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CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE DECEMBER 2022 OF SPEED AND RESILIENCE THEINFRASTRUCTURE The Kingdom of Saudi Arabia has set out on the path to rapid transformation G M P O V Swisslog’s Warehouse Automation E X P E R T I N S I G H T Out-Of-Gauge Cargo R E T A I L The Evolving Landmark Group
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
IN THIS ISSUE THE INFRASTRUCTURE OF SPEED AND RESILIENCE 16 EXPERT INSIGHT OUT-OF-GAUGE CARGO The team of Ceva Logistics, one of the exceptional players for out-of-gauge cargo, pens down the importance of early planning and detailed logistics engineering 20 SOFTWARE MICROSOFT ANNOUNCED THE LAUNCH OF MICROSOFT SUPPLY CHAIN PLATFORM A novel method to shaping supply chains by including sustainability, automation, agility, and changing its users to adapt to changing market conditions 34 GM POV SWISSLOG’S WAREHOUSE AUTOMATION Vibha Mehta, Editor of Logistics News ME, sits down with David Dronfield, General Manager at Swisslog Middle East, to talk about the company’s future, its participation at Gulfood Manufacturing and much more… 36 RETAIL THE EVOLVING RETAIL LOGISTICS LEADER Ashish Sood, Chief Supply Chain Manager of Landmark Group, a regional multi-national conglomerate, talks to us about the changing standards in retail logistics and its future 42 WAREHOUSE LEADING THE PATH Vibha Mehta, Editor of Logistics News ME, interviews Vikas Chadha, as they discuss the company operations and its future… 44 PHARMA THE PHARMA CONNECT Abu Dhabi Airports has joined Forces with Pharma.Aero as a Middle East Strategic Member 50 E-COMMERCE E-COMMERCE TRENDS The FedEx survey, which concentrated on important Asian regions, revealed tendencies comparable to how MENA customers value substantiality in their e-commerce purchase decisions The Kingdom of Saudi Arabia has set out on the path to rapid transformation in its pursuit to diversify away from an economy which is over- dependent on oil. 14 48 26
6 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM All rights reserved © 2022. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact sales@bncpublishing.net T +971 50 440 2706 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 Keep up to date with all the latest news, features and much more on our website and social media platforms. CBNME.COM CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Vibha Mehta vibha@bncpublishing.net EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Joshua Sinanbam aj@bncpublishing.net PHOTOGRAPHER Alexander Bungas EDITOR’S NOTE LNME P utting together the last issue of this year has been quite an intriguing process as we draw to a close. While the rest of the world is anticipating the holidays, the ongoing FIFA World Cup in Qatar has generated enthusiasm in the Middle East. Despite only being held for a month, the world cup has created a platform for businesses to expand. At the FIFA World Cup in Qatar, Visa, the official payment technology partner, offers guests a cutting-edge payment experience (pg. 12). Although gauge cargo could be challenging, CEVA Logistics has outlined the importance of early planning and detailed logistics engineering (pg. 14). Our cover story is about LogiPoint, the leading logistics real estate firm in the Kingdom of Saudi Arabia (pg. 22); Farooq Shaikh, CEO of LogiPoint, talks to us about the business and how it is reshaping the logistics sector. This edition also emphasizes two additional subjects: How Landmark Retail is advancing retail logistics (pg. 32) and how Pharma.Aero is a special cross- industry partnership platform that offers straightforward delivery for medications and vaccines (pg. 40). I wish all of my readers a wonderful Christmas season and a beautiful 2023 year ahead with much more to share. Cheers to reading! Vibha Mehta Editor vibha@bncpublishing.net
10 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM REGIONAL NEWS LNME T he country’s desire for automation solutions is driven by growth in the e-commerce industry and rising demand for industrial and retail warehouses. Acme, one of the regional pioneers in warehousing automation systems, has launched an office in Riyadh to meet the Kingdom’s growing demand. According to Navin Narayan, CEO of Acme Intralog, “Saudi Arabia is on course to augment the non-oil industrial capabilities of the Kingdom by 2030. Adopting industry 4.0 automation solu- tions for both factories and distribution centres are imperative to achieving Vi- sion 2030; we are here to support Saudi companies to achieve further growth through automation and robotics. We have delivered automation solutions to our Saudi customers for nearly a decade from our facilities in Dubai. By invest- ing in a new office in Riyadh, we will be closer to our Saudi customers and can promptly support their operations and service any equipment without down- time. By the end of 2023, we aim to have a team of over 30 professionals in Saudi. We expect the demand for our services to come from industrial produc- tion companies, automotive, FMCG and F&B manufacturers, e-commerce, and fulfilment centres.” Over the last few years, the Acme team has completed ten industrial and warehouse automation projects in Saudi Arabia. These include constructing a cutting-edge distribution centre in Jed- dah for a multinational dairy firm. The customer significantly increased their capacity and improved their warehouse space by implementing automated solutions for truck unloading, pallet stor- age and retrieval, and WMS-controlled storage. The same customer then com- missioned Acme to implement a robotic palletisation system, one of the largest in the region, and an automated truck- loading system. Acme also implemented over six sor- tation centres in KSA for one of the largest global e-commerce organisa- tions. Moreover, the company is cur- rently delivering and commissioning two of the largest automated distribu- tion centres in KSA for a leading fash- ion retailer. To create awareness of the company’s solutions and capabilities, Acme also participated in the Gulfood Manufacturing industry show in Dubai until November 10, 2022. At the Acme stand, visitors could experience Kang- har, a high-density pallet shuttle from Acme, and cobots and automation components. ACME OPENS AN NEW OFFICE IN RIYADH TO SUFFICE THE DEMAND FOR AUTOMATED DISTRIBUTION CENTRES AND WAREHOUSE “ADOPTING INDUSTRY 4.0 AUTOMATION SOLUTIONS FOR BOTH FACTORIES AND DISTRIBUTION CENTRES ARE IMPERATIVE TO ACHIEVING VISION 2030; WE ARE HERE TO SUPPORT SAUDI COMPANIES TO ACHIEVE FURTHER GROWTH THROUGH AUTOMATION AND ROBOTICS.”
LOGISTICS NEWS ME | DECEMBER 2022 | 11 REGIONAL NEWS R AMZIQ, one of the latest ultra-secure and user-friendly blockchain systems, just concluded its yearly initiative at the Smart Chain Forum in Dubai, which was held on November 13, 2022, at the Armani Hotel, Burj Khalifa, in Dubai. With the primary purpose of transform- ing the UAE’s expanding Blockchain technology ecosystem and bringing Blockchain into the lives of people who do not currently have access to it. Cur- rently, just 3% of all prospective custom- ers are aware of and have access to blockchain technology; RAMZIQ claims to be aiming for the other 97%. The event allows delegates to gener- ate ideas and long-term strategies for enhancing the future of digital assets in the sixth technological age. Throughout the discussion, several intriguing themes were explored. Mr Patrick Campos, Chief Strategy Officer of Securrency, was one of the key speakers, discussing the ‘Future of Digital Assets and How Block- chain Is Altering The Banking Industry.’ Also, there was an intriguing panel dis- cussion on ‘Shaping the Future of Digital Assets In The Sixth Era Of Innovation.’ Additionally, Solaiman Al Rifai, Found- ing Partner at RAMZIQ, emphasised to industry executives and innovators at the forum that his business was motivated by the UAE’s objective to be a pioneer in Blockchain and is focused on delivering the technology to every person. As a keynote speaker at the Smart Chain Forum, Mr Al Rifai announced the ZENIQ NFT Marketplace, which oper- ates on the ZENIQ blockchain and allows clients to find, collect, and sell NFTs. Mr Rifai also discussed the ZENIQ App, one of the most exciting aspects of the ZENIQ Ecosystem. The app is a secure smartphone wallet and includes a man- agement system. The software also has the first decentralized and encrypted end-to-end blockchain-enabled chat system. This chat system supports both video and voice. It also improves the capacity to exchange large currencies and tokens. Similarly, the app is compatible with the ZENIQ debit card and the ZENIQ Hub, allowing the app to be biometri- cally secure and offer recovery words. “RAMZIQ aims to guarantee consum- ers now have a digitalised environment where they can leverage Blockchain technology and tokenisation for all their assets,” explained Solaiman Al Rifai. “RAMZIQ will fill a critical market vacuum for digital asset storage and security as the tokenisation of digital as- sets becomes fundamental to the UAE’s financial agenda.” He also addressed the RAMZIQ To- kenization Whitepaper, which analyses Blockchain as a key enabler of Web 3.0 and provides a comprehensive overview of the ZENIQ blockchain ecosystem. The whitepaper discusses in detail how to- kenization is the key motor of the digital economy. “ZENIQ is opening the flood- gates to blockchain technology, making it accessible to everybody, and assuring broad adoption of blockchain technol- ogy.” RAMZIQ’s primary aim through ZENIQ is to reach the 97% of individuals who do not have access to blockchain technology,” Al Rifai remarked. Lastly, Erwin Dokter, CEO of ZENIQ Corporation, commented, “According to forecasts, the tokenisation market will reach a global volume of around US$ 24 trillion by 2027. ZENIQ’s ecosystem and cutting-edge blockchain technology allow users to dive into this promising market.” SMART CHAIN FORUM 2022: RAMZIQ PROMISES TO GROW THE UAE’S IMMENSELY BLOCKCHAIN TECHNOLOGY ECOSYSTEM THROUGH ITS ANNUAL INITIATIVE
12 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM REGIONAL NEWS LNME A .P. Moller - Maersk (Maersk), a Danish shipping corporation, will be introducing a new ocean shipping service, ‘Shaheen Express,’ in the last week of November 2022. The ‘Shaheen Express’ will run between Mundra, Pipavav, Jebel Ali, Dammam, and Jebel Ali before returning to Mundra, providing a consistent and dependable service along the India-UAE-Saudi Arabia axis. The new service will predominantly target the increasing demand for consumers trading between the Indian and Gulf markets, with the goal of providing a faster and more dependable connection to its customers. “The markets have started stabilising, and the ocean networks are normalis- ing after over two years of disruptions caused by the Covid-19 pandemic,” said Bhavan Vempati, Head of Regional Ocean Management, Maersk West & Central Asia. “During this time, not only did we strive hard to ensure we ad- dressed all our customers’ challenges, but we also got a chance to look ahead and understand what their requirements would be in the future.” The India-UAE Comprehensive Eco- nomic Partnership Agreement (CEPA) went into effect in May 2022, significant- ly increasing trade flows between the two countries. FMCG, such as electron- ics, perishables, food, retail products like textiles and clothing, and chemicals, are among the primary commodities travel- ling between these two nations that will profit from expanded capacity. Moreo- ver, the ‘Shaheen Express’ will help pet- rochemical exporters from Saudi Arabia’s eastern area. “Through our customer conversations, we were able to make a more meaningful forecast around the rising demand and proactively deploy a new service to create a supply of space for this demand,” Bhavan adds. Lastly, the’ Shaheen Express’ will offer improved transit time and better predict- ability between Indian and Gulf ports than the existing services. Bhavan further says, “We remain committed to our customers in West & Central Asia and want to bring reliable service to them. We will continue build- ing robust partnerships with our custom- ers and design solutions that create value for their business and contribute to the region’s overall economic growth.” The ‘Shaheen Express’ will include two vessels with a nominal capacity of 1,700 TEUs per week. A.P. MOLLER – MAERSK TO LAUNCH ‘SHAHEEN EXPRESS’ LINKING THE INDIA–UAE– SAUDI ARABIA CORRIDOR
LOGISTICS NEWS ME | DECEMBER 2022 | 13 REGIONAL NEWS A ccording to a recent DP World study conducted in October, the responses of hundreds of freight forwarders portray a grim picture of the industry’s future - with climate change and access to talent weighing heavily on company resilience, the capacity to establish seamless supply chains is gloomy. While inflation is the primary source of concern for 63% of respondents, geopolitical tensions are a vital source of concern for 56%. The poll findings were presented at the Global Freight Summit, a three-day conference that brings industry experts, executives, and innovators together under one roof to share information and focus on how data can enhance connectivity in global supply chains. The event was inaugu- rated by His Highness Sheikh Ahmed bin Saeed Al Mak- toum, President of the Dubai Civil Aviation Authority, Chairman and CEO of Emir- ates airline and Group and Chair of the World Logistics Passport (WLP) Global Steer- ing Group, and attended by Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, as well as mem- bers from the Digital Freight Alliance (DFA). “Global supply chains are significantly impacted by the pandemic, geopolitical ten- sions and the looming threat of the global climate change crisis. These challenges have demonstrated that many parts of the global supply chain infrastructure are frag- ile. These rising concerns make it imperative for logis- tics operators to develop the tools and solutions that offer real-time visibility across the entire supply chain. This can allow trade routes to be fit for purpose, thus facilitating a more seamless movement of trade around the globe,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World. This has severe implica- tions for businesses. Due to uncertainty, almost 10% of respondents stated they had altered the markets in which they conduct business. Indeed, these concerns will occupy freight forwarders’ minds for the foreseeable future. 78% expect geopo- litical tensions and inflation to remain problematic over the next five years, with two-thirds (66%) feeling it is ‘difficult to predict when eco- nomic disruptions will end. Encouragingly, many in the supply chain industry ap- pear cautiously optimistic. Three-quarters (75%) of the respondents said they expect technology to be a significant factor in easing the current supply chain woes. In fact, more than half (56%) believe digitalization will be the biggest driver of efficiency, reducing bottlenecks and supporting the industry as we advance. Technology will considerably impact the sup- ply chain, with three in four saying it will lead to cost sav- ings and a more remarkable ability to target and deliver to new customers. However, many needed helps incorporating technol- ogy into their sector, with a third indicating they wanted to but needed to know how. It’s hardly a surprise that half of the freight forwarders claimed their company’s digi- tal transformation journey is taking longer than expected. “The uncertainties of to- day’s world are making trade harder, increasing the discon- nect at various points across the whole supply chain,” says, Mike Bhaskaran, Group Chief Operating Officer of Digital Technology at DP World. “The freight forward- ing community must act to mitigate risk to build a more resilient future. This is why we are proud to host the first- ever Global Freight Summit here in Dubai. The event will bring together the brightest minds from the whole supply chain for discussions that will help us agree on concrete actions to solve some of the major challenges keeping the community awake at night,” he added. Other difficulties freight forwarders face includes ris- ing and uncertain freight rates, with 80% citing this as the most significant concern keeping them awake at night. Another big concern is a lack of funding choices, which 37% of those polled claim has hampered their capacity to deliver goods. Surprisingly, while the epidemic has affected every business, including logistics, it has resulted in several good outcomes. A third of freight forwarders reported that it sparked a much-need- ed reform of their firm, with 41% reporting that it has im- pacted how they track ship- ments. Over half (54%) said it had put more significant pressure on management to operate more sustainably. ACCORDING TO DP WORLD’S RESEARCH, INFLATION AND GEOPOLITICS ARE THE BIGGEST WORRIES FOR THE GLOBAL SUPPLY CHAIN IN THE NEXT FIVE YEARS
