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T R U C K S Renault Trucks TX Port: Innovative Transport Solution T R U C K S Connecting and Simplifying Trade - Maersk KSA S U P P LY C H A I N Global Supply Chain Activity Surges To Pre-Pandemic Levels CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE NOVEMBER 2020 CEO, DHL Express Middle East and North Africa THE NEW ERA OF POST-COVID LOGISTICS NOUR SULIMAN
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
LOGISTICS NEWS ME | NOVEMBER 2020 | 3 THE NEW ERA OF POST-COVID LOGISTICS 20 INTERVIEW SERIAL ENTREPRENEUR Kasun Illankoon caught up with Wissam Khoury to discuss the rise of Advance Logistic Systems, how their technology is aiding the logistics industry, and how they are providing an added value for their clients. 22 Q&A CONNECTING AND SIMPLIFYING TRADE In Conversation with Mohammad Shihab, Managing Director at Maersk Saudi Arabia 30 TRADE SUPPLY CHAIN ACTIVITY ON THE RISE Global Supply Chain Activity Surges to Pre-Pandemic Levels in Q3 32 SUPPLY CHAIN STAYING RESILIENT In Conversation with Tino Bierbamer, Operations & Services Delivery Director at LogiPoint 34 OP-ED IMPORTANCE OF SUPPLY CHAIN STRATEGY in design and build projects 36 PRODUCT REVIEW INNOVATIVE TRANSPORT SOLUTION Renault Trucks T X Port by Renault Trucks for Middle East and Africa 38 ENERGY UNITED FOODS COMPANY awards new large scale solar power project to Yellow Door Energy In Conversation with Nour Suliman, CEO of DHL Express Middle East and North Africa 24 IN THIS ISSUE 34 36 Nour Suliman CEO, DHL Express MENA
Your business continuity is our top priority. Our initiatives and remote solutions have got you covered in all situations. du.ae/wegotyourb
6 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM All rights reserved © 2020. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 BUSINESS DEVELOPMENT DIRECTOR Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 DEPUTY EDITOR Kasun Illankoon kasun@bncpublishing.net EDITORIAL DESIGN Christian Harb chrisoharb@gmail.com MARKETING EXECUTIVE Aaron Sinanbam aj@bncpublishing.net I n a year of upheavals brought on by Covid-19, CEOs of some of the world’s most influential companies have identified talent risk as a significant challenge to growth. Digital transformation, wider societal contributions and company purpose figure prominently on CEO agendas today, according to a new KPMG study on the evolving priorities of business leaders in 2020. The KPMG 2020 CEO Outlook: Covid-19 special edition initially surveyed 1,300 CEOs around the world in early 2020, before the full impact of lockdowns was felt. Then, in July and August, the firm conducted a follow- up survey of 315 CEOs, to gauge how opinion had changed. In addition, 45 CEOs in the UAE participated in the survey and their findings are used to highlight significant or qualitative differences with global sentiment. The Covid-19 crisis has served to redefine leadership and reorient CEOs’ priorities. The KPMG report outlines CEO concerns – including talent and geopolitical risk. In January, CEOs ranked talent risk behind 11 other risks to growth. However, since the start of the pandemic, talent has risen to be named as the most significant, perceived threat to their business, ahead of supply chain and environmental risk. In the survey conducted after the onset of the pandemic, UAE-based CEOs indicated their sense of purpose has helped them better understand what they need to do to meet the needs of their stakeholders, finding it provides a clear framework for making effective Covid-19-related decisions. Eight in ten (79%) CEOs around the world felt a stronger emotional connection to their organization’s purpose since the crisis began. This may be because four in ten (39 percent) have had their health, or the health of one of their family, affected by Covid-19, and over half (55 percent) changed their strategic response to the pandemic as a result. DIGITAL TRANSFORMATION THE KEY TO POST-COVID-19 WORLD Kasun Illankoon Deputy Editor kasun@bncpublishing.net SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact sales@bncpublishing.net T +971 50 440 2706 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 Keep up to date with all the latest news, features and much more on our website and social media platforms. CBNME.COM CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME EDITOR’S NOTE LNME
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12 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM REGIONAL NEWS LNME A s demand for online grocery services continues to acceler- ate, Swisslog, leading provider of best-in-class warehouse automation and software has partnered with H-E-B in San Antonio, Texas to sup- port the company’s growing demand for online fulfillment. Swisslog is work- ing with H-E-B to deploy a number of automated micro-fulfillment centers to support the chain’s curbside pick-up and delivery business. The automated micro-fulfillment cent- ers will enhance H-E-B’s leadership in the industry by streamlining online fulfillment and moving it closer to the customer. It will allow the retail chain to efficiently meet the growing demand for curbside pick-up without negatively impacting customer experience in the store. With more than 2,000 installations around the globe, Swisslog has in- valuable experience in multiple flexible, scalable and modular automation tech- nologies. The company offers a range of automation solutions and software to fit grocers’ online fulfillment strate- gies, whether it’s a hub-and-spoke ar- rangement, a bolt-on store automation approach, micro-fulfillment centers or a fully automated grocery store. Swisslog recently released an e-book, “A Guide to E-Grocery Fulfillment Strategies and Technologies,” that looks at the acceler- ating the need for automated e-grocery fulfillment and examines strategic ap- proaches that can be taken and automa- tion technologies that can be utilized. H-E-B’s new micro-fulfillment cent- ers feature AutoStore empowered by Swisslog’s SynQ software and pick sta- tions. This goods-to-person solution is one of the most flexible automation solutions available for order fulfillment in E-Grocery where density, operator productivity and lead time are important factors. With more than 170 installations worldwide, Swisslog is the largest and most experienced integrator of the Auto- Store system. SWISSLOG PARTNERS WITH H-E-B TO DEPLOY AUTOMATED MICRO-FULFILLMENT CENTERS 12 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM
LOGISTICS NEWS ME | NOVEMBER 2020 | 13 REGIONAL NEWS S tatistics released by Dubai Customs have revealed that Dubai’s external trade in coffee generated AED3.5 billion in the last ten years. Dubai acts as a central logistic hub linking markets in the Middle East and Europe with coffee manufacturing countries such as Ethiopia, India, Indonesia, Uganda, and Vietnam. “We have integrated forward-looking strategies that help us foster Dubai’s leading trade position worldwide,” said Nassim Al Mehairi, Senior Manager of Statistics Department at Dubai Customs. He added that Dubai Customs offers smart services that help clients move products with efficiency. “This includes the coffee trade sector which receives full support from Dubai Multi Commodities Centre, DMCC, the first of its kind in the Middle East, which provides quality logistics support linking coffee producers with buyers.” The statistics are released to coincide with International Coffee Day which is marked annually on 1st October. Figures show that Dubai’s coffee trade in H1, 2020 grew 5 per cent to AED253 million compared to AED240 million in the corresponding period last year. The volume of coffee trade for H1, 2020 amounted to 14,000 tons. DUBAI CUSTOMS: DUBAI’S EXTERNAL COFFEE TRADE HIT AED3.5 BILLION FORD ANNOUNCES OPERATIONAL AND LEADERSHIP CHANGES F ord is continuing to streamline and transform its global business, making changes in how the company is organized and operates to deliver executional excellence that benefits customers and delivers sustained profitable growth. Jim Farley, who today succeeds Jim Hackett as Ford’s president and CEO, outlined key goals and organizational changes during a virtual town hall meeting with the company’s global team. Farley said Ford plans to move with urgency to turn around its automotive operations – improving quality, reducing costs and accelerating the restructuring of underperforming businesses. John Lawler, 54, will be the new CFO, overseeing the Finance and Ford Motor Credit organizations. Lawler will succeed Tim Stone, who has accepted a position as chief operating officer and chief financial officer at ASAPP Inc., a research-driven, artificial-intelligence Software Company. Stone will remain with Ford through Oct. 15 to ensure a smooth transition. Lawler has most recently been serving as CEO of Ford Autonomous Vehicles and vice president, Mobility Partnerships, and spent much of his 30 years at Ford in finance leadership and general management. He served as president of Ford China for nearly four years when the company achieved record in- country performance. He also served as corporate controller and CFO, Global Markets and head of worldwide strategy. Joy Falotico, 53, who has been president of Lincoln and Ford’s chief marketing officer for nearly three years, will be dedicated solely to further growing Ford’s luxury brand once a new chief marketing officer is named shortly. She will report to Kumar Galhotra, president, The Americas and International Markets.
