GLOBAL SUPPLY CHAIN OCTOBER 2020 by GLOBAL SUPPLY CHAIN

October 2020 Issue 73

ENHANCING THE BUSINESS OF LOGISTICS

Supply Chain Execution Systems Ehrhardt Partner Group For Smarter Connected Logistics Fetchr

Fast track expansion

Saudi Arabia

Changing logistics landscape

ADP Acquisition New synergies

TURKISH CARGO CONTINUES TO RISE. TURKISH CARGO BECAME THE ONLY AIR CARGO BRAND TO HOLD IATA CEIV PHARMA, IATA CEIV ANIMALS AND IATA CEIV FRESH CERTIFICATIONS, ONE OF THE MOST PRESTIGIOUS CERTIFICATES FOR THE AIR CARGO INDUSTRY.

turkishcargo.com.tr

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                                                                         ’                                

     

Destiny Digital, Trending Technology SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused. Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.

It is now inevitable and irrefutable that more and more companies in the supply chain domain and logistics services providers are increasingly gravitating towards the digital realm and new, emerging technologies. Automation, Artificial Intelligence (AI), Blockchain, Virtual Reality (VR), 3D Printing, Data Science, the Internet of Things (IoT) and 4IR (Fourth Industrial Revolution) to name a few are the new buzzwords, much hackneyed perhaps but clearly the norm. Definitely, technology is the new lodestar. This sentiment underscores our Cover Story narrative on the Ehrhardt+Partner Group (EPG), a global company in warehousing and logistics automation with an established, long-time presence in the region. In fact, EPG holds the distinction of being the first corporate entity to be established in Dubai Logistics City in the sprawling Dubai South. We journeyed to the company’s self-owned Regional OfficeWarehouse-Demonstration Centre Complex to exclusively interview Dr. Makrem Kadachi, General Manager, Ehrhardt + Partner Solutions, Middle East Africa (MEA) & Asia-Pacific (APAC). Elsewhere, Brian Cartwright, our regular contributor and Client Partner, Supply Chain and Logistics for Pedersen & Partners meets exclusively with Hussein Wehbe, CEO, Fetchr, for the lowdown, prospects and business vision for the future of the express transportation and last-mile-delivery company. Also in this edition we feature Saudi Arabia, the largest regional economy in our ‘Country Report Focus’ series. The Kingdom’s freight and logistics industry is a large and dynamic industry, strongly supported by state-led investments in rail, maritime, road, logistics, and airport infrastructure. Economic growth, population maturation, and rapid urbanization are the factors driving the Saudi Arabian Government to invest in the massive expansion of the country’s transportation networks all part of the wider ‘Saudi Arabia Vision 2030’, the futuristic and ambitious strategy for economic diversification as initiated and envisaged by HRH The Crown Prince Mohammed Bin Salman. We also have a first-person account of how Tranzone is harnessing Six Sigma Methodology in Pharma Procurement and Distribution. It has been a busy nine months for the company following the onset of the pandemic. Staying with the pandemic, Eelco Dijkstra, Managing Partner, Europhia Consulting, and Laurent Foetisch of Switzerland-based Supply Chain Operations, assess the logistics and complexities of making an approved vaccine available globally. Also included in this edition, as always, is the news roundup and curated thought leadership articles of interest to logistics and supply chain professionals.

Happy reading! Malcolm Dias

Editor malcolm@signaturemediame.com

OCTOBER 2020 3

October 2020 Issue 73

06 NEWS

20 Erhardt Partner Group (EPG)

28 Sanad-Mubadala

48 ACME

Up to date news of the Global Suppy Chain industry Sanad and Etihad Airways expand US$ 900mn partnership

30 Fetchr

CEO Hussein Wehbe outlines his vision for the future.

Shipwaves

Making the case for seamless integration of tailored technologies in supply chains.

Country Report: Saudi Arabia

Aramex

The Kingdom is prioritizing upgrades to its logistics, supply chain, transportation infrastructure. The express transportation company is raising its profile in Abu Dhabi.

46 Tranzone

Applying Six Sigma methodologies have boosted efficacies in pharma procurement and distrubution.

4 OCTOBER 2020

Pioneering Warehousing and Logistics Automation Solutions.

Along with partners Kardex Remstar and Optimus Sorters, ACME is offering a range of order picking solutions.

54 Vaccine distribution complexities Eelco Dijkstra and Laurent Foetisch discuss the Covid-19 vaccine downstream solutions.

56 Cybersecurity Caution

Companies are very vulnerable to cybersecurity breaches in pandemic times and how to combat these.

Craig: 58 Tom Supply Chain Vulnerability

Talking Supply Chain resilience and business continuity.

60 ADP-MICCO

ADPâ&#x20AC;&#x2122;s acquisition of MICCO expand the port operatorâ&#x20AC;&#x2122;s growing portfolio.

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Emirates SkyCargo signs humanitarian logistics MoU with International Humanitarian City

Al-Futtaim HINO bags major NFPC order of 200 trucks

HINO has bagged a large order from NFPC.

n Al-Futtaim HINO, the automotive company that Nabil Sultan and Giuseppe Saba at the MoU signing ceremony.

n Emirates SkyCargo and International Humanitarian City (IHC), the world’s largest hub for humanitarian aid, have signed an MoU to cooperate on humanitarian logistics and crisis relief solutions. The MoU was signed by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo and Giuseppe Saba, CEO, International Humanitarian City. The partnership between the two entities underlines Dubai’s position as an international gateway for the rapid deployment of aid and relief efforts directed at humanitarian crises. Under the terms of the MoU, Emirates SkyCargo and IHC will work together to develop innovative logistics solutions for effective crisis relief operations. Emirates SkyCargo will be the air cargo carrier of first resort for transportation or urgently required aid materials to affected destinations. In addition, the two organizations will work together to share know-how and develop best practices around the transportation of specialized cargo for relief efforts. “Over the years, Emirates SkyCargo has operated a number of flights and transported relief cargo on behalf of International Humanitarian City in response to humanitarian disasters and crises around the world, ,” commented Sultan. “The high standards and excellent service delivery of Emirates SkyCargo will continue to add a lot of value to the IHC community crisis response mechanism and our synergies will enable us to work together as one humanity,”added Saba. 6 OCTOBER 2020

exclusively franchises light, medium and heavy-duty HINO trucks in the UAE, has recently announced the delivery of a major order of 200 HINO trucks to the National Food Product Company (NFPC) cementing its leadership of the FMCG sector in the UAE, a press communiqué indicated. Al-Futtaim HINO which has increased its market share by around 300% in the past five years has been the preferred mobility partner for many FMCG companies thanks to HINO’s unmatched Japanese quality and reliability and AlFuttaim’s dedicated after-sales support. With the latest handover, NFPC’s fleet of HINO trucks grows to 450 HINO trucks, following a similar deal of 250 trucks in 2019. NFPC will use the HINO 916XLWB-6TON trucks to boost its delivery operations which include water shutters, chillers and freezers. “With this deal, we are further cementing our strong relationship with NFPC whose fleet primarily consists of HINO trucks,” remarked Ramez Hamdan, General Manager, Al-Futtaim HINO. The pandemic has resulted in a huge boost to e-commerce and this has had a corresponding increase in our light-duty truck sales which now makes up 65% of our sales primarily to FMCG and logistics operators,” he added. The 200 HINO trucks will be custom-fitted by Al Furat to meet the specific requirements of NFPC and which adhere to UAE safety standards. The HINO line-up in the UAE consists of light-duty 300 series, medium-duty 500 series and heavy-duty 700 series.

DP World and Dubai Customs to explore trade links with Israel n Group Chairman and Chief Executive of DP World, Sultan Ahmed Bin Sulayem, recently signed preliminary agreements with DoverTower, a company owned by Shlomi Fogel, the Coowner of Israel Shipyards and Port of Eilat. DP World, one of the world’s biggest port operators, and Dubai Customs will explore opportunities to develop trade links between the UAE and Israel as the countries normalize relations. The two sides have already signed a series of agreements to discuss the possibilities of developing trade infrastructure, the company said on Wednesday. Bin Sulayem signed the preliminary agreements with

Sultan Ahmed Bin Sulayem, signed preliminary agreements with DoverTower, owned by Shlomi Fogel, the co-owner of Israel Shipyards and Port of Eilat. DoverTower, a company owned by Fogel, The agreements create a framework for the companies

to work together in assessing opportunities to develop infrastructure for trade between

Israel and the UAE, as well as within Israel and the region. DP World will assess the development of Israeli ports and free zones and the potential establishment of a direct shipping route between Eilat and Jebel Ali port, the biggest in the Middle East. Dubai Customs will facilitate trade between private entities in the two countries. Drydocks World will explore business opportunities with Israel shipyards, the company said. “The MoUs will contribute to the efforts to tap economic and trade cooperation opportunities, and facilitate developmentoriented linkages between the two countries,” asserted Bin Sulayem.

Abu Dhabi Ports’ Smart Container Initiative to cut emissions by half n As part of its ongoing digital

transformation drive, Abu Dhabi Ports has launched the Smart Container Initiative that will house its digital solutions in a resilient, safe and optimized eco-friendly mobile environment. Powered by clean energy, the solar-panelled steel and aluminium smart container uses environmentally friendly technologies such as in-row cooling, renewable energy and efficient space allocation that will reduce Power Usage Effectiveness (PUE) by more than 20 percent and will slash carbon emissions by half. The prefabricated containerized data centre runs a wide range of mission-critical applications, including port and terminal operation systems, visitor passes, and other digital

Abu Dhabi Ports launches Smart Container Initiative, eco-friendly mobile data centres housed in a safe and optimised environment. customer services. “Abu Dhabi Ports’ Smart Container Initiative reflects our commitment to devise and

accelerate sustainable ecofriendly digital transformation solutions and in line with the Sustainable Development Goals

(SDGs) put forward by the United Nations,” affirmed Captain Mohamed Juma Al Shamisi, CEP, Abu Dhabi Ports Group. “Adding value across our port operations while maintaining the highest safety standards for our data is imperative in creating a successful streamlined service,” remarked Dr Noura Al Dhaheri, Head of Digital Cluster and CEO, Maqta Gateway, Abu Dhabi Ports. A crucial element in Abu Dhabi Port’s digitalization success lies in its ability to offer differentiation through hybrid cloud architecture. Its adaptation enables Abu Dhabi Ports to respond faster to digital demands, control costs and provide more competitive pricing to its customers. OCTOBER 2020 7

Abu Dhabi Ports announces expansion of Khalifa Port is on course

SAL and Saudi Customs officials ink the deal.

Khalifa Port aerial view.

n Abu Dhabi Ports recently announced that Khalifa Port’s expansion is on pace for completion. Upon completion, the project is expected to substantially increase handling volumes by providing additional deep-water access and enhanced infrastructure. To date, 200m of quay wall and almost 175,000sqm of land within Khalifa Port Logistics (KPL) have been handed over ahead of the project’s full phase one completion in Q1-2021. At the same time, considerable progress has also been made on the first phase of Khalifa Port’s South Quay development that is slated for completion by Q4-2020. With 80 percent of construction already complete, a total of 650m of quay wall, containing two berths alongside 37,000sqm terminal yard is now available in advance of receiving its first shipment. Progress has also been made on Abu Dhabi Terminals’ (ADT) expansion plans with the delivery of five new shipto-shore cranes. With each unit boasting a lifting capacity of 90 tonnes, the new cranes have boosted capacity at the terminal significantly and have put Khalifa Port Container Terminal on track to meet its target of 5mn TEU by the end of the current year. “We are confident that the ongoing expansion of Khalifa Port will significantly enhance our operational and cargo handling capabilities,” commented Saif Al Mazrouei, Head of Ports Cluster, Abu Dhabi Ports. Arabian Chemical Terminals (ACT) which recently signed a 50-year agreement to establish the first commercial bulk liquid and gas storage terminal at Khalifa Port will be located on a plot with 16-metre direct deepwater quay access within the newly developed KPL. This project is well underway with the Front-End Engineering Design (FEED) having been awarded in May 2020. 8 OCTOBER 2020

SAL now runs operations of customs security areas at main airports n Saudi Arabian Logistics (SAL),

a member of the Saudi Arabian Airlines Corporation, has officially begun running the operations of customs security areas across most Kingdom’s airports. The decision, which came into effect on September 10, is a part of the Memorandum of Understanding (MoU) signed previously by the Saudi Customs and the National Industrial Development and Logistics Program (NDLP), under the patronage of the Crown Prince HRH Mohammed Bin Salman. Saudi Customs ViceGovernor Suleiman Bin Abdullah Al-Tuwaijri and SAL Deputy Chief Business Development and Corporate Relations Officer Abdulrahman Ma’en Al-Mubarak signed the agreement at the Saudi Customs headquarters in Riyadh in the presence of Saudi Customs Governor Ahmed bin Abdulaziz Alhakbani and SAL CEO Omar Hariri. According to the agreement, Saudi Arabian Logistics, which offers specialized groundhandling and logistic services, will fully operate the designated areas starting September 1, 2020.

These services cover Kingdom’s main airports including King Abdulaziz International Airport, Jeddah; King Fahad International Airport, Dammam; Prince Mohammed Bin Abdulaziz International Airport, Madinah; Prince Sultan Bin Abdulaziz International Airport, Tabuk; Prince Naif Bin Abdulaziz International Airport, Qassim; Taif International Airport and Abha International Airport. The new procedure is expected to reduce the time of import operations, improve the efficiency of cargo clearance and security process, increase the storage capacity, facilitate the cargo acceptance and delivery procedures, and enhance full coordination between both parties to offer services in line with the Kingdom’s Vision 2030, which aims to turn the Kingdom into an international leading logistic hub. Saudi Arabian Logistics delivers ground-handling services to different local and International airliners across the Kingdom’s airports. Its multiple logistics activities include offering support and supply solutions to all modes of transport and linking them to airports.

