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CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE JUNE 2022 M A S S T R A N S I T The future of transport is green E V E N T R E V I E W Advanced technologies to reshape supply chain sector O P - E D Data-driven insights improve supply chain decisions Soham Chokshi The CEO and Co-Founder of Shipsy discusses how technology is imperative to enable ESG results and drive sustainable logistics CHANGE FORTECH
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
LOGISTICS NEWS ME | JUNE 2022 | 3 IN THIS ISSUE TECH FOR CHANGE 10 REGIONAL NEWS 16 FINANCE & INVESTMENT PRESENTING THE RIGHT OPPORTUNITY Manrre Logistics Fund’s Chief Executive Officer Kunal Lahori shares his insights on industrial real estate investments and his vision for the company 20 SPECIAL REPORT TOP LAST-MILE DELIVERY SERVICE PROVIDERS IN THE REGION Logistics News ME delves into discovering the best last-mile delivery service providers in the region in terms of efficiency, transparency, cost- effectiveness, and sustainability 28 EVENT REVIEW ADVANCED TECHNOLOGIES TO RESHAPE SUPPLY CHAIN SECTOR Over 60 industry leaders shed light on ways to accelerate digitalisation and sustainability within the supply chain, logistics and procurement industry at the Digital Supply Chain Show 30 COLD CHAIN WHAT’S ON THE HORIZON FOR COLD CHAIN LOGISTICS Ken West, Reefer Digital Development Manager at Maersk, shares his expert opinion on the future of cold chain logistics 38 OP-ED DATA-DRIVEN INSIGHTS IMPROVE SUPPLY CHAIN DECISIONS Gib Basset, Director of Solutions Marketing, Supply Chain, Alteryx shares how data-driven insights can mitigate supply chain risks 40 MASS TRANSIT THE FUTURE OF TRANSPORT IS GREEN Leading societies to a low carbon future, Alstom’s Managing Director for the Middle East, North Africa, and Turkey Mama Sougoufara reveals how the company is frontrunning energy-efficient mobility Soham Chokshi, CEO and co-Founder of Shipsy, discusses how technology is imperative to enable ESG results and drive sustainable logistics 32 20 40
6 | LOGISTICS NEWS ME | JUNE 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 BUSINESS DEVELOPMENT DIRECTOR Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Jochebed Menon EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Joshua Sinanbam aj@bncpublishing.net PHOTOGRAPHER Alexander Bungas EDITOR’S NOTE LNME In this issue, we highlight how last-mile delivery has evolved post the pandemic. What we learn from the experts how technology has enabled their businesses to flourish increasing efficiency, visibility, scalability, and safety. The Digital Supply Chain Show, held on 25 May in Dubai, echoed the same sentiment with speakers emphasising how technology helps manage end- to-end supply chains better. Examples demonstrated at the conferences revealed the efficiency gains possible when companies have a well-planned digital transformation. Another key event – Seamless Middle East 2022, held from 31 May to 1 June – reiterated the same. Efficiency, visibility, data-driven capabilities, automation, digital commerce, qCommerce, localisation and smart data segmentation were some of the topics discussed at the event. Detailed coverage will feature in the July issue. And finally, Shipsy – the smart logistics management platform – features on the cover. CEO and Co-founder Soham Chokshi talks sustainability in logistics and how technology is imperative to drive down carbon emissions while remaining profitable. H ello June! We’ve crossed the halfway mark to 2022 with a lot taking place in the past six months. A key takeaway is the amplification of technology in the logistics and supply chain sector. We’re almost over the pandemic – not there yet – but we’ve achieved considerable progress in dealing with the aftermath and moving forward. Jochebed Menon Editor, Logistics News Middle East jochebed@bncpublishing.net
10 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM REGIONAL NEWS LNME A ir France-KLM Group and the CMA CGM Group announced an exclusive partnership that will see both parties combine their complementary cargo networks, full freighter capacity and dedicated services to build an even more com- petitive offer thanks to the unrivalled know-how and global footprint of Air France-KLM and CMA CGM. CMA CGM and Air France-KLM share a strong ambition to invest and grow sustainably in the air freight business. The agreement will have an initial duration of 10 years. Air France-KLM and CMA CGM will join and exclusively operate the full-freighter aircraft capac- ity of the respective airlines consisting initially of a fleet of 10 full-freighter aircraft, and an additional combined 12 aircraft on order: Four full-freighter aircraft at CMA CGM Air Cargo (with outstanding or- ders for an additional eight aircraft, two of which may be operated by Air France-KLM in the future) Six full-freighter aircraft at Air France- KLM Group based at Paris-Charles de Gaulle airport and Amsterdam Airport Schiphol (with outstanding orders for an additional four aircraft). This new commercial partnership also covers Air France-KLM’s belly aircraft capacity, including over 160 long-haul aircraft. The partnership will leverage both partners’ respective global sales teams, presenting one voice to the customer. The strategic commercial partnership is expected to generate significant revenue synergies including the joint design of the full freighter networks and enhanced products and services mix opportunities. It will help meet customers’ ever- increasing need for more integrated and resilient supply chains and will leverage Air France-KLM’s vast existing franchise, experience, and capabilities in air freight, backed by a global cargo network. CMA CGM will mobilise its large com- mercial network and global logistics platform and will complete this offer with innovative logistics and multimodal solutions, particularly in sea and land transport. As part of this long-term exclusive partnership, CMA CGM will reinforce its commitment in the air freight industry by becoming a new reference share- holder in Air France-KLM. CMA CGM has the firm intention to take up to 9% of Air France-KLM’s ex-post share capital, for a period con- sistent with the implementation of the strategic commercial partnership. This investment could be made as part of the contemplated capital increase of Air France-KLM, as an- nounced on February 17th, 2022. Air France-KLM’s main shareholders will support a resolution for the ap- pointment of one board member rep- resenting CMA CGM at the next share- holders’ meeting (May 24, 2022). Rodolphe Saadé, Chairman and CEO of the CMA CGM Group said: “I am very pleased with this strategic partner- ship with Air France-KLM. It allows us to significantly accelerate the develop- ment of our air division, CMA CGM Air Cargo, which was created just over a year ago, and to position our two com- panies among the world’s leading play- ers in air freight. “This partnership is fully in line with CMA CGM’s strategy and its ambition to become a leader in inte- grated logistics, for the benefit of its customers. Through our stake in the company, Air France-KLM will be able to count on us to support its future development.” Air France-KLM Group CEO Benja- min Smith said: “This strategic part- nership leverages the complementary skills, expertise and activities of Air France-KLM and CMA CGM. It is a landmark step which will significantly strengthen and expand the Group’s position in the air cargo industry. I am also extremely pleased that this com- mercial partnership with CMA CGM has resulted in their decision to invest directly in the Air France-KLM Group, demonstrating a strong testimony of their belief in the future success of our Group.” AIR FRANCE-KLM AND CMA CGM INK LONG-TERM STRATEGIC PARTNERSHIP IN GLOBAL AIR CARGO
LOGISTICS NEWS ME | JUNE 2022 | 11 REGIONAL NEWS M ODIFI, a global platform for SMEs to finance and man- age international trade, announced a partnership with DP World. The partnership aims to facilitate rapid and seamless access to working capital by adding MODIFI’s trade finance products to CARGOES Finance by DP World. CARGOES Finance by DP World is a fintech platform that brings together global importers, exporters, logistics companies and financial institutions to facilitate expeditious end-to-end global trade finance. CARGOES Finance pro- vides lenders with access to data on cargo movements, enabling them to lend with confidence to the SME seg- ment. DP World customers with cargo and shipping requests will now be able to take advantage of MODIFI’s trade fi- nance products for both importers and exporters, enabling them to get access to working capital and manage their cash flow with confidence via a unified digital cockpit. Mike Bhaskaran, COO for Logistics & Technology, DP World said: “We strive to provide new solutions for our customers that not only add value to the service we provide, but also help to digitise the trade ecosystem and en- able smarter trade across all markets. Our partnership with MODIFI will see us continue our progress on this mission and continue developing the offering of the CARGOES Finance platform for our SME customers.” Nelson Holzner, CEO & Co-Founder of MODIFI, said: “With global trade witnessing significant disruption dur- ing the COVID-19 pandemic, finance and payments are playing a vital role in reducing the impact of disruption on importers and exporters. “Our partnership with CARGOES Finance will deliver huge value across the supply chain by unifying our fintech platforms and allowing us to leverage each other’s expertise. This collabora- tion will ultimately ensure businesses are able to access the finance, the data, and the tools they need in order to meet their customers’ needs world- wide.” MODIFI PARTNERS WITH DP WORLD TO ENABLE DIGITISATION OF TRADE
