OP-ED
TALKING POINT
VEHICLES
Protecting Your Supply Chain During COVID-19
Transforming Distribution through Modern Cloud ERP Systems
Scania, Pushing the Boundaries of Comfort
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
JULY 2020
Strategic ALLIANCE Swisslog and Mai Dubai join forces to install and implement a new fully-automated and retrieval solution for Mai Dubai
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CONTENTS
J U LY 2 020
CONTENTS
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J U LY 2 020
A NOTE FROM THE EDITOR KASUN ILLANKOON According to data released by IATA released data for global air freight markets in May showing a slight improvement in the air cargo market. But capacity remains unable to meet demand as a result of the loss of belly cargo operations on passenger aircraft that have been parked. Global demand, measured in cargo tonne-kilometers (CTKs*), fell by 20.3% in May (-21.5% for international operations) compared to the previous year. That is an improvement from the 25.6% year-on-year drop recorded in April. Meanwhile, global export orders continue to fall but at a slower pace. The Purchasing Managers Index (PMI) tracking new manufacturing export orders improved from the trough seen in April despite remaining in contractionary territory.
All regions suffered declines in May. Airlines in Europe and Latin America suffered the sharpest drops in year-on-year growth in total air freight volumes, while airlines in Asia-Pacific and the Middle East experienced slightly less dramatic declines. Airlines in North America and Africa saw more moderate drops compared to the other regions. Middle Eastern carriers reported a decline of 25% year-on-year in May, a significant improvement from the 36.2% fall in April. Despite a number of carriers in the region maintaining some cargo capacity, traffic on all key routes was low. International capacity decreased 24.4%. Kasun Illankoon Editor, Logistics News Middle East
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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 PARTNERSHIP
ION PARTNERS WITH UNIVERSITY HOSPITAL SHARJAH TO PROVIDE SUSTAINABLE LOGISTICAL SOLUTIONS UAE-based sustainable mobility solutions provider ION, announced a partnership agreement with University Hospital Sharjah to use ION’s fleet of electric vehicles to provide sustainable transportation services for its medical logistics and transportation needs across the Emirate. The agreement signed between the two entities, comes as part of ION’s remit to support the community by providing transport & delivery solutions that are sustainable and innovative. Trips are being conducted using ION’s electric vehicles and drivers, who also provide ridehailing services in the Emirate. These include patient and medical staff transportation, in addition to deliveries and distribution solutions, with plans to expand ION’s offerings to meet future demand. Established to promote sustainable modes of transport and green mobility solutions in the region, ION is a joint venture between Bee’ah and CE-Creates, the business incubation platform of Crescent Enterprises. ION offers electric vehicle ride-hailing services and manages and operates autonomous shuttle services as part of its dedication to spearheading the provision of accessible and sustainable 10 | LOGISTICS NEWS ME | JULY 2020
transport solutions. Commenting on the new service, HE Khaled Al Huraimel, Group CEO of Bee’ah and Chairman of ION, said: “ION was established as a forwardthinking company that provides cleaner alternatives to the current transport offerings. We believe strongly in helping the community through social impact initiatives, and we are happy to create new value by adding our fleet of electric vehicles to provide logistical services. Through our agreement with University Hospital Sharjah, ION is performing an essential service for the healthcare industry with efficiency, safety and sustainability in mind.” Samer Choucair, Director,
CE-Creates, said: “From the outset, ION has been helping alleviate the impact of COVID-19 through the deployment of its electric vehicle fleet serving the medical community in Sharjah and beyond. We remain committed to empowering our healthcare heroes and communities during these complex times, while contributing to environmental conservation.” Dr. Ali Obaid Al Ali, CEO of University Hospital Sharjah, added: “Together with our distinguished team of healthcare professionals, we continue to maintain the highest standards of service as we safeguard the health of communities in Sharjah. By utilizing ION’s sustainable
transport solutions, we are enhancing the quality and efficiency of our services while easing healthcare access to residents and healthcare professionals across the Emirate.” As part of the agreement with University Hospital Sharjah, ION has also developed an on-demand ride hailing and dispatch solution for transportation and deliveries. It is also maintaining all shipment records, with dedicated supervisory support and a platform dashboard to monitor daily progress. In keeping with stringent safety standards, ION disinfects its vehicles before and after each journey, and its drivers have been trained on health and safety protocols. WWW.CBNME.COM
J U LY 2 020
AVIATION
DHL EXPRESS EXPANDS ITS MENA AVIATION FLEET WITH TWO BOEING 767-300Fs
DHL Express recently added two new Boeing 767-300Fs to its MENA air fleet, marking a further step in the Company’s efforts to enhance its regional aviation network and improve its air capability to better support the region’s logistical demands. The new aircraft will increase DHL’s overall load capacity by more than 25%, servicing existing highdemand lanes across the GCC, extended Middle East, Africa & Indian Subcontinent which house some of DHL’s key commercial partners. “Investments in strengthening our MENA air network continue to form part of our wider strategy to enhance our capabilities in
this region and better service high demand destinations with greater speed, reliability and efficiency, ultimately improving service excellence which lies at the heart of DHL’s business model. In the past 6 years, in addition to almost doubling DHL’s Aviation touch points and boosting international flights to over 175 per week, we have consistently increased load capacities to vital trade links such as Egypt, Saudi Arabia, UAE, Lebanon, Jordan, East Africa and on our Asian lanes amongst others, to support the growing logistics needs of our clients for better cross-regional and global connectivity,” commented Richard Gale, Head of DHL
Aviation Middle East and Africa. “eCommerce is a key business driver for us and keeping on top of the shifts in world trade and how we adapt is very important. We are continually analyzing our network and adding air capacity to capitalise on the increased activity between Asia, the Middle East and Africa which are vital trade hubs for our regional clients,” continued Gale. The two new Boeings will complement DHL’s existing fleet of 767-200SFs operating in the region, bringing its total fleet size to 8 aircraft, while helping to significantly improve fuel efficiency and decrease CO2 emissions.
