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CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE E N E R G Y The Driving Partnership To COP28 JUNE 2023 We aim to recognise the key industry players who are contributing to the last- mile ecosystem, including the likes of Jeebly, Emirates Post Group, Urbi, Ajex Logistics, and more HEAVYWEIGHTS LAST-MILE ECOSYSTEM C A R G O The Kingdom’s Efficient Air Freighter A I R P O R T The Capital Airport
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LOGISTICS NEWS ME | JUNE 2023 | 3 IN THIS ISSUE HEAVYWEIGHTS LAST- MILE ECOSYSTEM 14 ROUND-UP SEAMLESS MIDDLE EAST 2023 Logistics News ME spoke to Swisslog, Yango Deli Tech and Savoye Middle East on their time at Seamless this year 20 FORESIGHT HOW QATAR IS POSITIONED for future success with logistics in the spotlight Adrian Peiris, Business Manager for Contract Logistics at GAC Qatar, examines how the nation’s expanding logistics industry can leave its mark on the global scene 22 PORTS FROM SIMULATION TO REAL-WORLD SUCCESS How Digital Twins Revolutionise Port Operations Dr Mohamed Rahmah, Vice-President, Zodiac, DP World, sheds light on how they are one of the vital smart solutions technology players in the ports and terminals industry 24 AIRPORTS THE CAPITAL AIRPORT Robert Sutton, Senior Vice President, Freezone, Cargo and Logistics at Abu Dhabi Airport shares his insights on the air cargo industry, Abu Dhabi Airport Free Zone, and more 46 CARGO THE KINGDOM’S EFFICIENT AIR FREIGHTER Vibha Mehta discusses the extensive spectrum of cargo services provided by Saudia Cargo with Marwan Niazi, Vice President of Commercial 50 TRANSPORTATION A TRUCKING PHENOMENON We chatted with the Ford Trucks team to learn more about the business’s expanding efforts in the trucking sector 52 ENERGY THE DRIVING PARTNERSHIP TO COP28 U.S.-UAE Partnership for Accelerating Clean Energy (PACE) announces support for a landmark project to deploy clean nuclear energy to decarbonize the Romanian power sector WE AIM TO RECOGNISE THE KEY INDUSTRY PLAYERS WHO ARE CONTRIBUTING TO THE LAST- MILE ECOSYSTEM, INCLUDING THE LIKES OF JEEBLY, EMIRATES POST GROUP, URBI, AJEX LOGISTICS, AND MORE 22 50 26
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6 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM SUBSCRIBE subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries, contact jo@bncpublishing.net T +971 50 440 2706 All rights reserved © 2023. 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. Printed by United Printing and Publishing | upp.ae Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. cbnme.com ACCESS FRESH CONTENT DAILY ON OUR WEBSITE! Logistics News ME @Logisticsnewsme Logistics News ME logistcsnewsme In addition to our print edition, we’re bringing you all sorts of industry news on our web mediums. We’re looking forward to interacting with our readers on all of our social media and web platforms. See you on the web! CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D'Costa jo@bncpublishing.net Editor-in-Chief Vibha Mehta vibha@bncpublishing.net Managing Editor Kasun Illankoon kasun@bncpublishing.net Design Christian Harb Marketing Executive Aaron Joshua Sinanbam aj@bncpublishing.net Photographer Alexander Bungas CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
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8 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM EDITOR’S NOTE LNME K nowing new individuals daily is one of my job's most exciting aspects. When we meet people, we editors tend to have a better knowledge of navigating different mindsets. This typically enables us to view them from an altered angle and, not only that, but also to determine how to respond in a particular circumstance. Be it a professional space or personal. Situations frequently enter our lives; some may react relentlessly, some may respond calmly, and some may simply be apathetic. I have done a lot of self- introspection over the past month. Facing moments in which I was a little taken aback by my responses. I don't understand how I should act, even if some days I feel like being impolite, ignoring it, or putting it in the past and allowing them to open up. So, to maintain my mental sanity, I have decided to just GO WITH THE FLOW when it comes to events, people's emotions, and behaviours, helping myself to reinstate my reactions. I know this may have some dramatic results, but I want to focus on developing my personality, which entails managing my emotions, being content, and not letting other people's actions influence me. Because I care, my feelings could be hurt, but I cannot control their actions. So, as I tell my best friends and family to GO WITH THE FLOW in odd situations, it also means letting other people have their moment; they might realise their conduct eventually – entailing me to lead my path. Until you process my monthly piece of monologue, happy reading! Vibha Mehta Editor-in-Chief vibha@bncpublishing.net Go With The Flow Vibha Mehta vibhamehta01 @vibhamehta01
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10 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM REGIONAL NEWS LNME D ubai Maritime City (DMC) has received the ISO 9001:2015 certificate of approval for its Reservation Department from Lloyd’s Register Quality Assurance (LRQA). The certification acknowledges DMC’s commitment to quality management systems of wet and dry berth reservation and booking services for vessels of DMC. This achievement reinforces DMC’s focus on maintaining high quality that meets global standards and underscores its position as a leader in the maritime industry. DMC’s berthing facilities cater to varied types of vessels. Spread over 1.4 million running meters, the wet berthing stretch primarily provides maritime services, including ship repair, maintenance and manufacturing. The industrial district also has 42 dry berths to serve the needs of its partners. INTERNATIONAL STANDARDS GUAR- ANTEED Commenting on DMC’s achievement of receiving the ISO 9001:2015 certifica- tion, Mohammed Al Muallem, Executive Vice President of DP World, said, “Re- ceiving the ISO 9001:2015 certification for our Reservation Department is a testament to the hard work and dedica- tion of the DMC team to ensure that we maintain the highest quality standards in our services for our customers. We are committed to providing efficient and effective services to the more than 280 registered maritime businesses in our purpose-built maritime cluster. As a premier maritime destination in the UAE and the GCC, Dubai Maritime City is at the forefront of industry best practices, implementing the most up-to-date ap- proaches. Our suitable environment for investments has guaranteed internation- al standards for all partners.” Al Muallem added, “In 2022, DMC ex- perienced a surge in wet and dry berth reservations, with 581 vessels arriving, comprising 373 dockings and 332 un- dockings. The ISO accreditation will bolster our efforts to expand national and regional maritime industries. This recognition further solidifies DMC’s posi- tion as a prime destination for global in- vestments and a significant driving force behind the UAE’s flourishing maritime economy.” Of the 581 vessels that arrived at DMC last year, 538 were steel ships, 22 were wooden ships, and 21 were leisure boats and yachts. The certification indicates DMC’s ability to consistently meet cus- tomer needs and adhere to laws and regulations. This highlights DMC’s dedi- cation to maintaining a customer-centric approach and continually enhancing pro- cesses to deliver efficient and effective services to maritime businesses. Ahmed Mohammed Alhammadi, the Chief Operating Officer at DMC, said, “DMC has always been dedicated to providing its clients with exceptional services and ensuring their satisfaction. Focusing on putting our clients first, we have worked tirelessly to build a strong relationship of trust with them. The re- cent achievement of ISO certification is a testament to our commitment to quality management systems. This accomplish- ment reinforces our position as a mari- time industry leader, demonstrating our ongoing efforts to advance the UAE’s blue economy. With this achievement, DMC’s clients can rest assured that they are receiving services of the highest quality and that we are dedicated to continuously improving our processes to meet their evolving needs.” DMC’s accomplishment reflects the booming maritime industry in the UAE, where the country has been investing heavily in its infrastructure and services. It is an indicator of the high standards set by the UAE maritime industry. It highlights its continuous growth and development, which has galvanised its position as a trustworthy partner for trade activities. DUBAI MARITIME CITY OBTAINS ISO ACCREDITATION TO ENHANCE ITS COMPETENCIES IN ADVANCING THE UAE’S MARITIME INDUSTRY
LOGISTICS NEWS ME | JUNE 2023 | 11 REGIONAL NEWS L yve Global, a B2B SaaS organisation founded in the UAE, has introduced its new one-stop-shop business model that offers a suite of end-to- end solutions and services designed to digitalise and scale businesses across different industries. Lyve’s unique ecosystem consists of various advanced digital products and solutions that operate across the entire value chain, cover- ing the spectrum from order generation to payment and delivery. Businesses can leverage their easy-to- integrate cloud products and solutions to diversify their revenue stream, simplify pro- cesses and payments, expand their markets, manage manpower, streamline and enhance operations, and cover their logistics require- ments. By integrating multiple services through one solution provider, Lyve Global’s clients can effortlessly scale their business require- ments as it evolves and build lasting growth. This allows them to quickly adapt to market demands and incorporate new functionali- ties and expand into new areas without the complexities of sourcing and integrating multiple solutions. Hassan Hallas, CEO of Lyve Global, ex- plains: “Lyve is making significant strides in expanding its presence across the region. We are revolutionising how businesses oper- ate by developing and acquiring the cutting- edge technologies needed to build such a comprehensive ecosystem. Our innovative platforms have already driven efficiency, cost savings and revenue for many of the region’s leading brands - a testament to our proven robustness and reliability at scale.” Lyve is operational in over 22 countries worldwide – focusing on the region, with main offices in KSA, Oman and Egypt – serving over 500 businesses and hundreds of thousands of customers. Through its commitment to innovation and customer- centricity, Lyve Global continues to lead the way in delivering transformative solutions that propel businesses in the region towards success in today’s dynamic market. LYVE GLOBAL LAUNCHES ITS ONE-STOP SHOP ECOSYSTEM OF TECH SOLUTIONS AND SERVICES
12 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM REGIONAL NEWS LNME A dmiral Mobility, a leading company that provides accessible eMobility and energy charging solutions, has announced a significant partnership with the vehicle hire company, Avis, to bring commercial electric trucks to the leasing market in the UAE. The strategic partnership represents a commitment to deliver the GCC’s largest rollout of commercial electric trucks, which will be leased to fleets across the UAE. They are set to be let out to companies who want to move towards cleaner, more sus- tainable fleets as part of their pledge to operate more envi- ronmentally friendly ways. Comprising commercial electric trucks split between 6T and 8T, the announcement was made during Mobility Live in Abu Dhabi, which brought together world lead- ers in the green transport and EV space. With a range of up to 220km with a full load, the zero-emissions electric vehi- cle takes less than 90 minutes to fully charge via its efficient, safe, liquid-cooled CATL LFP battery. Advanced safety features include lane-keeping assist adapt cruise control, remote locking systems, high beam LED lights equipped with auto adaption to the sur- rounding traffic, and ease of driving comfort. The news builds on the commitment of Admiral Mobility back in December last year, when it announced a strategic partnership with Geely Farizon New Energy Commercial Vehicle Group to bring 5,000 commercial elec- tric vehicles to the Middle East region. Building on the requirement to create a green transporta- tion industry’, Admiral Mo- bility has extensively tested the vehicles over the last six months to ensure they are fit for the GCC market when it comes to operationally and commercially viable. General Manager from Ad- miral Mobility, Graham Brem- er, commented: “In our quest to ‘decarbonise’ the transport industry, we are proud of our latest announcement, rep- resenting a significant step forward for commercial fleets and the UAE market. This commitment with AVIS UAE means the largest rollout of EV trucks to be leased in the UAE. It is an exciting time to partner with a forward- thinking company the size of Avis, which has a significant footprint in the commercial leasing market. “We are looking forward to our vehicles hitting the road, as per our commitment to support the growing demand for cleaner transportation, be it for highways, the city or backroads, to ensure a clean- er environment for us all.” Dominic Hagerty, General Manager from AVIS UAE, commented: “We are de- lighted to enter this strategic partnership with Admiral Mobility to provide a more sustainable solution for our fleet customers in the UAE. Through this agreement, we can offer businesses an attractive leasing model arrangement to provide complete flexibility for fleets who want to move towards a more sustainable mode of transport.” “The Electric commercial trucks in this agreement represent a step change in commercial fleets by being the first of its kind available in its category, anywhere in the GCC. We are truly excited to be a launch partner for this vehicle.” With the UAE’s focus on achieving its Sustainable De- velopment Goals (SDGs) to provide access to clean ener- gy and sustainable economic growth, the latest commit- ment from Admiral Mobility and Avis UAE will further help build the ‘green transporta- tion industry’, especially in the lead up to COP28. The vehicles are expected to be available from August this year. ADMIRAL MOBILITY ANNOUNCES MAJOR PARTNERSHIP WITH AVIS TO BRING ELECTRIC COMMERCIAL TRUCKS TO THE UAE’S LEASING MARKET
LOGISTICS NEWS ME | JUNE 2023 | 13 REGIONAL NEWS H amad International Airport, the gateway to the State of Qatar and the Middle East, offers a remarkable airport journey for travellers with optimized operations, innovative experiences, luxury retail and F&B offering and the highest safety standards. As part of its commitment to excel- lence, Hamad International Airport has selected DataDirect Networks (DDN) to provide advanced data storage solu- tions to enhance its security measures. Hamad International Airport com- menced Phase B of its expansion plan in January, increasing its capacity to over 70 million passengers annually. With this enormous volume of travellers, closed- circuit television (CCTV) is an essential part of the passenger safety infrastruc- ture for the airport. DDN’s solutions were chosen because of their unique performance, scalability and cost- effectiveness. DDN’s high-performance EXAScaler 7990 systems with IntelliFlash 6200 systems were implemented to meet both primary and secondary re- cordings with 100+ Petabytes of storage capacity. Suhail Kadri, Senior Vice President of Technology & Innovation at Hamad In- ternational Airport, said, “As the airport continues to proliferate, the safety and security of our passengers travelling to, from and through Hamad International Airport remains a top priority. Data is an integral enabler for our digital transfor- mation agenda; hence partnering with DDN, which has a strong understanding of modern data storage demands, sup- ports our commitment towards offering an innovative, safe and smart airport experience.” At the start of 2018, DDN made a multi-year, multi-million-dollar invest- ment in Qatar by establishing a local sales and support team, a state-of- the-art performance and compatibility test lab, and partnerships with the best regional technology organizations. Hamad International Airport’s decision to select DDN confirms the prudence of this commitment. It is a prime example of the unprecedented surge in demand for content-optimized storage technol- ogy and DDN’s leadership in this data- intensive market. “We are very excited to support Ham- ad International Airport and provide so- lutions to its complex scale-out storage and IT requirements,” said Dipl. Eng. Laurent Thiers, VP, DDN Storage. “With over 100 petabytes of our File and Block Storage systems already delivered, DDN answers the challenge by providing storage systems that deliver unrivalled throughput, reliability, scalable capacity and consistency.” “DDN is very pleased to be a technol- ogy partner for Hamad International Airport, as it is at the forefront of high- resolution camera deployments.” con- tinued Laurent. “DDN’s solutions can confidently, diligently, and easily deploy truly scalable storage systems and effi- ciently and safely implement online vid- eo archives designed to hold months- to-years of security cameras with significantly fewer systems, less network infrastructure, space and power.” HAMAD INTERNATIONAL AIRPORT SELECTS DATADIRECT NETWORKS STORAGE SYSTEMS TO MODERNIZE SECURITY PLANS