12 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM REGIONAL NEWS LNME A ir Arabia, the Middle East & North Africa’s low- cost carrier operator, reported a strong first quarter (January to March) in 2022 as recovery in demand for air travel continued. Air Arabia reported a net profit of Dhs291 million for the first three months ending March 31, 2022, an increase of 756% compared to Dhs34 million registered in the corresponding quarter in 2021. In the same period, the airline posted a turnover of Dhs1.12 billion, a 97% increase in turnover compared to the first quarter of last year. The financial and operational results achieved in the first quarter were backed by the continuous recovery in demand for air travel. More than 2.4 million passengers flew with Air Arabia between January and March 2022 across the carrier’s five hubs, an 86% increase compared to a total of 1.3 million passengers carried in the first quarter of last year. The airline’s average seat load factor – or passengers carried as a percentage of available seats – during the first three months of 2022 stood at an impressive 79%, up 4% compared to the same period last year. Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said: “The strong performance we witnessed last year continued in the first quarter of 2022 and was supported by higher customer demand for Air Arabia’s value driven product as well as rigid cost control measures that the airline took since the start of the pandemic.” He added: “We have continued with our network expansion strategy in the first quarter of this year by adding new routes and new frequencies across all operating hubs as well as continuing with preparations for the launch of our new ventures in Armenia and Pakistan.” Air Arabia added four new routes from its operating hubs in the UAE, Morocco, and Egypt the first three months of 2022 and fully resumed its city check-in across the UAE. Air Arabia Group also unveiled the brand identity of its latest two ventures ‘Fly Arna’ and ‘Fly Jinnah’ in Armenia and Pakistan respectively. Both joint ventures are expected to be operational by mid-year. Al Thani concluded: “In addition to the lasting impact of COVID-19 on global aviation, the industry continues to face geo-political challenges, higher oil prices and uncertainty towards full economic recovery. Although all these challenges are of a changing nature, we have full confidence in the business model that we operate, the strength of the aviation industry worldwide, as well as its role in supporting regional and global economic recovery.” AIR ARABIA REPORTS 97% INCREASE IN TURNOVER IN FIRST QUARTER COMPARED TO 2021
LOGISTICS NEWS ME | JUNE 2022 | 13 REGIONAL NEWS A l Masaood Commercial Vehicles and Equipment (CV&E), part of Al Masaood Group, Abu Dhabi’s leading conglomerate, has announced that it has been selected as the authorised distributor for Toyo Carriers Manufacturing (TCM) in the UAE (Abu Dhabi, Al Ain, Western region, Dubai, and the Northern Emirates). TCM, a long-established global brand in the material han- dling industry, offers a high-quality portfolio of forklift prod- ucts designed and engineered to meet client requirements. Supplied from production facilities in Japan, China, Thailand, and Europe, TCM’s value-for-money product range includes internal combustion engine forklifts, electric counterbalanced forklifts, reach trucks and skid steer loaders. The load capacity of small TCM forklifts ranges from 1.5 tonnes to 23 tonnes, with the brand’s large-size products able to support heavy tasks such as container handling operations in ports. Mohamed El Zeftawi, General Manager of Al Masaood CV&E, said: “As its authorized distributor, we at Al Masaood CV&E are tying our customer-centric sales and aftersales sup- port to TCM’s robust product range through this partnership, thereby providing an end-to-end service to our customers. “To offer holistic solutions, we also provide flexible financing schemes and attractive leasing options. TCM is the latest in Al Masaood’s growing network of partnerships with renowned global brands, best known for their quality and excellence. This partnership exemplifies our commitment to bringing to the UAE market top quality products to support the opera- tions of relevant local sectors. TCM’s line of forklifts is avail- able at Al Masaood CV&E showrooms in Abu Dhabi, Al Ain, and Northern Emirates (Sharjah).” Kosuke Matsuda, Acting Deputy Manager – Overseas Sales and Marketing Headquarters, Mitsubishi Logisnext Co., Ltd., said: At Mitsubishi Logisnext, we are proud of the enviable legacy of the TCM brand in the history of Japanese technol- ogy. The TCM brand had pioneered the manufacturer of the first “Made in Japan” internal combustion forklift truck in 1949. We are indeed grateful for the many years of trust from our customers in the UAE who appreciate the reliability of the TCM brand. “Our increasing collaboration with Al Masaood CV&E, the exclusive TCM agent in the UAE, is intended to open new frontiers to continue in the excellent delivery of our after-sales service and for be-spoke solutions in material handling. “The UAE is one of the most important global markets for us at TCM.” He added: “As we aim to build a more robust market pres- ence in the country and the region, we are confident that partnering with Al Masaood CV&E is the right strategy for us given its proven track record in sales and aftersales support, technical capability, and outstanding customer service. TCM’s diverse product range has been designed to deliver affordable top quality that satisfies varying customer needs across multi- ple sectors.” The TCM forklift range is available at Al Masaood CV&E’s showrooms in Abu Dhabi, Al Ain, and Northern Emirates (Sharjah). TCM APPOINTS AL MASAOOD AS DISTRIBUTOR FOR HEAVY AND MEDIUM FORKLIFTS IN THE UAE
14 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM REGIONAL NEWS LNME E tihad Cargo, the cargo and logistics arm of Etihad Aviation Group, has appointed Tim Isik as Vice Presi- dent – Commercial. Based in Etihad Cargo’s headquarters in Abu Dhabi, Isik will oversee the carrier’s global commer- cial operations. Isik joins Etihad Cargo from American Airlines, where he gained over a decade of experience working within the aviation and air cargo sectors. In his new role with Etihad Cargo, Isik will oversee the development and deployment of the carrier’s sales strat- egy and be responsible for further growing Etihad Cargo’s strategic relationships, exe- cuting sales and marketing plans and driving team performance. Isik will lead Etihad Cargo’s commercial operations globally, supported by Latha Narayan, Etihad Cargo’s Director – Com- mercial Asia Pacific, Australasia and Indian Subcontinent, and Mark Faulkner, Director – Cargo Commercial West. Isik will report to Martin Drew, Senior Vice President – Sales & Cargo. “Etihad Cargo is delighted to have Tim on the team. I am confident his knowledge and expertise will contribute to Etihad Cargo’s continued growth, enabling the carrier to further strengthen its position as the air cargo partner of choice,” said Drew. Isik said: “It’s an exciting time to be joining Etihad Cargo, following the carrier achieving a milestone year in 2021. I look forward to working closely with Martin and the rest of the team as Etihad Cargo continues its jour- ney of growth through innovation and suc- cessfully adapting to the needs of customers and the dynamic challenges of the air cargo market.” D ubai Municipality’s Geo- graphic Information Systems (GIS) Centre, the official source for providing and updating maps, plans and geographic information for Dubai, has initiated a project of designing highly precise digital maps for autonomous vehicles. This step comes in line with the ambi- tions and visions of the smart Dubai government to promote digital trans- formation of public utilities and make Dubai ‘the best city to live’ in the world as well as strengthening Dubai Munici- pality vision of making it the pioneering global city. The project targets preparing and designing maps as per the best standards and international practices, reflecting the emirate’s spirit of innova- tion and creativity. These maps are set to be utilized by businesses offering specialized solutions for autonomous vehicles, which are perceived to con- stitute most of Dubai’s transportation in the future. Dubai Municipality’s GIS Centre con- tinues to coordinate with partners and concerned entities to promote inte- grated concepts of highly precise maps. Such efforts aim to ensure optimum implementation of the maps in line with the specific standards and requirements, hence allowing map users to enjoy a unique and exceptional driving experi- ence. ETIHAD CARGO APPOINTS EX-AMERICAN AIRLINES’ TIM ISIK AS VP COMMERCIAL DUBAI MUNICIPALITY INTRODUCES PRECISE DIGITAL MAP PROJECT FOR AUTONOMOUS VEHICLES