“One of our main criteria when deciding to add new planes to our DHL fleet, is to reduce our environmental impact; this supports our global vision and GoGreen targets to become the first zero emissions logistics company by 2050, an ambitious journey that is already being implemented across key operational verticals through clean transport solutions and greener supply chains. We are continuously upgrading our fleet with larger more fuel and energy efficient planes and the new Boeings are considered amongst the most cost efficient aircraft available today in the regional freighter industry”, further stated Gale. LOGISTICS NEWS ME | JULY 2020 | 11
REGIONAL NEWS
TECHNOLOGY
TABBY SECURES $7mn FUNDING TO LAUNCH IN KSA
Tabby, the UAE-based FinTech startup and the region’s first Buy Now Pay Later solution, today announced it has raised $7M to fund its growth and launch its offering in Saudi Arabia. The funding round was led by Raed Ventures with participation from MSA Capital and existing investor Arbor Ventures. Launched in 2019 by Hosam Arab, previously co-founder and CEO of online retail site Namshi, with an initial $2M in seed funding, Tabby’s mission is to empower consumers to easily buy what they want, when they want, while remaining in control of
their finances. Tabby helps retailers across the UAE and KSA boost their sales by offering their customers flexible payment solutions. Tabby’s Pay Later option offers an alternative to cash on delivery (COD) by allowing
customers to purchase products online using only their mobile phone number and email address and requires no pre-registration or credit card to use. Tabby’s Pay in Installments option gives customers the flexibility
to pay for their purchases in multiple, interest-free installments without requiring a credit card. E-commerce in the GCC is rapidly growing as a result of Covid-19 as consumers shift their purchase behavior to do more of their shopping online. Hosam Arab, co-Founder and CEO of Tabby said: “We are very pleased to bring our best-in-market solution to Saudi Arabia at a time when consumers and merchants alike will be strapped for cash. This funding will give our merchant partners further security and assurance that we are sufficiently capitalized to support their sales.”
TECHNOLOGY
ALLEGION MIDDLE EAST INTRODUCES TOUCHLESS ACCESS SOLUTIONS FOR MIDDLE EAST MARKETS
Allegion Middle East a pioneer in seamless access and provider of safety and security products, today unveiled its comprehensive portfolio of smart, secure, touchless access solutions with the focus on multifamily properties, healthcare facilities, commercial offices and education campuses. Allegion is providing that portfolio to businesses in the UAE and across the Middle East, actively addressing the unique and growing needs of the safety and security sector there. With the COVID-19 pandemic, organizations are facing new challenges that centre around how to open-up to the public or to keep operations running while maintaining a safe environment for both employees and customers. 12 | LOGISTICS NEWS ME | JULY 2020
In doing so, one concern that needs addressed is contact transmission: some studies have found that the COVID-19 virus can survive on certain surfaces for days unless properly disinfected. As a result, lessening the
amount of contact people have with commonly touched surfaces is one measure facilities managers can consider in seeking to provide safer, cleaner environments. “Offering safe and clean environments is clearly top
of mind for many – and for good reason. Adapting new technology and changing the way we access buildings or rooms is one opportunity to make a difference. Going wireless is already a popular trend, and when combined with automation of a door or opening, it can help reduce the chance of transmitting viruses and bacteria through hand-to-door contact. With increasing demand for social distancing and safe infrastructure in place, businesses are redesigning their spaces, adapting them to the ‘new normal.’ Touchless door solutions can provide seamless access that’s aligned with those new requirements and provide quality experience,” commented Jeff Bennett, commercial director for Middle East & Africa at Allegion. WWW.CBNME.COM
J U LY 2 020
GULFTAINER LAUNCHES GLOBAL STARTUP CHALLENGE TO BOOST TECH INNOVATION IN PORTS AND LOGISTICS SECTOR
Gulftainer announced the launch of the Future of Ports Startup Challenge 2020 to identify startups from across the globe with the ambition to lead the transformation of the port management and logistics industries. Gulftainer has partnered with the Global Silicon Valley labs (GSVlabs), a leading global innovation platform, to engage startups in five unique areas of opportunity where Gulftainer is pursuing new solutions: The Internet of Things and Robo-Doctors; Ar-
tificial Intelligence and Autonomous Drones; Big Data and Advanced Analytics; Blockchain and Bring Your Own Idea. This competition challenges entrepreneurs and startups from around the world to set their mark in the ports and logistics ecosystem, to grow, and to position their solutions in the industry. The call for applications is now open till August 15 and startups interested in participating can apply through the Future of Ports Startup Challenge website – gtinnovationchallenge.com.
“Gulftainer isn’t looking for incremental technology or ‘easy fixes’ – we are committed to developing long-term partnerships with emerging technology companies and working together to build the port of the future. Our aim is to seek entrepreneurs and unconventional thinkers, with a vision for the future, to chase groundbreaking innovation in technology areas that will transform the industry,” said Peter Richards, Group CEO of Gulftainer. “The Future of Ports Startup Challenge is
coming at a time when the supply chain and logistics industry is ripe for innovation. We’re excited about our partnership with Gulftainer and being involved in the port industry’s revolution,” says Nikhil Sinha, CEO of GSVlabs. “The application of AI, Robotics, Cloud and Blockchain technologies will be a driver of innovation in the industry and this Challenge is the perfect opportunity to source and uncover the most promising startups that are poised to lead in this space.”
