19 minute read
INTERVIEW
Simplifying logistics through technology
DNATA recently signed up KALE LOGISTICS SOLUTIONS to develop a next-gen eCommerce platform for the cargo community in the UAE. We speak to KALE’S CEO AMAR MORE on how this platform will benefit the logistics industry
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Tell us about Kale Logistics and your solutions for the logistics industry? Kale Logistics Solutions was built on the platform of deep industry knowledge and technical expertise. Until date, Kale serves as the harbinger for many technologydriven solutions that have changed the face of the logistics industry worldwide.
Kale’s community and enterprise solutions cater to a wide network of Logistics service providers (LSPs) who have strengthened and improved their operational and business capabilities. Most notably, we have been the recipient of United Nations awards on several occasions.
Why logistics? Logistics as an industry has a vast definition. It involves various stakeholders ranging from exporters, freight forwarders, terminal operators, ground handlers, transporters, customs brokers, airlines, shipping lines, airports, ports to name a few. Therefore, the industry’s structure is chaos prone. With numerous networks and players in the logistics industry, digitisation and incorporation of technologies make the sector more advanced, connected, and lucrative.
Between risk mitigation, cost optimisation, and increased customer satisfaction, automation has become the cornerstone for heightened efficiency in the logistics sector. Hence, to transform the operations, we require the intervention of technology. With technology, the industry can reduce ambiguous tasks and cut down the delays in operations.
For a single cargo shipment to move it takes close to 30 documents, 100 copies and 120 physical signatures. This nature of documentation leads to operational delays, lack of transparency and lack of trade visibility. Automation, paperless trade, and digitisation of operations is the need of the hour.
Expand on your relationship with dnata and what the eCommerce platform will do. Dubai holds platinum standard in the logistics industry and dnata is one of the top five handling companies in the world. A decade ago, the airport had launched an eCommerce platform, which is the world’s leading paperless air cargo solutions portal offering a reliable, secure, simple, and cost-effective eFreight business solution.
Now, dnata wants to enhance this platform and make it future ready for the next 15 years. They conducted an incredibly detailed exercise of finding the right partner to build this next generation system on the existing system. After three years of evaluation, finally they signed up Kale. The first phase is to upgrade the existing system and in phase two take it to other locations across the world which may be over 40 airports.
This collaboration will bring about various strategic advantages like establishing a digital trade corridor between Dubai and other airports and are run on Kale’s platforms. Therefore, Dubai can have a global air network, which will be the industry’s first such global network. This will be a case study on how Dubai is creating digital infrastructure to connect the entire world. >>>
“BETWEEN RISK MITIGATION, COST OPTIMISATION, AND INCREASED CUSTOMER SATISFACTION, AUTOMATION HAS BECOME THE CORNERSTONE FOR HEIGHTENED EFFICIENCY IN THE LOGISTICS SECTOR.”
The excellence created in Dubai will be replicated by dnata at other airports. The new platform promises to connect partners with customers and authorities in one place, sharing information in real-time among all users.
Customers will be able to integrate the platform into existing workflows through APIs and take advantage of its functions while interfacing with their own systems. The platform will also help customers simplify existing processes quickly and efficiently, without investing in multiple systems.
Talk about the importance of an airport cargo community eCommerce platform. The Dubai logistics community will experience an all-new level of performance post implementing the new community platform developed by Kale. The new technology that will be introduced will ensure the user new experience and speed of operations going up by few notches.
DP World and Emirates launched seaair products earlier this year to connect Jebel Ali and Emirates SkyCargo. What is unique with the new system is the air-sea logistics integration, where Dubai will see a common platform that will connect both air and ocean Logistics.
Usually, 40% of cargo moves between sea and air. With the sea-air corridor, the entire supply chain will be more coordinated with complete transparency. This new system will act as a single window where regulatory bodies, dnata, airlines and other supply chain actors can transact and share information.
How vital is it for the supply chain and logistics community to implement next-gen IT solutions? COVID-19 has pushed the logistics industry over the technology tipping point. In just a few months, the crisis brought about years of change in the way logistics companies across the globe do business. The companies have accelerated the digitisation of their customer and supply-chain interactions and of their internal operations by three to four years. The share of digital or digitally enabled products in their portfolios have accelerated by a shocking seven years. We are helping build the digital capability required to emerge stronger from every phase of this crisis-whether it is the phase of respond, rebound, or re-imagine.