14 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM SWISSLOG MIDDLE EAST David Dronfield, General Manager, Swiss- log Middle East The Seamless Middle East 2023 is an excellent platform for us to drive the message that automation is the prime force taking retailers and e-commerce marketplaces to new heights of success. According to industry estimates, the au- tomation market in the MENA region is projected to reach $1.6 billion by 2025. Swisslog delivers data-driven and robotic solutions for logistics automa- tion alongside reliable, modular service concepts. Collaborating with forward- thinking companies, we are committed to setting new standards in warehouse automation to provide future-proof products and solutions. At the event, we will showcase Au- toStore with a spectacular live demo. AutoStore is a highly efficient robotic storage and order processing solu- tion that integrates easily into existing buildings, designed to help retailers and e-commerce companies meet the growing demand for fast, accurate, and reliable order fulfilment while con- tinuing to compress order cycles and delivery times. One of our key USPs is the ease with which AutoStore and our other solutions can be implemented without impacting existing infrastruc- ture, ensuring minimal downtime or disruption. Our tailored automation solutions improve order fulfilment, and accuracy, while significantly reducing operating costs. How is tech transformation changing e-Commerce in the region? The convenience of online shopping in the MENA region has led to a surge in demand for quick and reliable deliver- ies, putting pressure on warehouses to streamline their operations. Forward- thinking companies are turning to warehouse automation technology to optimise their processes and improve efficiency to keep up. Recent reports suggest that by 2025, autonomous robots will process up to 50% of all e-commerce orders, while the average order fulfilment time is projected to de- crease from 4 hours to just 30 minutes by 2028. In addition, the UAE is taking signifi- cant strides towards becoming a global leader in the robotics and automation industry, aiming to increase the sector’s contribution to the gross domestic product (GDP) to 9%. The benefits of automation are clear, and the invest- ment and effort required to implement these systems are worth it for their increased efficiency and customer satisfaction. Our mission is to change the per- ception of automation in the Middle East and be at the forefront of smart transformation in the e-Commerce industry. Our proven track record in the field of automation technology ensures that businesses can trust our expertise to provide tailored solutions that set them apart from the rest. SAVOYE MIDDLE EAST Alain Kaddoum, Managing Director at Savoye Middle East. Savoye Middle East participated in the Seamless 2023 exhibition for the second consecutive year, showcasing their state-of-the-art robotic and soft- ware solutions designed specifically for e-commerce and retail fulfilment. Due to the market’s favourable re- sponse to the advanced Autonomous Case-Handling Robot (ACR) technol- ogy introduced last year in the region, Savoye has established itself as a pioneer in providing superior logistics solutions ranging from mechanised to fully automated systems. This year’s participation aimed to strengthen the brand’s market position, build relationships with current clients, and highlight its most recent innovations. Savoye’s software portfolio, which complements its hardware offerings, was another criti- cal area of focus. The primary focus was on their state-of-the-art software called ODATiO, which combines a warehouse management system (WMS), transportation management system (TMS), and order manage- ment system (OMS). Additionally, Alain Kaddoum, Managing Director of Savoye’s Mid- dle East region, took part in a panel discussion on the first day of the conference centred on the future of automation and autonomous robots. By addressing issues like the advan- tages and uncertainties of automa- tion, new trends in automation, and the increasing use of robotics in the e-commerce sector, Savoye actively led conversations about automation in the industry. ROUND-UP LNME SEAMLESS MIDDLE EAST 2023 Logistics News ME spoke to Swisslog Middle East, Yango Deli Tech and Savoye Middle East on their time at Seamless this year, Seamless Middle East 2023 was held in Dubai at World Trade Centre on May 23-24, 2023 David Dronfield, General Manager, Swisslog Middle East
LOGISTICS NEWS ME | JUNE 2023 | 15 How is automation transforming the industry? Alain shares, “Today, customers actively seek cutting-edge technologi- cal solutions for warehouse opera- tions, including software-driven order management, warehouse management, and storage automation. This transfor- mation is driving the industry towards greater efficiency and advanced opera- tional capabilities. Similarly, Savoye minimises plastic usage and shipping costs by optimising packaging and reducing carton size. Our intelligent software solutions precisely determine the required packaging size, reduc- ing waste and the carbon footprint of additional transportation. These actions can reduce emissions associ- ated with shipping up to 40 per cent, which would significantly positively affect both the environment and overall logistics operations.” During its participation, Savoye revealed promising plans. They are ex- panding their presence in the Kingdom of Saudi Arabia (KSA) by establish- ing a dedicated team, building upon the groundwork laid by their current management. These developments reflect Savoye’s commitment to driving growth and building strategic partner- ships to serve the middle east market better. YANGO DELI TECH Max Avtukhov, CEO and Co-Founder of Yango Deli Tech We are excited to share our expertise with the participants of Seamless Mid- dle East this year. Our solutions have enabled companies to deliver goods on time and in full while raising profit- ability and overall efficiency for our clients. We will use this opportunity to share our insights and discuss the latest technologies and innovations that are transforming the retail landscape in the region. At the event, we will present a demo of our software, showcasing a miniature version of a warehouse with a comprehensive order flow that demonstrates our user-friendly client app, last-mile solution as a courier app with batching and surge manage- ment, as well as an easy-to-use picker app to scan products. Additionally, we will present our warehouse manage- ment system (WMS), which enables real-time order tracking and provides a clear and accurate understanding of order status and inventory manage- ment. We are determined to make an impact in the region and have recently partnered with Nana, the leading on- line grocery and commodities delivery platform in Saudi Arabia. According to our research, the UAE’s e-grocery mar- ket, compared to mature markets, has an estimated $2.8 billion in untapped potential, while in KSA, this number is evaluated as $8.2 billion. How is digital transformation changing the future of commerce in the region? Digital transformation is significantly changing the retail and e-grocery envi- ronment in the Middle East. The adop- tion of digital channels and increased spending through these channels is on the rise, indicating a shift in consumer behaviour. According to PwC’s recent Global Consumer Insights Pulse Survey, 43% of consumers plan to increase online shopping in the next six months. In 2022, the MENA online grocery market was valued at approxi- mately $4.5 billion and is forecasted to expand at a CAGR of ~24%, reaching $25 billion by 2030. Customers increasingly emphasise consistent product availability and an improved customer experience and are willing to switch to competitors if they don’t receive it. This creates a valuable opportunity for retailers to transition from traditional brick-and-mortar op- erations to online businesses powered by technology and enhance existing online processes. Our cutting-edge tech platform incor- porates robust tools for data analytics and customer engagement, enabling retailers to deliver personalised experi- ences while aiding businesses in achiev- ing almost 99.9% stock accuracy, lowering write-offs and unnecessary mileage, enhancing customer experi- ence, and improving unit economics. According to our estimates, adopting this solution can enable enterprises to reduce error rates by 15% and cancel- lation rates by 35%, increasing revenue for the company. With the rise of digital consumers in the Middle East, companies must formulate winning strategies to capture the total value of digital offerings. SEAMLESS MIDDLE EAST 2023 Alain Kaddoum. Managing Director at SAVOYE Middle East. Max Avtukhov, CEO and Co-Founder of Yango Deli Tech
16 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM KSA LNME MINISTRY OF TRANSPORT AND LOGISTICS SERVICES KSA LOGISTICS SECTOR MARKET SIZE TO GROW TO 57.4 BILLION SAR BY 2030
LOGISTICS NEWS ME | JUNE 2023 | 17 I n line with the Vision 2030 objec- tive of transforming the Kingdom into a leading industrial power- house and global logistics hub, the Ministry of Transport & Logistics Services (MOTLS) has laid out an am- bitious strategy that aims to develop the Kingdom’s transport & logistics sector and address the increasing global demand for logistics services. Ever since, the sector has witnessed unprecedented growth and progress, making its mark on the global logistics industry, a direct outcome of the con- tinuous efforts by MOTLS. In the re- cently released Logistics Performance Index 2023 (LPI) recently published by the World Bank, Saudi Arabia made significant progress, moving up 17 ranks to achieve 38th position, from 55th in 2018. To bolster the Kingdom’s efforts in this direction, HRH Crown Prince Mohammed bin Salman has launched comprehensive programs focused on different aspects of the sector. The Na- tional Transport and Logistics Strategy (NTLS) was launched in 2021 with the aim to strengthen human and technical capabilities in the transport and logis- tics sector in the Kingdom. Earlier in 2019, the National Industrial Develop- ment and Logistics Program (NIDLP) was launched to build the country’s industrial and logistical capabilities and position it as a global leader in the industry. The programs aspire to position the Kingdom as a global logistics hub. With a unique geographical location, connecting three continents: Europe, Asia, and Africa, the country is in an advantageous position to become the gateway facilitating easy trade and movement of goods across continents. Located on the Asia-Europe trade route, the country already hosts 12% of the global container trade passes annually. Saudi Arabia has been on the fast track to shift its economy away from oil and build a more diverse and holis- tic economic ecosystem. Currently, the logistics sector contributes 6% of the KSA GDP and is projected to contrib- ute 10% by 2030, that is, around SAR 20.1 billion. Boosting its cargo capacity and bolstering supply chains further, the Kingdom announced the launch of 59 logistics zones by 2030, 21 of which are already operational. The country also inaugurated its first Special Inte- grated Logistics Zone at King Khalid International Airport, Riyadh. The measures are part of the infrastructure development strategy and aim to fuel business growth, attract investment, and increase the sector’s non-oil rev- enue to about 45 billion riyals a year by 2030. Vision 2030 is the roadmap to build- ing a globalized country with sustain- able progress. Transport & logistics are the backbone of any economy, and our aim is to develop the sector, build connectivity and enhance our global competitiveness as a country. We are putting all our weight into develop- ing internal & external supply chains and streamlining processes to the best international standards to provide world-class infrastructure and services. Our focus is on opening Saudi to the world with a multitude of opportuni- ties. In October 2022, HRH The Crown Prince also launched the Global Supply Chain Resilience Initiative (GSCRI) to attract local and interna- tional investments in the supply chain sector. Aiming to raise 40 billion riyals ($10.64 billion) in its first two years, the initiative has set 10 billion riyals in financial and non-financial incentives for investors. Pushing toward a fast-paced trans- formation, the Kingdom has ear- marked milestones for the rail, road, maritime, and aviation sectors. The largest and most populous GCC na- tion, the Kingdom also aims to create over two hundred thousand jobs in the sector by 2030. A-Z OF E-COMMERCE | NICOLAS BRUYLANTS Vision 2030 is the roadmap to building a globalized country with sustainable progress.
18 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM INSIGHT LNME R everse logistics has become a key feature of modern supply chains that supports the new business model and the trend toward the circu- lar economy. The tradi- tional linear business model continues to have immense negative consequences on the planet and is no longer sustain- able or acceptable. Although reverse logistics in the retail supply chain is seen as a competitive differentiator that is driven mainly by unprecedented customer expectations and customer centricity approach, the development of reverse logistics strategies needs to address the transition towards the circular supply chain model through which waste can be eliminated, and materials/ products can be circulated. The article explains in more detail how this transition can happen and the as- sociated challenges and enablers. The reverse logistics process typi- cally involves various activities such as handling returns, managing recalls, conducting repairs, repackaging items for restocking or resale, recycling ma- terials, and facilitating proper disposal. In considering the retail supply chain, a typical instance of reverse logistics occurs when a consumer returns a pur- chased item for a refund. The returned Dr Shereen Nassar, Global Director of Logistics Studies and Director of MSc Logistics and Supply Chain Management Suite at Heriot-Watt University Dubai, shines her thoughts on the evolving subject REVERSE LOGISTICS AND CIRCULAR ECONOMY A NEW APPROACH TO RETAIL SUSTAINABILITY
LOGISTICS NEWS ME | JUNE 2023 | 19 REVERSE LOGISTICS AND CIRCULAR ECONOMY | A NEW APPROACH TO RETAIL SUSTAINABILITY products can either be resold or permanently disposed of. In recent times, reverse logistics has emerged as an integral part of a well-opti- mised supply chain, contrib- uting to its smooth opera- tion and success. It is gaining momentum as consumer demand continues to rise ex- ponentially, and product life cycles become increasingly shorter under the traditional linear economy, resulting in resource scarcity and a significant increase in waste. As per the findings of the 2023 Global Reverse Logistics Market Report, the global market for reverse logistics is projected to reach a valuation of USD 993.28 Billion this year. The sector is also expected to witness a steady compound an- nual growth rate (CAGR) of 10.34 per cent from 2023 to 2032. The logistics sector is one of the most critical indus- tries globally; it keeps the world moving. Practices such as reverse logistics offer significant advantages to retailers by enabling them to extract value from returned products. Retailers can achieve this by refurbishing, repairing, or repurposing returned products, reducing waste and extending product lifecycles. This approach not only improves a retailer’s environmental performance but also has the potential to positively impact their profit- ability. The reverse logistics process, which involves managing end-of-use or end- of-life products, has become an essential component of manufacturers’ circular economy practices. As the shift towards a circular economy continues, there is a growing emphasis on redirecting products, components, and materials towards recovery pathways like recycling and reuse. Despite this, a considerable number of resources are still being landfilled instead of being recovered. Due to the increasing pressure on com- panies to tackle sustainabil- ity challenges like resource depletion, climate change, waste, and toxicity caused by the traditional linear economy, businesses now recognise the significance of reverse logistics. Businesses encounter vari- ous product return scenarios across their supply chain, including manufacturing, commercial, product recalls, warranty, service, end-of- use, and end-of-life returns. For instance, Apple serves as an exemplary model of re- verse logistics practices. The company actively encourages customers to trade their out- dated devices for discounts on new products. Once these returned items are received, Apple directs them to their factories, where they undergo a meticu- lous breakdown process, allowing for the recycling of their components. These recycled parts are then incorporated into the production of new devices. Reverse logistics involves managing complex and often unpredictable flows of goods and materials. This can be incredibly challenging for companies that operate in global sup- ply chains where returned products may need to be transported over long distances, through multiple facilities, and across various jurisdictions. Moreover, the significant investment required in infrastructure and technol- ogy and the need to navigate a complex regulatory and legal landscape are addi- tional factors which make it challenging for businesses to implement a robust reverse logistics process. Despite these challenges, companies are recognising the benefits of reverse logistics and are investing in the systems and techniques needed to man- age this critical aspect of the supply chain. A new industrial paradigm has given rise to new logisti- cal demands. The integration of technology, automation, and digitalisation is enhanc- ing the efficiency of reverse logistics. For instance, track- ing technology has revolu- tionised the field of logistics. This can be seen through the deployment of GPS track- ing devices on trucks. This enables dispatchers to locate drivers and monitor their real-time progress as they transport goods from one location to another. Har- nessing the power of data analytics, companies can now optimise their reverse logistics operations by iden- tifying areas for enhance- ment. This enables them to recover more products while reducing the expenses of re- turning goods to the market or repurposing them through reconditioning or remanu- facturing processes. As the expenses continue to rise, retailers must balance ensuring customer satisfac- tion through flexible return policies and effectively han- dling the complex logistics and costs associated with an increasing reverse logistics infrastructure. Retailers must also be prepared to take the mounting expectations to embrace end-of-life returns to uphold sustainability prin- ciples and advance the con- cept of a circular economy. This necessitates careful navigation and strategic decision-making to balance customer-centricity and operational efficiency, all while aligning with broader environmental goals. Professionals in reverse logistics must be able to gather, analyse, and apply data for informed decision- making and process optimi- sation. They should know the expenses, advantages, and risks of various reverse logistics alternatives, includ- ing repair, refurbishment, recycling, or disposal. Since education and analytical skills are crucial in assisting reverse logistics profession- als in identifying issues, opportunities, and trends and implementing solutions that generate value for their customers and stakeholders, higher education institu- tions can play a vital role by providing relevant educa- tion and training to aspiring professionals.