LOGISTICS NEWS ME | JUNE 2022 | 15 REGIONAL NEWS E tihad Rail will host the 16th edition of Middle East Rail to outline the roadmap for transforming the transporta- tion & logistics industries in the region. Middle East Rail will be taking place at the Abu Dhabi National Exhibition Centre (ADNEC) on 17-18 May 2022. The event, which is the largest trans- port event in the Middle East, North Africa and South Asia, will bring to- gether leaders of the entire transporta- tion community, forward-thinking senior executives, key decision makers, and government representatives to con- vene, discuss the most pressing topics in the global railway and transportation sector, and highlight the latest innova- tions in the industry. Middle East Rail will bring together more than 600 VIPs, government offi- cials, transport and infrastructure indus- try experts from the Gulf Cooperation Council (GCC), as well as 6,000 attend- ees, more than 200 speakers, and more than 250 exhibitors. Following the launch of the UAE Rail- ways Programme by the UAE govern- ment in December 2021, which will be the largest integrated system for trans- porting goods and passengers across the country, Middle East Rail 2022 will provide a platform to support and drive the growth of ambitious transporta- tion projects across rail, infrastructure, freight, and logistics. To support achieving a smart and clean transportation system, Middle East Rail 2022 will include conference presentations, panels and interviews on connected and intelligent systems, au- tomated and safe processes, Internet of things (IoT) and data analysis, sustain- able operations and more. The event will showcase the latest rail innovations and technologies, and gen- erate business opportunities in the rail, logistics, and transportation industry through facilitating networking oppor- tunities and engaging discussions. Middle East Rail 2022 will include dedi- cated conferences that provide more than 50 hours on sustainability, digital innovation, and innovative mobility, across the two days of the event. It will also include more than 50 hours of Continuing Professional Develop- ment (CPD) certified workshops and seminars, which aims at highlighting the latest challenges operating in the region to the engineering community who are building world class projects. In addition, attendees will have a chance to explore more than 100 startups op- erating in the smart mobility ecosystem, their new products, and innovations. Omar Al Sebeyi, Executive Director of the Commercial Sector at Etihad Rail, said: “We are delighted to be hosting the upcoming edition of Middle East Rail, which comes as part of our com- mitment to support the development of the transportation and logistics industry in the UAE and the region. Middle East Rail will contribute to showcasing the latest technologies, fostering partner- ships, stimulating investments, and exchanging knowledge and expertise, which are key for driving the growth in- dustry in the UAE and the region.” “At Etihad Rail, we ensure integrating cutting-edge technologies and follow- ing the best practices in the develop- ment of the UAE National Rail Network, to support the country’s economic growth. We look forward to conven- ing with industry leaders and experts at Middle East Rail to shape the future of the rail industry in the region,” he added. Etihad Rail aims to link the UAE’s cen- tres of trade, industry, and population, and will provide passenger and freight services. Stage One of the Network has been operational since 2016. Stage Two is progressing at an accelerated pace, achieving 75% of the project’s comple- tion. ETIHAD RAIL TO UNVEIL ROADMAP FOR TRANSPORTATION AND LOGISTICS SECTORS AT MIDDLE EAST RAIL
16 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM T he UAE retail eCommerce market reached a record USD3.9 billion in 2020, a 53% year-over-year increase driven by the COVID- 19-led digital shift. With this growth comes the significant re- quirement for last mile fulfilment cen- tres and operational hubs; all of which require vast amounts of warehousing square footage. Manrre Logistics Fund, a private Dubai-based investment company, en- tered the market in 2018 to capitalise on this and offers investors investment opportunities in industrial and logistics real estate. Manrre focuses on institutional- grade logistics and industrial proper- ties in locations including Jafza, Dubai Investments Park and Dubai South, in addition to investments in the cloud, dark kitchen and alternative spaces in the UAE. Strategic investments The company recently announced two strategic investments in Jebel Ali Free Zone (Jafza) increasing the value of its portfolio by 22.5% to USD71.3 million. The first of the investments in Jebel Ali is a facility leased to Infofort, a subsidiary of Iron Mountain, a com- pany focused on records management, data backup and recovery, document management and data centres. The second is AMS Integrated Solu- tions, a Danish company operating in nine countries specialising in fleet management, technical training, and logistical needs for mission readiness. Both new additions have fully guaran- teed 10-year lease agreements in place. Kunal Lahori explains how the fund works. “Manrre is the one of the few players in this niche space and presents investors with a unique opportunity for exposure to a growing class of regional assets. The fund has a three- year track record and has delivered an annual ROI of 7.7% since inception which in comparison to other global real estate funds is on the higher end of the spectrum,” he says. Commenting on the twin invest- ments, Lahori says: “We are extremely proud of the new additions to our ever-growing investment portfolio. Both investments align with our strat- egy on long-term and stable income generation of logistics assets, with high exposure to the rapidly growing e-commerce market. This allows our investors to benefit from a higher-yield and a commitment to capital preserva- tion.” High yields There has been significant growth over the last ten years in Dubai’s industrial real estate sector. He adds: “We have seen a shift in demand which is more towards eFulfilment and distribution rather than other areas. Technology is being used more in the space along with a big focus on environmental, social, and governance (ESG) factors which includes LEED and solar as a priority, our new facilities will incor- FINANCE & INVESTMENT LNME PRESENTING THE RIGHT OPPORTUNITY Manrre Logistics Fund’s Chief Executive Officer Kunal Lahori shares his insights on industrial real estate investments and his vision for the company Julian Maynard, Managing Director, Maynard Design
LOGISTICS NEWS ME | JUNE 2022 | 17 PRESENTING THE RIGHT OPPORTUNITY | KUNAL LAHORI porate such sustainability features. For us, ESG is more than good intentions. It’s about creating a tangible, practi- cal plan that achieves real results. It’s about embedding these principles - and more across our businesses - from investment to sustainable innovation.” Lahori further notes: “If you look at the UAE market, the eCommerce sec- tor currently accounts for about 8% compared to more mature markets like the US. This illustrates the significant growth opportunity ahead. We are confident that there is only an upside for the demand for the industrial real estate.” Lahori is confident the future invest- ment plans of the fund will continue to build on the successful investment strategy the firm has laid out. “When evaluating any further growth or expansion, our team is consistently evaluating them as per our strategy and investment criteria; right asset, right tenant, right industry, long-term growth viability,” he shares. The company has plans to acquire real estate that is strategically integral to the success of the regional logistics sector and have a futuristic focus on technology such as data centres, cloud kitchens, dark stores. “Manrre’s journey has just started, and we’re now looking to scale to the wider GCC market. Moving forward, we will continue to focus on expand- ing our footprint in a steady pace. In today’s inflationary environment, real estate investments provide potential recurring income for investors and can keep pace or exceed inflation in terms of recurring income and appreciation,” he notes. Into the next phase To boost its position across the region, Manrre recently appointed CBRE as their evaluator and advisor for the next phase of growth of the fund. CBRE is the world’s largest commer- cial real estate services and investment company, with the leading global market position in leasing, property sales, outsourcing, property manage- ment and valuation. “Since the inception of the fund, we have had a laser-focused commit- ment to this specific asset class and COVID-19 was a natural stress test on the portfolio. Having a solid strategy and working with the right partners has allowed us to weather the global macro-economic challenges and now focus on the continued growth of the fund,” adds Lahori. This continued growth, drives increasing demand for logistics real estate, industrial warehouses, and ful- filment centres, all of which form the core of the Manrre Fund’s portfolio. “Manrre’s journey has just started, and we’re now looking to scale to the wider GCC market. Moving forward, we will continue to focus on expanding our footprint in a steady pace.”