What are some of the challenges the logistics industry is facing and how technology can be of assistance? Prior to March 2020, like most other industries, the logistics industry, too, was undergoing a gradual yet permanent transformation in terms of technological adoption. However, since the onset of the pandemic, the logistics industry found itself at the forefront of disruption with heavy restrictions on the movement of goods and people.
The pandemic not only tested supply chain resilience and efficiency to the hilt but also paved the way for accelerated technological adoption across the sector.
Here is how technology plays a pivotal role in enhancing the logistics sector’s operational efficiency.
Complete visibility of the consignment - Visibility in the logistics domain relates to being aware of what is happening to your consignment from the beginning to the end. While this seems deceivingly simple, achieving complete visibility of the consignment while following a traditional, manual business approach is an arduous, time-consuming process.
Milestone-based tracking - Real-time tracking of shipments has indisputably been a game-changer in the logistics industry. Today, by deploying technologies such as AI, ML, IoT, and data analytics; logistics service providers through dedicated customer portals, help companies and other logistics value chain stakeholders get access to milestone-based tracking, thereby enabling them to view the details of the shipment from one hub to another along with the exact date of delivery.
Route optimisation - In a nutshell, route optimisation is the process of discerning the most cost-effective route for a vehicle carrying a shipment.
Paper-less offices and virtual payments - A no-brainer, the advent of technology and widespread digitisation have given way to paperless offices, especially in creating applications for key documents.
Roundtable Green LOGISTICS
Minimising environmental impact
PAVING A GREENER FUTURE
Logistics News Middle East sat down four industry experts to discuss how the industry can minimise the ecological impact and implement sustainable practises
he transport industry – which in-
Tcludes the cargo sector – is one of the largest contributors to greenhouses gas emissions. The need to curb these emissions have been in the works for years now, however the momentum has picked up recently.
Several car, bus and truck manufacturers have announced a timeline of producing only electric fleets or introducing hybrid vehicles that use alternative fuels and do less damage to the environment. Logistics companies all over the world too are announcing sustainable fuel programmes.
Participants in the Logistics News ME roundtable acknowledged that the shift has come from both the policy makers and endconsumers who see themselves and global citizens.
Driving awareness
Hani Tannir, Group Head of Commercial at Al Masaood for the Trucks and Heavy Equipment division believes that awareness is the first step towards sustainability, and it must be a voluntary effort and not policy makers driving the shift.
“The best way for a long-term sustainability solution is to be convinced rather than coerced to become better global citizens. This comes with awareness and leaders achieving certain targets that they promised to achieve, and that then becomes the standard.”
He adds: “There must be a constant need to get better not just more efficient but how to become better global citizens. I hope we can achieve it in green logistic, because that then becomes a scale we need to improve on.
“If we achieve something then that becomes the scale, and then we move forward from there. It must happen, because by all indications if it does not then our generation has caused a disaster.”
Hani is right, logistics companies and vehicle manufacturers need to understand that their operations are contributing to CO2 emissions and find solutions to cut it down, and many are already setting themselves green goals.
In the front seat
Hans Wising, Sales Director for Scania Middle East, reveals that the Swedish manufacturer is committed to achieving a fossil-free commercial transport system and electric vehicles are a crucial part of that journey.
“Driving Scania’s shift into sustainability has become our purpose and part of our core strategy. Together with our customers and partners, we are driving the shift towards a sustainable transport system. We need to break away from the correlations between increasing demand for transport and the increase in carbon emissions, noise, congestion, >>>
and accidents. We are investing a lot in finding sustainable solutions. And we also believe that sustainable solutions will be the new normal,” Hans notes.
Kuwait headquartered Agility is off the same thought, its goal is to reduce its carbon footprint by 25% by 2025 globally. Ayman Kabbara, Commercial Director, explains: “Agility is taking aggressive steps to get greener. We are working with carriers to slash CO2 emissions, rethinking warehouse construction and management, piloting use of solar energy in building cooling, and investing in energyrecapture technology for trucks.
“Agility’s approach is to make our own operations sustainable, as well as the supply chain in partnership with our customers and suppliers and invest in companies championing green technologies that will reshape the future of our industry.”
For Daimler Mercedes-Benz sustainability means permanently creating value for all stakeholder groups that includes its customers, employees, and investors as well its business partners and society.
Johannes Faatz, Head of Business Development, Mercedes-Benz Trucks, says: “There are several perspectives on the sustainability of logistics operations and the delivery of goods. On the one hand we are providing our partners with vehicles which are of the latest technology - in term of safety and fuel efficiency. And on the other hand, is the manufacturing side of it.
