of increasing waste was required. Huraimel remarks: “Bee’ah is owned 50% by the Sharjah City Municipality, and 50% by the private sector, the reason being that we wanted the public sector to continue to play a key role in the success of meeting the objectives. “Today, Bee’ah is the only integrated waste management company in this region— we
don’t just collect the waste and clean the streets, we also manage landfills, segregate, and recycle the waste. We also convert waste to energy. We’ve set a ‘zero waste to landfill’ target for Sharjah, out of which we’ve already reached just over 76%, which is the highest diversion rate of waste away from landfill in the Middle East.” Bee’ah’s employees consist of both trained professionals, as well as individuals who are later trained on site. Huraimel comments: “When we first set up, we brought the expertise from abroad, signing contracts with governments from Europe, for example the Netherlands, one of the most advanced countries in waste management. We signed an MoU with the Netherlands government, and did the same thing with Novo Scotia, Canada. “Over time, we started building our own expertise and now most of our expertise is inhouse. The UAE market and the Middle East market, in terms of waste, is different than other markets. Hence, we do not copy other markets, we adapt to what is required. That’s why we’ve been very successful.” Reduce, reuse, recycle Bee’ah operates across five main divisions— waste management, energy, sustainability, technology, and community engagement. Within waste management, its arms are Tandeef, Tadweer, and Residuals Management.
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C o v e r S to ry
Did you ? w o n k The wordans h’ me ‘Beea ment’ in on ‘envir abic Ar
Huraimel continues: “We handle all types of waste— from municipal solid wastes, to residential wastes, to medical wastes, tyres, we manage it all. Our waste collection and street cleaning arm Tandeef collects waste from all parts of Sharjah, and brings it to our Waste Management Centre (WMC) in Al Saj’ah.” Tandeef also operates across the emirates of Dubai, Abu Dhabi, and Ajman; some of its most notable clients include Burj Khalifa, Dubai World Trade Centre, TECOM, and Marina Mall. In 2015, Bee’ah launched the Tandeef smart eco-fleet, that are low-noise, collect and clean bins simultaneously, and run on compressed natural gas (CNG). Other smart features include ‘smart routing’, a GPSmapped system that features the dispatch on demand (DOD) option; and ‘smart bins’, which senses the waste inside the bin and sends dispatch to vehicles per sector for collec-
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tion. The bins are collected when they’re full, or in case of non-full bins, the collection is performed within two days to avoid insects and unsanitary bins. The landfill site at Al Saj’ah was transformed in 2009 to a sophisticated safe disposal site that allows for systematic segregation and waste processing. As step one, the waste is direction to the Material Recovery Facility (MRF), the Middle East’s largest and world’s third largest such facility. Here, recyclable materials are segregated from municipal waste, via mechanical and manual processes. The MRF processes over 1,000 tonnes of general waste daily, of which an estimated 67% gets recycled and thus diverted from the landfill. The recyclable materials are carried forward; the WMC includes a number of recycling amenities, allowing for proper handling of all waste materials. These include facilities
for tyres, construction and demolition waste, medical waste, liquid waste, medical waste, cars and other metal, e-waste dismantling and processing, and a compost plant. Huraimel explains: “Our tyre recycling facility is one of the most advanced in the region, using cryogenic technology. The tyres are converted to crumb rubber, which can be used in playgrounds, jogging tracks, rubberised asphalt roads, etc. Plus, given the scale of infrastructure projects in the region, our construction and demolition facility processes that waste into five different aggregates or sizes, which is used in infrastructure projects and roads, recycling it almost 99%. “Wekaya, established in 2011, is a premier facility to recycle medical waste, established through a joint venture. Our car and metal shredding and recycling facility is for end-oflife vehicles, where we process, shred, and
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segregate the metals, and reuse. In addition to that, we’re building several new facilities, for PET plastic and wood recycling.” Ventures of the future The Abu Dhabi Sustainability Week (ADSW) 2017 saw Bee’ah and Masdar, the Abu Dhabi Future Energy Company, come together to establish renewable energy projects, launching the Emirates Waste to Energy company (EWTE). The company is the first of its kind in the region, and its first project is the Sharjah Multi-Fuel Waste to Energy Facility, capable of diverting over 300,000 tonnes of unrecyclable waste away from landfill every year. The facility will incinerate over 37.5 tonnes of waste per hour to deliver 30MW of clean energy to the Sharjah power grid, thus meeting the needs of thousands of households. Apart from waste management, the or-
ganisation is also pushing into the sectors of air and water management; seven air quality monitoring systems have been installed at sites across Sharjah, and water studies are being conducted for local bodies Al Khan and Al Khalid to identify contaminants. “Bee’ah was created to tackle all environmental challenges,” remarks Huraimel. “We are more concerned with the quality of life, which comes from a clean environment, clean water, clean air, and technology. As a first step, we want to understand the level and state of quality of air, and then put plans with the authorities to improve that quality and reduce emissions. Just like we have a target for zero waste, we also have a target for quality of air in the city and the emirate. We’ll do the same thing with water.” More recently, and achieving another first in the region, Bee’ah signed a deal with Tesla at the World Future Energy Summit in Abu Dhabi, announcing an order to purchase 50 Tesla Semi heavy duty electric trucks. The trucks enter production in 2019, and will primarily be used for waste collection and transportation, including transport of materials for recycling. “Tandeef has over 1,000 vehicles, which we are aiming to slowly convert to a green fleet,” comments Huraimel. “We’re the first company in the region to order the Tesla trucks, which just shows the drive we have for creating a sustainable environment and a circular economy, and it’s not just about collecting waste; we’re looking at it as a complete cycle.” Autonomous technology will enable multiple Tesla Semis to “platoon” – that is to travel in convoy with just the lead truck digitally controlling the others. In addition, on-board sensors will detect instability during travel, and automatically make adjustments to vehicle torque and braking to prevent dangerous “jackknifing”. The trucks will be used by Bee’ah alongside existing electric vehicles, as well as those that currently run on CNG and bio diesel, in addition to the boats that use solar energy while cleaning water bodies. Bee’ah has also partnered with a number of US-based companies specialised in transforming dieselpowered vehicles into electric ones, to help contribute to better air quality. Tesla has also been commissioned to provide their advanced power-pack battery technology, with a total capacity of 1,890 kWh, for the new Bee’ah headquarters. The new headquarters firmly flaunt Bee’ah’s core principles to operate entirely from renewable energy sources and move towards zero waste, as well as increase their educational outreach. The interiors have been designed to allow natural sunlight to
stream in, while simultaneously minimising the amount of harsh light affecting visitors and administrative spaces. All power required for the building will be generated via low and zero carbon sources, principally from the adjacent Bee’ah Waste Management Centre’s conversion of municipal waste (that would otherwise decay in landfill) into energy, together with large arrays of photovoltaic cells incorporated within the site’s landscaping. More so, Bee’ah’s expertise and experience of recovered water recycling for non-potable use has enabled the design to be developed for exceptionally low potable water consumption. Community involvement Bee’ah has constantly strived to reach out to the general community and to educate them on the benefits of recycling, with programs such as Bee’ah Rewards, utilising the Reverse Vending Machines (RVMs). Community members are encouraged to deposit their aluminium cans and plastic bottles in the RVMs. Each time a recyclable is deposited, the RVM issues a receipt with a unique barcode, which the user scans through the Bee’ah mobile application, qualifying them to enter the Bee’ah Rewards monthly draw. Bee’ah’s mobile app also encourages recycling in the community by identifying the nearest recycling point, in addition to providing easy access to services like ‘You Call, We Haul’, where people can contact Bee’ah to collect and recycle their bulky waste. Huraimel says: “Every year, we do a lot with the public, from awareness programs, to managing events to sponsoring them, to working with schools and universities; we’re extremely active on this front. We have the Bee’ah School of Environment, designed to help school teachers and instruct students on environmental responsibility. We also have the Sharjah Leadership Programme, which is a Sharjahwide programme, for which we are the main sponsor and we work very closely with the Sharjah Tatweer Forum on that project. “To also help before the waste reaches our site, we do a lot of segregation at the source. Sharjah was the first city to do residential recycling programs. All the residential areas in Sharjah now have the blue and green bins, and you can see the three-stream bins in all public places.” The uniqueness of Bee’ah’s approach and consistent drive towards excellence has helped the company to make rapid progress towards its goal of elevating Sharjah, to the position of environmental capital of the Middle East. Bee’ah’s success lies in the guidance of its visionary leaders and in the tireless efforts of its workforce.
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C o v e r S to ry
Timeline 20 0 7 2008 2 0 09 2010
• Bee’ah established by an Emiri decree. • First commercial recycling program launched.
• Launches first public outreach program. • Development of Al Saj’ah Waste Management Centre underway.
• Tandeef launch announced. • Participates for the first time in the Environment Expo 2009 in Abu Dhabi (World Future Energy Summit). • Awarded control and management of the world’s largest landfill at Al Saj’ah. • Granted management of the Construction and Demolition Waste Recycling Facility.
20 1 1
• The Sharjah Environment Awareness Award (SEAA) is initiated. • Hosts the first Green Middle East exhibition. • Introduces an environmental research and advisory service. • Launches an e-waste pre-sorting and dismantling facility. • Introduces Sharjah’s first public recycling depots. • Recycling Vending Machines are launched.
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• HH Sheikh Dr Sultan Bin Mohammed Al Qasimi visits Bee’ah’s Waste Management Centre. • Material Recovery Facility inaugurated. • Launches Bee’ah School of Environment. • Confidential Document Destruction & Recycling service introduced. • Tyre Recycling Facility (TRF) is opened.
2012 • Launches the UAE’s first Residential Recycling Programme. • Collaborates with the American University of Sharjah to develop the Gulf Ecosystem Research Center. • Establishes an office and introduces services in the emirate of Dubai. • Builds a car shredding and recycling facility. www.cbnme.com
2013 • Launches the Sharjah Leadership Program, in collaboration with the Sharjah Tatweer Forum. • Participates at the Gulf Environment Forum in Riyadh. • Tandeef introduces a new range of electricpowered vehicles, ‘zero emission’ mobile equipment, and the region’s first solarpowered boats. • Bee’ah becomes the first waste management company in MENA to adopt SAP mobile-enabled solutions. • Partners with Nespresso to undertake capsule recycling programme.