14 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM PAYMENT SOLUTIONS LNME W ith over one million fans anticipated to attend the event, Visa has placed 5,300 contactless pay- ment stations at official FIFA venues, making FIFA World Cup Qatar 2022™ the larg- est payment-enabled FIFA tournament ever. Visa will also test new payment tech- nologies to provide fans with convenient and secure digital payment options. The FIFA World Cup™ offers Visa a worldwide platform to demonstrate and test innovative technologies, improve the fan experience, and leave a lasting imprint on the host country. Visa will deliver many digital payment options to Qatar, including a few restricted pilots, to show how future Visa payment solutions may work. Pay with Your Face: Facial recognition technology will be deployed for the first time in Qatar, is a partnership between Qatar National Bank (QNB) and POP ID and is backed by Visa via tokenization. After initial enrolment, users may use their faces to authenticate payments instead of a physical card or mobile phone. It will be trialed at three Flat White Specialty Coffee locations. Card Art Gets Animated: Visa is pioneering a digital card issuing option for restricted cardholders in Doha as customers get more accustomed to obtaining goods instantly. A digital prepaid card will be issued quickly after scanning a QR code and may be linked to a mobile wallet. The digital card will have animated card graphics with the official mascot La’eeb, illustrating a future in which users can add more customization and digital animation to their Visa cards. Accepting Payments Gets Simpler for SMBs: The Visa Tap-to-Phone solution, developed in collaboration with three Qatar-based banks, is now accessible to VISA INTRODUCES UNIQUE PAYMENT SOLUTIONS OPTIONS FOR FIFA WORLD CUP QATAR 2022™ As the FIFA World Cup Qatar 2022™ approaches, Visa, FIFA’s Official Payment Technology Partner, has prepared a payments network that will allow cashless purchases throughout all official venues, including eight stadiums and the FIFA Fan Festival.
LOGISTICS NEWS ME | DECEMBER 2022 | 15 VISA INTRODUCES UNIQUE PAYMENT SOLUTIONS OPTIONS merchants in Qatar that wish to accelerate their capacity to take digital payments ahead of the projected tourist inflow. Visa Tap to Phone enables retailers to accept contactless payments on their existing Android NFC-enabled handsets by simply installing an app. Tap-to-Ride Around Doha: Maintaining traffic flow has been a top priority during the FIFA World Cup™, and Visa, in collaboration with Qatar’s Ministry of Transport, is facilitating contactless payment acceptance on taxis so fans and Qatari residents can pay for their trips with their Visa card or smartphone, making paying for their journeys in and around Doha more quickly and easily. Visa debuted Visa Masters of Movement earlier this month, a first-of-its-kind hybrid experience including an interactive pitch at the FIFA Fan Festival™ in Doha, where fans can create digital art inspired by their unique moves. In collaboration with Crypto.com, eligible fans can mint this digital art into their own NFT. Dr Saeeda Jaffar, Senior Vice President and Group Country Manager for GCC at Visa, says, “As FIFA’s long-standing partner, Visa wants to give football fans from around the world the best way to pay in Qatar while experiencing exciting innovations such as the fusion of art, football and technology at Visa’s Masters of Movement venue. With thousands of contactless payment terminals, FIFA World Cup Qatar 2022™ promises to be the most payment-enabled FIFA tournament ever for the more than one million fans coming to enjoy the magic of football.” Since 2007, Visa has been FIFA’s Official Payment Technology Partner. As a global sponsor of both men’s and women’s football, Visa seeks to provide experiences that bring people closer to the action. Whether they are among the one million as a global sponsor of both men’s and women’s football or seek to provide experiences that bring people closer to the action. Whether they are among the one million expected in Qatar or the five billion spectators predicted globally for this year’s event. In addition to providing the most recent payment innovations at official FIFA venues, Visa is looking for ways to further its commitment to improving people’s lives through the power of sport through programs like Financial Football, a video game that integrates entertainment and education in an action-packed virtual football tournament. Tim Cahill and Maxi Rodriguez
16 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM EXPERT INSIGHT LNME T his article defines complex and out-of-gauge (OOG) cargo as items with estimated measures of more than 70 tons, five meters in height, four meters in width, and 15 meters in length per single unit. Typical OOG cargo turbines, trans- formers, windmills, platforms, generators, big cranes, and so forth. OOG cargo fre- quently possesses the majority, if not all, of the following characteristics: It has a high economic value and a long lead time, and it is prone to sudden movement, par- ticularly during shipment and handling. As a result, there are no margins for error when it comes to on-time and damage-free freight delivery to the project site. Assume that OOG cargo is destroyed during transit or handling or is not delivered to the site on time. In such an instance, the principal contractor’s contractual penalties considerably outweigh any savings realized by pressing logistics suppliers to take unexpected risks that may result in little cost savings. It isn’t worth the risk. Even if the insurance covers losses up to the cargo invoice value, the insurance provider is unlikely to reimburse the contractor for delay responsibility and reputational damage completely. For example, manufacturing a new wind turbine can take around six months, as this type of OOG cargo cannot simply be taken from the manufacturer’s existing stock. Furthermore, efficient logistics for out-of-gauge (OOG) freight necessitates rigorous research early in the project cycle. This analysis should be included in the project feasibility assessment. The following text includes case studies altered to highlight best industry practices. OUT-OF-GAUGE CARGO The team of Ceva Logistics, one of the exceptional players for out-of-gauge cargo, pens down the importance of early planning and detailed logistics engineering
LOGISTICS NEWS ME | DECEMBER 2022 | 17 OUT-OF-GAUGE CARGO CASE STUDY 1 A GOLDEN TRIANGLE: EARLY COLLABORATION BETWEEN THE CONTRACTOR’S LOGISTICS TEAM, A LOGISTICS DELIVERY PARTNER AND THE OOG CARGO MANUFACTURER A multi-modal mode of transportation was planned for 70-ton, four-meter-high transformers with vertical alignment restrictions (Road – Rail – Road). The road was gravel for 20 kilometres. Early joint planning team workshops confirmed that transporting a transformer on a gravel road could damage its internal components and that this damage would not be visible upon preliminary inspection. The study was carried out during the early stages of project planning to determine the best gravel road improvements and to ensure that the project schedule and budget included the necessary civil infrastructure work. As a result, the gravel road was shaved, and two meters of exposed pipes were covered to disperse the weight generated during the movement. The infrastructure improvements were completed on time and without any downtime of equipment or assets. Most importantly, project execution at the site did not stall, as it would have if the road improvements had not been completed ahead of the transformers’ scheduled transportation. The components were safely transported to the site with no internal component damage, thanks to an early planning strategy shared by all parties involved. CASE STUDY 2 WIND FARM PROJECT: A SMALL CHANGE THAT MADE A BIG DIFFERENCE The project site was in a mountainous region of the African continent, and it required the delivery of windmill blades measuring approximately 60 meters in length. Two and half years before construction began, the EPC contractor decided to involve the delivery of its logistics partner. The logistics provider was asked to evaluate the initial route plan and report to the client. The detailed study of the site and road conditions revealed that following the planned route would necessitate significant changes, costing the client more than $20 million. Instead, following a thorough logistics engineering study, it was proposed to change the site’s entrance point and ‘shift’ the site by one kilometre to allow for an alternate road. The plan was approved and carried out successfully. Summing up the readings from the aforementioned case studies, Axel Herzhauser, Regional Managing Director Middle East Africa at CEVA Logistics, says, “Getting the logistics off to a great start involves a healthy communication flow between the contractor’s project management team, a competent logistics delivery partner and the manufacturer. “The sooner this communication starts, the higher the likelihood of a smooth logistics operation delivery. On the contrary, if the contractor’s project logistics team is the last department to be informed about detailed cargo “Two and half years before construction began, the EPC contractor decided to involve the delivery of its logistics partner.” >>>
18 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM specifications and delivery timelines, the logistics operation is set up for failure. Early involvement from a logistics Subject Matter Expert (SME) allows contractors and project owners to benefit by receiving free consultancy.” CASE STUDY 3 THE UNDERLINING IMPORTANCE OF IMPLEMENTING A LOGISTICS PLAN It is critical to implement the logistics plan that was created because of careful and collaborative planning. Plan deviations should be kept to a minimum. Such a logistics plan typically includes tasks and activities covering all logistics operations. These tasks and activities can thus be seamlessly integrated into the overall project schedule. Because the logistics plan’s activities are interconnected, any abrupt, frequent, or significant changes can render the entire plan useless. Early logistics operation planning typically includes a sequential series of activities and timelines that cover, among other things, fleet booking in addition to making recommendations to the client. The plan covers all actions required to ensure ocean fleet availability, practical storage areas, thorough route assessment and civil works planning, booking of unconventional vessels if required, bracing for specific modes, heavy haulage and many other activities. A deviation from a logistics plan could easily result in vessel unavailability or a lack of skilled workers. Luis Gonzalez Garcia, Project Logistics Global EPC and Infrastructure Expert at CEVA Logistics, emphasises, “Delivering out-of-gauge cargo most often requires a set of thoroughly planned and intricately intertwined activities. Securing adequate fleet availability must be aligned with the planned on-site delivery target dates. Logistics activities also cover securing suitable handling equipment and a lashing plan to match the chosen mode of transport. We have seen time and time again an attempt to change the logistics plan to make last-minute cost savings profoundly, and it hardly ever ends well. Some changes to the plan do and will occur, and they are often easily accommodated. However, major changes to an agreed-upon logistics plan in the execution phase pull the rug out from under the entire logistics operation.” Eventually, sticking to the plan is critical and should always be reinforced, especially for projects requiring OOG cargo to be delivered on short notice. A case study below depicts a series of activities to keep a power plant operational. EXPERT INSIGHT LNME
LOGISTICS NEWS ME | DECEMBER 2022 | 19 OUT-OF-GAUGE CARGO CASE STUDY 4 FOLLOWING THROUGH A DETAILED LOGISTICS PLAN TO DELIVER OOG POWER ENGINES The 78-ton power plant engine was required to travel 3,530 miles (5,680 kilometres) between continents in record time. The cargo’s nature and destination presented the project with unique and complex challenges. The delivery site’s distance from the coastline, poor infrastructure, and limited installation equipment hampered the cargo delivery. The project had several distinct phases planned and sequenced A-to-Z, and the logistics operation was carried out exactly as planned. If the delivery failed to carry out any planned activities, the entire operation would have been significantly delayed. The first step was to decide on a delivery method, and after obtaining permission to use the military terminal, it was decided to use an Antonov An- 124 cargo plane. This was followed by securing the plane by the program. The next step was to deploy a 300-ton mobile crane to lift the engine onto the loading ramp, which was pulled into the aircraft. Before the plane took off, the team planned to use additional lashing to keep the engine safely in place and avoid the risk of movement during the flight. When the engine arrived on time, it was skidded out on a rail, jacked up on elephant legs, and tandem lifted to the trailer. Because the roads from the airport to the plant were congested and in poor condition, the logistics plan identified the need for road restoration. The work was done ahead of time and following the plan. Furthermore, the main road was closed during the final leg of transportation, and local police escorted the OOG vehicles to the plant. The crew at the job site used jacking and skidding to remove the engine from the trailer. Given the plant’s limited equipment and space, this was also planned. Despite meticulous planning and preparation, not everything goes exactly as planned, especially since the logistics plan may be implemented two to five years after a contractor has been commissioned to deliver a project. In such cases, experience is critical to keeping the project on time and on budget while minimizing changes to the master plan. Siddiq Khatri, Regional Manager Heavy lifts & Projects Specialist at CEVA Logistics, adds, “I cannot emphasise enough the importance of diligent planning and replanning. The replanning process must always happen within the framework of an existing logistics masterplan.” “On one of our projects where we were transporting a 100-ton steam turbine, we realised that the main road was being excavated for placing culverts for the rainwater. Instead of changing the route, which would have jeopardized the entire logistics plan and caused a domino effect on all logistics activities, we requested that the work be suspended. As a solution, we used sandbags to fill the excavated area and covered the top with steel plates. This method permitted the road to sustain the ground-bearing pressure generated during the movement of the turbine. This decision was made only after we calculated our quick-fix solution’s safety factors and the bearing capacity. We managed to move three turbines in one go safely.” In conclusion, Finally, Early engagement of all major stakeholders is critical throughout the logistics operation execution phase. Unsurprisingly, current trends reveal that many worldwide EPC contractors are taking a mature approach to logistics and selecting excellent logistics providers with proven track records. It is vital to have logistics partners capable of delivering a highly comprehensive logistics plan and are prepared to take ownership and responsibility for delivering OOG cargo to the site on time, all while safeguarding the cargo’s integrity during the logistics operation. Thus, cheap logistics for OOG goods are unaffordable. “EARLY LOGISTICS OPERATION PLANNING TYPICALLY INCLUDES A SEQUENTIAL SERIES OF ACTIVITIES AND TIMELINES THAT COVER, AMONG OTHER THINGS, FLEET BOOKING IN ADDITION TO MAKING RECOMMENDATIONS TO THE CLIENT.”