20 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM I n late 2022, the eyes of the world were on Qatar as the first country in the Middle East to host the FIFA World Cup. The spectacle of the world’s biggest sporting event was the culmination of a 12-year-long logistical action plan that resulted in the construction of new stadiums, hotels, airports and even cities at a reported cost of more than US$200 billion. The country strengthened its logistical network to provide a wide range of event logistics, venue support, customs brokerage, freight forwarding and warehousing services for tournament venues, teams, broadcasters and the more than three million fans attending the four- week sports celebration. The groundwork for developing and efficiently running the behind-the-scenes facilities that supported the event laid a firm foundation for Qatar’s standing as a logistical and transport hub powerhouse, both regionally and globally. And it highlighted the importance of streamlined, structured and supported supply chains, so often unnoticed and underappreciated when everything goes to plan. But Qatar’s growing infrastructure and logistics activity is not only down to the World Cup. It also embodies the country’s increasing operational efficiencies and support for the global e-commerce market, which has proliferated in recent years due to the Covid-19 pandemic. And now, it is looking to take advantage of its new position as one of the Middle East’s leading providers of state-of-the-art logistical services. But to do so, it must embrace forward-thinking, technology and flexibility. Forward-Thinking Qatar’s National Vision 2030 seeks to expand its current capacities and diversify its economy through investments in world-class infrastructure such as new airports, ports and railways to become a logistical powerhouse for cargo transiting to and from Asia and Europe, primarily serving the fast-moving and perishable consumer goods markets. According to research by Invest Qatar, the country’s logistics market is set to grow at 6.2% by 2026: the fastest in the Gulf Cooperation Council. Further, according to a recent Qatar National Bank Financial Services report, the sector could make up more than 10% of the country’s total economic output as it looks to diversify away from dependence on oil and gas. To fulfil Qatar’s logistics ambitions, third-party logistics (3PL) providers are investing heavily in state-of-the-art FORESIGHT LNME Adrian Peiris, Business Manager for Contract Logistics at GAC Qatar, examines how the nation’s expanding logistics industry can leave its mark on the global scene HOW QATAR IS POSITIONED FOR FUTURE SUCCESS WITH LOGISTICS IN THE SPOTLIGHT
LOGISTICS NEWS ME | JUNE 2023 | 21 facilities and operations to ensure fast turnaround and remain flexible in adapting to the needs of customers from diverse sectors. During the World Cup, GAC Qatar provided industry- leading warehousing and logistical services to meet operational requirements. Our challenge was ensuring that we had an optimum number of resources and could effectively use them without dealing with excess amounts at the end of the event. We devised various plans, such as leasing facilities to cater to peak demands, getting additional vendors to support us with different vehicles and pooling resources between multiple departments and operations. This need to keep cargo and infrastructure at optimal and sustainable levels has always been GAC’s approach to warehousing and logistics operations – even when a significant event is not occurring. We have achieved operational efficiencies through careful planning and the use of data. These include on-the-go mobile scanners to scan cargo, streamline operations and reduce human error, as well as a proprietary Warehouse Management System that keeps track of stock levels, expiration dates and product data in real time and issues alert customers during each transaction stage to drive customers’ planning and decision-making. Such efforts have had a much more significant impact in elevating day-to-day operations, with a smaller logistical footprint reducing overheads and carbon emissions. Surging Demand To meet surging demand from the global fast-moving consumer goods (FMCG) and food & beverage sectors, GAC Qatar recently opened a new logistics facility and office in Ras Bufontas Free Zone featuring 40,000 pallet positions, temperature and humidity-controlled chambers and additional mezzanine storage. It has been designed to meet two increasingly essential needs of customers using Qatar as a logistics hub: multi- temperature storage and value- added services (VAS) under one roof. Cold-chain logistics solutions are now a must for 3PL players in Qatar to provide adequate facilities for those looking to tap into this market, as they enable perishable goods to be stored at safe temperatures and to reach their destination at a high quality. VAS devote space for traditional services beyond cargo storage and handling, such as labelling, co-packing, and order fulfilment. Such complementary services provide a competitive edge which allows customers to work within the confines of Qatar’s strict regulations on perishable products and, at the same time, focus on their core business and outsource the more mundane yet necessary tasks to third parties. World-Class Workforce Qatar is also heavily investing in its people to spur its logistics sector and bridge the gap between its advanced infrastructure and a perceived lack of labour. Several academic programmes are now running at higher education institutions across the country, including Hamad Bin Khalifa University and the Community College of Qatar, teaching advanced logistics and supply chain management skills to develop a workforce equal to the task of taking Qatar’s logistics sector to the next level. GAC Qatar, recently named one of the country’s top workplaces by Great Place to Work, has empowered its workforce to improve its standing as a global logistics hub. Its team has the experience and expertise to make crucial and timely decisions for customers that can enhance their daily operations and use of facilities. Flexibility is critical to effective and robust supply chain operations, and that means retaining a close relationship with customers and adapting to their needs by challenging the day-to-day processes from top to bottom. Leading 3PL providers always seek to improve their processes, modifying them to enhance their customers’ operations. Wise Investments Despite having a population of just three million, Qatar is emerging as a global leader in logistics serving Europe, Asia and the wider Middle East region. The Gulf State’s supply chain resilience and logistical prowess were showcased during the World Cup, and it now looks set to reap the rewards. 3PLs in Qatar must invest to stay competitive – in infrastructure, operations and people, all of which will place them in good stead as it continues to diversify their economic portfolio. Customers today are looking for partners in the right place with the proper facilities to support their goals, and those that invest effectively will stand at the forefront of Qatar’s logistical future. HOW QATAR IS POSITIONED FOR FUTURE SUCCESS WITH LOGISTICS IN THE SPOTLIGHT Adrian Peiris, Business Manager for Contract Logistics at GAC Qatar
22 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM I n today’s era of pervasive smart devices and cutting- edge technology, the concept of digital twins is fast gaining prominence. However, many people need to be made aware of what digital twins are and their role in the advancement of digitisation. In its most basic form, a digital twin is a virtual model designed to accurately reflect a physical object. The object, which is being virtually copied, is fitted with sensors related to its functionality. This can range from its core functions down to the most precise details. These sensors then produce data relating to the different aspects of the physical objects’ performance, like their temperature, output or weight – the possibilities are endless. A virtual copy or digital twin is created once this data is processed into the system. This, in turn, means we can manipulate the digital version of the object without physically altering the real thing. By running simulations and monitoring performance, improvements can be made that only affect the original integrity of the object once these are tried, tested and deemed beneficial. Unlocking Efficiency And Optimisation In Ports Now imagine instead of an object, we take a port and create a digital twin of this. This means there is a visual representation of the entire port infrastructure, including terminals, berths, cranes, storage areas, and all other assets. This allows port operators to simulate and analyse different scenarios to optimise operations and improve resource allocation. Some examples of ways digital twins FROM SIMULATION TO REAL-WORLD SUCCESS HOW DIGITAL TWINS REVOLUTIONISE PORT OPERATIONS PORTS LNME Dr Mohamed Rahmah, VP – Ports and Terminals Systems at DP World, sheds light on how they are one of the vital smart solutions technology players in the ports and terminals industry
LOGISTICS NEWS ME | JUNE 2023 | 23 can significantly impact a port include container placement, streamlined berth scheduling and optimisation of cargo movement within the port. By analysing real-time sensor data and integrating it into the digital twin, operators can gain insights into vessel arrivals, container movements, traffic congestion and berth utilisation, facilitating better decision-making and operational planning. Digital twins don’t just alter the physical aspect of a supply chain or port; they can also simulate different scenarios. For example, you could map out a currently existing port, add in all the necessary real- time data, and plan for what would happen to expand the port to double its original size. You can also look at how much more manpower would be needed and how many more berths and warehouses would be required to construct this. By providing real-time data, the digital twin can create insights into better, more efficient ways of working and optimising operational planning for now and the future. Visibility Of Supply Chain Networks Furthermore, digital twins enable the optimisation of supply chain networks that rely on shipping ports. By creating a digital twin of the supply chain, stakeholders can comprehensively understand the entire network. By having visibility over the movement of goods, inventory levels, and demand patterns, we can identify bottlenecks, optimise and overall improve performance, allowing for better forecasting, inventory management and distribution schedule. By creating digital- first solutions, you can go beyond the port and help optimise every step of the cargo’s journey, considering factors such as cost, time and environmental impact. Accelerating Information Exchange Digital twins in ports and supply chains also facilitate collaboration and information sharing among various stakeholders. By providing a digital platform that integrates data from multiple sources, such as shipping lines, logistics providers, customs agencies, and regulatory bodies, digital twins enable real-time information exchange and coordination. This improves communication, reduces delays, and enhances the overall efficiency of port and supply chain operations. This means stakeholders can use the digital twin to track the progress of shipments, share documentation, and streamline customs clearance processes, resulting in faster and more reliable cargo movement. Improving Safety Another benefit of the digital twin is improved safety and efficiency across a port. Having the ability to track in real-time where all vehicles and assets are, insights can be learned on where new ways of working can impact the overall reduction of emissions, optimisation of energy efficiency and minimising waste. With up-to-date information, stakeholders can easily see when an asset is not where it should be, and corrective action can be taken immediately to help prevent accidents. Simplifying The Digitisation Process Deploying a digital twin is now a more straightforward process than ever before. The democratisation of design tools and the widespread efforts to upskill and digitise the manufacturing and engineering industry in recent years have made digitisation more accessible to organisations. Consequently, running and executing digital twins has become more affordable, opening up new possibilities for organisations seeking technological advancements in their supply chains. While digital twins alone cannot address all the challenges supply chains face, they certainly play a crucial role in establishing long- term smart port digitisation strategies. Developing digital twins requires substantial upfront investment; however, instead of committing to a complete overhaul of existing IT infrastructure, ports can gradually incorporate digital twin technologies during the planning stages of the digitisation process. This approach allows teams to make more informed decisions regarding prioritising specific aspects within the supply chain. When implemented effectively, digital twins can enhance just about every aspect of the supply chain for the better, which means the potential for digital twin technology is limitless – although it will take time for ports and cities worldwide to fully adopt and benefit from such advancements. Smart ports will lead to the ultimate creation of smart cities, making a data-rich, digital future a possibility. SUPPLY CHAIN AND SHIPPING PREDICTIONS FOR 2023 Dr Mohamed Rahmah, VP – Ports and Terminals Systems at DP World
24 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM AIRPORTS LNME According to you, how is the air cargo industry shifting post-COVID-19? The air cargo industry is certainly evolving in today’s post-pandemic era. We know air cargo capacity was negatively impacted by widespread travel restrictions and route disruption during COVID-19. However, air cargo was pivotal in ensuring equitable vaccine access throughout this period. Post covid we have seen an increase in both air and ocean capacity resulting in a knock-on effect on rates and demand. Another pandemic-related impact on the industry is an increased awareness of supply chain risks and the need for mitigation through the easy adoption of multi-modality solutions. For air cargo operators, partnerships and collaborative ventures with other logistics providers are becoming increasingly important, and airports have an instrumental role to play by ensuring that services, assets, and solutions continuously support & facilitate multi-modality. What are the current key driving pillars in the air cargo industry? We see various key pillars driving today’s air cargo industry. New partnerships and greater capacity are one formula driving the latest industry trends, primarily as regional and international organisations focus on route and asset optimisation. Air cargo growth is also driven by asset & route strategies as the operators seek to leverage new alliances, multi- modal options, and harmonised trade. Digitalisation and technology use is also critical in helping shape and drives the industry. How is Abu Dhabi Airport adopting digital transformation? As a leading airport operator, we work closely with our partners, stakeholders, and the wider industry to ensure our digitalisation strategy fulfils its potential and creates new value for those we serve. Partnership investments and embracing the latest technologies are at the forefront of these efforts, as has been proven by a series of digital transformation-related activities in recent years. For example, we began trialling a new enhanced ‘Smart Travel’ system in 2020 alongside Convergent AI to shorten queues, streamline processes and deliver more seamless passenger experiences at Abu Dhabi International. AI and big data have been fundamental behind our success in accomplishing these goals in the years since, whilst recent activities further underscore our long-term digital transformation commitment. In November 2022, we signed a Memorandum of Understanding (MoU) with leading French engineering and operations firm Groupe ADP to explore the potential of Advanced Air Mobility (AAM) in Abu Dhabi, whilst another example pertains to Abu Dhabi Airports Free Zone (ADAFZ). To further complement our air cargo offering and support our partners, we are rapidly scaling up our Free Zone logistics facilities and services, leveraging the latest technologies in design and operational elements. What sustainable initiatives have been incorporated to celebrate the ‘Year of Sustainability’? We are proud to have an evident focus on sustainability across our entire operational scope, which is one of our brand values and guides our efforts to reinforce Abu Dhabi’s commitment to sustainability by implementing global best practices and related initiatives. One of the latest initiatives is using Carbon Credits, which rewards our partners based on the efficiency of their processes and their success in minimising their carbon footprint for environmental purposes. What are some of the recent developments at the Abu Dhabi Airport Free Zone? Recent months alone have seen various vital developments within our Free Zone, all of which create additional value and will benefit companies that take the opportunity to work within our free zones and expand their business. We have made tremendous progress in the final stages of our cargo village and terminal THE CAPITAL AIRPORT Robert Sutton, Senior Vice President, Freezone, Cargo and Logistics at Abu Dhabi Airport shares his insights on the air cargo industry, Abu Dhabi Airports Free Zone, and more