2015
• Signs deal with Chinook Sciences to build the world’s largest, gasification, waste-toenergy plant. • Unveils revolutionary new headquarters at the World Future Energy Summit. • Reveals an innovative solar power project to be set up at Bee’ah’s landfill site. • Emaar awards Burj Khalifa contract to Bee’ah. • Rolls out high-tech Air Quality Monitoring Network.
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2 0 14 • HH Sheikh Dr Sultan Bin Mohammed Al Qasimi visits Bee’ah’s Waste Management Center (WMC) and issues instructions to build a waste-to-energy plant and new headquarters for Bee’ah. • Launches the revolutionary ‘You Call, We Haul’ service. • Introduces the world’s most powerful machine in the car shredding and scrap metal facility.
2016
• Enters into partnership with Masdar to develop new waste-to-energy projects. • Signs agreement with Tadweer to deliver waste management solutions to Abu Dhabi. • Signs MoU with Jeddah Environment and Sustainable Development Company. • Hosts contract award announcement ceremony for Bee’ah’s new headquarters. • Rolls out Wi-Fi bins in Sharjah.
2017
• Announces decision to form a joint venture with Masdar, called the Emirates Waste to Energy Company (EWEC), to establish waste-to-energy projects across the Middle East. • Holds the groundbreaking ceremony for the EWEC’s first facility, the Sharjah MultiFuel Waste to Energy facility. • Forms partnership with Shurooq, Attero Recycling India Ltd., and GII to build largest electronic recycling facility in the UAE. • UK Export Finance extends support to landmark headquarters through historic agreement. • Holds topping out ceremony for Bee’ah’s iconic HQ. • Signs an agreement with Antonio Citterio Patricia Viel to design the interiors of the HQ. • Launches new venture Evoteq and its initiatives, EvoGulf and Smart Track, to facilitate digital transformation. • Announces the nationwide expansion of the BSOE and the launch of the Environmental Excellence School Award (EESA). Logistics News ME | March 2018 | 27
C o u n t ry F o c u s
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Saudi Arabia is inarguably an economy worth keeping an eye out for— experts review the freight forwarding section of the booming industry By Mehak Srivastava The geographical location of the Kingdom of Saudi Arabia has been very favourable towards its logistics industry. Being situated at the crossroads of Asia-Europe and AsiaAfrica, it has turned into a key hub for global investments. The government has plans to increase capacity at Jeddah and Dammam airport, leading to rise in the logistics and warehousing market of the country, as more number of cargo units can be transported through these ports. Furthermore, the planned rail expansion in the country will allow easier transportation within the 2,150,000sqkm Arab state. “The government has invested billions to develop the country’s logistics infrastructure,” says Husam Ramzi Shakhshir - Central Province - regional manager at Almajdouie Logistics. “They are continuously working to improve export, import, and customs clearance processes, which makes it easier to do business worldwide. It has also amended some rules to expedite the time it takes to clear shipment from ports.” The Saudi Vision 2030 was announced
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in April 2016 and represents Saudi Arabia’s roadmap to diversify its economy and address the challenges brought by low global energy prices. In June 2016, the National Transformation Program 2020 (“NTP”) was launched by the Saudi Government, as part of the implementation of the Saudi Vision 2030 with the aim of meeting interim targets by 2020 through various strategic initiatives across 24 Saudi governmental bodies. Strategic goals include the creation of a regional logistics hub with completed and linked internal and cross border infrastructure, and developing the retail and trading sector with a view to creating a million jobs through the easing of foreign investment restrictions. Matthew Luckhurst, vice-president—liner, at Bahri Logistics, remarks: “There is a large opportunity in Saudi to develop first class and best-in-class freight forwarding solutions for the market. However, the freight forwarding industry in Saudi Arabia is very, very fragmented. Funnily enough, the big international players are not that well-rep-
resented in the local market. The big Saudi trading and manufacturing companies are all doing their own logistics, and that’s not particularly efficient. There’s a lot of ways that you can make the process in the whole of Saudi much more efficient.” Luckhurst adds that Bahri is focusing on the key idea of working side by side with other industry players to ensure better, efficient business. “We announced a joint venture with Bollore, i.e., Bahri Bollore, to handle inKingdom logistics, warehousing, landsize, customs clearance, air freight, distribution, and inventory control, for our big customers. Efficient management of freight forwarding could easily mean 10-15% savings for a customer.” Most freight forwarding companies outsource services to finalise the cycle of import or export. Some use trucking companies to pick up/ deliver goods to clients and others pay customs brokerage firms to clear shipments from ports. However, when companies outsource both services, it increases the overall cost for clients.
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“There’s a lot of ways that you can make the process in the whole of Saudi much more efficient.” Matthew Luckhurst, Bahri
“…cloud-based freight management systems can add tremendous value to the industry in the KSA.” Kareem Naouri, LogistaaS 30 | Logistics News ME | March 2018
Shakshir remarks: “As a complete endto-end logistics service provider with a vast asset-based network, Almajdouie Logistics does it all. We own and operate our own fleet, comprising more than 7,000 vehicles, and have our own brokers at major ports across the Kingdom. This means our clients benefit from cost optimisation and, most importantly, a speedy process with accurate updates because they have a single point of contact. “Before moving any shipment, we make sure that all the required documents are available and on hand for smooth transactions.” The freight forwarding business is rapidly changing in terms of technology too; Katherine Barrios, chief marketing officer at Xeneta, mentions in a 2016 article that competition is on the rise and the expectation to do more for shippers is apparent. As a result, forwarders are turning to technology to assist with all the changes they are facing often linking order management systems to transportation systems to customs systems and so on. Kareem Naouri, chief executive officer at cloud and freight software company, LogistaaS, comments: “KSA is a big market geographically, ensuring that many companies need offices in at least Riyadh, Jeddah, and Dammam, with a strong buying power and fast and reliable internet. Furthermore, a lot of companies are still handling shipments manually, or are using very old soft-
ware. These factors mean that cloud-based freight management systems can add tremendous value to the industry in the KSA.” Barrios’ article further says that with the advent of cloud-based technology in particular, forwarders of all sizes are achieving valuable gains within their supply chains, as data obtained from the technology can be used for such strategic purposes as creating new solutions, expanding trade lanes, and more. LogistaaS offers two key products for the freight industry— the first is a customer relationship management (CRM) solution, which has been designed exclusively for freight forwarders, shipping lines, and nonvessel operating common carriers (NVOCCs), and allows them to manage the entire sales process within their companies, including sales activities, inquiries and offers management, and performance reporting. The second product is the freight management solution, which includes all the features of the CRM, plus modules for managing shipments and invoices, an online portal for the customers of companies using the system, and an integration with 50+ shipping lines and 90+ airlines. Naouri adds: “We are delighted to be seeing an excellent response from the industry, mainly driven by the changing expectations of shippers and consignees. They are becoming an increasingly younger generation that is looking for more transparency
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and digitisation within the supply chain, and they are expecting their service providers (i.e. the freight forwarders) to catch up with this requirement. As a result, many forwarders who are presently handling shipments manually or are using legacy software are looking to automate their processes or upgrade the software they are using. “There has also been a lot of efforts by the government (through the eTabadul initiative) to have more integration between members of the supply chain, including relevant government divisions. We are hoping that one day, LogistaaS can become one of the parties integrated with this platform to achieve the highest possible level of integration within supply chains.” Shakhshir believes that eCommerce also makes a significant impact on the freight business. More people than ever are purchasing goods online from around the world, and although most parts of the transaction happen electronically, the products still need to be shipped to customers using conventional means of transport. Getting these shipments from their country of origin to their final destination can often be a challenging process, and almost always requires freight forwarding. Shakhshir further explains: “Technology has made it easier than ever for customers to receive instant answers to their queries and to check on cargo. Airlines and ship-
ping lines have tracking systems that show the status of shipments, and many customs websites notify users when their shipment is under inspection or released.” Almajdouie Logistics uses a wide range of technology, including vehicletracking systems, installed on all trucks to monitor clients’ goods, and enabling accurate updates. Luckhurst remarks: “Bahri is focused on driving the use of big data to improve our operating costs and predictability of certain market trends. Big data will be an integral part of our businesses going forward, how we manage our fleet, commercials, etc., — we will start using this data to improve our decision making. We organised a big data conference in Dubai last year, to involve the big industry players to discuss how we can better use the data that our fleets produce, to then improve how the industry operates. There are predictions that freight forwarders may no longer be useful as shippers and carriers use technology to automate, improve data visibility, and rate transparency. The lack of a skilled workforce is another pressing issue that the industry is dealing with. “It’s always a challenge to attract the young, brightest out there into the logistics field,” explains Luckhurst. “It’s not an industry that’s very well known or attractive at first sight. But logistics makes up nearly
“They (government) are continuously working to improve export, import, and customs clearance processes.” Husam Ramzi Shakhshir, Almajdouie Logistics 70-80% of all the markets we deal in, making it an integral part of your every-day lives. We are actively promoting the logistics and shipping field in Saudi Arabia through roadshows and programmes, bringing in interns and employees. There is a lack of expertise when it comes to operations, but that’s an industry problem globally. The only solution is to bring in the youth, and to show them that this is their future too.” The ‘Bahri Truck Roadshow’ has made stops at various government agencies and ministries, allowing the entities the opportunity to learn more about the growth story of the Kingdom’s maritime transportation sector, as well as to discover Bahri’s journey through modern and sophisticated technologies integrated into the truck. The roadshow also made stops at universities to introduce students, especially in specialised colleges, to the logistics and maritime sector, and inform them of its unparalleled contribution to the growth of the Saudi economy. The ultimate aim is to attract a fresh, innovative league to the traditional industry, thus improving the overall outlook for the future.