14 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM A fter years of testing and developing hyperloop technology at their full-scale test site, DP World-backed Virgin Hyperloop unveiled today that the Hyperloop Certification Center (HCC) will be located in the U.S. state of West Virginia. “Establishing the Hyperloop Certification Center is the next milestone on our journey to making hyperloop a reality,” said Sultan bin Sulayem, Chairman of Virgin Hyperloop and Group Chairman and CEO of DP World. “This announcement brings hyperloop technology one step closer to commercialization, poised to transform the Gulf region with the rapid, sustainable, and on-demand transport of passengers and cargo.” The HCC provides an opportunity for companies, governments, regulators, and universities from around the world to forge global, groundbreaking partnerships surrounding all elements of this new transportation technology. “I’ve always been a big believer in the importance of competing against market transitions and Virgin Hyperloop is the clear leader in the future of transportation,” said John Chambers, former Executive Chairman and CEO of Cisco Systems, current founder and CEO of JC2 Ventures, and native of West Virginia. “With the development of the HCC in West Virginia, my home state, the company is one step closer to their dream of bringing their transformative technology to the Gulf region and beyond. We look forward to supporting Virgin Hyperloop in this journey and imagining what is possible for the next generation of innovation, entrepreneurism, and inclusion, together.” This announcement builds off of significant progress around the world on the regulatory front. In July 2020, the US Department of Transportation (USDOT) and the Non-Traditional and Emerging Transportation Technology (NETT) Council unveiled the guidance document on a clear regulatory framework for hyperloop in the United States. This historic announcement not only provides a pathway for hyperloop regulation and deployment in the US, but also establishes hyperloop’s eligibility for federal funding for projects. This federal momentum, combined with the advancements at the HCC, will pave the way for the certification of hyperloop systems around the world – the first step towards commercial projects, including those in Saudi Arabia, India, and the United Arab Emirates. Virgin Hyperloop aims to achieve safety certification by 2025, with commercial operations beginning in 2030. VIRGIN HYPERLOOP UNVEILS WEST VIRGINIA AS THE LOCATION FOR THE HYPERLOOP CERTIFICATION REGIONAL NEWS LNME
REGIONAL NEWS T abadul, Saudi Arabia’s leading digital solutions provider to effectively promote global trading system, in cooperation with Saudi Ports Authority, “Mawani”, today announced the launch of the first phase of the “Truck Management System” in Jeddah Islamic Port, a step aimed at raising the operational efficiency of the port and in line with the protective measures taken by the Kingdom to limit the spread of COVID-19. The Truck Management System contributes to organizing and managing the capacity of various ports, using the latest technologies to book appointments, monitor and manage truck movements, and electronically connect all the concerned government agencies which inter-correlate to operate and manage this system. The System further enables exporters and importers to book appointments through FASAH platform, a single e-window for import and export in Saudi Arabia, for the pre-coordination of truck transit in the Jeddah Islamic Port in order to organize the movement of these trucks, reduce the crowded routes to the port, speed up the procedures of customs clearance, reduce the overcrowding and waiting time at docks, as well as assist in the truck flow movement and raising work efficiency. HE Eng. Saad Abdulaziz Alkhalb, President of Saudi Ports Authority (Mawani), commented: “We are working on a set plan to expand the Truck Management System project to include all ports of the Kingdom. After the project was successfully implemented in King Abdulaziz Port Dammam, King Fahd Causeway in Bahrain, and Al Bathaa Port with the UAE, we are excited to announce the first phase of Truck Management System in Jeddah Islamic Port, where the system will serve to reduce time and effort by speeding up the customs clearance procedures for trucks and electronically organize their operation before they arrive at the relevant port of export, as an optional procedure for the exporting party.” MAWANI AND TABADUL LAUNCH TRUCK MANAGEMENT SYSTEM IN JEDDAH ISLAMIC PORT “We are working on a set plan to expand the Truck Management System project to include all ports of the Kingdom. After the project was successfully implemented in King Abdulaziz Port Dammam, King Fahd Causeway in Bahrain, and Al Bathaa Port with the UAE”
16 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM W hen Emirates SkyCargo’s first freighter flight took off from Guadalajara, Mexico, on the 2nd of October, the cargo hold contained several tonnes of avocadoes and other vegetables grown and harvested in Mexico and destined for supermarket shelves in Europe and the Middle East. In Kenya, Emirates’ 10 weekly flights in October 2020 from Nairobi airport transport, among other commodities, fresh fruits and vegetables such as green beans, pineapples, mangoes and avocadoes. The produce arrives in Dubai and then gets distributed to other regional markets in the Middle East and onwards to Europe. Emirates’ flights taking off from Australia and New Zealand carry meat and a range of fruits including grapes and watermelons heading towards international markets. Coconuts and jackfruit from Thailand, mangoes from India, sweet potatoes from Egypt, blueberries from the UK, cheese from France and Italy, salmon from Norway, cherries from Chile, seafood from Pakistan, bakery products from the Netherlands and tropical fruits from Vietnam are just a limited selection of the food items that travel every day on Emirates’ flights across its global network of more than 130 destinations across six continents. Consumers across the world have integrated international ingredients and produce into their daily diets for taste and nutritional reasons. Members of international diaspora also look for comfort food offerings from their home countries in supermarket shelves. With Emirates SkyCargo’s global network and flight schedule, food items from diverse origins retain their freshness as they are rapidly transported to their final destinations and the dining tables of consumers. The growth of export markets over the last decade has also provided a boost to farming communities and agriculture in the various production markets. Emirates SkyCargo’s flights provide a quick and direct connection for farmers and exporters of food items to their international end customers, thereby supporting their livelihoods and the local economy. EMIRATES SKYCARGO MAINTAINS SUPPLY CHAINS FOR FOOD AND OTHER PERISHABLES DURING COVID-19 REGIONAL NEWS LNME
T radeling, the hyper- growing eMarketplace focused on business-to- business (B2B) transactions in the Middle East and North Africa (MENA) region, brings another innovative and value-added service for the business community through simple, effective and cost- competitive freight booking and management. Marking a regional first, Tradeling has launched Tradeling Smart Freight, augmenting B2B eCom- merce with real-time freight procurement via Freightos. com, the world’s largest digi- tal freight marketplace. With Tradeling Smart Freight, powered by Freightos.com’s Freight-as-a-Service, busi- nesses can benefit from online, real-time access to compare, book and man- age their air, ocean and land freight services whether they are active on the Tradeling platform or not. The partner- ship initially opens up one the world’s biggest manufac- turing hubs – China. Dr. Mohammed Al Zarooni, Director General of Dubai Airport Freezone Authority, said: “Tradeling continues to strengthen Dubai’s position as a global trade hub while driving more value for MENA businesses. SMEs, which are one of the main pillars of our economy, will stand to ben- efit from Tradeling’s partner- ship with Freightos. It means more small-to-medium-sized enterprises can access goods and services in other parts of the world to better serve their customers. I applaud Tradeling’s constant drive to add value and highlight the strength of the UAE’s posi- tion as a leader in trade and commerce.” Through this collabora- tion, businesses can conduct seamless trade with traders and enterprises in China. Tradeling Smart Freight gives customers the power to easily compare live freight quotes, book, manage and track the shipment, and then communicate with the ven- dor in one integrated plat- form. They will also be able to purchase cargo insurance as an optional extra and opt for customs clearance and door-to-door delivery. Three fundamental chal- lenges faced in logistics are resolved with the new Trade- ling Smart Freight service: concerns in searching and selecting the right shipping method; obtaining freight rates on time; and not know- ing where the shipments are and when they are to arrive. Muhammad Chbib, CEO, Tradeling, said: “Through our partnership with Freigh- tos.com we have created an online freight booking ecosystem within our digital platform. It is a powerful ex- ample of how we are trans- forming B2B e-commerce in the region. No company in the region has marked such a strong digital integration of cargo as we now do. This brings an innovative, busi- ness-critical digital transfor- mation as logistics is at the heart of trading. Ruthie Amaru, CEO, Freightos.com, said: “As the world’s pioneering on- line freight platform, we are proud to partner with Tradeling to make global trade easier for businesses worldwide. By integrating our Freight-as-a-Service ca- pabilities with Tradeling, we can bring our customer-cen- tric shipment booking and management capabilities across our network of logis- tics providers in key markets to the business community in the MENA region, ensuring faster, smoother and com- petitive freight procurement services.” TRADELING MAKES FREIGHT BOOKING SIMPLE, CONVENIENT AND COST-EFFECTIVE WITH EXCLUSIVE FREIGHTOS.COM PARTNERSHIP REGIONAL NEWS