20 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM SOFTWARE LNME C harles Lamanna, Corporate Vice President, Business Applications & Platform, shares her vision of how Microsoft aims to change the future of Logistics and Supply Chain by launching this platform. While Microsoft Supply Chain Platform is hoping to hold a broad vision, here is everything you would like to know about the game-changing platform. Well, supply chain disruptions are not new, but their complexity and rate of development exceed enterprises’ abilities to solve global challenges. Many current solutions are exclusively focused on supply chain execution and management and need to prepare to accommodate this new reality. Correspondingly, Enterprises are dealing with petabytes of data spread across legacy systems, Enterprise Resource Planning programs (ERPs), and custom solutions, resulting in a fragmented view of their supply chain. Likewise, the agility and resilience of an organization’s supply chain will determine how well it can link its data and orchestrate operations across all relevant systems. However, to adapt swiftly to changing market conditions, supply chain software must improve visibility across data sources, foresee and reduce disruption, enhance faster communicational patterns, and fulfil orders – all while being sustainable and safe. Furthermore, Microsoft announced the Microsoft Supply Chain Platform in November, which enables organizations to maximize their existing supply chain investments by bringing the best of Microsoft AI, collaboration, low code, security, and Software as a Service (SaaS) applications to scalable platform. As part of the new Microsoft Supply Chain Platform, we are also releasing a preview of the Microsoft Supply Chain Center. The Supply Chain Center ANNOUNCED THE LAUNCH OF MICROSOFT SUPPLY CHAIN PLATFORM MICROSOFT A novel method to shaping supply chains by including sustainability, automation, agility, and changing its users to adapt to changing market conditions
LOGISTICS NEWS ME | DECEMBER 2022 | 21 helps clients get up and running quickly by providing a ready-made ‘command center’ those interfaces natively with existing supply chain data and applications. THE MICROSOFT SUPPLY CHAIN PLAT- FORM – is an open, collaborative, and modular foundation for data and supply chain orchestration. It provides a wide range of capabilities throughout Mi- crosoft to enable companies like Grupo Bimbo, Mercedes-Benz, and Tillamook to create their specialized supply chain solu- tions. With the past announcement, the platform will be aiding in making it easier for clients to use the Microsoft Cloud to improve their supply chain. The Mi- crosoft Supply Chain Platform provides building blocks across Microsoft Azure, Dynamics 365, Microsoft Teams, and the Power Platform for customers to adopt capabilities that address their specific sup- ply chain needs. With Dataverse, custom- ers can use hundreds of data connectors to gain visibility and act across their sup- ply chain. And lastly, The Power Platform also enables custom workflows, data re- porting, and applications that connect to existing Supply Chain systems. PARTNERING TO EMPOWER CUSTOMERS IN SUPPLY CHAIN TRANSFORMATION – The Microsoft partner ecosystem will remain crucial in supporting client supply chain resilience and agility. Partners may use Dynamics 365 Supply Chain Manage- ment, Microsoft Azure, Microsoft Teams, and the Power Platform in conjunction with the Microsoft Supply Chain Plat- form to develop integrated solutions. Ac- centure, Avanade, EY, KPMG, PwC, and TCS are among the supply chain partner ecosystem’s advisors and implement- ers. In addition, the Microsoft Supply Chain Platform integrates Blue Yonder, Cosmo Tech, Experlogix, Flintfox, InVia Robotics, K3, O9 Solutions, SAS, Sonata Software, To-Increase, and many more to assist clients in choosing the optimal solu- tion for their supply chain needs. ACCELERATING BUSINESS AGILITY AND EFFICIENCY WITH THE MICROSOFT SUP- PLY CHAIN CENTER – The Microsoft Sup- ply Chain Center is in preview and at the heart of the Supply Chain Platform. The Supply Chain Center offers practitioners a ‘command center’ experience for inte- grating data from current supply chain systems like Dynamics 365 and other ERP providers such as SAP and Oracle, as well as stand-alone supply chain so- lutions. In Supply Chain Center, Data Manager provides data ingestion and orchestration to offer insight across the supply chain and push action back into execution systems. Our launch partners C.H. Robinson, FedEx, FourKites, and Overhaul, will provide native experiences within the Supply Chain Center through- out the preview period. EXISTING DYNAMICS 365 SUPPLY CHAIN MANAGEMENT CUSTOMERS WILL AUTO- MATICALLY GAIN ACCESS TO THE SUPPLY CHAIN CENTER as part of their current agreements. The Supply Chain Center includes pre-built modules that address supply chain disruptions across supply and order fulfillment, as outlined below: > The supply and demand insights module adopts advanced Azure AI models to predict upstream supply constraints and shortages through supply intelligence. Organizations can perform simulations using their supply chain network data to predict out-of-stock, over-stocking, or missed-order lines. With smart news insights, which provide relevant news alerts in the Supply Chain Center on external events, supply chain practitioners can make decisions and plan with real-world event information and historical insights for product demands. > The order management module in Supply Chain Center intelligently orchestrates and automates fulfillment with a rules-based system using real-time omnichannel inventory data, AI, and Machine Learning. Organizations can quickly meet future order volumes and fulfillment complexities by extending their capabilities with pre-built connectors to specialized technology partners for order intake, delivery and third-party logistics services. Existing Dynamics 365 Intelligent Order Management customers will automatically get access to Supply Chain Center and the order management module at launch. > With secure, built-in Teams integration, clients may reduce supply restrictions by working in real-time with external suppliers to obtain new supply sources, fix transportation challenges, and communicate upstream and downstream implications depending on changes. > By incorporating partner modules into the Supply Chain Center, users can quickly access solutions like freight visibility from Overhaul. Because everything runs on Dataverse, the data is consistent regardless of whatever module you use. This eliminates the need to copy and paste information and reconcile which reports have the most up-to-date information. Additionally, Microsoft announced Daimler Trucks North America, iFit, and Kraft-Heinz as some of their Supply Chain Center preview customers. “Our collaboration with Microsoft is critical to our supply chain transformation. The platform allows our team to be more agile – assessing risk and opportunities faster than ever before. Simply put, it provides the end-to-end visibility we need to keep our products on people’s tables across North America, and there’s nothing more important,” says Mitch Arends, Senior Vice President, Head of Operations, Kraft Heinz North America. MICROSOFT ANNOUNCED THE LAUNCH OF MICROSOFT SUPPLY CHAIN PLATFORM
22 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM ECONOMICAL IMPACT LNME T he FIFA World Cup is bringing new opportunities to Qatar and the GCC nations, thus enabling economic growth across a range of critical sectors such as travel and tourism, hospitality, and infrastructure. This World Cup will pave the way for Qatar to enjoy potential near-term economic gains but also highlights the logistical challenges of managing the event, which will likely lead to positive spill over effects for the rest of the region. This trend is expected to continue as these economies are looking to capitalise on the attention that a global event like captures. OPPORTUNITIES Ever since Qatar was picked to host the Football World Cup, companies in GCC countries have sensed the opportunities which are suddenly presented in front of them, and they are all set to reap the rewards as the mega event kicks in November 2022. Over the past few years, Qatar, along with the countries expected to benefit from this mega event (such as UAE), has been working with regional and global entrepreneurs and innovators to provide solutions which will directly support them in managing the logistical challenges expected to manage a sporting event of such large scale. These entrepreneurs and innovators are mostly SMEs (Small and Medium Enterprises) and MSMEs (Micro, Small and Medium Enterprises) who rely on trade finance to increase the volumes of goods and services they trade, fulfil large contracts and scale operations internationally. CHALLENGES FOR THE SMES However, opportunities come with challenges as SMEs usually face funding gaps as long credit periods can drain their finance. These companies typically have more difficulty obtaining credit from formal financial institutions. This is IS A CRUCIAL TOOL FOR SMES CAPITALIZING ON A MAJOR SPORTS EVENT WHY TRADE FINANCE Ankit Goel, Senior Vice President, Global Accounts at MODIFI puts down his thoughts on utilising significant sports events as an incentive in Trade Finance
LOGISTICS NEWS ME | DECEMBER 2022 | 23 mainly due to information asymmetry, lack of previous credit history, legal documentation and many more., leading to the unwillingness of traditional lenders to provide financing. Even if they get funding, it typically involves lengthy approval processes, requiring hard collateral such as movable property and other onerous documentation. These lenders adopt a risk-averse approach to trade financing that’s likely to continue in the future, especially regarding SMEs who want to trade internationally. Another prevalent issue for SMEs has been managing their trade documents – packing lists, warehouse receipts, certificates of origin, and export licenses. This whole process is manual and paper- intensive. Digitising this entire shipping documentation process can save SMEs time in delivering cargo and eliminate potential shipment delays – ultimately saving money. ROLE OF DIGITAL TRADE FINANCE FIRMS FinTech trade finance firms such as MODIFI have emerged to help businesses fund global partnerships and secure digital trade financing through game-changing non-recourse factoring. These companies use technology solutions to identify credit-worthy borrowers and are usually less insistent on borrowers providing collateral. Equally, because their due diligence is technology-driven, it is faster and more accurate than the traditional people-driven approach. HOW MODIFI MANAGES ITS RISKS MODIFI generally adopt a more customised approach to making lending decisions over a one-size-fits-all process. It leverages data to assess the risks of a growing pool of underserved merchants. For example, digital trade financing can present a holistic view of a seller’s risk profile by analysing multiple operational data points from credit insurance companies and additional, underused sources. Another advantage of a data- based infrastructure is that the system continually gets better at identifying the types of information most helpful in determining the risks involved with any particular buyer or seller. PAPERLESS TRANSACTIONS Fintech firms digitise the entire shipping documentation process, saving SMEs time in delivering cargo and eliminating potential shipment delays – ultimately saving money. One of the most pressing problems digital trades solves is a dramatic decrease in paperwork through digital economy agreements (DEAs), which help SMEs gain access to digital trade opportunities, electronic invoicing, e-signatures, cross-border data protection and digital IDs—ultimately connecting overseas business partners more efficiently and assisting companies to improve productivity and reduce expenses. This also reduces fraud risk through greater control of the original and eliminating the possibility of losing documents. HOW DOES IT WORK By leveraging digital trade financing, small and mid-sized traders can get invoices paid early rather than wait up to 120 days or even longer. Moreover, by leveraging numerous data sources, digital trade financiers have a better understanding of risk for SMEs and can, therefore, not only vet and confirm the buyer’s legitimacy but also ensure the payment of the invoice, even if the buyers were to go bankrupt. This eliminates credit risks that often prevent sellers from offering more favourable contract terms to buyers. With Fintech solutions SMEs can optimise their cash flow without needing collateral or a Letter of Credit. They can: Apply for finance in 5 minutes and have the cash in their account 48hours later; remove credit risk and trade confidently; reduce payment disputes; make their cash flow more predictable; free up current lines of credit for investing in growth-producing initiatives like purchasing equipment; seamlessly track their shipments. In conclusion, the renewed collaboration between Qatar and GCC nations will encourage reciprocal trade and foster economic stability for the GCC region. This will provide further opportunities for businesses within this region to grow. FinTech companies can make the supply chain more efficient for these businesses by providing alternative solutions that cannot get traditional financing. Digital trade finance tools can help these businesses reduce their credit risk, forecast cash flow, and allocate working capital. In addition, having access to a digital trade finance solution can help companies to explore a broader customer and supply base, possibly discovering new channels to buy or sell goods. WHY TRADE FINANCE IS A CRUCIAL TOOL FOR SMES CAPITALIZING ON A MAJOR SPORTS EVENT Ankit Goel, Senior Vice President – Global Accounts, MODIFI “Digital trade finance tools can help these businesses reduce their credit risk, forecast cash flow and allocate working capital. In addition, having access to a digital trade finance solution can help companies to explore a broader customer and supply base, possibly discovering new channels to buy or sell goods.”