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REGIONAL NEWS
COVID-19
‘WORLD SECURITY’ BECOMES UAE’S FIRST SERVICE PROVIDER TO INTRODUCE SMART HELMET TO DETECT COVID-19
World Security, the innovative security solutions provider of DP World, UAE Region has unveiled a new Smart Helmet that is designed to make contactless detection of people potentially infected with COVID-19, and help ease the movement of traffic in areas where it operates, while ensuring the highest levels of safety and security. World Security is the first security services provider in the UAE to adopt and use 14 | LOGISTICS NEWS ME | JULY 2020
the revolutionary headgear, which is a product of decades of innovation and research and is positioned to be the first choice for epidemic prevention activities. Made of advanced tough, yet lightweight materials, it is packed with high-precision sensors, processors and transmission systems. The KC N901 Smart Helmet’s top five powerful functions are: Efficient contactless temperature recording, rapid screening for both indoors and
outdoors, rapid screening of vehicles and passengers, and rapid face recognition and identity verification, using thermal imaging that enables the invisible visible. Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region, said: “With the reopening of the economy, we have now entered a new phase where monitoring public places for potential infection has become imperative. By introducing this
technology at a time when the fight against the pandemic is in full swing, World Security has reaffirmed its commitment to keeping the community secure. As the frontline economic growth engine, DP World, UAE Region and its businesses are strictly adhering to the COVID-19 containment programme requirements, and we’re constantly working towards introducing such new and effective measures to ensure business continuity.” WWW.CBNME.COM
J U LY 2 020
PORTS
KIZAD BREAKS GROUND ON NEW DEVELOPMENTS OF WAREHOUSES, SHOWROOMS AND INDUSTRIAL UNITS
Khalifa Industrial Zone Abu Dhabi (KIZAD) announced breaking ground for its new products for supporting the increasing demand for prebuilt facilities in KIZAD. The range of small-tomedium light-industrial warehousing units comprise the fourth, fifth, sixth and seventh phases of the KIZAD Logistics Park and are set to be introduced to the market starting from the end of the year to cater to increasing customer demands for additional ready to move facilities. Abdullah Al Hameli, Acting Head of Industrial Zones Cluster, Abu Dhabi Ports,
said: “Industrial activity and warehousing demand has been quite resilient, and we are confident that launching these ultra-modern units will propel tremendous growth in Abu Dhabi’s manufacturing base. Customers are looking for flexible and asset-light options, and we are expanding our portfolio to address these needs through the launching of a new modular, pre-built units in various sizes and configurations. “With the availability of options to buy or lease warehouses based upon a business’s individual requirements, investors are benefit from our flexible offers
for low-cost operations at scale as well as our ability to offer the region’s lowest utility costs. This is complemented by the unique location at the industrial heart of the UAE, and its direct access to global markets via our flagship deepwater port, Khalifa Port.” New developments in KLP 4 and KLP 5 span total plot area of approx. 250,000 sqm, and offer a range of mixed-use warehousing and light industrial units. These comprise of 26 showroom warehouse units (24 units of 795 sqm and two units of 1,920 sqm) and 88 small-tomedium light-industrial and warehousing units (76 units
of 500 sqm; six units of 1,000 sqm; one unit of 1,666 sqm; and six light industrial units of 1,028 sqm). Further, KLP 6 & KLP 7 offer dedicated plots spanning a total of 330,000 sqm, housing 20 large terraced units, each with an individual floor space of 2,500 sqm, while KLP 7 will feature 56 medium lightindustrial and warehousing units. Located in KIZAD Area A, all modules will be equipped with raised floors, open loading yard access for trucks and forklifts, ample on-site parking will include their own office area with toilets and kitchenettes. LOGISTICS NEWS ME | JULY 2020 | 15
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MARITIME
DMCA LIFTS TIMING RESTRICTIONS ON MARITIME ACTIVITIES
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Dubai Maritime City Authority (DMCA) has issued a circular lifting the timing restrictions for maritime activities. The step indicates the return of the maritime sector in Dubai to its normal pace following the Dubai Government’s successful completion of the National Disinfection Programme, which paved the way for the restoration of economic activities including tourism initiatives. DMCA continues its efforts to implement all the necessary measures to regulate and facilitate maritime activities that would strengthen Dubai’s position as a leading global maritime hub. The Authority focuses on developing and implementing the legal and legislative frameworks needed to further
regulate the maritime sector in Dubai, as well as constantly enhance its procedures to provide the best services that support maritime activities. Sheikh Saeed bin Ahmed bin Khalifa Al Maktoum, Executive Director of Dubai Maritime City Authority, said: “The decision to lift the restrictions on maritime activities comes in line with the government’s directives to ease the movement of people in Dubai, paving the way for the maritime sector to return to its normal operations as we move towards the postcoronavirus phase. This is an important step in facilitating the commercial activities in the emirate, especially that it now prepares to welcome huge number of tourists from all over the world.” WWW.CBNME.COM
J U LY 2 020
TRADE
DUBAI CUSTOMS TRANSACTIONS UP 36% IN FIRST FIVE MONTHS OF 2020 DESPITE PANDEMIC
Dubai’s economy continued its exceptional performance despite headwinds from a slowdown in global economic growth due to the coronavirus pandemic. Number of customs transactions processed by Dubai Customs jumped 36% in the first five months of 2020 to reach 5.9 million compared to 4.4 million transactions in the corresponding period of 2019. In May, Dubai Customs carried out 1.1 million transactions compared to 994,000 in May 2019, growing 10.6%. The growth reflects economic resilience and efficient response to
coronavirus pandemic and its impact on economic sector in general, thanks to Dubai Customs’ highly advanced infrastructure, stimulus packages and smart services. Customs declarations rose 42% in the first five months of this year to reach 5 million declarations compared to 3.5 million declarations in the corresponding period in the previous year. A million declarations were completed in January, almost the same for February, 1.3 million in March, 691,000 in April, and a million declarations in May. The advanced Smart Workspace helped complete a declaration in 4 minutes as average.
Dubai saw exceptional growth in business registration applications. Against all odds, Dubai Customs completed 107,000 business registration requests from January to May, growing 95% from 55,000 in the first five months in 2019. There were 358,700 refund requests, 220,700 certificate/report requests, and 146,900 inspection date booking requests in the first five months this year. “Stimulus package announced by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister
and Ruler of Dubai helped mitigate the impact of the pandemic,” said Ahmed Mahboob Musabih, Director General of Dubai Customs. “Our wise leadership supports business and trade sector in these challenging circumstances. A number of initiatives launched by the government have helped the business sector keep going, enhanced liquidity and reduced the impact of the current global economic situation. This is clearly manifested in the growing number of customs transactions handled by Dubai Customs in the first five months of this year.” LOGISTICS NEWS ME | JULY 2020 | 17
TA L K I N G P O I N T
TRANSFORMING DISTRIBUTION
Khaled AlShami, Director, Solution Consulting, Middle East & Africa (MEA), Infor, gives us an overview on how modern cloud ERP systems can transform distribution.
The competitive landscape in the distribution industry is fiercer than ever before. Rapidly changing customer demands, global supply chain disruption, and a shifting labour market are adding to the pressure on distributors, while accelerated digitalization is forcing them to re-evaluate their business to compete. According to Deloitte, “distributors now have the opportunity to generate incremental value via effectively leveraging digital assets and applying information, analytics, and insights to critical business decisions and stakeholder interactions.� To get ahead, leading distributors are investing in digital technologies to empower produc-
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tivity across their operations, workforce, and customer experience. While a modern, cloud-based system will offer a continuous flow of new technologies and industry-specific capabilities, many distributors are still limited by legacy enterprise resource planning (ERP) systems. Many find themselves grappling with significant ERP modifications, making them feel locked into their old system. Others are overwhelmed by the thought of disrupting their daily operations by adopting a new system and choose not to act at all. In both cases, the gap between these distributors and their more tech-forward competitors is widen-
ing every day. Here are three key reasons why a modern, cloud-based ERP system can make distributors more agile, efficient, and better able to serve changing customer needs. 1. HIGHLIGHT CUSTOMER-CENTRICITY Perhaps the most significant success factor for distributors today is developing innovative services beyond the typical distributor-customer relationship. Distributors should look for a modern ERP system that not only supports these types of services, but also incorporates the use of tech-
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nologies such as the internet of things (IoT), artificial intelligence (AI), machine learning (ML), and mobile devices to enhance their offering. For example, a distributor can leverage IoT to monitor equipment and collect data to determine the optimal time to perform maintenance, safeguarding against customer equipment failure. Another example might be putting mobile devices in their field service team’s hands to provide them immediate access to the information they need to complete the repair. In addition to providing customers innovative value-added services, distributors can leverage a modern cloud-based ERP system to improve their customer’s buying experience. An advanced ERP system can use AI and ML to deliver highly personalized product recommendations, even factoring in external sources, such as weather, to recommend the type of drill needed in freezing conditions. The rise of customer desires for self-service can’t be ignored. When it comes to ecommerce, customers desire powerful online research tools to design their products and mobile access from any device. A functional website that lets customers operate on their terms can inspire loyalty and give the distributor a competitive advantage. 2. ENHANCE PRODUCTIVITY Customer demand for speed and accuracy requires streamlined and efficient operations across the supply chain, impacting every aspect of the distributor’s business – from sales to service, to inventory and warehouse management. Modern ERP systems leverage new technologies to anticipate fluctuations in demand better to make better buying decisions. These systems also offer warehouse automation, replacing slow and error-prone manual processes, and asset management capabilities to better manage a fleet of trucks to ensure they are always operating and delivering the right product to the right place, at the right time. Modern ERP systems offer workflow tools to automate business processes and eliminate manual steps to achieve optimal efficiency. Leveraging this technology enables the distributor to ensure best practices are followed and prevents problems that might have otherwise occurred. Workflow tools act as a manager and ensure work is passed from one person to the next in the appropriate sequence until the process is complete. Another benefit of a workflow tool is the ability to identify potential issues proactively. Without tools like this, distributors often are
playing catch-up and resolving customer problems in hindsight. To offer the best service, distributors must operate in an environment where they stay one step ahead. A modern ERP system can identify potential problems before they occur. For example, if a purchase order is going to arrive later than expected, the system will alert employees of customer orders that will be impacted by the delay. As such, employees can address the issue before it becomes a problem. 3. IMPROVE EMPLOYEE ADOPTION When it comes to seeing a return on investment with any new technology, a business will only be successful if employees readily adopt and integrate the system into their working ways. Perhaps not surprisingly, the lack of learning tools in legacy ERP systems represents a significant barrier to entry in the enterprise software industry. Making emerging technologies accessible to any person in any business area is what makes modern enterprise technology so powerful. Modern ERP systems emphasize seamless user experience and design, making it easy for employees to engage with the software and seek out data to inform their decision making. Twenty years ago, distribution employees
had to tolerate lengthy training sessions to understand their workflows. But by choosing an ERP solution with modern training tools and pre-built content, employees can skip those extended classes and continuously learn within the system itself. These modern training tools and intuitive systems are also particularly useful for distributors that hire temporary workers during busy seasons, like the holidays. Not everyone will be familiar with every technology that a workplace utilizes, so having help buttons to guide them through processes, as they go, increases employee productivity, and lets managers focus on higher-level tasks. DEFINE YOUR FUTURE IN THE DIGITAL AGE Distributors still using legacy ERP systems to face an opportunity cost every day. While tech-forward competitors race ahead with modern cloud ERP systems that let them better serve customers and their changing needs, improve their overall productivity, and support and retain employees in a tight labour market, distributors without modern systems will only continue to fall behind the pack. The companies that succeed will be those that progress beyond legacy systems and step into the continuously evolving world of modern ERP.
LOGISTICS NEWS ME | JULY 2020 | 19
C O V E R S TO RY
Strategic ALLIANCE
Swisslog and Mai Dubai join forces to install and implement a new fully-automated and retrieval solution for Mai Dubai
20 | LOGISTICS NEWS ME | MARCH 2020
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lobal logistics automation specialist Swisslog has revealed the successful installation of a new fully automated storage and retrieval solution of Goods for Mai Dubai, a leading Dubai-based bottled drinking water company. The move is part of Mai Dubai’s ongoing expansion initiative and involves implementing a fully automated and data-driven intralogistics system that is future ready. Swisslog is shaping the future of logistics automation and transforming warehouses and distribution centres to achieve maximum efficiency, flexibility, and agility. Alain Kaddoum, General Manager, Swisslog Middle East, said, “Warehouse and factory managers constantly need to synchronize their material flow between production and warehouse to optimize the inventory level and reduce the operational costs.” Alexander van’ t Riet, CEO of Mai Dubai LLC, said: “Swisslog’s many years of experience
and expertise in logistics automation for the food and beverage industry convinced us to go with Swisslog Middle East as our intralogistics partner for our expansion project.” The benefits that Mai Dubai will reap out of this are plentiful; a complete solution for end-toend material flow, requisite logistics in place to handle considerable increases in capacity, significant improvement of flow of goods through automation, and having tight control of all logistics components through the usage of software and technology. With this installation, Swisslog offered complete system design, engineering, simulation, implementation, and integration of two high-bay warehouses with associated monorail and conveyor technology. EXEMPLARY FOOD SAFETY STANDARDS Since its establishment in December 2012, Mai Dubai LLC has enjoyed exponential growth of the bottled water it produces and is an excel-
lent example of an inspiring success story. The fully owned subsidiary of the Dubai Electricity and Water Authority (DEWA) has been investing in state-of-the-art technologies from the start for its facilities to guarantee the production of high-quality end products. Due to its commitment to excellence, the young company has earned the region’s highest award for food safety year after year. Mai Dubai currently is the number two brand in the market and also enjoys an excellent reputation beyond the borders of the United Arab Emirates (UAE). Apart from being the official bottled water partner of Emirates Airlines, the company’s distinctive and iconic water bottles with red lettering have also become a fixture in 13 countries across the GCC, Asia, Europe, and Africa. The use of Swisslog’s fully automated storage and retrieval solution will help drive critical benefits and advantages for Mai Dubai, including a
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C O V E R S TO RY
significant reduction in labour costs, improved production flows and enhanced storage efficiencies. The installation proves to be both timely and strategic, and is expected to sustain Mai Dubai’s continued growth ambitions. SWIFT AND EFFICIENT PROCESSES IN TWO HIGHBAY WAREHOUSES To meet the steadily climbing demand, the company decided in 2016 to expand production by 2020. Mai Dubai committed to massive investments in production and intralogistics and elected to rely on the expertise of Swisslog to deliver its needs and requirements. As part of an order valued over Euro 20 million, Swisslog planned and implemented a fully automated system based on intelligent software in the context of big data. The major expansion project included planning and implementing a six-aisle automated high-bay warehouse for raw
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material and packaging materials as well as -only a few hundred meters away- a high-bay warehouse with 17,560 pallet locations for finished goods with 10 aisles. “The introduction of new automation deployments driven by strong warehouse management software (WMS) can maximize return on investment and minimize risks to supply chain operations. Combining Swisslog’s SynQ WMS solution, Mai Dubai was able to modernize their warehousing, distribution, and production operations by optimizing the performance of the various components while maximizing the storage capacity,” said Alain. Swisslog’s SynQ is a modular, service-oriented software platform for warehouse management and material flow orchestration. SynQ, representing Synchronized Intelligence, gives the organization the precise functionality they need to optimize warehouse operations. It lit-
erally embeds intelligence in the operation and synchronizes the performance of their automated and manual warehouse equipment in the best possible way. It encompasses warehouse management (WMS), material flow (MFC/WCS), and automation control systems (ACS) functionality, along with an array of business intelligence tools to boost the warehouse performance. SynQ covers the full spectrum of an organization’s supply chain needs to optimize their warehouse operation in the era of interconnectivity, automation, machine learning, and real-time data and help them stay ahead of the competition. “Our SynQ software is a future-proof solution offering efficient integration to 3rd party ERP systems, comes with integrated user-friendly interfaces for all the shop floor operations and condition monitoring of the entire site as well as administrative tasks. Our modular platform also
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“The introduction of new automation deployments driven by strong warehouse management software (WMS) can maximize return on investment and minimize risks to supply chain operations.”
includes the visualization of the entire plant in 3D, VR and AR,” Alain commented. Swisslog Vectura stacker cranes connected to the transport system will provide swift and efficient storage and retrieval processes in both warehouses. Fundamental to the material and goods flow concept is the over 1,100-meter long monorail system, which guarantees processoptimized transports - from receiving the raw products and packaging materials from warehouse to the production lines, transporting the Finished Goods from production lines to the finished goods warehouse, and to the shipping lanes in the distribution center. Within the configuration, a total of 44 Swisslog trolleys, each capable of carrying two pallets at a time, can travel along with the rail system. Alexander explained, “Working closely with Swisslog was part of our expansion strategy. The implementation of an automated and digitalized
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C O V E R S TO RY
J U LY 2020
logistics solutions is part of -and contributes toour customer-focused approach. This initiative will help us not only to improve our production control but also allows for greater storage density and increased efficiency.” HIGH-PERFORMANCE IT INFRASTRUCTURE In addition to the installation of warehouse technology components, the mega expansion project implemented by Swisslog also includes advanced high-performance information technology (IT) infrastructure and control technology. The ProMove pallet conveyor system ensures the efficient flow of goods and the sequencing of pallets in receiving and shipping. Swisslog Warehouse Management Software is crucial to this process. Algorithms guide the movement of goods across two floors to the right locations at the right time. FUTURE READY The modular software platform also offers several big-data business intelligence tools that can be flexibly added over time. With its modular
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architecture and intelligent, automation-friendly design, the software helps Mai Dubai prepare for the changes that digitalization brings so the company can benefit from its opportunities. “Implementing automation can help companies with achieving their best supply chain performance, which now acts as an indicator of resiliency and not merely cost management. In
the current competitive and dynamic market, risk of disruption in the supply chain can cause issues with business continuity, losing competitiveness, reduced short-term financial performance. Automation can help companies deal with the complexities, increase the performance of supply chain and make it resilient for any kind of disruptions,” concluded Alain.
