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CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE NOVEMBER 2022 A U T O M A T I O N Where is Automation Heading in the GCC? C E O ’ S P O V Future of Logistics E C O M M E R C E The Reality Is Around The Corner THE TYRE INDUSTRY FUTURISTIC Stefano Sanchini, Regional Managing Director of Bridgestone Middle East and Africa, shares his reflections on the expanding tyre industry in the region
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IN THIS ISSUE THE FUTURISTIC TYRE INDUSTRY 16 EXPERT INSIGHT HOW LEVERAGING CONNECTED EXPERIENCES IN LOGISTICS CAN BUILD RESILIENT SUPPLY CHAINS? We bring forward exclusive insights on absorbing IoT from Burak Ertuna, CIO & VP BPO – MEA region at DHL Global 18 TALKING POINT HOW DOES THE POST-PANDEMIC ERA OF GLOBAL LOGISTICS LOOK LIKE? Dr. Shereen Nassar, Global Director of Logistics Studies and Director of MSc Logistics and Supply Chain Management Programme at Edinburgh Business School and Heriot-Watt University Dubai, sheds light on ways the industry can cope with increasing demand and fast-tracked logistics 22 AUTOMATION WHERE IS AUTOMATION HEADING IN THE GCC? Ahab Qunibi, Commercial Director at Nuummite Consulting, illuminates on the constantly shifting hot topic 24 ECOMMERCE THE REALITY IS AROUND THE CORNER Niranjan Gidwani, Consultant Director of Texub, talks about the burgeoning B2B e-commerce industry 34 CEO’S POV FUTURE OF LOGISTICS How will logistics look in the future? An insightful interview with Alain Kaddoum, Managing Director of Savoye Middle East 36 RETAIL WHERE IS THE RETAIL LOGISTICS MOVING TOWARDS? Giving us insights, Sanjay Berry, Managing Director of Reliance Freight Services, walks us through the nitty-gritties of retail logistics 38 START-UP TRANSFORMING THE RETAIL SUPPLY CHAIN LOGISTICS UAE smart B2B tech start-up Grocart is shaping retail logistics by connecting grocery suppliers and wholesalers Stefano Sanchini, Regional Managing Director of Bridgestone Middle East and Africa, shares his reflections on the expanding tyre industry in the region 16 22 26
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6 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM All rights reserved © 2022. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact sales@bncpublishing.net T +971 50 440 2706 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 Keep up to date with all the latest news, features and much more on our website and social media platforms. CBNME.COM CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Vibha Mehta vibha@bncpublishing.net EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Joshua Sinanbam aj@bncpublishing.net PHOTOGRAPHER Alexander Bungas EDITOR’S NOTE LNME I ntroducing myself as the new Editor for Logistics News ME, I would say that my foray into the Middle Eastern logistics and supply chain has been extremely pleasant. Though, I am still growing on the industry, on the other hand, the overall warmth has been a constant driving force for me to tap into different businesses, put forth ideas from untapped industries, and create an exquisite editorial version for this sector. In this issue, we bring you an exclusive interview with the man behind our cover story - Stefano Sanchini, Regional Managing Director of Bridgestone MEA, and on his vision for the company in the region (p.26). Our additional insights range from surfacing automation in logistics to Alain Kaddoum from Savoye Middle East (p.34) providing his perspective on the sector, as well as Soham Chokshi from Shipsy (p.13) commenting on Saudi Arabia's new investment initiative, all of which promise to deliver a far more complete picture of the industry. Not to forget, PayTab (p.42) and Mastercard (p.44) are defying norms to create a more seamless user experience, among other features. Finally, I would want to encourage all of our readers to keep reading this space as I add new logistical content and shift editorial perspectives for the most important sectors. Vibha Mehta Editor vibha@bncpublishing.net
10 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM REGIONAL NEWS LNME A mazon.sa has unveiled its new office in Riyadh that is conclusive of employees from various sectors of the company’s operations in the Kingdom of Saudi Arabia – including e-commerce, smart devices, Amazon Payments Services, Amazon Internet Services, and Amazon Advertising. “We are pleased to inau- gurate our new office in the capital of the Kingdom, con- firming our commitment to serving Amazon customers, vendor partners, and em- ployees in the Kingdom, as well as supporting its social and economic growth in line with the Saudi Vision 2030,” said Ronaldo Mouchawar, Vice President of Amazon Middle East and North Africa (MENA). “We will continue to develop our investments in the Kingdom across various sectors, including e-com- merce, smart devices, and Amazon Payment Services, among others.” Amazon’s new office is in the Riyadh Front Tower, an iconic destination that offers an exceptional urban feel that reimagines how people work, play, dine, shop, and share space. The tower, the tallest in the area, provides an ideal work environment to attract and retain talent in line with Amazon’s mission to strive to be Earth’s Best Employer. Since the launch of Amazon. sa in 2020, the company has recruited more than 1,400 talents in its various sectors, and the new office paving the way for attracting more local talent to join the company and to help Amazon innovate on behalf of customers. With the opening of the new office, Amazon is also working on launching an ini- tiative to motivate and train Saudi talent by collaborating with employees working in various functions across the company. Details about the initiative will be announced later this year. “At Amazon, we talk about hiring builders who will help us invent and innovate on behalf of our customers. This means investing in the right talent and people who are equipped to be customer obsessed and to improve the customer experience continu- ously,” said Abdo Chlala, Di- rector of GCC. “With our new office, we look forward to welcoming not only our exist- ing builders but attracting and developing new talent through our upcoming talent program.” Moreover, with the launch of its operations in Saudi Arabia in 2020, Amazon has increased its investments across the Kingdom and expanded its activities in vari- ous business sectors. Ama- zon has not only provided hundreds of jobs but also launched many local pro- grams and products. For example, the Amazon Prime program offers free same-day delivery in Riyadh and Jeddah, and Amazon is introducing, for the first time ever, Alexa with an Arabic language option with the Khaleeji (Gulf) dialect. Last March, Amazon.sa signed a Memorandum of Understanding (MoU) with the Ministry of Investment (MISA) and the Small and Medium Enterprises General Authority (Monsha’at). The MoU will enhance Amazon’s presence in the local market, enable tens of thousands of small and medium enter- prises to sell their products to millions of customers across the Kingdom, and help scores of entrepreneurs set up their logistics businesses. AMAZON OPEN DOORS TO ITS NEW CORPORATE OFFICE IN RIYADH
LOGISTICS NEWS ME | NOVEMBER 2022 | 11 REGIONAL NEWS A D Ports Group’s Maqta Gateway, Emirates Post Group, the postal operator of the UAE, and SkyGo, an aerial logistics provider, are all set to trial a new initiative that would offer a wide-ranging aerial drone delivery combined with other services in Abu Dhabi. These three organisations will collaborate on a pilot operation using aerial drones to transport packages and documents to the designated Emirates Post offices around the emirate. The experiment will begin with short-range trips and later transition to long-range test- ing with a greater capacity to analyse the demand and comprehend broader advantages. Dr Noura Al Dhaheri, CEO of Digital Cluster and Maqta Gateway, AD Ports Group, said, “As a leading trusted trade and logistics partner within the region and globally, Maqta Gateway is uniquely positioned to spearhead advanced innovations such as this initiative. We actively seek out projects that can positively dis- rupt and transform global trade, and this new collabo- ration offers a vital opportunity to do just that. Drone services could enable greater convenience and faster delivery times for customers across Abu Dhabi while ensuring a positive environmental impact.” While SkyGo supplies drone solutions, Maqta Gateway will use its integrated digital marketplace, Margo Hub, to enable online transactions between clients and Emirates Post Group. “Margo Hub is a state-of-the-art integrated digital marketplace for all logistics needs, from trucking and warehousing through to the last mile and express delivery, so the expansion into drone services is a seamless extension,” added Dr Noura Al Dhaheri. The main goal of this partnership is to provide a dependable, user-friendly service that will make it pos- sible to deliver critical medical supplies, fresh meals, and essential papers with real-time tracking. Abdulla Mohammed Alashram, Group CEO of Emirates Post Group, stated, “This agreement comes as part of Emir- ates Post Group’s vision to foster collaborations with pioneering UAE firms that embrace advanced technol- ogies so that we may provide customers with innova- tive delivery solutions. Maqta Gateway is an ideal part- ner for this project, delivering UAE-initiated innovation through an advanced digital platform.” Details of the trial programme will be released to- wards the end of 2022, with a complete commercial offering planned for launch in the next year, pending approval. DRONE LOGISTICS SET TO FLY HIGH IN ABU DHABI
12 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM REGIONAL NEWS LNME A joint venture between DP World and SMS Group developed BOXBAY, an automated and environmentally friendly High Bay Storage (HBS) container yard stacking system – which is designed to be fully electrified and will be the only container yard where solar panels on its roof can power, has won the German Award for Supply Chain Management 2022. Tiemen Meester, Chief Operating Of- ficer of DP World, Ports & Terminals, says, “This is an exciting time for DP World and BOXBAY. Our pilot in Jebel Ali has been in operation since January 2021, and leading global port operators are testing the system. Several projects are currently in the design, layout, or budgeting phase.” After being chosen by a panel of in- dustry leaders as part of the Internation- al Supply Chain Conference, the award was presented to both parties in a ceremony in Berlin. The system was rec- ognised as an “exemplary concept” and was designed and implemented despite current industry problems. Furthermore, the new approach addresses identifying fundamental difficulties in container port operations by combining greater effi- ciency and environmental goals. Burkhard Dahmen, CEO of SMS Group, adds, “We are very proud that our BOXBAY technology convinced the jury. The award also represents a huge success and motivation for the whole team. BOXBAY can make container han- dling in ports much more efficient while at the same time contributing to the de- carbonisation of supply chains.” The High Bay Store BOXBAY is a pat- ented automated container handling technology that can stack containers up to eleven storeys high. It provides more than three times the capacity of a typical yard while improving perfor- mance, allowing terminal footprints to be lowered by up to 70% and allowing every container to be accessible indi- vidually without moving any others. Containers are traditionally placed one on top of the other, implying that several containers at once must be moved to access containers farther down in the stacks. However, stacking cranes operate between rows of container bays in the colossal steel framework of BOXBAY. It functions similarly to a library, ex- cept each book may weigh up to 40 tonnes. Each container piles in its bay, and the stacking cranes glide between them, choosing out any container without moving the boxes above or below it. This prevents the wasteful reshuffling found in traditional stor- age systems. The storage system may be scaled to any place since the steel frame holds the boxes rather than stacking containers on top of each other. A traditional yard with rubber-tired gantry cranes can hold around 750 TEUs per acre. A yard may, however, treble this amount with BOXBAY, ac- commodating up to 3,000 TEUs per acre. Up to 20%, thanks, can acceler- ate quayside trans-shipment speeds to complete automation and digitisa- tion, a significant economic benefit for the cost-intensive container shipping business. It also employs solar elec- tricity from photovoltaic panels on the storage system’s roof to run CO2- neutrally. BOXBAY is an automated, vertical container-loading system which is designed to change the way containers will be handled in ports with smart innovations DP WORLD’S AND SMS GROUP’S BOXBAY WINS GERMAN LOGISTICS PRIZE