24 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM N eeraj Srivastava is a forerun- ner of corporate blockchain technology and one of the early proponents of utilizing blockchain to transform the financial and supply chain sectors. He is the Founder and CTO of DLT Labs, a global pioneer in developing block- chain solutions leveraging distributed ledger technology. Furthermore, Neeraj managed a team that was one of the first in the industry to introduce Apple Pay. During this period, in 2011, he stumbled upon the Bitcoin code base and became intrigued, delving deep into the blockchain code. He saw right away that blockchain could be used for more than just bitcoin and could potentially transform financial cryptog- raphy. Neeraj has spent the last decade raising awareness of this issue world- wide, beginning with the financial and supply chain sectors. Here the article takes the reader through how the technology has been scaled up to solve challenges in incon- gruent systems, Neeraj shares… The once fledgling industry of enter- prise blockchain, which was initially closely integrated and associated with cryptocurrencies, has now grown its wings, and flown the nest to revolu- tionize a score of global sectors from money transfers and financial services to personal identity security, mining, NFTs, healthcare, as well as logistics and supply chains. Despite the initial doubts and disil- lusionment surrounding its adoption, several global technology firms, and enterprises – led by our very own DLT Labs – have disproved naysayers with proof of concepts, case studies, and real-life applications transforming industries around the globe. Although I have witnessed the growth of blockchain from its birth over a decade ago, I have found its journey over the last five years truly fascinating as the technology has been scaled up to solve challenges in incongruent systems such as direct store delivery, invoicing, inventory tracking and more – and no industry has needed these solutions as much as the supply chain sector. The global supply chain sector, which still remains chaotic to a large extent, has not just needed ‘a technological intervention’ to rescue it from a score of challenges and constant disruption, but more importantly, has needed the ‘right technological intervention’. THE CHASM BETWEEN DATA CREATION AND BUSINESS OUTCOMES In fact, for many years now, global organizations have invested billions of dollars in advanced technologies to create, aggregate, streamline, process, interpret, manage, and forecast data to save an industry wrought with lengthy paper trails, human errors, legacy systems, complicated cross-border pay- ment, clandestine third-party contracts, and so much more. On one hand, the digital ‘creation of data’ within supply chains has stepped up. Enterprises have begun recording transactional data through ERPs, CRM, SCM, as well as IoT data through RFID, bar codes, X-Ray cam- E-MONEY IS BLOCKCHAIN A REALISTIC SOLUTION TO GLOBAL SUPPLY CHAIN COST AND EFFICIENCY CONCERNS? LNME NEERAJ SRIVASTAVA, FOUNDER OF CTO LABS AND DLT LABS, SHARES HIS THOUGHTS ON THE SHIFTING DYNAMICS BECAUSE OF BLOCKCHAIN TO REVOLUTIONIZE THE FINANCIAL AND SUPPLY CHAIN INDUSTRIES
LOGISTICS NEWS ME | DECEMBER 2022 | 25 eras, QR Codes, scanners, and more. However, on the other hand, every other step of the process that follows the “creation” stage still lacks the tech- nology support it needs. To put this in perspective, the global spend on enterprise IoT tech – which aggregates data - is expected to reach a whopping $411.9 billion by 2025, according to IoT Analytics Research 2021. Yet, according to Allied Mar- ket Research, global investments into enterprise AI – which interprets, man- ages, and offers actionable intelligence on data – are a fraction of that, with a projected $22.46 billion by 2026. Hence, the current chasm between data aggregation and business outcomes is evident. As a result, the supply chain industry remains broken with a lack of trace- ability and provenance, poor sustaina- bility metrics, and continued consumer impact due to resulting shortages. BENEFITS OF DISTRIBUTED LEDGER TECH- NOLOGY To address these supply chain concerns, no other technology has come as close to supporting the supply chain industry as distributed ledger technology (DLT) has – and that’s a fact. In its simplest form, DLT can be explained as a distributed electronic ledger that is shared between multiple stakeholders within a network, which allows either all of them and/or the ‘permissioned’ ones among them to access and make updates on the ledger without tampering with it. The fact that the technology offers simultaneous access, validation, and record updating without the need for a central authority, makes it not only distributed but also transparent, im- mutable, trustworthy, and secure – and each of these facets greatly benefits the fragmented supply chain industry. For instance, supply chains have historically relied on trusted third par- ties to cross-check, verify, and validate invoices and contracts, which are both extremely time-consuming and expen- sive to maintain in the long term. This wastage of time and money on third parties can be eliminated by enterprise blockchain and distributed ledger technology, which allows stake- holders to keep copies of an invoice, transaction, or payment, which is then digitally verified based on consensus and cryptography, thus ensuring re- cords can’t be counterfeited or altered. DATA SILOES VS DATA ‘TALKING TO’ DATA Furthermore, the way that most supply chain enterprises store, organize, op- timize, and process data in traditional servers and legacy client management systems is far from ideal. Such serv- ers and systems operate with multiple levels of data, broken down storage, outdated data processing software, data locks – where multiple clients can’t access the same data and data siloes – where the data cannot ‘talk to’ other data. Distributed ledger technology can not only store data immutably but also organize and process data accurately, as well as smart action contracts when data ‘talk to’ data. For instance, this is how the time-con- suming and error-prone process of data reconciliation is simplified remarkably by DLT. In the supply chain industry, processes often grind to a halt when something as simple as an ‘invoice’ and the corresponding “goods received documentation” don’t tally. The recon- ciliation process is tedious because it is filled with paperwork and takes a long time for experts to fix. With DLT, this data is sent to the blockchain directly from systems of record. This reduces human error that comes from continuous manual data entry at every point of the supply chain and simultaneously grants visibility to all the relevant participants. Suppose there is a discrepancy be- tween the documentation of an invoice and the goods received. In that case, the reconciliation process is simple and swift because the blockchain business logic identifies it and can determine the root cause of it, whether it is an error in a unit of measure of the quantity delivered. Furthermore, DLT also offers auto- mated dispute resolution by triggering certain rules and digital coding to fix the discrepancy data through a con- sensus. This decision, along with the applied rules, is visible to all stakehold- ers in the supply chain. To establish a comprehensive, immu- table audit history, all the initial data, the discrepancies identified, the con- sensus, as well as the resulting decision and action taken is all stored within the distributed ledger blockchain. “HYPER-AUTOMATION ON STEROIDS” DLT Labs has already brought this idea to life through its partnership with Walmart Canada. DLT Labs achieved this through its DL Asset Track technology, which allows organizations such as Walmart to store all their data on a single ledger, which then gets deeply integrated with smart contracts. For example, for Walmart to calcu- late invoices, it needs a bunch of data such as fuel rates, lane charges, load information, discounts, taxes, IoT data, mileage, contractual and payment data, and so much more. DL Asset Track allowed Walmart and its carriers to store all this data on a single enterprise blockchain and configure a smart contract, which governed the immutable data and made it actionable. This granted great visibility and audit abilities to all users on the blockchain network and in turn, reduced disputes and raised trust. DLT Labs helped Walmart reduce disputes with its carriers from 70% to less than 1% while simultaneously enabling Walmart – through distrib- uted ledger technology – to pay more than 95% of their invoices without any human touch. As this “hyper-automation on ster- oids” using distributed ledger technol- ogy gets scaled globally, enterprise blockchain will become a realistic solution to global supply chain cost and efficiency concerns. PAYTABS AND DIGITAL PAY DESPITE THE INITIAL DOUBTS AND DISILLUSIONMENT SURROUNDING ITS ADOPTION, SEVERAL GLOBAL TECHNOLOGY FIRMS, AND ENTERPRISES – LED BY OUR VERY OWN DLT LABS – HAVE DISPROVED NAYSAYERS WITH PROOF OF CONCEPTS, CASE STUDIES, AND REAL- LIFE APPLICATIONS TRANSFORMING INDUSTRIES AROUND THE GLOBE.
26 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM COVER STORY LNME OF SPEED AND RESILIENCE THEINFRASTRUCTURE The Kingdom of Saudi Arabia has set out on the path to rapid transformation in its pursuit to diversify away from an economy which is over-dependent on oil. Driven by the ambitious ‘Saudi Arabia Vision 2030’ and powered in large part by lucrative revenues from high oil prices, the Kingdom has announced a series of mega-projects, development plans and initiatives, which are unparalleled in scale and unprecedented in what they aim to achieve and deliver.