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C O N N E CT I V I T Y
FUTURE IN CONNECTIVITY
Bosch sees factories’ future in connectivity as industry 4.0 shows productivity level at sites has increased by 25 percent Crises reveal weaknesses. The coronavirus pandemic has highlighted the value of connected manufacturing and logistics. The internet of things (IoT) helps manufacturing companies react more flexibly than before to disruptions, since the utilization and condition of each machine can be tracked in real-time, and there is transparency along the supply chain. “Especially in exceptional times such as the current crisis, connectivity makes companies less vulnerable and helps them keep an even keel,” says Rolf Najork, a member of the Bosch board of management responsible for industrial technology. For example, where the risk of infection makes physical proximity a challenge, shift handovers can be handled digitally. Digitalization enables remote monitoring and maintenance of systems and machines, with no need for a technician on site. Intelligent software can track goods and deliveries, and ensure replenishment, from any location. All this is possible, thanks to Industry 4.0. Connected solutions will help make manufacturing and logistics simpler, more efficient, flexible, and more robust. Bosch is an IoT pioneer. The company began adding connectivity to production and logistics in 2012 – both in its own plants and in those of its customers. INDUSTRY 4.0 BOOSTS FACTORY PRODUCTIVITY In the factory of the future, the only static and fixed things are the floors, walls, and ceilings. The factory of the future continually reinvents itself as needed. It is guided by a vision of a manufacturing set-up that can produce thousands of different products and vari-
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ants, down to a batch size without the need for expensive retrofitting. This is why Bosch is committed to connectivity. Projects in this area drive progress and deliver measurable benefits. With the help of Industry 4.0, it is possible to increase productivity at individual locations by up to 25 percent. “Connectivity is essential for any company that wants to stay competitive. Industry 4.0 is a historic opportunity, offering enormous potential,” Najork says. “We are not only improving factory productivity, but also enabling companies to respond quickly and appropriately to changes.” To take the example of Bosch, the transition of the automotive industry means pressure on costs for its powertrain division and pressure to adapt. For precisely this reason, the division will be investing some 500 million euros in comprehensively digitalizing and adding connectivity to its manufacturing operations over the next few years. The expected saving will be twice as high: roughly 1 billion euros by 2025. And the use of artificial intelligence is expected to add even more of a boost. The focus here is on AI-based solutions for predictive maintenance of machinery, for quality assurance, and for improving production processes. For example, AI is used in highly complex wafer fabs – such as the Bosch plant in Reutlingen – for detailed production scheduling, saving time and costs as it guides the wafers through more than 500 processing steps. This alone means a 5 percent faster wafer throughput, with an investment payback time of just three months.
FROM INDIVIDUAL PROJECTS TO LARGE-SCALE IMPLEMENTATION In Germany, six out of ten industrial companies with more than 100 employees already use Industry 4.0 applications, according to a recent study by the industry association Bitkom. In many cases, however, the applications are only piecemeal. The VDMA, the association of German machinery and equipment manufacturers, estimates that 80 percent of the country’s existing machinery has yet to be digi-
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talized. “There’s still a lot more we can do in manufacturing, and many points we can tweak and adjust. Our task now is to make Industry 4.0 the norm in all parts of the manufacturing sector,” Najork says. For companies, the biggest obstacle to implementing Industry 4.0 is the large sums of capital this requires (Bitkom, 2020). In fact, machinery can also be retrofitted with communications technology and sensor systems. Doing so opens the door to the industrial internet of things. The Bosch Rexroth
plant in Erbach, Germany, shows how even minor investments in large-scale machine lines can pay off: It spent 25,000 euros on equipping these lines with sensors and light barriers saves some 200,000 euros a year. BALANCING ECONOMIC AND ECOLOGICAL FACTORS THROUGH CONNECTED SOLUTIONS As a leading IoT company, Bosch has all the core competencies required to shape Industry 4.0. Its portfolio includes software packages for
maintenance, monitoring, and logistics, robotics systems for manufacturing and transport, retrofit solutions for existing machinery, and assistance systems for machine operators. Now Bosch is debuting a software-based, 5G-capable control technology that is open to thirdparty applications. ctrlX Automation marks an end to isolated solutions in factories. Featuring more than 30 data protocols, the new Bosch Rexroth automation platform will be the control center of the factory of the future. With its improved Nexeed Industrial Application System, Bosch Connected Industry offers more than merely an “app store” for manufacturing and logistics. The various software applications can be ordered, used, and combined as needed. All machine data is available in a transparent and standardized format, thus ensuring greater transparency and efficiency. A prime example of how to harmonize economic and ecological considerations is the Bosch Energy Platform. Once a machine has been connected to it, its power consumption can be tracked, analyzed, and controlled. The result is that more economical factories, require less energy, and emit less CO2, connectivity will play a significant role in making manufacturing climate neutral.
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SHIPPING
DECARBONIZING SHIPPING The shipping industry has made a strong commitment to reduce its global carbon emissions towards 2050. A group of leading industry players are taking the next step to develop new fuel types and technologies by launching the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping.
The founding company partners behind this initiative are ABS, A.P. Møller – Mærsk, Cargill, MAN Energy Solutions, Mitsubishi Heavy Industries, NYK Lines and Siemens Energy. The center, which will be based in Copenhagen, Denmark, is made possible by a start-up donation of DKK 400m by the A.P. Møller Foundation. Chairman of the Board in the A.P. Møller Foundation, Ane Uggla comments: “With this donation, The A. P. Møller Foundation wishes to support the efforts to solve the climate issue in global shipping. My fa-
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ther, Mærsk Mc-Kinney Møller was a visionary leader in the global shipping industry for more than 7 decades. He was concerned about shipping’s impact on the environment. Already in the 1980’s he championed the use of low sulphur fuel, and he pioneered the first double hull oil tankers in the 1990’s to minimize the risk of oil spills. Therefore, I find it very natural that my Father’s name will be connected to the center.” The center will be a non-profit organization, set up as a commercial foundation with a charitable purpose. As an independent re-
search center, it will work across the entire shipping sector with industry, academia and authorities. A highly specialized, cross-disciplinary team will collaborate globally to create overviews of decarbonization pathways, accelerate the development of selected decarbonizing fuels and powering technologies, and support the establishment of regulatory, financial and commercial means to enable transformation. To define the strategic direction of the center, a Board of Directors is being established. Søren Skou, CEO of A.P. Møller – Mærsk
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has been confirmed as Board Member. Additional members of the Board of Directors will be announced upon appointment. Future member of the Board, Søren Skou, says: “The founding partners and the A.P. Møller Foundation share a long-term ambition to decarbonize the shipping industry. The establishment of the center is a quantum leap towards realizing that ambition. This joint initiative will fast-track the maturation of solutions and strengthen the basis for decision making among industry players and regulators and hence accelerate investments and
implementation of new technologies. I am looking forward to join the Board of this ambitious collaboration.” Furthermore, the center will have a management board, which will be headed by Bo Cerup-Simonsen as CEO of the center. Bo Cerup-Simonsen holds a PhD from the Technical University of Denmark in Mechanical Engineering, Naval Architecture and has a proven track record in leadership of largescale industry projects, maritime technology, research and innovation. “This is the early days of a demanding
and necessary transformation of an entire industry. Thanks to the A.P. Møller Foundation and the support from industryleading partners we now have a unique opportunity to unfold the potential of a sector-wide collaboration towards complete decarbonization. The Mærsk McKinney Møller Center for Zero Carbon Shipping provides a solid platform for the entire eco-system to join forces, demonstrate new solutions and identify the next steps to make it happen. I’m excited to let the work begin, expanding the collaboration with a broad variety of contributors,” adds Bo Cerup-Simonsen. The founding partner companies bring a common commitment to decarbonizing shipping and specialized knowledge and research capabilities. Furthermore, the founding partners will donate expert people resources and/ or testing platforms to support the operations. The Center expects to attract several more partner companies in the future. During the first two to three years the center will recruit around 100 employees to the Copenhagen-based office and collaborate with new partners across the globe. The founding partner companies have committed one-third of the needed staff, the remaining two-thirds will be recruited independently. In addition to leadership and administration, the Center staff will include subject matter experts in energy, fuels and ship technology as well as regulatory affairs, finance and the global energy transition. Shipping’s road map to decarbonization The shipping sector accounts for around 3% of global carbon emissions. The industry has made a firm commitment to reduce this to zero within this century. Short-term measures related to increased energy efficiency is enabling a 40% relative reduction by 2030. Achieving the long-term target requires new fuel types and a systemic change within the industry. As shipping is a globally regulated industry, there is opportunity to secure broadbased industry adoption of new technology and fuels. To accelerate the development of viable technologies a coordinated effort within applied research is needed across the entire supply chain. Industry leaders play a critical role in ensuring that laboratory research is successfully matured to scalable solutions matching the needs of industry. At the same time, new legislation will be required to enable the transition towards decarbonization.
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OP-ED
PROTECTING YOUR SUPPLY CHAINS Anas A. Abdul-Haiy, Director and Deputy CEO of Proven Consult, tells us how you can protect your supply chain during the COVID-19 Pandemic
As the world is battling against COVID-19, the pandemic has an uneven effect on the supply chain industry. Industries such as auto, travel, consumer goods, electronics, and retail have been profoundly impacted. The supply chain economy has a large and distinct impact on economies of the world that is driven by industrial activities and innovation. DATA LEADING THE WAY Having a data-centric approach towards supply chain management is making suppliers more agile in their operations. Using predictive modeling and data simulations, businesses can predict the impact of a sudden decline in demand in one country that can impact the entire supply chain. Live tracking the sales, shipments, and orders with minimum
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latency will help businesses to identify surge or decline in demand and these data can guide the decisions regarding the production levels. END-TO-END DIGITISING Having a cloud-based or web-based ordering system, allows businesses to act on shifts in demand proactively. Creating an end-to-end digital IT ecosystem is key to drive and minimize the latencies. However, to track actual production, inventory levels, and shipments, businesses must leverage various Internet of Things technologies together to bridge data between various processes. Starting from placing the order or query to the actual production and distribution, these various processes in the value chain funnel need to be digitized to enable faster decision making.
AUTOMATION FOR AGILE SUPPLY CHAIN While the manufacturers are looking for alternate vendors for their critical components, the reduced labour force and increased demand have led to increased lead time. Accelerating production and reducing manual interventions in the business processes are critical to solving these problems. Suppliers must develop greater automation capabilities to accelerate production and minimize manual interventions in the business process. Using IoT and robotics, businesses can fast track assembly lines, inventory management, and data analytics. EMBRACING THE DIGITAL WORKFORCE: For manufacturers, labour shortage and replenishment serve as focal points for op-
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erations to manage ramp-up in production after temporary shutdowns. Therefore, businesses are embracing the digital work environment and communication channels to continue their operations remotely. Departments such as marketing, finance, and HR has moved to virtual desks. While these techniques act as a solution to cope with the supply chain crisis, it is the principles that are leading the decision making. NEW PRINCIPLES FOR SUSTAINABLE SUPPLY CHAIN Diversifying the supply chain will not only make supply chain reliable also help businesses to optimize cost. Businesses can source components for new products from low-cost sources
and can launch new products at a lower price to boost their sales. This crisis has key lessons for businesses about reliable and efficient supply chain management. In the immediate term, organizations need to take steps to stabilize supply chain operations by conducting risk assessments and implementing business continuity plans using crisis-management teams. CRISIS MANAGEMENT FOR SHORT TERM IMPACT To address the volatile nature of current supply chain operations, organizations should mobilize a crisis-management team or a war-room setup that has the power to make quick, analysis-based supply chain decisions. Analysts should examine supplier delivery performance, deviations from plans, canceled
orders, fulfillment rates more frequently to identify any potential supply chain issues. OPTIMIZING HR STRATEGIES While protecting supply chain businesses is paramount for economies; at the heart of this crisis, people are most affected. Protecting the people working in the supply chain ecosystem must be a priority for businesses amidst the pandemic. At an unprecedented time of pandemic threats, businesses must make quick decisions led by talented executives to implement new policies and standards to the ground level. As businesses shift towards automation and digitalization, the focus has to be on finding new executive talent for implementing strategical and analytical functions of supply chain management.