Etihad Airways moves to reduce in-flight food wastage n Etihad Airways has partnered with Singapore food technology startup Lumitics to trial the use of computer vision and machine learning in order to reduce food wastage on Etihad flights, a press report indicated. The partnership will see Etihad and Lumitics track unconsumed Economy class meals from Etihad’s flights, with the collated data used to highlight food consumption and wastage patterns across the network. Analysis of the results will help to reduce food waste, improve meal planning and reduce operating costs. “Etihad remains committed to this project which will have the potential to support the drive to reduce food wastage,” assured Mohammad Al Bulooki, COO, Etihad Aviation Group. Lumitics’s product Insight Lite will track unconsumed meals from a plane when it touches down at an airport. Using AI and image recognition, Insight Lite is able to differentiate and identify the types and quantity of unconsumed meals based on the design of the meal foils, without requiring manual intervention. “Tackling food waste is one of the largest cost saving opportunities for any business producing and serving food. Not only does

Food waste trial. it make business sense, it is also good for the environment,” remarked Rayner Loi, Co-founder and Chief Executive, Lumitics. The pilot scheme with Lumitics is one of many sustainability focused initiatives

undertaken by the airline, following the launch of its Etihad Greenliner programme, which is designed to help improve operating efficiency and sustainable practice through engagement with expert partners.

UAE’s Al Faris on track with Etihad Rail project n Al Faris has reported it conducted 250 trips across

26 days in order to transport the 25 m-long rail tracks 250 km from Mina Zayed port to the Etihad laydown area in Ghiyathi, Abu Dhabi. Each journey took approximately 4.5 to 5 hours. To date, the company transported 12,000 tonnes of railway tracks for the Etihad Rail project in the UAE. Al Faris fabricated ten flatbed trailers specifically for the project; each trailer was extended up to 25m in length to accommodate the long loads. All road surveys, planning, technical support documentation, authority permissions, execution plans and schedules were prepared in-house prior to the moves. According to Al Faris, this helped organize all activities smoothly with minimum delays. When completed the 1,200 km Etihad railway project will connect the seven emirates of the UAE to its neighbouring GCC countries.

An Al Faris fabricated flatbed trailer used for Etihad Rail project.

OCTOBER 2020 9

Turkish Cargo builds global air bridge for special cargo shipments n Carrying 5 percent of the global air cargo carried around the world, Turkish Cargo increased its international market share to 5.4 percent reflecting a growth by 67 percent within the first half of 2020 thanks to its special cargo operations beefed up by building up a global air bridge. The global air cargo brand carried 30 thousand tons of medicines and nearly 10 thousand tons of medical equipment between 1 February and 31 August 2020. It is the first air cargo brand that holds all of the three certificates, namely the ‘CEIV Pharma’, ‘CEIV Fesh’ and ‘CEIV Live Animal’, issued by the International Air Transport Association (IATA). Turkish Cargo ensures protection at high standards at its special cargo storage rooms with various temperature ranges

available at its facilities with a total area of 3.500sqm at the Istanbul Ataturk airport. Possessing all of the capabilities as required for transporting the vaccine, which will be developed against the global pandemic, all around the world, Turkish Cargo minimizes the risk for the health-care products with a high level of sensitivity by making use of the active temperature-controlled Envirotainer and CSafe containers, the electrical airconditioning container Opticooler, Thermal Dolly and disposal thermal sheets equipped with thermal isolation features. For the past 30 years, Turkish Cargo has adhered to the highest standards and regulations, Turkish Cargo transports the endangered animals in harsh conditions to their natural living environments, a press statement concluded.

Renault Trucks markets new model modified certified for MEA n For customers operating on the African

continent and in the Middle East, where Euro 3 legislation is in force, Renault Trucks has developed the T X-Port. The Renault Trucks T Euro 6 model has been converted to Euro 3 using strict industrial processes in the company’s specialized Used Trucks Factory workshops, in order to guarantee the highest level of pollution reduction in force in these markets, the truck manufacturer confirmed in a press communiqué. The conversion starts with dismantling the Euro 6 components, namely the silencer and AdBlue components, which are then sent to the manufacturer’s recycling network. Operators at the Renault Trucks Used Trucks Factory then install the Euro 3 components and the reinforced filtration system. The software and manufacturer’s documentation are updated, allowing the vehicle to be recognized throughout the network with its new features. After conversion, the Renault Trucks T X-Port’s emission levels and engine performance (power and torque) are 10 OCTOBER 2020

Renault Trucks T X-Port, the new used truck for Africa and the Middle East. certified by UTAC, an independent international organization. The truck undergoes the same quality process as a new vehicle. The Renault Trucks T range meets the needs of all companies operating in the road haulage sector: industrial transport, controlled temperature transport, tanker transport, and livestock transport. It offers

customers the perfect balance between fuel savings and life on-board. Finally, all Renault Trucks T models are fitted with the Optidriver transmission as standard. This automated gearbox selects the right gear at the right time according to speed, load and driving style in order to guarantee better mobility and greater comfort while driving.

Bahri boosts dry-bulk fleet with addition of new-build Alanood n Bahri recently announced that it took delivery of its new drybulk carrier ‘Alanood’ on 31 August, making it the second newbuild vessel to join the company’s market-leading fleet this year. The Kamsarmax-class carrier lifts the number of Bahri’s drybulk fleet to seven, cementing its reputation as a leading regional player in the bulk shipping industry. ‘Alanood’ is also the second ship received as part of the agreement signed between Bahri business unit Bahri Dry Bulk and South Korea’s Hyundai Mipo Dockyard Co. Ltd. (HMD) in August 2017 to build and deliver four new dry-bulk carriers by 2020. The new vessel was built by Hyundai Vietnam Shipbuilding (HVS), a subsidiary of HMD, and takes the total tally of Bahri’s

wide-ranging vessels to 88, including 41 VLCCs, 34 chemical and product tankers, 7 dry-bulk carriers, and 6 Ro-Ro ships. A further 10 chemical tankers, 2 dry-bulk carriers, and a VLCC are currently under development. “We are confident that ‘Alanood’ will give us enhanced operational flexibility and efficiency to meet the needs of our customers around the world and enable us to boost our contribution to the smooth functioning of global supply chains,” remarked Eng. Abdullah Aldubaikhi, CEO, Bahri. In May 2020, Bahri took delivery of the dry-bulk carrier ‘Sara,’ which was also built at the HVS dockyard in Vietnam under the latest international technical specifications. With the new additions, Bahri is further equipped to meet the growing demand in the Kingdom for imports of basic grains, such as wheat, barley, corn, and other dry-bulk cargoes.

Bahri Alanood Dry-Bulk Carrier.

AASTMT Sharjah initiates collaboration with the UAE Federal Transport Authority n The Arab Academy for Science,

Technology and Maritime Transport, Khorfakkan-Sharjah (AASTS) has successfully commenced talks for collaboration with The Federal Transport Authority - Land & Maritime (FTA). The move supports AASTS’ vision to strengthen the Arab maritime sector by training national cadres and providing research and development services. It also supports AASTS’ strategy to reinforce the UAE’s position as a leading maritime hub globally. The meeting was attended by Dr. Ismail Abdel Ghaffar Ismail Farag, President of the Arab Academy for Science, Technology and Maritime Transport (AASTMT); Eng. Hessa Al Malek, Executive Director of Maritime Transport at FTA; Dr. Ahmed Youssef, Associate Dean of Maritime Transport and Technology College, AASTS; Dr. Aysha Al Busmait, IMO Goodwill Ambassador and Corporate Communications Director at FTA and Captain Abdullah Al Hayas, Director of Maritime Affairs Department, FTA. The two sides discussed cooperation in various areas including education and

Group photo-AASTS and FTA officials. training; conducting specialized research to develop the shipping, ports and logistics services; and developing training in maritime electronic capabilities and cybersecurity for shipping and maritime operations and ports. “AASTS plays an important role in providing the Arab World with competencies and experts in scientific research, consultancy and academic

studies,” commented Eng. Ahmed Sharif Al Khouri, Director General of FTA. “As an organization associated with the League of Arab States, we are mandated to explore cooperation prospects to develop the economic capabilities of all Arab countries. However, our relationship with the UAE is a special one,” remarked Dr. Ismail Abdel Ghaffar Ismail Farag, President, AASTMT. OCTOBER 2020 11

Serco Middle East commemorates the 11th Anniversary of Dubai Metro

Abu Dhabi International Airport introduces new ‘Fast Track Flight Connections’ initiative n Abu Dhabi International Airport has launched a new initiative for international transfer passengers, facilitating shorter connection times by increasing the speed of transiting through the airport by 27%, delivering an enhanced and seamless passenger experience. The Fast Track Flight Connections initiative enables transfer passengers travelling aboard flights originating from partner airports in Europe, the United States, and Canada to take advantage of the new, streamlined security screening processes within Abu Dhabi International Airport. Under the new procedure, the flow of passengers and their baggage to their onward destination will be expedited. This initiative was developed and implemented in collaboration with the General Civil Aviation Authority, the Department of Municipalities and Transport, the General Administration of Customs, Abu Dhabi Airports, Etihad Airways, and international airport partners. “By facilitating faster and more efficient transfers, the new procedure also further positions Abu Dhabi as a global hub, bridging the East and West,” commented Sheikh Mohammed Bin Hamad Bin Tahnoon Al Nahyan, Chairman, Abu Dhabi Airports. “This significant enhancement to the travel experience of our transfer passengers, and our extensive precautionary measures across Abu Dhabi International Airport, are a reflection of our commitment to putting our customers first and ensuring their health, safety and comfort throughout their journey through the UAE’s capital,” remarked Shareef Al Hashmi, CEO, Abu Dhabi Airports. 12 OCTOBER 2020

Wallace Weatherill - Dubai Metro and Tram, MD-Serco ME.

n The 11th anniversary of the commencement of Dubai

Metro marks a long standing partnership between the Roads and Transport Authority (RTA) and Serco Middle East, the leading operator and maintainer of the Dubai Metro since its launch in 2009. Serco Middle East operates and maintains the Dubai Metro, and was first awarded the contract in 2009. Since then and over the last 11 years, Serco has delivered high quality outcomes for Dubai Metro that includes the launch of the Red Line Extension, a new 15km extension line linking communities in Discovery Gardens, Dubai Investment Park and the Expo 2020 site and spanning across seven stations. The partnership demonstrates Serco’s capacity to produce real efficiencies and productivity benefits for their customers, the public and communities Serco serves by delivering 99.9% punctuality and train service availability, the company stated in a press note. “At Serco Middle East we have underlined our commitment to the RTA by not only continuing to deliver operations and maintenance to the existing Dubai Metro Red and Green lines, but also to mirror the same level of world class service to the new Route 2020,” commented Wallace Weatherill, Dubai Metro and Tram Managing Director, Serco. “Dubai Metro is the backbone of the Emirate’s transport infrastructure making it a key component of the emirate and a significant milestone in UAE’s vision for the future,” remarked Abdulmohsin Ibrahim Younes, CEO, Rail Agency, RTA.

Chalhoub Group ushers digital transformation, empowers e-commerce platform amid pandemic n Leading luxury retailer Chalhoub Group announced today a digital transformation agreement with Salesforce, the global leader in Customer Relationship Management (CRM), to enhance customer e-commerce experiences amid the Covid-19 coronavirus. The Gulf Cooperation Council (GCC) and Egypt’s beauty and personal care e-commerce market is valued at US$ 1bn, according to Bain & Company. In anticipation of its growth, and to meet customers’ shift to e-commerce amid the pandemic, Chalhoub Group has accelerated its digital transformation to meet customer needs and to deliver on e-commerce expectations. Working with the channel partners Chalhoub Group continued its digital transformation by adopting the Salesforce Commerce Cloud, Marketing Cloud, and

Service Cloud to drive e-commerce, and personalize customer journeys across chat, email, social media, and WhatsApp. “As the Middle East’s e-commerce market reaches record highs, digital transformation is a necessity for retailers to rapidly adapt to the Covid-19 era,” remarked Kristof Lukovich, Head of Digital, Beauty Vertical, Chalhoub Group. Chalhoub Group is also leveraging AI from Salesforce’s with Einstein, builtin intelligent solutions to personalize customer journeys, offer product recommendations, and implement Einstein Bots to ease the load on customer service agents by automating routine requests, which enables agents to handle more complex issues. “Recent events have accelerated the shift to e-commerce within the Middle East’s fast-paced retail sector,” commented Thierry Nicault, Regional Vice-President,

Kristof Lukovich, Head of Digital, Beauty Vertical, Chalhoub Group. Middle East, Africa and Central Europe, Chalhoub Group has more than 125 companies, partners, and affiliates, and 600 retail stores across 14 countries.

Gulf Navigation Holding starts distinctive phase with a new Board of Directors n In its recent meeting, the General Assembly of Gulf Navigation

Holding, a maritime and shipping company listed in the Dubai Financial Market, has approved a new Board of Directors chaired by Sheikh Theyab Bin Tahnoon Bin Mohammad Al Nahyan. The General Assembly also appointed Eng. Abdulla Atatreh as Vice Chairman and Mohamed Alhammadi, Dr. Abdulaziz Alongary, and Waleed Mohammad have been approved as new members of the board in addition to the current members Dr. Abdul Rahman Mahmoud Al Afifi and Ahmad Kilani. “The maritime economy is a key pillar for preparing the economy of the UAE for its golden jubilee. There’s still strong demand for shipping services around the world and we are very optimistic about the promising opportunities the future holds for Gulf Navigation,” asserted Sheikh Theyab Bin Tahnoon Bin Mohammad Al Nahyan, Chairman, Gulf Navigation Holding Group. The new board appointed Rudrik Flikweert as the Group’s Chief Financial Officer (CFO). Gulf Navigation Holding Group currently owns a fleet of 8 ships including petrochemical tankers and livestock transport vessels in addition to 4 crew boats. Gulf Navigation is one of the main companies in the local Maritime sector whose annual turnover exceeds US$ 60bn and has more than 20,000 maritime companies. Over 21,000 ships dock in the UAE ports each year, carrying around 17 million containers and hundreds of thousands of tons of petroleum derivatives, bulk cargo and raw materials.

GNH’s Gulf Fanatir.