LOGISTICS NEWS ME | DECEMBER 2022 | 27 THE INFRASTRUCTURE OF SPEED AND RESILIENCE A s recently as October, 2022, His Royal High- ness Prince Moham- med bin Salman bin Abdulaziz, Crown Prince, Prime Minister and Chairman of the Council for Economic and Develop- ment Affairs, announced the launch of the Global Supply Chain Resilience Initiative (GSCRI). Under the GSCRI, ‘SAR 10 Billion (USD 2.7 Billion) has been earmarked to support several initiatives, including financial and non- financial support for global investors interested in incorporating Saudi Arabia in their supply chains. The initiative will support growth in key sectors and is expected to attract investments of SAR 40 Billion (USD 10.7 Billion) within the first two years of being launched. The GSCRI is welcome news for the Kingdom’s premier Logistics Real Estate Company LogiPoint, which is mak- ing its own investments and launching its own initiatives in the Logistics and Supply Chain sector to facilitate trade and attract investments from local as well as international businesses. As the Kingdom’s leading developer of logistics parks and economic zones and the pioneering organization which successfully launched and developed the Kingdom’s first and the largest Bonded and Re-Export Zone over 20 years ago, the company realizes only too well the far reaching impact a resilience-centric initiative like GSCRI can have in the global logistics ecosystem. >>>
COVER STORY LNME NEED FOR RESILIENCE: First, there was the COVID-19 pandemic; then, there was the Russian invasion of Ukraine; each setting into motion series of events across the globe which snowballed into unprecedented disruptions for the modern business world in general and for the supply chain industry in particular. All along, there was the usual fare of political upheavals, natural disasters, economic uncertainties, technical glitches, system failures, human errors, and so much more that keeps the job of Supply Chain profes- sionals interesting by throwing up new challenges every day. For the latter group of agents of chaos, the supply chain and logistics industry has evolved practices and processes as well as tools and frameworks, which mitigate, if not altogether eliminate, the effects of dis- ruptions supply chain professionals must grapple with every day. However, when a Black Swan event like a global pandemic throws the proverbial spanner in the works, or when the world’s food and ener- gy supplies are disrupted by an interna- tional conflict like the Russia-Ukraine war, conventional supply chains are stretched to breaking point, and sometimes beyond the breaking point. Black Swan events aside, the dynam- ics of changing demographics, consumer behavior shifts, disruptive technologies and competition pose constant challenges to conventional models of supply chain management. Pre-pandemic research by the McKinsey Global Institute found that, on average, companies experience a disruption of one to two months in duration every 3.7 years. The fallout of these disruptions is costly both in terms of outlays as well as lost opportunities and so part of the mandate of logistics leader- ship has always been to design and build supply chains which have the resilience to mitigate and withstand disruptions, the elasticity to adapt and the agility to respond quickly to the changing demand scenarios. Today, more than ever before, ‘Resil- ience, Elasticity and Agility’ have taken center stage in the Supply Chain discourse in the boardrooms. Many businesses have learnt the hard way not to treat supply chain resilience as a necessary cost but an investment in competitive advantage. It is in this background that the King- dom of Saudi Arabia has launched The Global Supply Chain Resilience Initiative (GSCRI). LOGIPOINT – AN INTRODUCTION. LogiPoint is the Kingdom’s leading Lo- gistics Real Estate Company developing economic zones and logistics parks across the Kingdom. These economic zones and logistics parks provide specialized infrastructure to the supply chain and logistics industry, which delivers opera- tional excellence, efficiency and agility in times of smooth sailing, while enabling contingency planning for resilient supply chain strategy during disruptions. “BLACK SWAN EVENTS ASIDE, THE DYNAMICS OF CHANGING DEMOGRAPHICS, CONSUMER BEHAVIOR SHIFTS, DISRUPTIVE TECHNOLOGIES AND COMPETITION POSE CONSTANT CHALLENGES TO CONVENTIONAL MODELS OF SUPPLY CHAIN MANAGEMENT.” 28 | LOGISTICS NEWS ME | DECEMBER 2022
LOGISTICS NEWS ME | DECEMBER 2022 | 29 Farooq Shaikh, CEO Lo- giPoint, says: “Building an infrastructure to compete in a fiercely competitive world re- quires substantial and continu- ous investments into innovative technologies, infrastructure development, value creation, and business development. LogiPoint investments in these areas have traditionally had a multiplier effect on the econo- my, because we provide proof of concept to global blue-chip companies looking to leverage the Saudi Arabian market and its strategic location. In this way, we help draw valuable and substantial investments into the Kingdom.” Jeddah Logistics Hub in Modon 1, Jeddah and the 314,000 Sqm Logistics Park, South Jeddah in Khomrah are two examples of such invest- ments, which will help create thousands of jobs directly and indirectly. There are exciting new projects in the pipeline, which will see LogiPoint expand its footprint across the Kingdom through strategically located new Logistics Parks and Economic Zones. LogiPoint began its journey in 1999 as the Kingdom’s first and the largest Bonded and Re- Export Zone (BRZ). The BRZ has since gone from strength to strength over the years as it has grown into a multi-award winning logistics hub located inside Jeddah Islamic Port serving a wide spectrum of local and international clients. In many ways, the company crystallizes the Kingdom’s ambition under Vision 2030 to transform into a global logistics hub. Farooq Shaikh agrees: “With Saudi Arabia’s Vision 2030, we have seen a culture of collaboration evolve across the stakeholders as we work collectively towards the stated common goal of becoming a global logistics hub and we believe in this way the Vision 2030 is playing a pivotal role in helping expedite this trans- formation. For LogiPoint, it is a matter of privilege and pride that we find ourselves aligned naturally and historically with the Vision 2030.” THE BONDED AND RE-EXPORT ZONE (BRZ) The BRZ is One Million Square Meters of transforma- tive bonded logistics space lo- cated inside the Jeddah Islamic Port. It boasts state-of-the-art logistics infrastructure, includ- ing Pre-Built and Built-to-Suit facilities, Container Yards, Reefer Zone, and multi-pur- pose Open Yards. Additionally, a dedicated customs office for BRZ clients expedites the customs clearing procedure and allows clients to achieve a considerably faster turn-around time than average clearance. Most significantly, the infra- structure is backed by a team of highly qualified logistics specialists who collaborate with regulatory bodies to cre- ate and execute user-friendly, industry-specific processes that simplify the whole supply chain for efficiency and agility. These benefits help build resilience into the clients’ supply chains by providing them with cost- effective and agile contingency options in case of disruptions and the ability to scale quickly with demand fluctuations. Strategic BRZ clients have also been provided fenced out non-bonded space on the BRZ premises, since it helps them reduce lead times and achieve faster delivery to client premises because of the central location of the BRZ. BRZ clients are spread across all the major market segments includ- ing 3PLs, Couriers and Express Delivery, e-Commerce, FMCG, Automobiles, Metals, Miner “WITH SAUDI ARABIA’S VISION 2030, WE HAVE SEEN A CULTURE OF COLLABORATION EVOLVE ACROSS THE STAKEHOLDERS AS WE WORK COLLECTIVELY TOWARDS THE STATED COMMON GOAL OF BECOMING A GLOBAL LOGISTICS HUB AND WE BELIEVE IN THIS WAY THE VISION 2030 IS PLAYING A PIVOTAL ROLE IN HELPING EXPEDITE THIS TRANSFORMATION.” >>> THE INFRASTRUCTURE OF SPEED AND RESILIENCE
30 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM als and Commodities, Pharmaceuticals, Retail, and Projects. Some of the Logistics Solutions rolled out in BRZ over the last couple of years are as follows: Export Distribution Hub: Petrochemicals are the Kingdom’s greatest export, with hundreds of thousands of containers shipped annually to destinations world- wide. LogiPoint collaborated diligently with Saudi Aramco, SABIC, and other high-volume exporters to re-engineer the whole export process and bring custom- ers closer to their markets by shortening the lead time between order and delivery. In this high-volume, high-stakes business, logistical efficiency lends vital competitive advantage to KSA exporters. Cross-border Gulf: Shipments originating in Europe and the Americas, and pass- ing through the Red Sea, typically have a transit time of 8-12 days ahead of them to reach the GCC ports in the Arabian Gulf. LogiPoint introduced the Cross-border Gulf service under which shipments can be discharged in Jeddah and moved to ports and final destinations in the GCC countries via bonded trucking. This helps reduce the transit times by 7-10 days and translates to greater efficiency as well as higher revenues and profitability for the clients. Sea/Air and Air/Sea: LogiPoint have been working extensively with the industry stakeholders and the regulatory bodies to design and streamline multimodal move- ment of shipments seamlessly. Thanks to the initiatives taken by LogiPoint, Sea-Air and Air-Sea multi-modal shipments have become a reality in KSA. This is an impor- tant development in putting the KSA on the world logistics map as a strategically located multimodal logistics hub. Bonded Express Facility: Lightning-fast e-commerce relies extensively on efficient, error-free and high-speed logistics for survival and success. LogiPoint launched the Bonded Express Facility to serve the e-commerce market. This facility, the first of its type in a Saudi port, is dedicated to the clearance and fulfilment of express and e-commerce shipments. Ground-breaking contracts with global e-commerce giants Amazon and with regional and national industry leaders such as Aramex and Naqel highlight the relevance and success of this facility. Value Added Services: LogiPoint has been offering a wide array of Value-Added Ser- vices (VAS) over the years. These include short-term storage, packing, co-packing, labelling, bundling and distributing goods, duty deferment (important especially when VAT has become such an important part of the cost for a supply chain), and clear- ance and delivery support. In addition, the Reefer Village boasts a Reefer Container Yard with 240 plug-in points, Reefer cross- stuffing stations, and an ever-expanding fleet of trucks and gensets. JEDDAH LOGISTICS PARK (JLP) Jeddah Logistics Park is the latest addi- tion to the LogiPoint portfolio. It is being developed on a 314,000 SQM parcel of land located in Khumrah, south of Jeddah, around 20 KMs away from the bustling and busy port of Jeddah. JLP will be a multi-purpose logistics space, which will boast state-of-the-art warehousing facilities including both pre- built and Built-to-Suit facilities. Addition- ally, there will be opportunities for light industrial units to set up manufacturing units by capitalizing on the Kingdom’s strengths in affordable, skilled and well- trained labor, uninterrupted power supply, government support through initiatives such as GSCRI, and lastly global reach and COVER STORY LNME
LOGISTICS NEWS ME | DECEMBER 2022 | 31 connectivity to gain a competitive edge over their competition. Since JLP is planned as a self-contained eco-system, it will also include a sector for staff accommodation and plenty of retail space to cater to the day-to-day needs of the residents. JLP’s world-class, sustainable infrastructure will be built to LogiPoint’s highest standards and will be powered by reusable resources, while reliable, high-speed connectivity will be ensured via scalable and customizable ICT infrastructure. LogiPoint’s commitment to complying with ESG protocols also means that there will be built-in systems to en- sure waste reduction, water conservation and sustainable recycling. The JLP clients will be able to integrate resilience into their supply chains because of the LogiPoint Real Estate infrastructure and the proximity to the Jeddah port. In addition, the clients will be able to incor- porate cutting-edge technical solutions into their processes, allowing them to achieve more agility and flexibility in their operations while adhering to ESG norms for sustainability. JEDDAH LOGISTICS HUB Jeddah Logistics Hub is a BOT (build, operate & transfer) project in partnership with the Saudi Industrial Cities Author- ity (Modon) in line with objectives of the Saudi Vision 2030 and the National Industrial Development and Logistics Program (NIDLP). It is a 120,000 sqm, fully integrated logistics platform enabling Modon 1 users to optimise and streamline their logistics operations while adhering to sustainability goals. Jeddah Industrial City is home to over 1,000 factories and is the beating heart of Jeddah’s manufacturing economy. Heavy congestion in the bustling area led to cost- ly delays, pollution, stress and strife on an ongoing basis. Phase 1-JLP addressed the problem by building a dedicated truck parking zone with 380 parking spaces supported by ancillary services like repair workshops, and facilities for drivers like rest areas, prayer areas and other utilities. Phase 2 saw the commissioning of the first Built-to-Suit facility to be built outside the BRZ. LogiPoint started work on building a dedicated, first-of-its-kind facility for United Warehouse Company in JLH. The multi-purpose facility will have specialized temperature-controlled zones to handle frozen, chilled, ambient and dry cargoes and is being built over a 15,000 sqm area which includes a 12,000 covered warehousing space. The ground-breaking ceremony took place on November 29, 2022 and was attended by dignitaries from Modon, UWC and LogiPoint. SUSTAINABLE WAREHOUSING – PRE- BUILT AND BUILT-TO-SUIT (BTS) LogiPoint operates primarily as a Logistics Real Estate company designing, build- ing, delivering and managing elements of Logistics infrastructure like warehouses, container yards, reefer yards, and open storage yards. Warehouses are the most >>> THE INFRASTRUCTURE OF SPEED AND RESILIENCE
32 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM investment intensive and the most complex of these struc- tures – not to mention the most rapidly evolving in design, structure, construction and utilization. LogiPoint offers warehousing solutions in two ways: Pre-Built Standard Warehous- ing, where LogiPoint draws on customer feedback and own past experience, while also anticipating the changing needs of the general warehousing cli- entele to design and construct Warehousing Villages which have multiple, often identical, units available for short to medium term lease. These units range in size from 500 SQM each in the earliest Warehouse Villages to 2000 SQM each in Warehouse Village 5, the latest and state-of-the-art facility about to be delivered in a few weeks. These facilities are designed as multi-purpose, multi-client facilities and cater to clients whose requirements can be met with standard sized warehouses. Built-to-Suit (BTS) Warehous- ing, where LogiPoint builds a tailor-made facility for the client according to the specifi- cations provided by the client. Usually, such facilities are built for a single client under a long- term partnership agreement, where LogiPoint brings the design and the construction expertise as well as world-class LogiPoint standards to the project, while the client designs the facility in line with their operational requirements. Lo- giPoint have won accolades for building state-of-the-art BTS facilities, which maintain strict compliance to ESG protocols and global safety standards, and for delivering reliable high quality buildings on schedule. THE CAPTAIN SPEAKS: Speaking about the LogiPoint Warehousing Solutions in the pipeline, Farooq Shaikh says, “These are exciting times for LogiPoint. On the one hand, we are delivering our Ware- house Village 5 this year, which will reset the bar for state-of- the-art multipurpose warehous- ing solutions inside the Jeddah Islamic Port, especially with its dedicated Pharmaceuticals section – a first in the Kingdom and a vitally important addi- tion in a post-pandemic world. We will also be delivering our Built-to-Suit facilities to two of our blue chip clients this year, while discussions for an an- other two Built-to-Suit facilities with a global 3PL organization and an e-commerce giant are in the final stages.” LogiPoint look at them- selves as not only a Logistics Real Estate Company, but as stakeholders in the develop- ment of the Kingdom’s logistics ecosystem. Farooq Shaikh, CEO LogiPoint, believes that initiatives like the GSCRI will go a long way to boost interest in the Saudi Arabian market – especially in times when organizations world over are looking at resilience not as a cost, but an essential invest- ment in gaining a competitive edge in the market: “After all, building resilience into sup- ply chains is what LogiPoint specializes in. ‘Resilience’ might be a mantra in a volatile world today, but it has been the primary value proposition from LogiPoint for over two decades. A multi-billion dollar government initiative focused on developing supply chain re- silience in the Kingdom makes the world a very exciting place for LogiPoint”, he beams. COVER STORY LNME “RESILIENCE’ MIGHT BE A MANTRA IN A VOLATILE WORLD TODAY, BUT IT HAS BEEN THE PRIMARY VALUE PROPOSITION FROM LOGIPOINT FOR OVER TWO DECADES.” Farooq Shaikh, CEO LogiPoint
NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio. NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications. DRIVE THE NEW WAY
34 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM S wisslog, one of the global leaders in robotic, data- driven, and flexible auto- mated solutions, participated in Gulfood Manufacturing 2022 – which was hosted in November 2022. The trade fair is the region’s definitive destination to see the future of food production, from advanced technologies to integrated supply chain solutions and ground-breaking innova- tions propelling the industry ahead. Highlighting its presence, Swiss- log Middle East notably focused on cutting-edge technology solutions that might assist businesses in adapting to changes in manufacturing, distribution, and retailing as well as the automation of the food supply chain. Addition- ally, the attendees were also assisted by Swisslog’s automation specialists in choosing the appropriate automation approach for their vertical farming endeavours and identifying the auto- mation technology required for their operations. Emphasising advancing vertical farm- ing, David Dronfield, General Manager at Swisslog Middle East, says, “The emergence of indoor vertical farm- ing as a potential solution to growing food capacity more sustainably has been quite evident. Vertical farming can reduce space requirements, water consumption and fertiliser use by up to 99% while eliminating the need for chemical pesticides. This approach is already being used to support the production of fresh greens such as lettuce and herbs, but a broad range of popular produce products could be grown in vertical farms.” Additionally, the operation of this model is also affected by automation, which means that early adopters of vertical farming have already experi- mented with it and found that it may effectively enable increased space utilisation and optimise vertical farm- ing procedures. Automation, then, is a critical innovation for logistics organi- sations. Whether due to post-COVID developments or the industry-disrupt- ing waves, automation has brought about an influence that has been much more noticeable and put into practice. Companies must be careful to avoid just incorporating automation into anything and everything. A successful supply chain operation comprises the right product, location, and technique. GM POV LNME WAREHOUSE AUTOMATION SWISSLOG’S Vibha Mehta, Editor of Logistics News ME, sits down with David Dronfield, General Manager at Swisslog Middle East, to talk about the company’s future, its participation at Gulfood Manufacturing and much more…
LOGISTICS NEWS ME | DECEMBER 2022 | 35 A lack of knowledge of these subjects has put businesses in predicaments where the best course of action may not be available, making it crucial for companies to comprehend the key relevance. “We have our parent company, KUKA Group, heavily into the automa- tion, the robotics, the assembly line automation, so we are working closely with them. However, we are also look- ing into tap into essential industries and not just every industry, but the ones which are vital to the population and the linked businesses,” adds David. Similarly, automation is already being used in food distribution but must adapt to changes in production and retailing. Here are three ways that the food supply chain will likely become more automated: MFC-ready distribu- tion, urban distribution, and adequate cold storage. First of all, food distribution centres (FDCs) are already getting ready to facilitate more effective store replenish- ment using robotic palletising technolo- gies that can produce pallets prepared for the aisles for more effective replen- ishing. Building micro fulfilment centre (MFC) ready bins, which allow for more effective robotic replenishment, is the next stage in this progression. Instead of unpacking and bin loading at the MFC, shuttle systems can be used to create automation-ready bins at the DC. The delivery of automation- ready bins to each MFC by the DC is made possible by the MFCs’ software interface to the DC based on current inventory levels. Second, as the population grows, se- vere challenges within the food supply chain have surfaced - traffic conges- tion and regulations that limit delivery frequency, necessitating the use of automated urban distribution centres. However, doing this will be made pos- sible through automation. Additional- ly, it is possible to build adaptable and quickly deployable urban distribution centres customised to specific markets’ needs by using small, containerised automation modules. Lastly, supplying a rising popula- tion with food will depend on a solid cold chain. More vertical cold storage is made possible by automation, and when combined with advanced energy management techniques, these settings can enable greater energy efficiency within the environments. Not to mention, it is crucial to rec- ognise that industries are still recover- ing from the pandemic’s impact. The lockdowns caused by COVID-19 and as a result had a significant effect on the food and beverage industry. The industry is expected to develop at a compound annual growth rate of 3.6% between 2019 and 2024, according to Interact Analysis. This is greater than the industry’s average annual growth rate over the preceding five years, which was 3.5%. But in this demanding climate, success depends on adaptability, effectiveness, and quality. It has become clear that manual methods cannot provide the profitability and scalability that food producers need to expand their com- panies. Swisslog’s team demonstrated a cohesive ecosystem at Gulfood that integrates food production, in-person and online sales, and trash recycling. Considering the future of logistics and Swisslog, David stated, “The industry is going to be very highly automated, not just because people can learn about it on YouTube, but because there is a huge demand for it. The current generation prefers automated, faster, sustainable, and easier options – result- ing in higher demand. Fitting right in here, Swisslog is planning to make the necessary changes that will suit the company to thrive and make wiser business decisions. Correspondingly, the future will be economical, sustain- able, and robotically driven on bigger perspectives.” HOW SAAS IS DEVELOPING THE LOGISTICS INDUSTRY David Dronfield, General Manager, Swisslog Middle East
36 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM RETAIL LNME L andmark has reached a milestone and influenced the retail industry in the region since its inception in 1973. From the inauguration of their first shop in Bahrain to the debut of other brands across the Middle East, Landmark Group has established a set definition. However, a company’s supply chain, operations, and logistics are critical to any success – making it crucial for a company with over 2000 stores of various brands worldwide. Here, Logistics News ME interviewed Ashish Sood, who has extensive industry expertise and shares his perspective on retail logistics, crucial challenges tackled, an adaptation of automation in operations, and plans for Landmark Group… How would you describe the current supply chain and logistics landscape in the retail segment in the UAE? UAE is a global trading hub, and the logistics industry has been at the heart of this. There has been steady growth in the UAE’s supply chain and logistics sector due to the region’s rapid e-commerce growth and the expansion of global trade. Although COVID affected the industry significantly, the UAE and the rest of the world’s core sectors are stabilising and thriving. The UAE and Dubai have implemented many measures to develop their infrastructure and technology to create a well-integrated transport, supply chain, and logistics ecosystem to facilitate trade and the e-commerce sector. THE EVOLVING RETAIL LOGISTICS LEADER Ashish Sood, Chief Supply Chain Officer, Landmark Retail, a regional multi-national conglomerate, talks to us about the changing standards in retail logistics and its future
LOGISTICS NEWS ME | DECEMBER 2022 | 37 According to a recent analysis by Dubai Alpen Capital, the retail sector in the GCC area is positioned for a bright future, with the market forecast to rise to $308 billion by 2023. We are proud that we have successfully maintained pace with the GCC’s evolving retail landscape with our commitment to addressing and fulfilling our customer’s needs. Landmark Group’s vision led to investments in future technologies, and an advanced supply chain to support the omnichannel business demands have enabled quicker adaptability. In November 2019, we inaugurated Omega DC, a fully automated logistics and distribution hub with cutting- edge technology and processes to service our expanding omnichannel business – it is located in JAFZA, the largest privately owned facility in the MENA region. Which current business- related issues are you observing in the global logistics retail market? Over the past few years, unprecedented disruptions have highlighted the need for more resilient and agile supply chain operations. Top businesses worldwide understand that technology and connected supply chains are the way forward to generate and optimise efficiency while serving their customers’ expectations. Logistical disruptions stemming from COVID-19 and the Russian-Ukraine war have limited goods’ production and movement, resulting in long purchase lead times. The industry also experienced the need to increase technology investments to improve logistics planning through advanced digital enablers like cognitive planning, AI systems, and blockchain technologies. Capacity challenges with logistics providers, inflation, shipment delays, higher freight prices, reduced inventory levels, labour shortages, and managing demand peaks have all taken centre stage and demanded attention. It is becoming increasingly important for companies to ensure the effective use of technology to get visibility across multiple areas, including vendor management and ongoing risk monitoring, and their capabilities are strong enough to adapt to new digital operations. How do you plan to apply logistics and supply chain automation? Landmark Group is committed to playing a significant part in enabling the retail supply chain of the future, as Dubai is rising as a global and economical business and logistics centre. The Group’s supply chain goal is to create a best-in-class supply chain function in which every step is founded on math and science, is cost-effective, and aims to provide a superior customer experience. Acquiring and retaining the right talent and creating a future-ready and agile supply chain is a crucial part of this vision to support the growing consumer demand across our omnichannel business. Additionally, we implemented advanced warehouse automation technologies and hyper-automation with optimisers and simulators. We are also added advanced robots (AMRs) to our warehouses. These features will facilitate decision-making and reduce manual effort. THE EVOLVING RETAIL LOGISTICS LEADER “ACQUIRING AND RETAINING THE RIGHT TALENT AND CREATING A FUTURE-READY AND AGILE SUPPLY CHAIN IS A CRUCIAL PART OF THIS VISION TO SUPPORT THE GROWING CONSUMER DEMAND ACROSS OUR OMNICHANNEL BUSINESS.” >>> Ashish Sood, Chief Supply Chain Manager of Landmark Group
38 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM Furthermore, we have collaborated with renowned warehouse automation and software professionals to increase the company’s warehousing operations scope. This has improved capabilities in handling and storing items, resulting in a more efficient warehouse management system that assures a smooth flow of goods following client expectations. One of the noteworthy achievements is that these measures have led to improved services offered across our businesses and external 3PL clients. Correspondingly, it is crucial to note that the supply chain team at Landmark Group fully recognise that automation of logistics is the key to the company’s success. The Group is transforming its supply chains to provide impressive customer experiences and highlighting that automation is one of the key pillars in the company’s vision for an agile logistics framework. By offering scalability, speed, and efficiency, it provides a robust client experience. What special measures and business techniques were used to stand out from competitors in 2022? As one of the region’s top retail businesses, we have constantly reinvented ourselves to remain relevant and succeed in an ever-changing business context. Omega DC, a fully automated distribution and warehousing centre in JAFZA, serves the region’s 2,300 outlets across forty-three brands. A compelling vision propels us to continually alter our supply chain to provide a superior client experience while maintaining high operational efficiency. Our present transition era, driven by the adoption of cutting- edge logistical technology and leading innovation in the GCC region’s supply chain, has resulted in the company’s victory. We have partnered with multiple organisations to ensure that Landmark Group implements the latest technology, including an end-to-end go-to-market (GTM) supply visibility and workflow management tool to deliver optimised customer services even in an uncertain environment. We are also implementing advanced robots (AMRs) in our warehouses. This automation will reduce cost, reduce manual work and improve the speed at which we service our customers. Consumers expect effectiveness, efficiency, speed, flexibility, and agility in today’s fast-paced retail world. A robust supply chain approach and technological advances are required to meet changing demands and increase productivity. Based on this “THE GROUP IS TRANSFORMING ITS SUPPLY CHAINS TO PROVIDE IMPRESSIVE CUSTOMER EXPERIENCES AND HIGHLIGHTING THAT AUTOMATION IS ONE OF THE KEY PILLARS IN THE COMPANY’S VISION FOR AN AGILE LOGISTICS FRAMEWORK.” RETAIL LNME
LOGISTICS NEWS ME | DECEMBER 2022 | 39 understanding, we create new processes, strengthen existing ones, and implement technologies that improve the customer experience. Customer feedback is essential in allowing us to evaluate our service standards continuously. Our NPS has increased by nearly 10% across our e-commerce business and 15% across our stores since last year. Methodologies like KATA & Lean are key levers we have implemented to drive better efficiency, resulting in a 20 – 30% productivity benefit. We also implement end-to-end piece-level visibility using RFID across the entire value chain, from suppliers to warehouses, stores, and customers. These continuous improvement initiatives ensure that the supply chain team is continuously focused on raising the bar on customer experience and cost metrics. How does a seamless logistics process aid you in achieving your desired objectives in your line of work? The launch of the GTM platform is one way Landmark uses a seamless logistics process to achieve its goals. Our goal is to have complete visibility and supplier collaboration, to check the quality of commodities purchased, to reduce customs delays, and to automate and digitise previously manual procedures, all of which are critical to remaining competitive in today’s retail market. We implement RFID-enabled end-to-end piece-level visibility throughout the entire value chain, from suppliers to warehouses, stores, and customers. What growth initiatives or strategies do you have a close eye on as a company, now and into 2023 too? People are a critical component of our supply chain vision, so we focus on building a world-class supply chain team by hiring the best talent from the region and worldwide. We have a well-defined and structured approach to scaling up supply chain professionals through intensive coaching and mentoring, classroom, and on-the-job training, and stretch assignments. We have seen significant results from these people’s development initiatives, allowing us to partner in their growth. Any additional comments? In the future, we plan to broaden our reach while promoting various brands. Renuka Jagtiani, Chairwoman of Landmark Group, and Kabir Lumba, CEO of Landmark Retail, are spearheading initiatives to ensure that the organisation remains relevant now and in the future as the regional retail scene evolves rapidly in the changing business landscape. THE EVOLVING RETAIL LOGISTICS LEADER “CONSUMERS EXPECT EFFECTIVENESS, EFFICIENCY, SPEED, FLEXIBILITY, AND AGILITY IN TODAY’S FAST-PACED RETAIL WORLD. A ROBUST SUPPLY CHAIN APPROACH AND TECHNOLOGICAL ADVANCES ARE REQUIRED TO MEET CHANGING DEMANDS AND INCREASE PRODUCTIVITY.”