18 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM A lstom has appointed Mama Sougoufara as Managing Director for its Middle East Cluster. Mama was previously the Vice President for the System and Infrastructure for Africa, Middle East and Central Asia (AMECA) as well as the Managing Director of Alstom’s Near East Cluster Mama Sougoufara joined Alstom in 2008 and held various manage- ment roles in Alstom Transport. He worked in the Departments of Rolling Stock Engineering and served in several global sites such as La Rochelle and Reichshoffen in France, Savigliano in Italy, Lapa in Brazil, and TrTrans JV in Russia. In 2015, after three years in Alstom Thermal Power as Sector Quality Vice President, Mama returned to Alstom Transport in the AMECA region as the System and Infrastructure Engineering Director. “With his extensive global expertise in engineering, innova- tion and management, Mama Sougoufara will continue to be an invaluable addition to our team in the AMECA region, as we are expanding our geographical presence and industrial footprint in the region. Mama has played a pivotal role in the execution and delivery of many significant mobility projects in the Middle East including Dubai Metro Route 2020, Riyadh Metro among many others. I look forward to working closely with him to support the region’s innovative and sustaina- ble mobility needs”, says Müslüm YAKISAN, Senior Vice President for the AMECA region. “This is an exciting time for in- novative and smart mobility, and I am thrilled to lead the Alstom team in the Middle East towards further growth and innovation. With our expanding presence and footprint in the region, and the execution and delivery of our prestigious projects in the GCC, Saudi Arabia, and Turkey, Alstom in the Middle East is well placed to accompany our customers in their transportation and mobility development”, says Mama Sou- goufara, Managing Director of Alstom Middle East REGIONAL NEWS LNME ALSTOM APPOINTS MAMA SOUGOUFARA AS MANAGING DIRECTOR IN MIDDLE EAST CLUSTER
LOGISTICS NEWS ME | NOVEMBER 2020 | 19 A Smart Move For New Possibilities New Quester’s flexibility makes it suitable across a variety of applications and segments such as general cargo, long haul and construction. And now, ESCOTs’ added power and performance in New Quester means assignments can be carried out with increased fuel and driver efficiency. Optimized specifications such as reduced tare weight allow you to carry more. And with the introduction of smart new connected features such as telematics, you can stay on top of your tough daily schedule. A smart move for your business
20 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM INTERVIEW LNME W issam Khoury is involved in leading installations worldwide for Automated Warehouses and Air Cargo Handling Systems. Wissam is recognized amongst the Logistics Industry experts for the performance in Engineer- ing Excellency and successful handover of Projects. Ever since Advanced Logistic Systems’ inception in the recent decades of dynamic growth Advanced Logistic Systems has built a reputation as a leader in the Material Han- dling Solutions, initially from 1996, when the company was originally founded in Germany. Advanced Logistic Systems established a worldwide pres- ence and a reliable network of partners, suppliers, and clients around the globe. With the commitment to perfection in Engineering and Project Management, ALS provides Bespoke Solutions for the Lo- gistics Industry in Europe, the Middle East, and Asia. “I took charge of Advance Logistic Systems and estab- lished two offices in Dubai and at the same time I established an office in China, Slovenia, and two in Germany and finally one in Portugal,” said Wissam. Advanced Logistic Systems spotlights industrial automa- tion with a specific focus on innovation, customization, and the required clients’ long-term perspectives. Forecasting the demand and potential custom- ers’ growth, ALS conducts an in-depth study to analyze, predict, and recognize the mo- ment as an opportunity for fundamental change such as automation. Wissam explained: “This calls for the focus of the structured optimization of manpower, ex- isting facilities and technologi- cal components which is an es- sence of ALS business strategy. We stand for gradual projects upgrades, building, establish- ing and specifically tailoring the plan along with the clients’ business expansions needs. Our operations are provided in full accord and definitive agree- ment with all international standards to ensure consistency in requirements and profes- sionalism worldwide.” Projects Wissam on Advance Logistic Systems latest projects: “Our latest project is the automated warehouse for pharmaceuti- cal manufacturer in KSA, Al Dawaa, services and consultan- cies for the Logistics Industry Worldwide, automated car park system for a government- owned project in Dubai, and multiple projects for Car Park Systems in the UAE.” While we’ve had a good amount of business here in the UAE, we do see a lot of prom- ise in Saudi Arabia, and we will be announcing our upcom- ing projects over there soon. This is a market that we can- not ignore, and we have been establishing ourselves as a key player in Saudi Arabia.” Technology Under Advance Logistic Sys- tems, they cater to different sectors in the logistics industry. Let’s take a look at a few of these sectors: SERIAL ENTREPRENEUR Kasun Illankoon caught up with Wissam Khoury to discuss the rise of Advance Logistic Systems, how their technology is aiding the logistics industry, and how they are providing an added value for their clients. Mohammad Shihab, Managing Director, Maersk Saudi Arabia Wissam Khoury, Managing Partner, ALS Logistic Solutions
LOGISTICS NEWS ME | NOVEMBER 2020 | 21 > Warehouse Intralogistics: Automation a priori is associated with warehouse operational efficiency; howev- er, the fundamental principle of any auto- mation to be applied is evaluating overall logistics and intralogistics functionality. With open borders and global economic developments, business is always chang- ing and looking for innovative solutions to stay up-to-date and competitive in the market. Warehouse automation with its sophisticated technologies such as ASRS, variety of conveying and lifting systems, transfer vehicles, and innovative IT and PLC solutions is one of the attributes of the successfully operating distribution & production centers. Fast goods exchange between and in- tercountry, trade cooperation and agree- ments require an immediate response from warehouse facilities to serve the world at the maximum speed. The industry reports and research show a significant amount of qualitative analy- sis on general automated warehouses and its benefits. To automate or not to auto- mate is not a question anymore. The lo- gistics leaders are looking not only for the technological improvement that will gain warehouse optimization and the maxi- mum efficiency but also for the long-term perspectives with the help of advanced technology implementation. > Car Park Systems: When cities’ growth speed is increasing dramatically on a yearly basis with a tremendous number of cars in use, there is no other option but to stack cars verti- cally (Sky-parking). Managing material handling projects worldwide, Advanced Logistic Systems offers a vast range of car park systems. Whether for a villa, office building, resi- dential compound, or public areas, with various technological supplies, ALS cov- ers the clients’ needs of parking solutions by saving space and ensuring important safety measures for individuals and ex- pensive cars. Safe, secure, efficient, and modern sys- tems provide exclusivity to any construc- tion project sorting out the major traffic choke points in busy city corridors, iden- tifying the absence of adequate parking slots. Designed to minimize the area and volume required for parking cars, similar to multi-story parking, automated car park systems stack the cars vertically to maximize the number of parking spaces while minimizing land usage for its instal- lation. > Pharma Automation The innovative warehouse automation so- lutions assist pharmaceutical warehouses in achieving the highest storage standards and handling sensitive materials and dangerous goods. When the importance of temperature control and operational functionality requires utmost accuracy, only automation can confidently grant security and absence of risks. Automation and digitization are essen- tial in the pharmaceutical industry, prov- ing its efficiency and expanding business opportunities for pharmaceutical manu- facturers and its distributors. “We are giving an added value with our automated system where the machines allow clients to manage their storages, retrievals, and to monitor the picking for the operators. All of our systems are IT-controlled and it helps facilitate the process of storage and retrieval. It reduces the size of the plot and eliminates the er- rors, reduces waste, and damages to the product because the machines are precise and accurate in its operations which en- hances your logistics handling,” Wissam concluded. SERIAL ENTREPRENEUR | IWISSAM KHOURY DISCUSSES THE RISE OF ADVANCE LOGISTIC SYSTEMS When cities’ growth speed is increasing dramatically on a yearly basis with a tremendous number of cars in use, there is no other option but to stack cars vertically.