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Food
Taking
As the food industry in the GCC continues to flourish, it calls for better, proficient logistics; experts from around the region offer their input on the advancing sector By Mehak Srivastava
a big bite Presented by
I
n a 2015 report published by Irish consultancy Farrelly & Mitchell, the GCC’s food logistics industry was deemed to be “lacking” as compared to developed markets like North America, Europe, and the UK. In the words of the report, “the global food supply chain has evolved and become ever more efficient— generally the opposite is the case in the GCC. The UAE is the sole exception, with food logistics forming a core component of the logistics industry and some well-established large distributors catering to the retail food sector”. However, the region has gradually picked up a transformative pace. Leading manufacturers have flocked to Saudi Arabia and Kuwait, and of course, the UAE, to set up regional headquarters and distribution centres. Growing transportation and infrastructure facilities, favourable tech-acceptance, plus the rise of local experts in the field of freight handling, warehousing, packaging, etc., have made the GCC—and the Middle East and North Africa region, a very tempting business venture.
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Alpen Capital’s GCC Food Industry Report 2017 signals a steady 4.2% growth in food consumption in the GCC. Rohit Walia, executive chairman at Alpen Capital, remarks: “The GCC food sector is set to grow at a sustainable and balanced pace. Despite a recent slowdown in the backdrop of sluggish economic conditions, factors like favorable demographics, changing dietary habits and preferences, rising tourist arrivals, increasing penetration of organised retail formats such as hypermarkets and supermarkets, drove the consumption growth.” At the recently held Gulfood, Dubai Chamber of Commerce and Industry held a briefing, revealing that the UAE’s food and beverage (F&B) sector is expected to record steady growth over the next four years. The growth falls in line with the country’s fast-growing population and increasing consumer demand for halal, organic, and specialty food products. According to recent forecasts from Euromonitor International, fresh food sales in the UAE are projected to reach AED28.9bn this year, and grow further to hit AED34bn
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by 2021. Within the fresh vegetables category, AED6.2bn worth of sales are expected in 2018, and this figure is seen to rise further to AED7.4bn in 2021. Hassan Al Hashemi, vice president of International Relations at Dubai Chamber, noted that more food brands and products, franchises and restaurants are entering the local market, while international manufacturers are increasingly making Dubai an integral part of their expansion strategies. He pointed out that there is strong interest among companies from Eurasia, Africa, and Latin America, that are keen to cooperate with Dubai on food security and use the emirate as a re-export hub to reach surrounding markets. Mark Geilenkirchen, CEO of SOHAR Port and Freezone, indicates positive growth in the Sultanate of Oman too. He remarks: “Indeed, Oman statistics note that the local food and agro industry has witnessed a growth of 5.4% as of September 2017; standing at OMR390.3mn, as compared to OMR370.2mn in September 2016. Oman has also remained active in consolidating its food security by increasing domestic production. The growing contribution by the local agricultural sector aims to account for 3.1% of Oman’s GDP by 2020, an increase from only 1.6% in 2015.” Increased consumer demands naturally put pressure on the logistics infrastructure; organisations must remain flexible and ready to
implement change. Alain Kaddoum, general manager at Swisslog Middle East, comments: “The food industry is changing fast with new products, convenience meals, organic foods, and exclusion diets. Regulators and consumers want to see full farm to fork traceability.” A key challenge emerges in the form of facilities available; companies are keen to set warehouses as close as possible to city centres, ensuring quicker distribution and turn-around times. “One of the trends sweeping through the food and agro industry locally in recent times has been the increase demand for fresh and healthy foods,” says Geilenkirchen. “As a result, cold storage options need to suit these trends with industries investing heavily in carefully monitored temperature-controlled storage. It is vital to ensure products are hygienically stored, to maintain freshness and quality. These recent changes have also indirectly benefitted the industry with cost savings as product waste has decreased, whilst at the same time increasing opportunities for expansion.” Demand for frozen foods has also been rising, and there is a growing interest in the cold storage market. Significant investments are necessary for setting up a refrigerated warehouse business; the cold chain operator must make up significant volumes to attain the break-even point in a required period. As a result, the growth of the cold chain services gives way for the development of the international retail market.
“We automate the company’s manual storage, distribution, and order picking processes. This keeps employees out of the deep freeze, improving safety, speed and accuracy.” Alain Kaddoum, Swisslog Middle East The typical challenges of running a warehouse are magnified in the deep-freeze environment. It’s hard on staff and equipment. But what if you could ensure uptime whilst minimising costs? Kaddoum answers: “We take a goods-to-person approach over person-to-goods picking. We automate the company’s manual storage, distribution, and order picking processes. This keeps employees out of the deep freeze, improving safety, speed and accuracy.” Swisslog offers Cold&Controlled solutions for material handling, order fulfilment, and inventory control, to reduce risk and complexity. It gives 99% uptime due to reliable automation concept, thus reducing labour cost and maximising throughput by guaranteed fresh food delivery to end-customers. The client has better control over the cold chain due to food traceability. More so, as demand grows, floor space becomes limited and invaluable as well; an automated system like that offered by Swisslog, uses high-density storage, stacked vertically or multiple-deep, optimising warehouse floor
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Food
“By integrating all of those people in the same place, you’re going to reduce working capital, and increase freshness and efficiency, and everyone wins in this cycle.” Rayan Qutub, King Abdullah Port space. It also decreases energy costs from cold lost through the roof. “The latest changes within the food industry have led to increased performance requirements,” says Kaddoum. “Smaller batch and order sizes are changing the way warehouses operate. It has become obvious that the increasing speed and complexity of logistics processes can only be managed with a high degree of automation. Thus, innovative robot and Industry 4.0 technologies in particular promise outstanding potential for the future.” To boost Oman’s food security and promote investment in the sector, a state-ownedenterprise, Oman Food Investment Holding Co. (OFIC), was established in 2012. It is mandated to promote Oman’s food security, through partnerships with government agencies, private operators, and investors. OFIC aims to boost Oman’s food security and economic well-being by investing in domestic and international food production, in part-
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nership with food companies, investors, and other stakeholders. Aligning to this national objective, SOHAR has recently established a new Food Cluster, adjacent to a Hutchison operated 1.5 million TEU container terminal. The $170mn cluster combines the region’s first dedicated agro-bulk terminal with flour and sugar mills, silos for grain storage, as well as the infrastructure for downstream food processing, packaging, and specialised food logistics. The silos are being built in line with the food security strategy of the Sultanate. In the near future, additional food production businesses are set to join SOHAR, so it is only a matter of time before the Food Cluster has a range of downstream and upstream businesses within the adjacent SOHAR Freezone. The dedicated terminal features remote-controlled quay cranes and 450 reefer plugs, and will be equipped for an initial throughput of 1.6 million tonnes/year. The cluster will also
be able to offer tailor-made warehousing and cool storage solutions for investors. This combination of food storage facilities; available packaging materials from a $6bn plastics facility for PET, due to open by 2020, as well as available steel and aluminium feedstock, and world-class logistics, makes SOHAR an attractive option for investors looking for the perfect Middle East hub. “There is great potential for food and agro related industries within the SOHAR Freezone,” remarks Geilenkirchen. “Given the location of the port in the region and the continued development of logistic companies, mainly with regard to warehousing and storage space, SOHAR continues to build a reputation for itself as a key logistics hub and distribution centre, both within Oman and in the region. This will support the development of agricultural production and local value-added services, carrying with it the potential to assert greater control over food prices and food security, and create new job opportunities.”
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“The growing contribution by the local agricultural sector aims to account for 3.1% of Oman’s GDP by 2020, an increase from only 1.6% in 2015.” Mark Geilenkirchen, SOHAR Port and Freezone Transportation is another key factor in food logistics, especially when dealing with perishables like fresh produce, dairy, and poultry. Maintaining right temperature conditions and ensuring the product reaches the end-consumer in the right condition is imperative. Rayan Qutub, chief executive officer at King Abdullah Port, remarks: “Food is a massive source of trading in the GCC, and we have always been proactive in how we look at the food sector, especially in terms of integrating the supply chains, from the source to the end consumer. “It’s important to be quick and integrated. For example, we bring in grains, milk, manufacturers and processors, we’re bringing in the distributors, and we’re even bringing in the big retailers to form hubs not just in King Abdullah Port, but in the surrounding 55kms of logistics space. By integrating all of those people in the same place, you’re going to reduce working capital, and increase freshness and efficiency, and everyone wins in this cycle.” King Abdullah Port plans to launch the Ro-
Ro terminal in 2018, and further expand the bulk terminal. They’re also keen on increasing the imports-exports to and from the port, transshipment, and aim to offer more logistics solutions, both bonded and un-bonded. Transportation has further been transformed by the rise of interest in technology services like drones and autonomous trucks. “With the consolidation, the distribution channels will be challenged and optimised,” comments Kaddoum. “Hopefully by a higher degree of automation. The F&B industry needs logistics systems designed to deliver increasingly smaller order quantities on a firm, fixed delivery schedule. Delivery speed is also a key-criteria when it comes to shopping. Goods have to be picked and shipped in a shorter time frame to customers now. Geilenkirchen mentions Oman, like other GCC states, is also experiencing rapid growth in eCommerce, which in turn, will increase demand for modern warehouses with advanced IT and digital solutions. Paperless customs
clearance, cargo and container tracking, and advanced cold chain transportation are some of the areas benefiting from the increased use of technologies. “With regards to long haul transport, the impact on the sector is a little less pronounced,” notes Geilenkirchen. “Aside from advancements in eCommerce and faster customs clearance, cargo and container tracking, most recent technological advances globally have been focused on safety and alternative fuels. However, as with most cutting-edge technological development, their practical implementation is limited by the cost of its implementation and available infrastructure. As a result, diesel is likely to remain the most practical powertrain choice for heavy and large goods vehicles for the foreseeable future. However, hybrids and alternative fuels will begin to offer greater choice in the next decade or so. In the meantime, diesel powered vehicles will continue to become more efficient and burn fuel cleaner.”