“Daimler Truck AG announced in 2019 that all European truck plants shall be CO2 neutral by 2022. Our FUSO production site in Tramagal, Portugal for example achieved that milestone by an increased use of renewable energy sources and process modifications. In general, the strategy of Daimler is to offer a CO2 neutral solution up to 2039 that means we only put CO2 neutral vehicles on the road.”
A relevant solution
Geographic location, climate and regional regulations play a big part in how green logistics can be implemented. Johannes explains: “For us to offer trucks with lower carbon emission in the region, several factors have to be taken into consideration.
“The most important aspect being the availability of the right fuel for the right emission norm. In Europe, Euro VI is mandated by the government. Here in the UAE, Euro IV is compulsory as per the law. When we launched the new Fuso Canter Range in December, we decided to go one step further we directly launched a Euro V emission norm because the fuel is available. Less fuel is consumed on these trucks, it has multiple options and benefits for the customer therefore we went one step further.
“When we look at the region, we have markets that are not able to supply the right fuel to bring the latest technology. So, I think that this is the major huddle, which is existing. The next challenge is to train the operators in the best possible way, so they know how to use the systems which are available in the truck.”
Hans has a similar opinion. “There are several ways we can bring our CO2 emissions down. We can optimise the truck for each application and thereby reducing fuel consumption. The climate here plays an important role in fuel consumption. Vehicle idling is very prevalent, in some cases we see that more than 50% of the journey time the truck in idling - cooling the cab basically. We need to look for alternative ways to cool the cabin or further optimise journey times.”
He adds: “Another factor is vehicle maintenance - trucks needs to be serviced regularly to run efficiently. Additionally, can we get rid of old trucks out on the roads that are heavily polluting the roads.”
Left to right: Johannes Faatz Head of Business Development Daimler Trucks, Daimler Commercial Vehicles Ayman Kabbara Commercial Director, Agility Hani Tannir Group Head of Commercial, Al Masaood Hans Wising Sales Director, Scania Middle East Alternative fuels
With the environmental conditions on the extreme side and the region an emerging market there are several factors to be considered, according to Ayman. “What infrastructure is available in the UAE is not necessarily offered in the rest of the GCC and the Middle East. What we really are struggling with in this region is the scarcity of biofuel and the fact that even if you have an electric car today it will not be very efficient due to the lack of enough charging stations.
“There is an upward trend in the US and Europe to electrify trucks and there is a market for this. It will not be used on the long routes now, but it will be efficient for the eCommerce business - last mile deliveries,” he explains.
“But for biofuel, alternative fuels, hydrogen cells and electric options to be efficient and available in the market we need to work on the infrastructure this not only include the charging stations but the actual road infrastructure.
“The other huge challenge is the abundance of cheap fuel compared to the rest of the world. And for us to choose green options, it must make sense financial and commercially. When shifting from petrol/ diesel engines to an electric alternative, it must make sense in the books. Let us first start with biofuel and there should be additional incentives or tax breaks from the government in the Middle East,” he notes.
To incentivise or not?
Ayman believes that logistics companies need to be incentivised to lower their carbon footprint. “The only incentive that I see today is the type of customers we are dealing with and whether they have a green target. This target means they must look for greener options, this is an area which we can contribute to, an area we can help towards achieving a target.
“Part of our green strategy is to collaborate with partners that have a similar strategy that want to drive their emissions rate down. But at the end of the day, economically it must make sense.”
Hani does not see the UAE government incentivising companies to operate green fleets or imposing a taxation structure to encourage the logistics industry to implement a more environment friendly approach, rather he believes it is a collective effort by all stakeholders. “In the UAE it has always been more of a gentle push than a harsh policy. The government kindly encourages everyone to be more sustainable and community in general has responded, but of course the economic calculation of cost benefit is particularly important. In terms of the infrastructure for electric fleets there are various options that can solve the charging availability.” “Electric charging for trucks is not difficult to achieve. Various companies including Al Masaood are working on finding solutions to provide electric charging points throughout the country and that will encourage people to choose greener options. It is about encouraging the transporters, the logistics companies, and the contractor to migrate to cleaner energy rather than forcing or taxing the solutions,” he says in conclusion.
Hans Wising
Sales Director, Scania Middle East
Hans has been the sales director of Scania Middle East, which is one of 40 Scania commercial business units around the world since January 2019. In this role, he is responsible for the development of Scania’s sales and support system for the dealer network in the Middle East.