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VEHICLES
SCANIA TOURING –
PUSHING THE BOUNDARIES OF COMFORT
If your business relies heavily on buses to meet your business needs and bottom line, look no further than the Scania Touring Bus model. Giving your customers the unique and seamless experience as they go from one point to another. After all, providing such a seamless experience is what Scania offers in its products as its purpose is to drive the shift towards a sustainable transport system, creating a world of mobility that is better for business, society and the environment. Scania offers a complete range of buses and coaches for public transport operators and coach companies. Scania buses and coaches are renowned for their outstanding total oper-
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ating economy. Each component is engineered to heighten the vehicle’s performance and set world-class standards for fuel economy, driveability, road handling, reliability, and uptime. So what does the Scania Touring Bus offer? DESIGN The Scania Touring Coach has a powerfully sculpted exterior, it’s a versatile coach, designed to meet the demands of occasional service and regular service over longer distances. For the passengers, Scania Touring’s smart design makes even the longest trip a safe, relaxed, and harmonious experience. The coach has been designed for functional quality, from the seating and cli-
mate system to each safety feature. Double-glazing creates a quiet interior that lets passengers usually converse, and the entertainment system is a welcome addition on longer journeys. Comfort features, including a toilet and mini-kitchen, are also available. The luggage area is adapted to fulfil different needs within occasional and regular service. In both models, parallel, pneumatically, or manually controlled luggage hatches open along the side of the bus, making it easier to load and unload, even in cramped areas. For the driver, they would enjoy a welldesigned ergonomic workplace with a highly adjustable steering wheel, and pendant pedals enable the driver to find the optimal position
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for safer and more comfortable driving. The optimised driveline features all Scania components, and Scania Opticruise automatically selects the right gear for pleasant, economical travel. Furthermore, the Scania Touring Bus flexible features allow operators to explore wide-open expanses or narrow city streets without much hassle. The two-axle version is a perfect combination of manoeuvrability and capacity. With the three-axle version, you gain higher capacity, while still retaining manoeuvrability via the steering tag-axle to navigate the tough territory. MEETING YOUR DRIVER’S EXPECTATIONS Taking care of your drivers is of utmost impor-
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VEHICLES
tance, and Scania Touring gives them a great driving experience. That means benefits that flow on to your passengers – as well as your bottom line. Your drivers can help you drive down operating costs and CO2 emissions. That’s why Scania has developed a number of services that focus on making driving more comfortable. It begins with their training, which will help to increase their engagement as well as the uptime and service life of your fleet. At the same time, you can decrease accident rates, fuel consumption, unscheduled services, and total cost of ownership in the long run. To further increase the value of the Driver Training, you can add Scania Driver Coaching to keep skills up to date. Furthermore, when drivers understand the impact of how they drive, it makes them better drivers. The best way to do this is an on-board system that gives the driver real-time feedback on performance and fuel economy. Each driver has their own fuel consumption data. This lets
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them set targets and compete with each other or against themselves. Scania Fleet Management System connected to your offices will help monitor vehicle location, performance, and fuel consumption. You can also receive reports if something is wrong, so you can schedule a service break rather than being taken by surprise. It lets you fine-tune your operation and maximise uptime. FUEL EFFICIENCY Fuel efficiency is essential, and for operators focused on the low total cost of ownership, this coach is destined to be your profit source for years to come. So, Scania Touring Coach can operate on HVO, biodiesel, and other alternative forms of diesel to increase your fuel efficiency for long-distance driving. Hydrogenated Vegetable Oil – HVO – is a modern way to produce high-quality bio-based diesel fuels without compromising fuel logistics, engines, exhaust after-treatment devices, or exhaust emissions.
HVO can be made from different sources – such as waste oil, rapeseed oil, palm oil, and animal fat. Using these sources of energy has a significant impact on the total greenhouse gas savings. Compared to standard diesel, an optimal CO2-reduction can reach up to 90% reduction in CO2-emissions. Biodiesel can be made from various sources like rapeseed, plants, and waste cooking oil. Biodiesel also has the advantage of being a liquid, available in large quantities. The supply of sustainable biodiesel is primarily being used for blending in diesel, or a pure 100 % form. Compared to standard diesel, an optimal CO2 -reduction is estimated to be up to 66% in CO2-emissions. Scania have contributed to more than a century of bus evolution by having the right people, products, and solutions. This is because Scania believes these buses, such as Scania Touring, will be a win for everyone involved.
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Our SME eShop delivers. So your business can keep growing. du.ae/SME
Scania Touring HD range
a privilege to own The Scania Touring is a coach designed to meet your needs for occasional service and regular service over long distances. You will enjoy full support from a single point of contact since all parts, maintenance and repairs are backed by Scania’s comprehensive
global service work. The possibility of fast deliveries gives your business plenty of flexibility. If you’re focused on good total operating economy, this coach is destined to be a profit source for years to come.