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20 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM SPECIAL REPORT LNME TOP LAST-MILE DELIVERY SERVICE PROVIDERS in the region Logistics News ME delves into discovering the best last-mile delivery service providers in the region in terms of efficiency, transparency, cost-effectiveness, and sustainability *In alphabetical order 20 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM
LOGISTICS NEWS ME | JUNE 2022 | 21 TOP LAST-MILE DELIVERY SERVICE PROVIDERS IN THE REGION I n the past five years, we have seen a lot of changes in last-mile delivery. Among the main disruptors are the pandemic-induced surge in eCommerce volumes, changing consumer trends, and innovation in last-mile delivery,” Alaa Saoudi says. The growth in eCommerce sales can be attributed to the growing number of businesses with new digital business models that allow for digital payments, increasing purchasing power of customers, and the widening range of products that can be purchased online. He adds: “Customer preferences have also shifted for instant, time-definite, seamless, and contactless deliveries with free or low shipping costs. In addition, customers also want to be in control of their own delivery experience including the ability to track deliveries in real-time, flexibility to select delivery windows, and optionality to communicate directly with the delivery driver or customer care representative.” Scaling operations This has pushed last-mile delivery companies such as Aramex Express to figure out how to improve their operations by scaling their capacity to keep up with the surge in demand and leveraging technologies to drive efficiencies and reduce delivery costs. Saoudi explains: At Aramex, we have accelerated our investments towards scaling our operations to capture the strong demand and surge in eCommerce volumes. Last year, we inaugurated a new express courier handling facility at the Model Cargo Village at King Khalid International Airport. “The new facility is equipped with the latest technologies including the latest automated parcel sorting systems with a capacity to handle more than 100,000 shipments per day. In addition, it is directly connected to the Saudi Customs Clearance systems, which will significantly reduce the time needed to clear the shipments and deliver them to their destination. We have also established two new hubs specifically in Prague to cover Europe and Accra to cover West Africa. Additionally, in Kuwait, we expanded our presence by moving to a new 12,500 sqm fulfilment centre.” Leveraging technology The firm has also employed technology-driven solutions such as Aramex Spot and Aramex Fleet, both of which are delivering flexible operations and scalability along with new delivery preferences for end customers. He adds: “In addition, we are leveraging several technologies including the migration to the cloud and operation-enhancing AI technologies that optimise delivery routes and shorten delivery times. “Our recent investments in technology, AI and analytics data adds greater visibility and predictability to our Express business, leading to greater efficiency and enhanced customer service. Of note, we teamed up with Salesforce to integrate a customised CRM system that provides us with greater access to gain a holistic view of customers across its portals, apps, and social media to offer optimised solutions.” Aramex is also seeking ways to every mile of the delivery journey – from first to last mile – as efficient and eco-friendly as possible. “We dedicate resources – time, people, and money – to constantly innovate our operations and processes. We have a very clear roadmap for automation across all facilities in our core markets in the coming two years,” Sauodi signs off. ALAA SAOUDI Chief Operating Officer Aramex Express
22 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM SPECIAL REPORT LNME e Commerce has been a huge benefactor of the pandemic, and a driving force for last-mile evolution. Amidst store closures, lockdowns and health concerns, online shopping increased in popularity and ushered in a new wave of consumers who embraced it out of necessity. Bachi Spiga explains: “The pandemic shifted consumer demand patterns. Financial constraints and social shifts caused many consumers to re-evaluate their spending, prioritising items considered more of a necessity during a ‘stuck at home’ situation. In the Middle East, DHL saw the fastest moving product categories to be hygiene, self-care, fitness apparel, office equipment and food items.” The insatiable rise in eCommerce has brought in a flood of new customers who are demanding to receive competitively priced shipments at their convenience. “This trend is challenging fulfilment,” discloses Spiga. “Last mile is the most expensive and time-consuming part of the supply process, accounting for over 50% of the shipping costs, and continuous investment is necessary in technology and solutions to improve fulfilment timelines through faster and more efficient deliveries, at lower costs,” he adds. Innovation in last-mile logistics New last mile delivery services are inspired by the need for safe, contact-free options, and have grown in popularity due of the flexibility and convenience they offer. With customers spoilt for choice, expectations for last-mile delivery innovation remain high. Heralding the last mile delivery revolution is technology. “Technology is crucial in driving efficiencies and curbing costs in last-mile delivery,” Spiga notes. “From the predictive capabilities of AI and big data-analytics used to solve operational challenges and determine dynamic route optimisation, capacity accuracy, and demand prognostics; to driverless trucks, rovers, and drones which can unlock new levels of safety, efficiency, and quality in last mile delivery, the integration of latest technologies in logistics can create a more dynamic and customised delivery service capitalising on enhanced visibility, transparency, reliability, and security.” As last mile delivery service continues to evolve, sustainability and environment- friendly practices comes to fore. Spiga says: “Sustainability gained momentum during the pandemic and has become an extremely important differentiator in logistics. “Consumers have become more conscious of the environmental impact of their online shopping and are turning away from unsustainable brands. There is a higher expectation on the businesses they buy from, to play their part to reduce waste across their entire supply chains. Logistics is increasingly prioritising environmental operational efficiency in last-mile delivery, re-visiting the transportation sector which is one of the main causes of global carbon emissions, and adopting eco-friendly strategies to green the last mile, be it through route optimisation, electric vehicles, or localisation of warehousing, to reduce our carbon footprint while maximising efficiencies.” Looking ahead With technology moving at a rapid pace, DHL is focused on localised and digitised fulfilment to improve the last mile. The sky is really the limit with last-mile delivery innovation. We have seen so much development already in last-mile solutions, from robots rolling down the sidewalk, to drones and parcelcopters landing in peoples’ back yards. We are still competing on time and cost, so we need to make sure we stay agile in adjusting to market trends and we are open to learning and reinvention,” he concludes. BACHI SPIGA Head of Operations DHL Express MENA
LOGISTICS NEWS ME | JUNE 2022 | 23 F or delivery companies, last- mile delivery is often the most challenging, time- consuming, and labour-intensive part of the entire delivery process,” Taarek Hinedi says. “At FedEx, we continuously look for innovative solutions to make deliveries more flexible, convenient, cost effective, and sustainable. One example is electric vehicles. With the increase in demand for last-mile deliveries, thanks to rapid eCommerce growth, electric vehicles are now being tested and added to our fleet around the world in phases with the goal of making the FedEx pickup and delivery fleet zero–emission by 2040.” The pandemic has fundamentally changed the way people shop for their goods, accelerating the rise in online shopping. Changes to how much and what consumers are buying online are transforming how deliveries are managed. Rising customer demand In 2021, consumer electronics, apparel and footwear, and F&B were the top three products in demand in the Middle East and North Africa region, according to reports. Another report states that, during the same year, the demand for smartphone in India increased with 5G shipments registering a growth of 555% year-on-year. Increasing demand is driving delivery companies to consider how they can become more efficient, while growing environmental concerns are increasingly influencing consumer purchasing decisions. He adds: “Globally millennials are choosing alternatives to home delivery on account of environmental concerns. Alternative pick- delivery solutions such as ‘hold at location’ or parcel lockers are becoming increasingly popular worldwide alongside innovative solutions such as zero tailpipe emission delivery robots and electric vehicles as companies look at environmentally sustainable transport options.” Every aspect of commerce is undergoing radical change and businesses are demanding greater control, flexibility, and visibility across their supply chains. Delivery companies are looking at new business models to operate more efficiently, while meeting the increase in demand for last- mile deliveries. Hinedi explains: “We’ve seen an exponential growth in eCommerce and the long-term shift that’s affected buying behaviour and how companies think about logistics. And, at the same time, with the advancement of logistics technology, supply chains are creating increasingly more data. “Today’s economy is rooted in the transfer and availability of information that moves things forward. Having real- time insights about supply chain decisions better informs how we can adapt to new and unexpected challenges. But with new tools now at our disposal…the possibilities may very well be limitless.” As technology evolves, so does its application. The transportation industry will see benefits of next-generation innovation for team members and operations, including computer-assisted vehicles, artificial intelligence, robotics, and drones. “These new technologies and innovations to use, and using data to inform future change, both in how we interact with packages travelling through the system and create and maintain more efficient supply chains will shape the future of last-mile deliveries,” he says. TOP LAST-MILE DELIVERY SERVICE PROVIDERS IN THE REGION TAAREK HINEDI Vice President of Middle East and Africa Operations FedEx Express “TODAY’S ECONOMY IS ROOTED IN THE TRANSFER AND AVAILABILITY OF INFORMATION THAT MOVES THINGS FORWARD.”
24 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM SPECIAL REPORT LNME E nsuring packages reach customers on time in the face of unprecedented demand has been the biggest challenge last mile delivery companies are facing since the pandemic. According to a report by McKinsey, ten years’ worth of eCommerce growth occurred in just the first few months after the pandemic began. As eCommerce continues to grow, last-mile delivery is being pushed to limits with challenges like limited public space, traffic congestion, shorter delivery windows and road safety. With just a few clicks, a consumer is given a day and time for home delivery. Roman Poludnev says: “For last-mile delivery, the last-click begins a symphonic production consisting of countless digital algorithms, resources, and people to deliver on consumer expectations to have the parcel delivered to their doorstep. “Consumers expect real-time visibility over their orders. They want to see where the driver is at any given time and exactly when the parcel will be delivered. They expect the delivery when it was promised. Delivery delays can cost brands their reputation, loss of customers and return business. This is where online customer loyalty is won or lost.” Advanced technology adoption He notes that since 2020, how the industry has seen “home delivery go from nice-to-have to essential”. “In a very short time, there have been changes to delivery processes that have been in place for years and rapid adoption of new technologies.” Poludnev maintains that as eCommerce grows, delivery service operators know that their share of the competitive landscape depends on their ability to fulfil customer expectations in areas of same and next-day delivery, offering a wide range of convenient delivery windows, accurate estimated time of delivery, as well as efficient and timely communications. He adds: “Technology plays a huge role in helping compete and perform at or above customer expectations. For instance, Honeywell’s comprehensive solution for entire supply chain ensures products and packages are trackable and traceable throughout the supply chain – a critical requirement when it comes to products such as pharmaceuticals, vaccines and for the food and tobacco industries. Track and Trace is a software solution that provides real-time visibility and reporting of products within a vehicle, a container, a pallet, or a packaging box at the micro-level, enabling users to track products throughout the supply chain.” Industries that have been challenged by the economic impact of the pandemic are rebuilding with a focus on resilience. “This is creating opportunities for optimisation and efficiency while furthering the digitalisation of the sectors, which we are enabled through Honeywell’s advanced technologies,” he expresses. Sustainable practices Advanced technologies are also helping companies to implement environment- friendly measures. Honeywell’s Voice Guided Work enables operations to efficiently handle eCommerce volumes, speeds, complexity and collaboration within warehouse and distribution centres. It also enables sustainable practices. Using a hands-free system, Voice Guided Work cuts back on paper waste. “Providers must meet or exceed the service needs of customers both in ways they expect, and in ways they have not yet imagined. This includes collaboration throughout the process and making a clear commitment to sustainability. To this end, Honeywell has made a commitment to drive sustainability in all aspects of business,” Poludnev says. Honeywell ROMAN POLUDNEV General Manager - Safety and Productivity Solutions for Middle East, Russia, Turkey, and Africa