22 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM Q&A LNME Tell us what was Maersk KSA’s 2020 Goals and Objectives? Maersk Saudi Arabia commits to serve the business community in the Kingdom of Saudi Arabia by connecting and sim- plifying their supply chains and enabling global trade. We are committed to main- taining competitive and efficient supply routes to the key export markets and key import markets. We are serving our customers with compelling solutions that cover end-to-end logistics across ocean transportation and key landside logistics services through our offerings. This in- cludes warehousing, hub solutions, local transportation, customs brokerage, and insurance services tailored to our custom- ers’ needs. How were Maersk KSA’s operations affected as a result of the pandemic? The priorities of the Maersk leadership through the crisis has been clearly defined within 3 pillars: > To ensure safety of staff and their fami- lies during these testing times. > Maintaining the supply chain and logis- tics/transport needs of our customers base with minimal interruption. > Ensuring we contribute within the Saudi civil society to alleviating the difficulties on the community. In totality, the Maersk Saudi Arabia staff members have worked tirelessly to ensure we met these goals. While we are still in the middle of the sit- uation, we can look back at the last seven months with an overall positive outlook on achieving those goals. It has been far from easy however, the team dedication and commitment have made all the dif- ference. Can you tell us if some of the steps taken by Maersk KSA that helped them navigate through this pan- demic? First and foremost, we needed to ensure we worked closely with our key stake- holders – our customers, the Saudi Port Authority, and the Saudi Customs – dur- ing the pandemic to amend some of the processes. This was especially necessary for the physical handoff of essential ship- ping documents that had to be processed as much as possible with higher degrees of automation for the safety of everyone involved. The collaboration in this regard with each stakeholder has been excellent. Additionally, as a significant logistics provider for essential commodities such as foodstuff and medical supplies, we worked closely with our customers to provide alternative transportation solu- tions to ensure uninterrupted supply of these essential goods during the pan- demic. CONNECTING AND SIMPLIFYING TRADE In Conversation with Mohammad Shihab, Managing Director at Maersk Saudi Arabia Mohammad Shihab, Managing Director, Maersk Saudi Arabia WE ARE SERVING OUR CUSTOMERS WITH COMPELLING SOLUTIONS THAT COVER END-TO-END LOGISTICS ACROSS OCEAN TRANSPORTATION AND KEY LANDSIDE LOGISTICS SERVICES THROUGH OUR OFFERINGS.
LOGISTICS NEWS ME | NOVEMBER 2020 | 23 The GCC, in general, has an excellent logistics infrastructure. Can you tell us how KSA’s infrastructure (ports, transportation, freight, etc..) helped companies like yours to operate in such an unprecedented year? The core logistics infrastructure, such as roads, ports, and terminals in the King- dom is very high when benchmarked worldwide. To add to that, the agility and collaboration from all stakeholders in en- suring flexibility and re-visiting processes that required direct handoffs has been an essential enabler to success during this period. The different Saudi Government entities and our customers must be ap- plauded for their relentless efforts during the pandemic to ensure they aligned with us in applying quick, practical and prag- matic solutions. Can you tell us what the unique sell- ing point of Maersk KSA is? One strength that has been a differentia- tor for us throughout the pandemic peri- od has been the agility that we have been able to demonstrate to achieve customer- centricity. The skill came in various forms – be it adjusting our ocean network or tailoring and executing unique solutions for our customers. We have managed to leverage our scale and showcased the abil- ity to provide a solution fitting our cus- tomers’ specific needs. We have thought out of the box to innovate products and services that supported our customers’ requirements during the testing times. These solutions revolved around speeding up their supply chains for essential com- modities or slowing them down in non- essential commodities that were in lower demand during this period. What are the plans for 2021? 2021 will be a defining year for Maersk Saudi Arabia, and one where our custom- ers will be able to enjoy exciting additions to our existing suite of products and services and tailored solutions. We are working on several major solutions for our Petrochemical Customers and FMCG customers in the logistics sector. Can you tell us about your leadership qualities and what steps you took to ensure that Maersk KSA could navi- gate through this pandemic? Right at the start of the pandemic, we set ourselves three priorities – we must ensure our employees’ safety, serve our customers in the best way possible, and help the societies fight the virus. We es- tablished a workgroup encompassing all our geographic and functional leads that met daily (lots of virtual meetings!) to en- sure a no-detail-too-small approach to the situation, covering all topics ranging from the wellbeing of our staff, to the flow of operations, to business growth. I am very proud of the great results the Saudi Lead- ership Team delivered during this period. What latest technology is Maersk KSA implementing to make your op- erations efficient and productive? Maersk is a leading investor and innova- tor in the logistics business’s digital side and we have already delivered various key innovations so far. To name a few, we have gone to market with a very innova- tive shipping solution, Maersk Spot, that establishes a clearer two-way commit- ment with customers on space and equip- ment availability on our ocean services – something that has been well-received by our customers. We are including more and more logistics services on this prod- uct and continuing to enhance it. Our website Maersk.com is now a one-stop platform for our customers to get quotes, book consignments, track their cargo and so on from the convenience of their homes or offices. We are also the leading logistics company worldwide in adopting blockchain technology, with significant milestones worldwide coming out of the Kingdom. CONNECTING AND SIMPLIFYING TRADE | IN CONVERSATION WITH MOHAMMAD SHIHAB The different Saudi Government entities and our customers must be applauded for their relentless efforts during the pandemic to ensure they aligned with us in applying quick, practical and pragmatic solutions.