LOGISTICS NEWS ME | JUNE 2023 | 25 THE CAPITAL AIRPORT | ROBERT SUTTON rehabilitation project. This project is part of our expansion strategy to increase cargo capacity, enhance operational capabilities and equip our facilities with upgrades that meet the latest aviation industry standards. We have also made our commitment to strengthen commercial bonds and explore global collaboration opportunities publicly. This past November, we welcomed a delegation of international investors to our premises to drive progress in this direction whilst we are also collaborating with multiple specialist partners to expand our range of support products and services. Covering a broad range of areas such as carbon offset, trade financing and trade digitalisation, these form an evolving part of our offering designed to help facilitate employment, streamline processes and add value to our partners. Most recently, we reported a two-fold increase in leased- out spaces and properties, including commercial areas, land development plots and administrative facilities. Our 256% increase in annual leases reaffirmed our status as a unique preferred business destination for local, regional, and international organisations from various economic sectors. How is Abu Dhabi Airport Free Zone facilitating business in alignment with AD Vision 2030? First and foremost, our focus is on ensuring that we understand our client’s business requirements and provide them with the essential support they need, which is a central part of our efforts to continuously align with Abu Dhabi Economic Vision 2030. With airports’ free zones, business parks, business centres, one-stop- shop services, and a logistics park all under our jurisdiction, these have helped us establish a dynamic business community that fully aligns with the emirate’s economic vision. Whilst continuously developing our free zone and facilities, our organisational structure attracts a diverse client base, and we are now home to businesses from a wide range of sectors, including aviation, logistics, e-commerce, ICT and more. In line with the ambitions of Vision 2030 and our internal strategy, we are also building the Midfield Cargo Terminal, a state-of-the-art 60’000 sqm facility designed to drive economic diversification and development by accommodating all forms of air cargo, including temperature and environmentally sensitive products. What are some of the challenges that you are currently facing? Much like many areas across the supply chain ecosystem, the air cargo industry remains in a post-pandemic recovery phase, despite progression and positive outcomes in recent times. Throughout 2023, we expect to see another adjustment period as capacity, assets, routing, and rates are normalised, and our role during this period is to ensure we continue providing our full support to address the challenges facing our air cargo partners and the wider business community within ADAFZ. Robert Sutton, Senior Vice President, Freezone, Cargo and Logistics at Abu Dhabi Airport
COVER STORY LNME 26 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM
LAST-MILEECOSYSTEM HeavyWeights The last mile of the delivery process, when products are delivered from a hub of transportation or a fulfilment centre to the ultimate customer, is referred to as the last-mile ecosystem. It is an essential part of the supply chain and has a significant impact on consumer happiness, retail operations, and e-commerce as a whole. The last-mile ecology is quickly growing and changing in the Middle East for various reasons. First, due to reasons including rising internet and smartphone penetration, shifting consumer behaviour, and a youthful, tech-savvy population, the area has seen a substantial increase in e-commerce. This rise has increased the necessity for effective last-mile delivery services to fulfil the growing demand. Here is a curation of our top picks for heavyweights in the last-mile ecosystem TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM LOGISTICS NEWS ME | JUNE 2023 | 27
28 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM LNME INCEPTION: Around a decade ago, phrases like E-commerce, online shopping, home delivery were less familiar to customers. The only thing frequently ordered and delivered at home was the pizzas and visiting malls for groceries, shopping and just about everything was a normal part of our lives. With the advent of technological advancements, rise of social media, easy access to internet and awareness amongst customers, a boom in the ecommerce industry was brought about and the slow yet steady transition of ordering online started showing growth. Year 2016, we identified that there aren’t as many delivery companies as possible in the market to support growing needs to e-com industry and evaluated the prospective scope this industry has in the coming years. It took many hits, misses, trials, and errors in understanding the complex concepts and science behind a seemingly simple delivery of an item from point A to B. We conducted our pilot with a renowned international quick service restaurant in 2018, which was a gamechanger for us. It wasn’t an easy feat to convince people to place their trust in a new company which based its operations on a new technological concept and was still evolving. Our other major challenges were identifying and building a strong team who would resonate with our vision, collaborating with the right stakeholders and the financial support that’s crucial for any startup like us. We were very fortunate that Mr. Abdullah Al Shaibani, CEO of Axeed LLC and a renowned investor helped us with our seed funding in 2018. DELIVERY SPACE PRE & POST COVID19: Lockdown during COVID19, drastically changed and shaped the buying behavior of the consumers. The transition from mall visits to ordering everything essential such as food, groceries, medicines, or apparel, from the comfort of a couch being delivered to the doorstep has been very sudden and steep. This in a way has been a boon for us and we were quick to evaluate the business opportunity and expanded our horizon of services. We believe that it is our foresight and proactive approach that has helped us to always be one step ahead of our peers and competition. We have never hesitated to explore new avenues or business verticals and are presented with many hurdles and challenges to which we have always been able to find the right solutions and been effectively successful in delighting our customers and achieving our targets too. CUSTOMER FIRST: We take our customers very seriously and go an extra mile to ensure that they are heard and supported the way they want. We ensure that our team is notified of each, and every query registered on our various social media handles, phone calls and website. This in effect pushes us to achieve our quality goals. Social media and the new age technology has been instrumental in bringing us closer to our customers and we take all necessary steps to ensure that the feedback is constructively utilized to make enhancements to our services. We are evolving every day as a company. THE JEEBLERS We have been blessed with a strong team, many of which have been with us since the beginning. We ensure that we provide adequate opportunities for our employees to grow and climb up the professional ladder. Employees are the foundation of any organization, and it is imperative to foster a strong connection within the team which then cascades down to our frontline staff. We do not believe in micromanagement which creates a sense of responsibility in the employees, and they strive to outperform themselves without any hierarchical pressure. JEEBLY LLC Raman Pathak & Ram Parashar, the founders of Jeebly expounds how they have carved a distinguished niche in today’s Last-Mile Ecosystem Raman Pathak & Ram Parashar, the founders of Jeebly
LOGISTICS NEWS ME | JUNE 2023 | 29 SERVICES: We understand the pulse of today and provide a wide range of services to cater to all kinds of customers and requirements. We support both forward & reverse logistics and have ventured into international shipping and cross-border trucking, making us a one stop shop for all logistics needs of individuals & businesses. We thrive on our PPT Model (People – Process – Technology) driven by Standard Operating Procedures, Quality Control Mechanisms, Technological advancements, and effective team management backed by customized training programs for our frontliners who represent us as a company to the outside world. SUCCESS STORY We are proud to boast of over 5000+ (5*) Google reviews with a cumulative rating of 4.3 Stars. Jeebly’s recent notable achievements include partnering with one of the largest healthcare/ pharmaceutical chains in the UAE to deliver their over-the-counter products within 3-4 hours. Our state- of-the-art facility, fulfills and warehouses Over the Counter (OTC) products which has enabled them to increase efficiency, reduce their delivery TATs and ensure that the team meets their SLAs. We have incorporated temperature controlling apparatuses in our bikes and cars to maintain adequate temperatures for these fragile products. This integration of cold supply chain technology in our operations gives us a cutting edge in the supply chain space. Jeebly NoW Our latest technological achievement is Jeebly NoW, a self-service platform which enables individuals and businesses of all sizes to deliver parcels to their customers without any complexity of traditional onboarding. The small merchants face intense scrutiny in terms of documentation and vetting due to a smaller number of orders and are many a times rejected, which is a cause of major disappointment for them. The self-service application provided by Jeebly NoW is user-friendly, simple to use platform created to meet delivery requirements of individuals and businesses alike. In less than 5 minutes, users can register themselves and start placing orders, including On-demand (Point A to Point B), Same-day, Next-day, Expedited delivery, Domestic shipping, and home moving services. Jeebly NoW platform has been designed keeping the following main pain-points of customers in mind: Pay-As-You-Go Model: There is no minimum order or long-term contracts required to start the services. Users pay for what they use. Prepaid Wallet: The prepaid wallet facility provides transparent pricing and no hidden charges, allowing users to appropriately budget their logistics requirements. Interactive Dashboard: Users gain access to an elaborate yet comprehensive dashboard that provides detailed analysis and reports on delivery performance, order volume, and other critical metrics. This real- time monitoring empowers users to take data-driven decisions and optimize delivery processes. The dashboards are customizable as per metrics required by the user as per their business. Real-Time Order Tracking: A robust order tracking system allows users to keep their customers informed about the real-time status of their orders. This transparency ensures customer satisfaction and loyalty. COD Settlements and Auto Tax Invoicing: Jeebly NoW offers Cash-on- Delivery settlements to meet the unique needs of SMEs operating in the UAE. Auto tax invoicing feature provides convenient invoice generation in lieu of the local government tax laws. Our vision and continuous efforts to create something new have helped us emerge as a brand standing shoulder to shoulder with bigger international brands and providing services at par with the benchmarks set by these conglomerates in a fairly short time. For more details visit www. jeebly.com or download Jeebly NoW on your Android or iOS devices. THE ESSENTIALS OF RAS AL KHAIMAH ECONOMIC ZONE Raman Pathak, Co-Founder of Jeebly LLC Ram Parashar, co-founder of Jeebly
30 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM LNME E mEmirates Post Group Company (EPG), an enterprise that conducts business throughout the Emirates and beyond with its headquarters in Dubai, is a Public Joint Stock Company governed by the Emirates Investment Authority (EIA). Along with its official fintech arm, FINTX, and its digital solutions arm, Electronic Documents Centre (EDC), it manages and supervises its postal operational division, Emirates Post. The Company’s portfolio is crucial to advancing the country’s strategy to become a global leader in logistics, eCommerce, financial inclusion, and digital integration. Current Courier Delivery Landscape The courier express parcel industry in the region is experiencing significant growth and development. With the increasing demand for online shopping and the rapid expansion of e-commerce, the need for reliable and efficient delivery services has surged both for e-tailers and customers. Customers who used to be happy with several- days to week-long delivery dates are now looking for next-day and same- day deliveries of their packages. These increasing and changing demands will drive the growth of the industry. It will also drive innovation and technological advancements to cater to these demands. Additionally, we know that the UAE is a valuable market for cross-border e-commerce retailers, and the retailers are investing and expanding into the region accordingly. Our efforts are focused on promoting the UAE as a seamless gateway and strategic logistics hub facilitating cross-border e-Commerce traffic into the UAE and region, and you need a strong local last- mile partner to address the complexities that come with cross-border e-commerce transactions – Emirates Post is that partner for the UAE and GCC region. Challenges Given that the industry is growing fast, three challenges are on top of mind: > Skilled Talent: Talent acquisition and retention are critical challenges in the logistics industry, especially as the industry grows and demand for the EMIRATES POST GROUP Abdulla Mohammed Alashram, Group CEO of Emirates Post Group Company, shares his valuable knowledge on the developing last mile industry TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM Abdulla Mohammed Alashram, Group CEO of Emirates Post Group Company
EMIRATES POST GROUP | ABDULLA MOHAMMED ALASHRAM right talent is high. Attracting, recruiting, and training the right skills can be challenging, especially in a rapidly evolving digital landscape. > Technology: The challenges mainly revolve around managing the fast growth of e-commerce volumes, harnessing the opportunities from cross-border business, and continuing the digital transformation of our retail and back-office activities. Grasping and benefitting from the digital ecosystem of AI, robotics, automation, big data, IoT, blockchain, 3D printing, and drone technology will undoubtedly grow the industry. It is more than just a matter of ‘upgrading or digitising’ - especially with legacy systems (technology) issues. > Changing Industry Trends: Given that the industry is fast- paced and dynamic, it is vital to stay ahead of the game, informed of global trends, and caught up. Increased Competition Our commitment to excellence and customer satisfaction has been our guiding principle. The testament we receive from our valued customers and partners is the most accurate measure of our performance and success. Furthermore, we secured the bid for the UAE to host the 28th edition of the Universal Postal Congress, which will be held in Dubai in 2025. This achievement reflects the confidence industry leaders and postal operators have placed in us. There is good competition out there, and that is why at EPG, we continuously strive to raise the bar, innovate, and adapt to the evolving needs of our market, consistently providing efficient, reliable, and customer-centric solutions. Digital Transformation EPG is dedicated to being at the forefront of technological innovation in the logistics industry, supporting our long-term plans of meeting the evolving needs of our customers and the market. Our digital team is always looking to digitise our current way of operations, products, and services to provide enhanced innovative solutions and drive growth in the logistics industry. EPG is on track regarding its digital strategy; 2023 is witnessing a significant leap in digitisation efforts across all our businesses, introducing new digital programmes, products, and solutions in the first half of 2024. Sustainability The logistics sector plays a vital role in the global economy by facilitating the movement of goods, ensuring the availability of products, and supporting various industries. However, it is also true that logistics operations contribute significantly to greenhouse gas emissions, primarily using fossil fuels in transportation and warehousing activities. These emissions contribute to climate change and significantly impact the environment. Thus, the logistics sector must address sustainability and reduce its environmental footprint. Adopting greener practices, such as ensuring the buildings and warehouses it operates from are sustainably managed with improved energy efficiency, using alternative fuels and optimised transportation routes, and implementing sustainable packaging solutions, can help mitigate the environmental impact. Additionally, investing in technology, such as electric vehicles and renewable energy sources, can reduce greenhouse gas emissions in logistics operations. Ensuring business partners operate sustainably helps create this environmentally conscious business community or model. At Emirates Post Group, we recognise that our actions today have a lasting impact on the environment, society, and the well-being of future generations. Therefore, we have integrated sustainability as a priority into our business strategy. We are benchmarking our plans against other global players and partners and looking at implementing best practices into our daily operations. We have begun to measure our carbon footprint to find ways to reduce our impact year on year. Future Plans At EPG, we are currently undergoing a strategic restructuring to position the organisation as the logistics market enabler in the UAE. The new structure follows the organisation’s transition to a Public Joint Stock Company. As a Group, we will focus on our new five-year strategy to drive growth in Postal, Courier Express Parcels, Fintech, and other ventures. So as our existing subsidiaries undergo the necessary effective changes to stay updated with changing market dynamics and the ongoing evolution of the overall logistics industry, we will also create new business units and subsidiaries to achieve our vision. We will utilise our strengths, capabilities, and partnerships to grow the organisation and reach new heights as we continue to build on our rich history, solid foundation, and talented workforce… Stay tuned!