OCTOBER 2020 13

Al-Futtaim Logistics certified as AEO by Dubai Customs n Al-Futtaim Logistics has been certified as an Authorised Economic Operator (AEO) by Dubai Customs under the UAE AEO Program. The concept of Authorized Economic Operator (AEO) is defined by the World Customs Organization SAFE Framework of Standards to secure and facilitate global trade. AEO is a modern and smart control strategy that fosters security and compliance through moving from transaction-based controls to systembased controls. Processes, procedures, systems, competencies and security measures are verified by Customs at the company level. As an AEO certified service provider, Al-Futtaim Logistics now can extend value chain to their customers in Global

Trade, especially in the local market. Freight customers will experience faster clearance due to simplified procedures and Customs prioritization. As a trusted partner of Dubai Customs, Al-Futtaim Logistics will benefit from reduced post clearance audits and priority inspections procedures, enhanced by non-intrusive inspection technology. “Despite the current market dynamics and in times of supply chain disruption, we continue to pursue opportunities that will complement our customers’ experiences. AEO certification will contribute to how we strengthen our commitments to our customers,” asserted Raman Kumar, Managing Director, Al-Futtaim Logistics.

Raman Kumar, Managing Director, Al-Futtaim Logistics.

Marafiq and partners reach financial closing of Jeddah Sewage Treatment Plant n Marafiq (Power and Water Utility

Company for Jubail and Yanbu) is the lead developer in Jeddah Airport 2 ISTP (Independent Sewage Treatment Plant) and has a wealth of experience as an integrated utility service provider to major industrial cities in Saudi Arabia. The Jeddah Airport 2 ISTP was awarded under the Build, Own, Operate and Transfer (BOOT) concession model, and will be developed under a 25-year Public-Private Partnership (PPP) model. Marafiq has partnered with Veolia, Amwal AlKhaleejiah, who will support the development, financing, engineering, procurement, construction, implementation, ownership, operation, maintenance, and transfer of the Jeddah Airport 2 ISTP (Independent Sewage Treatment Plant). The funding for the estimated US$ 280M total project costs have been sourced from a combination of senior project finance loans by the National Commercial Bank (NCB) and equity contributions from shareholders. “Marafiq is proud that it has shifted from a conventional utility service provider to a lead developer. We are grateful to our partners Veolia and Amwal AlKhaleejiah, who have assisted us in reaching this stage 14 OCTOBER 2020

L to R Abdulrahman A. AlFadley - Minister of Environment, Water and Agriculture, Mohammad Mowkley, Dep Minister Water Services, Abdullah Al- Buainain, CEO Marafiq and Sebastien Chauvin, CEO, Veolia ME. in the project,’’ commented Abdullah K. AlBuainain, President & CEO, Marafiq. “The successful financial closing of Jeddah Airport 2 ISTP, shows the robustness and the efficiency of PrivatePublic-Partnerships, and we expect to see more of these type of projects as part of the Vision 2030,” commented Khaled Z. Al-Qureshi, CEO, SWPC. “We are proud to have been able to achieve financial closure, particularly that

the Bank financing for the project was raised locally in its entirety,” noted Ammar A. AlKhudairy, Chairman, Amwal. “The Jeddah Airport 2 ISTP is an ambitious and exemplary Public-Private partnership. All the principles of the Circular economy will be put in place, allowing the reduction of sludge and enhancing the beneficial reuse of recycled water for irrigation or industrial use,” assured Sébastien Chauvin, CEO, Veolia ME.

One Za’abeel completes record-breaking cantilever lift in a major engineering feat n Leading Japanese architectural, engineering, and urban design firm Nikken Sekkei recently confirmed that the world’s longest cantilevered building, The Link, which connects the towers of the iconic One Za’abeel mixed-use development in Dubai, UAE, has been lifted into place. The company, who began work on the project in 2014 as lead consultancy, was responsible for the concept and design of the two-tower structure and the unique cantilever design that connects both towers. “Designing the world’s longest-occupied cantilevered building was an ambitious challenge in itself. However, designing an offset cantilever between two towers, 100 metres above a busy highway, was a challenge of ingenuity and imagination none of us had ever faced before,” commented Dr. Fadi Jabri, Nikken’s Executive Officer, Principal for MENA, CIS, India, Australia, and Europe regions. The skyscraper building is a mixed-use two-tower project overlooking a total built-up area of over 470,000 square metres. Located at the heart of the city and at the gate of the Dubai Financial Center, the development incorporates luxury residences, a One & Only ultra-luxury hotel and serviced apartments, and premium, Grade A office spaces, a retail podium, and a panoramic sky concourse. The Link, which will float an awe-inspiring 100 metres above

One-Zaabeel cantilever lift operation in progress. the ground, is a panoramic sky concourse that connects the two towers of One Za’abeel. The timeless structure will house a choice of attractions, including Michelin starred restaurants, observation decks, and an infinity pool. With a 30-year pedigree in the Middle East, Nikken Sekkei has designed and collaborated on more than 65 projects across the region’s cultural, commercial, and hospitality sectors.

Jebel Ali Port welcomes mega container ship HMM GDANSK on its maiden visit n Global trade enabler DP World’s flagship Jebel Ali Port welcomed HMM GDANSK, one of the world’s largest container vessels, which is now on the return leg of her maiden international voyage between the Far East and Europe. Jebel Ali is the only port in the Arabian Gulf region connected to the arterial FE3 (Far East 3) loop with the ability to accommodate mega vessels. HMM GDANSK is 400m long and has a capacity of 24,000 TEUs (twenty-foot equivalent container units). The vessel and its crew led by Captain Hyungik Cho were welcomed by DP World UAE Region, and other officials from Jebel Ali Port. The landmark mega carrier arrived from DP World’s London Gateway at the port before sailing to Singapore, her next call in a journey that began in Busan, South Korea with calls at Yantian, Hong Kong, Hamburg, Rotterdam and Antwerp. “The port call by one of the largest container carriers is a testimonial to Jebel Ali’s true strength and capacity.

DP World’s flagship Jebel Ali Port welcomed one of the world’ We employ today’s frontline technologies like robotics, automation, Internet of Things, Big Data, virtual reality and cybersecurity to build and sustain our efficiencies,” explained Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region. As an integrated

multi-modal hub offering sea, air and land connectivity, complemented by extensive logistics facilities, Jebel Ali Port plays a vital role in the UAE economy. It is a premier gateway for over 80 weekly shipping services, connecting more than 150 ports worldwide.

OCTOBER 2020 15

AP Moller-Maersk announces policy changes in Ocean & Logistics n AP Moller-Maersk introduces

Africa launches medical supplies platform.

Novartis and Africa Medical Supplies Platform cooperate for supplies of Covid-19 related medicines n The collaboration between Novartis and Africa Medical Supplies Platform (AMSP) aims to help alleviate supply and logistical constraints in the African Union member states. It comprises the portfolio of 15 generic and over-thecounter (OTC) medicines from Sandoz division which will be sold at zero-profit to governments through Africa Medical Supplies Platform (AMSP) to 55 African and 15 Caricom (Caribbean Community) eligible countries Novartis and the African Union (AU) through the Africa Medical Supplies Platform (AMSP) have announced a new collaboration to facilitate the supply of medicines from the Novartis Pandemic Response Portfolio to the AU member states and Caricom countries. The AMSP portal is an online marketplace developed under the leadership of the AU Special Envoy, Strive Masiyiwa and powered by Janngo, on behalf of Africa Centres for Disease Control and Prevention (Africa CDC). “Our collaboration with AMSP is a continuation of our efforts at Novartis to combat Covid-19 across the world,” remarked Vas Narasimhan, CEO, Novartis. “Following the successful listing of test kits, personal protective equipment, and clinical management devices, the African Union Chairperson has expanded our mandate to include groundbreaking medicines to treat Covid-19 patients in Africa,” said African Union Special Envoy, Strive Masiyiwa. “As a continental body, we are working with several partners to ensure smooth and predictable access to essential medical supplies,” commented Dr John Nkengasong, Director of Africa CDC. 16 OCTOBER 2020

strategic changes that will further improve customer experience and end-to-end service delivery. As part of this, the Safmarine brand will be integrated into Maersk to enhance customers’ access to the global integrated offering, the integrated container logistics company stated in a press communique. In addition, the Damco brand’s Air and LCL (Less than Container Load) offering will be combined with Maersk’s logistics and services products to complement its end-to-end offering. Also, a more simplified and customercentric global Ocean & Logistics organization is being introduced. These changes represent a major step towards becoming an integrated container transport and logistics company, connecting and simplifying customers’ supply chains. “The evolving supply chain needs are increasing the demand for multiple modes of transport and to meet these needs, we’re bringing our company’s expertise and capabilities even closer together. Taking these

steps are key to accelerating our transformation,” explained Vincent Clerc, CEO, Ocean & Logistics, AP Moller-Maersk. Since focusing purely on freight forwarding in 2018, Damco has demonstrated significant value to customers in the Air and Ocean LCL space. During this time, it has become apparent through close customer engagements that the value proposition of Maersk can be greatly enhanced with the expansion of multiple modes of transport. The integration of Air and LCL into Maersk will help meet these needs and give businesses access to a simplified, connected and agile experience under the Maersk brand, as well as to its scale. Maersk uses its own assets to offer unique value propositions; hence it will not pursue the Ocean FCL Multicarrier product (NVOCC) as a general offering. Due to the changes, the Safmarine and Damco brands will no longer be marketed by the end of 2020 the press statement concluded.

Maersk containers being stacked at a port.

Abu Dhabi Terminals obtains In-Country Value Certification n Abu Dhabi Terminals (ADT), the manager and operator of the region’s first technologically advanced semi-automated terminal at Khalifa Port, has been InCountry Value certified. In-Country Value is defined as the total spend retained in-country that can benefit business development, contribute to human capability development, and stimulate productivity in the UAE economy. The In-Country Value Program focuses on national economic contribution through three major areas: strategic considerations, Emiratisation and GDP diversification. Initiated by ADNOC in 2018, the program has expanded to include multiple sectors and has also been adopted by Abu Dhabi Ports, Aldar Properties, and Abu Dhabi Department of Economic Development, with the four sector leaders now forming the majority of government tenders issued in the Emirate of Abu Dhabi. “Abu Dhabi Terminals’ ranking is testament to the continued efforts to support the visionary leadership of Abu Dhabi and the UAE in their ongoing quest

Abu Dhabi Terminals file image. for economic growth, diversification, and prosperity,” asserted Ahmed Al Mutawa, CEO, Abu Dhabi Terminals. “This certification offers great opportunities, not only for ADT, but

our partners and stakeholders alike and represents unique prospects that can be offered to our customers via competitive integrated logistics solutions,” he concluded.

Solutions for a healthy world Tranzone operates a state-of-the-art 3PL warehouse in Jebel Ali Free Zone. We have partnerships with the leading pharmaceutical, medical device and animal health companies around the world.

Healthcare Logistic Services: Air Freight Sea Freight Land Transportation Value Added Services Warehousing & Distribution Return logistics Documentation Tranzone FZCO (Member of Banaja Holdings)

Jebel Ali Free Zone (South) Plot No: S20129 P.O Box : 262955, Dubai, United Arab Emirates, Tel : +971 4 811 0000

Web: www.tranzone.ae OCTOBER 2020 17

Wizz Air Abu Dhabi celebrates arrival of the first new aircraft

Wizz Air Abu Dhabi aircraft arrival at AUH.

n Wizz Air Abu Dhabi, the new national airline of the United Arab Emirates celebrates the arrival of its first advanced new Airbus A321neo aircraft to Abu Dhabi International Airport. Wizz Air Abu Dhabi, the joint-venture established between ADQ, one of the region’s largest holding companies, and Wizz Air Holdings, has recently received national carrier status from the UAE government subject to meeting regulatory standards prior to starting operations. The A321neo aircraft has pioneered and incorporated the latest technologies, including its new generation engines and the industry’s reference cabin design, delivering 20 percent fuel cost savings alone. More ultra-modern Airbus A321neo aircraft, all with the unique

Abu Dhabi livery will join the Wizz Air Abu Dhabi fleet in the first six months of operations, creating ever more low fare travel opportunities, and connecting the UAE capital with several other cities around Europe and beyond. “Wizz Air Abu Dhabi’s new state-of-the-art Airbus A321neo aircraft, as well as our enhanced protective measures, will ensure the best possible sanitary conditions for travellers,” commented Kees Van Schaick, Managing Director, Wizz Air Abu Dhabi. “The establishment of Wizz Air Abu Dhabi and its commencement of operations is a milestone in the growth and development of the LCC market in the Emirate of Abu Dhabi,” noted Mohammed Husain Ahmed, General Manager, Abu Dhabi International Airport.

ION and Sharjah RTA announce sustainable ride-hailing service n Sharjah Roads & Transport Authority

(Sharjah RTA) has partnered with the UAE-based sustainable mobility solutions company ION to launch a new on-demand ride-hailing service in Sharjah, with a fleet of electric vehicles (EVs) including Tesla Model S and Model 3 by the end of 2020. ION’s selection for the partnership was due to its sustainable EV fleet, smart operations and customer-oriented backend support. The new EV ride-hailing service will be available through a mobile application, which will offer passengers estimated time of arrival, view the number of available vehicles in the vicinity and even the positive carbon impact by travelling via ION’s service. “Sharjah RTA relies on clean energy whenever possible. This will only happen by adopting and embracing sustainable 18 OCTOBER 2020

ION Sharjah RTA deal signing ceremony. innovations in the field of transportation, which will contribute to achieving our plan towards an environmentally and sustainable transfer,” remarked Eng. Yousef Saleh Al Suwaiji, Chairman, Sharjah Roads and Transport Authority (SRTA).

“Through this partnership with Sharjah RTA, we are combining our expertise with a wider mobility network to help raise a more sustainable quality of life for residents in Sharjah,” commented Khaled Al Huraimel, Group CEO, Bee’ah and Chairman, ION.

The intelligent vehicle personal temperature monitor system

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EHRHARDT PARTNER GROUP

Pioneering optimum, holistic Supply Chain Execution Systems Focus on Supply Chain order fulfillments, e-commerce and automation With deep roots in the region spanning almost a decade and half and a laser-like focus on developing and providing Software Solutions for the Supply Chain Execution, Ehrhardt Partner Group (EPG) has built its solid reputation as a leading and dependable provider of comprehensive solutions with the capability to deliver customized services.