“CONSUMER DEMAND PATTERNS HAVE CHANGED; FINANCIAL CONSTRAINTS AND SOCIAL SHIFTS HAVE CAUSED MANY CONSUMERS TO RE- EVALUATE THEIR PRIORITIES, IN TERMS OF SPENDING AND SHOPPING HABITS, ALL FACTORS WHICH ARE RESHAPING THE LOGISTICS INDUSTRY.” COVER STORY Nour Suliman CEO, DHL Express MENA LNME 24 | LOGISTICS NEWS ME | NOVEMBER 2020
LOGISTICS NEWS ME | NOVEMBER 2020 | 25 THE NEW ERA OF POST-COVID LOGISTICS | NOUR SULIMAN IMAGES © DHL EXPRESS MENA has proven to be a challenging year on multiple fronts, establishing itself as a historical benchmark for years to come. The pandemic brought about unprecedent- ed challenges to governments, econo- mies, healthcare systems, businesses, and individuals, forcing logistics operators to scramble to keep essential supplies moving in light of transport disruptions, movement restrictions and volatility in supply and demand. With dramatic changes taking place across the world, businesses have been forced to take significant steps towards adopting newer and safer technologies, while shifting their business models to meet the dramatic change in consumer behaviour. “Consumer demand patterns have changed; financial constraints and social shifts have caused many con- sumers to re-evaluate their priorities, in terms of spending and shopping habits, all factors which are reshap- ing the logistics industry,” explains Suliman. Almost every sector has been im- pacted, albeit to different degrees. Air travel and tourism sectors have been the hardest hit globally, as well as re- tail, especially the luxury goods sector, has suffered, whilst others, considered more of a necessity during a ‘stuck at home’ situation, have thrived. “Many industries have been forced to prepare for lasting changes and re- evaluate how to do business, because how they act or adapt now will have huge ramifications on their future,” says Suliman. Across the logistics sec- tor, companies have had to embrace innovative solutions to help overcome difficulties and maintain operations in the most challenging circumstances. DHL’s business too was affected by the disruption to global supply chains, tight airfreight capacity and declines in world trade and business; but the company has adapted quickly to meet world-wide demand for service con- tinuity. “Although initially we had to navigate through some challenges such as constrained cargo capacity, broken links and delays, eventually it came to balance out as we re-purposed our fleet capacities and re-engineered our operations to accommodate the shift- ing trade and consumers patterns,” explains Suliman. One of the most significant outcomes of the pandemic on the logistics indus- try has been a global surge in eCom- merce activities, causing a number of businesses around the world to rethink the way they operate to stay afloat. “Traditional bricks-and-mortar brands are experimenting and restructuring product offerings to meet new con- sumer demands,” says Nour, “whether that means going digital and selling online, exploring the direct-to-consum- er (D2C) model, or working creatively to take an experience-based business into people’s homes.” NOUR SULIMAN CEO, DHL Express MENA THE NEW ERA OF POST-COVID LOGISTICS 2020 >>>
26 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM The tremendous changes in the eCom- merce landscape have made logistics companies crucial to the survival of businesses across the globe. “COVID-19 has caused a mass switch to online shopping, which is a golden opportunity for many business- es – but they need to start re-thinking their business model to meet the new norm and make sure their clients stay in the long term. In this regard logistics has become a necessity since these customers will be more likely to stay if their shipping needs are being met,” says Suliman. According to a report by manage- ment consultancy Kearney Middle East, worldwide retail eCommerce sales will reach a new high and are ex- pected to hit $50 billion by 2025. This shows a future of steady upward trend with the projected growth in GCC eCommerce relying heavily on logistics infrastructure in addition to crucial factors such as flexibility in manpower models and centrally governed policies. In the Middle East, and especially the GCC, DHL Express saw a steep growth in cross-border eCommerce volumes, led by Kuwait which topped 246% and followed by KSA at 176% and Oman at 166%. Interestingly, the fastest moving product categories turned out to be hygiene, self-care, fitness apparel, office equipment and food items. One area that did witness the big- gest impact however, was the health care sector as immediate demand for critical supplies saw demand outstrip supply initially to China and then from COVER STORY “COVID-19 HAS CAUSED A MASS SWITCH TO ONLINE SHOPPING, WHICH IS A GOLDEN OPPORTUNITY FOR MANY BUSINESSES – BUT THEY NEED TO START RE-THINKING THEIR BUSINESS MODEL TO MEET THE NEW NORM AND MAKE SURE THEIR CLIENTS STAY IN THE LONG TERM.” Nour Suliman CEO, DHL Express MENA
LOGISTICS NEWS ME | NOVEMBER 2020 | 27 China to the rest of the world. The timely provision of medical products deemed critical to frontline workers and medical facilities was disrupted as a result of lockdowns and air travel ban. What became very clear was how disturbances to supply chains can cause major problems to the supply of critical products and how there is still work to be done to improve the medical-products supply chain. “Vaccines are currently in develop- ment and will soon hit the market, but their ability to end this pandemic depends on an effective supply chain that can connect diverse production locations to the public. This pandemic will eventually be behind us, but we need to be prepared when the next health crisis comes around. Logistics experts need to do their part to help improve these systems and ensure medical supplies always find their way to wherever they are needed,” explains Suliman. “The COVID-19 pandemic has certainly given us and many other companies a reason to pause, challeng- ing us to think outside of the proverbi- al box into developing quick solutions geared towards maintaining world- wide business continuity. The lessons learned from this global phenomenon have been invaluable in setting a prec- edent for emergency operations within our industry as well as others,” adds Suliman. Forming partnerships with logistics service providers who can complement existing network-related capabilities will be a strategic necessity in securing life-saving products and supplies during any crisis. The pandemic brought to the fore- front the essential role of the logistics industry in keeping supply chains operating around the globe. It seems inevitable that supply chains will be different not only in the short term but well into the foreseeable future. “One thing is for sure, there are a lot of les- sons to be learnt from this pandemic and as businesses are coming to terms with these lessons, the desire for more resilient supply chains is increasing,” states Suliman. With the pandemic acting as a strong catalyst for the exponential growth of eCommerce, the remarkable change in global shopping habits presents new opportunities across many industries. “This is a crucial time to prepare for the post-Corona phase to make sure we are ready and able to capitalise on the opportunities that arise. With more people now working from home, we need to be closer to where our custom- ers are, to be present in target loca- tions which previously may have had less demand. But we must be cautious; we cannot jump into the new normal immediately, we first have to transition the pre-new normal phase,” explains Suliman. Since the pandemic struck, DHL Express has relied more on its own air fleet to support the company’s activities, and despite the loss in com- mercial belly space, they have capital- ized on their dedicated fleet of more than 250 freighter aircraft to satisfy the high demand, whilst also shifting some non-time-sensitive shipments to ocean or rail. “We have diligently worked to fortify our MENA operations by adding two Boeing 767-300Fs to the region’s Aviation Fleet to boost load capacity, increasing our air load by over 25%. The increased investment in expand- ing our air network supports DHL’s strategy of strengthening trade links in priority markets such as KSA, UAE and Egypt,” said Suliman. And just as DHL is continually focused on improving external operations, internally, the safety of DHL Express employees has remained a top prior- ity. The company is re-looking at its ‘work from home policy’ and manag- ing social /employee distancing whilst taking all necessary safety precautions to ensure a healthy environment as the company resumes in-house operations. Forming partnerships with logistics service providers who can complement existing network- related capabilities will be a strategic necessity in securing life-saving products and supplies during any crisis. “WE HAVE DILIGENTLY WORKED TO FORTIFY OUR MENA OPERATIONS BY ADDING TWO BOEING 767- 300FS TO THE REGION’S AVIATION FLEET TO BOOST LOAD CAPACITY, INCREASING OUR AIR LOAD BY OVER 25%. THE INCREASED INVESTMENT IN EXPANDING OUR AIR NETWORK SUPPORTS DHL’S STRATEGY OF STRENGTHENING TRADE LINKS IN PRIORITY MARKETS SUCH AS KSA, UAE AND EGYPT.” THE NEW ERA OF POST-COVID LOGISTICS | NOUR SULIMAN >>>