32 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM LNME T he logistics industry in the Middle East is undergoing a remarkable transformation, driven by the growing demand for efficient last-mile solutions. This trend is particularly evident in Saudi Arabia, where the last-mile ecosystem has experienced significant advancements. The surge in online shopping and the government’s focus on logistics as part of its Vision 2030 initiative have been critical drivers of this transformation. The Saudi Arabian last-mile delivery (LMD) market, valued at $285 million in 2020, is projected to reach $521 million by 2030, reflecting a compound annual growth rate of 6.3% from 2021 to 2030. Companies have been implementing innovative strategies and leveraging technology to optimise their last-mile operations in response to the increased demand for efficient and timely deliveries. Against this backdrop, AJEX Logistics Services has emerged as a prominent player, revolutionising the transportation sector in Saudi Arabia and the wider Middle East region. With a focus on empowering businesses involved in heavyweight logistics, AJEX is reshaping the last-mile ecosystem by providing innovative solutions tailored to meet the unique demands of both the industrial and flourishing non-oil sectors. This article will delve into AJEX’s strategic initiatives, network coverage, and significant contributions to the regional logistics landscape. A Comprehensive Network for Seamless Connectivity AJEX’s vision is to provide seamless connectivity throughout the Middle East and its global network. The company has established a comprehensive network that spans Saudi Arabia and the GCC region to achieve this. This extensive network comprises five main transportation hubs across Saudi Arabia and 19 strategically located shipping centres in Saudi Arabia, UAE, and Bahrain. Additionally, AJEX has established bonded gateway zones in critical locations such as Dammam, Jeddah, Dubai, and Manama. The strategic placement of transportation hubs and shipping centres by AJEX enables timely and efficient last-mile delivery. With extensive coverage of bustling cities like Riyadh, Dammam, Jeddah, Dubai, and Abu Dhabi, as well as emerging trade hubs including Al Hofuf, Taif, and Jubail, AJEX ensures businesses have access to reliable and responsive last- mile solutions. By leveraging its comprehensive network, AJEX bridges the gap between companies and their customers, providing seamless connectivity and enabling businesses to meet the growing demands of their customers in a rapidly evolving market. “Where AJEX truly excels is in our commitment to revolutionising last-mile solutions. Recognising the critical importance of the last mile in the logistics chain, we at AJEX have developed innovative strategies and solutions to address the unique challenges faced during this stage of transportation. Combined with our extensive network, we ensure efficient cargo movement and distribution, strengthening regional trade ties. By focusing on empowering businesses involved in heavyweight logistics, we take pride in how AJEX is reshaping the last-mile ecosystem in the Middle East,” said Fahad Al Salhi, Chief Solutions Officer at AJEX. Expertise in Cold Chain Logistics AJEX stands out in the Middle Eastern logistics industry for its expertise in cold chain logistics, AJEX LOGISTICS Fahad Al Salhi, Chief Solutions Officer at AJEX, reflects with us on how AJEX Logistics Services is Revolutionizing Last-Mile Solutions across the Middle East TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM
LOGISTICS NEWS ME | JUNE 2023 | 33 AJEX LOGISTICS | FAHAD AL SALHI which adds another layer of specialisation to its last- mile services. As the region experiences unprecedented growth, AJEX recognises the need for agile and reliable last-mile solutions to meet escalating customer expectations. Among the region’s fastest-growing sectors, AJEX caters to the pharma and life-sciences industry with its unrivalled temperature-controlled logistics and optimised cold chain management solutions for heavyweight goods. With a robust infrastructure and specialised expertise, AJEX ensures the integrity and safety of temperature- sensitive cargo throughout the supply chain. At the heart of AJEX’s capabilities lies its extensive domestic network strategically positioned across Saudi Arabia, featuring temperature- controlled facilities in Riyadh, Dammam, and Jeddah. These state-of-the-art facilities offer precise temperature ranges, including ambient (15-25°C), chilled (2-8°C), and frozen (-15 to -25°C), catering to the diverse needs of temperature- sensitive goods and are paired with temperature-controlled gateways at each of the airports. “From collection to final delivery, AJEX implements stringent quality control measures and cutting-edge technology to maintain optimal temperature conditions. By adhering to industry-leading standards and regulations, AJEX ensures full compliance in transporting temperature- sensitive goods, providing businesses with the confidence to transport perishable items, pharmaceuticals, and other temperature-sensitive cargo,” said Al Salhi. Future Expansion AJEX is proactively expanding its network to cover 12 additional cities by land and freight networks across Saudi Arabia in the short term. The company also plans to open warehouses in Qasim, Al Jouf, and Abha. By extending its reach, AJEX fosters economic growth and empowers local businesses, creating a network of interconnected logistics nodes that support the region’s trade aspirations. Additionally, AJEX boasts a strong network coverage in China, the Middle East’s largest trading partner. With a focus on facilitating trade and supporting businesses seeking to enter and establish themselves in Saudi Arabia, AJEX provides comprehensive logistics solutions that bridge the gap between these vibrant markets. Driving Economic Empowerment: Saudization and Gender Diversity Initiatives at AJEX AJEX Logistics Services strongly emphasises Saudization and gender diversity within the workforce, contributing to Saudi Arabia’s Vision 2030. AJEX is committed to supporting the employment and development of Saudi nationals in the private sector through comprehensive training programs and career advancement opportunities. The company actively contributes to the economic growth of Saudi Arabia by empowering its local workforce and fostering a culture of excellence. AJEX also recognises the value of gender diversity and equal opportunities in driving innovation and success. The company promotes a work environment that encourages the professional growth of women in the logistics industry. By implementing mentorship programs and leadership development initiatives, AJEX aims to empower women to take on critical organisational roles and make meaningful contributions to the industry. “With a focus on Saudization and gender diversity, AJEX Logistics Services not only supports Saudi Arabia’s economic goals but also nurtures a diverse and inclusive workforce that reflects the vibrant cultural fabric of the region. By harnessing its employees’ collective talents and perspectives, AJEX strengthens its position as a leading logistics provider, fostering innovation and driving the growth of the industry in Saudi Arabia and the wider Middle East,” said Al Salhi. Conclusion AJEX Logistics Services is a pioneer in the Middle Eastern logistics industry, revolutionising last-mile solutions and contributing to the economic diversification goals outlined in Saudi Arabia’s Vision 2030. Through its expansive network coverage, innovative last-mile services, and commitment to Saudization and gender diversity, AJEX is reshaping the logistics landscape and empowering businesses. As the company continues to grow and expand, AJEX’s strategic initiatives will play a vital role in driving economic development, fostering inclusivity, and supporting the realisation of Vision 2030’s aspirations for a sustainable and diversified Saudi economy. Fahad Al Salhi, Chief Solutions Officer at AJEX
34 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM LNME Overview Established in 2015, LogiNext is a global technology firm that offers a SaaS-based Delivery Automation Platform. The company’s solutions enable brands across various sectors – including Food & Beverage, Logistics, eCommerce & Retail, Pharmaceuticals, Manufacturing, Utilities, Energy and Transportation – to digitise, optimise and automate deliveries across the supply chain. LogiNext has successfully streamlined multiple models of inter-city as well as intra-city logistics, including last-mile delivery. With over 250 large-scale SaaS implementations globally, its clientele includes leading brands such as KFC, Starbucks, McDonald’s, Decathlon and SingaporePost. The industry has recognised the company’s work in route planning, route optimisation, reverse logistics and workforce management as genuinely innovative and disruptive. LogiNext has reduced costs, enhanced on-time delivery efficiency, and increased overall end-customer satisfaction ratings for its clients through its cloud-based application network. It has effectively bridged all knowledge gaps between companies and their resources, including those utilised by 3PL (third-party logistics) vendors. LogiNext’s critical solutions to facilitate last-mile delivery are LogiNext Mile and LogiNext On-Demand. LogiNext Mile LogiNext Mile is a proprietary cloud- based solution which manages resource capacity utilisation, route optimisation, real-time tracking, schedule management and order validation. The product includes multiple features that address every customer’s expectation concerning last-mile delivery. Clients have witnessed multifold increases in customer satisfaction ratings following the implementation of LogiNext Mile. The product functions with total control and customizability in alignment with the client’s unique problem scenario. With Mile, LogiNext LOGINEXT ON HOW KEY TECHNOLOGICAL SOLUTIONS ARE DISRUPTING LAST-MILE DELIVERY TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM
has perfected resource allocation, tracking and optimisation to create the highest grade of product to function within the particular parameters of the retail industry. Moreover, LogiNext integrates with multiple enterprise-level management systems to consider different ‘flavours of planning’ (i.e., numerous permutations of possible planning constraints, running on AI/ML) to a client’s central management tools. One of the most oversized Consumer Packaged Goods (CPG) retail chains in the United States faced some challenges with its last-mile delivery – including inconsistent schedule planning, delayed deliveries, poor route optimisation, and lack of real-time tracking or delivery status updates. The client approached LogiNext, seeking a solution to enhance its last-mile delivery efficiency. LogiNext Mile integrated all the client’s problem scenarios into a single solution pitch to facilitate efficient allocation, tracking and optimisation to help the client realise its vision of customer- centricity. Mile streamlined the logistics movement for the client’s entire store network. LogiNext’s patent algorithms structured the most optimal allocation structure by integrating all the essential resource details into the system. Implementing Mile ensured effective resource allocation automation, schedule planning and real-time delivery tracking for the client. It enabled the client to realise its vision of efficient ‘partial deliveries’ (allowing customers to accept only a part of their complete ordered list at the point of delivery while returning the rest of the units, which would not be billed). Post-implementation, the client’s resource utilisation was increased by 30%, with a 37% decrease in delivery delays. Factoring in the increase in delivery efficiency and the total value of each utilised resource, the effectual cost benefit for the client was as high as 77.7%. LogiNext On-Demand LogiNext On-Demand is an enhanced route planning and auto-delivery allocation solution that ensures timely pickups and deliveries. The software has complete visibility of a client’s available resources, allocated orders, location, load, routes etc. This enables it to dynamically auto-allocate new orders to the best available help, considering all the aforementioned factors. On-Demand is thus able to improve both the resource utilisation and efficiency of the client. One of the world’s largest Quick Service Restaurants (QSR) required a solution to optimise its on-demand delivery system. The objective was to maintain the high- quality standards demanded by the brand while completing deliveries within the ideal delivery period of 30 minutes. Initially, the client required many delivery personnel to sustain this model, achieving a turnaround time of 40 minutes from the point of dispatch. Fulfilling the 30-minute delivery assurance would have required it to invest in additional resources. LogiNext On-Demand solution was integrated with the client’s various enterprise resource planning systems and order management systems across all their outlets within 4 weeks. By the end of the first quarter post-implementation, the order delivery lifecycle (one of their key metrics) improved by over 40%! Also, their overall delivery costs decreased by about 15% by the end of the first quarter. Moreover, end customers could effectively track their deliveries through the client’s app, which was integrated with LogiNext’s real-time tracking and delivery status alerts. This transparency significantly improved the customer’s experience, as well as their satisfaction rating post-delivery. In addition, this LogiNext implementation enabled seamless onboarding of third-party delivery partners to help the client scale their operations while further improving delivery costs and customer experience. “It is amazing to see the possibilities that our platform opens up for our customers in terms of helping them up their game on delivery optimisation and customer delight. Our platform has the good velocity to ensure that we stay relevant to the evolving tech landscape & client expectations and can leverage the ecosystem well to help our users thrive!” says Dhaval Thanki, VP of APAC & MEA at LogiNext. LOGINEXT ON HOW KEY TECHNOLOGICAL SOLUTIONS ARE DISRUPTING LAST-MILE DELIVERY The product functions with total control and customizability in alignment with the client’s unique problem scenario. With Mile, LogiNext has perfected resource allocation, tracking and optimisation to create the highest grade of product to function within the particular parameters of the retail industry.
36 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM LNME Key Features FarEye’s Delivery Management platform turns deliveries into a competitive advantage. Retail, e-commerce, and third- party logistics companies use FarEye’s unique combination of orchestration, real-time visibility, and branded customer experiences to simplify complex last-mile delivery logistics. The FarEye platform allows businesses to increase consumer loyalty and satisfaction, reduce costs and improve operational efficiencies. FarEye has 150+ customers across 30 countries and five offices globally. FarEye’s pioneering efforts with renowned global brands have recognised it as a representative vendor in Gartner’s first-ever Market Guide for Last-Mile Delivery Technology. Additionally, FarEye has maintained its position in Gartner’s Vehicle Routing and Scheduling Market Guide for four consecutive years. FarEye’s last-mile expertise receives validation not only from industry experts but also from satisfied customers. In the recent G2 Spring reports for 3PL and Last-mile Delivery, FarEye emerged as a leader, garnering impressive scores in essential categories such as ‘Quality of Support’ and ‘Ease of Use’. G2’s ratings are based on customer reviews, reflecting their product satisfaction. FarEye has raised $150 Mn in funding, with the Series E funding round led by top investors like TCV and Dragoneer Investment Group. This is a further testament to investors’ trust in FarEye’s abilities to solve challenging problems in the last-mile delivery segment. FarEye’s products Ship, Track, Route, Execute, Experience, Analyse and Grow help companies solve last-mile logistics complexity and manage consumer expectations. It empowers companies to ship from anywhere to everywhere and ensures deliveries reach every customer on time, every time. Enhance Customer Satisfaction FarEye works with clients across the CEP, Retail and large & heavy furniture delivery companies. Each company is laser-focused on improving its last- mile process because it directly impacts customer loyalty and revenue. In the middle east, the e-commerce market is becoming increasingly competitive as it will grow by 16.4% in the coming years. UAE’s retail mobile- commerce market is expected to grow at a CAGR of 18.9% until 2025. To manage this surge in consumer demand, retailers have no option but to pivot to an intelligent last-mile delivery platform that can help them reduce last-mile delivery costs and make the most of the e-commerce opportunities. Efficient last-mile delivery leads to faster and more reliable service, enhancing customer satisfaction and loyalty. Satisfied customers are more likely to make repeat purchases and recommend the business to others, driving revenue growth. Last mile is the most costly leg of delivery, with challenges such as effective route planning, managing multiple delivery partners and carriers, ensuring real-time visibility of deliveries, meeting customer expectations for fast and convenient delivery, and handling exceptions or delays effectively. FarEye addresses these challenges by offering a comprehensive delivery management platform that optimises FarEYE Gautam Kumar, Co-Founder and COO at FarEye, describes the platform’s key features and how it enhances customer satisfaction and more TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM
LOGISTICS NEWS ME | JUNE 2023 | 37 routes, enables collaboration with multiple delivery partners, provides real- time tracking and visibility of deliveries, offers automated exception handling, and empowers businesses to provide superior delivery experiences to their customers. FarEye’s solution streamlines the last-mile delivery process, improving operational efficiency, customer satisfaction, and competitive advantage. By optimising delivery routes, scheduling, and resource allocation, FarEye helps businesses reduce delivery time, improve on-time delivery rates, and lower costs associated with last-mile logistics. Real-time visibility provided by FarEye’s delivery management software allows businesses to proactively identify and address potential issues or delays in the delivery process. This ensures transparency and helps in managing customer expectations effectively. With features like branded tracking, personalised notifications, and seamless post-purchase experiences, FarEye enables businesses to provide a frictionless and engaging delivery experience, increasing customer satisfaction and loyalty. Various Companies and Fareye’s Solutions FarEye’s delivery management platform enables courier and logistics, 3PL, food and grocery, restaurants, retail, and consumer packaged goods (CPG) companies to make better deliveries and enhance customer experience. FarEye has partnered with big names like Sharaf Dg, Hilti Qatar, and Danube Home in the Middle East. We work with some of the biggest names in a cross- section of industries worldwide. For instance, Gordon Food Service (GFS), a food distribution company in North America, wanted to offer same-day orders and delivery to their customers. Planning same-day van delivery routes manually took time, leading to efficient routing and missed delivery windows that ultimately impacted their sales revenue. With the help of FarEye, GFS could route drivers efficiently through a driver app using optimised routes to hit target delivery windows. GFS grew their sales by 8.6% in 2021 by adding digital last- mile capability. A multinational pizza delivery company that had been in the pizza business for more than five decades wanted to reduce its delivery turnaround time from its existing window of 30 minutes. Due to inefficiencies in core delivery operations, this goal needed to be met. FarEye enabled the pizza delivery company to reduce their delivery time by 27% and helped them achieve more than 1.4 million contactless deliveries during the pandemic. With FarEye’s platform, these companies have reduced delivery costs, improved delivery times, and enhanced overall operational efficiency. FarEye has over 150+ customers across 30+ countries, rapidly expanding its global presence and improving billions of deliveries worldwide. Differentiation FarEye’s platform facilitates flexibility and scalability. Its platform is built on a low code/no code framework, making it easy for businesses to configure and customise the software according to their needs. This enables rapid deployment and quick updates and reduces dependence on IT resources. Real-Time Tracking And Visibility FarEye’s real-time visibility and tracking offering- Track has been exclusively built to keep in mind the need for customers and stakeholders to track shipments across the multiple legs of their delivery operation. Track helps retail, e-commerce, and third-party logistics companies gain accurate, real-time visibility into the movement of customer orders. With shipment-level visibility, detect delays and disruptions and collaborate to ensure every delivery arrives on time. Real-time visibility from first-to-last mile is integral to delivery success, but it is equally challenging. Multiple carriers, delivery vehicles, and interdependent systems like TMS, WMS, and other carrier software increase the complexity of your delivery network. The track provides a unified view of the delivery network so stakeholders can monitor the movement of shipments accurately, calculate ETAs, predict disruptions, avoid delays, and achieve on-time order delivery. In the middle east, a range of companies like Alliance Foods Company LLC, Eirad Trading & Contracting Company and Hilti Qatar are using FarEye’s capabilities to gain more visibility into their delivery operations. With FarEye, they have identified gaps in their delivery operations and are now better prepared to handle any disruptions or delays in the delivery process. Another example of a company benefiting from FarEye’s real-time visibility is Blue Tribe Foods, a pioneer in plant-based meat products. Blue Tribe wanted to deliver their products to the consumers on demand and always on time. They faced challenges related to a need for real-time courier and driver visibility. FarEye’s delivery management platform helped Blue Tribe increase real- time visibility into customers’ orders from the order to the doorstep. More visibility led to an increase in driver productivity. A leading logistics company in QuadX in the Philippines specialising in e-commerce deliveries needed complete visibility into its last-mile delivery process. QuadX was able to digitalise its courier services and provide more real-time visibility across first-to-last-mile logistics throughout the delivery process. This led to a 307% growth in orders delivered since deploying FarEye. FAREYE | GAUTAM KUMAR, CO-FOUNDER AND COO AT FAREYE LOGISTICS NEWS ME | FEBRUARY 2023 | 37 FarEye has raised $150 Mn in funding, with the Series E funding round led by top investors like TCV and Dragoneer Investment Group. This is a further testament to investors’ trust in FarEye’s abilities to solve challenging problems in the last-mile delivery segment.