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Trucks
Reliability doesn’t r e s u lt f r o m making copies MAN Truck & Bus Middle East tells buyers they are risking their businesses if they buy fake parts
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uying cheaper priced spare parts may seem tempting, particularly when the business environment gets tougher, but you could be putting drivers and other roadusers in harm’s way. Non-OEM parts are not subject to the same rigorous testing or supply chain management procedures of their pricier authentic counterparts, leaving your company prone to increased incidences of faults at best or, in the worst-case scenarios, at risk of causing costly and potentially dangerous accidents. Unfortunately, the Middle East market is vulnerable to the importation of fake or counterfeit automotive parts. Recent research by global black-market analyst, Havocscope, estimates the value of fake or counterfeit parts in the Middle East to be worth $1bn. Other estimates suggest
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the figure could be as high as $2bn. The region is also open to exploitation by traders operating in the so-called grey market. As the name suggests, this is a murkier aspect of the global trade of auto-parts where seemingly authentic parts are distributed via non-authorised dealers. The grey market promises considerable discounts on parts that can enter into the region unsuitable for the harsh climate and are often poor imitations of the real thing. Use of untraceable grey market parts can also affect the future resale value of a vehicle – a critical consideration for all fleet owners. MAN Truck & Bus Middle East always recommends that its customers opt for its own range of MAN Genuine Parts. Franz von Redwitz, managing director,
MAN Truck & Bus Middle East, says: “Whoever decides on a truck or bus/coach from the MAN brand associates maximum expectations of quality, performance, safety, and longevity with the decision. Justifiably, as MAN repeatedly occupies the top spots in national reports (for example, the TÜV report for Germany) in the category of ‘lowest percentage of faults’.” He adds: “The aim of MAN is to provide the absolute best in quality when it comes to Genuine Parts, as in all other parts of its business, so that customers’ vehicles are not only safe and efficient to drive but will retain their value. Always offer your customers MAN Genuine Parts to ensure we fulfil our promise of quality and to maximise the service life of customer vehicles.”
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“MAN provides the correct part first time with quality customers can trust.” Dr. Richard Brown, MAN Truck & Bus Middle East’s head of after-sales
MAN Truck & Bus Middle East acknowledges that there is no doubt that non-OEM parts will cost less compared to original parts but, according to MAN Truck & Bus Middle East’s head of after-sales Dr. Richard Brown, these lower prices can usually only be achieved by cutting corners in terms of quality and safety standards. “This is because grey market manufacturers tend to get MAN Genuine Parts duplicated by unnamed producers in low-wage countries,” he explains. “In most cases, these producers will not have an in-depth understanding of the specifications and requirements in relation to the Genuine Parts. It is therefore highly unlikely that parts will have been subjected to quality and endurance tests, constituting a safety risk for the vehicle and driver.
“All these mentioned checks and approvals are not done by aftermarket companies which try via reverse-engineering and use of lowerquality materials to approach customers.” As a globally operating OEM vehicle producer, MAN Truck & Bus works exclusively with recognised suppliers worldwide, who manufacture their parts subject to its own demanding specifications. Spare parts only get an MAN item number once they have undergone and successfully completed MAN endurance and laboratory tests. As such, only a MAN genuine part can guarantee the perfect fit, the best quality, as well as maximum efficiency and service life. For this reason, MAN service and parts-outlets work exclusively with MAN Genuine Parts.
Dr. Brown remarks: “With MAN Genuine Parts it is not trial and error, OEMs know every part that every vehicle was constructed with. MAN provides the correct part first time with quality customers can trust. All MAN Genuine Parts are backed with an international spare parts warranty, due to the rigorous quality controls MAN Genuine Parts are monitored under. Genuine Parts are designed specifically and manufactured precisely for specified vehicles, this ensures that the installation of these parts is simplified and provides confidence of a long service life.” Customers’ total cost of ownership can be controlled easier by utilising its extensive range of Genuine Parts. They know they are receiving exceptional state-of-the-art quality; certified safety; security of investment in vehicle; driving safety and purchasing confidence (with manufacturer’s warranty); high reliability; and accuracy of fit. Dr. Brown concludes: “Indeed, each MAN vehicle is an intelligent investment which always benefits customers in the long term. However, it is still possible to increase the value retention and efficiency of this investment once again. Thanks to the comprehensive 2-year MAN Genuine Parts and Service warranty (MAN is the only company to offer it in the region), downtime can be significantly reduced, and uptime will be increased.”
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T r a n s p o rt
Positive drive
The Roads and Transport Authority of Dubai continues its stride in the forward direction; officials comment on the organisation’s expansion plans for Dubai By Mehak Srivastava
RTA, Dubai Police discuss management of traffic accidents, safety of transport means
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he Roads and Transport Authority (RTA) of Dubai has been executing, managing, and enhancing transport and traffic projects in the emirate since its inception in 2005. With exemplary public transport services such as the Dubai Metro and Dubai Tram to its credit, and its drive to incorporate sustainable and technologically advanced features into the heart of Dubai, the organisation
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has received plenty of praise and accolades for its achievements. We speak to RTA officials to gain a better understanding of the current and upcoming plans of the organisation, especially with the advent of Expo 2020. Dubai Metro The Dubai Metro was launched as part of a comprehensive strategy which aims to increase
the share of public transit to 30% by 2030. RTA has developed a Rail Master Plan, which defines future rail routes required to serve the growth and developments in Dubai. Future plans for Dubai Metro include the improvement of the current service, as well as the development of new extensions; Route 2020, currently under construction, will connect the Dubai Metro Redline from Nakheel
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Harbour and Towers Station to Expo 2020 site (in Dubai South District), with an additional 15km of tracks and seven new stations. The line will be operational in 2020, serving existing and future developments beside the Expo site along the proposed route. An additional 50 new trains will be added to Dubai metro fleet by year 2020, to cater to the Expo 2020 requirements and to increase the frequency of the current metro services, which will help in providing better and efficient public transport facilities. Other planned metro-related projects include the Green Line Extension which is going to extend the current services of Dubai Metro Green Line to new developing suburbs; namely the Lagoons, International City, Silicon Oasis, and Academic City. Another key development includes extending the Red Line from Rashidiya district to the Mirdif area. Meanwhile, RTA is currently updating the existing Dubai Rail Master Plan for rail projects required to serve the developments in Dubai for the next 20 years. Road transport RTA has registered rapid progress in improving the quality of public transport in the emirate of Dubai since its inception in 2005. In 2018, RTA aims to continue to create new links, expanding the network coverage, and alleviating crowding and increasing capacity on high performing routes. It also plans to optimise the resource utilisation in line with the demand pattern. In addition, major projects such as the Share Mobility Master Plan (SMMP) and Bus Rapid Transit (BRT), aim to identify the increase in bus services to correspond with population growth and travel demand. Other strategies include introduction of additional exclusive bus lanes to reduce the travel time and enhance the appeal of public transport; linking all new developments with bus routes; improving modalintegration; and enhancing the reach and quality of public transport product information. Comprehensive public transport plans are being worked out to efficiently cater to the travel demand estimated to be generated during Expo 2020. Bus services have been calculated to support the extension of Red metro line to Expo 2020 venue, including dedicated bus services from strategic locations in the city to the event venue. Furthermore, enhancement of feeder bus network between metro stations and neighborhoods, and high-frequency shuttle buses between Expo metro station/parking lots and various locations within the venue will help fa-
cilitate easy movement for all visitors. Strong taxi presence at hotels housing Expo delegates/ exhibitors and visitors, plus exclusive bus lanes will save travellers time to and from the site. There are also plans to purchase a new bus fleet and construction of new depots to accommodate the expected increase in demand, to be used in the network expansion in the future. Dubai Water Canal The Dubai Water Canal is one of the most important tourism projects in Dubai, transforming the landscape and features of the emirate, which has established itself as a shining example for cities around the world. This landmark is expected to attract more than 30 million visitors per year. Dubai Water Canal project contributes to upgrading the social infrastructure of the emirate of Dubai, in terms of quality public health of the community, offering opportunities for leisure, attracting millions of visitors, both residents and tourists, and adding value to the surrounding areas as well as breath-taking views. The 3.2km canal extension ranges 80-120m in width and cuts through Dubai’s main artery, the Sheikh Zayed Road, across Safa Park and into the residential Jumeirah district, eventually meeting the Arabian Gulf. This adds 6.4km of waterfront and creates 80,000sqm for public space and facilities, plus a 3km running track, 12km cycling path, and a boardwalk with smart lighting utilising LED lights— a first for
a Dubai road project, which has resulted in nearly 33% lesser power consumption. There is also a mechanical waterfall, where the canal meets the Sheikh Zayed Road Bridge. This motion-operated cascade pumps water through the bridge in a constant flow, visible from the boardwalk, and can be switched off when a sensor detects a boat nearby. This is the first time such a water feature has been implemented in the GCC. Five pedestrian bridges are available— including three across the canal with a unique design— allowing public movements to either side of the canal at key points, giving photographers and viewers the opportunity to admire water vessels passing by below. A man-made peninsula, formed at the end of the canal, will serve as an extension of Jumeirah Beach Park, adding a kilometre of sandy beach and increasing the recreational activity space in the area. The Dubai Water Canal has opened up new marine transport options using the Dubai Ferry, Water Taxi, Water Bus, and Abras, connecting the historic areas of Deira and Bur Dubai through the extended waterway of Dubai Creek, Business Bay, and Dubai Water Canal. At the recently held Dubai International Boat Show, RTA introduced the newly air-conditioned abra. RTA intends to turn the waterway into a firstclass marine transport hub, with five stations serving six million passengers annually. Four Mattar Al Tayer, director-general and chairman of the Board of Executive Directors, speaks at the World Government Summit 2018
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the latter’s fleet of vertical take-off and landing autonomous aerial vehicles (VTOL AAVs). A dominant player in the $1tn blockchain airspace market, VIMANA has designed a breakthrough, patent-pending technology, that allows the company to combine capabilities of an airplane, helicopter, and unmanned aerial vehicle (UAV) on a single platform, and use blockchain technology to operate its aircraft and enable blockchain applications in the air at the same time. VIMANA’s fleet of VTOL AAVs are a marvel of aerospace engineering, designed to be localised by “smart cities” (like Dubai) via licensing deals, to enable local mass production.