Hans joined Scania as a trainee back in 2000 and has held various positions within the central sales and marketing organisation in Sweden as well as in the commercial Scania network. Before joining Scania Middle East, Hans was the service and parts director for Scania in Japan.
Hans holds a master’s in industrial engineering and management from the Chalmers University of Technology in Gothenburg, Sweden.
Fun Fact Hans is an expert ice hockey player and is fond of thrill-seeking sports such as downhill skiing, mountain biking and kitesurfing. He has been to more than 55 countries around the world, and once travelled in a new Scania truck from the factory in Sao Paulo, Brazil to Santiago in Chile, a journey of 3,300km. He is a licensed heavy truck driver.
“I have worked as a sea captain of motor yachts in Spain. I lived in Canada for a year as a student. As a student, I also spent time in Ghana working at a foundry and worked in Japan for Scania. One of my brothers work for Volvo but I have been with Scania for 21 years,” he says.
Hani Tannir
Group Head of Commercial, Al Masaood
Known for his wealth of leadership experience, Hani brings to the Group the strong business network he has established over the years across the Middle East, North Africa, and Sub-Saharan Africa regions. His proven track record of closing ‘big ticket’ business deals serves as the key to the tactical rollout of strategic plans that creates new revenue streams for Al Masaood and bolsters the business development operations of the units placed under his watch. Hani was named Head of Commercial after re-joining Al Masaood in 2020. He first became part of the conglomerate in 1994, transforming and taking its business services and logistics solutions to the next level. He was appointed to different managerial and commercial roles in Al Masaood’s commercial vehicle and equipment, specialist bodybuilding, construction, power, and tyre businesses until 2013.
He then moved on to play multiple manufacturing roles in various companies, including start-ups, in Dubai, Qatar and Jordan. He was involved in strategic re-positioning techniques of some firms based in these three important regional markets.
Hani holds a post graduate diploma in management sciences from the University of Manchester Institute of Science and Technology (UMIST), UK. He obtained his BA (Hons) Economics from Portsmouth Polytechnic, UK.
Fun Fact Hani spends a lot of his spare time on music - listening to an eclectic range from old Arabic to fusion jazz and from blues to classical.
“I have a detailed knowledge of music, composers, singers, instruments, where and when it was recorded. Some are impressed by this, the majority find it a ‘strange thing to be proud of’,” he says.
Johannes Faatz
With an automotive experience of 20 years with Daimler AG, Johannes’ career has seen him work in retail and wholesale in Germany handling direct sales for special applications and eastern European markets. Since 2015 he has been in the MENA region and currently heading the business development team for Daimler Trucks Sales.
Fun Fact Despite working his whole business life with Daimler AG in different functions from smart to Mercedes-Benz Trucks, his early life has been shaped by other manufacturers.
“I come from the area in Germany which is the home of other car and truck manufacturers such as Audi, BMW and MAN. I learned how to drive a truck on a MAN tipper with manual gearshift. Despite growing up in this area, I started working with Daimler AG 21 years ago and stayed with the brand in different functions from retail to wholesale. During my time with Daimler, I have been able to work in Germany, Canada and the regional office in Dubai, UAE,” he says.
Ayman Kabbara
Commercial Director, Agility
Ayman began his career in the logistics industry in 2005 with Expeditors International as a management trainee after completing his bachelor’s degree in Business & Information Systems.
After developing his skills and progressing in several roles at Expeditors, his career continued to excel when he joined CEVA Logistics as a general manager for the Middle East, Africa, Balkans, and Central Asia.
In 2017, Ayman earned an MBA from Hult International Business School and shortly after he gained his executive diploma from MIT in digital transformation. Since 2018 he has used his vast experience and deep knowledge of the logistics industry to serve in his role as Commercial Director for Agility.
Ayman is a guest lecturer at Paris Sorbonne University Abu Dhabi, Heriot-Watt University Dubai, and coach to students at the Hult International Business School in Dubai. He is frequently invited to participate in guest panels and other recognised industry events.
He is a skilled negotiator, expert in sales, dedicated team leader and has built a reputation for developing innovative business strategies. A passionate and ambitious professional, Ayman is equipped with excellent communication skills which include proficiency in English, Arabic and French that has helped him build strong and longstanding business relationships within the industry.
Fun Fact Ayman’s competitive nature and determination has enabled him to train and compete in triathlons and international cross-fit tournaments. He is also a keen motorcycle enthusiast and has organised several autism awareness rides with his motor club.