LOGISTICS NEWS ME | NOVEMBER 2022 | 13 REGIONAL NEWS L aunched by the Kingdom’s Crown Prince Mohammed bin Salman, KSA recently earmarked over SR10 billion (US$2.7 billion) in financial and non-financial incentives for global supply firms to invest in the Kingdom. According to Shipsy’s spokesperson, this initiative expects to have far-reaching effects on the country’s economy and cement its position as a supply chain hub. “Resilient supply chain operations are pillars of any thriving economy. Hence the decision to earmark 10 billion riyals as an incentive for glob- al supply chain firms to invest in the Kingdom is a massive step in the right direction,” says Soham Chokshi, CEO and Co-Founder of Shipsy. “The strategy will empower the region to drive rapid logistics transformation via digitization and automation. With the supply chain ecosys- tem in Saudi Arabia maturing fast, greater investments will also help businesses to focus on environmental sustain- ability. From an international perspective, it’s vital to keep improving Saudi Arabia’s sup- ply chain performance as it directly impacts economies in Europe, the USA, and Asia. The announcement will be pivotal in enabling businesses here to invest in advanced lo- gistics management solutions that help build self-govern- ing, resilient, and data-driven supply chains.” The announcement ad- vances the National Strategy for Transport and Logistics initiative announced in 2021. It aims to shore up KSA’s transport and logistics sec- tors’ contribution to the gross domestic product, fuel busi- ness growth, and expand investment opportunities. It aligns with Shipsy’s goals of providing its customers in the region to drive cost-efficient, sustainable, and customer- centric supply chain and logistics operations through a unified platform. More significant invest- ments in the supply chain sectors will fuel the govern- ment to achieve its sustain- ability goals, as highlighted in Vision 2030. This develop- ment will further enable busi- nesses in KSA to leverage advanced technologies that reduce the distance travelled per package and boost the usage of eco-friendly delivery means, like EVs and bicycles. Correspondingly, Shipsy is empowering 100s of busi- nesses worldwide to deliver tangible business outcomes by leveraging AI, ML, Predic- tive Intelligence, Automation, IoT, Big Analytics and much more. It is helping retailers, eCommerce players, and other logistics-powered busi- nesses in the region to boost customer experience, reduce carbon footprint, simplify in- ternational goods movement, and mitigate transportation risks and cost leakages. Shipsy’s smart logistics man- agement platform is helping businesses in KSA achieve efficiencies like an 18% re- duction in return-to-origin instances, lower mid-mile and last-mile costs by 12% and 23%, respectively, increase vehicle capacity utilization by 31%, boost deliveries per rider by 14%, improve on-time dispatch volumes by 28%, and scale on-time deliveries and serviceability through seamless logistics orchestration. SHIPSY ACCLAIMS SAUDI ARABIA’S BILLION-DOLLAR BID FOR BEING CRITICAL AND POSITIVE FOR THE SUPPLY CHAIN INDUSTRY Dubai, UAE: Shipsy, one of the leading global SaaS-based innovative logistics management platform providers, has welcomed the Kingdom of Saudi Arabia’s (KSA) move to roll out its multi-billion-dollar Global Supply Chain Resilience Initiative, terming it as “a critical step” that will boost the nation’s competitiveness and expedite digital transformation.
14 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM REGIONAL NEWS LNME D ubai Airport Freezone (DAFZ), a part of the Dubai Integrated Economic Zones Authority (DIEZ), has officially entered the land of the metaverse with its official unveiling of METADAFZ. With the vision to provide the free zone’s clients with a smooth digital experience in the metaverse. DAFZ made an official announcement at GITEX 2022, held from October 10-14, 2022, at the Dubai World Trade Centre. Moreover, this initiative aligns with the directives of Dubai’s Metaverse Strat- egy, announced by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and Chairman of the Dubai Executive Coun- cil, to boost Dubai’s metaverse strategy. The vision behind this initiative is to at- tract foreign direct investments (FDI) and allow businesses to expand to the free zone – by embedding DAFZ’s unique offerings, products, and solutions, ad- vancing the Emirate’s position as one of the leading hubs for competitive and constructive technology. Amna Lootah, Director General of Dubai Airport Free Zone, said, “Since its establishment more than 26 years ago, DAFZ has succeeded in consolidating its position as a leading and innovative free zone, providing its clients with ac- cess to the most up-to-date technology and initiatives. This initiative, which bridges the gap between the physical and virtual world, will contribute to digi- tizing businesses in the free zone and support global businesses to establish themselves in the Emirate via a smooth experience. This will place DAFZ at the heart of the technological revolution and enhances our presence as a regional and global destination for attracting direct foreign investments and as an integrated business incubator operating according to the highest standards. The launch represents a significant step towards de- fining DAFZ’s technological and innova- tive identity in the digital world.” METADAFZ will give a platform to cli- ents from across the globe to conduct meetings virtually, providing an exclusive and semi-realistic experience irrespec- tive of the physical location. The new approach offers an alternative to the tra- ditional way of conducting business ac- tivities and encourages company repre- sentatives to discuss future perspectives and launch new projects ins Dubai. Bader Buhannad, Chief Corporate Support Officer at Dubai Integrated Economic Zone (DIEZ), added, “The launch of the METADAFZ initiative is a testament to DAFZ’s commitment and motivation to elevate its performance levels, solutions, and services in line with the best international standards in mod- ern technology. METADAFZ will provide an innovative and world-class experience that will take the free zone’s offerings to the next level. The metaverse experi- ence is set to attract new clients and for- eign businesses, create new investment opportunities, and enhance the business framework.” With this launch, DAFZ will create investment openings and new possi- bilities for cross-border clients through innovative yet futuristic technological solutions and tools. Correspondingly, METADAFZ will be extensively promoted at exhibitions, seminars, conferences, and meetings. DAFZ chose to announce METADAFZ at GITEX 2022 as this five- day event exemplifies the ambitions of the UAE to advance digital transforma- tion in the region and enrich the coun- try’s position as a significant contributor to the international digital economy. DAFZ FLOWS INTO THE WORLD OF METAVERSE BY LAUNCHING METADAFZ
LOGISTICS NEWS ME | NOVEMBER 2022 | 15 REGIONAL NEWS A s per the latest global survey, ‘The 2022 Commerce Innovation Report’, by commercetools, one of the global leaders in next-generation digital commerce solutions – it is reported that brands which do not leverage modern commerce platforms have been witnessing a decline in customer loyalty. The survey conducted for over 300 global retail business leaders is expected to raise awareness and inspire business- es in the region to adopt and develop advanced platforms empowered by Headless Commerce architecture. Jen Jones, Chief Marketing Officer of commercetools, says, “Consumers are constantly redefining what the ideal cus- tomer experience feels like, given the abundance of options and the power of the internet at their fingertips. The brands with longevity are the ones that are taking this shift into ac- count from both a technological and cultural perspective and are constantly evolving to meet customer demands.” Furthermore, the most recent research shows how a lack of innovation in the sector has harmed customer satisfaction, revenue, and brand loyalty. The study also highlighted how consumers frequently switch companies when they have un- satisfactory shopping experiences; a trend driven mainly by millennials and Gen Z. If a brand’s online shopping experience doesn’t meet its ex- pectations, 73% of customers will switch. Furthermore, more than 50% of these customers select modern commerce experi- ences characterized by evolving customer preferences, pay- ment alternatives, and digital gadgets. According to the research, more than 70% of respondents expressed fear that millennials, a generation with more than USD 2.5 trillion in disposable money, would change their pur- chasing patterns and patronize different brands. Gen Z and X, which account for 54% and 48% of the population, are the next generation. About 40% of respondents also emphasized how difficult it is for their business to sell its products or services due to its pre- sent commerce solutions. Less than half of respondents offer numerous payment ways, and fewer still offer “Buy Now Pay Later” and cashback features, even though customers have shown a need for various payment alternatives. “Change is constant in the modern commerce ecosystem. As a result, brands must be agile and meet customers where they are. This entails keeping a close eye on their customers’ pur- chasing behaviours and adopting the commerce experiences that best resonate with them. Anyone who thinks they can sit still and not evolve amid changing customer demands will soon find themselves out of business,” Jen adds. ACCORDING TO A NEW SURVEY FROM COMMERCETOOLS, 74% OF THE BRANDS SUFFER WHEN NEW SOLUTIONS ARE NOT ADOPTED
16 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM EXPERT INSIGHT LNME I oT is no longer an axiom in the logis- tics sector. Innovations in cloud data storage, artificial intelligence, and cellular networks collectively drive a more connected experience in trans- port and logistics by enabling the moni- toring of vehicles, improving security, and enhancing delivery time. These advances also ensure proper storage of temperature-sensitive goods and streamline communications - this implies comprehensive benefits for logistics providers, generating actionable insights that drive transformation and new solutions. IoT’s vast potential to connect anything to the internet can accelerate data-driven logistics. Adapting these innovations into logistics ecosystems can give a company clear-cut transparency in its multiple operations, leading to a seamless inventory organization. Everyday objects can now send, receive, process, and store information and thus actively participate in logistics processes, from understanding customer needs in different markets to responding to them in real time. This has accelerated the connected experience in transport and logistics – enabling diversification for multinational businesses.Furthermore, IoT has particularly aided a vital role in the pandemic, where billions of highly temperature-sensitive vaccines were shipped worldwide. DHL used its connected network to safely deliver over 1 billion COVID-19 vaccine doses to 160 countries. Here, Burak Ertuna, CIO & VP BPO – MEA region at DHL Global, sheds light on leveraging connected experiences in logistics… How to make IoT work for you IoT in logistics is an ecosystem that harnesses traditionally unconnected assets HOW LEVERAGING CONNECTED EXPERIENCES IN LOGISTICS CAN BUILD RESILIENT SUPPLY CHAINS? We bring forward exclusive insights on absorbing IoT from Burak Ertuna, CIO & VP BPO – MEA region at DHL Global
LOGISTICS NEWS ME | NOVEMBER 2022 | 17 HOW LEVERAGING CONNECTED EXPERIENCES IN LOGISTICS CAN BUILD RESILIENT SUPPLY CHAINS? and objects, turning them into tools for creating new solutions that benefit the entire supply chain. But how exactly do you build an IoT ecosystem as a logistics provider? IoT devices must be embedded in your assets (warehouses and distribution centres) so that you can communicate with them using everything from cellular- based solutions to RFID and other connectivity technologies. Once you can share your assets, you need to feed the data to platforms and databases so that you can visualize the information. For example, monitoring environmental conditions is a critical use case demonstrating IoT’s time and resource- saving value. Knowing the environmental conditions along the supply chain is crucial. Until recently, monitoring a facility was a manual and time-consuming process. Someone would have to visit the devices distributed around the building to download the data. IoT has changed this. The latest machines are now connected using low-powered wide-area networks (LPWANs), which transmit information in real-time to a central platform and the customer. Transforming the future of logistics In cold chain monitoring, connected devices are used to track each shipment and monitor its condition throughout the journey. Many pharmaceutical products have to be transported and stored in temperature-controlled environments. IoT devices can be used to record and report conditions based on customer requirements, which means that customers can see their products stay within a specific temperature range, even during inspection or loading and unloading. As more drugs are being developed that require lower temperatures, the value of IoT in cold chain logistics is only set to grow further. Lost freight is another significant issue plaguing the transport and logistics sector. However, thanks to IoT, logistics companies can monitor items moving around a warehouse, distribution centre, or supply chain. A shipment can easily be traced from when it is picked up to when it reaches its destination. IoT technology also takes substantial physical pressure off employees, who no longer need to cross an entire warehouse to check on operations or stock levels. Smart shelves and sensors inform warehouse managers in real-time, and sensor-equipped transporters pick up heavy loads. Leveraging the core strengths of IoT There’s little doubt that IoT solutions strengthen the supply chain while providing managers with the data they need to carry out daily operations and make well-informed strategic decisions. The transport and logistics sector in the UAE is already highly evolved as IoT, robotics, and automation have been widely adopted across the supply chain. The challenge now is for the collected data to become a proven driver of higher efficiency and better service quality for the logistics industry. There is undoubtedly more sensor investment, and IoT systems have become more attractive to logistics operators than ever before. Still, the potential of IoT is yet to be fully tapped, and it has never been a better time to experience its real value in building a resilient supply chain. Burak Ertuna, CIO & VP BPO – MEA region at DHL Global “IOT DEVICES MUST BE EMBEDDED IN YOUR ASSETS SO THAT YOU CAN COMMUNICATE WITH THEM USING EVERYTHING FROM CELLULAR-BASED SOLUTIONS TO RFID AND OTHER CONNECTIVITY TECHNOLOGIES.”