Autonomous pods launched at World Government Summit 2018
additional stations are available in the Business Bay Canal, and one million riders are expected to use Dubai Canal’s marine transport by 2020. The future is now One of RTA’s most recent drives—and one that has been garnering plenty of attention— is autonomous vehicles. At the recently held World Government Summit 2018, RTA launched the tests of the world’s first autonomous pods. The autonomous pods are designed to travel short and medium distances in dedicated lanes. They can be coupled in 15 to 20 seconds or detached, depending on the destination of riders, in five seconds. The autonomous pods are fitted with cameras and
electromechanical technologies, and each pod measures 2.87m in length, 2.24m in width and 2.82m in height. It weighs about 1500kg and has a capacity to accommodate ten riders (six seated, four standing). The autonomous pod is fitted with a battery that supports three hours of operation; which is chargeable in three hours. Its average speed is 20km/h. The autonomous pods have three protection systems in order to ensure full control and avoid crashing into any body. The main system comprises 3D cameras, and the second one is a standby system based on ordinary cameras, and the last is operated manually by the operator. RTA is also in talks with VIMANA, a blockchain airspace category creator, to take forward
Community takes precedence RTA attaches great importance to road safety, given its vision of safe and smooth transport for all. It aims to enhance transport and traffic safety to reduce accidents and fatalities. RTA has already taken steps to reduce the speed limits of roads that witness elevated traffic volumes. RTA works closely with Dubai Police, as well as other federal authorities, to reduce the occurrence of accidents, including hosting training programmes. RTA is also actively involved in social and humanitarian causes. One of their ‘Day for Dubai’ initiatives included ‘Kiswat Khair’ (fine clothing), aimed at grouping efforts of RTA volunteers to recycle discarded clothes of the organisation’s parking attendants, bus drivers, taxi drivers, and technical cadres. Volunteers will sort out, adjust, and repair these clothes, and iron them to make them presentable. They will be distributed in collaboration with Red Crescent societies and other concerned parties to those in need.
RTA awards 66 excellent instructors, lecturers at Dubai’s driving schools
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Interview
E m b r ac i n g
y g o l o n Tech Abhinav Chaudhary, COO at Truxapp, discusses the goals, strategies, and successes of the trucking app which is set to transform the global road freight world
What is the core principle behind Truxapp? Truxapp is a technology enabled logistics, venture re-defining the road freight transport landscape. Truxapp is a B2B, asset light model, which uses cutting-edge technology to aggregate demand and supply to make businesses reliable, efficient, and economical for all parties in the eco-system including clients and transporters alike. The goal is to create an eco-system where aggregated demand and supply will work in tandem to build a sector which will be known for its consistency, reliability, transparency, precision, and an innate ability to create value for its partners; a suite of apps that address the existing problems in the logistic space and make it more automated and data driven. We at Truxapp strive for excellence in everything we do. Our quest is to keep things simple, quick, and economical without compromising
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quality, and giving the most user–friendly experience to our logistic services user. What are the key industries that Truxapp caters to? Truxapp is sector and industry agnostic. As Truxapp eradicates the pain points, including significantly reducing road freight costs and almost de-facto becoming a transport arm of any business, it is being well received by all industries, including the ones that may face a slow down. Being ‘asset light’ also helps Truxapp not depend heavily on any one industry, and as its solutions and services practically cover the complete market needs, it has comfortably hedged its risks and also allowing for a rapid scale up. The oil and gas market, along with the infrastructure and other construction projects, seem to be seeing some positive movement, allowing some lucrative project cargo business for us.
Otherwise it is business as usual for Truxapp with its growing list of clients in (including but not restricted to) FMCG, pharma, building material, commodities, and various verticals serviced through large 3PL companies. What kind of market response has the company seen since its entry into the UAE in 2017? Truxapp has had a phenomenal response. Within a short period, Truxapp is emerging as a market leader in the UAE, and this has been primarily due to the advanced Truxapp technology and a team of hard core logistics professionals with an aggressive entrepreneurial attitude. Truxapp has a healthy list of blue chip clients, which is further growing at an astounding rate. This covers practically all sectors and industries, from SMEs to large MNCs, which include, the FMCG sector, pharma, building materials, food and beverage, packaging, and
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local and cross border distribution, among a long extensive list. Having developed our own proprietary technology, this gives us and businesses much more flexibility to customise and adapt services – on demand as well. Through the Truxapp platform, businesses can effectively use the resources to collect valuable data, predict production and delivery schedules through customisable dashboards, resulting in enhanced market reach and customer satisfaction. These value-added services give us a unique advantage in the sector. More importantly, Truxapp’s ability to drastically reduce costs because of bringing efficiency on the client side and reducing down time for the transporters including with enabling reverse haulage is being very well appreciated and embraced. How does the app stand out amongst local competitors? We have reasons to believe that we have the first movers advantage in this sector. Reasons for stating this is that the Truxapp technology is very advance, comprehensive, and proprietary, which is is completely built and managed in-house. Because of the extensive resources dedicated to R&D, it is also always evolving. The competition is either using off-the shelf generic technology products or it does not have such a comprehensive tech product which has been developed over years, understanding and addressing the pain points of the sector and is extremely holistic, covering and positively affecting all stake holders and the complete order life cycle. Secondly, Truxapp is the real aggregation model; none of the competitors have a real aggregation model. They are operating either as load boards or are using client facing cosmetic off-the shelf technologies. Today we have over 25,000 commercial vehicles listed and growing. Due to this aggregation of supply, and thus the ability to real-time communicate with the complete supply side available in the GCC, enables Truxapp to operate in different industry verticals with various flexible models including, adhoc, short and long term lease, short and long term rate contracts. This ability is the only way to organise the un-organised and scale up. Last but not the least, Truxapp is backed and operated by an experienced team comprising professionals, who have the knowledge and track record of delivering their expertise to businesses daily, by managing the complexities of the logistics sector and supporting them to
If adapted adequately and appropriately, technologies such as Truxapp actually complement rather than act as a threat. It streamlines the operations of the client as well as the transporters, leaving a lot of cumbersome work to Truxapp technology, which they would otherwise get weighed downed with. It’s a win win solution for all professionals to develop and work in an extremely productive and ethical eco system which benefits all.
Truxapp is backed and operated by an experienced team, comprising of professionals who have the knowledge and track record of delivering their expertise to businesses daily.” meet their customers’ expectations. This is key, as the sector matures to become more receptive and adaptive to technology, a lot of off-line effort and intelligence goes in to the venture where solutions to pain points are evaluated, tested, and if qualify as the appropriate and adequate solution, built and programmed to be part of the Truxapp technology solution. What are the challenges involved in incorporating technology in a largely traditional industry like logistics and transportation? Technology brings in serious transparency. Ironically, this is the one single factor which is the biggest challenge, as people are either insecure and/or realise that once transparency sets in, there is a clear and easy visbility to stakeholders and top management at almost real time.
What are the key trends in road freight to keep an eye out for in 2018? Two important trends which we are closely following are autonomous vehicles and blockchain. Our team is already brainstorming and working on idea implementations as far as blockchain is concerned, but autonomous vehicles is something which is more complex. Although the UAE government is rightly and aggressively trying to adapt to autonomous vehicles for reasons, which also include and support enviormental issues, there seems to be a gap between the wish versus feasibility to execute as road freight still remains a largely traditional industry with low levels of technology. We forsee a more phased out approach where companies like Truxapp will set the tone and bring the industry to a level where autonomous vehicles can and will be deployed. What other markets in the region does Truxapp plan to expand its services to? Truxapp is already in the process of setting up its presence in the GCC and plans to expand to the greater MENASA region as soon it is able to set up a strong foot hold in the primary market of the GCC. Truxapp is already successfully deploying cross border vehicles with its shipments to Oman, Bahrain, Kuwait, and Saudi Arabia and, this in turn, will speed up the set up within the GCC. At the international holding level, Truxapp is already extremely successfully operating in India for the past three years and the global team is already evaluating the feasibility of spreading its operations to South East Asia. Because of Truxapp’s its experience in serving port movements, Singapore and Indonesia would be the first in that region. For me personally, I look forward to setting up Truxapp in Hong Kong and China, a place that I have lived and worked for over a decade. It is a tough, but the biggest and most lucrative market.