20 OCTOBER 2020

stablished 1987, Ehrhardt Partner Group (EPG), headquartered in Germany, is in the frontlines of developing its proprietary software solutions for the logistics sector. Since its inception, the privately-owned company has expanded exponentially and globally and is today a force to reckon with in all matter related to Warehouse Management Systems (WMS) and

EHRHARDT PARTNER GROUP

Dr. Makrem Kadachi is the General Manager of Ehrhardt Partner Middle East & APAC since 2015. His group is the worldwide leader in providing warehouse solutions. Before moving to Dubai, Dr. Kadachi had the opportunity to gain international experience at Jungheinrich and Kardex. He holds a Ph.D. in Logistics Science and a Masterâ&#x20AC;&#x2122;s Degree in Mechanical Engineering from the Technical University of Munich, Germany. He has more than 20 years of experience within the supply chain. In his present professional role, he is responsible for providing supply chain execution software, responsible for MEA and Asia-Pacific region.

Ehrhardt+Partner Solutions was the first company to be set up in Dubai Logistics City (Dubai South) in 2006.

Dr. Makrem Kadachi, General Manager of Ehrhardt & Partner Middle East & APAC OCTOBER 2020 21

EHRHARDT PARTNER GROUP

Team EPG offers an efficient and ergonomic solution in Lydia® Voice for voice-guided process

Pick-By-Voice solutions. With offices and representations in 17 locations, around 700 staff, overseeing more than 1,500 warehouse projects, and in excess of 100,000 users of its in-house and ingeniously-developed solutions and services around the world, the company is a name to reckon with in the supply chain digital domain. EPG LFS is a high-performance fully configurable software control and monitor of all processes and all available resources in the warehouse. The company prides in its trademark LFS software offering that can be tailored to their clients ‘existing and future processes. Furthermore, it is easy to integrate with 22 OCTOBER 2020

most leading enterprise resource planning systems (ERP systems) and all major technology platforms. This ensures seamless assimilation with current and future infrastructure, regardless of whether it is in the cloud or on premise. Ehrhardt Partner Solutions (EPS) was the first company to be set up in Dubai Logistics City (Dubai South) in 2006.The goal in setting up full-fledged operations and a regional presence in the UAE in its owned premises was to offer the brands trademark, advanced solutions and to integrate the latest technologies in smarter connected warehouse logistics for local and regional companies. Global Supply Chain journeyed to Dubai

World Central to conduct an exclusive, on-site interview with Dr. Makrem Kadachi, General Manager, Ehrhardt Partner Solutions, Middle East Africa (MEA) & Asia-Pacific (APAC), at the company’s sprawling complex housing its regional office and a Logistics Solutions Center (LSC). “Our core business is developing the finest, best-practices Warehouse Management Systems for our corporates, developing effective IT and digital solutions for the Supply chain. Our USP and primary asset is our expertise in this core domain,” affirmed Dr. Kadachi. “We understand warehouse operations, we offer optimum technology solutions that best fit the demands of our clients

Louis G. Nyalifa

EHRHARDT PARTNER GROUP

Sanil Girija

from automation, optimizing inventory management, managing resources. “The solutions we offer are to meet the individual needs of our customers and therefore tailored accordingly although our standard indigenously-developed solutions cover almost all client requirements. To an extent we are also industry-agnostic and our solutions and services cover a wide spectrum of industries from FMCG, retail, logistics, pharmaceutical and many other sectors. ” Our especially comprehensive configurable solutions are developed to empower customers by giving them full control to set up the software as per their needs. We are fully mindful that in any

EPG is global leader in smart logistics and computerized warehousing, serving the most prestigious clients all over the world including DHL, Hellmann, Lulu, Al Maya, Union Coop, Jumbo, aswaaq, HALA and others. EPG provides integrated supply chain execution software including Warehouse Management System (WMS), Warehouse Control System (WCS) and Transportation Management Software (TMS) among a slew of other related services.

business immediacy is key; order fulfillment should be treated urgently and timely. We offer both integral and supplementary solutions harnessing the best new and emerging technologies on offer from IoT to Blockchain,” continued Dr. Kadachi. The following is the transcript of the interview with Dr. Makrem Kadachi: Global Supply Chain: Briefly trace your company’s origins in the Middle East and bring us to current on how you are now positioned in the region? Dr. Makrem Kadachi (DMK): The Ehrhardt Partner Group (EPG) is today the leading global logistics expert and warehouse-related solutions providing company. The foundation of the success is OCTOBER 2020 23

EHRHARDT PARTNER GROUP

EPG SES Warehouse of tomorrow

EPG Service Offerings: Warehouse Management System (LFS) Warehouse Control System (WCS) Workforce Management (WFM) Transportation Management Solutions (TMS) International Shipping System (ISS) Contract and Billing (CnB) Cloud and Hosting Solutions Lydia® Voice Solutions (Pick by Voice) Warehouse hardware and IT Infrastructure Warehouse design and planning Consulting Suite: Online Optimization Platform Logistics Trainings and Seminars Others

24 OCTOBER 2020

the warehouse management system EPG, which has more than 100,000 users today. Over the years, the software has developed into a comprehensive supply chain execution suite and allows smart control of all manual and automated logistics processes in the warehouse (LFS and WCS) and on the road (TMS) – including workforce management and employee deployment planning (WFM) and Contract & Billing (CnB). In addition to that, EPG offers an efficient and ergonomic solution in Lydia® Voice for voice-guided processes. Lydia® Voice works based on neural networks and AI components and is therefore technologically pioneering. In addition to these core products, private cloud solutions, logistics consultation supplement the overall offering of solutions from the internationally operating group of companies.

In addition, EPG has its own training centers, the Logistics Solution Center (LSC), at the headquarters in Germany as well as in Dubai for the practical advanced training and continuing education of employees and logistics experts. Over 1,500 corporate customers from all industries trust the expertise, the cross-sector offering and the know-how of EPG. We are present in Dubai since 2006 and subsequently in 2010 in Dubai South we acquired our own facility including a Demo Centre. In the Middle East, EPG is one of the most reputed provider of WMS, known for highly configurable solutions, and as well having the capacity to delivery any customer-specific customization. EPG offers solution not only for big companies, but as well for small and midsize SMEs. We do have the right solutions to

EHRHARDT PARTNER GROUP

support our customer grow! GSC: What are your core activities of Erhardt + Partner Solutions DWC (EPS) and what industry verticals do you cover? DMK: We provide all kind of software and services needed for the supply chain to perform and to be sustainable and resilient. We serve all industrial verticals, from FMCG, manufacturing, 3PL and pharmaceutical just to name a handful in both B2B and B2C. GSC: What sets EPS apart? What are your innate brand strengths and how are you leveraging these capabilities to increase your market share in the region?

The foundation of the success is the warehouse management system EPG LFS, which has more than 100,000 users today for their logistics management. DMK: Our motto is â&#x20AC;&#x153;We love supply chainâ&#x20AC;&#x2122;. We are focused in this business for over 30 years. We are present here in the region, with our own teams and our own solutions. This ensures the highest quality of solutions and services. This guarantees the sustainability of our company. Customers trust us, our solutions, our services and advice. GSC: How significant is the Middle East for EPS? DMK: Both the Middle East Africa and APAC regions offer much potential and are high growth areas for our company. The UAE, Saudi Arabia and Qatar are important countries with promise of potential; also Dubai is a hub for the vast hinterland including the Indian subcontinent and East Africa comprising Kenya, Tanzania, Sudan and North Africa notably Egypt where we foresee good demand. GSC: How wide is your current network and which are among the top three performing countries in the region? DMK: UAE and Saudi are two of the most important countries in the GCC and the region. There are many positives signs coming from many countries across Africa

as they develop their supply chains and warehousing technologies. India is also a force to reckon with and is considered as one of the biggest markets for the supply chain industry given its vast size and population. GSC: How has the onset of the pandemic impacted your business and operations? DMK: As per today, we have even started executing project implementation online, with limited on-site presences. This new approach would not be possible before the actual pandemic. In the past six months, video conferencing has become the norm. There is no doubt that business travel around the world will decrease. This will indeed change our lifestyle and the manner we do business. I am convinced the world

will get closer and cohesive. Covid-19 has not altered the demand for primary goods and essentials. There clearly has been a shift towards e-commerce and online shopping. Therefore, what we now need is better supply chain, warehousing, order-fulfillment, transport and delivery mechanisms. I foresee a higher demand on our services and we are prepared and able to meet current and future contingencies. GSC: Talk to us about EPSâ&#x20AC;&#x2122; newest innovations and technologies in the region? DMK: Since we are focused only on supply chain, our main target is to always present the latest and available futuristic solutions and technologies. OCTOBER 2020 25

EHRHARDT PARTNER GROUP

We are launching a redesign for our dock management and a brand new dashboard called Time Square, online, configurable and including historical and predictive data. Our R&D-Team based in Germany is constantly working on our high-calibre standard solutions, to provide the market with state-of-the-art software. We are constantly updating and refining our highly-prized core technology offerings. Digitalization in the supply chain is not just a word or phrase, it is already a reality. An efficient and resilient supply chain is only attainable by using the best software fully integrated to ensure a perfect and seamless data flow. EPG provides high 26 OCTOBER 2020

modern solutions allowing us to seamlessly integrate with any other software including ERP, last mile delivery, point of sales, and other modules. We have recently launched a unique solution, Contract & Billing (CnB), an integrated contract management, service recording and billing system. This is an audit-proof and certified software. With CnB, all logistic services will be billed. No services will be kept un-invoiced, nothing is lost anymore thus ensuring no loss of revenues.

In the next few weeks we are launching a redesign for our dock management and a brand new dashboard called TimeSquare, online, configurable and including historical and predictive data. Watch this space as we prepare to make this official announcement shortly! GSC: How did the region fare in 2019 and what is your outlook for 2020? DMK: 2019 was a successful year for us. 2020 started very well, we are hopeful and optimistic we will close strong. However, especially during this period, the emphasis is on supply chain becoming the proven key for success. The demand for software solutions is increasing on daily basis as more and more companies come to grips with the notion that effective supply chains and technology can drive profits and success.

EHRHARDT PARTNER GROUP

GSC: How is EPS adapting to new market realities given that Covid-19 is still gripping the region? DMK: As mentioned earlier, the pandemic is putting the supply chain in the front seat. It is the key to success. For us there is no limit for growth as the appetite for technology is progressively growing and the need for streamlined systems is becoming the norm. GSC: Do you currently have or envisage production facilities in the region? DMK: Yes we have had it for several years in Dubai. We are a one-stop complex offering exhaustive and complete solutions in warehouse management and operations. GSC: What are you expansion plans for the region? DMK: We anticipate growth in the Far

East, Australia, Japan and South Africa. These countries are exhibiting much potential and promise. GSC: What are the opportunities and challenges for EPS going forward? DMK: There is a growing demand for sophisticated and supply chain management systems such as ours and we are clearly in growth mode. The current environment is only accelerating the process. Our approach is to listen to our customers and innovate constantly, updating with the latest available unrivalled technologies and then to customize packages for individual clients. GSC: What business potential do you foresee for the region and how optimistic are you going forward? DMK: As a leading and key provider

of supply chain execution solutions, we are more than optimistic and confident. I predict vast growth prospects for our company going forward. GSC: What is your wider vision for EPS for the short and long term futures? DMK: My objective is to make EPS the dependable, go-to provider of solutions in the warehousing domain. This after all is our core business. To this end we have the talent and competence to match our customersâ&#x20AC;&#x2122; needs and expectations. We are doing everything to retain our efficient workforce, to motivate, train and constantly develop our employees so we can offer unmatched digital solutions, host technology services and offer consultancy for our customers. This is and will always be our goal for the future. n OCTOBER 2020 27

SANAD-MUBADALA INVESTMENT COMPANY

Iva prime@pexels

New Sanad and Etihad Airways deal expands US$ 900mn partnership UAE national carrier confirms new SLB agreement for XWB and GEnx spare engines

anad, a wholly owned subsidiary of Mubadala Investment Company, and Etihad Airways, have closed a new spare engine deal which further cements Abu Dhabi’s position as a selfsustaining international aviation sector hub. The announcement of the new deal came during the Global Aerospace Summit in Abu Dhabi, where industry leaders convened to discuss the impact of the pandemic on the aerospace, defence and space industries. The new deal, which expands the US$ 900mn-plus partnership between Sanad and Etihad Airways for additional spare engines and rotable components, includes a sale-and-leaseback (SLB) agreement for an additional GEnx engine and a Rolls Royce Trent XWB engine, with a second XWB spare option. Sanad will also provide access to increased B787 rotable components and extended terms for existing GEnx spare engine agreements. “We remain fully committed to Etihad Airways, and this agreement expands and deepens our portfolio with more entryinto-service asset types including our ninth GEnx, and our first Rolls Royce XWB spare engine,” commented Troy Lambeth, Group CEO, Sanad. “Sanad continues to be a trusted and reliable partner for Etihad Airways and its continued support is well aligned with our long-term plans and fleet strategy,” remarked Adam Boukadida, CFO, Etihad Aviation Group. n 28 OCTOBER 2020

Mansoor Janahi, Deputy Group CEO, Sanad.

Troy Lambeth, Group CEO, Sanad.