28 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM “In our industry, which is highly dependent on human interaction, our main focus has been to ensure the safety and well-being of our people to sustain smooth running of our opera- tions. We put the health of our staff on the same priority list as business conti- nuity because their mental and physi- cal state was critical to us maintaining optimum levels of service. We were transparent and proactive in ensuring all staff stay safe, informed, and well prepared to tackle any scenario,” said Suliman. The logistics giant’s HR strategy has consistently prioritized a happy, healthy workplace where people are eager to come to work every day. “We definitely had to make adjust- ments to our business processes to reduce risk of staff exposure and miti- gate possible effects, but I have to say that our teams have done an outstand- ing job staying close to our clients, communicating regularly, and provid- ing necessary advisory and support to facilitate their logistics needs. This is a reflection of our culture - DHL places tremendous importance on maintain- ing a harmonious work culture that is powered by mutual trust and highly motivated people. It is this loyalty to DHL that has won us the first place position as best company to work for in the Middle East for 2020 accolade, by leading global workplace culture authority Great Place to Work® Mid- dle East, an achievement we are most definitely proud of,” says Suliman. With the pandemic effectively chang- ing the future of work and accelerating digital and automation agendas, and as more and more organizations and employees continue to rely heavily on digital methods of operation, the changed landscape ahead shows that consumer trends have taken a rapid turn towards more automated prod- ucts and services. Artificial Intelligence, Robotics, Quantum Computing, Sustainability & Global volatility are some areas that the DHL Logistics Trend Radar predicts will help shape logistics in the future. “The world is witnessing a dynamic growth in industries heavily reliant on technological advancements, such as data analytics, AI, robotics, IoT tech- nologies, Cloud services, and API’s, signaling a new normal for logistics by pushing the industry to keep up with the technological demands in the field, while still managing expecta- tions of the current climate,” says Suliman. Breakthroughs in Quantum Com- puting, Blockchain, and Space Logis- tics indicate new niches for logistics providers to solve large-scale prob- lems and create new services to cater to evolving needs. While the COVID-19 pandemic may not be over yet, we are seeing gradual stability with airports and borders slowly opening up, and economies resuming business activity. DHL Express is taking into consideration the shift in the B2C landscape and the new wave of users, and aligning its investments to match future trends. “The logistics industry, similar to the rest of the world, finds itself in the midst of a transformation with many trends here to stay while new ones constantly rising. It is important to keep our fingers on the pulse of the new wave of logistics to capitalize on the tremendous opportunities that are in store. We at DHL will definitely not lose sight of our expansion and invest- ment strategy to better serve our cus- tomers and ensure speedy, seamless delivery; the customer experience will continue to be our driver with a focus on digitization, increased utilization of our air network, capacity build- ing and innovative last mile delivery methods to better reach them on time, every time,” concludes Suliman. With the pandemic acting as a strong catalyst for the exponential growth of eCommerce, the remarkable change in global shopping habits presents new opportunities across many industries. COVER STORY “THE LOGISTICS INDUSTRY, SIMILAR TO THE REST OF THE WORLD, FINDS ITSELF IN THE MIDST OF A TRANSFORMATION WITH MANY TRENDS HERE TO STAY WHILE NEW ONES CONSTANTLY RISING. IT IS IMPORTANT TO KEEP OUR FINGERS ON THE PULSE OF THE NEW WAVE OF LOGISTICS TO CAPITALIZE ON THE TREMENDOUS OPPORTUNITIES THAT ARE IN STORE.”
LOGISTICS NEWS ME | NOVEMBER 2020 | 29 Scania Touring HD range a privilege to own The Scania Touring is a coach designed to meet your needs for occasional service and regular service over long distances. You will enjoy full support from a single point of contact since all parts, maintenance and repairs are backed by Scania’s comprehensive global service work. The possibility of fast deliveries gives your business plenty of flexibility. If you’re focused on good total operating economy, this coach is destined to be a profit source for years to come.
30 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM T he number of purchase or- ders and invoices exchanged across global supply chains rose by 15% in Q3 after falling by a similar margin in Q2, the latest Index of Global Trade Health from Tradeshift can reveal. The report, which is based on analysis of transaction data flowing between buyers and suppliers across Tradeshift’s network, suggests activ- ity levels in major supply chain hubs in the West and China are beginning to stabilize after a tumultuous period. Transactions in the Eurozone grew by the greatest margin, up 26% in Q3 as supply chains in the region added further momentum to the recovery Tradeshift saw towards the end of Q2. Trade activity between buyers and suppliers in the US also exceeded the global average, growing by 17% in Q3. In the UK, where trade activity levels had dropped by 23% in Q2, the bounceback in transaction volumes during Q3 was much weaker. After a relatively strong July, a significant drop off in activity during August and September meant that UK supply chain activity finished the quarter just 6.1% up on Q2. ACTIVITY SLOWS AS PENT-UP DEMAND RECEDES Other regions also showed signs of a similar slowdown, suggesting the release of pent-up demand after lock- down restrictions eased in the West may have fuelled the early burst of activity across supply chains in July. Transactions on the Tradeshift plat- form surged 24% in July. But month on month activity subsequently fell by 12% in August, before recovering slightly in September. In China, activ- ity levels across the Tradeshift network looked on course to reach a level not seen since Q4 2019 in July. By Septem- TRADE LNME SUPPLY CHAIN ACTIVITY ON THE RISE Global Supply Chain Activity Surges To Pre-Pandemic Levels In Q3, But Cash Crunch Leaves Suppliers Vulnerable
LOGISTICS NEWS ME | NOVEMBER 2020 | 31 SUPPLY CHAIN ACTIVITY ON THE RISE | GLOBAL SUPPLY CHAIN ACTIVITY SURGES TO PRE-PANDEMIC LEVELS IN Q3 ber however, total transactions across the region’s supply chains had fallen by more than 18%. “Global lockdown restrictions created a pressure cooker environment for sup- ply chains,” said Christian Lanng, CEO of Tradeshift. “When the restrictions began to ease, we saw orders start to surge in June. This momentum contin- ued into July before tailing off rapidly as supply lines normalised. Order volumes on our platform are comfortably ahead of where they were in Q2, but supply chains will need to hit a higher gear again in Q4 before we can to point to a sustainable recovery. The next few months will be critical.” LIQUIDITY CRUNCH PUTTING SUPPLIER LIVELIHOODS AT RISK A 20% rise in order volumes during Q3 should provide a welcome cashflow boost to suppliers towards the end of the year. But according to Tradeshift, action may be needed before then to ad- dress the current liquidity crisis affecting suppliers. A record fall in order volumes during Q2 meant invoice settlements remained low throughout the quarter. With the average small business having just 27 days of cash in reserve, many will be coming dangerously close to run- ning out of money. “Lack of digitization in global supply chains makes it very hard to unlock the liquidity that’s owed to suppliers,” said Christian Lanng. “ So, instead of getting paid quickly, suppliers have to wait months before orders translate into cash. We should start to see some of the current liquidity pressure begin to ease in Q4. Whether or not every supplier will make it that far is another question. If ever there was a time to rip up the old playbook and start doing things differ- ently, it is now.”