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Event review
Breakbulk Middle East Experts from Abu Dhabi Ports, Agility Logistics, Bahri Logistics, and GAC give their insights on the current market trends in the breakbulk sector
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eld on February 6-7, 2018, at the Abu Dhabi National Exhibition Centre, Breakbulk Middle East 2018 focused on the challenges and opportunities in the region’s project logistics and breakbulk sector. The event saw 70 exhibitors, representing the end-to-end value chain for the transport of oversize cargo, as well as 30 speakers and nearly 2,000 attendees. In addition to the exhibition, the event offered educational seminars— all of which were free for attendees—as well as networking opportunities, including luncheons hosted by leading shippers. Officially opening Breakbulk Middle East, Dr Eng Abdulla Salem Al Kathiri, director general of the Federal Authority for Land and Maritime Transport, said: “The UAE is one of the most developed maritime countries in the region, both economically and commercially, providing an environment that has gained investor confidence and is able to support a diverse range of major business activities across the maritime sectors, in turn contributing to global confidence in the UAE economy.” Key topics of discussion for panel discussions and seminars included handling projects in post-conflict regions, the evolving supply chain, and online shipping platforms. In attendance were a number of key suppliers, logistics providers, ports, and investors from around the region, including Abu Dhabi Ports, GAC, Agility, DP World, Bahri Logistics, King Abdullah Port, Al Faris, ASAS Transport, and LogistaaS. Abdulkareem Al Masabi, executive vice president, Ports, at Abu Dhabi Ports—the host port for the event— remarked: “Breakbulk Middle East brings the region’s foremost ex-
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perts in the industry together with the leading shippers, carriers, freight forwarders, transport specialists, and related service providers to discuss opportunities and challenges in the specialised Breakbulk field. “Breakbulk and the project cargo industry are vital to the infrastructure development that the UAE and governments across the region are delivering as they look to build more diverse and integrated economies. This industry plays a vital role in accomplishing the infrastructural development that governments in the GCC have envisioned.” According to Al Masabi, the UAE is one of the top 20 countries in container port traffic, and its strategic location has enabled it to acquire the lion’s share in total container and cargo movement in the region at 60%. The UAE accounts for an estimated 30-35 % of total
regional maritime sector investment at $66bn, with maritime and shipping trade industry accounting for 90% of the global trade market. “Abu Dhabi Ports has achieved notable progress and growth in all its operations,” added Al Masabi, “especially in the general cargo and bulk business sectors. Last year, we handled 18.628 million tonnes, the highest ever record since its inception in 2006. The CAGR of general cargo and bulk in the last five years is 70%, and this year is expected to be another record year.” Al Masabi also believes that Expo 2020 will bring incredible opportunity to the country and its various economic sectors; and where there are opportunities, there is a need for the commodities that are classified as breakbulk cargo. He commented: “The event is anticipated to bring in enhanced economic activity to the
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Breakbulk me 2018 In numbers
70
Exhibitors
1,864 Attendees
I don’t think the (breakbulk) market is doing as well as it should be.” Capt Per Thörnblom, GAC UAE, including construction and infrastructure growth, which again requires increased cargo. We look forward to the impact such events will have on our industry and welcome the challenge to expand horizons for the maritime sector and ourselves.” Matthew Luckhurst, vice-president— liner, at Bahri Logistics, too believes the upcoming development in the form of Expo 2020 and Saudi Vision 2030 will act as definitive propellers in the upward direction. “Being the national carrier of Saudi Arabia, the Middle East and the Gulf in particular are bright spots for us. We are very active in these parts, and we’re doing well. The next five to 10 years look very bright in terms of infrastructure, utilities, and other market segments.” Bahri Logistics operates six multipurpose vessels with 26,000 DWT each on a regular liner
schedule; four vessels connect the United States to Saudi Arabia and major ports in the Gulf, Indian Subcontinent and the Mediterranean, and two vessels connect Europe to Saudi Arabia and key ports in the Gulf and the Mediterranean. The business unit has signed cooperative agreements with partner carriers such as Höegh Autoliners, Liberty Global Logistics, and RickmersLinie, and has introduced full solution breakbulk capabilities, including door-to-door service. “There’s two aspects here,” said Luckhurst, about Bahri’s presence at Breakbulk Middle East. “One is to showcase your capabilities, which is great for branding and positioning yourself in the market, so that people know who you are. Secondly, it’s to meet our customers, giving us a good chance to discuss opportunities, prospects, and issues. We love listening to our customers, which helps in our
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Countries own internal planning, giving them best solutions at the end of the day.” Agility, the gold sponsor at the event, is no stranger to the event; this was their third running year at Breakbulk Middle East. Mohammad Jaber, COO at Agility Abu Dhabi and regional director, project logistics for Middle East and Africa, and Bassel El Dabbagh, CEO at Agility Abu Dhabi, highlighted industry trends, and the rising need to adapt to technology changes. Dabbagh remarked: “Breakbulk Middle East is essentially a dedicated event highlighting the processes and players involving breakbulk cargo, i.e., non-containerised cargo like that in the oil and gas industry, or infrastructure, construction, etc. It is a very important event, uniting logistics players like Agility with carriers and cargo owners.”
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Event review
Jaber added: “Agility has the largest footprint in Middle East and Africa when it comes to logistics. We are here as a market leader for the UAE, achieving more than 10 million freight tonne in cargo in the last decade, plus three million containers servicing the energy sector and infrastructure. Tremendous development and all the government initiatives forces us to be a part of the GCC logistics system. We provide service in 100 countries, with 550 offices under the same umbrella and mindsets. In the last decade, we’ve provided service for nearly a 100 projects within just the GCC, and these were multi-billion projects, with clients like ADNOC, ZATCO, ATCO, and many more.” Agility has recently begin a hub at Khalifa Port in Khalifa Industrial Zone Abu Dhabi (KIZAD), spread out over 200,000sqm. “As per Agility’s Emerging Market Logistics Index, UAE bagged third position after China and India,” mentioned Jaber. “GCC has revealed nearly $288bn worth of capital expenditure, over the next five years. There is huge potential for logistics in the region. As per our reports, there is 4.8% predicted growth in air freight, which also services oil and gas and energy sectors.” Both Dabbagh and Jaber believe technology is impacting logistics, in the form of autonomous vehicles, warehousing and automation, and eCommerce and customer fulfillment supply chain. “Involving the new generation in this industry is very important due to the rise of technology,” commented Jaber. “We try to employ fresh graduates via our training programme, to combine them with our experienced workforce and technology, thus meeting current time challenges.” Agility Abu Dhabi is a part of a civil service programme, where the government has employed a number of people in Agility and its sister companies, to train them to understand and execute logistics in a modern way. Dabbagh added: “Since 2007, things really have changed. We’ve had to reskill, in a bid to adapt to market changes. Your employees need to be reskilled to learn how to work with new technology and to understand new ways of doing things. This is where our training programmes come in, to reskill our labour force.” Jaber also believes that despite the introduction of VAT in the UAE and Saudi Arabia, the market has continued to attract both local and foreign investors to the region. He mentions that hosting an event like the Expo 2020 will bring more opportunities; Agility is closely involved with construction companies to provide expert service when it comes to breakbulk. Captain Per Thörnblom, group project logistics manager at GAC, discussed the completion of a challenging project by his team,
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This industry plays a vital role in accomplishing the infrastructural development that governments in the GCC have envisioned.” Abdulkareem Al Masabi, Abu Dhabi Ports
Bassel El Dabbagh (L), Mohammad Jaber (R)
where GAC transported an underwater restaurant from one location to another. The restaurant, complete with its 13m high stairwell, was moved to the brand-new resort of Hurawalhi in Maldives, from New Zealand. “We were awarded the Project/Heavylift Forwarder of the Year, in the 2017 Global Freight Awards,” mentioned Thörnblom. “It was indeed a real challenge shifting this restaurant, given how there was no jetty or berth on the tiny island of Hurawalhi. We initially carried out echo-sounding and seabed tests, following which we made 3D drawings and planned how we would lift the restaurant out. The loading of the restaurant for different types of ships and lashing calculations were simulated in our software. It took 26 days to transport it from New Zealand to
Hurawalhi; I piloted the ship since we didn’t have any local pilots. “Once there, we lifted the restaurant directly into the water, and set it in its place. The entire project took us a year and a half, from the owner approaching us for the task, to the final fixing of the restaurant into the seabed. From the builders to designers, we were quite a team.” GAC offers key services in the breakbulk industry, from local canvassing and sales, to cargo and claims handling, and weather routing and performance management services. “I don’t think the (breakbulk) market is doing as well as it should be,” said Thörnblom. “The impact of the worldwide economy downturn and the lack of infrastructure investments are being felt in this region, as well as all over the world.”
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1 – 3 May 2018 www.automechanikaDubai.com
The largest international trade exhibition for the automotive service industry in the wider Middle East Some compelling show figures: 1,955 Exhibitors 30,322 Trade Visitors 25 Official Country Pavilions
57 Exhibiting Countries 136 Visiting Countries 38 International Trade Associations
Register online to visit at www.automechanikaDubai.com/Logistics
Viewpoint
Ralf W. Seifert and Richard Markoff believe that to have an immaculate omni-channel experience, knowledge of in-house inventory is vital
T
he term omni-channel is omnipresent in retail supply chain circles these days. It promises an exciting array of consumer choices, but also presents unique challenges to supply chain execution. One of these challenges is surprisingly fundamental and predates the ecommerce era. It is the ability of the supply chain to know the on-shelf availability of the products on offer. That is to say, how much there is of a given product on the shelf in the store. Omni-channel is the term used to describe the interaction with the consumer in a seamless way between online and offline venues and offering multiple means through which to obtain their purchases. It envelopes online orders from
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computer or mobile app, home delivery, clickand-collect in the store and shipping from store locations and is often encapsulated by the ethos of the consumer finding the product ‘anytime, anyplace, anywhere’. Connecting the physical and digital spaces In order for omni-channel to succeed, the retailer must have the capability to identify the inventory levels in the warehouse and retail network and identify the best compromise of order fulfillment cost and proximity to the consumer to satisfy the order, all without causing stock-outs for other consumers. In order to do this prop-
erly, one of the key inputs is the reliability of the on-shelf availability. An omni-channel network that relies on using stores as localised distribution centers needs both the product reliably on the shelf, and also accurate information about the inventory levels. This most basic of fundamentals has proved elusive to retailers. Efficient Consumer Response (ECR) estimates that onshelf stocks out in Europe range from 7-10%. With omni-channel demand now pulling from the shelf stock, this number will likely rise. The consequences of poor onshelf availability can be dramatic. In 2014, Walmart estimated that it was losing $3bn in
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M a r c h 2 018
sales due to empty shelves, driving incoming CEO Doug McMillon to put OSA improvement among the retail giant’s priorities. As damaging as it can be to have empty shelves, the root cause is often that the store inventory count is incorrect. The retailer does not know the shelf is empty, so they are likely not taking rapid steps to resolve the problem. And more crucially, they are promising the omni-channel consumer rapid deliveries they cannot honour, often based on using stores as satellite distribution centers. In its eCommerce battle with Amazon, Walmart is trying to leverage its expansive US store network of over 4,000 doors for clickand-collect and order fulfillment. Amazon has recently bought Whole Foods in part to use its networks of stores to complement warehousebased order fulfillment. Having an unreliable store inventory poses significant risks to the consumer lead time commitment. In-store inventory inaccuracy has even driven one large UK retailer to prepare all of its click-and-collect orders centrally and ship them to the stores for pickup, thus undermining one of the key potential benefits of the store network. Another UK retailer admitted to us that they have so much difficulty identifying shelf stockouts that they use their omni-channel activities to perform zero-stock checks. This retailer fulfils online home-delivery orders directly from store shelves. When an order preparer arrives at a shelf and finds that there is no stock, the retailer corrects the inventory and picks the defined substitute instead. This is helpful for inventory accuracy, but only after an omnichannel customer will not receive the product they have been promised. The growing consumer expectation for accurate information is exposing this weakness in the retail supply chain. Many retailers provide store inventory on their website, both as a consumer service and to steer them to the right store. However, this information might not only be inaccurate, but it is usually updated only once per day, leaving plenty of time to get even more inaccurate as the day goes on. What was intended as a value-add for the consumer ends up being a source of frustration when the consumer arrives at the store, does not find the products and realises they have been misled. The root causes of store stockouts If omni-channel success hinges so critically onshelf availability, it’s worthwhile to look at the root causes. It’s not hard to imagine reasons why the store inventory might be wrong: theft, lost inventory, and misplaced products are always going to be part of the retail challenge. But, per ECR, the most common reasons are
Ralf Seifert is professor of Operations Management at IMD. He directs IMD’s new Digital Supply Chain Management program, which addresses both traditional supply chain strategy and implementation issues as well as digitalisation trends and new technologies.