38 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM C athay Cargo, the Cathay Pacific Group’s cargo division, supports the last-mile deliv- ery landscape by implement- ing advanced digital innova- tions that drive efficiency from the offset. With a focus on integrating state-of-the- art technology and refin- ing operational processes, the leading cargo services provider sets new bench- marks for convenience and sustainability in end-to-end cargo operations. Undergoing a transforma- tive rebranding earlier this year, Cathay Cargo has in- troduced a range of digital advancements to streamline product transportation, making significant contribu- tions to trade across the Ca- thay network and beyond. With an extensive fleet of over 200 aircraft, Cathay Cargo provides world- class air cargo services, offering direct shipping to more than 70 destinations worldwide. Implementing the new technological innovations is poised to serve as a game- changer for the cargo indus- try. It indirectly supports the fast-evolving last-mile delivery business, allowing more efficient and reliable deliveries in the final leg of the supply chain. Vishnu Rajendran, Area Manager Middle East at Cathay Pacific, expressed his enthusiasm for the com- pany’s digital transformation and its impact on the logis- tics landscape. He said, “We are thrilled to be at the fore- front of pioneering efforts in the cargo industry through our digital innovations, LNME THE EXPANDING CARGO DIVISION OF CATHAY PACIFIC GROUP CATHAY CARGO TOUTS ITS SUPPORT TO THE LAST-MILE INDUSTRY TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM
LOGISTICS NEWS ME | JUNE 2023 | 39 which results in support for our last-mile delivery part- ners. By leveraging cutting- edge technology and refining our operational processes, Cathay Cargo is revolution- ising air cargo solutions’ convenience, efficiency, and sustainability. This includes the transportation of goods such as animals, pharma- ceuticals, secure items, and dangerous goods to major cities worldwide. “By embracing technology and data-driven solutions, the company has achieved enhanced operational effi- ciency, increased transparen- cy, and improved customer satisfaction, setting new standards in the industry,” he added. Vishnu further emphasised the company’s commitment to embracing digital tools and their benefits, add- ing, “While introducing new digital solutions may present initial challenges, we firmly believe that the positive outcomes outweigh any adjustments required. We invest significant time and resources to ensure a seamless transition, provid- ing comprehensive employee training. We foster a culture of innovation through these digital innovations, ultimate- ly delivering exceptional customer service.” One notable addition to Cathay Cargo’s recent digitalisation efforts is the Click & Ship platform. The user-friendly tool prioritises customers’ needs by enabling them to book shipments effortlessly in three simple steps: accessing price and space availability informa- tion, making their book- ing, and receiving instant confirmation. The platform has received accolades from customers in India, affirming its effectiveness, and Cathay Cargo actively promotes its utilisation among its clientele. Cathay Cargo has also implemented the Interna- tional Air Transport Associa- tion’s (IATA) ONE Record initiative in Hong Kong. This data-sharing standard initiative aims to create a single record view of the shipment. The implementa- tion builds on the success of the e-AWB (Electronic Air Waybill). This critical air cargo document serves as the contract of carriage between the shipper and the carrier, which is the airline. Cathay Cargo establishes a Virtual Shipment Record for all shipments with the ONE Record initiative. This ensures end-to-end transpar- ency as consignments move through multiple stages in the air cargo chain. The ONE Record initiative also includes emissions informa- tion, crucial for corporate social responsibility report- ing. The addition allows Cathay Cargo to track and report emissions data related to the transported shipments, further enhanc- ing their commitment to sustainability and environ- mental responsibility. Pioneering the use of blockchain technology in cargo operations and staying at the forefront of the global trend, Cathay Cargo has introduced a blockchain-enabled ULD (Unit Load Device). The industry-first implementa- tion ensures secure and tamper-proof documenta- tion of custody transfers, enhancing data integrity and reducing risks. Cathay Cargo also of- fers Ultra Track, a multi- dimensional track-and-trace service that provides cus- tomers with near-real-time information on the airport- to-airport leg of their shipment journey. Leverag- ing low-energy Bluetooth data loggers, Ultra Track offers 24/7 support and is particularly well-suited for pharmaceutical and perish- able shipments. Tracked metrics include Cargo iQ Milestones, GPS location, temperature, and humidity, which can be expanded to light and vibration. THE EXPANDING CARGO DIVISION OF CATHAY PACIFIC GROUP
40 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM LNME L ast-mile delivery is a crucial cog in the wheel of logistics. It is the last part of the supply chain, where goods’ final movement occurs from a business to its consumer. Because it is a customer’s first point of contact with a product, it can determine a retailer’s success. The last mile is increasingly becoming a critical component of the e-commerce supply chain, with many companies developing targeted strategies to compete effectively. The last mile requires considerable attention because it will remain one of the main touchpoints in the customer experience. This is particularly relevant in the UAE, where e-commerce is booming, with estimates that it could grow by 60 per cent to more than $8 billion by 2025. Companies that make their urban delivery networks more flexible by investing in data for better customer experiences, managing their inventory efficiently and deploying new technologies to boost productivity will have a competitive advantage in the dynamic e-commerce marketplace of tomorrow. To support the rapid expansion of e-commerce, it is also critical for logistics companies to decarbonise last-mile transport not only in the B2C segment when it comes to parcels but also in B2B when it comes to providing end-to-end solutions for business customers. Digitalisation in route optimisation for the last mile is helping to improve utilisation, efficiency and sustainability. This is especially beneficial during seasonal retail surges, like Eid, shopping festivals and other promotional days, which puts significant pressure on logistics companies to build additional capacity. As urban customers’ demands for speed and convenience grow, retailers must overhaul their warehousing networks and replace centralised networks with local fulfilment and distribution infrastructure. Transport capacity gaps must be addressed so trucks are utilised optimally. For example, when it comes to heavyweight (full truckload), the truck may return empty after it delivers its load. Digital solutions can improve last- mile optimisation and sustainability. For instance, DHL’s GoGreen solutions plan to convert at least 60% of its last- mile delivery fleets to electric vehicles to help clients reduce their environmental footprint. By partnering with such providers, retailers can enhance their image as sustainable organisations without making costly investments in their own eco-friendly vehicles. Battery-electric vehicles for pickup and delivery are the ideal last-mile solution. These vehicles are designed for short- range trips, making them well-suited to reduce emissions, especially in urban areas. DHL Global Forwarding launched the UAE’s first electric truck – the Mercedes-Benz eActros 300 – to reduce carbon emissions as part of the Saloodo! Digital road freight solution platform. This fully electric truck is equipped with Daimler’s cutting-edge eAxle technology and two integrated electric motors, delivering power and efficiency. A remarkable gross combination weight of up to 40 tons proves that heavy-duty distribution transport can be environmentally friendly without compromising performance. Intermodal transport and combining different transport modes are also vital to designing effective last-mile delivery solutions. Through intermodal and multimodal transportation, handling costs and the risk of damage and loss are minimised, and goods get to their destination in a shorter time. It also helps to reduce lead times, lower inventory costs, and keep freight costs under control. Optimised route planning reduces emissions and transportation carbon footprint. Increasing intermodal solutions is an integral part of DHL’s sustainability roadmap. The company has signed a 20-year partnership with Etihad Rail to strengthen end-to-end logistics and supply chain services for regional customers. The partnership aims to offer secure and reliable transportation and is also an environmentally friendly alternative to cargo transportation via road or air freight. Each train trip will shift around 300 truckloads from road to rail and significantly reduce pressures on road transport. It will also boost trade, commerce, and logistics in the UAE and help the UAE meet its environmental responsibility commitments. Enhancing business productivity and meeting customer expectations can become a herculean task without a robust last-mile delivery solution. However, an effective last-mile delivery network can alert customers of potential delays and offer retailers end-to-end visibility of shipments. Brands can then design a holistic brand experience for their customers, leading to better expectation management and trust while meeting their own sustainability targets. GLOBAL FORWARDING DHL AMADOU DIALLO, CEO OF DHL GLOBAL FORWARDING, MIDDLE EAST AND AFRICA ON TRANSFORMING LAST-MILE LOGISTICS IN THE UAE TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM
LOGISTICS NEWS ME | JUNE 2023 | 41 I n today’s fast-paced world, the last-mile delivery segment plays a crucial role in the success of e-commerce businesses. As the final step in the supply chain, it directly impacts customer satisfaction and loyalty. To thrive in this highly competitive industry, last- mile delivery companies must adopt innovative and strategic approaches to build more substantial businesses. Some key strategies can be game changers in the last-mile delivery space to achieve exceptional success. Embrace Technological Advancements Last-mile delivery companies must leverage technology to streamline operations, enhance efficiency, and improve customer experience to stay ahead. Innovative tools such as route optimisation software, real-time tracking systems, and smart analytics enable companies to optimise delivery routes, reduce costs, and provide accurate estimated delivery times. iMile Delivery has invested heavily in cutting-edge technologies and developed a proprietary delivery management platform that integrates with e-commerce systems and allows seamless order processing and tracking. Invest in Robust Logistics Networks Establishing a solid logistics network is critical for last-mile delivery companies. By strategically locating distribution centres, optimising warehouse operations, and partnering with local fulfilment centres, companies can reduce delivery times, increase flexibility, and enhance overall service quality. iMile Delivery has built a vast network of strategically located fulfilment centres, providing swift and reliable deliveries across a wide geographical area. Prioritise Customer Experience In the last mile, the delivery experience is a crucial customer touchpoint. Companies must enhance customer satisfaction through prompt, transparent communication, flexible delivery options, and convenient return processes. Implementing customer- centric initiatives like SMS updates and real-time delivery notifications can significantly enhance customer experience. Miele Delivery’s customer- centric approach has distinguished itself by offering personalised delivery preferences and proactive notifications, ensuring a seamless and transparent customer experience. Sustainable and Eco-Friendly Practices In an era of increased environmental awareness, adopting sustainable practices is both a moral imperative and a competitive advantage. Last-mile delivery companies can minimise their carbon footprint by optimising delivery routes, adopting electric or hybrid vehicles, and implementing eco-friendly packaging solutions. iMile Delivery has actively pursued sustainability by investing in a green fleet and utilising recyclable packaging materials, reducing their environmental impact and appealing to eco-conscious consumers. Collaboration and Partnerships Finally, to overcome last-mile delivery challenges, companies should actively seek collaborations and partnerships with relevant stakeholders such as e-commerce platforms, retailers, and local courier services. These collaborations facilitate shared resources, expand service coverage, and promote mutual growth. iMile Delivery has forged strong partnerships with leading e-commerce platforms, allowing them to tap into a vast customer base and gain a competitive edge in the market. In the highly competitive last-mile delivery industry, companies must adopt effective strategies to build more substantial businesses and remain ahead of the curve to secure long-term success in the dynamic world of e-commerce logistics. iMile Delivery differentiates itself in the last-mile delivery industry through its commitment to innovation, continuous improvement, and customer-centric practices. The company invests in cutting-edge technology, builds robust logistics networks, prioritises customer experience, and adopts sustainable practices. With a dedicated workforce and a focus on employee training, the company stays at the forefront of the industry, adapting to market dynamics and ensuring customer satisfaction. Miele Delivery’s success is attributed to its holistic approach, making it a trusted and innovative leader in the last-mile delivery space. iMILE DELIVERY AMAR RIZVI ON DELIVERING EXCELLENCE ON THE IMILE APPROACH TO LAST-MILE DELIVERY TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM
42 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM LNME Urbi Industry Solutions: Navigation: Seamlessly Charting The Course One of the critical pillars of Urbi’s offerings is its advanced navigation technology. Gone are the days of getting lost, missing exits, or taking wrong turns. With Urbi’s precise turn-by-turn directions, offline data available and route planning from point A to B, drivers can navigate with confidence and ease. Urbi ensures optimal routes, minimises travel time, and enhances overall productivity, whether delivering goods or transporting passengers. Citylens: A New Vision For Urban Management Urbi’s innovative CityLens takes urban management to unprecedented heights. CityLens provides a comprehensive and intelligent solution for cities and businesses by digitising the urban environment like never before. With its perfect integration with Urbi Pro, CityLens allows users to work at the object level and combine datasets, unlocking a new level of analysis and growth. CityLens empowers decision- makers to make informed choices, optimise resources, and create sustainable urban ecosystems, from road signs and pits to city lights and waste management. GIS Technology: Unleashing The Power Of Location Intelligence: Location intelligence is a game-changer in the transportation and logistics industry, and Urbi leverages GIS technology to harness its full potential. Businesses gain valuable insights into their operations by integrating GIS data with real- time information. With Urbi’s GIS solutions, companies can optimise routes, monitor fleet performance, track assets, and make data-driven decisions that drive efficiency and cost savings – transforming challenges into opportunities. Urbi Pro: Data, Analysis, Management And Strategy Are Key Urbi Pro’s data analysis and strategic capabilities give logistics and transportation companies a competitive edge. Businesses can unlock valuable insights and make informed decisions that drive efficiency and growth by harnessing the data generated in their operations. Urbi Pro’s robust analytics tools enable companies to analyse key performance indicators, track trends, and identify areas for improvement. With detailed reports and visualisations, businesses can comprehensively understand their operations. Additionally, with this knowledge, companies can develop data-driven strategies that streamline processes, reduce costs, and enhance customer experience. I n today’s fast-paced world, transpor- tation and logistics companies face numerous challenges that require intelligent, efficient, and forward- thinking solutions. That’s where Urbi comes in, revolutionising the industry with its cutting-edge navigation, Cit- yLens, and GIS technology solutions, bringing uplift management, improving efficiency, strategizing smart spending, and solving service complications. “Urbi’s innovative solutions are designed to transform the transportation and logistics industry, providing businesses with the tools they need to overcome challenges and thrive in a rapidly evolving landscape,” says Pavel Mochalkin, CEO of Urbi. “With our advanced navigation, CityLens, and GIS technology, we empower companies to make informed decisions, optimise operations, and deliver exceptional experiences to their customers.” Mohammed Al Beloushi, Deputy CEO of Urbi, adds, “At Urbi, we understand the importance of seamlessly integrating technology into the transportation and logistics sector. Our solutions are built with customisation, scalability, and future-proofing in mind, enabling businesses to adapt and excel in an ever-changing environment. We are committed to driving innovation and empowering our clients with the intelligent tools they need to stay ahead.” With a mind-forward approach, reasonable investment, and speed implementation, Urbi empowers businesses to overcome obstacles, streamline operations, and unlock new levels of efficiency and success. From Chaos to Efficiency: urbi’s Mind-Forward Approach to Revolutionize Transportation and Logistics Pavel Mochalkin, CEO of Urbi TOP HEAVYWEIGHTS IN LAST-MILE ECOSYSTEM
