Logistics News
Page 1 / 40
C A S E S T U D Y Flavouring the world through better logistics integration B 2 B E C O M M E R C E Growth of eCommerce in the F&B industry O P - E D The backbone to a century of motoring evolution CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE SEPTEMBER 2021 THE GENERAL MANAGER AT AL MASAOOD - TBA DIVISION reveals how the company is at the forefront of delivering innovation-driven solutions to the market and why safety is the division’s top priority SALAH ADIB ON SAFE GROUND
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
LOGISTICS NEWS ME | SEPTEMBER 2021 | 3 ON SAFE GROUND 14 FREIGHT FORWARDING LESSONS LEARNED FROM THE PANDEMIC Amadou Diallo, CEO of DHL Global Forwarding Middle East and Africa, shares how COVID-19 holds opportunities for digitalisation, globalisation, and the future of logistics 24 OP-ED LUBRICANTS - THE BACKBONE TO A CENTURY OF MOTORING EVOLUTION Fausto Lupone, Automotive Sector Expert at Petronas Lubricants International, writes how lubricants is inseparable from motoring 32 CASE STUDY FLAVOURING THE WORLD THROUGH BETTER LOGISTICS INTEGRATION Lee Michael Sissons, Regional Head, APA Ocean Management, A.P. Moller-Maersk, reveals how the shipping firm is providing end-to-end logistics solutions to garlic producers in China 34 SUPPLY CHAIN STRENGTHENING THE AUTOMOTIVE SUPPLY CHAIN Khaled AlShami, Senior Director, Solution Consulting, Middle East & Africa, Infor, writes why building trust and visibility across the automotive supply chain is crucial 38 AUTOMATION IMPROVING WAREHOUSE AUTOMATION VALUE Developing a strategy for keeping automation systems and software current and in good working order is essential to minimizing risk and maximizing equipment performance The General Manager at Al Masaood - TBA Division reveals how the company is at the forefront of delivering innovation- driven solutions to the market and why safety is the division’s top priority Salah Adib 18 IN THIS ISSUE 24 34
4 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM Igor Nikolenko, Co-founder & CEO of SupplyMe, tells us about the surge in online food sales and how the advent of technology and the need for personalized online experiences has created new dynamics in the ever- evolving F&B industry (read more on pages 30-32). Furthermore, logistics companies across the globe are heavily investing in warehouses and logistics infrastructure to cater to the burgeoning demand. The eCommerce sector in the GCC, especially the UAE and Saudi Arabia is witnessing a spike in online sales. The Abu Dhabi Investment Office (ADIO) recently announced financial and non-financial incentives as part of its Dhs2 billion (USD545 million) Innovation Programme for three companies, one of which is Lyve, a UAE-based logistics solutions and technology company. In Dubai, a dedicated eCommerce free zone has been set up to offer seamless solutions to businesses to drive the growth of licensed eCommerce companies. Dubai CommerCity has already succeeded in leasing 30% of its facilities within a period of only two months in the first part of the development phase of the free zone, which extends over an area of 2.1 million sqft and backed by an investment of Dhs3.2 billion. All rights reserved © 2021. 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 T he COVID-19 pandemic and digitalisation has further fuelled the eCommerce sector. We’re beginning to see increased demand for online purchases across multiple sectors. Recently, JD Property, a subsidiary of China’s eCommerce firm JD.com, revealed that it is purchasing a stake in China Logistics Property Holdings Co. for USD2.1 billion. This move is said to give JD Property an edge over its rivals in China’s already competitive market. There are also new players entering the eCommerce domain, food and beverage companies for example. Jochebed Menon Editor, Logistics News Middle East jochebed@bncpublishing.net SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact sales@bncpublishing.net T +971 50 440 2706 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 Keep up to date with all the latest news, features and much more on our website and social media platforms. CBNME.COM CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME EDITOR’S NOTE LNME CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 BUSINESS DEVELOPMENT DIRECTOR Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Jochebed Menon EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Joshua Sinanbam aj@bncpublishing.net PHOTOGRAPHER Alexander Bungas
الشركاء االستراتيجيون Strategic Partners تـرشــــح اآلن 2021 سبتمبـــر15 حتـى Nominate Now Till 15th September, 2021 المجد لمـن يصنعــهGlory Belongs To Those Who Make It
8 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM REGIONAL NEWS LNME D ubai Industrial City (DIC), a member of Dubai Holding Asset Management, has signed a strategic agreement with Emirates Development Bank (EDB), a financial enabler of the country’s economic diversification and industrial transformation agenda, to provide innovative financing and banking solutions to small and medium-sized enterprises and support the growth of vital national industries such as advanced manufacturing and logistics. Signed by Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City and Shaker Zainal, Head of Busi- ness Finance at EDB, the strategic agreement aims to support Dubai Industrial City’s efforts to develop the industrial sector in Dubai and the UAE, provide new opportunities to at- tract local and international manufac- turing companies, and offer financial solutions to develop state-of-the-art infrastructure. The agreement also aligns with EDB’s continuous efforts to enable the industrial transformation and econom- ic diversification agenda in the UAE, build a knowledge-based economy, increase global competitiveness and sustainable growth, and support start- ups and SMEs, which are key drivers of the national economy. Shaker Zainal, Head of Business Finance at EDB, said: “Through this agreement with Dubai Industrial City, we will offer the right support to finance SMEs. We are always keen on cooperating with related entities especially in terms of financing small and medium-sized enterprises, and we believe that this collaboration with one of the region’s largest industrial hubs will help us reach potential cus- tomers and study the possibility of funding them. “We will also work together on devel- oping entrepreneurship and aware- ness programmes and sharing indus- trial knowledge.” Earlier in the year, EDB announced it had allocated an investment portfolio of AED30 billion until 2025, to sup- port the development of industrial sector. This is part of EDB’s commit- ment to support the goals of the Na- tional Agenda under Operation 300 bn – a 10-year strategy to empower the country’s industrial sector to pro- pel a sustainable national economy by boosting the SME ecosystem in UAE as well as enhancing the contribution of SMEs to the country’s GDP. Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City, said: “Today’s strategic partnership reaf- firms our efforts to transform Dubai Industrial City into a world-class busi- ness destination for manufacturing and logistics. “It will galvanize our business com- munity, unlock new investment op- portunities, create skilled jobs, and consolidate Dubai’s position as a business-friendly hub for trade and commerce. With additional capital expenditure, we hope the SME sector will be empowered to play an even greater role in advancing the UAE’s national industrial transformation and building a knowledge and innovation- based economy. We look forward to working in partnership with EDB on this imperative initiative.” DIC AND EMIRATES DEV. BANK INK DEAL TO BOOST SME GROWTH AND LOGISTICS SECTOR “WITH ADDITIONAL CAPITAL EXPENDITURE, WE HOPE THE SME SECTOR WILL BE EMPOWERED TO PLAY AN EVEN GREATER ROLE IN ADVANCING THE UAE’S NATIONAL INDUSTRIAL TRANSFORMATION AND BUILDING A KNOWLEDGE AND INNOVATION-BASED ECONOMY.”