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
26 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM SPECIAL REPORT LNME D ata and technology innovation have transformed last-mile delivery, helping to drive operational efficiency and productivity. noon has worked hard to push these boundaries, enhancing the customer experience through smarter warehouse capabilities and locations, innovative order tracking, and more streamlined deliveries to ensure safety and sustainability within its last-mile fleet especially in the past few years. Ammar Tambawala explains how the pandemic has impacted noon’s last-mile delivery in the last two and a half years. “We have seen an uplift in two key areas: safety, and demand. The demand for silent, contactless deliveries increased significantly, providing a safer experience for both noon’s customers and delivery team. We were able to match the increase in online purchases after travel restrictions were lifted by increasing the scope and efficiency of our last-mile fleet.” Challenges and hurdles This hasn’t come around without its fair set of challenges. “A key focus is on increasing the efficiency and productivity of our last-mile fleet in order to meet customer demand at a sustainable rate for delivery associates,” he says. “The global supply chain crisis is putting a strain on vehicle lead times and availability, and rising cost inflation (fuel prices) has been a strain on the industry. We’re addressing these issues through smarter operational planning.” Technology plays a crucial role in helping last-mile delivery service providers such as noon to overcome these challenges. Tambawala notes: “A robust technological network is essential for effective last-mile delivery operations. Accurate address codes, smart location tracking, route optimisation, and high- frequency order updates have all contributed to smoother deliveries. This has allowed us to define optimal delivery clusters and delivery path optimisation, as well as improve our customer experience and expectations.” noon is also invested in ensuring its last-mile delivery services are more efficient while following sustainable practices. “Our ‘Get It Together’ mode allow customers to receive multiple packages in a single delivery, reducing fuel consumption and increasing productivity,” he reveals. “Allocation of click and collect lockers at multiple convenient touchpoints, more compact and reusable packaging are also important in decreasing our footprint.” Future focused Looking forward noon anticipates a significant increase in delivery volumes as the eCommerce industry expands. “Our primary focus will be on scaling up efficiently and sustainably to meet this demand. Consumer expectations have shifted dramatically, and we anticipate an increase in demand for faster deliveries, particularly in the Q-commerce space,” Tambawala says. He concludes: “noon’s fastest delivery service, noon in minutes, now offers customers in select parts of Dubai an assortment of thousands of products delivered in just 15 minutes.” AMMAR TAMBAWALA VP Ops Strategy noon
LOGISTICS NEWS ME | JUNE 2022 | 27 TOP LAST-MILE DELIVERY SERVICE PROVIDERS IN THE REGION L ast-mile logistics has become increasingly critical for the efficient operation of supply chains, especially as eCommerce is on the rise and consumer behaviour undergoes a rapid evolution. Borhene Ben Mena believes that urbanisation, eCommerce, and digitalisation have had a major impact on last-mile delivery in the last five years. He explains: “The rate of movement of people from rural areas into cities has continued to grow, despite being slowed for a period by the pandemic. The continual increase in consumer density has piled pressure on infrastructure and resources and challenged supply chain managers to devise new ways to fulfil and deliver orders to end consumers.” He adds: “The pandemic drove traditional brick-and-mortar shoppers to online shopping channels, giving them a taste of the ease of eCommerce. For many, online shopping has now become the preferred way of buying products and are flocking to eCommerce channels in droves. The increased demand for home deliveries means shippers must significantly boost their fulfilment and last-mile delivery processes. “With Amazon, Uber, and fast-food delivery firms offering a slick user experience, customers are expressing frustration at the slower standard of service offered by traditional delivery carriers. If they have a choice, they opt for tech-savvy companies that offer faster delivery. They are also demanding additional features such as selection and modification of delivery windows and tracking deliveries in real-time.” eCommerce a boon or a bane? eCommerce is spurring retail growth globally. “The demand for last-mile delivery services is exploding—luring many new players into the industry and spurring many companies to offer omnichannel services,” Mena adds. “Consequently, the last-mile delivery sector has also grown across the board. The biggest boom has been in the expected industries—food and groceries, apparel, and furniture—but also in less-expected industries such as pharmacies, banks, tobacco, coffee, luxury goods, and accessories.” Like consumers around the world, GCC clients have become used to the luxury of shopping from home and getting what they need, or fancy delivered in the shortest possible time. This surge in eCommerce has had its pitfalls: rise in global carbon emissions. “Customers are seemingly oblivious to the fact that the single-item delivery they are demanding is the most polluting leg of last-mile delivery. “Fortunately, more and more consumers are considering environmental and health concerns when buying products online. They are also becoming more ecologically conscious, with more than half of millennials citing protection of the environment as the reason for choosing alternatives to home delivery.” However, if eCommerce grows at the galloping rate that economists are predicting, a whopping 36% more delivery vehicles globally will be weaving in and around inner-city streets by 2030, increasing congestion and adding to carbon emission levels, Mena discloses. “To mitigate some of this choking carbon footprint, responsible last-mile delivery companies are investing in greener modes of transport, including electric vehicles, eScooters, and electric bicycles,” he adds. “Other innovations include establishing parcel lockers for the self-service collection of parcels, coordinating with other companies to improve load pooling, using AI for efficient real- time route optimisation, buying local, and tightening up returns policies by limiting the number of sizes and colours of the same item customers are allowed to order.” Mena believes that robotic delivery and drone delivery are going to revolutionise the shipping process. He concludes: “The cost of labour for last-mile delivery is approximately 60% of the overall delivery cost. By implementing robotic and drone delivery, companies will save costs. At the same time, implementing more automatic processes will keep workers safer.” BORHENE BEN MENA Chief Executive Officer Shipa Delivery
28 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM EVENT REVIEW LNME T he third Digital Supply Chain Show concluded on Wednesday, 25th May at Address Marina, Dubai. The anticipated event saw the successful participation of more than 300 supply chain experts from across the MENA region. Attendees and sponsors networked in person, reconnected with peers, and made new connections. Digital innovations that are accelerating visibility, efficiency, and predictability within the supply chain, logistics, and procurement industry were discussed at the event. Organised by Ventures Connect and supported by CIPS MENA, the primary focus of the event was on how companies in the region can set up and implement supply chain and procurement processes for improved resiliency, agility, and sustainability. Industry insights The Digital Supply Chain Show offered real-world examples and practical insights from supply chain giants like Amazon, DP World, Noon, Unilever, Lulu Group International, Chalhoub Group, ADNOC Group, Emirates Airline, Saudi Telecoms Company, and Mondelēz International. The practical examples demonstrated the efficiency gains possible when companies have a well-planned digital transformation and can access new knowledge by leveraging big data and technologies such as cloud, ERP systems, artificial intelligence, control tower and digital twins. Organisations have learnt in recent years the importance of de-risking their supply chains, especially if they are heavily reliant on one supplier or country. Digitalisation and data intelligence is giving companies new, faster insights that will support their decision-making. “65% of the increase in price is due to supply chain issues globally and not because of demand issues,” says Dr. Ashraf Mahate, Chief Economist, Dubai Industries and Exports Increasingly, multinational corporations and people are pledging to associate only with companies and brands who adhere to social and environmental standards. Companies are expected to have a high- quality sustainability strategy in place that allows them to meet their carbon reduction targets. The Digital Supply Chain Show explored how to build resilient and responsible procurement and supply chain operations, working with supply chains to reduce indirect emissions. Resilient digital supply chain “Leveraging emerging technologies is critical for increased accountability, transparency and efficiency and is one of the first steps towards building agile and resilient digital supply chain transformations,” says Baljeet Nagi, Director of SCM Sales Development & Strategy, Oracle. Speaking about the evolution of delivery and how each region differs. Ritesh Somani, Director, Supply Chain and 3PL Trans, Amazon MENA, shared how the variety of options offered by logistics and retail companies are adopting advanced Ritesh Somani, Director, Supply Chain and 3PL Trans, Amazon MENA ADVANCED TECHNOLOGIES TO RESHAPE SUPPLY CHAIN SECTOR Over 60 industry leaders shed light on ways to accelerate digitalisation and sustainability within the supply chain, logistics and procurement industry at the Digital Supply Chain Show
LOGISTICS NEWS ME | JUNE 2022 | 29 ADVANCED TECHNOLOGIES TO RESHAPE SUPPLY CHAIN SECTOR technologies to offer the customer the quickest and most efficient option. “It is critical to use technology to be able to provide delivery choices to customer in a seamless manner. Whether it’s delivered to their car boot, doorstep, or a locker, they want to have that freedom of choice. This is where technology comes into play.” He also discussed the global supply chain disruption, where getting things from point A to point B is becoming increasingly challenging. “What used to x days takes 1.4 to 2x days now. The challenge is how do you plan ahead with your vendors, manufacturers and suppliers, and use technology to ensure that once you get space on a container vessel or a cargo carrier, the inventory that you get is the right inventory - else that space is wasted.” He added: “This is where technology comes into the picture: to be able to predict the future demand and ensure that the orders placed are worth getting in the first place. With technology, we’re now able to predict where and when products are needed.” First-mile logistics Praveen Khare, Vice President, Retail Logistics & Fulfillment at Noon. com highlighted how Noon.com is realigning the business to focus on first-mile logistics. “We’re going back to the basics,” he said. “We’re taking into account all the learnings from the COVID-19 disruption. What is happening is no more merely a factory or port problem. “ He added: “What we’re try to emphasis on now is the project or container journey right from the time it enters the port to being placed on the vessel. It might look simple but it’s not the case. With the kind of blank sailing taking place everywhere, the entire supply chain needs to be re-calibered. Each vessel carries up to 20,000 of which 300 are mine, which means I need to also look at the sequence at which the containers are being offloaded. We’re focused more on creating visibility at the first mile of the business. If the base is correct, the rest is falls into place.” The key to the success of the supply chain sector now lies with technology. Blockchain, machine learning and artificial intelligence are key to creating visibility, efficiency and agility. SAP MENA’s Abdul Hakeem, Regional Sales Head - Digital Supply Chain Solutions, believes that the next big thing for supply chain technology is networking. Multi-directional collaboration He elaborated: “The COVID-19 pandemic brought to the forefront the need for multi-directional collaboration. Looking at the current scenario, most customers are still in the uni-directional flow. For example: you send the order to the supplier, the supplier sends the stuff to you. There is no proper flow of collaboration on what you want to do versus what constraints they have.” He added: “If we really want to build resilience, we need to transparently exchange information with suppliers and be aware of events that happen during the transit so we can respond accordingly. The disarray caused by COVID-19 was a deep tier disruption, supply chains didn’t have visibility.” He also revealed that the two main challenges the sector is facing now are full visibility and the convergence of planning and execution. “Artificial intelligence and machine learning gets one to a significantly better place in terms of planning, but if one’s unable able to get a consistent data fabric and bridge the gap between planning and execution - then you’re not achieving much in object user resilience. Convergence is a crucial factor, and we’re try to address it at SAP.” Abdul Hakeem, Regional Sales Head - Digital Supply Chain Solutions, SAP MENA Praveen Khare, Vice President, Retail Logistics & Fulfillment, Noon.
