BRO_Aljazierah_Home_Appliances_Feb2021

Aljazierah Home Appliances

DIGITALISATION OF SUPPLY CHAIN OPERATIONS DURING A PANDEMIC

IN ASSOCIATION WITH

DIGITAL REPORT 2021

02

DIGITALISATION OF SUPPLY CHAIN OPERATIONS DURING A PANDEMIC

www.a l j a z i e r a h . com

03

ALJAZIERAH HOME APPLIANCES

Naiyer Hussain, Supply Chain Director of Aljazierah Home Appliances, takes the time to discuss digitalisation of supply chain operations during the COVID-19 era

W

hen you consider the new norms and values established in 2020, I don’t doubt that you consider COVID-19 to have been the dicta-

tor that defines them; and, it’s certainly the case that 04

the global pandemic has been an influencing factor, but we would be amiss to claim that it is the only one.

In fact, the true defining factor of this year has been the genius of human innovation and adaptability - especially when it comes to supply chain operations. It’s the collaborative efforts between individual humans at different stages of the supply chain that truly made the difference as the world stood in the looming shadow of adversity.

A man who knows all about that unity through collaboration is Naiyer Hussain, the Supply Chain Director of Aljazierah Home Appliances, manufacturer & retailers of Home Appliances & HVAC equipment ranging from water coolers and heaters to refrigeration units and freezers across Saudi Arabia and the Middle East.

05

www.a l j a z i e r a h . com

ALJAZIERAH HOME APPLIANCES

“ Digitalisation in supply chain is required for improved decisionmaking capabilities, which allows companies to bridge the gaps across endto-end supply chain.”

— Naiyer Hussain, Supply Chain Director, Aljazierah Home Appliances

Although Aljazierah was the first manufacturer of its kind in Saudi Arabia and the Middle East, it’s no longer alone in its particular marketplace - in fact, it has global competition. To the question of, “what put’s Aljazierah ahead of its competitors,” Naiyer succinctly stated that “the leadership and vision of the CEO, CFO, and Vice President are all vital to Aljazierah’s success in our respective markets, and those three individuals underpin the reason why we’re ahead of the competition, right now. As it stands,

06

“Aljazierah was started in 1968 by the

we’ve successfully nurtured strong part-

late Mohamed bin Abdulaziz Al Rajhi,

nerships with both our customers and

a visionary entrepreneur. It was the

our suppliers, which ensures that both

very first factory of its kind in the Middle

ends of our businesses supply chain

East to produce home appliances.

remain on-top. As a company, we also

Today, Aljazierah has nine production

have a tendency to explore options and

facilities for water heaters, water cool-

find multiple solutions to the problems

ers, evaporative coolers, gas cookers,

that we may face; we treat each problem

refrigerators, washing machines and

as a case study and the executive arm

plastic components. Our products are

of the organisation put in the hours to

well known in Saudi Arabia, and we are

brainstorm and come up with probable

now exporting products to almost all of

solutions together, as a team.”

the Middle Eastern markets. We have

When it comes to the supply chain

also expanded into the African markets,

operation of any organisation with the

through the use of one production

size and scope of Aljazierah, many

factory in Sudan,” Naiyer told Supply

industry-leading companies choose to

Chain Digital.

either use one supplier that can provide

07 E X E C U T I V E P R O FILE :

Naiyer Hussain Title: Supply Chain Director Company: Aljazierah Home Appliances Industry: Home Appliances Location: Riyadh Naiyer is a senior leader possessing vision and skills to design, develop and monitor E2E supply chain. He performs comprehensive projects around supply chain, digital supply chain transformation and change management strategies to improve visibility across supply chain to achieve reliable, responsive, agile & cost-efficient supply chain including operational excellence. He managed global procurement of CAPEX & OPEX in most modern manufacturing plants. He directed supply chain re-engineering for a paradigm shift from production-driven to a demand-driven business model, leading to a higher percentage of sales and production with high inventory turnover. He participates and speaks in supply chain conferences & seminars across GCC. www.a l j a z i e r a h . com

ALJAZIERAH HOME APPLIANCES

FP ABOUT US Aljazierah Home Appliances FEB 2021 CLICK TO WATCH

|

1:14

WE DO IT BETTER

Made

in

Italy

Leader in safety valves for electric storage water heaters w w w. r i t m o n i o . i t

“ It has been important to recognise the reality of the situation and acknowledge that all companies have limitations - even ours.”

— Naiyer Hussain, Supply Chain Director, Aljazierah Home Appliances

March 21st, onwards. Considering the fact that the pandemic had been rife in China since December of last year, Aljazierah was already on high alert with the intention of mitigating any supply chain risks.”