LOGISTICS NEWS ME | SEPTEMBER 2021 | 9 REGIONAL NEWS O ffshore Support and Logistics Services Company (OFCO – Offshore International), the integrated mari- time logistics service provider that is jointly owned by Allianz Marine & Logistics Services (AMLS) and SAFEEN, Abu Dhabi Ports’ marine services arm, has announced the acquisi- tion of seven support vessels as part of its offshore marine services fleet. Comprising of four Anchor Handling Tugs (AHT), a 65-metre landing craft, as well as a supply ship and multipurpose safety standby vessel, the newest additions to OFCO’s fleet will fur- ther extend the new company’s capabilities in providing highly efficient and cost-effective onshore and offshore integrated logistics solutions and subsea services. Combined with a fully operational offshore supply land base and led by a growing team of industry-leading talent, OFCO’s fleet expansion marks Abu Dhabi Ports’ venture into the ever- evolving field of regional and international offshore logistics. Captain Maktoum Al Houqani, Chief Corporate Authority Of- ficer of Abu Dhabi Ports, Acting Head of Maritime Cluster, and Chairman of OFCO said: “With the acquisition of diversified and ultra-modern support vessels as part of our ever-expand- ing offshore marine services fleet, Abu Dhabi Ports is rapidly taking its strategic move into offshore logistics to new heights, while simultaneously cementing its role as the preferred mari- time services provider in the Middle East and beyond.” He added: “Possessing a unique proposition that combines industry-leading capabilities, rich talent, and cost-efficient solutions as part of a holistic offering, OFCO will deliver im- mense value to our customers, particularly for those active within the GCC’s offshore oil and gas market. “We will continue to explore other potential vessel acquisi- tions and other related expansion opportunities in an effort to broaden our overall service capabilities, and to ensure we are well-positioned to satisfy the increasingly complex needs of the offshore market for years to come.” Officially launched in January 2021, OFCO currently serves as one of the largest and competitively priced providers of on- shore and offshore integrated logistics solutions, and subsea services in the GCC. Deploying a winning combination of exceptional fleet assets, logistics solutions and supply-base operations, OFCO is well- placed to deliver a wide range of specialised services geared towards large offshore infrastructure projects, including active operations within the Middle East’s oil and gas sector. Offering a unique ‘one-stop-shop’ offering, the company’s solution portfolio, which in addition to subsea services include integrated logistics for O&G and EPC organisations, as well as inspection repair and maintenance (IRM), is further supported by Abu Dhabi Ports’ land-based logistical assets. Ahmed Khalil, General Manager, Allianz Middle East Ship Management, said: “The expansion of OFCO’s offshore ma- rine service fleet has greatly enhanced the organisation’s capa- bilities in meeting the ever-evolving demands of the region’s offshore energy market. “Building on this momentous occasion, we aim to continue developing our unique offering incorporating not only the latest in support vessel design, the highest industry best prac- tices and innovations, but we also strive to embrace new ca- pabilities that will enable us to serve the end-to-end logistical needs of customers in other expanding industries.” AD PORT’S OFCO EXPANDS FLEET WITH PURCHASE OF SEVEN VESSELS
10 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM REGIONAL NEWS LNME O ffshore Support and Logistics Services Company (OFCO – Offshore International), the integrated maritime logistics service provider that is jointly owned by Allianz Marine & Logistics Services (AMLS) and SAFEEN, Abu Dhabi Ports’ marine services arm, has announced the acquisition of seven support vessels as part of its offshore marine services fleet. Comprising of four Anchor Handling Tugs (AHT), a 65-metre landing craft, as well as a supply ship and multipurpose safety standby vessel, the newest addi- tions to OFCO’s fleet will further extend the new company’s capabilities in pro- viding highly efficient and cost-effective onshore and offshore integrated logis- tics solutions and subsea services. Combined with a fully operational offshore supply land base and led by a growing team of industry-leading talent, OFCO’s fleet expansion marks Abu Dhabi Ports’ venture into the ever- evolving field of regional and interna- tional offshore logistics. Captain Maktoum Al Houqani, Chief Corporate Authority Officer of Abu Dhabi Ports, Acting Head of Maritime Cluster, and Chairman of OFCO said: “With the acquisition of diversified and ultra-modern support vessels as part of our ever-expanding offshore marine services fleet, Abu Dhabi Ports is rapidly taking its strategic move into offshore logistics to new heights, while simultaneously cementing its role as the preferred maritime services provider in the Middle East and beyond.” He added: “Possessing a unique proposition that combines industry- leading capabilities, rich talent, and cost-efficient solutions as part of a holistic offering, OFCO will deliver im- mense value to our customers, particu- larly for those active within the GCC’s offshore oil and gas market. “We will continue to explore other potential vessel acquisitions and other related expansion opportunities in an effort to broaden our overall service capabilities, and to ensure we are well- positioned to satisfy the increasingly complex needs of the offshore market for years to come.” Officially launched in January 2021, OFCO currently serves as one of the largest and competitively priced pro- viders of onshore and offshore inte- grated logistics solutions, and subsea services in the GCC. Deploying a winning combination of exceptional fleet assets, logistics solutions and supply-base operations, OFCO is well-placed to deliver a wide range of specialised services geared to- wards large offshore infrastructure pro- jects, including active operations within the Middle East’s oil and gas sector. Offering a unique ‘one-stop-shop’ offering, the company’s solution portfolio, which in addition to subsea services include integrated logistics for O&G and EPC organisations, as well as inspection repair and maintenance (IRM), is further supported by Abu Dhabi Ports’ land-based logistical as- sets. Ahmed Khalil, General Manager, Al- lianz Middle East Ship Management, said: “The expansion of OFCO’s off- shore marine service fleet has greatly enhanced the organisation’s capabili- ties in meeting the ever-evolving de- mands of the region’s offshore energy market. “Building on this momentous occa- sion, we aim to continue developing our unique offering incorporating not only the latest in support ves- sel design, the highest industry best practices and innovations, but we also strive to embrace new capabilities that will enable us to serve the end-to-end logistical needs of customers in other expanding industries.” CARTLOW PARTNERS WITH BLUE OCEAN GLOBAL TO BOOST CIRCULAR ECONOMY “THE EXPANSION OF OFCO’S OFFSHORE MARINE SERVICE FLEET HAS GREATLY ENHANCED THE ORGANISATION’S CAPABILITIES IN MEETING THE EVER-EVOLVING DEMANDS OF THE REGION’S OFFSHORE ENERGY MARKET.”
LOGISTICS NEWS ME | SEPTEMBER 2021 | 11 REGIONAL NEWS A .P. Moller – Maersk has identified its partners to produce green fuel for its first vessel to operate on carbon neutral methanol: REintegrate, a subsidiary of the Danish renewable energy company European Energy. REintegrate and European Energy will establish a new Danish facility to produce the approx. 10.000 tonnes of carbon neutral e-methanol that Maersk’s first vessel with the ability to operate on green e- methanol will consume annually. Maersk will work closely with REintegrate and European Energy on the development of the facility. “This type of partnership could become a blueprint for how to scale green fuel production through collab- oration with partners across the industry ecosystem, and it will provide us with valuable experiences as we are progressing on our journey to decarbonise our customers’ supply chains. “Sourcing the fuels of the future is a significant chal- lenge, and we need to be able to scale production in time. This agreement with European Energy/REin- tegrate brings us on track to deliver on our ambition to have the world’s first container vessel operated on carbon neutral methanol on the water by 2023,” says Henriette Hallberg Thygesen, CEO of Fleet & Strate- gic Brands, A.P. Moller – Maersk. The methanol facility will use renewable energy and biogenic CO2 to produce the e-methanol. The fuel production is expected to start in 2023. The energy needed for the power-to-methanol pro- duction will be provided by a solar farm in Kassø, Southern Denmark. REintegrate has a proven track record for producing green e-methanol with a test laboratory in Aalborg. The new facility will be its third e-methanol facility, as they are also constructing an e-methanol facility in Skive with startup 2022. While the renewable energy will be produced in Southern Jutland it is yet to be decided where in Denmark the power-to-methanol facility will be lo- cated. Maersk announced the dual fuel vessel, an industry first, in February 2021. In June, Maersk announced that Hyundai Mipo Dockyards will be building the 2100 TEU (Twenty Foot Equivalent) feeder. MAERSK SECURES GREEN METHANOL FOR FIRST CONTAINER VESSEL OPERATING ON CARBON NEUTRAL FUEL
12 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM REGIONAL NEWS LNME M anufacturing and logistics hub Dubai Industrial City has announced that Himalaya Wellness has signed an agreement to set up a Dhs120 million state-of-the-art herbal pharmaceutical plant that will be producing three billion tablets, 15 million syrup bottles and three million units of ointment annually at Dubai Industrial City. Himalaya, with over 90-plus years of herbal expertise, is a producer of over 300 herbal medicines, nutritional sup- plements, skin care, hair care, oral care, baby care and animal health products. The new herbal pharmaceutical facility in Dubai Industrial City will export medi- cines to over 100 countries. The commercial production at the new facility will start in the first quarter of 2024. The proposed factory will sit on 760,000 sq. ft of land and will be the first of three facilities Himalaya will build in Dubai Industrial City. The herbal pharma- ceutical facility will be followed by dedi- cated units for Personal care products and Functional foods in future. Shailendra Malhotra, Global CEO, Himalaya Wellness, added: “After over 20 years of successful operations in the region, we have decided to build the manufacturing facility here for our herbal pharmaceuticals. “We pride ourselves on being environ- ment friendly and this facility would be Leeds certified – Green Building. Our flagship brands like Liv.52 & Cystone are household names in many countries and the proposed manufacturing facility will be supplying to over 100 countries.” He further added: “The objective is to increase our global manufacturing capacity for herbal medicines, and we decided on UAE due to its strategic location, state-of-the-art infrastructure, and efficient business environment. UAE has been the cornerstone of Himalaya’s global success and this partnership with Dubai Industrial City shall further rein- force our global strategy.” The plant will be built to the highest standards recognised by the World Health Organisation, the US Food and Drug Administration and the European Medicine Agency’s good manufacturing practices. It will enhance global trust and confidence in high-quality made in UAE products, boost medical security, and support the nation’s industrial strat- egy, Operation 300Bn. It has operations all around the world and established its UAE presence in the year 2000, followed by setting up its R&D centre ‘Himalaya Global Research Centre’ in Dubai Science Park in 2013. Abdulla Belhoul, Chief Commercial Officer of Dubai Holding Asset Manage- ment, said: “In line with the vision of our leadership, the UAE continues to consolidate its status as a global leader thanks to a raft of infrastructure invest- ments, new initiatives and regulations. Combined, these factors have created a competitive and enabling industrial ecosystem. “Under Operation 300Bn, the manu- facturing of pharmaceutical and medical products is a crucial segment, and our partnership with Himalaya is another milestone that will contribute towards achieving the nation’s ambitious plans for the industrial sector”. Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City, said: “Stimulating growth in the pharmaceu- tical industry by increasing domestic medicine production is of vital national importance in line with the vision of our leaders for economic diversifica- tion. We are delighted to enter into this agreement with the leading wellness company Himalaya and believe our competitive ecosystem, with advanced infrastructure and an easy setup pro- cess, is the perfect place for its next phase of growth. “For more than a decade, we have been a strategic driver and enabler of Dubai’s knowledge and innovation- based economy and today’s announce- ment is the latest step forward in our ongoing efforts to position this city as a global hub for advanced manufacturing and logistics.” HIMALAYA WELLNESS TO BUILD DHS120MN HERBAL PHARMA FACTORY IN DUBAI INDUSTRIAL CITY
LOGISTICS NEWS ME | SEPTEMBER 2021 | 13 G ulf Cryo, a provider of industrial gas solutions, received a Supply Achievement Award from Hyundai Engineering Co., Ltd. due to unrivalled supply performance during the commissioning phase of the world’s largest single construction Liquified Natural Gas (LNG) Terminal at Al Zour, Kuwait designed to import as much as 22 million tonnes of LNG per year. In an unprecedented move, Gulf Cryo has successfully supplied Al Zour LNG Terminal with more than 2,700 metric tonnes of Liquid Nitrogen to cooldown the LNG terminal’s facilities hitting a temperature of -120°C prior to unload- ing the LNG from ships to storage tanks. The whole procedure was complete in no longer than a week time, and the LIN has been fully supplied through Gulf Cryo’s cryogenic gas production plants in Kuwait. Day four of the supply event marked the peak in supply where the LIN consumption reached 540 met- ric tonnes per day. Once the terminal facilities have reached cryogenic temperatures, they are assessed whilst maintaining an inert atmosphere, ensuring the mechanical integrity of the jetties and the piping system. This makes the unloading of LNG from the carrier a simpler and less time- consuming process that would have otherwise not been the case. Both the cooldown procedure and the equipment utilised were subject to HAZOP studies, assuring all risks associ- ated with the process were identified and minimized. This was a phenomenal deviation from standard terminal cooldown proce- dures, where the entire cooldown of the unloading lines was achieved through utilizing cold vapour sprayed into the lines that were initially at ambient tem- perature, rather than direct introduction of cryogenic liquid. The impact has been marked substan- tial as it is proved to increase energy efficiency by avoiding the flaring of LNG vapour during the process. Amer Huneidi, Executive Chairman of Gulf Cryo said: “We are glad to have provided an innovative and world class solution that is highly efficient and well- suited to meet the significant require- ments of our customer. The success of this supply is a hallmark of our perfor- mance and supply chain competency and will inspire us to work towards a continued leading position across the region. “I will also take this opportunity to thank Hyundai Engineering Co. Ltd. for collaborating with us in this commis- sioning, providing us an opportunity to surpass this momentous milestone in our journey.” Once fully operational, the LNG Ter- minal at Al Zour is expected to import as much as 22 million tonnes of the super-chilled gas per year and will have a storage capacity of 1.8 million cubic metres of LNG. The liquefaction capaci- ty of the terminal will be 30 billion cubic metres per day. REGIONAL NEWS GULF CRYO RECEIVES ‘SUPPLY ACHIEVEMENT AWARD’ FROM HYUNDAI ENGINEERING CO. LTD.
14 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM FREIGHT FORWARDING LNME I t’s been more than a year since the first COVID-19 case came to light, uncertainty still drives our decisions. Despite wide- spread vaccinations and control mechanisms put in place across the globe, we continue to fight a pro- longed battle. As challenging as the situation may be, it contains within it the seeds of learning and growth. Here are five lessons distilled from the pandemic, critical to the future of our business. 1. PEOPLE OVER PROFITS Best-in-business companies have always operated with this ethos. But COVID-19 really drove this lesson home. A people-centric approach dur- ing challenging times is not just ethi- cally correct, but it also makes sound business sense. If employees are happy and motivated, their productivity is greater than those who feel underval- ued or unappreciated. Businesses should remember that it’s their people who work to achieve the profit in the first place, therefore they must always be priority. People-first companies are not only great places to work, but they are also profitable enterprises. 2. CRISIS SITUATIONS HELP TO BENCHMARK RESILIENCE Uncertainty and volatility are the only certainty today. Logistics provid- ers had to showcase real strength in situations when things are not going according to plan. We expect the un- expected, and plan for it. This builds resilient organisations. From shipping large quantities of personal protective equipment (PPE) to communities that urgently needed it, to shipping vaccines around the world so they can be used to save lives, logistics providers have been crucial in the fight against the global pandemic. We have the monumental responsibility of distributing approxi- mately 10 billion doses of vaccines over the next two years. Amadou Diallo, CEO of DHL Global Forwarding Middle East and Africa, shares how COVID-19 holds opportunities for digitalisation, globalisation, and the future of logistics Amadou Diallo LESSONS LEARNED FROM THE PANDEMIC
LOGISTICS NEWS ME | SEPTEMBER 2021 | 15 Uncertainty also drives flexibility and agility. Businesses and people have dem- onstrated incredible agility and resilience in adapting to the new situation. New transport solutions and connections have been set up without anyone being able to travel. Digital such as a new Transport Management System enabled supply chains to keep going on. 3. REMOTE WORK, WORKS Technology has enabled us to stay connected with colleagues through the pandemic and manage businesses across geographies. Though frontline workers in the operations are not able to work from home, the pandemic proved the power of teamwork in logistics. If there is one thing that the pandemic has taught us, it is that together we are stronger. For a successful transition to work remotely, trust is one of the most powerful leadership skills. A global com- pany can be managed remotely – but not without trust. You must trust your people and equally important, tell them that you trust them. 4. DIGITALISE TO THRIVE In the UAE, we have witnessed the exponential rise of eCommerce, supply chain innovation and digital transforma- tion, which are contributing factors to the growth of logistics sector. As many parties are involved in getting goods moved around the world, digitalisa- tion has the potential to ease not only the life of shippers but make processes even faster and leaner. The recently launched customer platform myDHLi is one example, while Saloodo!, the digital road freight solution platform, is leading the movement to ‘Uberise’ trucking. It helps carriers manage their fleets better and optimize the capacity of their full truckload (FTL) shipments. 5. WE NEED MORE GLOBALISATION A globalised world stands not only for trade, but also for the free flow of infor- mation, vital supplies, and people. Back in April last year when air freight capacity was severely impacted due to border closures, DHL Global Forwarding had operated dedicated flights carrying PPEs as well as essential supplies from China to Middle East and Africa via Dubai, ensur- ing a steady supply of these life-saving items especially for frontline healthcare workers. We are learning to share information, and this is resulting in growing pros- perity, not only economically but also socially and socio-culturally. Without a globalised world we wouldn’t be able to fight this pandemic. We hope that the level of globalisation will even increase after COVID-19, which will put us in a stronger position to face existing and future challenges. LESSONS LEARNED FROM THE PANDEMIC “WE ARE LEARNING TO SHARE INFORMATION, AND THIS IS RESULTING IN GROWING PROSPERITY, NOT ONLY ECONOMICALLY BUT ALSO SOCIALLY AND SOCIO- CULTURALLY.” LOGISTICS NEWS ME | SEPTEMBER 2021 | 15
16 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM REPORT LNME T he UAE has the most com- petitive industrial sector in the Arab world, according to the latest UN global rankings. The country has reached 30th in the world in the 2021 United Nation’s Industrial Or- ganisation’s (UNIDO) Com- petitive Industrial Performance Index (CIP) report which tracks 152 countries. The UAE has climbed five places since 2020 and nine places since 2017 in the UNIDO CIP, demonstrating the competi- tiveness of the nation’s industrial sector and its business ecosystem, in line with the National Strategy for Industry and Advanced Technology, Operation 300Bn. The report noted the UAE’s progress in infrastructure and the industrial sector’s business ecosystem. It referred to the UAE’s strategy for sustainable growth in the industrial sector through incorporat- ing advanced technology, promoting science-based education, balancing indus- trial progress with environmental sustain- ability, and encouraging innovation. His Excellency Dr. Sultan bin Ahmed Al Jaber, the UAE’s Minister of Industry and Advanced Technology said: “UNIDO’s report reaffirms the UAE’s global reputa- tion for developing an innovative indus- trial ecosystem underpinned by advanced technologies and Fourth Industrial Revolution solutions. “Our rapid advances as a global indus- trial pioneer are a great testament to the foundations laid by our leadership, who have paved the way for dynamic and sustainable economic growth over the next fifty years, and beyond.” He added: “The UAE’s continuous progress in UNIDO’s CIP shows we are well on the way to achieving the goals set out by Operation 300Bn. Thanks to the country’s attractive business environment to local and international investors in the industrial sector, the UAE is cementing its position as a global destination for pioneering future industries.” His Excellency said that UNIDO’s CIP monitored the UAE’s industrial sector’s growth, by identifying the key features of the nation’s industrial development model and linking it to the UAE Vision 2021 and the 2014 National Agenda. The UAE’s Vision and Agenda aim to create a knowledge-based economy and help the nation climb global indices. To achieve these goals and manage the strategy, the Ministry of Industry and Advanced Technology (MoIAT) was established in July 2020. UNIDO’s CIP assesses and measures the industrial competitiveness of global economies through three main dimen- sions: the capacity to produce and export manufactured goods, technological deep- ening and upgrading, and world impact. These three dimensions are divided into eight indicators. The Emirates has ascended 14 places – from 31st to 17th – for its manufacturing exports per capita, while moving up to 32nd for its total manufacturing exports. Furthermore, the UAE is now up to 28th globally for manufacturing value added per capita, while also rising eight places for the share of its manufactured goods in its total export mix, moving up to 107th from 115th last year. THE COUNTRY HAS RAPIDLY SOARED UP THE GLOBAL INDUSTRIAL RANKS BY INCREASING ITS INDUSTRIAL PERFORMANCE IN FOUR OUT OF EIGHT INDICATORS, MARKING A QUANTUM LEAP FOR THE SECTOR UAE HAS ‘MOST COMPETITIVE INDUSTRIAL SECTOR IN ARAB WORLD’ UN REPORT A scene from ‘Middle East Energy Dubai 2020’ - the leading trade expo for power generation, transmission and distribution, lighting, renewables and digitalization sectors.
here’s to a cleaner future Choosing a gas powered truck will put you and your fleet in the forefront of sustainable truck operations, reduce your CO2 emissions and achieve Euro 6 Emission Legislation without using Adblue or Particulate Matter. Well suited for both urban and regional operations. It can be matched with R, G, L or P cabs and combined with either the Scania Opticruise gearbox or automatic transmissions. For more information about our Alternative Fuels options, please visit www.scania.com/ae/en/home/prod- ucts-and-services/articles/alternative-fuels.html Natural gas (CNG/LNG) Natural gas is methane from pockets in the Earth’s crust. Although it is a fossil fuel, it emits up to 15% less CO2 compared to regular diesel. 15%*
18 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM LNME COVER STORY 18 | LOGISTICS NEWS ME | SEPTEMBER 2021 “AT AL MASAOOD TBA OUR GOAL IS TO ALIGN OUR STRATEGIES WITH THE UAE GOVERNMENT’S VISION, DIRECTIONS AND ASPIRATIONS WHILE DELIVERING INNOVATIVE-DRIVEN SOLUTIONS DESIGNED TO BETTER SERVE OUR COMMUNITIES. WE ARE AT THE FOREFRONT OF DELIVERING INNOVATION-DRIVEN SOLUTIONS TO THE MARKET.”
LOGISTICS NEWS ME | SEPTEMBER 2021 | 19 ON SAFE GROUND | SALAH ADIB, GENERAL MANAGER AT AL MASAOOD Tell us about your role at Al Masood Tyres, Batteries and Accessories Division. As the General Manager (GM) of Al Masaood Tyres, Batteries and Accessories (TBA) Division, which is part of Al Masaood Group, I take the lead in ensur- ing its overall operational efficiency and increasing its profitability prospects. I make sure that our organisation advances accord- ing to our goals. At Al Masaood TBA, one of our main aims is consistent customer satisfaction. This drives us to step up our digital initiatives and innova- tions to keep up with the market trends and evolve alongside the changing needs of our customers. Another is to sustain our achievements as a busi- ness enterprise. The secret to our company’s success is our commitment to keeping things simple, sup- ported by our continuous investment in the skills development of the younger generations. Our young and creative professionals today are helping bring fresh and out-of-the-box business growth ideas to the company. I also prioritise the wellbeing of our employees, ensuring that they stay motivated by going beyond formalities through ‘personal leadership.’ My leader- ship style stems from the fact that our employees are among the most important assets of our organisa- tion. As such, understanding what’s important to them - which is to earn for their families and achieve their life’s dreams - is an expression of my genuine care and a demonstration of my commitment to their personal and professional growth. Salah Adib, General Manager at Al Masaood - TBA Division, reveals how the company is at the forefront of delivering innovation-driven solutions to the market and why safety is the division’s top priority GROUND ON SAFE >>>
20 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM LNME COVER STORY How is Al Masaood TBA a preferred choice for customers? At Al Masaood TBA our goal is to align our strategies with the UAE Government’s vision, directions and aspirations while deliver- ing innovative-driven solutions designed to better serve our communities. We are at the forefront of delivering innovation-driven solutions to the market. The company is the exclusive distributor of the full Bridgestone tyre range for cars, trucks, industrial, agricultural and earthmov- er vehicles in Abu Dhabi. We have the largest retail chain for tyre distributors in the region, including 16 outlets across Abu Dhabi, Al Ain, and the Western Region. Our outlets provide the following services: tyre change, wheel balancing and alignment, engine flushing, battery change, nitrogen filling, engine diagnostics, puncture repair, wiper change, centre fit service, A/C service, and many more. In addition, through our association with Total France, the division has established a chain of rapid oil change centres to offer oil and filter change, among others. With our team of professional technicians, we guarantee convenient automotive solutions that are delivered safely and in line with the highest standards. Our commitment to our customers is this: to have you back on the road in no time. The combination of all these elements makes TBA the brand of choice for many customers. Tyres are a crucial element to road safety. What have been some of the steps Al Masaood TBA has taken to ensure safety on the roads? People’s safety is our top priority. We have, in fact, been initiating multiple successful road safety campaigns aside from offering essential products and services to help keep our drivers safe on the road as well as protect the public. “THE COMPANY IS THE EXCLUSIVE DISTRIBUTOR OF THE FULL BRIDGESTONE TYRE RANGE FOR CARS, TRUCKS, INDUSTRIAL, AGRICULTURAL AND EARTHMOVER VEHICLES IN ABU DHABI. WE HAVE THE LARGEST RETAIL CHAIN FOR TYRE DISTRIBUTORS IN THE REGION, INCLUDING 16 OUTLETS ACROSS ABU DHABI, AL AIN, AND THE WESTERN REGION.”
LOGISTICS NEWS ME | SEPTEMBER 2021 | 21 ON SAFE GROUND | SALAH ADIB, GENERAL MANAGER AT AL MASAOOD For the past three years, we have been proud participants in Abu Dhabi Police’s annual ‘Safe Traffic Summer’ awareness campaign. In partnership with Abu Dhabi Police, the initiative allows us to educate drivers about the dangers of worn-out tyres, including fatal accidents and serious injuries. The summer safety campaign promotes vehicle and tyre safety and encourages motorists to carry out regular mainte- nance of their vehicles. As part of the campaign, we also conduct free tyre checks at designated points across Abu Dhabi. Our teams are trained to make sure that tyres are in good condition. Another activity under the ‘Safe Traffic Summer’ campaign is numerous lectures on the danger of using old, too much or too little air-pressured tyres. Reinforcing these sessions are strategic social media posts promoting the campaign’s goals and activities. Please explain Al Masaood TBA’s tyre assessment and tracking system and how it works. We use ‘Toolbox’ which is Bridgestone’s proprietary software for tyre assessment and track-ing, to easily and quickly generate the results of the tyre inspec- tions conducted by our team. The report produced by ‘Toolbox’ provides our fleet customers with insightful, direct, and actionable recommendations to maintain and optimise their tyre performance. Further-more, it enables them to monitor tyre consumption. As Bridgestone’s authorised distributor in Abu Dhabi, tell us about your relationship and some of the measures you’ve taken jointly in promoting safe driving and ensuring tyre health. We are proud of our fruitful 35-year partnership with Bridgestone. We have jointly undertaken numerous initiatives over the years to bring to the fore the important role of tyre health in safe driving. Bridgestone has awarded us the ‘Gulf Cooperation Council Distributor of the Year’ title on several occasions through- out the years. Moreover, our Fleet Solution team was recognised as the Best Commercial Team across all Bridgestone distributors worldwide at Bridgestone’s Toolbox Global Awards 2020. As one of Bridgestone’s worldwide partners, we were honoured for our consistent efforts to become a solution provider of choice among fleet customers. We continually strive to maintain our market lead and grow hand in hand with Bridgestone MEA as one team committed to achiev- ing our shared goals. I would like to thank the Bridgestone MEA team for their ongoing support to us, and for the fruitful relationship we’ve had together over the years. Our mission to promote road safety continues by conducting a free tyre check in all our outlets, in addition to our on-the-go assist vans that provide car care services whenever and wherever our customers are. They just need to call our call centre to get the assistance they need. Moreover, at Al Masaood TBA we provide quality products and services through the latest equipment available in our service centres. Tell us about your collaboration with Abu Dhabi Ports and the police department on driver safety. Al Masaood TBA’s collaboration with Abu Dhabi Ports and Abu Dhabi Police has led to multiple successful initiatives, one of which was the ‘Eyes on the Road’ campaign. Under this initiative, we provided truck drivers with complimen- tary tyre checks and well-deserved rest at truck stops in Abu Dhabi. >>>
22 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM LNME COVER STORY We launched it to highlight the impor- tance of the health and safety of truck drivers, given the long hours they spend on the road. Poor health conditions could result in diminished concentration with drastic consequences to truck drivers, other road users and pedestrians. In addi- tion to health check-ups, drivers were also treated to some well-deserved refresh- ments and fun activities to help them relax and unwind. Cars, buses, and trucks account for the largest chunk of the transport and logistics industry in the region. This puts a focus on tyre usage as well as on repairs and recycling. How can we make tyres more sustainable and what measures have Al Masaood TBA undertaken in this respect? Experts from a wide variety of fields have been working together to make the tyre of the future even more energy-efficient and eco-friendly during the manufactur- ing, use, and recycling stages of its life cycle. More than anything, they have emphasised the need to replace every tyre component with more environmentally compatible materials, if necessary, and ensure sustainability, especially in produc- tion processes. Regular tyre inspection and maintenance are essential to prevent overheating, incor- rect inflation pressures, and poor wheel balance and alignment, among others – all of which contribute to a reduction in tyre life and safety. It is also vital to regularly check the tyres’ tread depth. When it comes to tyre replacement, we make sure that the old tyres are properly disposed of by working with a certified scraping company. What are some of the key challenges facing the tyre market today? What role does climate play in this? In the Middle East, tyres are consid- ered the largest segment for spare parts. Although the market had slowed down in 2020, we are confident of its steady recovery this year and beyond. The region is known for its hot weather and dry climate, which may negatively impact tyre health and performance. Therefore, we have been partnering with relevant government entities on awareness campaigns throughout the year, and we will continually strive to do our best in promoting tyre health and road safety in our community. What is your vision for Al Masaood TBA? Our vision is to be the ‘first choice’ partner for all tyre and auto care service needs. I am proud that we are getting closer to achieving this. I am committed to doing my level best to sustain our gains and accelerate our expansion. To accomplish this, we will continuously offer our customers exceptional prod- ucts and professional auto care services and gain a deeper understanding of our evolving market. To maintain quality and help improve the safety and lives of people everywhere, we are committed to implementing consistent innovation of our products and services backed by our uncompromising pursuit of excellent customer experience. “EXPERTS FROM A WIDE VARIETY OF FIELDS HAVE BEEN WORKING TOGETHER TO MAKE THE TYRE OF THE FUTURE EVEN MORE ENERGY- EFFICIENT AND ECO-FRIENDLY DURING THE MANUFACTURING, USE, AND RECYCLING STAGES OF ITS LIFE CYCLE.”
renault-trucks.com RENAULT TRUCKS 360� SOLUTION PROVIDER NEW RENAULT TRUCKS EVOLUTION RANGE Renault Trucks bringing major improvements in terms of driving comfort, on-board comfort, safety and productivity. More comfort, More uptime, more safety, more fuel savings We have gone a long way to support you better.
24 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM OP-ED LNME O ver the last century, scientific breakthroughs in motoring have seen the capabilities of industrial, commercial and motorsport vehicles rise expo- nentially to meet drivers’ needs. However, it’s fair to say that none of these innovations would achieve their potential without the vast strides made by lubricant technology every step of the way. Lubricants may seem like a second thought for the industrial buyer or the first-time driver looking to take their test as quickly as possible to get on the road. However, the contribution of oils to mo- toring is fundamental and unparalleled. In fact, it is now inseparable from the high- class performances challenging every part of the industry to innovate and advance. Here, the Petronas’ expert shares how the power and agility of lubricants have shaped motoring in the past, craft tailored performances in the present, and become inseparable partners to those innovating the future of motoring. A rich heritage in winning formulas Motor oil was never a retrospective at- trition to the motorist’s arsenal of tools. It has always been essential to perfor- mance. These first lubricants reduced fric- tion in far more ways than one. Born of steam engine innovations following the Industrial Revolution, they emerged side-by-side with cars as they entered the international scene. The ability of quality lubricants to optimise and lengthen the performance of engines not only allowed early drivers to hit the road smoothly for the first time but, consequently, it paved the way for the acceptance and development of the motor car. Critically, lubricants proved to the world that a frictionless motorcar ride was far better than the ‘faster horses’ which the people supposedly wanted. As lubricants developed, so did vehicles. Fiat, for instance, began its lu- bricants division in 1912, designing ‘first fill’ fluids that would soon become the industry standard for achieving optimal performance on the road. As the Second World War prompted a need for higher performance military vehicles, lubricants enabled this. In the post-war period, this newfound variety and quality in motor oils allowed the car industry to evolve its design diversity to cater for the modern drivers of the 1960s. Advanced formulation and manufac- turing never failed to meet the needs of the latest contemporary technologies. As a result, the knowledge that new engine types and new materials could be supported by key lubricants players has powered motoring innovation ever since. Collaborating to achieve best results With a century of development in fluid technology under its belt, the lubricants industry is now capable of truly democ- ratising driving in the modern day. This means ensuring that every industry or individual can secure the highest quality performance from their vehicle possible – regardless of make or model. FAUSTO LUPONE, AUTOMOTIVE SECTOR EXPERT AT PETRONAS LUBRICANTS INTERNATIONAL, WRITES HOW LUBRICANTS IS INSEPARABLE FROM MOTORING Lubricants THE BACKBONE TO A CENTURY OF MOTORING EVOLUTION
LOGISTICS NEWS ME | SEPTEMBER 2021 | 25 LUBRICANTS | THE BACKBONE TO A CENTURY OF MOTORING EVOLUTION Optimal compatibility between system and product is only achievable through close collaboration between lubricants develop- ers and original equipment manufacturers (OEMs). Both teams must share knowledge and workspaces to ensure that lubricants are co-engineered to achieve the highest stand- ards for specific vehicles. A continued com- mitment to high quality research is what enables lubricants manufacturers to turn their hand to any brief, understanding the needs of equipment, recognising challenges, and ultimately formulating the best results for the OEM’s customers. For instance, the development of a scheme like Petronas Lubricants Interna- tional’s (PLI’s) Fluid Technology Solutions (FTS) programme has helped to maximise productivity for customers, with value-add- ed products and services that are global, yet refined to specific needs. Through detailed user and market re- search, analysis of legislative requirements and collaboration between engineers and scientists, schemes like this foster a unique approach to deliver the right fluid to the right user. The development of lubricants for Formula One cars is a case in point. The collaboration between Mercedes and Pet- ronas began with the engineering of fuels and lubricants independently by PLI, which were then handed over to the Mercedes team for testing. However, in 2014, an integration exercise saw the teams begin to work much more closely together, enabling Petronas special- ists to gain a better understanding of technical aspects of the Mercedes engine, thereby increasing trust as well as efficiency and delivering results. The results were im- mediate, and the Mercedes-AMG Petronas team has won every championship since. Powering the future of sustainable motoring The lubricants industry has always been highly adaptable to the development of new vehicle technologies. Now, as motor- ing undergoes the biggest shift towards sus- tainability in its history, lubricants science is leading the way by enabling ‘greener’ technologies to reach their potential, ultimately proving the value of eco-friendly vehicles to manufacturers, investors, and consumers. Research into lubricants to empower hybrid and electric vehicles (EVs) is already fully underway at the world’s top fluid development labs, as demand for these vehicles’ booms. EV motors require several fluids: oil for the reduction gear that is the EV’s trans- mission unit, and oils specifically for the electric motor if the oil cooling is used for the motor. Teams are focussing their R&D efforts on battery thermal management fluids: ways to help electric vehicles reach maximum performance when operating at various conditions and to prolong battery life. The pace of innovation in vehicle per- formance is just as quick as that at the forefront of vehicle production and design. Both start with conversation; such discus- sions at Petronas’ EV Fluids Symposium are a direct result of the automotive care fostered in Fiat’s own garages over one hundred years ago. The innovations these conversations produce is then a testament to that ongo- ing excellence: thermal battery fluids for optimised delivery of electrical energy, fluid for friction management of integrated driveline systems, and next generation bearing greases for a quieter ride and long- lasting performance. Once again, lubricant technology remains firmly by the side of those pushing for the brighter future of driving. Reducing waste is also high on the agenda of lubricants manufacturers. Older cars can still reach maximum performance through the development of modern lubricants which draw on the original oil specifications from the manufacturer. By using the most appropriate additives and the most advanced technologies to ensure protection of older engines against wear and tear, modern lubricants can enable top class, efficient performances from older cars. This ultimately prolongs their lifespan and delays highly pollutive disposal processes. Keeping up with innovation There has never been a more exciting time for motoring than today. The chal- lenges of sustainability, combined with the democratisation of technology, means that pioneering new technologies are mak- ing their way to the market continually. Each must be able to demonstrate long- term efficiency to meet the expectations of drivers, and limit impact upon the environment. Quality lubricants will be integral in enabling cars to meet this high standard - as they have been throughout the history of the modern motor vehicle. “OLDER CARS CAN STILL REACH MAXIMUM PERFORMANCE THROUGH THE DEVELOPMENT OF MODERN LUBRICANTS WHICH DRAW ON THE ORIGINAL OIL SPECIFICATIONS FROM THE MANUFACTURER.”
26 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM LNME CASE STUDY W ith a history of cultivation that spans more than 2,000 years, Jining, Shandong in North-eastern China is a well-known hub for garlic. The region grows about 700,000 mu of garlic each year, which is exported to more than 160 countries and regions around the world. Naturally, there is a need to transport the produce in reefer containers to retain its quality. Sissons says: “Our customers specialise in the export of agricultural products, and their enterprises are involved in several focus areas, including base planting inte- gration, purchasing, refrigeration, deep processing, and international trade.” The sales markets cover more than 70 countries in Europe, the Americas, the Middle East, South and Southeast Asia, and more. CHALLENGES ENCOUNTERED For many years, customers generally used a combination of trucking and ocean transport to ship high-quality garlic from the region all over the world. “However, the inland leg of this journey is currently fraught with various complications. There is only one type of trucking service, transportation costs are high, timings are irregular, and the service is frequently affected by natural and social factors,” he adds. Particularly during the ongoing pandem- ic, it has become difficult for exports to avoid unforeseen supply chain breaks, and the entire logistics supply chain plan for the export of garlic cannot be accurately guaranteed. This poses a major hurdle for customers. In response to the problems encountered by customers, the Maersk team has been committed to helping them find cost- effective and stable logistics solutions to help boost the garlic product export. LEE MICHAEL SISSONS, REGIONAL HEAD, APA OCEAN MANAGEMENT, A.P. MOLLER-MAERSK, REVEALS HOW THE SHIPPING FIRM IS PROVIDING END-TO-END LOGISTICS SOLUTIONS TO GARLIC PRODUCERS IN CHINA FLAVOURING THE WORLD THROUGH BETTER LOGISTICS INTEGRATION
LOGISTICS NEWS ME | SEPTEMBER 2021 | 27 FLAVOURING THE WORLD THROUGH BETTER LOGISTICS INTEGRATION While communicating and coordinating with foreign companies to carry out one- stop product trials, the Maersk cold chain expert team also actively explored new domestic logistics solutions. FINDING A SOLUTION Based on the strategic cooperation with China Railway Jinan Bureau Group, Mae- rsk were actively exploring a new one-stop service that connects the garlic product rail transportation to our maritime services and extends the starting point of traditional export services right from the inland warehouse to the port. After a customer completes the booking, they only need to wait for the packaging to be completed in the factory warehouse. The rest of the short-distance inland transportation, and the railway connec- tion to port, are arranged by Maersk in coordination with the railway and the port authorities. “This prevents the fragmented coordina- tion of various touchpoints across the sup- ply chain and helps considerably improve efficiency,” he adds. Upgrading the whole process from ‘port- to-port’ to ‘end-to-end’ helped empha- sise the value of our cold chain service coverage, and ensure the timely, safe, and efficient delivery of the goods to the final consignee. Maersk’s Jining West-Qingdao railway service not only provides us with more choices for domestic transportation, but also brings us a new end-to-end logistics solution. In the past two years, Maersk has suc- cessfully promoted the sea-rail combined transport of Jining garlic exports. On 29 June 2021, it was officially announced that Maersk would start operating a cus- tomised train for freezers. This is a cold chain inland product specially curated by Maersk for customers according to their needs, providing them with a one-stop cold chain solution. Sissons concludes: “This new service perfectly highlights the benefits our integrated services can provide. We will be able to provide more proactive assistance and be more innovative in our end-to-end approach by leveraging this new inland offering. “It also aids our mission to decarbonise logistics, given the low CO2 emissions from trains compared to trucking. The ‘Garlic Train’ will be the first of other similar initiatives, and I look forward to seeing more.” “UPGRADING THE WHOLE PROCESS FROM ‘PORT- TO-PORT’ TO ‘END-TO- END’ HELPED EMPHASISE THE VALUE OF OUR COLD CHAIN SERVICE COVERAGE, AND ENSURE THE TIMELY, SAFE, AND EFFICIENT DELIVERY OF THE GOODS TO THE FINAL CONSIGNEE.”
28 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM FREIGHT LNME F reight rates have quadrupled since the COVID-19 pandemic caused a worldwide lockdown in March 2020, pushing retail prices up, that has been affecting consumers worldwide who are trying to re- cover from loss in income, business. World Dry Baltic Index jumped from – 50% in May 2020 to more than 400% in May 2021 – an unprecedented increase in a year. China Container Freight Rate Index jumped 170% in April this year compared to what it was in July 2020, while Harpex World Charter Rate Index jumped 350% in a year from July 2020 to July 2021. The rate increase was caused by COV- ID-19 pandemic, which caused a massive decline in trade, resulting a decline in shipments worldwide, says Rizwan Sajan. Many shipping companies were forced to dock the ships and send the sailors to long holidays. So, when the economic activities resumed after the lockdown, there was a shortage of sailors and other professionals in Autumn 2020. A combination of factors including soaring demand, a shortage of containers, saturated ports, too few ships and dock workers, have contributed to the situation on almost all the trade routes. Recent COVID-19 outbreak in Asian countries – especially India and China in particular – are worrying. Transporting a 40-feet container cargo by sea from Shanghai to Rotterdam costs a record USD10,522, a whopping 547% higher than the seasonal average over the last five years, according to Drewry Shipping. With more than 85% of the goods trade transported by sea, freight rate increase threatens to push up the price of every- thing from toys, building materials, fur- niture, auto spare parts, and components of all types of goods to tea and coffee – compounding concerns on rising inflation. Although still relatively minor part of SOARING FREIGHT RATES Rizwan Sajan, Founder and Chairman, Danube Group, tells us how high freight charges are affecting businesses and consumers
LOGISTICS NEWS ME | SEPTEMBER 2021 | 29 SOARING FREIGHT RATES | RIZWAN SAJAN, FOUNDER AND CHAIRMAN, DANUBE GROUP the overall cost of the goods, a research by HSBC Holdings estimates that a 205% jump in shipping costs over the past year could increase the Euro- area producer prices by as much as 2%. At the retail level, traders are faced with three choices – absorb the cost, pass it on to the consumers or halt trading! Most active traders would pass half of it to their custom- ers and absorb the other half, eventually hitting the bottom line. What was initially thought as a temporary spike initially, the high freight rate seems to have become the new norm, industry sources say. Although things might change in future, however, the high-rate envi- ronment might continue for a year or two, before returning to the pre-COVID-19 situa- tion. The high shipping expenses are being factored into con- tracts for the next 12 months, forcing companies to pass the extra costs on to consumers. There is hardly any sign of relief in the short term, and rates are therefore likely to continue spiking in the second half of this year, as rising global demand will con- tinue to be met with limited increases in shipping capacity and the disruptive effects of lo- cal lockdowns, according to a report by economists at ING. Even when new capacity arrives, container liners may continue to be more active in managing it, keeping freight rates at a higher level than before the pandemic, they say. Container liners have enjoyed outstanding financial results during the pandemic, and over the first five months of 2021, new orders for con- tainer vessels reached a record high of 229 ships with a total cargo capacity of 2.2 million TEU. When the new capacity is ready for use, in 2023, it will represent a 6% increase after years of low deliveries, which the scrapping of old vessels is not expected to offset,” the report said. Along with global growth moving past the catch-up phase of its recovery, the com- ing increase in ocean freight capacity will put downward pressure on shipping costs but won’t necessarily return freight rates to their pre-pandemic levels, as container liners seem to have learned to manage ca- pacity better in their alliances. In the near term, freight rates may yet reach new highs thanks to the combination of further increases in demand and the constraints of a con- gested system. And even when capacity constraints are eased, freight rates may remain at higher levels than before the pandemic. What is the way out? A de- cline in port handling charges, customs duty and VAT reliefs by governments could help ease the situation. Ship own- ers, shipping agencies, freight forwarders could chip in. However, it needs a quick and coordinated response – as soon as possible. “WITH MORE THAN 85% OF THE GOODS TRADE TRANSPORTED BY SEA, FREIGHT RATE INCREASE THREATENS TO PUSH UP THE PRICE OF EVERYTHING FROM TOYS, BUILDING MATERIALS, FURNITURE, AUTO SPARE PARTS, AND COMPONENTS OF ALL TYPES OF GOODS TO TEA AND COFFEE – COMPOUNDING CONCERNS ON RISING INFLATION.” Rizwan Sajan, Founder and Chairman, Danube Group