40 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM AUTOMOBILE LNME H is Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz, Prime Minister and Chairman of the Public Investment Fund (PIF) announced the launch of Ceer at the beginning of November 2022. This first Saudi electric car brand will serve the automotive manufacturing industry in Saudi Arabia. The launch is consistent with PIF’s goal of unlocking the possibilities of promising sectors locally that may assist foster economic diversification and help accomplish Vision 2030 objectives. Ceer is the first Saudi automotive brand to manufacture electric vehicles in Saudi Arabia. It will develop, build, and market various cars for consumers in Saudi Arabia and the MENA region, including sedans and SUVs. Ceer will generate over US$150 million in foreign direct investment and produce up to 30,000 direct and indirect employees as part of PIF’s plan to diversify Saudi Arabia’s GDP development by investing in attractive emerging areas. In addition, Ceer is expected to contribute $8 billion to Saudi Arabia’s GDP directly by 2034. “Saudi Arabia is not just building a new automotive brand; we are igniting a new industry and an ecosystem that attracts international and local investments. Not only does it create job opportunities for local talent and enables the private sector, but it also contributes to increasing Saudi Arabia’s GDP over the next decade as part of PIF’s strategy to drive economic growth in line with Vision 2030,” His Royal Highness Crown Prince Mohammed bin Salman said. Furthermore, Ceer, a collaboration between PIF and Hon Hai Precision Industry Co. (“Foxconn”), will license BMW component technology for vehicle development. Foxconn will create the cars’ electrical architecture, culminating in a range of goods that will lead to entertainment, networking, and autonomous driving technology. Each vehicle will be developed, constructed in Saudi Arabia, and evaluated per the most stringent worldwide automotive quality control and safety standards. Ceer automobiles are expected to hit the market in 2025. In response, Ceer’s Board of Directors has nominated James DeLuca as CEO. DeLuca has almost four decades of automotive expertise, including top leadership positions at General Motors and VinFast. DeLuca will oversee developing, manufacturing, and selling Ceer’s consumer vehicle portfolio to develop iconically designed electric cars packed with sophisticated technology and amenities. “Saudi Arabia recognizes the importance of the automotive sector when it comes to economic growth and job creation, and I am looking forward to shaping Ceer into a car brand that is admired by both Saudi consumers as well as the wider industry,” said James. “Ceer will help ignite Saudi Arabia’s automotive sector and create synergies of scale that the automotive industry will benefit from as more automotive manufacturing moves to the Middle East to make electric vehicles mainstream in the country and the wider region.” SAUDI ARABIA’S FIRST ELECTRIC CAR BRAND, CEER PROMISES TO REVOLUTIONIZE THE AUTOMOBILE INDUSTRY Are electronic cars the new future? Here is everything you need to know about the recently launched automobile brand
LOGISTICS NEWS ME | DECEMBER 2022 | 41 Q ashio is a spend management platform and financial control centre for MENA organizations that provides transparency on corporate costs and payments using software-enabled cards and all-inclusive accounts payable automation. Brands may regulate their finances, mini- mize expenditures, and detect areas of cash overspending with Qashio’s comprehensive software suite and general assistance. Recently, Qashio, a UAE-based fintech, has secured $10 million in a seed round led by important international and regional investors to accelerate its entry into the Kingdom of Saudi Arabia. Global investors include One Way Ventures (early Brex investors), MITAA, and Cadorna Ventures, as well as regional investors like Sanabil 500 MENA, Nuwa Capital, Iliad Partners, Phoe- nix Investments, and strategic family offices and angels. The rounds consisted of both equity and non-equity financing. Additionally, Qashio is the first fintech in UAE history to issue corporate employee cards programmatically, founded in 2021 by seasoned serial entrepreneurs with many successful exits, Jona- than Lau and Armin Moradi. Its enterprise-grade spend management technology provides complete visibility and control of all spending to business owners and finance professionals. Their dash- board incorporates real-time tracking for all business ex- penses, enabling corporations and SMEs to make educated cash flow choices. Lex Zhao, Partner at One Way Ventures, com- mented, “The co-founders Armin and Jonathan are a unique combination of deep ERP expertise and have a demonstrated track record of building world-class software products. We’re excited and grateful to join this round and to share our experience as early investors in Chipper Cash and Brex.” Armin Moradi, CEO and co-founder of Qashio, says, “Saudi Arabia is making significant efforts to align with its Vision 2030, taking fintech-friendly approaches and bringing more fintech firms into the market. At Qashio, we are proud to be an integral part of propelling a cashless society in the UAE and now KSA. We are com- mitted to helping companies remove all those manual finance processes and get more visibility and control by providing a secure, safe solution ready for enterprise- grade deployment and SMEs. Qashio’s virtual and physi- cal cards, in conjunction with its software, enable business- es to control their spending more automated and trans- parently, saving hundreds of person-hours and decreasing petty cash leaks. Finance and HR departments gain from improved expenditure report- ing, visibility, cash flow con- trol, and empowered staff. Qashio has signed promi- nent brands and customers in Saudi Arabia and the UAE and continues adding new clients. Nana, Swiss International, Yaa Foods, Al Shiha Group, Tasoru Hold- ing, Instashop, Saif Belhasa, EFS Facilities Management Services Group, Papa Johns, Bulldozer Group, and others are among them. Qashio has won the Gulf Capital FinTech Business Solution of the Year 2022 award. Jonathan Lau, CPO and co-founder of Qashio, said, “We’re grateful to all our in- vestors and advisors for their support on our expansion into the largest country in the Middle East. This round of funding will help us expand hiring and growth into Saudi Arabia and other parts of the GCC and accelerate the execution of the product roadmap. We are excited for the days ahead.” Lastly, business owners, CFOs, HR leaders, and fi- nance teams may use Qashio to set spending restrictions on virtual and real cards issued in seconds and limit and manage expenditure categories and suppliers. This removes the need for cash, minimizes time spent on reimbursements, and eventually replaces manual invoicing and vendor/supplier payment. QASHIO A UAE-BASED FINTECH, HAS RAISED $10 MILLION TO ACCELERATE SPEND MANAGEMENT SOLUTIONS FOR A CASHLESS ECONOMY IN SAUDI ARABIA FINTECH
42 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM WAREHOUSE LNME J umbo Logistics is a prominent 3PL service provider in the Middle East. Jumbo Group provides a wide range of services, including warehousing, imports, clearing and forwarding, Last Mile Delivery, and Reverse Logistics. Here is everything you need to know about Jumbo Logistics, a division of Jumbo Group... Tell us about your services and how they appeal to various brands or industries Jumbo Group’s flagship company, Jumbo Electronics Co. Ltd. LLC, is widely credited with introducing consumer electronics to the UAE market through a 1975 partnership with Sony. Jumbo Logistics, a division of Jumbo Electronics, arose due to the retailer’s rapid expansion. It seemed like a natural progression for us. Jumbo Logistics has accumulated capabilities and grown its roots through strategic investments in warehousing and technology. Jumbo Logistics is now a 3PL service provider. We provide a comprehensive range of logistics services, including packaging, warehousing, transportation, VAS, inventory control, and freight forwarding. Jumbo Logistics delivers integrated solutions to clients across industries with over 500,000 square feet of warehousing, 130+ skilled employees, over 132 vehicles, and state- of-the-art WMS. But, without a doubt, and based on our experience, we have and continue to find a large customer base among consumer electronics and durables manufacturers. How has Jumbo Logistics performed in 2022, and has it exceeded its expectations from the beginning of the year? Consistent and stable. We set a 21% growth target for 2022 and are currently outperforming. We did hit 27% in the third quarter. We have always nurtured the logistics business unit through well- planned, timely investments. We have warehousing space on the mainland of Dubai and in free zones, which gives us an advantage and allows us to offer greater flexibility to our clients. What have been some of the challenges faced during the year, and what opportunities have you tapped into? The industry as a whole has been dealing with some common issues. Transportation costs, for example, have risen. Furthermore, the war-induced crisis in Eastern Europe has increased fuel price volatility. This impacts operational costs, and companies like ours must revisit pricing and contracts to make changes and stay within margins. On the other hand, the impact of the growing e-commerce industry has worked in our favour. Businesses are transitioning from massive multiple storage facilities to single, smaller facilities on the mainland LEADING THE PATH Vibha Mehta, Editor of Logistics News ME, interviews Vikas Chadha, as they discuss the company operations and its future…
LOGISTICS NEWS ME | DECEMBER 2022 | 43 as they are forced to adjust their strategies to provide low-cost and on-demand delivery services. Jumbo has warehouses in free zones and on the mainland, as well as open yards, giving our clients greater flexibility. Our captive infrastructure also enables them to operate efficiently at all hours. In addition, we have improved our last-mile delivery by increasing milk runs to reach hundreds of more customers per day. Can you talk us through your warehouse and cold chain operations? Currently, we don’t have cold chain operations as many of our clients are electronics, general goods, and durables manufacturers. How have last-mile deliveries and reverse logistics altered since the epidemic, in your opinion? Without a doubt, last-mile deliveries and reverse logistics increased dramatically during the pandemic. And we haven’t observed a noticeable difference in this trend since. Reverse logistics is challenging to manage, and inefficiencies in management lead to inefficient space utilization and incremental spending, which can erode margins. We used technology to improve deliveries through real-time vehicle and order status tracking. When dealing with fluctuating returns, our scalable resources come in handy. Tell us about the most recent innovation/ technology implemented by Jumbo Logistics to improve your services. Jumbo began its journey toward digital transformation a few years before the pandemic. This gave us a competitive advantage and the necessary traction in recent years. For a long time, we have used technology to streamline our operations and ensure transparency, from stickering and RFID to a WMS that covers inventory tracking, storage optimization, automated documentation, analytics, and reporting. We recently launched a new platform to streamline our last-mile mandate. It enables us to track real-time deliveries and pick-ups for more efficient order tracking and fulfilment controls. What measures has Jumbo taken to become more sustainable, and how has this benefited the supply chain? Our logistics operations rely heavily on technology. We will positively impact the supply chain by optimizing our operations and implementing customer-centric processes. We are also investigating alternative power sources for our warehouses and optimizing delivery routes to reduce our carbon footprint. What growth/expansion ambitions do you have for Jumbo logistics in the following years? In the coming year, Jumbo Group will celebrate its 50th anniversary. That says a lot about our organization and its dependability. We believe in long- term growth for our company, even if it means reducing our profit margins. We have set our sights on modest growth by acquiring new space, renovating, and upgrading. In fact, we recently renovated a 38,500-square-foot warehouse to increase capacity. How do you see the UAE/Dubai market right now? Can you keep up with the demand generated by this market? As more businesses focus on their core competencies, there is a high demand for logistics services. There are numerous logistics players in the UAE. On the other hand, Jumbo has made a name for itself, particularly among OEMs. Our priority is to capitalize on our inherent strengths and serve our clients in the electronics, technology, and durables segments. LEADING THE PATH “JUMBO BEGAN ITS JOURNEY TOWARD DIGITAL TRANSFORMATION A FEW YEARS BEFORE THE PANDEMIC. THIS GAVE US A COMPETITIVE ADVANTAGE AND THE NECESSARY TRACTION IN RECENT YEARS.” Vikas Chadha, the CEO of Jumbo Group
44 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM PHARMA LNME P harma.Aero is a global cross- industry collaboration platform for LifeScience and MedTech companies, certified cargo communities, airport operators, and other air cargo market players. The association encourages collaboration through projects that address air transportation issues, the challenges faced by the Life Science and MedTech sectors, and the challenges faced by LifeScience and MedTech sectors. Recently, Abu Dhabi Airports partnered with Pharma.Aero. The collaboration builds on Abu Dhabi’s growth as a global healthcare and life sciences hub, as well as the success of the HOPE Consortium, an Abu Dhabi-led public-private partnership, determined to work together to overcome vaccine distribution and logistics challenges. Here, Logistics News ME interviews Trevor Caswell, Chairman of Pharma.Aero and Frank Van Gelder, Secretary General of Pharma.Aero about their recent collaboration and plans for the Middle East… COLLABORATION WITH ABU DHABI AIR- PORTS The region of the Middle East is geographically an essential region for airfreight and having a strategic international airport hub such as Abu Dhabi International Airport is vital. Etihad Airways has been a Pharma. Aero member for the past four years – collaborating intensively, seeing their focus on pharma logistics growth. In 2022, Pharma.Aero, Etihad and Abu Dhabi Airports had the opportunity of working together closely on a significant and ambitious project, the Pharma Logistics Masterclass that Abu Dhabi hosted this past September. “We collaborated with HOPE Consortium and Khalifa University to organize this unique 5-day event that attracted over 120 industry experts and international academics to Abu Dhabi,” says Trevor Caswell, CEO of Pharma.Aero. “With the full support and active contribution of the Department of Health – Abu Dhabi (DoH), the collaboration brought together industry professionals, policymakers, international experts, and academics representing 50 pharma supply and manufacturing companies, five world- renowned universities and government authorities from the United Arab Emirates and Belgium.” Abu Dhabi Airports and Etihad (another of Pharma.Aero member) made important contributions to the success of this massive event. It was an experience that opened the door to a more active, robust cooperation. The addition of Abu Dhabi International Airport as a Pharma.Aero’s Strategic Airport Member was a logical result of their excellent partnership this year. FUTURE PATHWAY FOR THIS PARTNER- SHIP For Pharma.Aero, the top priority is to secure the satisfaction of the strategic airport partner in the first place. This will induce support in their regional pharma fora, involve them in the different projects and initiatives our organization is standing for and finally support their development as a reference hub in the region and globally. “If you look at our projects, and I encourage you to check our website, they cover a wide variety of topics, from digitization to next-generation therapies or innovative logistics solutions, with an important focus on sustainability,” says Frank Van Gelder, Secretary General of Pharma.Aero. “Every member and partner brings a valuable perspective, thus having an important contribution in identifying challenges and opportunities to be explored.” Moreover, Etihad recently announced the launch of its state-of-the-art cold- chain facility to double the pharma handling capacity at Abu Dhabi International Airport. It is the perfect location to connect the Middle East to the world. THE PHARMA CONNECT ABU DHABI AIRPORTS HAS JOINED FORCES WITH PHARMA.AERO AS A MIDDLE EAST STRATEGIC MEMBER