32 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM SUPPLY CHAIN LNME LogiPoint’s Success The main drivers in today’s supply chain environment, amongst others, are Cost Effectiveness, Transit Times / Close to Market, and Cash Flow. With these main drivers, the service offerings of LogiPoint are tailor-made to address these main drivers and offer a significant improvement to customers’ existing supply chains. The Bonded Zone facility allows customers to “import” shipments without paying duties & taxes as well as VAT just yet. That only will come into place when these consignments are delivered into the Kingdom. That addresses the “close-to-market” requirement as well as facilitates the cash-flow improvement tremendously. In addition to these factors, the service landscape allows customers to choose between the “industrial realtor” options, allowing them to operate themselves facilities within the bonded zone, as the “operator model,” allowing the customer to choose from various integrated solutions covering all their needs. To “round off” these service landscapes, LogiPoint offers additional services such as Cross Border shipments (within the GCC countries), Value Added Services and Sea / Air and Air / Sea. The latter allows combining any mode of transportation for both in-& outbound flows of cargo. As for Value Added Services, LogiPoint offers labeling, re-packing, printing, and last-mile distribution throughout the Kingdom. The rise of LogiPoint over the past couple of years is a combination of all the above indicated mentioned factors and services offered. STAYING RESILIENT Operations & Services Delivery Director at LogiPoint In Conversation with Tino Bierbamer “TO INCREASE OUR CUSTOMER CENTRICITY AND ENHANCE OUR SERVICE OFFERINGS, LOGIPOINT HAD AN AMBITIOUS IT PROJECT, IMPLEMENTING A SINGLE ERP PLATFORM THROUGHOUT THE ORGANIZATION.”
LOGISTICS NEWS ME | NOVEMBER 2020 | 33 STAYING RESILIENT IN CONVERSATION WITH TINO BIERBAMER Operating during the COVID-19 pandemic LogiPoint’s main and first objective dur- ing the pandemic was to keep everybody as safe as possible. We have re-designed our administrative and operational office(s). We have re-designed and re- structured staff accommodation. We have implemented special teams (bubble ap- proach), including transportation, shifts, and accommodation. In summary, we are trying to limit the exposure of individuals as much as possible. At the same time, however, we also needed to make sure that we maintained our service levels and standards and make sure that we adhered to agreed KPI’s with customers. Where possible, certain functions have been moved to “work-from-home” or different locations to reduce interaction and expo- sure further. LogiPoint’s operation model was segre- gated into the following key areas: > Extend/enhance service offerings to ex- isting customers > Constantly embark on new service of- ferings driven by customers and market requirements, ultimately driven by supply chain requisites > Engage in potential customer discussions developing integrated service solutions, basically offering tailor-made solutions Based on discussions with the existing customer and the portfolio of potential and interested customers, the outlook for 2020 was very positive. Amongst others, to increase our customer centricity and enhance our service offerings, LogiPoint had an ambitious IT project, implement- ing a single ERP platform throughout the organization. Goals and Objectives during COVID-19 LogiPoint’s goals and objectives haven’t changed per say; it’s more of an adjust- ment of the present service landscape vs. changed requirements in the supply chain from our customers. Volumes in specific verticals have certainly dropped tremen- dously (Automotive for example), where- by other verticals had significant increases (Health & Pharma products, hygienic products, e-commerce business etc.). Specific service offerings, driven by the pandemic, had to be put on hold due to imposed restrictions (Cross Border, Transit, Sea/Air & Air/Sea). On the other hand, due to lower turn-around times and longer sales cycles, the need for warehousing space has increased tre- mendously. LogiPoint came out stronger because a combination of the meeting changed customer requirements, instantly allowing them to conduct their business based on a drastic change in market con- ditions. Furthermore, even during lock- down, LogiPoint operated with “special permits,” during lock-downs allowing to execute shipments the same way as pre- covid, resulting in tremendous customer satisfaction. Looking Beyond 2020 The main drivers for the years to come will be supply chain driven focus areas such as “close-to-market” and cash-flow, deferred payments. Furthermore, the trend which started already related to ver- ticals and commodities (increase/decrease) will continue for the years to come. Some of the verticals that took a big hit trig- gered by COVID 19 will take years to re- cover (Automotive, Textiles, etc.). Other verticals as Pharma / e-commercial will rise even higher vs. predictions and fore- casts established pre-COVID. Of course, certain potential and possible restrictions are driven by the pandemic that might change the picture even more. But beyond all, LogiPoint, with its customer centricity and “close-to-market” approach, will be ready for any potential change in the mar- ket. We will continue to offer integrated and flexible end-to-end supply chain solutions to our customers, contributing to Vision 2030 of making the Kingdom a Logistics Hub for decades and genera- tions to come. “LogiPoint’s goals and objectives haven’t changed per say; it’s more of an adjustment of the present service landscape vs. changed requirements in the supply chain from our customers.”
34 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM IMPORTANCE OF SUPPLY CHAIN STRATEGY IN DESIGN AND BUILD PROJECTS BY CEM KAPANCIOGLU OP-ED LNME 34 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM
LOGISTICS NEWS ME | NOVEMBER 2020 | 35 I n most projects, across industries, logistics is just an afterthought. The supply chain requirements don’t even figure in the thinking process of planners, strategists, creative think- ers and decision-makers. But in the construction, design and build world where I live together with my 200 CK Architecture Interiors colleagues, we cannot take any decision, we don’t make any plans and we don’t promise anything to our clients before we carefully and diligently consider assess the ‘how and when we’ll get there’ parameter. In essence, logistics and supply chain actually drive everything in our sector, they are the A and Z of high quality and successfully delivered projects. They are the key determining factors that can make the difference between a poorly executed project and one that is exceptional in every aspect. Because once you’ve figured out the ‘how and the when’, and put in place a solid procurement process, identified the top suppliers for a specific project and worked out every detail in regards to transportation, from the warehouse to construction site and then onto the prop- erty itself, the rest is just up to the indi- vidual contractor’s capacity and ability to deliver. In essence, a contractor’s ability to set its own high standards is directly dependent on the quality of the supply chain and the accuracy and capability of the project’s logistics provider. A contractor needs to be on top of every component of the logistics supply chain, to be able to successfully meet the needs of the project. From having the plan and ability to manage the movement of la- bour in, within and out of the site, to the transport and placement of equipment and materials and from storage solutions during downtime to fully controlling the various site facilities. Efficiency is the key word here. The more efficient your supply chain, logistics team, channels and infrastructure are, the lower your cost base would be and there- fore the quality vs cost ratio would easier tilt in the favour of your client. Proper planning plays a pivotal role in this complex equation. Before setting your supply chain and logistics infrastructure in motion, it is paramount to set in stone the client’s ex- pectations as precisely as possible during the design process. It is then when the cli- ent needs to be fully briefed on the entire process that lies ahead and in a collabora- tive way address any potential challenges that may arise during the build process. For example, there was this top of the line hob which a client told us she in- tended to install. We could have delivered it on the desired price, colour, timeline or any other supply chain-related vari- able, however, the electrical power that it needed to operate was very high and not reasonable to install only for one equip- ment. Planning and design are the most impor- tant aspects worth every minute you in- vest in this stage to ensure that the client’s expectations are captured to the tee and that all projected challenges are addressed early on. Your supply chain and logistics should then play their own, very significant role. Having the knowledge of the various available materials and latest trends is very important as is knowing where to get them from. So, having the right network of suppliers and maintain a strong per- sonal relationship with them would work miracles in terms of supply chain efficien- cies. Sourcing the right material for each project is therefore the key to overcome any supply chain-related obstacles. But even when you think you’ve fig- ured out every single supply chain detail, having secured the right material, at the right quality, the right colour, texture and price, you come across the need to fly out a specialist installer to complete the job at the right specifications and the highest of standards. And while all it would take it to book the technician and send him a return airline ticket, visa restrictions may delay the travelling plans, or even worse, a pandemic freezes all non-essential travel. Or you suddenly realise that the eleva- tors are too small to help lift a particular piece of furniture or sculpture and that no forklift is long enough to reach the 35th floor of the skyscraper. You need to find a solution and the pressure is on. Once I came across an apartment which needed specific paint on its aluminium posts. This paint has a smell and needed ventilation. However, the apartment had no windows or balcony, so we had to block the a/c vents so there wouldn’t be any problems later for the resident. We then put heavy-duty industrial vacuum at various places and made the labors work in gaps of four hours as a precautionary HSE measure. These are just a few examples to show that you can never be prepared enough, no matter how perfect your planning and design, excellent your track record and strong the experience of you and your team. The unpredictability of a project can be impacted by countless unforeseen factors and changing circumstances and the best way to shield your project, pro- tect your client’s interest and safeguard your reputation is to work hard and put in place a network of trustworthy suppli- ers and logistics partners. IMPORTANCE OF SUPPLY CHAIN STRATEGY IN DESIGN AND BUILD PROJECTS Cem Kapancioglu, Owner and founder of CK Architecture Interiors EFFICIENCY IS THE KEY WORD HERE. THE MORE EFFICIENT YOUR SUPPLY CHAIN, LOGISTICS TEAM, CHANNELS AND INFRASTRUCTURE ARE, THE LOWER YOUR COST BASE WOULD BE AND THEREFORE THE QUALITY VS COST RATIO WOULD EASIER TILT IN THE FAVOUR OF YOUR CLIENT.