Sanad signs AED 1bn agreement with Pratt & Whitney

The new agreement reaffirms the confidence in the aerospace sector in Abu Dhabi Sanad recently announced a new AED 1bn (US$ 273mn) deal with Pratt & Whitney and International Aero Engines (IAE). The new agreement will see Sanad Aerotech providing IAE with expanded MRO services for its V2500 engines, which powers the Airbus A320 family of aircraft. This agreement expands the cooperation between Sanad and IAE in the field of maintenance, repair and overhaul (MRO) of aircraft engines. Under the agreement IAE, the manufacturer of V2500 engines, will offload V2500 engines for MRO services to Sanad’s advanced facility in Abu Dhabi Airports Free Zone. “This agreement is another testament on Abu Dhabi’s established position as a reliable global centre for the aerospace industry and its state-of-the-art engineering services,” affirmed Mansoor Janahi, Deputy Group CEO, Sanad. “The relationship between Pratt & Whitney, IAE and Sanad is strong and we look forward to continuing to strengthen it for years to come,” remarked Dave Emmerling, Vice President, Commercial Aftermarket, Pratt & Whitney. Sanad is a leading provider of aerospace engineering and leasing solutions for customers around the world, providing its services to more than 300 V2500 engines since 2012 with year-on-year growth of over 19 per cent. Sanad is a trusted partner of original engine manufacturers (OEMs) such as RollsRoyce, GE Aviation, and Pratt & Whitney. These relationships have enabled it to provide competitive MRO services for various aircraft engines, a press statement concluded.

IN CONVERSATION

We are looking at an aggressive expansion plan across emerging markets Brian Cartwright, Client Partner, Supply Chain and Logistics for Pedersen & Partners, and regular contributor to Global Supply Chain, meets exclusively with Hussein Wehbe, CEO, Fetchr, to discuss a wide spectrum of issues from the current state of his companyâ&#x20AC;&#x2122;s business, priorities, his vision for the future and how technology is altering and reforming the industry landscape.

30 OCTOBER 2020

IN CONVERSATION

Brian Cartwright (BC): What did the existing business look like when you took it over? Hussein Wehbe (HW): When I joined Fetchr there was a lot that was already done and a lot that was still happening. The transformation team was in place and introducing a lot of positive changes to enhance efficiency, performance and productivity within the organization such as closing non-performing country offices, reducing costs by diversifying revenues and streamlining call centre operations. We brought onboard new leaders who were experts in the field of logistics and transportation and along with the existing

Hussein Wehbe CEO, Fetchr

Brian Cartwright Client Partner, Supply Chain and Logistics for Pedersen & Partners Dubai-based Brian Cartwright specializes in Supply Chain & Logistics-related functions for CXO, VP, and Director-level in global, regional, and country level roles, working with service providers and end-user companies across the globe including large listed corporations, family-owned conglomerates, SMEs and start-ups. Cartwright has over fifteen years of experience in Executive Search and Recruitment. During his career he has owned and managed successful businesses in the Middle East and Europe.

Hussein Wehbe is a public and private sector leader with more than 18 years of experience in the service industry. He is currently CEO, Fetchr, since joining the company in April 2020. Prior to joining Fetchr his experience includes UPS where he served as the Managing Director for the Middle East. Earlier, Wehbe served as an Advisor to the Federal Government at the UAEâ&#x20AC;&#x2122;s Prime Ministerâ&#x20AC;&#x2122;s Office and before that led Aramex International in the Gulf region, where he spent almost 17 years of his career. Wehbe is a passionate public speaker and a very active member of the entrepreneurship community. He has completed the Exponential Leadership Programme from Singularity University, US, and Advanced Strategic Management programe from IMD, Switzerland.

team, we worked on an improved customer experience, redesigning all the touch points to ensure a seamless journey. It is also very important to mention that all of these improvements and developments would not have been possible without the dedication, commitment, and capabilities of the existing Fetchr team of whom we are very proud to have on board on this exciting journey. BC: What was your first mission, what needed to be addressed first? HW: First and foremost, I was focused on addressing the internal culture at Fetchr. The employees had all been through times of doubt and uncertainty that had a

negative impact on their morale in general and their trust in the organization. My mission was to support and encourage the existing Fetchr team to be able reinstate their confidence in the organization. The team showed incredible resilience and commitment to work, to the extent that even during these unprecedented times with order spikes during the lockdown, they managed to keep the service level unaffected. BC: Why did you have so much faith in the Fetchr brand when given the opportunity to take the business forward as CEO? HW: I have been a close follower of the OCTOBER 2020 31

IN CONVERSATION

Fetchr story since 2012. I saw in the brand an agile and disruptive player who is coming to change the way the industry functions and operates. When the opportunity to join knocked on my door, I saw major potential not only in the company but in the people and the technologies behind this organization that gave me a clear indication about the endless possibilities that await a company like Fetchr.

incredible challenges to sustain; fortunately for us these times presented our industry with great opportunities. We at Fetchr capitalized on our tech enabled delivery solutions to be able to serve the markets where we operate smartly and in the most efficient way possible. The commitment of the team has given us an advantage over the other players which resulted in an optimized performance in the midst of the pandemic.

BC: What do you think is missing in this market when it comes to B2B and B2C deliveries? HW: Todayâ&#x20AC;&#x2122;s market is facing challenges when it comes to optimal customer experiences mainly because of the chaos that was caused by Covid-19 that has, in turn, reshuffled all the cards and affected the delivery capacities and capabilities of all the players. This naturally reflected negatively on the overall delivery service level in the region. Fetchr is coming to tackle this from all aspects and positioning itself as the efficient customer centric tech enabled delivery partner of choice for the e-commerce and B2C players in Saudi Arabia and UAE to start with.

BC: What is the new Fetchr strategy going forward? What are the short and long-term plans in the region? HW: Our short-term plans will focus on bringing back the confidence and trust in our brand and services in the markets, while at the same time accelerating our activities in solving the pressing challenges that are being faced today by ecommerce players and B2C operators.

BC: How has Covid-19 impacted the ecommerce market in general and Fetchr in particular? HW: As you know, we are currently going through extraordinary times when most industries are facing

32 OCTOBER 2020

With our AI Whatâ&#x20AC;&#x2122;s App, Bot, etc we managed to reduce, by more than 40%, the need to contact customers personally to schedule deliveries.

On the other hand, for the long term we are looking at an aggressive expansion plan across emerging markets and introducing more international services that will complement our existing services and solutions in this region allowing us to start penetrating new markets. BC: What are the new technologies and innovations the company has adopted or integrated to enhance the customer experience? HW: We cannot ignore the importance of Artificial Intelligence and Machine Learning in improving our efficiency and optimizing our operations that allowed us to reach adequate customer experience levels. Through utilizing our AI WhatsApp Bot we managed to reduce, by more than 40%, the need to contact customers personally to schedule deliveries. We have a lot of exciting technologies in the pipeline especially when it comes to predictive technologies that bring efficiency to the end to end delivery process reducing the cost of return and undelivered shipments. Our predictive technologies will help us learn more and understand our huge and diverse customer base in markets where we operate and future markets as well, reflecting positively on the overall ecommerce process and experience in the region. n

SHIPWAVES ONLINE

Bridging the gap using customized digital integration solutions Sajid Mohammed, CTO, Shipwaves Online, makes the case for coordination and seamless integration of tailored technologies in an integrated supply chain

magine trying to win a game of football without coordination, communication, and strategy among the players; will winning be possible? Quite unlikely! A supply chain is no different than a game of football with various players working towards a common goal of improving response time, reducing Turn Around Time (TAT), costs, waste, and other parameters. When the same supply chain is transformed using an integrated approach, tangible and visible benefits can be observed. An integrated supply chain works 34 OCTOBER 2020

together as a complete system while its individual functions are performed. Just like a game of football, the success of a supply chain therefore largely depends on each of these functions or players.

The need for integrating technologies in an Integrated Supply Chain Most organizations have several applications catering to various functions or geographic locations which provide information vital in helping the supply

chain run effortlessly. All these applications may be specialized and irreplaceable in their own domain but may not provide endto-end visibility. For example, ERP is an integrated business management system for all the basic operational processes related to cash flow, order processing, capacity management, accounting, and other critical functions. Though they are adequate to manage core business processes, they may lack complete functionalities to manage end to end supply chain operations.

Pixabay@pexels

SHIPWAVES ONLINE

The organization may use a separate Order Management System (OMS) and a Warehouse Management System (WMS) that supports and optimizes the management of warehouse and distribution functions. There is a growing need for seamless flow of data or information from supply chain functions by bringing together the ERP, OMS, Freight Management Systems (FMS), WMS, logistics, and data visualization applications to provide a truly integrated supply chain. Such integrations would enhance interaction between crossorganizational functions. To enhance operational efficiency, businesses are aggressively focusing on implementing technologies that enable bringing data and information together in one location.

The Benefits of an Integrated Approach

(Sajid Mohammed, CTO, Shipwaves Online, comes with more than 18 years of IT and management experience. He has held a number of relevant positions in product and service companies, most notably Compaq, Microsoft, Hewlett Packard and Kinapse. He is a techie by heart and is pivotal in building the technology platform of Shipwaves. In his current role, Sajid is responsible for development of operational and technological capability and platform growth strategy.)

The major benefits of integrating various applications will translate to several benefits such as: Increased visibility across the transportation value chain: Enhanced visibility over shipment locations is important to determine their status. The location data derived can be translated to critical transportation intelligence, which unlocks deeper insights that drive business transformation and affects overall supply chain performance. Improved efficiency: Pre-negotiated rates, which are stored in rate engines, can be accessed and compared to display various price options and get insights. With functionalities like bid analysis, the financial impact of a carrier selection can be assessed, thus making the choice of a carrier simpler. Improved transportation planning: Better data quality and analytics achieved by integrating ERP and TMS equate to better planning and forecasting capabilities. Considering factors like capacity and route optimization, better shipment consolidation can be guaranteed. Enhanced overall supply chain performance: Standardization of processes resulting from an integrated supply chain improves logistics processes and functions across the organization. The integration of systems facilitates a seamless real-time flow of information that helps handle

disruptions methodically. Effective collaboration with partners: A smooth and transparent exchange of information is also facilitated with customers, vendors, and partners, thus enabling a collaborative approach towards business Cost savings: Through invoice and purchase-sales order integration, invoice audits can be automated. These audits enable significant cost savings for the companies that can be directly added to the bottom line. Although APIs (Application Programming Interface) or EDIs (Electronic Data Interchange) have led the integration of electronic information between systems for a long time, other methods of integration are now catching up. Robotic Process Automation (RPA) is now garnering substantial attention with its advanced capabilities. RPA facilitates a nonintrusive kind of integration that leverages existing infrastructure without disrupting underlying systems. This is also preferred where the organizations look for fast and cost-effective methods of integration. Some of the new age Digital Supply Chain SaaS companies like Shipwaves are attempting to bridge the gap using custom integration solutions without replacing any legacy IT applications. A good solution provides multimodal visibility of shipments moving across the supply chain i.e. from the factory to the destination warehouse through various transportation modes. It aims to provide a seamless flow of information by orchestrating various processes from preshipment to in-transit to post-shipment activities. Carefully defining specific situational goals will help with effective vetting of the systems. Evolving technologies such as Machine Learning and Artificial Intelligence will require such integrated systems that communicate with them. An integrated system must match with business needs, therefore carefully listing the business needs will go a long way in identifying the integrations that will help a particular business. It demands a paradigm shift in conventional business processes and reimagining how technology can play a major role to derive maximum benefits. Integrated supply chains are the next step to guaranteeing more efficiency, versatility, and agility. n OCTOBER 2020 35

COUNTRY REPORT – SAUDI ARABIA

Saudi Arabia’s logistics sector set for major takeoff and the long haul ahead Thanks to massive infusion of capital and investment in roads, sea ports and airports infrastructure, Kingdom poised for the great leap ahead Growth Trend Analysis by Trade – SAUDI ARABIA Sharp decline observed in both exports and imports in H1 2020.

Exports ( Billion Riyals)

COVID-19 Impact on Trade - Exports, Saudi Arabia, H1 2020 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

Significant contraction in oil and non-oil exports, Overall exports contracted by 40 % compared to H2 2019

Oil Exports

Non-Oil Exports

Imports (Billion Riyals)

COVID-19 Impact on Trade - Imports, Saudi Arabia, H1 2020 60 50 40 30 20

Overall imports contracted by 27 % compared to H2 2019

10 0

Source: General Authority for Statistics and Frost & Sullivan

36 OCTOBER 2020

COUNTRY REPORT – SAUDI ARABIA

The Saudi Arabia freight and logistics market is currently estimated to be valued at US$ 22.95bn and is estimated to grow at a CAGR of 7.35% during the forecast period, according to Mordor Intelligence.

he Saudi Arabian freight and logistics industry is a large and dynamic industry, strongly supported by state-led investments in rail, maritime, road, logistics, and airport infrastructures. Economic growth, population maturation, and rapid urbanization are the factors driving the Saudi Arabian government to invest in the massive expansion of the country’s transportation networks. In January 2019, the erstwhile Saudi Arabian Energy Minister Khalid Al-Falih announced that the country is raising US$ 427bn in private sector investments, which may include roughly US$ 36bn for logistics infrastructure. The investment may be used to develop Saudi Arabia into a gateway for the trade supply chains of Africa, Asia, and Europe. Saudi Arabia is determined to broaden the role of the private sector, as it pushes to diversify its economy. Private entities are being encouraged to collaborate with the government, as they develop the country’s transport infrastructure. Partnership is being sought for the operation of seaports, airports, and their related supply chains. Public-private partnerships (PPP) are being pursued to fund several key schemes, while a number of the country’s publicly operated transportation facilities are being prepared for full privatization. Technology is improving the security, transparency, and control over the import-export process in the country. New measures are in place for better coordination between the Customs Authorities, importers and exporters, Port & Terminal Authorities, Road Transporters, Airport Operations and other stakeholders in the wider ecosystem to streamline operations and processes.

Gopal R. heads Frost & Sullivan’s Transportation & Logistics Practice globally. He is responsible for developing the Transportation & Logistics consulting capabilities across regions as well as managing the business unit. Mr. Gopal has worked on several strategic consulting assignments for local, regional and global clients. His expertise in the regional markets has helped in developing relationships with local and regional companies, augmenting networks, capabilities and research focus.

OCTOBER 2020 37

COUNTRY REPORT â&#x20AC;&#x201C; SAUDI ARABIA

Growth Trend Analysis by Industries â&#x20AC;&#x201C; SAUDI ARABIA Covid-19 has severely impacted the manufacturing production due to lockdown measures and significant fall in demand in 2020. Containment measures, global slowdown and lower business confidence had negative impact on the industry growth in H1 2020.