30 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM B2B ECOMMERCE LNME T he food and beverage industry has always faced consider- able consumer, food safety and regulatory challenges. Consum- ers expect companies to source ingredients sustainably and ethi- cally, to do more for less and ‘business as normal’ or ‘the status quo’ isn’t going to produce returns on investment. When 2020 started, only 56% of com- panies in the food and beverage industry had an eCommerce presence. With the outbreak of the pandemic, these compa- nies were able to compete and capitalise on the surge in online sales triggered by the pandemic. The accelerated digital transformation has changed many parts of our lives beyond recognition. The smart phone has enabled the business consumer to communicate and do business ‘on-the- go’. One of the biggest spikes we have witnessed during 2020 is the surge in online food sales which made it clear that the digitalisation of B2B eCommerce is now inevitable. ACCELERATED DIGITAL TRANSFORMATION In 2020, B2B has overtaken B2C sales through online transactions, with B2B reaching a worldwide market value of USD7.7 trillion, as opposed to the USD2.3 trillion of B2C. The World Eco- nomic Forum has estimated the UAE’s 2020 eCommerce market to be valued at USD27.2 billion. The eGrocery market grew by 300% during the third quarter of 2020 in the UAE, while Saudi Arabia’s market has grown by 500%. The buying behaviour initiated by the pandemic continued even after the lock- down was lifted. An unhappy customer isn’t a repeat customer, so businesses had to align their internal processes to meet buyer demands as quickly as possible. And this is the current reality being faced by many food & beverage industry sup- pliers. The advent of technology and the need for personalized online experiences has created new dynamics in the ever-evolv- ing F&B industry. According to a report by The Business Research Company, the global food & beverage eCommerce mar- ket is expected to grow from USD25.36 billion in 2020 to USD31.25 billion in 2021 at a compound annual growth rate (CAGR) of 23.2% and is projected IGOR NIKOLENKO, CO-FOUNDER & CEO OF SUPPLYME, OUTLINES HOW ECOMMERCE IS PICKING UP IN THE FOOD AND BEVERAGE SECTOR GROWTH OF ECOMMERCE IN THE F&B INDUSTRY
LOGISTICS NEWS ME | SEPTEMBER 2021 | 31 GROWTH OF ECOMMERCE IN THE F&B INDUSTRY “SMALL AND MEDIUM F&B COMPANIES CAN TAKE ADVANTAGE OF THE SHIFT AND CLAIM THEIR SHARE OF THE PIE BY CREATING A COMPELLING ONLINE PRESENCE LISTING THEMSELVES ON MARKETPLACES AND ECOMMERCE PLATFORMS.” to reach USD66.95 billion in 2025 at a CAGR of 21%. The change in growth trend is mainly due to the companies stabilising their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2020. HEIGHTENED INTERNET PENETRATION Experts have predicted that by 2022 online grocery shopping is expected to be a USD100 billion business. One of the major drivers of the growth in the F&B eCommerce is the increase in smartphone users and internet penetration. Ultimately, supplier and producer’s cost will be the key restraint for the food and beverage eCommerce mar- ket. These include the cost incurred for order fulfilment, delivery cost, adjusting business resources to dy- namic market demand and last-mile connectivity. A report from Capgemini in 2019 shows that retailers’ net profit could fall by up to 26% in the next three years, if they don’t radically improve last-mile solutions, despite increased online grocery sales. Since the industry deals with prod- ucts that have a limited shelf life, organisations need to have a robust supply chain and meet consumer demands to grow and achieve profit- able margins. >>> Igor Nikolenko, Co-founder & CEO, SupplyMe
32 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM B2B ECOMMERCE LNME CONNECTING BUYERS WITH CUSTOMERS B2B eCommerce platforms such as Sup- plyMe that connects local food suppliers with restaurants, hotels, cafes, supermar- kets, and other foodservice businesses of all sizes is the best bet for manufacturers and suppliers to reach out to the millen- nial generation taking over executive-level realms at companies and give them every- thing they need to do business in the most streamlined manner possible. Small and medium F&B companies can take advantage of the shift and claim their share of the pie by creating a compelling online presence listing themselves on mar- ketplaces and eCommerce platforms. B2B eCommerce platforms with their user-friendly interface, low costs, and trackable delivery options have made eCommerce trend over traditional sellers and present a huge opportunity for the food and beverage sector, considering the growing digital maturity of the industry. Successful B2B businesses understand the importance of digital readiness and use digital tools to help them streamline their operations and meet fast-changing consumption and purchasing patterns. The platform can help food & beverage companies to optimise the entire experi- ence from research to delivery. The app can help businesses to tap into new and difficult-to-reach markets, prioritize cus- tomer service, lower operating costs, and increase the bottom line. B2B ECOMMERCE PLATFORMS Another significant benefit of a B2B eCommerce platform for the F&B indus- try includes the ease of access to all sales related activities, which in turn makes it easier to plan the stock based on demand, facilitate returns, obtain copy invoices, and live statements of accounts through the platform. Also, setting up a price in B2B eCom- merce can get quite complex. Prices may depend on the purchasing volume, pre-ne- gotiated discounts, frequency of purchas- ing, and many other factors such as the type of business. These complex scenarios call for the ability to create and custom- ise multiple price list for each customer, company, or business unit willing to deal with your business. B2B market- place platform enables businesses to use flexible pricing models, giving them an element of control over the transactions made through the platform. Additionally, B2B eCommerce plat- forms allows businesses to leverage data and analytics to segment audiences and deliver the right messages at the right time. Data is accumulated to gather insights into customers buying pattens, help them penetrate new markets, im- prove conversions. Delivering the right message directly to their screen helps organizations to increase their average order value and drive brand loyalty. ENHANCING CUSTOMER EXPERIENCE To gain a competitive edge over busi- ness rivals, meet customer expectations, and keep costs to a minimum, major supermarkets, and food companies large or small are now much more conscious of the need to map out and understand their supply chains. In this day and age of the experience economy, B2B online marketplaces can enhance the customer experience by making the journey easier and seamless and provide more than just functional and rational benefits. The digital transformation in the F&B industry has turned processes that were disorganised, time-consuming, and burdensome into something simple and convenient helping organisations recover the lost revenue and to save more.
34 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM SUPPLY CHAIN LNME STRENGTHENING THE AUTOMOTIVE SUPPLY CHAIN I f any event reveals the need for resilient supply chains, it’s COVID-19. The disruptions shook every industry, including automobile. Early 2020 forecasts projected a significant drop in new vehicle sales, but ultimately turned out much better with only a 15% reduction from the total 2019 sales. It’s no surprise the pandemic has prompted several automotive companies to embrace new supply chain strategies that allowed them to recover quickly while also setting them up for future growth. Many automotive companies set up crisis teams and control towers to improve visibility and maintain profit- ability, which in turn developed into an advanced strategy around predictive risk management and multitier supplier collaboration. Managing shortage Even with the automotive industry embracing new supply chain practices, another disruption has risen in the semicon- ductor chip shortage. With modern vehicles often containing thousands of semi- conductors, this crisis underscores another dimension of sup- ply chain risk exposure and highlights the critical need to col- laborate with multitier partners for globally limited supplies. KHALED ALSHAMI, SENIOR DIRECTOR, SOLUTION CONSULTING, MIDDLE EAST & AFRICA, INFOR, WRITES WHY BUILDING TRUST AND VISIBILITY ACROSS THE AUTOMOTIVE SUPPLY CHAIN IS CRUCIAL
LOGISTICS NEWS ME | SEPTEMBER 2021 | 35 STRENGTHENING THE AUTOMOTIVE SUPPLY CHAIN When the automotive de- mand initially dipped, chip manufacturers saw a rise in demand from other sectors like home electronics and high tech, creating a diversion from chip manufacturers to fulfill- ing demand from these other sectors. When automotive demand bounced back earlier than anticipated, the limited supply was painfully exposed. The microchip crisis mostly emerged due to the semicon- ductor industry’s diamond- shaped supply chain. In this type of supply chain network, only a few manufacturers are completely vertically inte- grated and self-reliant as most manufacturing is outsourced to sub-tier suppliers who are often capacity constrained and stretch lead times. Any disrup- tion at the sub-tier level direct- ly affects the tiers above, and indirectly affect the OEMs. OEMs with visibility into sub-tier supply levels are better positioned to identify bottle- necks early and better manage the crisis. Now manufacturers are starting to realize that sup- ply chain visibility and suppli- er collaboration are no longer ‘nice-to-have’ capabilities but have become table stakes for staying competitive or in busi- ness at all. Harnessing visibility to build resilience Sustained collaboration only comes when transparency cre- ates trust across the network. Supply chain visibility can carry different meanings de- pending on who you ask, but at its core it’s about providing transparency and access to supply chain events. This gives your organisation the ability to see where orders and goods are in the network, enabling collaboration and synchronisation between part- ners, customers, dealers, etc. On the demand side, many automotive companies in- crease visibility through customer preference research, creating better forecast models and mix levels. Achieving vis- ibility into the demand and supply outlooks allows for early detection of risk so better decisions can be made sooner. Creating a culture of provid- ing visibility to the network sounds great, but it’s difficult to achieve. The ability to share information both within and outside the four walls of your company is constrained by behaviours built over decades. Some of these behaviours need to be dismantled so higher levels of trust are established and generate this degree of visibility. To build this level of trust, digital ecosystems should incorporate stringent identity and access controls related to network participant activities and data access. Multi-enter- prise collaboration platforms or digital supply networks provide the appropriate se- curity that can foster more trusting behaviours and user adoption of new technologies within the network. This encourages OEMs and suppliers to share informa- tion at scale in a sustainable manner that wasn’t possible before, which is the key to cre- ating an agile and responsive supply chain. “SUSTAINED COLLABORATION ONLY COMES WHEN TRANSPARENCY CREATES TRUST ACROSS THE NETWORK. SUPPLY CHAIN VISIBILITY CAN CARRY DIFFERENT MEANINGS DEPENDING ON WHO YOU ASK, BUT AT ITS CORE IT’S ABOUT PROVIDING TRANSPARENCY AND ACCESS TO SUPPLY CHAIN EVENTS.” Khaled AlShami, Senior Director, Solution Consulting, Middle East & Africa, Infor
36 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM SUPPLY CHAIN LNME F ollowing a year of intense changes in the logistics indus- try, new research from Reuters Events Supply Chain in partner- ship with Blue Yonder reveals the priority strategies and invest- ments for supply chain execu- tion and risk management. The State of Supply Chain Execution Report 2021 analysed responses of supply chain professionals and found that the COVID-19 pandemic, customer centricity, rising eCommerce complexity and costs, need for Direct-to-Consumer (D2C), and the risk of financial peril are propelling retailers, manufacturers, and logistics service providers (LSPs) to digitally transform. Companies looking to capitalise on the omni-channel opportunities created by increased online-order volume over the last 18 months are now prioritis- ing more agile delivery and fulfilment models, like D2C. Retailers’ and manu- facturers’ online sales increased more than 120% over the past year. LSPs have also seen eCommerce volumes explode, reporting a 200% increase compared to 2019-2020. “As the economy transitions to a post- pandemic environment, retailers, manu- facturers and LSPs are transforming their transportation and broader supply chain operations to address their most pressing supply chain challenges,” said Raj Patel, senior director, 3PL Industry Strategy, Blue Yonder. “In the long term, investment in execu- tion systems like Transportation Man- agement Systems (TMS) and Warehouse Management Systems (WMS), as well as end-to-end visibility, automation, and cloud strategies will help them – and their customers – build more sustainable, resilient and agile organisations for the future.” Re-evaluation of supply chain risk management From constraints on raw materials to labour shortages to growing cyberse- curity threats on distributed networks, pandemic-related challenges have shifted supply chain risk management priorities: > Respondents are hesitant to pursue near/onshoring plans, with only 29% of retailers/manufacturers making an invest- ment. > 63% of retailers/manufacturers stated that dual sourcing was a favoured strate- gy for risk management moving forward. Constraints on the availability of raw materials caused supply side disruptions, even for those with distributed manufac- turing facilities. > Environmental concerns are also being considered when planning for supply chain risks. Over half (53%) of retailers/ manufacturers and half (50%) of LSPs plan to invest in sustainability as a strat- egy for risk management. Digital-first practices and technology investments With the growth of eCommerce, invest- ment in modern supply chain technolo- gies and new approaches have become essential for businesses to keep pace with shifting trends and customer expecta- tions. The report found that there are various factors driving investment in supply chain technologies and digital-first practices. LSPs cited the pressure to reduce supply chain costs (58%) while also improving service levels for their retailer customers (48%) and dealing with labour shortages (30%). In the current supply chain environ- ment, companies are moving away from legacy systems and prioritising technolo- gies that enable visibility for customers and their operations, automate processes and support enterprise agility. 63% of retailers/manufacturers and 60% of LSPs agreed that end-to-end visibility is cur- rently yielding the highest ROI in their supply chain execution process. Roughly half (48%) of retailers/manu- facturers and more than half (57%) of LSPs have a robust cloud strategy in place, helping to create high levels of infrastructure agility that on-premises, legacy technology systems can’t achieve. NEW BLUE YONDER AND REUTERS EVENTS REPORT SURVEYS RETAILERS, MANUFACTURERS, AND LOGISTICS SERVICE PROVIDERS TO IDENTIFY TOP SUPPLY CHAIN PRIORITIES AND STRATEGIES IN 2021 DRIVES INVESTMENTS IN SUPPLY CHAIN ECOMMERCE GROWTH
18TH IRF WORLD MEETING & EXHIBITION R O A D S TO TO M O R R O W 7-10 NOVEMBER 2021 | DUBAI | www.irf2021.global 4 DAYS CONFERENCE TRACKS SESSIONS SPEAKERS ATTENDEES 60 12 250 2500 DELIVERING SOLUTIONS TO THE WORLD’S MOBILITY CHALLENGES FOR MORE INFORMATION VISIT www.irf2021.global PLATINUM SPONSORS BRONZE SPONSORS MEDIA PARTNERS GOLD SPONSORS SILVER SPONSORS
38 | LOGISTICS NEWS ME | SEPTEMBER 2021 WWW.CBNME.COM AUTOMATION LNME A utomation expert Swisslog has revealed that many warehouse operators that do not know the controls and component on which their automated systems depend on can experience a vulnerable situation due to unplanned downtime. Control system suppliers, for example, routinely introduce new components and end-of-life older ones. If you do not know you have components that are already, or are approaching, obsolescence you may find yourself struggling to find replace- ments for failed parts. Instead of replac- ing a component, you are faced with the challenge of modernising the panel with- out the benefit of being able to schedule work around planned downtime. Minimising risk Developing a strategy for keeping au- tomation systems and software current and in good working order is essential to minimising risk and maximising equip- ment performance. At Swisslog, we have developed several programmes to help our customers extend the life of their warehouse and get more from their in- vestment in automation. These include: Hardware modernisation: Our hard- ware modernisation programmes begin with a comprehensive audit to identify all relevant components, their manufacturer, and their risk of obsolescence. We then develop a plan to address any vulner- abilities. In some cases, the automation systems themselves may be so old they can no longer deliver reliable service and may be recommended for replacement. Once the initial work is complete, we use the list of system components and our knowledge of product lifecycles to continually and proactively identify components that are at risk of obsolescence. This transforms modernisation from an event into a continuous process that can be managed with minimal investment and disruption. Safety standards Safety assessments: Safety standards, like technology, are continually evolving. Our safety assessments review existing equip- ment considering newer safety regula- tions and recommend changes that bring systems in compliance, such as adding doors to cranes or using light curtains in place of mechanical gates. Software updates and upgrades: Keep- ing software current is as important as maintaining hardware. Whether it is per- forming technology updates necessitated by changes to the underlying software systems, upgrading from previous genera- tions of Swisslog software to SynQ or installing SynQ to prepare for automa- tion, Swisslog can manage all aspects of a software update or upgrade. We even of- fer IT Managed Services in which our ex- perts assume responsibility for managing all the IT systems and software required to keep your equipment operating at peak performance. Meeting current needs System expansions: One of the benefits of the current generation of automation sys- tems delivered by Swisslog is the ability to size systems to meet current needs while maintaining the flexibility to expand the system when needs change. We have the experience and expertise to plan system expansions to maximize your investment in automation and minimise the impact on operations. Whether you are operating cranes, Au- toStore, CarryPick or one of our shuttle systems, Swisslog can help you design and implement the upgrades and expansions that give you the storage and throughput you need to enable continued growth. From modernising hardware to upgrad- ing software and expanding modular automation systems, Swisslog has the experience and expertise to develop a strategy and plan that minimises the impact on existing operations and deliv- ers the reliability and performance your business needs. DEVELOPING A STRATEGY FOR KEEPING AUTOMATION SYSTEMS AND SOFTWARE CURRENT AND IN GOOD WORKING ORDER IS ESSENTIAL TO MINIMIZING RISK AND MAXIMIZING EQUIPMENT PERFORMANCE IMPROVING WAREHOUSE AUTOMATION VALUE “In some cases, the automation systems themselves may be so old they can no longer deliver reliable service and may be recommended for replacement.”
Your go to delivery solution! Introducing New Renault Duster Cargo An efficient, reliable & modern fleet solution This is a first-of-its-kind Cargo SUV model which is now available across Al Masaood Automobile , Renault showrooms in Abu Dhabi & Al Ain. Bluetooth Automatic Transmission Fuel Efficiency Cruise control with speed limiter ½ a ton boot capacity Call us at 800 300 500 to place an enquiry Or visit our website https://abudhabi.renault.ae/DusterCargo.html