30 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM COLD CHAIN LNME W hen thinking about the current state of refrigerated logistics, two words come to mind immediately: challenges and innovation. Such different words, but intrinsically connected as one is the main cause for the other to come to life. If you are shipping any cargo today, particularly if your products are perishable, you are certainly familiar with challenges. A global pandemic, delays, congestions, political instability, shortages, and several other issues are plaguing the world of container logistics and weakening the links of global cold chains. Supply chain challenges are sparking fascinating innovation efforts, among both established players in the market for perishable goods as well as small start-ups, in areas ranging from pure data aggregation to new methods for extending shelf-life. There are huge opportunities to revolutionise and digitise the container logistics industry that is unfortunately still depending on unique paper copies for certain transport documents. But what is currently at the top of the wish list for cold chain customers? Levels of visibility Visibility is becoming a buzzword within logistics. Typically, cold chain customers are looking for a level of visibility and control that can answer three simple questions: WHAT’S ON THE HORIZON FOR COLD CHAIN LOGISTICS Ken West, Reefer Digital Development Manager at Maersk, shares his expert opinion on the future of cold chain logistics
LOGISTICS NEWS ME | JUNE 2022 | 31 WHAT’S ON THE HORIZON FOR COLD CHAIN LOGISTICS When will my container arrive? Customers want to know the exact time their refrigerated container is ready for pick-up from the terminal or when the trailer truck will arrive with their goods at the destination. To meet this need, Maersk is currently seeing an increased use of GPS trackers mounted on containers and GPS signals coming from the truck driver’s smartphone. Machine learning is also being applied to achieve more accurate arrival estimations taking both historic transport times and weather forecasts into account. Will my cargo arrive in the expected condition? Given the pandemic, customers are no longer able to travel as easily to destinations to check the quality of their cargo upon arrival. Now they need to rely more heavily on data points collected during the journey, and here temperature is the most important parameter to look at. More container carriers are investing in infrastructure which enables a remote data flow from the container, and several customers are even applying temperature loggers themselves on a few pallets inside the container. Despite this, we are still in the early days of having a fully connected cold supply chain: The container temperature does not tell the full story of cargo which might also have travelled through packhouses and cold store facilities on both import and export side. Transmitting temperature loggers have so far been too costly to apply on every single pallet or box of a shipment. Combining data from different sources into a single overview is a challenge, unless you have one party handling the entire cold chain. There is ongoing work on quality prediction models which can estimate the remaining shelf-life of certain perishable commodities based on parameters measured during the journey, but these models will in future be heavily dependent on data input from across the entire supply chain. New technology, such as smart- labels and sticker sensors, will soon come to a more realistic cost level and thereby enable reliable shelf-life predictions. Has my container been opened by any unauthorised parties? Container contamination, or even theft of cargo, are becoming a growing challenge for cold chain customers. Different compartments of a refrigerated container can be used by criminals to place illegal substances, unknown to the shipper or the receiver of the goods. Therefore, it is necessary for customers to know whether their container has been opened while in transit, especially during inland transportation or storage. Several types of door-opening and light detection sensors are becoming available in the market, and we are seeing an increased interest from customs service and import/export authorities to collaborate with logistics providers on data sharing to achieve more intelligent inspection routines, and therefore reduce unnecessary disruptions to customers’ supply chains. Enabling mitigating actions Overall, the logistics industry is undergoing transformation in terms of digitization and data offerings, with great momentum around new visibility related solutions and technology. Once the above mentioned three customer needs for visibility have reached a satisfactory level, then comes the next question to the logistics providers: which mitigating actions can I take here and now if things are not going according to plan? Serving customers with data is crucial, but the real benefits will only be achieved if the information is up-to-date, and everyone can interpret the aggregated data in the same way to take the right strategic decisions based on it. That will be the next big leap in terms of optimising global supply chains for perishable cargo to ultimately avoid cargo damage, contamination, or loss. Ken West, Reefer Digital Development Manager at Maersk
32 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM COVER STORY LNME Soham Chokshi, CEO and co-Founder of Shipsy, discusses how technology is imperative to enable ESG results and drive sustainable logistics TECH FOR CHANGE
LOGISTICS NEWS ME | JUNE 2022 | 33 TECH FOR CHANGE | SOHAM CHOKSHI W hen Soham Chokshi, Dhruv Agrawal, Himanshu Gupta, and Sahil Arora established Shispy back in 2015, their focus was on addressing the challenges that existed in the last-mile ecosystem. But soon they realised that supply chain and logistics sectors are all connected and that last- mile inefficiencies were only the tip of the iceberg. They saw an alarming need to marry the physical and digital parts of logistics. This in turn resulted in massive expan- sion of the platform across first, middle, last-mile, cross border logistics and intermodal freight movement. Today, Shipsy has grown into a sprawling business em- powering the biggest retailers, manufacturers, eCommerce providers, on demand delivery brands, and logistics service providers to build resilient, agile, and automated supply chain and logistics processes. Shipsy’s intuitive platform provides complete visibility of first, middle and last-mile operations, unlocks operational efficiency, and leverages real-time analytics to empower businesses to make data driven decisions, better manage costs, boost customer experience, and reduce carbon emis- sion. Rising environment pollution Carbon emissions pose an enormous threat to the environ- ment, living species, and businesses with some hard facts. Melting glaciers, growing cases of forest fires, and floods, among other natural calamities, are nature’s way of voicing her state of depletion. The consistent rise in global average temperature is trig- gering unprecedented floods, especially in Australia, Asia, and South America. Growing carbon emissions are a major contributor to these alarming figures. >>>
34 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM COVER STORY LNME Unfortunately, today 24% of global CO2 emissions can be attributed to the transportation sector, and 30% of this comes from trucks carrying freight. Going by the numbers, CO2 emissions from road freight transpor- tation have grown by 20% since 1995. These figures can be overwhelming. Taking just the region into consid- eration, in 2018, the Middle East and North Africa emitted 3.2 billion tonnes of CO2 and produced 8.7% of global greenhouse gas emissions (GHG) despite making up only 6% of the worldwide population, according to reports. Soham says: “As supply chain and logistics stakeholders, we can no longer ignore these figures and should consider it our responsibility to make the movement of goods sustainable. On the brighter side, governments, especially in this part of the world, are taking solid actions to battle growing carbon emissions.” Countries in the region have chalked out stringent penalties for those flout- ing environmental norms. Depending on the kind of violation and extent of damage caused to the environment, the Abu Dhabi government can levy fines on responsible parties up to Dhs1 million. “This can significantly impact the bottom lines of businesses that are heavily dependent on logistics opera- tions,” Soham suggests. Quick yet sustainable shipping With environmentalism going mainstream, modern customers are gradually showing signs of purchasing from brands that are socially responsi- ble and are taking measures to reduce their carbon footprint, especially in the last mile, says Soham. “But if one fol- lows the trend, this is not surprising.” A Global Customer Insights Survey revealed that 35% of consumers “AS SUPPLY CHAIN AND LOGISTICS STAKEHOLDERS, WE CAN NO LONGER IGNORE THESE FIGURES AND SHOULD CONSIDER IT OUR RESPONSIBILITY TO MAKE THE MOVEMENT OF GOODS SUSTAINABLE.”