COVID-19 Impact on Industries, Saudi Arabia, H1 2020 Machinery and equipment -36.3 Clothing -33.4 Furniture -31.3 Rubber and plastics products -30.9 Electrical equipment Coke and refined petroleum products Paper and paper products Basic metals Manufacturing Index Other non-metallic mineral products Food products Chemicals and chemical products Fabricated metal products Beverages -40.0

-35.0

-26.5 -25.4 -24.2 -19.7 -19.4 -18.7 -15.5 -12.7 -2.9 -0.2 -30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

Industry Growth (%)

Overall manufacturing declined by 19 %, Food and beverages performed better than overall manufacturing

Machinery and Equipment, Refined petroleum products declined by more than 25 % in H1 2020 Source: General Authority for Statistics and Frost & Sullivan

38 OCTOBER 2020

COUNTRY REPORT – SAUDI ARABIA

Brief takes and observations from Gopal R, Global Vice President, Transportation & Logistics, Frost & Sullivan, on the changing and evolving logistics landscape in the region: • There would be more alternatives sought in the medium term for the next two to three years in Supply Chain and Logistics (SC&L), to manage freight with minimal capital investments. At the same time, this will be an opportunity for investors willing to invest and offer assets for logistics services. • To capture and grow business opportunities in a post-pandemic business scenario, it is very essential to maintain a good forecast and demand planning system. Being able to foresee two-quarters ahead, with a deviation of not more than 20%, will be a key determinant for revenue growth and profitability in SC&L business in the region. • New business models and digital transformation should start with the end in mind, which is ‘The Customer’. Only then would it have the right business impact. • Logistics Service Providers (LSPs) need to understand changing client needs in Post-

Pandemic scenario, so that they can tap new trade lanes that develop because of changes in sourcing, procurement as well as trade flow. • There are likely to be more local solutions and companies offering innovation and technology support for SC&L business in the region, postpandemic. Companies are sensing region-specific niche to suitably develop new products and cloudbased solutions for maximising SC&L efficiency and reliability. • Need for Supply Chain resilience will change thinking from ‘Just-in-Time’ to ‘Just-in-Case’. Expect some fundamental shift in thinking of SCM approaches by Innovators in the region. • Regional sourcing and procurement will benefit greatly due to near shoring. It is imperative for Logistics Solution Providers to capitalise using local capability. • Creating solutions for SME businesses will greatly enhance SC&L offerings and its growth in the region.

Logistics Industry Segments Growth in H1

Freight transportation declined sharply due to COVID related operational restrictions on economic sectors which affected the efficiency levels at port terminals and border crossing points Logistics Industry: Industry Growth by Logistics Segments, Saudi Arabia, H1 2020

30 %

Domestic economic activities and global slow down have resulted in reduced demand for logistics services, most indicators bottomed out in Q2 but rebound expected start from Q3 2020 onwards

Freight Transportation

25%30 % • Contingency measures restricted port operations and port throughput • Restrictions on Transit goods affected road segment • Air cargo benefitted from travel restrictions

Storage and Warehousing

Freight Forwarding

20% -25 %

25 % - 30 %

• Food , Perishables and Pharmaceuticals supported growth • Digitalization is leading significant industry transformation in driving innovative warehouse business models.

• In line with decline in freight transportation, forwarding segment is also expected to decline due to operational restrictions and congestions

Note: The decline estimates are average industry decline rates for whole of H-1 on value terms. Volume declines have been furthermore as Q-2 saw volumes drop to almost 30% of what it normally is. Increase in prices made up for the volume loss in most cases on cargo movement and storage and that is why the value impact is moderately better than volume impact. Source: IMF, Federal Authority of Statistics and Frost & Sullivan OCTOBER 2020 39

COUNTRY REPORT – SAUDI ARABIA

COVID-19 Impact on Industries Non-oil economy is also seen to be coming under pressure, but ICT, Food and Pharmaceuticals are expected to support growth COVID-19 Impact on Industries, Saudi Arabia, 2020

• • • • • • • • •

Negative Impact

Marginal Impact

Positive Impact

STRUGGLING

SURVIVING

THRIVING

Aviation Travel and Hospitality Automotive Hotel, Restaurant, Catering Construction and Real Estate (Material, Equipment and Services) Luxury Retail Chemicals and Textile Capital Goods Manufacturing Personal Services

• • • • • • • •

Agriculture Utilities Logistics Traditional Media and Entertainment IT Services Hi-Tech Manufacturing Traditional Retail Outlets Pharmaceuticals

• Digital Media • Telecom and Internet Providers • Digital Services o Online Trading services o Video Conferencing services o Online Learning • Digital Payment Portals • Food and Consumables • E-Retail and Doorstep deliveries • Healthcare Services • Healthcare Devices and Equipment

Top 4 factors affecting demand across industries: Global economic slowdown and low export demand

Downsizing and pay cuts causing cost-cutting and postponement of purchases

Low investor and consumer confidence in the future

Changing consumer behavior: digital-ready citizens

Source: Frost & Sullivan 40 OCTOBER 2020

COUNTRY REPORT – SAUDI ARABIA

Pandemic-related Challenges in the Transport and Logistics Industry

Congestion at Ports The Dammam and Jeddah ports in Saudi Arabia are congested, and reduced staffing levels are increasing vessel turnaround time.

Supply Disruptions from China Some 15% of GCC imports are from China. Supply disruptions will affect electronics and textiles trade volume.

Equipment Shortage GCC ports are facing dry and reefer container shortages as a large amount of intra-GCC cargo is shifted from road to ocean freight.

Warehouse Capacity Redundancies Lower trade volumes are resulting in excess storage capacities in key ports and major free zones in Saudi Arabia and the UAE.

Increase in Logistics Costs Carriers in the GCC have announced peak-season and emergency imbalance surcharges on certain trade lanes resulting in increased logistics costs.

Last-Mile Delivery Challenges Issues relating to the lack of a postal system is expected to increase costs associated with parcel delivery. Source: Frost & Sullivan

COVID-19 Responses in the Transport and Logistics Industry—Respond, Recover, and Thrive SET UP QUICK RESPONSE TEAMS Employee safety should be the priority at such times. Quick response teams should be allocated to manage uncertainties related to demand and supply of logistics services.

RESPOND TO FULFILLING CAPACITY With the maritime and air freight industry experiencing capacity constraints, logistics service providers in the region should strive for transparency by assessing “what-if” scenarios with customers to understand planned volume and strategic needs. CREATE FLEXIBLE SOLUTION MODELS As a transshipment hub, congestion at ports is expected. To mitigate risks and ease the process, advanced capacity bookings should be arranged for customers on emergency shipments.

ADAPT DIGITAL AND IOT SOLUTIONS Considering order backlogs, inventory stocking surfaces as an issue. Adoption of Internet of Things (IoT) technologies in warehousing and distribution operations would ensure the placement of the right products in the right place at the right time. IMPLEMENT AUTOMATION In the long run, AI-powered robotics systems should be considered to help mitigate supply chain risks and promote sustainability goals and operational efficiency for warehouse operations. Source: Frost & Sullivan OCTOBER 2020 41

COUNTRY REPORT – SAUDI ARABIA

Risk mitigation strategies for logistics service providers Service providers need to work towards redesigning logistics solutions to meet the requirement of changing business scenario with emphasize on improving operational excellence to mitigate COVID-19 related risks

Ocean Freight

Issues and Challenges: •

Port Congestions, Workforce Safety, Restrictions on Crew members, Backlog of containers and space constraints

Strategies 



Build advanced booking system for Air & Ocean Freight to foresee at least 2 quarters. Impose surcharges to remove large quantities of containers reposition containers to equipment-deficit regions. Impose demurrage charges for non-cleared containers to reduce congestion at ports.

Air Freight

Issues and Challenges: • Shortage of Cargo capacity, high reliance on belly cargo, increasing demand for time critical cargo

Issues and Challenges:  Workforce safety, Driver shortages, Border delays, road-congestions are causing delays in pick-up and deliveries.

Issues and Challenges:  Capacity constraints, Workforce safety, Shortage of workforce threatening business continuity, increasing demand for noncritical cargo.

Strategies



42 OCTOBER 2020

Warehousing

Road Freight

Airliners to optimize freighter capacity and temporarily convert passenger flights to freighters to accommodate demand for air cargo. Provide Intermodal solutions to address air freight capacity constraints Impose spot rates for Time Definite International (TDI) shipments. Prioritize transportation of essentials such as medicines and medical equipment.



Due to driver shortages on long-haul routes, continue to be operational on short-haul routes. Implement online booking systems to assess and serve future demands Create a dashboard to feature vital information such as border closure that would keep the customers well informed.



Accelerate investments in automation of warehouse operations, which would reduce the dependency on labour force. Provide agile and flexible solutions and Optimize operations for the service providers serving healthcare, food beverage, and eCommerce to handle surging demands.

COUNTRY REPORT – SAUDI ARABIA

Key growth opportunities for the transport & logistics industry Warehousing space growth will be driven by Free Zones

Digitalization of Supply Chain

Equipment and Devices will drive Healthcare Logistics

Non Contact Retail Sales and Food Logistics

• Port modernization, expansion of cargo handling facilities and development free zones are the focus areas as the economic diversification initiatives are starting to yield results. • Up-gradation of port in Jeddah, Abu Dhabi, Dubai and development zones specifically to handle e-commerce are some of the key projects

• COVID disruptions has emerged as key driver for technological disruptions which will lead the transformational changes • Adoption of digital technologies is expected to drive sharing logistics assets resulting in optimization, reduced complexities, and lowered transportation costs..

• Short term spike in Air Cargo volumes reported for handling time sensitive cargo and medical supplies. • GCC region is major transshipment hub for Africa and Central Asia. Volume of medical devices and pharmaceuticals are expected to increase as the Covid-19 spreads across these regions.

• Food logistics and online food delivery services are expected to have relatively stable growth. • Lock downs and restrictions on movement are expected to increase online purchase of groceries and food items. • E commerce logistics is likely to gather momentum during the rebound phase

Source: Frost & Sullivan

Growth opportunities & business models COVID disruptions has emerged as key driver for technological disruptions which will lead the transformational changes

Technology Trends and Emerging New Age Business Models, 2020 Shipping and Ocean Transportation

•

Online capacity

Road Freight Transportation

•

Cargo

•

Crowd-sourced

•

Customer/ Vendor

asset allocation

management system services • •

Digital freight brokerage

booking platform

Interface for

interface for

customers

revenue

Digitized physical

management

• • • •

Warehouse booking platform Shared warehouse model Fully automated warehouses Inventory Optimization solutions

Courier, Express and Parcel

Freight Forwarding

Warehousing

• • •

Digital Freight Platforms Digitalization of Forwarders Freight Matching and Market Analytics

• •

•

Digital supply chain network Automated sorting and fulfillment centers Delivery automation and last mile delivery solutions

Logistics Outsourcing

• • •

•

Lead logistics services Contract logistics services Multimodal logistics and endto-end supply chain solutions Online Freight Services

assets Source: Frost & Sullivan OCTOBER 2020 43

IN CONVERSATION

Emrill wins five-year FM contract from Aramex

The scope of the contract includes MEP, housekeeping and specialist services

AE-based Facilities Management (FM) services provider, Emrill, has been awarded a five-year contract by logistics giant, Aramex. The scope of the contract includes mechanical, engineering and plumbing (MEP), housekeeping and specialist services across the company’s seven facilities in Abu Dhabi and Dubai. Emrill, in a press communiqué, stated it will mobilize a team of 73, including management and housekeeping staff. The team will be responsible for delivering a comprehensive range of MEP services, including firefighting and maintenance of chillers and building maintenance systems. 44 OCTOBER 2020

L to R-Bashar Obeid, Amer Kakish and Alaa Hawari ink the deal.

Emrill currently services a built-up area of over 138,000sqm across seven locations in the UAE “This contract marks our most significant win within the logistics sector, which we have identified as a key growth area for the business. Partnering with Aramex, we will work hard to bring the latest technology, efficiencies and sustainable practices to deliver services and ensure world-class standards,”

affirmed Stuart Harrison, CEO, Emrill. “Our partnership with Emrill will allow us to continue our operations with utmost confidence as we intensify efforts to ensure a well sanitized work environment,” stressed Ahmed Marie, GM, Aramex-UAE. Servicing a built-up area of over 138,000sqm across seven locations in the UAE, Emrill will deploy teams in Dubai Logistics City, Umm Ramool, Al Quoz, Mussafah and Abu Dhabi Airport Free Zone. “During the bidding process, we placed a real emphasis on not only providing worldclass services but also on the practical steps we would take to become a valued partner,” noted Sam Emery, CFO, Emrill. n

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TRANZONE

Harnessing Six Sigma Methodology in Pharma Procurement and Distribution Tried and tested Six Sigma Systems can be effectively applied to the pharma procurement and distribution processes thereby adding value to the business affirms Nilesh Tamhane, Warehouse Operations Manager at Tranzone FZCO in JAFZA South, Dubai, who has used this methodology in his workplace with demonstrable success—Editor. Below are the important areas Six Sigma methods can be used in the purchase.

s a Warehouse, Logistics, and Operations professional with over two decades of proven experience, I have increased levels of efficacy and streamlined sourcing and delivery systems, utilizing the practical applications of Six Sigma Management. In my most recent position as Warehouse Operation Manager at one of the oldest pharmaceutical distributor in the region, I have developed and maintained a consistent track record of achieving organizational and individual goals in the warehousing and distribution realm adhering to Six Sigma standards and using these to attain operational objectives. The areas of application include but are not limited to: • Annual Budgeting for Warehouse Operations • Increase capabilities and improve operational services • Monitoring KPIs for the operations team every quarter • Inventory categorization with high value and high consumable individual ABC analysis • Cost control by business process reengineering in Logistics and transportation. 48 OCTOBER 2020

1. Adopt new technology Adopting new technology is critical for an organization. The ability of an organization to deliver goods and services efficiently and to reduce costs effectively can be determined. Six Sigma offers a framework that makes it easy to adapt application software, IT infrastructure and digital systems. One of the applications you should consider is the Contract Management System. This helps manage responsibilities and this convenient setup benefits both parties. This helps entrepreneurs to determine which contracts can be reused to move from one vendor to another.

2. Enhance staff capacity and skills Training and development is another critical factor that can determine the direction of an enterprise. Part of the Six Sigma philosophy is to help employees build members’ confidence and help them work successfully. Purchasing managers can incorporate six Sigma methods to train employees and ensure smooth implementation of policies. The inclusion of Six Sigma is beneficial not only for the employees but also for the efficiency of the organization and the bottom line. In addition, it promotes

goodwill between business and suppliers, sets high rates of customer satisfaction, and accelerates growth while reducing costs.

3. Help to maintain good relationship with suppliers The Purchasing Manager’s goal is to ensure that suppliers are satisfied with the organization’s policies and processes. You can ask for bids from new suppliers when you feel the need, but this process often proves to be costly and time consuming. If you take the example of a supplier of businesses that have applied the Lean Six Sigma method for the last two to three decades, you will notice that these businesses have a different approach to suppliers. These organizations are not in the habit of changing vendors frequently. Sending requests for bids every time you want something from sellers is time consuming. This includes analyzing each application, such as answering your request, gaining information about their position in the industry, as well as identifying the best negotiation tactics for shortlisted suppliers.

4. Reduce costs The most desirable quality of a purchasing officer is the ability to procure the goods required by the company and at the same time reduce the associated costs. So the important question is how do we get this? Care must be taken before purchasing. The process is not always as

TRANZONE FZCO

simple as it seems. Some inexperienced purchasing staff may choose to create a purchase order for each application. This is one of the areas where unnecessary costs can be incurred. These sigma methods are often applied to search, identify, purchase, and manage items and orders related to your company.

5. Encourage analytical and negotiation skills Purchased managers will have to handle a myriad of tasks during the planning and implementation phases of their maintenance projects. This means that experienced managers may have developed analytical skills, but it is also important to ensure that analytical skills are used in more than one area of the process. It is important to have a good knowledge of the quantitative data related to these processes.

It completes an integral part of the Six Sigma procedure (the analysis phase of DMAIC- Define, Measure, Analyze, Improve, and Control, a data-driven quality strategy used to improve processes) which requires a thorough analysis of each process. A purchasing manager who adheres to the principles of Six Sigma needs to understand that negotiating with sellers is a complex process. The challenge for the organization is to strike a balance between achieving the terms of the agreement while ensuring that the organization and the supplier maintain their business relationship. Equipping your purchasing process for quick summaries increases a companyâ&#x20AC;&#x2122;s profitability and efficiency. Adopting six sigma tools and techniques may seem like a daunting task, but it can be beneficial for your organization in a very positive way. n

Nilesh Tamhane is a Warehouse, Logistics, and Operations professional with more than 22 years of demonstrable experience with CISCM qualification from IPSCMI-US, Lean Six Sigma Black Belt from IQF-US. He joined Tranzone in 2019 as facilities officer to look over the Facilities Management & Procurement Division.

OCTOBER 2020 49

ACME

48 OCTOBER 2020

ACME

Order Picking solutions suited for the Middle East A host of issues and developments—globalization, pandemic-related business disruptions, rapidly evolving customer expectations and the quick shift into e-commerce have reinforced the need for SME’s in the region to be more agile, accurate and economic in the way they handle intralogistics and order fulfillments. The immediate need therefore for efficient, automated warehouse and distribution solutions has never been so critical or dire—Editor.

ince the onset of the pandemic, e-commerce sales have skyrocketed and put a substantial pressure on warehouse operators. Inventory requirements as well as lead times have increased, new safety guidelines and a lack of space has severely impacted businesses and have prevented them from satisfying customer needs efficiently. In order to successfully navigate complex warehouse challenges, ACME understands that the intralogistics infrastructures of businesses need to be flexible, scalable and yet provide quick ROI. ACME with its partners Kardex Remstar and Optimus Sorters brings a wide range of solutions to the region that addresses these needs.

Kardex Remstar Vertical Buffer Module LR35

The solutions provided assist in the following four key areas: • Partial Automation. • Scalability. • Improved material flow. • Easy adaption to existing warehouse racking infrastructure. OCTOBER 2020 49

ACME

Kardex Remstar Vertical Buffer Module LR35 with ‘Frame Pick’ picking solution The stand-alone modular Kardex LR35 stores and picks small parts quickly and efficiently and can be easily connected to existing multilevel shelving systems that a customer has already within his facility. ACME’s solution design team can design a flexible solution incorporating the LR35 within existing warehouses without the need for purpose-built warehouses. Key benefits of Kardex LR 35 • Easy adaption within existing warehouse infrastructure such as multilevel shelving. • Flexible system that can be configured with multiple options and several access openings. • Provides for 99.9% pick accuracy and increased operator performance. The LR35 in combination with the Frame Pick Solution flawlessly manages a wide range of goods, numerous order lines and fluctuating order demands. The Frame Pick solution substantially reduces labour costs, helps with quick manpower on-boarding with limited training requirements as well as reduces searching and travel time between aisles. Based on the product types and nature of business, the team at ACME can configure multiple units of LR35 in series, limiting walking distance to within 12 metres.

Kardex Remstar Shuttle XP with flexible picking solutions The Kardex Shuttle XP stores a wide range of goods allowing access to various weights and sizes while substantially reducing space and manpower requirements. Key benefits of Kardex Shuttle XP • 99.9% pick accuracy, 67% manpower reduction, 85% floor space savings. • Ideal for managing wide range of products and can be configured with lower travel speeds for sensitive articles. • Highly expandable and scalable. 50 OCTOBER 2020

ACME

Colour picking using Shuttle XP

99.9% pick accuracy 67% manpower reduction 85% floor space savings

Colour picking adds coloured lights into the batch picking process allowing multiple operators to pick within one work zone. The Shuttle XP along with colour picking is highly economical and provides an ROI in less than two years. It also provides for the physical distancing requirements mandated in current times and is ideal for managing fluctuating, unpredictable demands that is common to businesses in the Middle East.

Display LED Picking assistant for the Shuttle XP The display LED-Navigator for the Shuttle XP works as a picking assistance system that provides event related information to the operator at the exact moment and thereby increasing picking performance and substantially increasing picking accuracy.

Optimus Sortation Solutions ACME brings Optimus Sorter solutions to the Middle East. The OptiSorter is designed for sorting a large range of different products. The OptiSorter is capable of sorting products such as garments, shoes, accessories, post, multimedia, cartons, jiffy bags and more. Key benefits of OptiSorter • Can reach capacities up to 15,000 trays per hour. • ACME can design various layouts such as carousel, vertical, multi-level depending on existing warehouse layout. • The OptiSorter solution can be designed with various accessories such as destination lights and displays, automated scanning as well as manual and automatic in-feed. • Highly modular.

OptiSorter

With a large experienced design and implementation team based in Dubai, ACME is able to provide optimized and tailored solutions with a quick turnaround time that are designed with the needs of the Middle East logistics market in mind. With a large experienced design and implementation team based in Dubai, ACME is able to provide optimized and tailored solutions, with a quick turnaround time, that are designed with the needs of the Middle East logistics market in mind. OCTOBER 2020 51

ACME

ACME Intralog partners with Kardex Remstar Move to ease pressure on regional warehouse operators As demand from e-commerce sector continues to grow, regional warehouse operators are under substantial pressure due to sudden demand for increased inventory space and lead time. To help them boost productivity and navigate complex warehouse challenges, ACME has partnered with Kardex Remstar to provide solutions to assist in improving warehouse operations by partial automation using scalable solutions that provide for improved material flow and can be easily adapted to existing warehouse racking infrastructure, a recent press communiqué indicated. ACME’s solution-design team can design flexible warehousing systems 52 OCTOBER 2020

using Kardex’s solutions for storing and retrieving items. This system significantly improves productivity and reduces energy consumption, whether being used to supply a production line with a wide range of products, as buffer storage in the assembly area, or for picking slow-moving parts in the distribution warehouse. These solutions are perfect for companies in e-commerce, spare parts, pharma distributors, and midsize companies that are looking to consolidate warehouse operations and looking to reduce real estate and manpower costs. “With our partnership with Kardex, we can provide warehousing solutions that help to increase picking

speed and reduce the storage area footprint through multilevel shelving,” commented Navin Narayan, FounderCEO, ACME Intralog. “These solutions substantially reduce labour costs, helps with quick manpower on-boarding with reduced training requirements and substantially reduces searching and travel time between aisles,” he added. To meet the increasing demand, UAE-headquartered ACME, which completed 45 years of operations this year, is planning to expand into Saudi Arabia this year. By the end of 2020, ACME also intends to open a sales and services office in Germany to bring them closer to their customers in the EU. n

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PHARMA-MEDCARE LOGISTICS

The Covid-19 Vaccine Downstream Supply Chain

The Challenges The last eight months in the Covid-19 pandemic has not only revealed the importance of an efficient healthcare supply chain but also various challenges in the manufacturing, procurement and distribution of the vaccine. In this contribution Eelco Dijkstra, Managing Partner, Europhia Consulting, and Laurent Foetisch of Switzerland-based Supply Chain Operations, assess the logistics and complexities of making an approved vaccine available globally â&#x20AC;&#x201D;Editor. 54 OCTOBER 2020

fficient availability and distribution of Covid-19 vaccine has become a top priority on the agenda of Health Authorities, governments, politicians and to all of the approximately 7.8bnn people around the world. What are the challenges to get these vaccines manufactured and distributed? What are the optimum temperaturecontrolled storage requirements for warehousing and transportation? What about the production at risk? And, which country will get the vaccine the soonest? After the manufacture and labeling of the vaccine into a finished product, the downstream supply chain consists of a number of activities all linked to the distribution of vaccines. It starts by transporting the vaccine from manufacturer to the country of destination. This is done using airfreight to ensure product is transported quickly in temperature-controlled conditions and monitored using data monitoring devices. Once the product arrives in the destination country the vaccines are stored at a GDP Compliant Distribution Centre (DC) either managed by a pharmaceutical compliant 3PL or insourced at a government GDP facility. Once the vaccine has been released by the local regulatory authorities the vaccine is distributed from this DC to hospitals, clinics, pharmacies and in some cases to community locations such as retirement homes, schools, remote villages etc. As for any pharmaceutical distribution chain all the steps are defined in the CMC (Chemistry, Manufacturing, Controls) Regulatory file and must be compliant to GDP (Good Distribution Practices), which may have different names across different geographies. Any GDP compliant distribution chain involves many licensed and specialized service providers such as forwarding agents, shipping container providers, airlines, logistics service providers, and other operators. The designed processes will need to adhere to global, regional and local regulations in terms of quality processes, temperature-controls, serialization requirements, trade compliance and overall product release processes (QP/ RP) and quality management to ensure product integrity and public safety.

PHARMA-MEDCARE LOGISTICS

Channel to Market and to Customers The downstream supply chain strategy is the first enabler of the distribution strategy that a manufacturer wishes to put in place. In the Covid-19 vaccine scenario, new distribution channels to market such as drive-in, external medical tents, converted medical facilities dedicated to the Coronavirus pandemic were introduced by many governments and authorities to segregate the Covid-19 patient flows from the traditional healthcare routes. These Covid-19 testing structures may very well be considered as part of government immunization programs. However, due to the pharmaceutical nature of vaccines these facilities in many cases will need to be reorganized into GDP compliant vaccine operations. This could create an additional challenge to set up quickly and operationalize. For example, a temperature-controlled chain for large quantities of vaccines needs to be put together quickly, taking into consideration all the safety and security features to guarantee vaccines’ quality and integrity. Moreover, the actual transportation of vaccines from the country of origin to the country/location of destination will pose a huge challenge due to complexity and scale. Suppliers of multiple potential vaccines have already started scaling up their production capacity “at risk” by joining hands with different countries and distribution partners initiating production in various geographical locations. However, in order to deliver the vaccines to all parts of the world especially to countries with limited cold-chain infrastructure, strong logistical network and air cargo freight is required. Emirates recently shipped 25 tonnes of vaccines, approximately 1.8mn doses, from Milan to Brazil in specialized containers to maintain a constant temperature of 5°C. It is currently estimated that the first round of millions of vaccines will need to be distributed in more than 200,000 pallet shipments transported in refrigerated containers. As per the recent announcement made by IATA, at least 8,000 fully loaded air- freighters will be needed to ship the vaccines. This is going to become the largest single transport challenge ever.

Temperature Control Keeping the product at the labelled registered temperature as indicated on the pack is the most critical aspect of the whole distribution process. While most of the vaccines are required to be kept at 2° to 8°C during storage and distribution, there are mRNA-based Covid-19 vaccines that would need to be kept at temperatures as low as -80°C. Each hand over to a new location in the supply chain creates a potential risk to temperature excursions which need to be carefully controlled and monitored. Given traditional distribution channels, it is already difficult to be in compliance while using normal qualified shipping lanes. The distribution of the Covid-19 vaccines will require new storage locations and new shipping routes with different final destinations where doses will be administered. It is therefore important for government authorities to work with pharmaceutical compliant logistics service providers who bring expertise and global logistics resources to support immunization distribution programs related to: Quality Management Systems including trained staff to efficiently handle time and temperature sensitive vaccines. Monitoring capabilities to ensure that quality of vaccines is not compromised. In many countries around the world, biopharma products including vaccines need to

Emirates has shipped 25 tonnes of vaccines (1.8mn doses), from Milan to Brazil in specialized containers at a constant temperature of 5°C. be labelled with a unique identifier number printed directly on the packaging, typically through bar-coding technology, which is registered in central databases. Serialization guarantees item-level traceability and ensures that items remain secure from potential tampering and theft. At the point of dispensing, a final check should be performed to control the authentication of the product to detect any counterfeit drug. Item level bar-coding could play an important role here.

New distribution channels Potentially new distribution channels will have to ensure that only approved and legitimate Covid-19 vaccines are made available and dispensed. Authenticity of these vaccines must be determined throughout the supply chain. Given the high throughput volume, the only practical way to achieve this is to link these physical medicines with digital technology. Digital technology cannot only provide real-time item visibility but could also help flag any potential risks and bottlenecks pertaining to transportation, suppliers or warehousing.