Richard Markoff is a supply chain researcher, consultant, coach, and lecturer. He has worked in supply chain for L’Oréal for 22 years, in Canada, US, and France, spanning the entire value chain from manufacturing to customer collaboration. wholly within the scope of execution of the retail supply chain: an inefficient store ordering process due to a combination of poor demand plans and suboptimal order planning cycles. Even if the orders were planned correctly, the products might remain stuck in the back room and not replenished to the shelves in a timely manner, often because understaffed stores looking to keep costs down will leave products on the receiving docks overnight. Clearly, the success of omni-channel is linked to having correct information about on-shelf availability and adjusting inventory counts accordingly. Yet actually capturing the availability of stock on the shelves has proved elusive. The most common method is to measure the sell-out POS scans, using the logic that an unusual dip in sales is likely due to a lack of products on the shelf. This approach is appealing for those who would use this information for big data analysis. But it has proven to have limits to its usefulness if the product does not have a high sales velocity. The more expensive approach would be to hire auditors to actually check the store shelves. Major retailers in both the US and UK have recently embarked on collaborative pilots with suppliers with the goal of at least trying to develop an accurate baseline of on-shelf availability. We spoke to one hardware retailer who has staffed key stores with employees dedicated to checking the hundreds of thousands of SKUs in the aisles for zero stock locations. Managerial incentive approaches to drive focus on on-shelf availability have led to unexpected consequences. One retailer told of
the implementation of a bonus program for store managers who maintained high on-shelf availability – at least per the retailer IT system. Store managers then began walking the aisles looking for products with only one unit remaining. They would take this last unit from the shelf and hide it. This would improve onshelf availability, but at the cost of losing the sale of the last unit; certainly an intended outcome for the retailer. The impacts on omni-channel extended beyond overly long lead-time or costs and into poorer online consumer choice. Many eCommerce retailers will inhibit a product from appearing in search results if they know the product is not available. The root causes for poor online availability are more focused upstream with suppliers. The problem is starting to draw the attention of suppliers and is increasing pressure for collaborative solutions. Looking ahead These solutions seem strikingly low-tech in this age of Big Data and Artificial Intelligence. In the same vein as the self-checkout concept of Amazon Go and Alibaba’s Tao Café, new technology approaches may finally provide a way for retailers to measure on-shelf availability and target their efforts to address the root causes. One promising avenue is to use robotics or store cameras, along with recognition software, to report an empty shelf space. Vertical supply chains may help show the way to managing on-shelf availably. Zara and Adidas are two prominent examples of companies that have implemented RFID tags on all their products. This speeds up inventory counts, reduces shrinkage, and can help identify if the products have made it all the way to the shelf. Being vertical supply chains, these companies have not encountered the obstacles other retailers have had in the past when looking to implement RFID: the question of who will pay for the tags. Walmart, despite its enormous influence, famously did not succeed in convincing its supplier base to move to RFID several years ago over cost issues. The advent of omni-channel may change the dynamic. Having accurate data will help the supply chain develop action plans and measure their impacts. One of the hidden benefits of the rise of omni-channel is that will help exert pressure on all the actors to work together on finding enduring solutions to this most fundamental of problems. This will help build the business case for investing in durable, lasting solutions to on-shelf availability. A modern supply chain evolution may turn out to be the catalyst to resolving a classic supply chain challenge. Progress indeed!
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R e p o rt
Report
Lisa Harrington, president, Lharrington group and senior research fellow, Robert H. Smith School of Business, University of Maryland, inspects the growing talent gap crisis in the supply chain industry
From gap to crisis T
he supply chain sector is facing a talent shortage that is quickly escalating from a gap to a potential crisis. The US Bureau of Labor Statistics reports that jobs in logistics are estimated to grow by 26% between 2010 and 2020, while one global study estimates that demand for supply chain professionals exceeds supply by a ratio of six to one. Others put those numbers even higher. “For every graduate with supply chain skills there are six holes to be filled, and it could be as high as nine to one in the future,” warns Jake Barr, CEO of BlueWorld Supply Chain Consulting. The situation is exacerbated by the exodus of baby boomers from the workforce. Some studies assert that 25 to 33% of the current supply chain workforce is at or beyond retirement age, and the backfill pipeline is inadequate to satisfy replenishment demand. Leading companies understand they must act to resolve this situation or face the effects of having the wrong kind of talent to run their supply chains. The potential consequences are worrying – in some industries the talent gap could threaten the ability of companies to compete on the global stage. So, what are organisations doing to address the problem? To find out, DHL Supply Chain surveyed over 350 supply chain and operations professionals in the five major regions of the world. SURVEY RESULTS: HIGH-LEVEL TAKEAWAYS The factor with the greatest impact on the talent shortage is changing job requirements. Today, the ideal employee has both tactical/operational expertise and professional competencies such as analytical skills. 58% of companies say this combination is hard to find. But tomorrow’s talent must also excel at leadership, strategic thinking, innovation, and high-level analytic capabilities.
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High demand is not the main reason for the shortage.” Nearly 70% of survey respondents list “perceived lack of opportunity for career growth” and “perceived status of supply chain as a profession” as having a high or very high impact on their ability to find, attract and retain talent. Only 25% of the survey participants say their company views supply chain as equally important as other disciplines. In contrast, 40% see supply chain talent’s value in a situational context – i.e., either a commodity or corporate asset, depending on the level and position. Leading companies are working on the shortage problem. They are taking steps to create more robust talent pipelines and develop their supply chain workforce – through clear career pathing, education, cultural adaptation,
talent development partnerships, and other means. However, one third of companies surveyed have taken no steps to create or feed their future talent pipeline. A CLOSER LOOK: CAUSES AND EFFECTS Without question, the overall demand for supply chain talent is driving a global shortage. 67% of respondents to the DHL survey cited this as a high or very high factor. But high demand is not the main reason for the shortage. According to the responses, changing job requirements is the biggest single driver behind the shortage. 86% of respondents ranked this factor high or very high, in terms of its effect on companies’ ability to find the right talent. It is relatively easy to find people who are technically fit for jobs – only 10% of survey participants say they have a problem in this area. Finding talent with solid professional competencies is a bit tougher – 27% indicate difficulty. But the real challenge today comes when organisations try to find talent with both sets of attributes. Here, 58% report having had trouble. In terms of experience, entry level people are easy to attract and hire. Middle management is harder to find—46% of the respondents indicate a higher level of difficulty. But executive level beats both, with 73% ranking this category the most difficult. A related survey question asked what variables impact organisations’ supply chain talent sourcing and retention. Interestingly, the top scoring elements on this question all revolved around supply chain’s image as a career. The industry has known for years that it has an image problem. The widespread perception, especially in emerging markets, is this: supply chain is not as “good” a career as one in
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finance, operations, manufacturing, product development, marketing or sales. While the industry has worked hard to change this perception, judging by the DHL survey results, it still has a long way to go. Nearly 70% of respondents list “perceived lack of opportunity for career growth” and “perceived status of supply chain as a profession” as having a high or very high impact on their supply chain talent management endeavours. In a related finding, 59% of survey participants report having difficulty retaining talent. Companies themselves may be part of the problem. Only 25% of the participants say their company views supply chain as equally important as other disciplines. In contrast, 40% see supply chain talent’s value in a situational context – i.e., either a commodity or corporate asset, depending on the level and position. Another issue that may affect acquisition and retention is that organisations appear to struggle with integrating “old” and “new” ways of working. 62% of survey participants report “culture clashes” around such issues as
how talent wants or expects to work, what kind of environment employees are willing to work in, and how they expect to be managed. Finally, despite dire headlines about the lack of a talent pipeline to backfill for the baby boomer retirement bubble, only 37% of the DHL survey pool rated an “aging workforce” as having a high or very high impact on their organisation’s talent management environment. SKILLS AND STRATEGIES FOR TOMORROW Looking to the future, what skills will be required for the supply chain professional of 2020? Interestingly, compared to the competencies valued highly today, future requirements look very different. The primary emphasis broadens to include more strategic abilities. When asked to rank the most important skills a supply chain manager of the future must have, the top three responses were leadership; strategic and critical thinking; and problemsolving skills, creativity, and imagination.