LOGISTICS NEWS ME | JUNE 2022 | 35 PURSUING PROGRESS | MADHAV KURUP choose sustainable products, and 37% want products that come with environ- mentally friendly packaging. “Expecta- tions around eco-friendly deliveries can be considered an organic progression. Especially in the Middle East, where cus- tomers are more empowered and aware,” he notes. He adds: “At the same time, customers also love fast deliveries and are willing to pay more for the same. Ensuring deliver- ies with turnaround times of less than 30 minutes tends to consume more resources, more delivery trips, and more fuel, leaving behind bigger carbon footprints. “So, how does one balance customer experience and an organisation’s sustain- ability goals? The answer lies in deploying advanced logistics management solutions like Shipsy. What really inspires me is that a recent survey by Nielson highlighted that 73% of eCommerce customers say they would want to change their pur- chasing behavior to reduce any negative impact on the environment.” Driving logistics sustainability Shipsy’s smart logistics management powered by AI helps businesses reduce their carbon footprint by ensuring lesser miles traveled, shrinking trip volumes, improving first-attempt success rates, gain- ing better visibility of carbon footprint and more. He explains: “We are making this possi- ble through our technology by improving address accuracy, driving intelligent route planning, optimising vehicle capacity, ensuring dynamic clubbing of orders, improved customer communication, elimi- nating diversions and idling, leveraging intermodal transportation, and providing sustainability dashboards.” Inaccurate customer addresses are a massive challenge in the Middle East. “It increases last-mile delivery attempts and subsequently results in greater carbon emissions,” Soham reveals. According to Statista, last-mile delivery failure rates range from 15% in the UAE to 40% in Saudi Arabia, and this can im- pact eCommerce revenue worth USD7.42 billion in the Middle East. “Shipsy’s advanced geocoding capabili- ties seamlessly convert physical addresses into highly accurate latitude/longitude- >>>
36 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM COVER STORY LNME based locations and drastically eliminates delivery failures due to incorrect address- es. This boosts profitability and brings down delivery reattempts,” he shares. With regards to driving intelligent route planning, Shipsy considers mul- tiple constraints like fuel consumption, turnaround times, proximity, cost, speed and more before finally creating routes to travel from point A to B to C. He adds: “We also enable businesses to eliminate empty miles by ensuring round trips are productive. Research reveals that almost 40% of trucks often run empty, result- ing in emissions that could have been avoided.” Furthermore, Shipsy’s capacity opti- misation algorithms consider multiple factors while planning routes. It reflects constraints like delivery location, weight, volume, service type, vehicle make, storage type, and more when allocating delivery tasks. “We empower businesses to optimise capacity by 31% and reduce delivery trips,” Soham notes. Through dynamic clubbing of orders, Shipsy ensures that in case subsequent or- ders fall under the same radius on either side of the already planned delivery route, the system clubs them and assigns them to the same driver, significantly bringing down trips needed for pickup and delivery tasks. “Our customers are experiencing a 14% increase in deliveries per driver by using the dynamic order clubbing capabil- ity,” he explains. Making logistics sustainable Shipsy’s platform is accompanied by data- rich and intuitive sustainability dash- boards. These dashboards help delivery stakeholders monitor carbon emissions at a granular level throughout disparate legs of a logistics network. Soham says: “This improves logistics planning and delivers actionable insights on shrinking an organi- sation’s carbon footprint.” He adds: “In a nutshell, three critical factors will drive businesses to make logistics sustainable. One, government regulations and compliance. The second is customer expectations, and the third is the need to reduce operational costs. These factors will also trigger the need for enterprises, shippers, retailers, and logis- tics service providers to embrace advanced logistics management solutions.” According to inhouse reports, with Shipsy’s end-to-end smart logistics man- agement solution, businesses across the globe are reducing their carbon footprint by curbing distance traveled by 5% and decreasing trip volumes by 6%. He concludes: “Let’s play our part in restoring the balance that allows nature, wildlife and human lives to thrive in the same ecosystem.”
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38 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM OP-ED LNME T he supply chain and logistics sector is one that’s defined by change… and yet is also highly dependent on consistency and stability. While, on a micro-scale, roadblocks, diversions, and traffic delays are known challenges on any route, success often comes down to the experience of the driver, the quality of the information they have available to make route adjustments, and the timeliness of just how quickly that information reaches them. Data-driven insights have been the lifeblood of the supply chain sector for decades, with hard-won knowledge used to make strategic decisions. Today, data is the navigator for this journey. Once gathered, processed, and analysed, it can get you to where you need to be while mitigating risk. Access to right information Supply chain activities directly impact each part of the customer journey – from anticipating and influencing demand to responding and fulfilling that demand and retaining and growing the business. Without the right information at the right time, that disruption can rapidly pile up. Commerce and customer loyalty is, naturally, experience-led. Broken supply chain processes, comparatively, also break the positive customer experience that businesses need to thrive. Aeroplanes are reportedly off course at least 90% of the time due to weather conditions, turbulence, and other factors. They are kept on track through hundreds of tiny data-informed adjustments – one degree at a time. But what happens when those micro- adjustments are no longer sufficient? Just as these micro-adjustments are key en route, so too are they key across the supply chain journey. Quality data insights can help steer the whole customer engagement life-cycle and keep the journey on track - from automating production, warehouse, and logistic tracking, to delivering progress updates to the customer. Recognising and undertaking these micro-adjustments is vital in foreseeing and reacting to unanticipated disruption. DATA-DRIVEN INSIGHTS IMPROVE SUPPLY CHAIN DECISIONS Gib Basset, Director of Solutions Marketing, Supply Chain, Alteryx shares how data-driven insights can mitigate supply chain risks
LOGISTICS NEWS ME | JUNE 2022 | 39 DATA-DRIVEN INSIGHTS IMPROVE SUPPLY CHAIN DECISIONS When the entire global supply chain model comes under strain - as buying habits flip or suppliers become unable to source raw materials - using data and analytics to quickly solve issues and provide alternative solutions to bring the process back on track fast becomes a key business enabler. What’s over the horizon? What’s changing in supply chains is that this data no longer resides in the head of the most experienced driver or warehouse leader. Now, that data has gone digital, with a massive shift in how that data is collected, stored, processed, and used. Route optimisations and disruption mitigations can be decentralised and distributed across the entire business. The McLaren Racing Formula 1 team is a key example of an optimised supply chain underpinned by analytics - with the need to secure materials for more than 80,000 unique and custom-built components. The car would not be built within operational budget caps without that reliability and consistency across inventory and part performance tracking. They use data science and analytics to help track and oversee the journey of each car part, from design and simulation to the complicated manufacturing and maintenance supply chains, to help drive that resilience. McKinsey research notes that of the supply chain executives surveyed in May of 2020, 93% intended to make their supply chains more flexible, agile, and resilient. For the organisations able to harvest, capture, and turn that data into insights, the potential competitive edge is significant. In rising to meet these data challenges, supply chain specialists are transforming the ways in which they work and solve problems through data insights - providing more flexibility, agility, and resilience across their business. However, the true value of data increases when the responsibility for analysing data is democratised to the broader team. With the advent of accessible low-code no-code tools, the responsibility for analytics no longer needs to be the domain of data scientists exclusively. Instead, those closest to the challenge can be empowered to solve it – using their expertise and experience to deliver insights that would have otherwise been missed and then easily and effectively automating that very same process. The missing ingredient is training – investing in human potential and not just layering technological solutions on top of each other. Using data for intelligence The pandemic effectively saw businesses take five years of digital transformation progression and condense it into six months. While vital to the continuation of service at short notice, any project concentrated to such a timeline is – by definition – going to run into roadblocks of its own without the necessary training to support it. While automation is a powerful tool, it is still a tool. Just as a hammer does not pick itself up and swing itself, automation technology only becomes a valuable resource when combined with human intelligence. While an achievable and valuable goal, automation needs to come from a firm and robust foundation of practical data work. Instead, businesses need to start small by building intelligence and visibility across all teams and processes. By solving micro problems regularly and accurately, data teams can begin to expand their remit. According to a new Deloitte survey, 67% of business executives say they are “not [currently] comfortable” accessing or using data from advanced analytic systems. A comparable study from KPMG explains that this phenomenon is due to reliability. With inconsistent results from data, many executives are confirmed to “lack a high level of trust in their organisation’s data”, with 67% of CEOs stating they “prefer to make decisions based on their own intuition.” In fully optimising supply chains and mitigating the risk of disruption, CEOs and business leaders must be provided the right information at the right time to make the right decisions. Providing these leaders with regular, accurate information is a core route to a data-driven supply chain. Still, that information must be accurate every time to build that trust. A core premise within data science is reducing a challenge to its core components – to a point where reliability and accuracy are guaranteed - and building from there. While a micro solution can be scaled up to a macro one, a macro solution can rarely be condensed to work on a smaller scale. Materials shortages, delays from downstream facilities, and non-standard disruptions across any point of the chain are core examples of macro problems that can be addressed at the micro level. Domain specialists achieve actual value when they can utilise the data to look for incremental gains as analytics helps optimise the entire supply chain journey. Analysing the most common delay routes or factors between the raw materials supplier and the initial warehouse by tracking late or ‘missing’ deliveries and factoring in other important data points like drivers or delivery service used. By building a grouping of data analyses across the numerous moving parts of the supply chain, we can begin to build a better picture of what is happening, what is causing specific disruptions, and what the critical points of failure are. We can create an impactful risk profile and mitigate macro supply chain risk beyond ‘gut feel’ decision making. Gib Basset, Director of Solutions Marketing, Supply Chain, Alteryx “Data-driven insights have been the lifeblood of the supply chain sector for decades, with hard-won knowledge used to make strategic decisions.”