Quality and Release

Eelco Dijkstra, Managing Partner, Europhia

Another regulated activity is the overall quality management of the RP and QP releases of the bio-pharma products, which includes vaccines, to the markets, making sure that all the steps registered in the dossier have been fulfilled and all activities have been performed in compliance with the governing laws and regulations. End-to-end supply chain quality is a journey which needs constant and reiterated efforts to address deviations and fix changes through CAPA (Corrective Action Preventive Action) management. n OCTOBER 2020 55

COMBATING CYBERSECURITY

What’s next for business leaders: Cybersecurity in a post-Covid Era Haider Pasha, Chief Security Officer, Middle East and Africa (MEA), Palo Alto Networks, reflects on the implications and repercussions of cybersecurity in a post pandemic landscape—Editor.

t may sound odd to talk about the ‘postCovid’ era when infections and, tragically, deaths continue to mount around the world. However, I remain optimistic that the brilliance of the world’s scientists and a global commitment to finding a vaccine will eventually bear fruit. Therefore, I strongly encourage business executives and board members to begin planning in earnest for how to conduct business when we do turn the corner. This is important, because while I am confident that we will defeat Covid-19, I am also realistic to expect that some other kind of crisis could show up in the future. We quickly learned when Covid-19 emerged and rapidly spread, substantial cybersecurity risks presented themselves— and many organizations were not adequately prepared. So, let’s start planning for that next big threat in order to ensure proper defense, sufficient resilience and robust business continuity.

Lessons learned The philosopher George Santayana reportedly said that those who do not learn from history are condemned to repeat it. Business executives must keep that advice 56 OCTOBER 2020

Haider Pasha in mind when considering the impact of disruptive events like Covid-19 on their organizations. I believe there are four key lessons that business leaders should understand as they plot their upcoming cybersecurity strategies: Lesson #1: Work no longer is the sole, or even principal, domain of the business office. One of the few silver linings from the pandemic has been an awareness and understanding of how work can and should be done from remote locations, and I’m not just talking about working from home.

We are now in the era of ‘work from anywhere’, and we are not going back. That means that organizations must architect business operations, especially cybersecurity, for that model. Outside of the general scale and capacity challenges, working remotely exposed many organizations’ cybersecurity vulnerabilities; it was a harsh—but necessary—lesson to learn. Lesson # 2: The move to cloud services is no longer a trend, but a necessity. So, having a cloud cybersecurity strategy is a must. Many businesses discovered the operational benefits of being able to provide access to applications and services via the cloud, but they also found out what happens when you move critical data to and from the cloud without the right cybersecurity framework. Cloud services are now a prerequisite for operational agility and for business continuity, but those can only be assured if cloud connections are safe, secure, compliant and aligned with data

COMBATING CYBERSECURITY

governance policies. This acceleration of the transition to the cloud is now a fact of life. Lesson # 3: Good cybersecurity practices and policies of the past are no guarantee of future success. Just because your cybersecurity defenses worked adequately in the past, you should not assume they will continue to stand up to new threats in the future. If you ran into any cybersecurity challenges pre-Covid and we know many did; then you can be assured they will be even more problematic going forward. You must learn to massively and reliably customize, evolve and scale your cybersecurity frameworks in an era of countless new connections, applications and services, and you had better work closer than ever with your ecosystem, including supply chain, cybersecurity partners and service providers. Lesson # 4: Intelligence gathering is not enough. Organizations need more ways to correlate seemingly disparate data points in order

to provide the right context to securityrelated data. Security Operations Centres, risk management professionals, data governance experts and business leaders throughout the organization need to identify the context of data in order to use those powerful analytics tools to help you make smarter decisions on risk. We also need to be smarter in using our resources, human and technology, to deal with mounting and expanding risk vectors.

What’s next? Learning from lessons based on recent events is valuable, of course. It must be noted that lessons are most impactful when we can actually apply them toward what’s next. We should aim for a modernized, context-aware cybersecurity strategy. Specifically: Observation # 1: Work from home will not only continue, but will dramatically morph into work from anywhere. Employees, partners,

suppliers and customers all will need connections to digital assets—applications, data and services—that are even more secure than today. Everyone and every device will need to be protected in any location, especially when those devices are connected to things like home networks and personal cloud services. Observation # 2: Event and incident monitoring will need to become more systematic, more detailed and more intelligent. Organizations must be able to monitor not only suspicious traffic, but also monitor any device and user, and be able to put user behavior and data activity in the proper context. Observation # 3: No organization will have the luxury of putting off a cloud-centric cybersecurity strategy, because even the most cloudaverse organizations will become cloudready, if not cloud-first. Those that have had a cloud-first strategy are now moving to a cloud-only strategy. The pandemic has taught us all about new use cases for cloud computing by necessity, and those use cases are becoming increasingly strategic to key business objectives. Observation #4: Automation must become a core principle of cybersecurity defence. The innovation and persistence of bad cyber actors has taught us that we can’t just hire enough cybersecurity experts to brute-force a solution. Automation is fast becoming a hallmark of the smartest and most visionary organizations when it comes to cybersecurity. Relatively simple activities that previously consumed a lot of security professionals’ time and budget must become automated in order to devote very smart security experts to working more closely with business professionals and applications in the form of DevSecOps. The pandemic has taken its toll on people, organizations and economies. No one can predict when all this is over. However, even if we don’t have a crystal ball, we all know the direction of digital transformation, and clearly it is one way only. Business leaders, with the help and guidance of their security teams and their boards, must look at new ways to secure their organizations’ most valuable digital assets and create a safe, secure digital environment beginning now! n OCTOBER 2020 57

THOUGHT LEADERSHIP: TOM CRAIG

Supply Chain Resilience: Thinking business continuity Supply Chain management is central to business continuity. The pandemic has validated its strategic importance and criticality, writes Tom Craig President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain.

he Covid-19 pandemic has presented two shocks. The first was the supply shock as manufacturers, suppliers and exporters shut down. Then was the demand shock as buyers and importers locked down or had curtailed operations. The totality was global supply chain chaos and disruption. Supply chain management is about the end-to-end movement and handling of inventory—finished goods, products, parts, components, and assemblies. That is what supply chain resilience must be built on. As you build supply chain resilience, you decrease supply chain risk. Please note that creating resilience is not an overnight project. Not by any stretch of a buzzword. There are two key parts to the achieving resilience endeavor. These two parts are not separate and distinct. They overlap.

Part 1: Call this the product side of your resilience effort with all its nodes, links, and contact points. The first step is to understand your endto-end supply chain. If you do not do this, then your efforts can be hit and miss. There are two sections to it—upstream where suppliers are and where supply chains begin and downstream which is the more recognized area. Start your assessment upstream—the inbound supply chain—where the supply of supply chains begins, has the greatest complexity and size. There are many stakeholders and players upstream. All this 58 OCTOBER 2020

means upstream is at great risk—and hence your need for resilience. Look at it in terms of its components: • Transportation and logistics • Suppliers • Products Transportation, logistic, warehouses— both yours and those of outsider providers—are your supply chain infrastructure. They are an integral part of what the supply chain does. Think of this as bills of materials, products and their components. You want to identify and prioritize. Rank critical products—and their components/ assemblies. Determine key suppliers. Select the must-have transportation and logistics service providers. That means looking at suppliers’ suppliers, their logistics, transportation, forwarders, and ports. If your supplier network and their network has problems, then you have problems. Risk flows down. Map your upstream supply chain and the supply chains within supply chains. Look for gaps, missing step/players, and weak links. That may be the critical items you started with or revised ones based on your analysis. The mapping can identify new risks, such as suppliers or suppliers of suppliers for multiple or key products or components. Minor ports or small transport or logistics providers could be problems. Not everything is done by large, MNC provider corporations who are not immune from problems either. Another point in the assessment is the chain of custody. You want to see the flow

of products. Who does what, where, and how? Gaps in the custody can be red flags for your analysis. The downstream supply chain is built around your company facilities—factories and/or warehouses / distribution centres. With the analysis of the upstream and downstream supply chain segments come hard questions about what your suppliers, service providers, and their suppliers and providers and respective approach for resilience. You may face decisions on changing some of these. Remember, increased resilience means reduced risk.

Part 2: This is about technology. Here come technology and its current silver bullet resilience status. Think of TV commercials and you hear—contactless. It makes it harder to spread coronavirus. Implicit in it too is that technology is contactless and will not be impacted by a pandemic. It will not become ill.

THOUGHT LEADERSHIP: TOM CRAIG

Digitization may be the best place to start. Supply chain management can be document heavy. Those documents can be viewed as analog. Moving away from that paper and into digital provides important data. That data can be used as input with other technologies. Look at other technology applications: • Robotics for warehouses / distribution centers. • Consider drones for transportation. You may not be using them now, but you need alternatives and flexibility, especially at critical locations. • Blockchain with suppliers and transportation/logistics providers. Again, go beyond your visible tier of suppliers and providers. There are also gaps in the number of participants in and order-shipment and current blockchain application. • Supply chain visibility, end-to-end, where digitization and blockchain— integrated—can be used, along with your internal warehouse management system. Again, there may be holes.

• Artificial intelligence has been offered more in analytical/planning uses, such as with inventory positioning and buying of products and services. • The cloud, within the context of resilience, has a place—from cloud versions of WMS and other technology. It may give you ways to integrate various technologies both internal and external to your supply chain. Present technology does not address and solve everything. Do not go into it as your resilient silver bullet. This it is a vital tool for your resilience effort.

Final Thoughts Building resilience across your supply chain starts with knowing your supply chain, its critical and weak areas, its suppliers, products, infrastructure, and service providers. This includes identifying all the players and stakeholders. Technology then works with understanding your end-to-end supply chain—and going beyond--with the upstream segment.

Some key points for your project: • Your total supply chain has contact and contactless elements. • Remember, orders can be digital. However products, components, assemblies, and materials are not. That is why your resilience program must be more than technology. • Go upstream beyond your suppliers and transportation providers. Problems with their suppliers and logistics firms are your problems, especially during a pandemic. • Be diligent. Look for gaps. By definition, they are risks. An unknown is the time frame—how long with a next pandemic take from start until it is contained, and a vaccine is available. That unknown is a serious challenge to your plan. Lastly, there is the implementation. Selling it up, down, across the company, and outside to your stakeholders. Those firms may have other customers. Develop and manage a comprehensive and well-considered implementation plan, including tasks. n OCTOBER 2020 59

ADP ACQUISITION

Abu Dhabi Ports acquires MICCO to become a provider of comprehensive logistics solutions The expanded portfolio and exhaustive service offerings now available as a result of ADP’s acquisition of one of the Emirate’s oldest and largest logistics services provider opens new and expanded opportunities in multiple market segments—Editor.

bu Dhabi Ports, part of ADQ, recently announced another step in its drive to enhance the emirate’s rank as an international hub for trade and logistics with the acquisition of MICCO Logistics. With the integration of MICCO as part of Abu Dhabi Ports Logistics, the Group’s logistical arm is setting itself apart from the competition. Abu Dhabi Ports Logistics leverages MICCO’s experience and capabilities as the emirate’s first provider of end-to-end logistics solutions. Thanks to the powerful combination of MICCO’s international and regional logistics solutions, its large and diversified transportation fleet, and a network of temperature-controlled warehouses, Abu Dhabi Ports is in a unique position to serve its customers along every segment of the supply chain, said a press statement. The added capacity enables the organisation to manage all customer touch points including: sourcing; international freight handling through project, commercial, and contract logistics; customs 60 OCTOBER 2020

clearance and stevedoring among other functions.

Enhanced logistics portfolio

Abu Dhabi Ports’ enhanced logistics portfolio will ensure that it remains the leading provider of logistics services for the energy sector, while at the same time it expands its value offer to other strategic sectors including retail, e-fulfilment, FMCG and pharmaceutical & healthcare. “We are collaborating with Abu Dhabi Ports to transform its logistics arm into one of the largest, most capable and most costefficient providers of fully integrated and holistic logistics solutions in the UAE and beyond,” affirmed Khalifa Sultan Al Suwaidi, Vice Chairman, Abu Dhabi Ports and Chief Investment Officer, ADQ. “The acquisition of MICCO is a critical step in our emirate’s journey to establish itself as a leading hub within the global trade and supply chains,” asserted Captain Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports. “Aligning directly with Abu Dhabi Ports’

growth strategy, the integration of MICCO has enabled us as an organisation to both enhance our service offering, while also meet the needs of a broader global market,” remarked Robert Sutton, Head, Abu Dhabi Ports Logistics Cluster.

MICCO Dividend

Founded in 1978, MICCO Logistics is one of the first local freight forwarders established in Abu Dhabi and one of the first businesses to offer consolidated freight services to the emirate’s oil and gas industry. With a modern ground fleet comprised of more than 350 prime movers with diversified fleet of trailers, specialised storage facilities, MICCO’s diverse portfolio of logistics solutions includes freight management as well as road feeder services for the aviation segment. As the first logistics company to establish its presence in the Khalifa Industrial Zone Abu Dhabi (KIZAD), MICCO’s distribution centre includes several temperaturecontrolled warehousing services that are ideally suited for storing sensitive cargo for extended periods. n

WHO GIVES YOU THE COMPLETE STORAGE SOLUTION? SSI Schaefer is the total solution provider in Intralogistics. Your one-stop shop for warehouse storage and automated systems needs in the MEA region and worldwide. P.O. Box 37600 Dubai Logistics City â&#x20AC;&#x201C; Plot WB54 | Dubai South, Dubai United Arab Emirates | +971 4 804 8100 | ssi-schaefer.com

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GLOBAL SUPPLY CHAIN OCTOBER 2020

Articles inside

ADP-MICCO

Tom Craig: Supply Chain Vulnerability

ACME

Cybersecurity Caution

Vaccine distribution complexities

NEWS

Country Report: Saudi Arabia

Tranzone

Aramex

Erhardt Partner Group (EPG

Fetchr

Shipwaves

Sanad-Mubadala