18 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM TALKING POINT LNME “FROM MANUFACTURING FACILITIES TO MANAGING SUPPLY CHAINS TO THE LAST MILE, THE SECTOR REQUIRES HUMAN INTERVENTION AT EVERY STEP.”
LOGISTICS NEWS ME | NOVEMBER 2022 | 19 T he year of a global pandemic, 2020, was one of the most impactful chapters in the global logistics and supply chain sector. From travel shutdowns to issues with material sourcing, there were several setbacks in the supply chain and logistics industries, including various disruptions at all stages. Moreover, while the world was trying to sink in the ripples of the pandemic, it enlightened several other problems within the industry – which was the slowest to adopt technological advancements. As a result, the accelerated issues showcased many vulnerabilities, creating a sense of urgency across the supply chain. However, they all need to focus their energy on to think what is next. With life returning to almost normal, it is imperative to absorb all the learnings from the pandemic and navigate towards developing post-pandemic requirements for global supply chain and logistics. An efficient, lean and profitable supply chain is proactive rather than reactive – meaning businesses need to recalibrate their logistics to face the ‘new world.’ Learning from the various challenges the sector faces, the industry is shifting its attitude to- wards what is necessary to thrive. Moreover, with the surging demand within the digital and online world, the question arises, ‘Is the industry ready?’ According to a report by Reportlinker.com, the freight and logistics market in UAE is expected to reach USD 31.41 billion in 2026 growing at a Com- pound Annual Growth Rate (CAGR) of 8.41 per cent between 2021 – 2026. Furthermore, the report asserts that the UAE freight and logistics market has been growing gradually, mainly driven by the consist- ent and fast growth of e-commerce across the globe and the region, along with rising international trade. While logistics companies look to simplify their processes and implement ways to face the ongoing challenges within the industry, various elements must be considered to meet the growing demands. Here, Dr Shareen Nassar shares her insights which will help the industry cope with logistics changes. Mapping vulnerabilities for resilience As with any industry, supply chain and logistics organisations face many issues throughout their processes. Understanding shortfalls and risks that can potentially harm and slow down smooth operations are basic knowledge and play an important role in protecting the organisation. However, it necessitates going beyond the surface and mapping the full supply chain, including distribution facilities and transporta- tion hubs. It also requires having an overall picture of every cog in the wheel and the vulnerabilities they face or the potential ones that may occur. This process can undoubtedly be financially heavy, but the possibility of such an exercise safeguarding the organisation from failing will ultimately be beneficial. From understanding technical issues, technological shortcomings, and risks to workforce disturbances and raw material considerations, pre-empting prob- lems and working on solutions will save costs and man-hours in the long run. This is seen as the foun- dation for building resilience as a business strategy and value that has become mitigation for various sources of vulnerabilities driven by uncertainties as a common aspect of a modern business ecosystem. A resilient logistic and supply chain can cope with not only operational risks associated with the mismatch between supply and demand with a direct impact on operational performance but also major ones with a significant impact on business performance. Dr. Shereen Nassar, Global Director of Logistics Studies and Director of MSc Logistics and Supply Chain Management Programme at Edinburgh Business School and Heriot-Watt University Dubai, sheds light on ways the industry can cope with increasing demand and fast-tracked logistics BY VIBHA MEHTA HOW DOES THE POST-PANDEMIC ERA OF GLOBAL LOGISTICS LOOK LIKE? HOW DOES THE POST-PANDEMIC ERA OF GLOBAL LOGISTICS LOOK LIKE? >>>
20 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM How logistics and supply chains are managed deter- mines their resilience level that should be supported by internal and external stakeholders’ collaboration, flexible and agile systems and mindsets, and nurturing the risk management culture in all aspects of the business. Omnichannel Shipping According to Harvard Busi- ness Review, the Amazon effect pushes traditional retailers to offer more omnichannel touchpoints to support increasing demand. Omnichannel shipping means providing a seamless approach to meeting cus- tomer expectations, thereby increasing customer loyalty. Logistics companies must review their procedures and offer a more robust approach to shipping. From custom- ers walking in-store to look around and buy products, there has been a shift to click and buy. Now customers want most of their shopping done online with either home deliveries or easier ways to connect and collect. For example, in the UAE, brands such as Noon have to pick up and drop boxes in easily ac- cessible areas where custom- ers can come and collect their purchases at their conveni- ence instead of waiting for them to be dropped home. In the USA, Walmart has started a unique programme where they incentivise employees for drop-offs, which can be done while they are on their way home after work. There is a growing interest in adopting this approach through the cloud shipping model on a wider scale using the cloud shipping process, which utilizes online tools to choose a carrier and service to ship a package. In addi- tion, Manpower Upskilling Logistics and supply chain is a manpower-heavy industry. From manufacturing facilities to managing supply chains to the last mile, the sector re- quires human intervention at every step. It is overwhelm- ing for logistics personnel to keep up with crises, changes in the industry, surging and dropping demands, and tech- nological advancements. To overcome any challenges that employees, specifically skilled labour, face, it is imperative that they continue to upskill and reskill themselves. While the sector’s basis may remain the same, there have been so many shifts that something that may have been an im- portant subject in a logistics course may turn out to be one of the least important chapters. Every business is as good as its people, and businesses that don’t change due to shifts in supply and demand and current trends will become obsolete in a few years. Every skill needs to be enhanced; businesses must encourage employees to take additional courses to improve and increase their knowledge. Optimisation through technology and analytics While we have established that automation and digital technologies are t the way forward, logistics has been a relatively slower adop- ter. This can be improved by developing clear digital business and supply chain strategies backed by man- agement support. Big data and analytics help logistics companies deal with data and number crunching. Analytics helps organisa- tions keep up with escalating demands and understand them the more organised way. Furthermore, using technologies such as Near- Field Communication NFC facilitates electronic devices, including mobile phones and payment terminals, to con- nect for payment and related transactions. With transport networks increasingly becom- ing interlinked, NFCs can support easy transportation and transit payments. Additionally, the Cloud- based Transport Manage- ment System (TMS) is another technology gaining momentum in the industry. It can help organisations have greater transparency and vis- ibility, reducing time for veri- fications and other routine tasks. Disruptive technologies allowed innovative solutions which offer end-to-end logis- tics platforms that connect various parties. The end-to- end solutions, ranging from packaging, warehousing, and transportation to order fulfillment, helps businesses improve supply network visibility, efficiency, and performance. While the industry has a long road ahead, many learn- ings can be taken from the past three years to improve or create a better path for where it is headed. Logistics is an essential part of nearly all businesses. Effective and efficient logistics can provide a competitive edge to busi- nesses and increase profitabil- ity. Supply chain and logistics move the world, and the importance of the industry is stark. And with agility and resilience, it can face any dis- ruptions that come its way. TALKING POINT LNME “WHILE THE INDUSTRY HAS A LONG ROAD AHEAD, MANY LEARNINGS CAN BE TAKEN FROM THE PAST THREE YEARS TO IMPROVE OR CREATE A BETTER PATH FOR WHERE IT IS HEADED. LOGISTICS IS AN ESSENTIAL PART OF NEARLY ALL BUSINESSES. EFFECTIVE AND EFFICIENT LOGISTICS CAN PROVIDE A COMPETITIVE EDGE TO BUSINESSES AND INCREASE PROFITABILITY.”
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22 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM AUTOMATION LNME W hile the Gulf Region is heading steadily towards the digitization era by adopting and developing national visions supported by governments to enable both public and private sectors to cope with the digital trends around the world, robotic process automation comes as one of the most state-of-the-art futuristic technologies. Robotic process automation (RPA) is a revolutionary tool that could be defined as software technology that makes it easy to build, deploy, and manage software robots that carry on human actions interacting with digital systems and software. Although bots can’t replace humans, their capabilities and benefits are limitless. They can do everything from learning, and imitating, to executing business processes that entail specific rules. Robotic Process Automation software bots can interact with any application or system the same way people do—except that RPA bots can operate around the clock, nonstop, much faster, and with 100% reliability and accuracy. HOW DOES THE SCENE OF SUCH A REVOLUTION- ARY TOOL LOOK LIKE? WHERE ARE WE HEADING? In the digital world, knowledge is power and data is the key factor that decision makers depend on to develop their strategies and plans. WHERE IS AUTOMATION HEADING IN THE GCC? BY AHAB QUNIBI- COMMERCIAL DIRECTOR AT NUUMMITE CONSULTING Ahab Qunibi, Commercial Director at Nuummite Consulting, illuminates on the constantly shifting hot topic
LOGISTICS NEWS ME | NOVEMBER 2022 | 23 Starting from this belief, Nuummite Consulting for digital transformation solutions acted on its leading role and initiated conversations with key decision makers and leaders of business automation in prestigious companies across the GCC to get a better understanding of the regional scene when it comes to automation. According to this first-of-its-kind study in the region, UAE and KSA markets showed high awareness of the importance and impact of RPA and digital solutions on businesses, which means that more automation projects are likely to be implemented in the near future in these markets. And with the fact that 76% of the interviewed organizations in the UAE adopt RPA and lead digital technology initiatives, it is expected that more companies will follow the lead and kick off their own digital transformation journey. Satisfaction of the end consumer is becoming more critical, especially after the COVID-19 pandemic, and automation can play a significant role in this regard. According to the aforementioned study, 84% of companies apply RPA to enhance services rendered to end customers. For automation and RPA to become a norm, collaboration is key! However, there is still a need to involve more departments and divisions inside the companies in the automation process. The question now is where to start? Getting to know your drivers could be your first step! Based on Nuummite’s market study; multiple drivers play an important role in the success of such technologies in the UAE and KSA markets for example. The successful onboarding towards digitization entails willingness, determination, and knowledge. With such data and statistics in place, a bright future is on the horizon for automation in the GCC, so if you are leading the digital transformation efforts in your company and you took your decision to include automation in your strategy, you definitely are aligned with the future! “Getting to know your drivers could be your first step! Based on Nuummite’s market study; multiple drivers play an important role in the success of such technologies in the UAE and KSA markets for example.” WHERE IS AUTOMATION HEADING IN THE GCC? Ahab Qunibi- Commercial Director at Nuummite Consulting LOGISTICS NEWS ME | NOVEMBER 2022 | 23
24 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM ECOMMERCE LNME T he evolution of B2B e-commerce from a niche segment of the commercial market to where it will soon equal or surpass traditional channels has been underway for some time. Going back in time, B2B purchasing was, and has even till recently, been dominating - by a generation that has believed in and favoured centralized, face-to-face interactions and personal relationships. Whether we like it or not, B2B purchasing is now the responsibility of the much more internet-savvy Generation X, and this activity will soon be under the management of the first all- digital generation, for whom devices are an extended appendage of their bodies. Globally, the world chooses to call them Millennials. Unlike the previous generations, millennials are at ease with online buying. It must be understood that they have no problem extending their B2C shopping practices to their B2B purchases. And they will. Giant online retailers like Amazon have been the pioneers in creating frictionless experiences that consumers have been used to. Such incidents are now commonplace across almost all B2C categories, and no good online platform can survive for long without super seamless experiences. The same buyers are now getting into positions responsible for work and business-related purchases. B2B vendors are rushing to adopt the same principles and methods to their online buying experiences. The B2B e-commerce model will likely be a hybrid model, where buyers want to shift between online and offline transactions and interactions for purchases and services. As this gains traction, the importance of putting together the data and creating seamless experiences will only increase. By 2023, Gartner forecasts 15% of mid-to-large B2B brands to launch their marketplaces and 70% of all marketplaces to support B2B transactions. The transition to digital is not without risk, and the high-profile cyberattacks and increased fraud will cause their share of problems. In the case of B2B, transactions are likely to be of higher value and, therefore, more concerning. For B2C and B2B businesses, securing customer data and protecting company infrastructure from fraud and security breaches are as crucial as any other aspect of e-commerce. Adopting and investing in a mobile strategy, especially as more Millennials and younger digital generations take leadership roles, will be essential for any B2B business looking to sustain and grow its e-commerce revenue into the future. As per Gartner and other analysts, the only way forward for B2B is a greater reliance on e-commerce and the continued development and advancement of the trends and technology we are used to seeing. B2B sales organizations are not selling the way today’s buying customers want to buy. This is slowly but surely creating a growing buyer-seller divide. This current phase is pivotal for traditional B2B sales leaders and organizations. It’s time to acknowledge that the world has changed and that we can’t sell how we used to. It is imperative to learn from the habits of highly successful B2C organizations like Amazon to truly understand the customer and use data and deeper insights to be more effective. Since online B2B is likely to be bigger than online B2C in a few years, this provides organizations with a fresh opportunity to co-exist alongside the Amazon of the world. Interesting times ahead. We may hear of some upcoming start-ups from this region creating new success stories of the future. THE REALITY IS AROUND THE CORNER Niranjan Gidwani, Consultant Director of Texub, talks about the burgeoning B2B e-commerce industry Niranjan Gidwani, Consultant Director of Texub
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26 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM COVER STORY LNME HOW IS BRIDGESTONE MEA ADAPTING TO THE PLANS OF ADVANCING INNOVATIONS IN THE TRANSPORTATION IN- DUSTRY WITHIN THE REGION? Bridgestone has been leading the industry in advanced and sustainable mobility solutions, and we have been ex- ploring various avenues to innovate our products to meet the current speed and efficiency of the industry. Tyres are not only the point of contact between a vehicle and roads but will also help in data collection. Tyres can offer real-time insights to the vehicle controller, further optimising performance, safety, durability, and efficient fuel consumption. We create value by leveraging multiple data platforms to create connected solutions as a part of the global mobility ecosystem. The mobility solutions offered by Bridgestone follow four key themes – data collection, data platform, data analysis and user interface: > Data collection includes telematics, RFiD, sensors and 3D for tyre measurement. Data platforms are being stud- ied further to ensure efficient security, privacy issues, data storage, computing, and API. > Data analysis entails exploring value-addition by Artifi- cial Intelligence and machine learning, digital twins, and visualisation. In the user interface, we are developing the THE TYRE INDUSTRY FUTURISTIC Stefano Sanchini, Regional Managing Director of Bridgestone Middle East and Africa, shares his reflections on the expanding tyre industry in the region
LOGISTICS NEWS ME | NOVEMBER 2022 | 27 THE FUTURISTIC TYRE INDUSTRY | STEFANO SANCHINI software, web interface, and mobile appli- cations. We have been working towards developing high-standard and sustainable tyres using these technologies. > To ensure efficient production and op- erations, we leverage the digital twin solu- tion to reduce time and resource usage, positively impacting the environment. For instance, our innovative Virtual Tyre Development Technology assists us in cre- ating a virtual copy of a tyre, which helps predict its performance without physically manufacturing and using it. This reduces carbon emissions and raw material us- age during the development phase by approximately 60 per cent. Furthermore, it also saves around 200 prototype tyres and 40,000 kilometres of physical testing per tyre during the development phase. > Additionally, we collaborate with Microsoft to develop an innovative Tyre Damage Monitoring System leveraging the Microsoft Connected Vehicle Platform (MCVP). It is designed to ensure road safety and reduce accidents caused by technical failures. The system monitors and gathers information on the damage, depicting the part that has been damaged, which further helps in gaining insights into road conditions and infrastruc- ture. The system collects data, enabling responsible authorities to mitigate risks by identifying road damage, location, and other hazards. The development of these systems marks a significant milestone in our efforts to position Bridgestone as a leader in sustainable and advanced mobil- ity solutions. WHERE DO YOU SEE THE TYRE INDUSTRY PROGRESSING IN THE NEXT TEN YEARS? The industry’s aim in the fourth-coming years should be to reduce the environ- mental impact of our operations and manufacturing. At Bridgestone, we aim to achieve carbon neutrality across our value chain and product life cycle by 2050, with 100 per cent sustainable materi- als, to contribute to the global efforts of protecting the ecosystem. We at Bridge- stone believe in a Circular Economy and strive to adopt practices such as redesign, reuse, repair, remanufacturing, and recy- cling, which will contribute to realising organic production and consumption by leveraging new technologies and business models. In the next 3-4 years, we see demand quite strong, so we will continue to invest predominantly in technology because, in the future, we will see more and more EVs, which might require new technology for tyres. So, we are investing in that technology to deliver EV-specific tyres. >>> Stefano Sanchini, Regional Managing Director of Bridgestone Middle East and Africa
28 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM COVER STORY LNME We have been committed to shaping a sustainable future for the mobility sector, innovating, and pioneering tyres, making them more resilient, secure, energy-efficient, connected and digitally developed. Bridgestone has been a strong advocate for adopting electric vehicles, producing tyres and EV tech- nologies, and working on an efficient EV-ready retail and service network. Our digital mobility solutions enable the development of advanced technolo- gies and telematics ensuring sustainable mobility. WHAT ARE KEY FACTORS BEING TAPPED INTO TO ACCOMMODATE DIGITALISA- TION IN THE TYRE INDUSTRY? The key to achieving a sustainable mobility sector are innovations and collaborations. We have undertaken numerous innovations in partnership with relevant companies to realise our joint goals. Moreover, we have joined the Sustainability Network managed by the Dubai Chamber of Commerce and Industry to ensure our active participa- tion in regional sustainability initiatives. We have invested in various research and development activities to explore environmental-friendly sources of natural rubber to assuage the overconcentration of rubber production in several regions. Natural rubber is the raw material used in tyre production and large quantities. We aim at optimising genuine rubber content in guayule shrubs and evaluating applica- tions in different types of tyres and rubber compounds. We are additionally developing innova- tive EV tyres to boost the adoption of electric vehicles. We are happy to report that 30 per cent of new OE fitment development by Bridgestone EMIA in 2020 was dedicated to EVs. Our Ologic technology has been designed for BMW’s all-electric i3 and the Enliten technology, which provides excellent fuel efficiency. Our Virtual Tyre Modelling solution has accelerated our efforts in attaining sustainability. It helps create a digital twin at the development phase, reduc- ing the volume of physical prototypes and physical testing, thus cutting down raw material consumption and product development time. We approach all projects keeping sustain- ability in mind and are making conscious efforts to reduce raw material consump- tion, apply virtual development technol- ogy wherever possible and implement our sustainable tyre technologies. We have been working beyond boundaries to deliver the latest innovative and viable products while enhancing quality and performance. Bridgestone operates intending to be the leader in achieving a waste-free mobility sector and remains dedicated to shaping a sustainable future for the industry. WHAT ARE THE STEPS ARE BEING INCOR- PORATED TO BALANCE ADVANCES LIKE IOT AND AI TO SUSTAINABILITY? Owing to the rapid digital transforma- tion in every sector, the rise in the use of IoT and AI technologies has put forth an evolved Connected, Autonomous, Shared, and Electric (CASE) vehicle in the region. Autonomous cars are projected to hit the 24 million mark by 2024. The transition to autonomous op- erations is expected to impact the tyre industry significantly. These vehicles will
THE FUTURISTIC TYRE INDUSTRY | STEFANO SANCHINI require new and innovative tyres with improved performance, including sen- sors, intelligent diagnostic capabilities, and advanced safety solutions. Bridgestone Group considers CASE a key priority and constantly develops innovations and offerings to meet cus- tomer expectations. We have been committed to achiev- ing a ecological future for the mobil- ity sector and have continuously been transforming our operations to advocate the adoption of electric vehicles. We aim to make electric mobility more efficient by deploying cutting-edge virtual tyre re- modelling and simulation technologies. This helps reduce development time, raw materials consumption, and carbon emission while ensuring accuracy and flexibility. Because of our virtual tyre de- velopment capabilities, we can simulate rolling resistance in actual driving condi- tions, enabling us to design EV tyres that can optimise rolling resistance and increase battery range in real-life situa- tions. We strive to ensure suitable tyres for EVs and make EVs more efficient and accessible. WHAT ARE YOUR THOUGHTS ON URBAN MOBILITY? Due to rapid industrialisation and urbanisation worldwide, the mobility sector faces numerous challenges. The mobility sector in the Middle East is no exception, as it faces urban mobil- ity issues in regional transport and infrastructure development discussions and policies. The region is gradually transitioning to sustainable and con- nected cities, which has increased the need for holistic models to enhance the mobility sector. Several nations in the Gulf region have deployed multi-faceted transportation and mobility management strategies, but unique, feasible solutions are still necessary. While the transformational phases pose various challenges, there are opportunities as well. Bridgestone has been rapidly transforming from a tyre manufacturer to a leading mobility solutions provider to take advantage of the opportunities presented and offer our customers enhanced solutions. To achieve this end, we have been trans- forming five key areas: investment in >>>
30 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM COVER STORY LNME tyre and technology, enhancement of retail and maintenance services, improvement of predictive maintenance capabilities, maintenance and tyres as service-based solutions, and new digital solutions to the market. HOW IS BRIDGESTONE MEA PLANNING TO INTEGRATE URBAN MOBILITY WITH THE EVOLVING POLICIES IN DUBAI AND THE GCC? The automotive industry is witnessing enhanced sustainability and efficiency ow- ing to developments in EV technologies, diversified powertrains, and stricter envi- ronmental policies. With these changes, customer expectations of tyres are also increasing. The UAE has undertaken various global initiatives and internal regulations while attaining its NDCs and promoting ESG compliance and maintainable develop- ments, in line with UAE Green Agenda 2015–2030, the Paris Agreement, the UN Sustainable Development Goals (“SDGs”), as well as the UAE Vision 2021 and Dubai 2040 Urban Master Plan. Carbon emissions can be effectively reduced by using more public transport instead of private vehicles. The Road and Transport Authority successfully reduced 642,000 carbon emissions in 2018. Additionally, the RTA has implemented various initiatives to promote local and federal policies to realise the objectives of the UAE Centennial 2071, which aims at positioning Dubai as a leader in sustain- able practices. Bridgestone has constantly been invest- ing in developing green and intelligent solutions to ensure safety and efficiency in mobility. We recently acquired Azuga, a leading global connected platform, which will help gather data from vehicles and drivers and turn them into information that will assist in enhancing the safe oper- ations of vehicles while reducing cost and risk. We also partnered with Autobahn, a start-up is mobility-focused innovation network, which offers us a new platform to support start-ups and explore oppor- tunities in recent and disruptive models in the mobility sector. It also provides exceptional opportunities to establish a communication channel with a network of relevant industry partners. Moreover, electric vehicles offer Bridge- stone many opportunities to achieve carbon neutrality by 2050 and make the mobility sector more sustainable. Our partnership with leading EV manufac- turing companies enables us to develop premium tyres and EV technologies. We also aim to establish a network of end-to- end EV-ready retail and service centres, which offer maintenance and tyre service for EVs, charging and mobile services, all under one roof. Keeping in line with this, we recently partnered with Fisker, an elec- tric car start-up, to launch an all-electric SUV in several European markets. We also acquired Arvento Mobile Systems, a digital fleet solutions provider that offers fleet management services to customers in Turkey and the Middle East. We aim to streamline operations for fleet owners and drivers by providing ser- vices beyond tyres. Lastly, we will ensure our customers’ convenience, efficiency, and productivity through effective fleet management solutions based on integrated mobile systems and data analytics. HOW DOES THE COMPANY PLAN TO MERGE MODERN DESIGN AND CREATION WITH IMPROVED TECHNOLOGICAL DEVEL- OPMENTS? Bridgestone will shift its focus on the electric vehicle segment considering the automotive industry’s transition to electric mobility. The EV fitments offered by Bridgestone encompass its industry-lead- ing, sustainable technologies that meet the requirements for EVs, such as: > TECHSYN is an innovative solution that helps achieve better wear efficiency and reduced rolling resistance while reducing raw material consumption. > The B-Silent technology reduces tyre noise for driver comfort and ensures sus- tainable and lightweight tyres. > ENLITEN technology assists in reduc- ing 30 per cent tyre rolling resistance by and decreases tyre weight by 20 per cent, which extends EV driving range while lowering environmental impact by improving resource productivity. Among the various issues, EVs face is the vehicle’s weight, which has a significant impact. In this regard, Bridgestone has partnered with multiple car manufacturers to develop High Load (HL) tyres that can support the increased weight of powerful electric and hybrid vehicles. Bridgestone EMIA is introducing the Bridgestone OE tyres, customised for EVs, reflecting its commitment to the future of electric mobility. These tyres have under- gone rigorous testing and have obtained car manufacturers’ approval. It can sup- port the unique features and requirements of EVs and their manufacturers by provid- ing reassurance on the range, control, and tyre life. To support the automotive industry’s ambitions on sustainability, Bridgestone has collaborated with several global EV manufacturers for hybrid and electric vehicles, such as Mercedes EQA and EQB, BMW i3, Fiat 500 EV, Nissan LEAF, Volkswagen’s all-electric ID.3 and ID.4, among others.
LOGISTICS NEWS ME | NOVEMBER 2022 | 31 TELL US ABOUT YOUR RECENT COLLABO- RATION WITH PANATTONI, AND HOW IS IT GOING TO IMPACT OPERATIONS IN THE MIDDLE EAST. Bridgestone’s collaboration with Panat- toni is expected to accelerate the growth and development of the Burgos plant. This new logistics facility will serve as a European distribution centre, enabling increased exports to the MEA region (Middle East and Africa). The Burgos plant is a strategic location for the company and reflects our com- mitment to developing regularly. Being in partnership with Panattoni provides us with the assistance of a leader in indus- trial logistics, which will ensure a high technological and environmental standard consistent with Bridgestone’s projects while further increasing the export capac- ity of the plant. WHAT’S THE FORESIGHT FOR BRIDGE- STONE MEA IN THE NEXT FIVE YEARS? ‘Solutions for your journey is more than just a marketing tagline at Bridgestone. It also shows our dedication to offering organic solutions by leveraging innovative technologies and advanced data analytics for the mobility sector. The COVID-19 pandemic has accelerated digital transfor- mation, and the automotive industry is not exempt. Bridgestone is prepared to de- liver practical, innovative, and sustainable mobility solutions in the post-pandemic world. Bridgestone’s digitalisation agenda en- compasses adjusting to evolving consumer behaviour. We aim to explore futuristic business models actively, as companies that embrace technology today can be re- silient enough to meet the dynamic digital needs and consumer preferences. The nations in the Gulf regions, particularly in the Middle East, as well- accustomed to adopting unconventional mobility solutions due to fast government decision-making processes and increas- ing focus on modern urban transporta- tion modes. Additionally, the region has been implementing various programs for development and transformation to ensure a competitive position globally, which will further boost the establishment of a modern mobility ecosystem. Bridgestone Group has been devoted to contributing to global efforts in achieving sustainability. To evolve into a sustainable solutions company through various cor- porate activities, the group takes multiple measures to impact customers and society positively. The United Nations’ Sustainable De- velopment Goals (SDGs) aim to tackle prevalent social, environmental and economic challenges by 2030 to ensure a sustainable future. As the world makes efforts to realise these common goals, the Bridgestone Group will also contribute to society as a sustainable company, in line with the SDGs. It aims to leverage its knowledge and expertise to help address general global issues. Various companies have always been working to offer seamless mobility experi- ences, and there will be more enhance- ments and developments in this regard. New solutions and services are expected to be implemented to build a data-centred and sustainable transport ecosystem. We can expect highly integrated and efficient transport systems with automated trans- port solutions. THE FUTURISTIC TYRE INDUSTRY | STEFANO SANCHINI LOGISTICS NEWS ME | NOVEMBER 2022 | 31 “THE AUTOMOTIVE INDUSTRY IS WITNESSING ENHANCED SUSTAINABILITY AND EFFICIENCY OWING TO DEVELOPMENTS IN EV TECHNOLOGIES, DIVERSIFIED POWERTRAINS, AND STRICTER ENVIRONMENTAL POLICIES.”
32 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM L ogistics News ME interviewed Dhruvil Sanghvi, Founder and CEO of LogiNext, one of the biggest global SaaS (software as a service firm) leaders in automation solutions – with a primary focus on supply chain and logistics. Launched in 2014, LogiNext promises to provide full-stack logistics services, including first-mile, middle-mile, and last-mile. With the expanding e-commerce, start-ups, CEP, and food delivery app industries, these logisti- cally operating companies tend to open doors to more significant opportunities for expansion. Here’s what Dhruvil Sanghvi has to say on shaping the logistics industry… TELL US ABOUT LOGINEXT AND YOUR LO- GISTICS AND SUPPLY CHAIN SOLUTIONS. LogiNext is a SaaS-based delivery management platform that enterprises across industries can use- F&B, Retail, CEP (Courier, Express & Parcel), FMCG and Transportation. LogiNext Mile is the flagship product used by brands to digitize, optimize, and automate logistical operations. Be it first-mile movement from a warehouse to a hub, middle-mile movement be- tween hub to hub or the last mile from hub to the end customer, the LogiNext platform can be used to simplify end- to-end logistics. WHICH ARE THE KEY TECHNOLOGIES INFLUENCING THE LOGISTICS SECTOR TODAY? Several technologies like IoT, autono- mous robotics, artificial intelligence, and machine learning influence the logistics sector. Areas like inventory management with capacity utilization, real-time visibility, automated order allocation with route optimization and delivery driver management are specific spaces where technology has brought in a transformation. All these supply chain technologies help digitise pro- cesses and automate manual processes to increase efficiency. ACROSS THE DELIVERY CHAIN, THE LAST MILE IS THE MOST EXPENSIVE AND TIME- CONSUMING SEGMENT OF THE JOB. HOW CAN TECHNOLOGY MAKE THE LAST MILE AFFORDABLE? The last mile accounts for about 53% of the entire delivery chain. There are several reasons for alterations, IN CONVERSATION LNME LOGINEXT’S DHRUVIL SANGHVI TALKS ON HOW SAAS IS DEVELOPING THE LOGISTICS INDUSTRY
LOGISTICS NEWS ME | NOVEMBER 2022 | 33 and technology is aid with several reasons. Firstly, the end customer is not at home/failed delivery attempt: 5% of all orders fail to get delivered on the first attempt. Technology can support fixing this with a driver chat or real-time communication feature whereby a shopper can inform the driver or dispatcher that they aren’t home and provide an alternative time window. Secondly, many brands don’t clearly understand how many drivers are required for efficient deliveries. A hybrid fleet management technology solves this issue by forecasting demand, showing pre-order ETA, positioning drivers in areas of high order density and dynamic order allocation. Moreo- ver, for a better customer experience, implementing technology can catalyse a better delivery experience – this can lead to customer retention and repeat orders as the system already knows customer preferences. Lastly, it suf- fices drivers to optimize delivery with a route optimization algorithm, as it takes several patterns like weather con- ditions, traffic conditions and customer preferences to assign and deliver orders the most optimum way. WHAT IS LOGINEXT’S SOLUTION TO REM- EDY HIGH LAST-MILE DELIVERY COSTS? LogiNext Mile is a DIY platform which can be set up in a matter of minutes. There are hundreds of APIs through which an enterprise can start using LogiNext on top of their existing systems without any hassle. Apart from this, the carrier integration marketplace is a unique feature of the LogiNext platform, which allows brands to add carriers at the click of a button, enabling them to deliver much more efficiently in the last mile. WHAT ARE SOME OF THE CHALLENGES LOGINEXT FACES TODAY? One of the logistics sector’s biggest challenges is the lack of digitization and change management. We’re putting in much effort to highlight the benefits of technology and how it can create a positive impact on businesses. Digi- tization and sustainability are on the agenda of many enterprises, but more emphasis is required, and brands need to move quickly to stay in line with customer expectations and the realities of modern times. COMPARED TO THE REST OF THE WORLD, HOW DOES THE MIDDLE EAST FARE RE- GARDING LOGISTICS AND SUPPLY CHAIN EFFICIENCIES? In our experience, the Middle East is one of the fastest-growing regions in terms of adopting technology in the supply chain. The North American market is the most developed, but the Middle East and APAC are catching up fast, especially with region-specific in- novations. We expect the Middle East to lead the way regarding premium shipping. IN YOUR OPINION, HOW CAN THE LOGIS- TICS SECTOR BECOME MORE EFFICIENT – ESPECIALLY AS WE’RE SEEING A HIGH DEMAND FOR SAME-DAY/ 60 MINUTES DELIVERY TIMES? Technology and automation are the way forward. Same-day delivery and quick commerce require a lot of information and data based on which efficiency can be improved. Forecast- ing demand, accounting for peak hour sales and fluctuations, advanced route optimization and the rise of dark stores are some trends paving the way for more efficiency in the logistics sector. LASTLY, WHAT’S NEXT FOR LOGINEXT IN THE REGION? We have more than 20 enterprise customers in the Middle East region, and the number is growing fast. We have an office in Dubai, and we plan to double down our regional efforts to deliver more success stories. The Middle East is a key market for growth for LogiNext, and we’re actively hiring and increasing customer support in the region. We aim to grow at least by 100% in the coming year in the Middle East. HOW SAAS IS DEVELOPING THE LOGISTICS INDUSTRY “LOGINEXT MILE IS A DIY PLATFORM WHICH CAN BE SET UP IN A MATTER OF MINUTES. THERE ARE HUNDREDS OF APIS THROUGH WHICH AN ENTERPRISE CAN START USING LOGINEXT ON TOP OF THEIR EXISTING SYSTEMS WITHOUT ANY HASSLE.”
34 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM CEO’S POV LNME W ith a year of operation in the region and a core purpose to create and deliver a streamlined and distinctive supply chain sector, Savoye Middle East has been able to leave its mark via its services. Their primary service is to provide comprehensive bespoke technology and software solutions for all supply chain requirements. From order placing to delivery, cloud services to packaging, Savoye Middle East creates and integrates specialized solutions for Supply Chain and logistical operations. Additionally, the company is always on a constant sphere for innovation to meet customer needs, giving them a better understanding of the process and assisting them in standing out from the crowd. Here, we bring forward insights about the company and Alain Kaddoum’s plans for the business’s operations. Alain Kaddoum At Savoye Middle East Joining Savoye last year was a significant milestone in my career. The company is a leader in supply chain software and intra-logistics hardware technologies, meeting all customer requirements for manual, semi-mechanised, mechanised, highly automated, or robotised installations. When Savoye expanded into the Middle East as part of its long-term strategy to become one of the region’s leading providers of supply chain solutions, the company brought me on board, believing in my vast experience and market knowledge. I firmly believe that the quality of an organisation’s workforce is critical to its growth. Consequently, one of my top priorities is to build a solid self-dependent local team by hiring top talents and experts from the region. As part of the initial phase of our development plan in the Middle East, we also reached out to existing and potential customers for brand awareness. I find the logistics and supply chain sector’s future promising, especially given the ongoing digital transformation in the Middle East. With the rapid adoption of technological tools across several sectors, I am confident that Savoye is well-positioned to meet the region’s evolving needs and interests. Savoye Is Redefining Automation In Logistics There are countless processes in the supply chain, including procurement, distribution, customer service, and reverse logistics, all of which have the potential for automation. Today, we can see a need for timely and consistent delivery as the business landscape becomes more competitive. Automation is now one of the most popular technologies among industry stakeholders, as it speeds up logistical operations, meets consumer demands, and saves significant money and time. We at Savoye strive to achieve the same vision with our solutions. Our automation systems, such as FLEEXEE mobile robots, move autonomously throughout the warehouse, saving operators from trips between zones and cart handling fatigue. Similarly, our HAIPICK system includes autonomous and intelligent functions such as robots capable of picking and placing boxes on storage shelves from five to seven metres high and carrying up to eight loads to serve goods-to-person picking stations continuously. Keeping with our long-term goals of transforming logistics automation, Savoye will continue to serve customers’ needs with highly innovative, agile, and rapid delivery of FUTURE OF LOGISTICS How will logistics look in the future? An insightful interview with Alain Kaddoum, Managing Director of Savoye Middle East
LOGISTICS NEWS ME | NOVEMBER 2022 | 35 REDEFINING AUTOMATION goods. Eventually, we deliver quality services that matter today and into the future by combining robotic innovation with human intelligence, satisfying customer needs, reducing costs, and improving supply chain efficiency across the globe. Future Plans At Savoye, we strive to reach as many potential clients as possible in the logistics and supply chain sectors, enabling them to provide innovative and sustainable solutions. We also specialise in developing the region’s automation market by collaborating with local organisations to promote joint development and other innovative projects. As part of our marketing strategy, we will continue to share our expertise by participating in supply chain and logistics events, webinars, and publishing white papers. Furthermore, we intend to expand into other GCC countries, including Saudi Arabia, which is also among our key objectives for the future. Biggest Challenges As a logistics solutions provider, it is crucial to keep up with our clients’ challenges, which drives us to maintain a proper balance of investments in organisation, processes, and technology. The changing landscape necessitates that organisations like ours focus on innovative solutions that meet customer demands, improve services, drive cost reductions, and reduce environmental risks. However, Savoye’s next challenge will be penetrating the ASEAN market on a larger scale. Greatest Opportunities For Savoye In The GCC All GCC countries are thriving, with the rising customer demand fuelling growth in the supply chain and logistics sectors. Due to its strategic location along the Asia-Europe trade route, the GCC has become a fundamental unit in the global circulation of commodities. However, since our inception in 2021, the UAE has offered us promising opportunities that have enabled us to perform well in terms of growth, business development, and connections while also ensuring superior customer satisfaction through world-class hardware and software technology. We believe the UAE has always been and will continue to be a vital market for us, primarily as it invests in infrastructure and road capabilities to meet the growing demands of global trade. We also look forward to new possibilities in the KSA market and other Middle East countries in the future. Current Operations One of our key specialities and strengths is the abilities is to offer solutions to a broad range of sectors. We are currently working on several projects for various industries, including food, high-tech, textile, e-commerce, and 3PL (Third-Party Logistics) firms. “At Savoye, we strive to reach as many potential clients as possible in the logistics and supply chain sectors, enabling them to provide innovative and sustainable solutions.” Alain Kaddoum, Managing Director of Savoye Middle East
36 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM RETAIL LNME R eliance Freight Systems is establishing itself as a provider of complete logistics solutions. Reliance began as a basic service provider for road, air, and sea freight operations, and has since developed into a corporation with a depth of knowledge in delivering, offering, and implementing integrated logistics solutions and catering to supply chain demands. Shedding light on retail logistics, Logistics News ME spoke to Sanjay Berry, who gave an in-depth analysis of the industry. Post-Pandemic Shift We have seen that the pandemic has made the supply chain industry more resilient. During the pandemic, government regulations became stricter regarding permitted vehicles and goods entry. This led to a rise in demand for authorized providers. Even official forwarders had limitations in terms of resources. This raised the need for better planning of resources and more efficient execution in terms of consolidation and route planning to complete the task within the stipulated timeframe. Correspondingly, the biggest challenge in retail logistics is designing. Predicting demand has never been the same since the pandemic. After planning, the next part is ensuring that the supply is delivered on time and per requirements. The biggest challenge has been to meet these requirements to ensure the supply meets demand. Automation In Retail Logistics And Supply Chain Automation is essential but should be more comprehensive than a single module. The ideal strategy to deploy automation is first to identify repeated operations, create a process, and then include technology to speed up the process. While integrating new technology, the software should be capable of fulfilling future requirements rather than being constrained to present ones. Last-Mile Delivery The “last mile” of delivery is the final stage of the procedure when the shipment arrives at the buyer’s door. Last-mile delivery is the most expensive and time-consuming shipping process and is critical to customer satisfaction. If you’ve followed a box online in real-time and seen that it was “out for delivery” for what seemed like an eternity, you already know that the final mile problem is inefficiency. This is because the last leg of cargo often comprises many stops with small drop sizes – which has significantly gained momentum in retail logistics. Furthermore, last-mile delivery has increased due to the increase in Quick Commerce (Q-commerce). COVID-19 has pushed for contactless delivery and a faster turnaround time. Among the steps taken to reduce delivery time are, first, the establishment of dark stores and their regional utilization; second, the study of current market and demand patterns; third, the creation of ways and possibilities to store fast-moving goods with easy access; and, finally, the establishment of dynamic delivery paths via technology to ensure better TAT (turnaround time) and efficiency. Future For Retail Logistics The retail logistics business is here to stay. However, Q-commerce is the way of the future. The need for a large warehouse to keep merchandise will diminish, and individuals will shift to smaller warehouses and store inventory in dark warehouses scattered over the region. Inventory distribution will be complex, necessitating improved demand forecasting technologies. Brick-and- mortar businesses will never perish, but they will adapt to be more than simply a store. WHERE IS THE RETAIL LOGISTICS MOVING TOWARDS? Giving us insights, Sanjay Berry, Managing Director of Reliance Freight Services, walks us through the nitty- gritties of retail logistics
LOGISTICS NEWS ME | NOVEMBER 2022 | 37 WHERE IS THE RETAIL LOGISTICS MOVING TOWARDS? “The ideal strategy to deploy automation is first to identify repeated operations, create a process, and then include technology to speed up the process.” Sanjay Berry, Managing Director of Reliance Freight Services
38 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM G rocart is an innovative B2B wholesale food & grocery marketplace that allows sup- pliers to sell and deliver their products to small businesses like groceries and super- markets. Grocart will fill the gap between manufacturers, wholesalers, and retailers in the retail industry, a one-of-a-kind hybrid model. It fuels the retailers ordering process by allowing conveni- ence and speed, with reasonable wholesale prices for more than 30,000 products. Moreover, Grocart aids its suppliers in automating the order collection process, increasing profitability, and removing risk with extra sales from all goods. Founded by Hussein Hosni, Co-Founder and CEO, and Nesma Zaghow, Co-Founder and COO, who both come from a pharmaceutical background – they have combined their profes- sional skills to enable a transformation in the grocery market landscape. Or rather, synchronis- ing itself as a ‘one-stop-shop,’ which usually are the backbone of every small and large community around the globe. TRANSFORMING UAE SMART B2B TECH START-UP GROCART IS SHAPING RETAIL LOGISTICS BY CONNECTING GROCERY SUPPLIERS AND WHOLESALERS LNME START-UP THE RETAIL SUPPLY CHAIN LOGISTICS
LOGISTICS NEWS ME | NOVEMBER 2022 | 39 Grocart, a modern, tech- savvy online application platform, enables FMCG businesses to obtain their goods efficiently, economi- cally, and seamlessly with a few clicks. The start-up has fulfilled over 10,000 orders and formed collaboration agreements with market- leading vendors, with over 3,000 commodities from over 200 brands on Grocart. After a successful debut in the UAE, the firm intends to extend its smart B2B operations across the MENA region, including Saudi Arabia and Egypt, which are home to many small shops. For example, more than 90% of small stores in Saudi Arabia are in the retail sector. One may not realise the importance of a mini-mart in everyday life; however, they play a vital role in pro- viding one with all day-to- day necessities. Hussein and Nesma asked, ‘How can we help these small grocery stores to thrive?’ Exploring a potential, they discovered the B2B wholesale sector in the UAE and MENA to be very complex, with several con- straints for suppliers and distributors. Poor reach or finance constraints result in long supply chain cycles for the smaller grocery sector. Furthermore, the market discrepancy was espe- cially noticeable during the COVID-19 epidemic, when the demand for small mer- chants was higher, but they did suffer due to slower supply chain logistics. “Grocery stores are found in every community, big or small, in remote areas and busy streets. There is something about them that is so charming and nostalgic,” added Hus- sein Hosni, Co-Founder & CEO of Grocart. “When the pandemic hit, they remained open, but we noticed some struggled with deliveries or getting items on time. That is why we wanted to create a seamless solution to help them thrive and survive with a click of a finger; after all, they are our sup- ply line in a time of crisis, in the middle of the night or just because it’s always close by.” The platform, which incorporates cutting-edge technology, can potentially optimise the country’s B2B wholesale market for suppliers and distributors, allowing them to distrib- ute their resources more efficiently and without dif- ficulty. Grocart plans to hit 20,000 orders in the next few months and secure a fresh round of funding for its MENA growth. Grocart has bridged the supply chain gap by connecting merchants with manufacturers and distributors and provid- ing them with rapid delivery and access to over 30,000 items. Grocart also provides flexible finance alternatives. The platform distinguishes itself by pro- viding storage, fulfilment, and logistics assistance to all suppliers and distribu- tors, lowering operational costs by more than 30% and providing 100% coverage with 10X quicker supply. Grocart system can help handle inventories with suppliers, allowing them to access thousands of consumers and market their diverse product offerings. GROCART, A MODERN, TECH-SAVVY ONLINE APPLICATION PLATFORM, ENABLES FMCG BUSINESSES TO OBTAIN THEIR GOODS EFFICIENTLY, ECONOMICALLY, AND SEAMLESSLY WITH A FEW CLICKS. TRANSFORMING THE RETAIL SUPPLY CHAIN LOGISTICS Nesma Zaghow, Co-Founder and COO Hussein Hosni, Co-Founder and CEO,
40 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM ENERGY LNME A l Masaood’s Group Industrial participated in the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), between 31st October and 3rd November, at ADNEC. Al Masaood, in their 23rd consecutive participation in ADIPEC, showcased several innovative products and integrated tech-powered solutions, emphasizing sustainability in various sectors such as Energy, Power, Petrochemicals, and Utilities. From within the Group Industrial, Al Masaood featured the Projects & Engineering Services Division (PESD), the Power Division, the Commercial Vehicle & Equipment Division (CV&E), and the Rentals Division. They hosted the Divisions and some Principals and Technology Partners, including GSW, S&W, 4IR Solutions, BBV, KSB, KSB SupremeServ, Schroedahl, Quartzelec, and Nidec Leroy-Somer. Hani El Tannir, Chief Executive Officer of Al Masaood Group Industrial, said, “We are looking forward to establishing many fruitful partnerships during ADIPEC that will support us in expanding our footprint to new key markets of interest. Al Masaood will leverage new growth potential by working with our partners and continue providing our respective customers with high-quality solutions and technologies. The latest developments demonstrate our insistence on working with leading international technology to serve and expand. This is in keeping with our commitment to contribute to the growth and development of the Abu Dhabi and UAE economy.” During the exhibition, PESD showcased several existing solutions and new technologies to foster sustainability and new technology and signed partnership agreements with various global brands to bring innovative technology-driven solutions to the UAE market. The division will also support the local manufacturing sector in 2023 with multiple collaborations and initiatives in line with the UAE’s Industrialization strategy and ‘Make it in the Emirates’ campaign. Through such partnerships, PESD aims to be a one-stop solution for the industrial sector in the UAE, offering solutions and expertise on static equipment, process equipment, and rotating equipment for both existing and greenfield projects. Khursheed Alam, Senior Manager of PESD, Al Masaood Group, said, “ADIPEC presents an ideal global platform for us to showcase our portfolio of integrated energy solutions and our contributions to the overall advancement of the UAE’s energy sector. These solutions are being adopted by multinationals in their large-scale engineering projects, with some of these landmark projects being considered significant to the UAE’s continued socio-economic progress. PESD has been providing solutions and expertise to several key projects led by international EPCs, including NPCC, Saipem and Robt Stone, as well as offering unique solutions to the ADNOC Group, Utilities, Nuclear and other vital sectors.” AL MASAOOD GROUP SHOWCASED INNOVATIVE AND SUSTAINABLE SOLUTIONS OF GLOBAL PARTNER BRANDS AT ADIPEC 2022 “ADIPEC presents an ideal global platform for us to showcase our portfolio of integrated energy solutions and our contributions to the overall advancement of the UAE’s energy sector.”
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42 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM P ayTabs is an award-win- ning payments solutions company founded by Saudi entrepreneur Ab- dulaziz Al Jouf. PayTabs has produced and exported a slew of game-changing solutions over the years, initially funded by Saudi Aramco’s “Waed” and then by Saudi private investment. These include mobile apps, hotel, government, education, airline, travel, transportation, and billing solutions that connect the MENA region’s multibillion-dollar corpo- rate market chain. PayTabs has announced plans to buy a 100% share in Digital Pay in a historic move. According to the terms of the transaction, Digi- tal Pay will serve as PayTab’s main POS terminal product, enabling and strengthening millions of e-commerce and retail enterprises while also benefiting brick-and- mortar establishments, hyper- markets, and department stores. Similarly, the acquisition will enable PayTabs to complete its entry into both online and offline payment capabilities, increasing its market footprint following the Kingdom’s commitment to Vision 2030. The goal is for both organi- zations to increase their bottom line, revenue, transaction volumes, and transaction number. Furthermore, the MoU, which intends to increase synergized super payments, comes when digital disruption has reached a fever pitch in the Kingdom, with Saudi Payments serving as both the foundation and driving force. Saudi Payments has long spurred growth in the Kingdom with its leading payment infrastructure brands, SADAD, Sarie, Esal, and mada, to support the payments ecosystem through safe, depend- able, interoperable, and accessible solutions. Mr Tamim Alqusair, Senior Vice President, Business in Saudi Pay- ments, said: “Saudi Payments aims to enable entities operating in the fintech space once players pass all needed testing and certification requirements successfully. Our objective is to maintain com- petitiveness between payments players through all domains of e-invoicing, e-commerce, point of sales and others. The past short period witnessed the suc- cessful enrolment of more than 30 players in the domains of e-commerce and POS to provide the needed support for these key sectors to help them grow and foster the Kingdom’s leading position as a payment hub for the region.” Additionally, PayTabs will now cater to more retailers and traditional businesses that want to offer payment accept- HOME-GROWN SAUDI BRANDS PAYTABS AND DIGITAL PAY E-MONEY MERGE TO CHAMPION THE DIGITAL PAYMENT ECOSYSTEM LNME
LOGISTICS NEWS ME | NOVEMBER 2022 | 43 ance via POS terminals after conquering the MENA payment space with an online payment gateway acceptance and expanding its portfolio to include Soft POS tap-to-pay solutions and, more recently, full-stack payment orchestration and social commerce. By making it easier for shops to accept payments, both companies empower merchants with digital payment options, supporting and propel- ling the Saudi Vision 2030. This move will strengthen PayTabs’ objective to serve the area with a comprehen- sive, best-in-class payments ecosystem platform. This includes turbocharged, fric- tionless payment experiences for companies throughout the region’s core sectors, from travel and trade to hospitality and healthcare. Regarding the MoU, Abdulaziz Al Jouf, PayTabs founder and CEO, says, “We aim to be the foremost infinite payment platform equation that accelerates the Kingdom’s economy towards Vision 2030. Every merchant wants you to solve his prob- lem – and every payment solution, PayTabs orches- trates is essentially born out of a problem in the market. We’re offering merchants of all sizes and scale a single platform and dashboard for all their next-generation payment processing require- ments – be it virtual, physi- cal, or digital. Online and in-person retailers, subscrip- tion businesses, software platforms and marketplaces, and everything in between will emerge winners from this powerful dynamic.” The more significant impact of the deal is that omnichan- nel payments will now be a reality. Whereas Digital Pay, which pioneered the POS business in the Saudi market in an effective and timely manner, will continue to extend its footprint by delivering POS to online retailers in different PayTabs markets. Any busi- ness may now profit from digital payment acceptance solutions in the web sector and brick-and-mortar offline payments. Abdulwahab F. Alahmari, Chairman of Digital Pay, adds, “As an innovative Fin- tech company driving digital payments in the Kingdom of Saudi Arabia, the proposed merger with PayTabs will enable us to expand our customer and merchant reach across the region. We see limitless opportunity, growth, and potential in this upcoming alliance.” The planned combination with Digital Pay is another crucial step in PayTabs’ ef- forts to provide e-commerce merchants and enterprises in the area with unsurpassed best-in-class payments super platform. The merger deal’s worth is yet unknown. The overall transaction value in the Digital Payments category is expected to reach $42.25 billion in 2022, according to Statistica. The overall transaction value is predicted to increase at an annual pace. The total trans- action value is expected to show an annual growth rate of 13.16% or a projected total of $78.40 billion by 2027. PAYTABS AND DIGITAL PAY Abdulaziz Al Jouf, PayTabs founder and CEO Abdulwahab F. Alahmari, Chairman of Digital Pay LOGISTICS NEWS ME | NOVEMBER 2022 | 43
44 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM ECOMMERCE LNME N etwork International, one of the primary digital commerce facilitators in the Middle East and Africa (MEA), and Mastercard, the global payments industry’s technology leader, have launched a 3-D Secure (3DS) 2 authentication solution for e-commerce transactions for UAE enterprises and beyond. Mastercard’s state-of-the-art Smart Interface product powers the breakthrough approach. Andrew Key, Group Managing Director – Acquiring at Network International, says, “As the region’s leading payment solution provider, we continue to enhance payment ecosystems by adopting best-in-class technologies in the markets we operate in. Enabling 3DS 2 across our e-commerce merchant network is part of our long-term commitment to creating a safer, seamless purchase experience for merchants and their consumers.” As online shopping becomes more popular, companies must be able to combat fraud while providing consumers with seamless experiences. 3DS 2, the second generation of 3-D Secure technology, is a robust authentication tool that examines a plethora of critical data points, including the merchant’s contextual data, to give an enhanced layer of fraud prevention. The 3DS 2 will be available through Network’s unique payment gateway N-Genius™ Online, which will help e-commerce enterprises to decrease risk and protect their consumers from payment fraud. Furthermore, 3DS 2 will provide consumers with a streamlined, digital payment route and expanded compatibility for existing devices, enhancing the checkout process and minimizing cart abandonment. Lastly, Gina Petersen, Country Manager, UAE & Oman, Mastercard, adds, “In an increasingly connected world, it is vital to continually drive innovation and partner to build and secure our digital ecosystem. We are delighted to join forces with our longstanding partners at Network International to launch 3-D Secure 2 authentication for merchants as we deliver an added layer of security while offering seamless payment experiences to consumers.” NETWORK INTERNATIONAL PLUS MASTERCARD TO PROVIDE NEXT-GENERATION AUTHENTICATION SOLUTIONS TO UAE E-COMMERCE MERCHANTS Andrew Key, Group Managing Director
46 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM CARGO LNME S kyTeam Cargo, the global Cargo alliance, revealed Teddy Zebitz, Chief Executive Officer of Saudia Cargo, has been re-elected to the SkyTeam Cargo Executive Board for a second straight term. The appointment was approved during a recent conference in London of the Cargo alliance’s cargo leaders, who manage SkyTeam Cargo’s worldwide strategy. Mr Zebitz’s re-election means he will strategically continue working the SkyTeam Cargo board for another two years. Teddy Zebitz, CEO of Saudia Cargo, said, “I am honoured to have been re-elected to the Cargo Executive Board and look forward to paving the path for SkyTeam Cargo’s success. We are proud of how much we have accomplished in the past two years, and we have set strategic goals in place for the near future that will further elevate SkyTeam Cargo’s global position as the largest cargo alliance. We will continue to empower our people while collaborating with our customers and partners, providing innovative and customized solutions to help them achieve their goals and realize their ambitions.” Teddy Zebitz has over 40 years of worldwide industry experience, and before directing Saudia Cargo, he served in China, Southeast Asia, the United States, and Europe. SkyTeam Cargo’s Top Board will benefit from his significant leadership expertise in executive roles at SAS and Emirates Airlines. TEDDY ZEBITZ IS RE-ELECTED TO CHAIR SKY TEAM CARGO ALLIANCE “WE HAVE SET STRATEGIC GOALS IN PLACE FOR THE NEAR FUTURE THAT WILL FURTHER ELEVATE SKYTEAM CARGO’S GLOBAL POSITION AS THE LARGEST CARGO ALLIANCE.” CEO OF SAUDIA CARGO “WE HAVE SET STRATEGIC GOALS IN PLACE FOR THE NEAR FUTURE THAT WILL FURTHER ELEVATE SKYTEAM CARGO’S GLOBAL POSITION AS THE LARGEST CARGO ALLIANCE.” “WE HAVE SET STRATEGIC GOALS IN PLACE FOR THE NEAR FUTURE THAT WILL FURTHER ELEVATE SKYTEAM CARGO’S GLOBAL POSITION AS THE LARGEST CARGO ALLIANCE.”
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48 | LOGISTICS NEWS ME | NOVEMBER 2022 WWW.CBNME.COM HUMAN RESOURCES LNME A BS, one of the recognized global providers of clas- sification and technical consultancy services to the marine and offshore sectors, is dedicated to defining safety and design excellence standards. ABS collaborates with industry and clients to provide accurate and cost-effective compliance, improved performance, and operational efficiency for mari- time and offshore assets, focusing on the safe and practical implementation of innovative technology and digital solutions. Naval industry profession- als gathered at the annual ABS Middle East Regional Committee Meeting to discuss the latest breakthroughs in sustainability and digital classifications, regulatory changes, and market trends. “ABS is pioneering new sustainability strategies and services to support our clients and members through their decarbonization journey, said Vassilios Kroustallis, ABS Vice President, Global Business Development. “As a leader in classification in the Middle East, our committee includes the diverse exper- tise of many knowledgeable stakehold- ers, which is a powerful resource to focus on regulatory and technological challenges.” Additionally, Kroustallis delivered a strong report card of ABS fleet safety performance, underscoring ABS’ focus on safety and its mission. The members also heard how the ABS- classed fleet had grown to 277 million gross tons and secured the number one position in the global order book share. “ABS and ADNOC Logistics and Ser- vices have been developing their part- nership in new construction projects and decarbonization, with the recent delivery of the ABS-classed VLGC ‘Al Ain’ from Jiangnan Shipyard, China, and the award of ADNOC L&S Fleet Decarbonization Strategy project. We look forward to this partnership developing further,” added Captain Abdulkareem Al Masabi, CEO of ADNOC Logistics and Services and Chairman of the ABS Middle East Regional Committee. Kroustallis pro- vided a solid report card on ABS fleet safety performance, emphasizing ABS’ commitment to safety and purpose. Members were informed that the ABS- classed fleet has risen to 277 million gross tons, securing the top spot in the worldwide order book share. Commit- tee members were briefed on the most recent regulatory changes, as well as a thorough overview of the sector’s sus- tainability concerns and ABS’s services for the industry. They were given an overview of the current industry trends and the future of classification, with briefings on the latest ABS technology advancements and ground-breaking developments in the field of the digital class, as well as how ABS is progressing with its in- dustry-leading approach to continuous learning and improvement to prepare its workforce better. Lastly, the com- mittee meetings allow ABS members, including owners, operators, charter- ers, and industry executives from flag administrations, owner organizations, shipbuilding, and insurance sectors, to meet with ABS officials and discuss industry challenges and advance- ments. These conferences are critical to continue consulting with the industry to address technical, operational, and regulatory issues. FROM THE MIDDLE EAST TO DISCUSS TECHNOLOGY ADVANCES AND LATEST UPDATES IN DIGITALIZATION AND SUSTAINABILITY STRATEGIES ABS UNITES MARITIME INDUSTRY LEADERS
NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio. NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications. DRIVE THE NEW WAY
Free Nominations are Open for Pioneering Engineering Project Best Engineering Services or Consultancy Company Best Construction Company Best Industrial Company Leading Personnel Award Outstanding Engineer Award Future Engineer Award Outstanding Student Award To learn more and nominations, visit our website: www.ecea.ae or contact: Suhail.Saleh@ecea.ae Individuals Legal Personality Deadline 14th October 2022 7t h D e c e m b e r 2 0 2 2