40 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM MASS TRANSIT LNME F rench manufacturer and operator of rail transport across the globe Alstom has been part of region’s trans- portation and mobility development since the 1950s. In the UAE, the sustainable mobility company de- livered the Dubai tramway, the first fully integrated tramway system in the Middle East and the world’s first 100% catenary-free line, which opened in 2014. Since then, it has been awarded the maintenance of the tram for a period of 13 years. Alstom delivered the turnkey automatic people mover (APM) system at Dubai Airports to connect Terminal 1 to Concourse D which opened for passenger services in February 2016 and designed to carry up to 200,000 passengers a day. Mama Sougoufara reveals: “We designed and supplied all electrical and mechanical (E&M) elements, 18 Innovia 300 cars (operating as five-car trains), the Cityflo 650 communi- cations-based train control (CBTC) technology for driverless operation and responsible of operations and maintenance (O&M).” More recently, the Alstom-led consortium was responsible for delivering the world’s fastest-built turnkey driverless metro project, Dubai Route 2020 Metro extension, which was inaugurated in June 2020. Elaborating on the Dubai Metro project, Sougoufara says: “We are proud of the work we did for Dubai Metro Route 2020’s 15km-long line. “As a leader of the consortium, we were responsible for the integration of the entire metro system including 50 metropolis trainsets, power supply, communication, signalling, automatic ticket control, track works, platform THE FUTURE OF TRANSPORT IS GREEN Leading societies to a low carbon future, Alstom’s Managing Director for the Middle East, North Africa, and Turkey Mama Sougoufara reveals how the company is frontrunning energy-efficient mobility
LOGISTICS NEWS ME | JUNE 2022 | 41 THE FUTURE OF TRANSPORT IS GREEN screen doors and a three-year warranty on the whole system, as well as the enhancement of the existing metro line by upgrad- ing power supply, signalling systems, communication, and track works.” MIDDLE EAST FOCUS Furthermore, in the region the company has several projects – completed and ongoing. In Saudi Arabia, Alstom, as part of FAST consortium, is supplying a fully integrated metro system for lines 4, 5 and 6, which includes 69 metropolis-based Riyadh Metro trains, as well as the delivery of 47 two-car driverless In- novia Metro 300 trains for line 3. In Makkah, Alstom was part of the Haramain high-speed rail line between Mecca and Medina, supplying Talgo with the Mi- trac TC 3300 propulsion equipment and Flexifloat high speed bogies for the powerheads of the 35 very high-speed trains as well as the VIP train for the 450km line. Towards Jeddah, Alstom is also the supplier of the turnkey Innovia APM 300 automated people mover system at the King Abdulaziz International Airport and responsible for operation and maintenance until June 2022. In Qatar, Alstom delivered the Lusail Tramway, the country’s first catenary-free tramway and a system that will provide ef- ficiency, availability, and easier maintenance, supporting the country’s Vision 2030 Sougoufara says: “We are proud to be contributing to the sus- tainable mobility landscape in the region - as we are convinced that it will bring about the change needed towards a clean and ultimately emission-free energy system.” A NEW SHIFT For decades the Gulf region was dependent on road transport – it’s only in the past 15 years that other modes of transport such as rail and marine have made inroads. “An efficient, tech driven rail network is rapidly becoming an important need. It can offer a much more efficient mode of transport for goods and people movement around the region,” Sougoufara suggests. “The Middle East has experienced rapid economic develop- ment and has the youngest population in the world and second highest urbanisation rate in the world. This development can only be sustained by resilient and modern transport infrastruc- ture,” he adds. “For this purpose, it is important that the Middle East has modern, interconnected, and reliable public transport systems to ensure access to economic centres for everyone, reduce pollution and congestion.” Sougoufara also believes that an efficient rail network will sup- port the region’s drive to meet sustainability goals – particularly as the UAE and the Egypt gear up to host COP conferences. He is of the opinion that at a regional level a robust and in- terconnected transport network will firmly position the Middle East as a business leader. “An example of this is the USD100bn Etihad Rail project between the GCC, which is set to open new trade corridors for business and travel opportunities.” “According to official sources, in the UAE alone, Etihad Rail can bring an excess of USD1 billion to the country’s gross do- mestic product (GDP) by 2030, with the project promising an economic return rate of 15.5%,” he adds. SUSTAINABILITY AT THE CENTRE Alstom wants to capitalise on these opportunities and bring sustainable rail systems to the region. He explains: “The effects of climate change are increasingly felt across the world, putting sustainability at the forefront of everything. At Alstom, we are aware of this reality and the significant potential for better trans- portation solutions must curb worldwide emissions. Mama Sougoufara, Alstom’s Managing Director for the Middle East, North Africa, and Turkey “WE ARE PROUD TO BE CONTRIBUTING TO THE SUSTAINABLE MOBILITY LANDSCAPE IN THE REGION - AS WE ARE CONVINCED THAT IT WILL BRING ABOUT THE CHANGE NEEDED TOWARDS A CLEAN AND ULTIMATELY EMISSION-FREE ENERGY SYSTEM.” >>>
42 | LOGISTICS NEWS ME | JUNE 2022 WWW.CBNME.COM “Rail transportation is currently the most energy-efficient transport mode and therefore offering residents an efficient rail network will support the reduction per capita emissions. Approximately 85% of greenhouse gas emissions from the transport sector are related to the surface systems. Therefore, a single person switch- ing from a car to public transport can save up to 20 pounds of their CO2 emissions per day. At Alstom, we have a full range of green traction options, so we can help our customers go even further to reduce their emissions and address the rapid ur- banisation that is taking place across the region.” Alstom is also introducing innovative digital solutions to increase capacity and improve efficiency throughout its opera- tions. An example is the improved naviga- tion software which not only reduces the carbon footprint but also addresses some of the biggest transportation issues such as traffic congestion. Alstom has announced clear environ- mental targets for 2025 which include: achieving science-based CO2 emission reduction targets under the COP21 Paris Agreement; 25% reduction of CO2 emis- sions; 100% of newly developed solutions are eco-designed; and 100% of electricity supplied by renewable energies. He says: “For us this means Alstom is looking to reduce its carbon emissions across the entire value chain. For our customers it means we are ready to work with them to address the challenges we collectively face because of rapid urbanisa- tion and global warming. “And we do it by addressing their indi- vidual needs, there isn’t a one size fits all solution and because we have the largest portfolio of solutions, we are able to pro- vide them exactly what they need to meet their sustainability targets whatever they may be.” And Alstom is not relying on a single green energy source. “There are many options to power mobility and transport systems. As a leader in sustainable mobil- ity, Alstom has developed a wide range of green and innovative technologies to reduce emissions and pollution in catena- ry-free operation. Customers can choose from a wide portfolio of proven solutions based on Alstom’s unrivalled expertise in hydrogen, battery, or dual mode electric- hydrogen,” Sougoufara says. He adds: “On the hydrogen front, we are proud to have the Coradia iLint, the world’s first hydrogen train in passenger service in Germany since 2018. This repre- sents a true alternative to diesel power. “Additionally, Alstom is a pioneer in battery trains and offers the trains for various platforms. We recently supplied the world’s first battery train for passenger operation in Germany. “Depending on the need, infrastructure, and environment we will be able to advice customers on the best solution. We need to look at the entire eco-system and ensure when a green solution is introduced, the full system, including rolling stock, is op- timised.” MASS TRANSIT LNME
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