36 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM F or customers operating in the Middle East, where Euro 3 legislation is in force, Renault Trucks has developed the T X- Port. This is a Renault Trucks T Euro 6 model selected, checked and then converted to Euro 3 using strict industrial processes in the Used Trucks Factory workshops. This conversion, unique in the industry, starts with dismantling the Euro 6 com- ponents, namely the silencer and AdBlue components in order to guarantee the highest level of pollution reduction in the Middle East. Operators at the Re- nault Trucks Used Trucks Factory then install the Euro 3 components and the reinforced filtration system. The soft- ware and manufacturer’s documentation are updated, allowing the vehicle to be recognised throughout the network with its new features. Renault Trucks T X-PORT is equipped with reinforced air and diesel filtration and raised suspension to carry out its mission successfully in all operating conditions. The ground clearance is increased by 30 mm at the front and 20 mm at the rear. PRODUCT REVIEW LNME TRANSPORT SOLUTION INNOVATIVE by Renault Trucks for Middle East and Africa Renault Trucks T X Port
LOGISTICS NEWS ME | NOVEMBER 2020 | 37 After conversion, the emission levels and engine performance (power and torque) are certified by UTAC, an independent international organisation. The truck undergoes the same quality process as a new vehicle. Performance and robustness make the Renault Trucks T X-PORT your partner, ready to increase your business now... and for the long term! The Euro 3-certified Renault Trucks T X-Port comes with a 12-month international manufacturer’s warranty that covers all incidents relating to the engine, gearbox and axles and is valid throughout Renault Trucks sales and service outlets in the Middle East. The T X-Port is only available from the Renault Trucks network. The T range is the Renault Trucks range for Long Haul, it meets the needs of all com- panies operating in the road haulage sector: industrial transport, controlled temperature transport, tanker transport, and livestock transport. It offers custom- ers the perfect balance between fuel savings and life on-board. Last but not least Renault Trucks has also developed a special offer with 24 months International war- ranty bundled with 24 months ser- vice contract. The Peace of Mind for our Renault Trucks customers makes them focus on their core business. INNOVATIVE TRANSPORT SOLUTION | RENAULT TRUCKS T X PORT Renault Trucks T X Port Unique factory-made and certified downgrade from Euro 6 to Euro 3 solution THE CONVERSION TO EURO 3 STARTS WITH DISMANTLING THE EURO 6 COMPONENTS, NAMELY THE SILENCER AND ADBLUE COMPONENTS, IN ORDER TO GUARANTEE THE HIGHEST LEVEL OF POLLUTION REDUCTION IN THE MIDDLE EAST.
38 | LOGISTICS NEWS ME | NOVEMBER 2020 WWW.CBNME.COM ENERGY LNME U nited Foods Company (PJSC), a UAE based market leader in the food industry, has awarded a new large scale solar power project to Yellow Door En- ergy, a UAE-based sustainable energy provider for businesses. The contract covers the establishment of a cutting- edge rooftop solar power plant to supply power for United Foods Edible Oil and Fats factory in Jebel Ali Industrial Area in Dubai, UAE. The project marks an important mile- stone in United Foods sustainability strategy, which aims to ultimately reduce carbon emissions by 1400 tonnes. To achieve this goal, the 2,000 kilowatt-peak rooftop solar plant is expected to gener- ate 3.3 million kilowatt-hours of clean energy in its first year of operation. The plant, which will cover the entire area of the factory’s roof in Jebel Ali, will include over 4,400 solar panels, and will provide almost half of the factory’s energy con- sumption needs. Commenting on this project, Fethi Khiari, CEO of United Foods Company, said: “The Solar Agreement is a true milestone in achieving our sustainability goals, in line with the UAE sustainability strategies. We are committed to building a better future for the next generations, by investing in sustainability and leading the way into an environmentally-con- scious future.” Rory McCarthy, Chief Commercial Of- ficer of Yellow Door Energy, said: “We are proud to support United Foods’ sus- tainability leadership through the devel- opment of this solar plant. We encourage businesses in the Jebel Ali Industrial Area to consider solar as a viable option to re- duce electricity costs and switch to clean energy. Yellow Door Energy is honored to contribute to DEWA’s Shams Dubai Program and the UAE Energy Strategy 2050.” United Foods has selected Yellow Door Energy to be responsible for investing in, designing, building, commissioning, oper- ating, and maintaining the solar plant for the duration of the solar agreement. The selection came after careful consideration of experience and footprint in the region, and comes in line with United Foods’ quality guidelines and goals to reduce energy costs, while maintaining focus on their core business and enjoying the ben- efits of clean energy. awards new large scale solar power project to Yellow Door Energy UNITED FOODS COMPANY “THE SOLAR AGREEMENT IS A TRUE MILESTONE IN ACHIEVING OUR SUSTAINABILITY GOALS, IN LINE WITH THE UAE SUSTAINABILITY STRATEGIES. WE ARE COMMITTED TO BUILDING A BETTER FUTURE FOR THE NEXT GENERATIONS, BY INVESTING IN SUSTAINABILITY AND LEADING THE WAY INTO AN ENVIRONMENTALLY- CONSCIOUS FUTURE.”
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RENAULT TRUCKS T X-PORT NEW TIMES, NEW OPPORTUNITIES RENAULT TRUCKS T X-PORT 4X2 EURO 3 CERTIFIED B Y R E N A U L T T R U C K S U S E D T R U C K S WWW.USED-RENAULT-TRUCKS.AE Benefit from a truck transformed in our factory with the manufacturer high quality standards. For a long-term performance get more than a Used Trucks, contact your local Renault Trucks dealer to get your Renault Trucks T X-Port with 24 months warranty and 24 months service contract to guarantee total peace of mind. WITH 24 MONTHS INTERNATIONAL WARRANTY + 24 MONTHS SERVICE CONTRACT MORE THAN A USED TRUCK