The bad news is that 32% of the companies surveyed have not taken any steps to create or feed their supply chain talent pipeline for the future. In a competitive environment, where human capital provides the intellectual, strategic, and operational excellence that differentiates winners from losers, such inaction seems a risky course indeed. 42% do not have a talent management strategy in place to support their needs over the next three years, and 15% don’t know whether such strategy exists in their organisation. A POWERFUL OPPORTUNITY The supply chain industry has a clear challenge ahead of it in tackling the talent shortage issue. Companies have made progress, but there’s still a long way to go. As such, there are tremendous opportunities for improvement. And the rewards are worth the effort. As a Boston Consulting Group study recently found, companies that excel in talent management increased their revenues 2.2 times as fast and their profits 1.5 times as fast as “talent laggards”.
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Supplier News
Supplier News
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Up d a t i n g y o u o n t h e r e g i o n ’ s s u pp l i e r s
Emirates to acquire additional A380s worth $16bn
Emirates has signed a contract for 20 additional A380 aircraft and 16 options, with the total agreement valued at $16bn, firming up the memorandum of understanding (MoU) announced in January. In the presence of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; and Edouard Philippe, Prime Minister of France, the agreement was signed on the sidelines of the World Government Summit by Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group, and Mikail Houari, president at Airbus Africa and Middle East. During the event, Sheikh Ahmed and French Prime Minister Edouard Philippe also discussed the strong aviation ties between the UAE and France, and the expansion of air services between both countries. Together with the airline’s 101-strong A380 fleet and its current order backlog for 41 aircraft, this new order brings Emirates’ commitment to the A380 programme to 178 aircraft, worth over $60bn. Emirates’ A380 fleet operates
both GE and Rolls-Royce engines, and the airline is evaluating engine options for its latest A380 order. Deliveries are to start as early as 2020. Sheikh Ahmed commented: “This agreement underscores our commitment to the A380 programme, providing stability to the A380 production line and supporting tens of thousands of high-value jobs across the aviation supply chain. For Emirates, the A380 has been a successful aircraft for our customers, our operations, and our brand. We look forward to continue working with Airbus to further enhance the aircraft and onboard product.” Fabrice Brégier, Airbus president Commercial Aircraft and chief operating officer, remarked: “We thank Emirates, HH Sheikh Ahmed, Tim Clark, and Adel Al-Redha for their continued confidence in the A380, which has so successfully transformed air travel in the 21st century. This latest agreement further demonstrates the strength of our valued partnership with Emirates in support of their impressive growth.”
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Descartes acquires solutions provider Aljex for $32.4mn Canada-based Descartes Systems Group, a global leader in uniting logisticsintensive businesses in commerce, has acquired US-based Aljex Software, a cloud-based provider of back-office transportation management solutions for freight brokers and transportation providers. Descartes acquired Aljex for $32.4mn in cash, satisfied from Descartes’ existing acquisition line of credit. Serving freight brokers and transportation providers for over 20 years, Aljex has built a robust platform backed by deep domain expertise. Used by nearly 400 customers in North America to plan and execute nearly three million freight moves per year, the Aljex solutions help customers automate business processes and create electronic documents critical for executing transportation moves. Customers can manage the lifecycle of a shipment from order creation through execution, including real-time track-
ing with connectivity to the Descartes MacroPoint network. Tom Heine, CEO, Aljex, said: “Managing the capacity on trucks profitably while meeting increasingly high customer delivery expectations is a complex task. Our company helps solve the unique problems faced by freight brokers and transportation providers in this demanding environment. These solutions can also be utilised by large fleet operators looking to broker their own excess capacity and improve truck utilisation.” Edward J Ryan, CEO, Descartes, said: “Our company has worked with Aljex for a number of years to provide end-to-end solutions for the freight broker community in North America. We now have an opportunity to fully integrate Aljex into the global logistics network. In doing so, we can provide customers with improved access to track shipments and the ability to better utilise increasingly scarce carrier capacity.” www.cbnme.com
M a r c h 2 018
IBM, DUTECH to launch cloud disaster recovery service IBM and Dubai’s Port, Customs and Free Zone Corporation (PCFC) and its technical arm, DUTECH, announced an agreement to launch a cloud-based disaster recovery service in Dubai. As part of the agreement, IBM will implement an IBM cloud-based disaster recovery as a service (DRaaS) solution at DUTECH’s data centre. The new service will provide organisations in Dubai with cloud-based business continuity capabilities, faster disaster recovery of critical IT systems, and the ability to store its data in-country. The new service will enable PCFC entities and other government agencies, as well as private businesses in Dubai, and potentially, the region, to benefit from a cloud-based disaster recovery as a service. This will help protect them against data loss from their own servers or from other cloud services, and can maintain readiness, without the need to invest in physical space or stand-by hardware. PCFC is a leading global trade and logistics enabler and a government of Dubai corporation which facilitates the advancement of trade and logistics in Dubai. The service will also provide the replication
of critical applications, infrastructure, data and systems to the IBM cloudbased DRaaS environment, enabling recovery from an IT outage within minutes. Sultan bin Sulayem, DP World group chairman and CEO and chairman of PCFC, said: “IT disruptions are inevitable, and they can stem from a number of sources. The new service that we are launching in collaboration with IBM can protect organisations from considerable financial loss as well as irreparable damage from brand reputation. It’s very important to keep abreast of technological advancements in order not only to survive but to thrive and stand out in today’s market. We are embracing this service to sustain and protect the data of our clients and to help other organisations do the same in fulfilment of the UAE leading, and ambitious plans including Dubai 10X and UAE Centennial 2071 following the vision of our country’s wise leadership.” According to MarketsandMarkets, the DRaaS market size in the Middle East is expected to see huge growth during the forecast period 2016 to 2021 with a compound
annual growth rate of 44.8%. The Middle East region is experiencing significant adoption of DRaaS with increasing number of cyber-attacks and threat of data loss. The major factors driving the adoption of DRaaS in Middle East comprises security breaches, software failures, hardware failures, and power outage. “It is important for organisations to always stay one step ahead of any potential internal or external threats,” said Juma Al Ghaith, executive director of Customs Development Division at Dubai Customs. “Through the new service, organisations will benefit from faster detection and removal of vulnerabilities as well as speedier data recovery and reduced downtime.” Amr Refaat, general manager, IBM Middle East and Pakistan, said: “In today’s “always-on” world, IBM offerings like DRaaS and Cloud Resiliency Orchestration are built to simplify and automate the disaster recovery process, increase workflow efficiency, and reduce risk, cost, and system testing time. This new service underscores IBM’s expanding business continuity and resiliency services portfolio.”
Sudhir Power incorporates JLG in rental fleet JLG Industries, an Oshkosh Corporation company and the leading global manufacturer of aerial work platforms and telescopic material handlers, announced that Indian rental specialist Sudhir Power has added a mix of JLG booms, scissors, and compact crawlers to its rental fleet in the UAE. “With this latest addition to its fleet, Sudhir Power is amongst the most rapid growing rental specialists in the region,” commented Ian Hume, sales director, JLG Middle East, Africa, and India. “We are obviously very pleased with these latest additions in JLG lifts to their fleet.” Rahul Seth, joint managing director at Sudhir Power, said: “I am excited for the new association with JLG. This relationship represents a powerful opportunity for Sudhir to significantly expand our presence in the Middle East, a vibrant and very important market. We now offer the advantage of multi-product integrated solutions, which manifest into a one-stopshop for our customers.” Sudhir Power is one of India’s leading power equipment manufacturers, serving over 100,000 customers commanding a majority market share in its business segment. The company has a wide blue-chip customer base and operates through five manufacturing facilities across India, focusing on power equipment’s including generators, transformers, switchboards, and EPC contracts. Logistics News ME | March 2018 | 53
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The key exhibitions, conferences, and seminars coming up this month
March
13-15
April
9-12
LogiMAT 2018 Stuttgart, Germany LogiMAT, the International Trade Fair for Intralogistics Solutions and Process Management, is an event that promises to provide a comprehensive market overview and competent knowledge-transfer. Spread out over 117,000sqm of exhibition space, exhibitors from some 40 countries, including around 360 new exhibitors and more than 50 notable suppliers from Australia, Canada, China, India, Japan, Korea, New Zealand, Taiwan, and the USA, will showcase their range of products and solutions for efficient intralogistics processes. Trending exhibits are driverless transport systems and vehicles, innovative shuttle solutions, and complete automated process solutions for SMEs.
Modex 2018 Atlanta, USA MODEX is a one-of-a-kind manufacturing and supply chain industry event where solution providers and powerful buyers come to meet, network, and get deals done face-to-face. Buyers come from over 110 countries around the world, looking for ways to increase the speed, efficiency, and performance of their supply chains. MODEX 2018 will include over 850 exhibits from leading solution providers and a comprehensive educational conference of over 100 sessions, focusing on best-in-class solutions for manufacturing and supply chain operations. The exhibits will represent all segments of the material handling, logistics, and transportation industry, from traditional, manual equipment to computerised, automated systems and smart supply chain technologies.
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march
12-13
May
1-3
Middle East Rail Dubai, UAE Middle East Rail will run in partnership with the UAE Government, hosting more regional and international government representatives than any other rail show. The show brings together transport ministries from the regional markets, in addition to rail developers, transport operators, government, contractors and suppliers, to talk strategy, technology and innovation for passenger and freight projects. Global companies come together to help build and operate brand new rail infrastructure, as well as upgrade legacy networks across the Arab League (MENA), Turkey, the Indian Subcontinent, and Central Asia. The 2018 edition will see the introduction of two new profiles—passenger information systems and transport ticketing. Automechanika Dubai Dubai, United Arab Emirates Automechanika is the world’s biggest trade fair for the automotive service industry, with visitors and exhibitors from industries such as automotive sport, workshop equipment, tyres and batteries, parts and components, electronics and systems, repair and maintenance, accessories and customising, etc. The Dubai edition is the most sought-after event in this part of the world, with industry experts proclaiming it to be the perfect time to explore new products, find new suppliers, connect with new distributors and wholesalers, while comparing product alternatives. The number of official country pavilions taking part this year is 25, which includes the world’s largest German pavilion for the automotive aftermarket industry. www.cbnme.com