LOGISTICS NEWS ME | JUNE 2023 | 43 URBI | FROM CHAOS TO EFFICIENCY Unlocking The Future: Urbi’s Mind-Forward Business Approach Urbi’s approach goes beyond technology; it’s about enabling businesses to thrive in a rapidly evolving world. By adopting Urbi’s solutions, transportation and logistics companies gain a competitive edge and stay ahead of the curve. Here’s how Urbi’s mind-forward business approach sets it apart: 1. Innovation and Adaptability: Urbi stays at the forefront of technology advancements, constantly evolving its solutions to meet the industry’s ever-changing needs. With an agile mindset, Urbi embraces innovation and ensures its solutions remain relevant and effective. 2. Seamless Integration: Urbi understands the importance of seamless integration into existing business processes. Its solutions seamlessly integrate with other systems, making implementation smooth and hassle-free. This ensures minimal disruption and maximum efficiency for businesses. 3. Customization and Scalability: Recognising that every business is unique, Urbi offers customisation options to tailor its solutions to specific requirements. Whether a small-scale operation or a large logistics enterprise, Urbi’s solutions are designed to scale and adapt as businesses grow. 4. Future-Proofing: With a focus on the future, Urbi’s solutions are designed to be future-proof. By embracing emerging technologies like AI and machine learning, Urbi ensures its offerings remain relevant and continue to drive innovation and growth. By harnessing the power of navigation, CityLens, and GIS technology, Urbi enables companies to overcome challenges, optimise operations, and embrace a future of efficiency, sustainability, and success. Discover the transformative power of Urbi’s solutions today and unlock a new era of transportation and logistics excellence. 8 Logistic and Transportation industry main navigation challenges: 1. Route Optimisation: Logistics and Transportation companies often face the challenge of optimising routes for efficient and timely deliveries – considering factors such as traffic conditions, road restrictions, and delivery schedules. 2. Real-Time Traffic Management: Dealing with congested roads, accidents, and road closures is a common challenge for transportation companies where GIS technology comes into play. 3. Multi-Modal Transportation: Transportation companies often operate across various modes, such as road, rail, air, or sea. Coordinating and integrating these different efficient modes can be a challenge. 4. Last-Mile Delivery: It can be particularly challenging due to factors like congested urban areas, complex addresses, and unpredictable customer availability. 5. Fleet Tracking and Management: Managing a fleet of vehicles efficiently is another significant challenge for logistics companies. This includes tracking vehicle locations, monitoring fuel consumption, optimising driver assignments, and ensuring compliance with regulations. 6. Warehouse and Inventory Management: Efficiently managing warehouse operations and inventory is crucial for logistics companies. To optimise warehouse layouts, track inventory levels, and facilitate efficient stock replenishment, that’s where the main hurdle comes. 7. Supply Chain Visibility: Maintaining visibility and transparency throughout the supply chain is essential for logistics companies. Challenges such as delays, disruptions, and inventory shortages can impact the overall supply chain efficiency. 8. Safety and Compliance: Safety and compliance with regulations are paramount in the transportation industry. Identifying safe and compliant routes, considering factors such as bridge heights, weight restrictions, hazardous material regulations, and other relevant constraints. By addressing these challenges by implementing navigation and GIS technologies, logistics and transportation companies can enhance operational efficiency, reduce costs, and provide superior customer experiences. Mohammed Al Beloushi, Deputy CEO of Urbi
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U nilever Arabia has announced the addition of the first-ever Electric Van (EV) to its fleet in the UAE. Making deliveries to its key customers in Dubai as of this March, the incorporation of the 1-tonne battery-powered van signifies a significant stride in Unilever’s efforts towards reduced emissions via its logistics operations and achieving net zero value chain emissions by 2039. As part of a strategic partnership with leading retailer Carrefour – owned and operated by Majid Al Futtaim in the UAE –the EV van will initially deliver Unilever’s products to Carrefour’s Mall of the Emirates store. This will provide customers in Dubai with a sustainable delivery solution, reducing emissions by up to 15 per cent compared with traditional vehicles. The region’s first EV van was launched in the presence of Mr Youssef Lootah, CEO of Corporate Strategies and Performance Sector, Dubai Department of Tourism and Commerce Marketing (Dubai Tourism), along with Ahmed Kadous, Unilever’s Head of Supply Chain MENA & PC Middle-East & Turkey, Khalil Yassine, Head of Unilever Arabia and Luc Charrier Vice President of Merchandise for Carrefour, at Majid Al Futtaim Retail. Commenting on the milestone, Ahmed Kadous, Unilever’s Head of Supply Chain MENA & PC Middle-East & Turkey, said, “Sustainability is integrated into everything we do at Unilever. As part of our vision to ensure a purpose-led and sustainable business model, the EV van aligns with our bold ambitions towards delivering good yet reliable performance and growth. Introducing electric vehicles to our delivery fleet is a core ambition central to Unilever’s sustainability commitment.” “We look forward to working more closely with the public sector and industry to expand the infrastructure and seamlessly support the transition to electric mobility.” I congratulate the team for their unwavering efforts in driving Unilever’s vision forward and thank our partners for sharing our ambitions towards achieving a net zero business model.” Bertrand Loumaye - Country Manager for Carrefour - at Majid Al Futtaim Retail, commented, “We are committed to sourcing and delivering sustainably sourced produce as part of our ‘Dare Today, Change Tomorrow’ strategy. The launch of the first electric delivery van in the UAE from Unilever, a highly valued partner, marks a major milestone in Majid Al Futtaim’s journey to becoming net positive in carbon and water by 2040 – as well as our collaborative efforts to achieve the UAE’s Net Zero 2050 strategy. It is exciting to be at the forefront of such momentous, positive change as we continue to make industry- firsts happen.” Before joining the existing fleet, the EV van underwent a series of planning and testing to ensure its readiness and compliance. These included driver training, vehicle maintenance, insurance and on-site charging port installation in collaboration with the EV distributor, Emirates Global Electric Motors, a member of Al Fahim group, and leading global logistics provider DB Schenker. Emirates Global Motor Electric (EGME) is the official dealer in the UAE for Yaxing EV vans, which features a 105 kWh Liquid Cooling Battery with a range of up to 300 km and can carry a payload of 1,400 kg. This van’s Co2 CO2 emission reduction versus a similar van run on diesel is around 250kg CO2e per truck per day. As part of its commitment towards developing a greener supply chain, Unilever has commenced a programme to test alternative fuels. Since late 2022, Unilever has been testing biodiesel in the UAE with two trucks, which reduce CO2 emissions by up to 15% compared to conventional fuels. UNILEVER FIRST COMPANY TO ADD AN ELECTRIC VAN TO ITS LOGISTICS FLEET IN THE UAE ELECTRIC VEHICLE
46 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM CARGO LNME THE KINGDOM’S EFFICIENT AIR FREIGHTER Vibha Mehta discusses the extensive spectrum of cargo services provided by Saudia Cargo with Marwan Niazi, Vice President of Commercial
LOGISTICS NEWS ME | JUNE 2023 | 47 How has the supply chain demand increased from the pre-Covid era? When the COVID-19 pandemic was declared in March 2020, the global capacity was around 1 million Tons/Day and constantly fluctuated with certain periods hitting as low as the 0.5Million Ton/day up until January 2022. From then onwards we began seeing a slow but steady growth reaching 0.75Million Tons/ day towards the end of January 2023. The demand also fluctuated in the same manner, mostly remaining overall positive until March 2021 when it stabilized, and we saw a consistent growth towards the end of 2022. We did expect a decline in 2023, and as per our expectations we are now seeing demand decrease due to several reasons of a geopolitical, commercial, and operational nature. However, despite this, inventory levels are currently higher than they were in 2022 and we believe that demand will pick up and increase again in the second half of 2023. Can you please walk us through the services you offer? We offer a number of services that meet consumer demands and we consistently explore various means to add to our offering based on consumer trends. Our most notable services include: > Sky team network. > Secured cold chain for temperature-controlled cargo. > Trucking services across the network. > Specialized live animal transport (such as horses). > Special customized solution charter How are logistics companies using Saudia Cargo services? Saudia Cargo offers logistics companies several benefits as well as strengthens their positioning in the industry through its services. These benefits include a strategic customer centric approach, high-tech automation, innovative digitalization, asset optimization, and a focus on the human factor. As such, logistics companies can benefit from Saudia Cargo services through reliable and fast delivery, cost- effective transportation, customized solutions, technology-enabled tracking and management, and enhanced security. These factors enable logistics companies to streamline their businesses towards being more dependable and reliable in addition to receiving support from Saudia Cargo’s high calibre team of professionals. THE KINGDOM’S EFFICIENT AIR FREIGHTER Marwan Niazi, Vice President of Commercial, Saudia Cargo >>> LOGISTICS NEWS ME | JUNE 2023 | 47
48 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM CARGO LNME What are the core pillars for your fleet management? Fleet planning is a fundamental part of airline operations that requires thorough consideration and design. Having the right mix of fleet is key to the success of an airline. Other factors are: > Placing the right aircraft for a specified route. > Having a mix of owned and leased fleet to cater to seasonality. > Integrating a route-based model. Can you tell us more about the software which several aeronautical operators use? We use an advanced system for our network design which takes into consideration both operational and commercial aspects. Results are based on various aspects such as revenue maximization, cost minimization, profitability, and others. Scenario building cases are performed for evaluation of a network and how to further improve it. In terms of the impact of route expansion or reduction on the network, these software tools play a critical role in ensuring that flights are scheduled and managed efficiently. When an airline expands its route network, it must ensure that it has the necessary resources to operate those additional flights, including aircraft, crew, and ground support. The systems can help the airline plan and manage these resources to ensure that flights are operated safely and efficiently. On the other hand, when an airline reduces its route network, it must make adjustments to its resources and operations to ensure that it is still able to provide service to its remaining destinations. Specific systems can help the airline make these adjustments and optimize its operations to maximize efficiency. All in all, software tools used by aeronautical operators are critical for safe and efficient operation of air transportation, and they play a vital role in managing the impact of route expansion or reduction on the network. How does fuel pricing and volatile markets due to uncertain events play a crucial role in your operations? Fuel is the highest cost head for any airline, and it severely impacts the profitability of the routes. Cargo
LOGISTICS NEWS ME | JUNE 2023 | 49 THE KINGDOM’S EFFICIENT AIR FREIGHTER businesses are very dynamic, and airlines need to be too agile to react to changes in volatile markets. According to you, how will the air cargo industry will be shaping in the region? First, we must admit that regionally and globally the COVID-19 pandemic accelerated pre-existing issues in the supply chain and brought to light priorities such as visibility, resilience, and digitization to the top supply chain priorities. The pandemic changed consumer behaviours and triggered a long-term rigorous growth in E-commerce. The region in general and Saudi Arabia specifically is seeing the development of a large number of mega projects which will create more growth in the industry and lead to its transformation. Is Saudia Cargo incorporating automation in its operations? Can you talk more about it? Saudia Cargo prides itself on always being ahead of the curve particularly with innovation and technology. We have incorporated automation into our operations in the following ways: > Tracking of ULD’s globally is now 90% inaugurated and will rise to 95- 97% by the end of 2023. > Fully automated MHS in KSA covering both imports and exports. > VNA storage racking system partly implemented in KSA. > Full scale use of HHT for tracking ‘real time data’ in KSA. > Full automation MHS system in progress for handling of Transfer cargo. > Separate PIL and PER facilities inaugurated throughout KSA with semi-automated functionality. > Detailed and controlled data capture of all FSU messages from GSA’s, trucking companies as well as GHA’s in progress. What are the plans for Saudia Cargo in the future? Saudia Cargo has made great strides in the industry and in positioning the Kingdom of Saudia Arabia as a leading air cargo hub. We aim to continue our success and build on it to transform the Kingdom’s logistics industry in alignment with the Saudi Vision 2030. Our plans include: > Expanding our fleet. > Widening our network. > Increasing our focus on automation, digitalization, and sustainability. > Increasing the capacity of our teams through specialized training initiatives and programs. > Redefining and raising the Cargo industry’s capabilities and standards. > Delivering industry leading services to our valuable consumers and partners.