“We started moving inventory to regional warehouses to balance the risk, and we also made arrangements within factory premises for the rest of the workers to work in regulated, safe

all of their goods and services, or they go

conditions, so protect each individual

the other route and use several, work-

whilst also preventing the spread of

ing in unison. In Aljazierah’s case, Naiyer

infection throughout our labour force,”

told us that “we are made up of several

the Supply Chain Director added. It’s

interdependent global partners. All our

clear that Naiyer, just like every other

suppliers are highly skilled and profes-

leader in the field, didn’t want to lose

sional in their areas. They keep the high

human resources to the virus, given

value of partnership agreements, and

that “expected shortages of materials

continuously work on product innovation

and services were already the biggest

and process optimisation, for the sake of

challenge - and a major pressure for me,

our customers.”

personally. Aljazierah had to ensure the

On the subject of COVID-19 - the

safety of our people whilst also maintain-

elephant in the room, really - it often

ing a constant flow of goods so that our

seemed that Asia, Europe, and the

stocks didn’t bottom-out. We oversaw

Americas were hit hardest by the virus.

a reduction in work timing from 18 hours

Naiyer revealed that “Saudi Arabia also

to just six hours for logistics and ware-

had COVID-19 cases and the govern-

housing projects. It was a challenging

ment implemented curfews and highly

time, but, again, good teamwork and col-

restricted everybody’s movement from

laboration got us through it.” www.a l j a z i e r a h . com

09

“ The team here makes each crisis into a case study and, together, through collaboration, we fix it so that the next time a similar situation occurs, we are prepared to tackle it.”

— Naiyer Hussain, Supply Chain Director, Aljazierah Home Appliances

You’ve most likely heard the claim before, but many professionals across the supply chain industry and its subsidiaries, have been suggesting that digital transformation accelerated by approximately a decade in 2020 alone, due to the innovations that had to take place to ensure business continuity and survival at the height of the pandemic.

To this, Naiyer told us that he “absolutely agrees with the notion that COVID has accelerated the digitalisation process in almost all sectors. Prior to the pandemic, there was already a conceptual shift

FP COMPETITION Aljazierah Home Appliances FEB 2021 CLICK TO WATCH

|

1:06

11

towards digital, but when the world went

unavoidable. To ensure that we provided

into isolation, the pace of that digital

our customers with our essential ser-

transformation accelerated ten-fold so

vices, we obtained permits and licenses

that companies could adapt to a world in

from the Saudi Arabian government, so

lockdown. Without digital tools and tech-

that we could continue operations dur-

nologies, it would have been impossible

ing the lockdown, and we had to obtain

to continue running the show.”

police permits for the transportation of

“In truth, we were not fully prepared

goods and workers - we even relocated

at Aljazierah. We lacked many tools, but

to areas outside of containment zones,”

our team used their experiences and

Naiyer added.

skills to work under abruptly changing

Naiyer shared that Aljazierah would

environments. We made many decisions

be looking to implement any of the tools

to reduce the impact of the pandemic on

and technologies that the company was

our business - but minimal damage was

previously lacking and emphasised the www.a l j a z i e r a h . com

ALJAZIERAH HOME APPLIANCES

1968

Year founded

Riyadh Location

500+ Number of employees

12

FP DIGITIZATION Aljazierah Home Appliances FEB 2021 CLICK TO WATCH

|

1:11

13

importance of them when he told us that

though. At Aljazierah, as with every

“digitalisation in supply chain is required

other company around the world, they

for improved decision-making capabili-

also need to embrace the technology,

ties, which allows companies to bridge

“because it makes our business process

the gaps across end-to-end supply

easier, and we can then replicate our

chains. Also, micro-segmentation with

goals into digital advancement and repo-

digitalisation increases the overall profit-

sition the tech for remote handling. This

ability of operations across the chain by

must also collaborate with our business

allowing for more actionable, targeted

model, reduce cost, and save time.”

choices that will - theoretically - have

In the coming years, if the world

a positive effect on the overall supply

continues to struggle with unexpected

chain management experience.”

viruses and natural disasters, it’s likely

The Director was quick to add that it

that the new norms of 2020 will remain.

isn’t only about implementing the tools,

Now, at the height of lockdown, global www.a l j a z i e r a h . com

ALJAZIERAH HOME APPLIANCES

supply chain networks struggled with the spike in demand for products purchased through eCommerce - a problem that will potentially continue into the New Year and further. Naiyer told us that “eCommerce sites alongside traditional sales channels and showrooms have made the supply chain more complex and, due to the convenience of the amalgamation, we now have to deal with higher customer expectations for faster deliveries.

Managing customer expectation is the biggest challenge that we will all face 14

moving forward - an additional step that increases the complexity for upstream and downstream partners along our networks.”

Naiyer’s final comment to Supply Chain Digital provided some wisdom that the many C-Suite executives could do with following; to the question of leadership and managing a company through a time of volatility and uncertainty, he said, “I am trying to keep calm during this crisis. I still sometimes get stressed during a period of crisis, as you might expect, but if you can keep a cool head, you can strategise around the negatives.

Aljazierah intends to keep production running, avoiding stoppage and

“ As a company, we also have a tendency to explore options and find multiple solutions to the problems that we may face; we treat each problem as a case study and the executive arm of the organisation put in the hours to brainstorm and come up with probable solutions together, as a team.”

— Naiyer Hussain, Supply Chain Director, Aljazierah Home Appliances

FP CHALLENGE Aljazierah Home Appliances FEB 2021 CLICK TO WATCH

|

1:15

15

minimising downtime; while doing so, it is important to recognise the reality of the situation and acknowledge that all companies have limitations. The team here makes each crisis into a case study and, together, through collaboration, we fix it so that the next time a similar situation occurs, we are prepared to tackle it.�

www.a l j a z i e r a h . com

ALJAZIERAH HOME APPLIANCES FIRST INDUSTRIAL CITY P.O. 2872 RIYADH 11461 KINGDOM OF SAUDI ARABIA T +966-11-448 9868

www.aljazierah.com

P0WERED BY