LOGISTICS NEWS ME | DECEMBER 2022 | 45 THE PHARMA CONNECT “It is an investment that reflects the vision to play an active role in the global ecosystem, and this is an important ingredient for a strong, active, collaborative partnership that will, beyond any doubt, result in new innovative projects to further contribute to achieving excellence in reliable end- to-end transportation of life science and med tech products.” CHALLENGES IN DEVELOPING THE STRATEGIC PARTNER- SHIP When there is an onboarding of an international airport hub as a strategic partner, they give the candidate a set of obligations and responsibilities. “The end goal is reciprocal growth and participation in providing content and walking the walk for the life science air freight business,” says Frank. “Moreover, Pharma. Aero carefully assesses the prospective airport’s passion and motivation to represent Pharma.Aero in the region and potential interests we can support and grow with the airport.” They will also be included in the organization’s general assembly, putting them in charge alongside other important airport partners and pharmaceutical makers – they become ingrained in the organization’s DNA. PHARMA.AERO’S GROWTH PLANS IN THE MIDDLE EAST For Pharma.Aero, a leading cross-industry collaboration platform, it is critical for them to have strategic airport hubs in different regions of the world – enabling them to further create a good foundation for international collaboration. Trevor adds, “There is no other neutral organization like ours that brings shippers and end-to-end supply chain partners together to collaborate, share ideas, challenges and opportunities, and ultimately strengthen our global pharma supply chains.” By becoming Pharma.Aero’s Strategic Airport Member for the Middle East, Abu Dhabi International Airport, will represent Pharma.Aero and its work in the region, thus raising awareness of what they do and attracting new partners for new projects that target genuine issues faced by the industry. “Jointly with our members, we ideate and develop projects that focus on end-to-end supply chain visibility and address air transportation issues and challenges faced by the Life Science and MedTech industry,” says Trevor. On the other side, it provides opportunities for Pharma.Aero to connect healthcare and pharmaceutical manufacturing development in the Middle East. Abu Dhabi is home to renowned healthcare providers. It has been working closely with key players in the biopharmaceutical industry to boost local and global capabilities in life science research and innovation, digital health, and supply chain - cementing its position as a leading destination in healthcare and life sciences. Furthermore, as a life science hub, Abu Dhabi has exhibited an exceptional reaction and accomplished impressive achievements since the commencement of the COVID-19 pandemic. The UAE’s capital established an outstanding model for offering the most incredible quality of care to patients in the Emirate and topped worldwide “Jointly with our members, we ideate and develop projects that focus on end-to-end supply chain visibility and address air transportation issues and challenges faced by the Life Science and MedTech industry.” Frank Van Gelder, Secretary General of Pharma.Aero >>>
PHARMA LNME rankings, reinforcing its position as a leading destination for advanced healthcare and an incubator for healthcare innovation, both locally and globally. SHAPING THE PHARMA LO- GISTICS Pharma.Aero is still a young organization that matured over the past few years. Founded in 2016, it expanded into a global network of 49 members and associate partners on six continents. “Our platform brings pharma manufacturers, airport communities, airlines, ground handlers, digital platforms, and other stakeholders along the pharma supply chain. It is great that we are increasingly referred to as a global leader in the pharma logistics space. This is mainly driven by the unique combination of having the pharmaceutical manufacturers and the different industry stakeholders at the same table. Through our projects, we deep dive into pharma logistics and air cargo aspects and assure a more global and neutral approach,” says Frank. Furthermore, they represent the pharma logistics industry at important international events, where their members participate and share valuable insights into industry cases. They also have strong partnerships with complementary international associations, fulfilling the aspects of pharma logistics in the different programs. Trevor states, “We actively contribute to the definition of the future roadmap for pharma logistics through our unique collaboration with the academic world, as we bring an international masterclass on pharma logistics, where academics and industry experts focus on current and future scientific and industry developments.” “And we will not stop here. We are working on developing more new initiatives in which we embrace international collaboration between pharmaceutical manufacturers and the air cargo industry,” adds Frank. REGIONAL STRATEGIC INITIA- TIVES CONCENTRATING ON 2023 To kick off 2023, Pharma.Aero will participate at the World Cargo Summit in Abu Dhabi. Their strategic partner, Abu Dhabi International Airport, will host the conference, and Pharma.Aero will be involved in the program, bringing in the valuable expertise of our global network of members representing the end-to-end pharma supply chain. Lastly, Trevor comments, “Furthermore, we will present and have a Pharma.Aero booth at the LogiPharma conference in Lyon, and we will, together with our strategic airport partners, investigate supporting regional initiatives. And, of course, for the third consecutive year, in September, we will organize our International Pharma Logistics Masterclass that will bring together industry executives, experts, policymakers and international academics for a unique knowledge exchange.” Trevor Caswell, Chairman, Pharma.Aero “Our platform brings pharma manufacturers, airport communities, airlines, ground handlers, digital platforms, and other stakeholders along the pharma supply chain.”
48 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM ENERGY LNME A lfa Laval has agreed to supply small heat exchang- ers for the world’s largest green hydrogen plant, which will be built in the Middle East. The renewable energy-powered complex will be part of Neom, a city created from the ground up in the northwest desert to establish a new paradigm for sustainable living. According to the International Energy Agency (IEA), hydrogen is one of the leading solutions for storing energy from renewables for days, weeks, or even months, and it allows for long-distance transportation. However, green hydrogen generation is fraught with difficulties. Improv- ing efficiency is critical to maintain- ing a steady temperature in the electrolyser when purified water is divided into hydrogen and oxygen using renewable power. Excess heat is generated when water is split into two gases, which must be continu- ally cooled. This project employs Alfa Laval energy-efficient plate heat exchangers. “Our business within hydrogen has developed well over the past years, and we are today supplying effi- cient heat exchangers to the various steps of the process; for production, distribution and use,” says Thomas Møller, President of the Energy Divi- sion at Alfa Laval. “With our prod- ucts and expertise, we will continue to be part of accelerating and scaling this area, which is so important in the race to net zero emissions.” Alfa Laval is a significant provider of heat exchangers to several major electrolyser manufacturers. Further- more, Neom’s location and infra- structure will enable the develop- ment of 4 GW of renewable energy from solar and wind, with the green hydrogen manufacturing facility using around half of it. It will be the world’s largest green hydrogen plant and the first gigawatt-scale installa- tion, producing 650 tons of hydrogen per day. This will then create 1.2 million tons of green ammonia each year. RENEWABLE ENERGY FACILITATOR ALFA LAVAL PROVIDES HEAT EXCHANGERS TO THE WORLD’S LARGEST GREEN HYDROGEN PLANT
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50 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM R ecent e-commerce research shows that small and medi- um-sized businesses (SMEs) that adopted e-commerce dur- ing the COVID pandemic are underestimating the importance that consumers now place on sustainabil- ity in their purchase decisions. FedEx Express (FedEx), a subsidiary of FedEx Corp, is one of the world’s largest express transportation companies. According to 75% of the SMEs polled, buyers are more interested in getting their items as soon as pos- sible than in shopping sustainably. Additionally, 73% of SMEs said that clients value price more than anything else when purchasing items. Consumer insights reveal that the reality is sub- stantially different. In July 2022, the What’s Next in E-Commerce study surveyed SMEs and consumers in 11 significant Asian regions. The survey looked at how e- commerce was developing in Asia and uncovered several tendencies that may lead to further development – from each market, 300 SMEs with fewer than 250 workers and 500 customers were surveyed. KEY FINDING: CONSUMERS WANT BOTH SUSTAINABILITY AND SPEED Consumer worries about the environ- ment continued to rise throughout the COVID-19 pandemic, contributing to the faster expansion of e-commerce. Many customers put the planet’s future first and do not want to make any con- cessions; they want both sustainability and quick delivery. In the study, 67% of respondents said they were just as concerned about how long online shopping would last as they were about getting their purchases swiftly. According to an e-commerce study, eight out of ten customers want the online retailers they do business with to use sustainable business practices. Additionally, seven out of ten custom- ers prefer doing business with organi- sations with strong Environmental, Social, and Governance (ESG) poli- cies. This offers an intriguing chance for SMEs to spend money on more environmentally friendly procedures. United Arab Emirates consumers are also the most likely to consider sus- tainability factors when purchasing. The entire Middle East and North Africa area are also exhibiting similar trends, according to a PwC poll, with 53% of respondents indicating they frequently or constantly buy environ- mentally friendly items. TAKING A MORE SUSTAINABLE AP- PROACH TO DELIVERY “Sustainability is no longer optional for SMEs interested in expanding their e-commerce businesses. Con- sumers increasingly see it as an essen- tial and non-negotiable part of their decision-making process,” said Kawal Preet, president of Asia Pacific, Mid- dle East & Africa (AMEA) at FedEx Express. “SMEs can make an im- mediate difference by thinking about the logistics connecting their supply chain to the end-consumer. At FedEx, we’re already taking tangible steps to mitigate the impact of delivery on the planet.” Lastly, to cut carbon emissions dur- ing the delivery cycle and achieve car- bon-neutral worldwide operations by 2040, FedEx is taking a multi-track approach. For last-mile deliveries, this entails the purchase of electric trucks and digital solutions like FedEx® Electronic Trade Documents, which enable users to submit their customs documentation electronically and therefore cut down on paper usage. Additionally, FedEx is putting waste- reduction strategies into practice, such as reusable packaging. E-COMMERCE LNME E-COMMERCE TRENDS The FedEx survey, which concentrated on important Asian regions, revealed tendencies comparable to how MENA customers value substantiality in their e-commerce purchase decisions.
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52 | LOGISTICS NEWS ME | DECEMBER 2022 WWW.CBNME.COM SUSTAINABILITY LNME A gility, a provider of supply chain services, infrastructure, and in- novation, announced that a warehouse at its Agility Logistics Park complex in Riyadh is the first in Saudi Arabia and the only one in the GCC to earn EDGE Advanced certification as a sustainable building. The International Finance Corp. (IFC), a subsidiary of the World Bank, oversees the EDGE (Excellence in Design for Greater Efficiencies) certifi- cation system for energy-efficient build- ings. Basic accreditation necessitates a minimum anticipated savings of 20% in energy usage, water use, and “em- bodied energy” in materials compared to standard local construction. Agility received EDGE Advanced certification for a warehouse situated in 870,000 SQM Riyadh park. EDGE Advanced buildings are “zero-carbon ready” structures that are at least 40% more energy efficient than others in the market. “Agility is determined to lead the way in developing modern, energy-efficient logistics infrastructure. We want to help drive Saudi growth, generate jobs, conserve resources and be an example for others around sustainability,” said Michel Saab, CEO of Agility Logistics Parks/Global Operations. Agility Logistics Parks are secure, connected, 24/7 complexes with Grade A, international-standard warehouses designed with advanced engineering and sustainability features. In addition to its Riyadh complex, Agility Logistics Parks operates a 200,000 SQM facility in Dammam and recently announced plans to invest SAR 611 billion (USD 163 million) to build a 576,000 SQM warehouse park near Jeddah. International and local enterprises from the retail, consumer products, technology, automotive, energy, and e-commerce industries are among the clients of Agility Logistics Parks. In Oc- tober, Saudi Arabia released outlines of a comprehensive strategy to establish the nation as a global logistics hub. The Global Supply Chain Resilience Initiative (GSCRI) of Saudi Arabia hopes to encourage $11 billion in new investment in its first two years and to strengthen the country’s role as a criti- cal supply chain crossroads through the advancement of logistics and industrial base, economic cities, green energy, innovation, and production. “We believe Agility has an important role to play in helping the Kingdom achieve its ambition to be a key link in global supply chains and to meet the goals outlined in its broader Vision 2030 plan,” Michel concluded. AGILITY SAUDI WAREHOUSE MAKES HISTORY AS THE FIRST IN THE GCC TO EARN EDGE STATUS
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