50 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM 3 Biggest Leads In The Trucking Industry The automotive industry is undergoing an environmental and technological transformation worldwide. One of the most essential items of this change is the industry’s energy needs. The hydrogen and electricity ecosystem is replacing the existing fossil fuel production and distribution infrastructure. Sustainability efforts and regulations, especially in Europe, are accelerating this transformation. Additionally, one of the most important trends shaping the industry is electrification. Electric trucks are becoming more prevalent as manufacturers and companies invest in developing and deploying electric vehicles. Electric trucks have the potential to reduce emissions and operational costs, as well as improve efficiency and performance. Self-driving trucks are also a hot topic in the heavy commercial industry. Autonomous trucks have the potential to improve safety, reduce labour costs, and increase efficiency. Ford Trucks is testing and developing L4 Highway Pilot autonomous driving technology. The trucking industry is also increasingly digitised with GPS, telematics, and remote diagnostics technologies. These technologies can help trucking companies optimise routes, track shipments, and improve fleet management efficiency. Technological progress enables trucks to establish real-time communication with other vehicles, infrastructure, and transportation management systems, leading to enhanced efficiency and safety. As Ford Trucks, we are also leading in transforming our industry to electric, connected, and autonomous vehicles. Trucking For Logistics Companies The trucking industry is critical to logistics companies as it provides a vital link in the supply chain for the transportation of goods. With trucks, many businesses could transport their products efficiently and effectively. Trucks are essential for transporting goods over short to medium distances, which is often more cost-effective than air or rail transportation. They are also critical for the final mile delivery of goods, as they can deliver directly to customers’ homes or businesses. Digital Transformation We are adopting advanced technologies like AI and machine learning to innovate and stay competitive in the transportation industry. By leveraging these technologies, we are improving our operations, products, and services and delivering more value to our customers. We have invested in Level 4 Highway Pilot technology to automate mid-mile transportation. With the Level 4 Highway Pilot, we are now developing technologies allowing trucks to deliver goods between logistical hubs, a process known as hub-to-hub. Furthermore, using our remote vehicle TRANSPORTATION LNME A TRUCKING PHENOMENON We chatted with the Ford Trucks team to learn more about the business’s expanding efforts in the trucking sector
LOGISTICS NEWS ME | JUNE 2023 | 51 control technology, we enable operators to remotely connect to the autonomous car and take over driving in the event of an unexpected event during autonomous driving or when human supervision is required. We are also working to autonomic the movement of our vehicles within logistics bases with our autonomous back parking technology at the loading and unloading station, which brings us closer to our goal of fully autonomous driving. We are using machine learning to predict when vehicles will require maintenance or repairs, which can help reduce downtime and improve vehicle performance. Ford Trucks AI and machine learning applications help fleets to optimise their operations and to provide better service to our customers. Human Element As automation plays an increasingly important role in the trucking industry, we are taking steps to safeguard the human element and ensure that drivers remain integral to the transportation ecosystem. We are focusing on driver assistance technologies, training supports, and collaboration, and we are safeguarding the human element and ensuring that drivers remain safe, productive, and valued members of the transportation industry. Logistics Companies And Ford Trucks It is precious to develop long- term collaborations where we create value with our business partners. As Ford Trucks, our primary goal is to provide efficiency and contribution to our customers’ operations. We express our vision of “creating value with the most efficient transportation solutions” and our purpose as “the road mate who cares about customers and helps their businesses thrive.” As Ford Trucks, we have a reputation for building reliable, durable trucks that withstand heavy use and harsh conditions. This makes us a popular choice for businesses that rely on their vehicles to operate efficiently and reliably. And our extensive network of dealerships and service centres worldwide can provide logistics companies with the support they need to keep their vehicles running smoothly and increase uptime. Sustainability Our primary goal at Ford Trucks is to provide our customers with sustainable transportation solutions that use alternative propulsion technologies. Electrification, followed by hydrogen technology, is one of our top priorities. We have many promising technological talents and capabilities, and our work is progressing quickly and successfully. In addition, we support ACEA’s pledge that by 2040, all new trucks sold shall be fossil-fuel-free. We are committed to reducing our environmental impact and promoting sustainability in our operations, products, and services. Our sustainability efforts start with our vehicles and production process. In Ford Trucks, we are working to develop a range of electric trucks that emit no greenhouse gases and have lower operating costs than traditional diesel- powered trucks. We have also developed more fuel-efficient diesel engines, which can help reduce emissions and operating costs. Ecotorq engines are designed to provide better fuel economy and lower emissions. Sustainable Manufacturing is at the heart of our business. We have implemented sustainable manufacturing practices in our factories, such as reducing waste, water use, and energy consumption. We also focus on recycling and reusing materials to minimise waste and conserve resources. As a result of the audits conducted by the Zero Waste Regulation, our Eskişehir Plant received the “Zero Waste Basic Level Certificate” within the scope of effective zero waste management. We reuse water with the help of closed-cycle cooling towers. As Ford Trucks, we have started an incredible transformation journey with zero emission, connected, and autonomous technologies with the ‘Generation F movement’. This transformation movement includes technologies that serve different needs, from zero-emission vehicles to connected and autonomous vehicles. In this direction, we introduced the 100% domestic electric truck, designed and manufactured entirely in Turkiye, at the 2022 International Commercial Vehicle Fair (IAA) held in Hannover in 2022. The zero- emission, quiet, efficient new- generation truck also features connected and innovative technologies. Foresight The trucking industry is undergoing significant changes because of technological advancements, changing consumer preferences, and evolving regulatory environments. Zero Emission Vehicles are the primary trend that shaping the future of the heavy commercial industry. Battery-electric and hydrogen- fuelled trucks are becoming more prevalent as companies look to reduce emissions and improve sustainability in the transportation industry. The development of autonomous trucking technology is also expected to transform the trucking industry, reducing the need for human drivers and improving safety and efficiency. Last but not least, companies are increasingly focused on sustainability and reducing their environmental impact, driving the adoption of alternative fuels, electrification, and other sustainable practices in the industry. A TRUCKING PHENOMENON | FORD TRUCKS
52 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM ENERGY LNME T he UAE has joined global part- ners in the U.S., Japan, and South Korea to commit up to $275 million toward nuclear energy in Romania. The an- nouncement by U.S. President Joseph R. Biden at the G7 Summit in Japan is the first major atomic energy initiative to be supported under the Partnership for Accelerating Clean Energy (PACE). Support from the UAE and partners will go toward deploying a NuScale Small Modular Reactor (SMR) in Romania. UAE engagement comes through the Emirates Nuclear Energy Corporation (ENEC). It will leverage its expertise in constructing and operating light water reactors and support essential procurement, engineering, and project management. The Partnership for Accelerating Clean Energy (PACE) was launched at COP27, in Egypt, in November 2022. PACE aims to catalyze $100 billion in financing, investment, and other support to deploy 100 new gigawatts of clean energy capacity by 2035. Building on five decades of energy cooperation, the UAE and U.S. established PACE to promote projects and new technologies to accelerate the energy transition and create economic opportunities globally. Dr Al Jaber noted, “The world needs to reduce emissions by 43% by 2030 to bring the goals of the Paris Agreement within reach. The only way to do this is to work together, build partnerships across regions and with public and private sectors, and invest in transformational, game-changing initiatives. PACE reflects precisely the sort of initiatives that we hope to see come out of COP28. “This is a landmark moment for PACE. This Small Modular Reactor project will replace a coal plant and offer reliable, clean, baseload energy. It will THE DRIVING PARTNERSHIP TO COP28 U.S.-UAE Partnership for Accelerating Clean Energy (PACE) announces support for a landmark project to deploy clean nuclear energy to decarbonize the Romanian power sector.
LOGISTICS NEWS ME | JUNE 2023 | 53 THE DRIVING PARTNERSHIP TO COP28 also help to reduce emissions in heavy- emitting industrial sectors and support low-carbon, sustainable economic development. We are proud to be working with our partners to make this possible, and we are excited that this is only the beginning.” Amos Hochstein, U.S. Special Presidential Coordinator for Global Infrastructure and Energy Security, remarked that “This week’s announcement of continued support for the small modular reactor (SMR) project to be deployed in Romania is an example of the value of the U.S. Partnership for Global Infrastructure Investment (PGII) and of the U.S.-UAE Partnership for Advancing Clean Energy (PACE). I’m delighted that the first flagship deliverable of PACE underscores the U.S.-UAE shared commitment to a new generation of nuclear energy technologies to achieve net zero goals and energy security.” H.E. Mohamed Ibrahim Al Hammadi, Managing Director & CEO of the Emirates Nuclear Energy Corporation (ENEC), commented: “Decarbonizing the power sector is a critical factor for achieving Net Zero 2050, and the UAE has prioritized this through a proactive transition to clean energy sources with crucial investments in renewables and nuclear energy. In the field of peaceful nuclear power, the UAE is today a global leader in the development of large-scale new nuclear programs, with significant expertise developed through the successful delivery of the flagship Barakah Nuclear Energy Plant, and this is recognized by the fact that we are partnering today with key entities across the USA, Japan and the Republic of Korea to support the deployment of advanced peaceful nuclear energy. “ENEC will provide its unique know-how and expertise to support this crucial project with our experts to advance in the deployment of advanced nuclear technologies in Romania. This is one of the many steps ENEC takes as part of our wider ambitions of the UAE Peaceful Nuclear Energy Program to support domestic and overseas nuclear programs, develop clean molecule generation projects, and drive green investment and green premiums in nuclear energy to drive the Net Zero Economy.” He added. ENEC will harness its significant institutional knowledge and technical capabilities to offer in-kind contributions to support the deployment of the NuScale technology in Romania by sharing expertise and personnel. ENEC recently signed an MOU with NuclearElectrica in Romania to explore opportunities in advanced nuclear technologies and related development, deployment, and financing activities, demonstrating ENEC’s commitment to supporting Romania with these critical national infrastructure programs to secure its clean energy transition. As the host country for COP28, the upcoming U.N. climate conference, the UAE has made a just energy transition and access to clean energy technologies essential priorities in the fight against climate change. The UAE COP28 Presidency has called for broad and inclusive partnerships, such as PACE, to help accelerate clean energy uptake. The UAE has delivered one of the most ambitious energy transitions in modern history with vital investments in solar and the delivery of the Barakah Nuclear Energy Plant. Today, Barakah is the largest provider of clean electricity and green certificates in the UAE and the Arab world, generating 30TWh of carbon-free electricity per year from three units, with a total of 40TWh annually, with the addition of Unit 4. With Barakah, the UAE drives energy security and grid stability, along with rapidly decarbonizing the UAE’s power sector. As the host country for COP28, the upcoming U.N. climate conference, the UAE has made a just energy transition and access to clean energy technologies essential priorities in the fight against climate change. The UAE COP28 Presidency has called for broad and inclusive partnerships, such as PACE, to help accelerate clean energy uptake. Dr Sultan Al Jaber, the UAE COP28 President-Designate, has stressed that the world needs to triple renewable energy by 2030 and boost investment in hydrogen and industrial decarbonization to achieve the goals of the Paris Agreement. COP28 will see the conclusion of the Global Stocktake on the Paris Agreement, offering a mandated review of progress on implementation. The COP28 President-Designate has been clear that the UAE will call for a robust plan of action to respond to the Stocktake and to reignite momentum on each of the pillars of the Paris Agreement: mitigation, adaptation, loss and damage, and finance. Since January, the COP28 leadership team has been on a global listening tour, engaging with stakeholders from civil society to business leaders. Dr Al Jaber, speaking to both energy executives in Houston and climate leaders in Berlin, was clear: the world needs to go further and go faster. The COP President- Designate stressed the urgency of unlocking resources, ensuring access to climate finance, and investing in proven and new technologies to accelerate the path to net zero. The Barakah plant has four units, of which three are commercially operating, with the fourth set to join the operating fleet soon and will generate 25% of the UAE’s electricity while preventing the release of 22.4m tons of carbon emissions annually. The plant is the largest source of clean electricity in the UAE and the wider Arab region, generating electricity equal to billions of dollars of natural gas each year, which can be diverted to higher value uses. It develops over 80% of the clean electricity for the Abu Dhabi Clean Electricity Certification Program annually, enabling companies such as ADNOC, EGA, and others to produce greener products, demonstrating nuclear energy’s impact on decarbonizing hard-to-abate sectors. ENEC is now entirely focused on operating its plants to the highest standards of nuclear excellence while also using its leading position as a successful nuclear build to drive significant value from its expertise in nuclear energy to identify opportunities in local and international projects and investments in civil nuclear energy and related sectors, as well as generation of clean molecules such hydrogen and ammonia, in addition, to process heat and steam to decarbonize heavy industry (which account for 10% of global emissions).
54 | LOGISTICS NEWS ME | JUNE 2023 WWW.CBNME.COM B ahrain cemented new rankings on the Logistics Per- formance Index 2023 published by World Bank as the ‘Most Improving Country in the GCC’, rank- ing 2nd in the Arab World, with the United Arab Emirates (UAE) ranking 1st. Owing to the milestone projects and initiatives delivered within the logistics sector across the past years, the Kingdom advanced 25 positions on the index and 58 positions on the ‘Timeli- ness Subindex’ to reach 2nd in MENA (10th globally) in view of the least avia- tion import dwell time on average. Moreover, Bahrain ranked 1st in the GCC in terms of minimal number of delay observations in imports and exports. The World Bank report offers a comprehensive review of the trade logistics performance, collecting data from May to October 2022 across 139 countries, using six components assessing namely efficiency of customs clearance, quality of trade & transport infrastructure, ease of arranging com- petitively priced interna- tional shipments, quality of logistics services, the ability to track consignments, and timeliness. Commenting on the occasion, Ahmed Sultan, Executive Director of Business Development of Manufacturing, Transport, and Logistics at the Bahrain Economic Development Board, said: “Bahrain’s high ranking and favour- able performance was earned in view of its robust supply chain and advanced logistics infrastructure. Bahrain serves as a gateway to the Gulf, with unparal- leled access to MENA and beyond, where companies can benefit from Free Trade Agreements covering 22 countries offering privileged, duty-free access to 30% of the world’s GDP.” “In line with the Economic Recovery Plan, this mile- stone ranking is a step in the right direction in achieving the targets outlined in the Logistics Services Sector Strategy which seeks to se- cure the Kingdom’s position among the leading global logistics services hubs.” The logistics sector is a pri- ority sector under the King- dom’s Economic Recovery Plan, which aims to position Bahrain as one of the top 20 global destinations for logis- tics services and increase the sector’s GDP contribution in 2030 to be 10%. Launched in November 2021, the key pillars under the four-year Logistics Services Sec- tor Strategy’s (2022-26) are backed by strategic initiatives, which focus on reviewing laws and regula- tions, developing infrastruc- ture facilities, enhancing policies and procedures, providing incentives for investors, and promoting investment opportunities, all while strengthening regional and international engagement. BAHRAIN LNME BAHRAIN and UAE TOP WORLD BANK’S LOGISTICS PERFORMANCE INDEX 2023 Ahmed Sultan, Executive Director of Business Development of Manufacturing, Transport, and Logistics at the Bahrain Economic Development Board
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS: