GLOBAL SUPPLY CHAIN SEPTEMBER 2020

September 2020 Issue 72

ENHANCING THE BUSINESS OF LOGISTICS

Pioneering intralogistics automation TradeLens

Integrating Supply Chain Partners

Kingdom Food Security Ensuring Food Provisions

Etihad Rail Tripling Fleet

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.

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

     

Yes we can!

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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After a fairly prolonged period of work stoppages, slowdowns, adaptation to a new professional landscape and a virtual paralysis of the logistics and supply chain operations, green shoots are gradually springing up as the situation limps back to normalcy.

In the Middle East, as with many other regions in the world, the onset of September and the eventual decline in temperatures is also normally an opportune time for conventional resurgence in business. This year however is anything but normal—but there are signs of an emerging turnaround as new cases of infections progressively fall, number of recoveries rise, relatively fewer deaths and the situation stabilizes.

That business revival is evident following our exclusive tête-à-tête with Navin Narayan, Managing Director, Acme for our cover story for this edition. Acme, a long established company with operations in Dubai and in India, is engaged in providing industrial, warehouse and storage solutions for the past almost four and half decades.

In an expansive interview, Narayan spoke glowingly about the company, chronicling its growth, its evolution as it forged new partnerships and professional alliances and his blue print for accelerated growth in the future.

Meanwhile, many logistics services providers have been gravitating towards TradeLens, the tech-laden open and neutral industry platform jointly developed by Maersk and IBM. The latest high-profile entity to get on the bandwagon after state-owned DP World is the UAE and India-based Shipwaves, reportedly Asia’s first industryleading digital freight forwarder. The deal is expected to have wide ranging impact for all stakeholders involved.

GCEC has introduced an advanced and reliable human body temperature monitor contrivance as part of their new product offering. Also Japanese truck manufacturer UD Trucks has partnered with top global tyre manufacturer Bridgestone and Abu Dhabi’s leading automobile and commercial vehicles dealer Al Masaood Automobiles to educate drivers on the need to stay secure and provide safety kits as part of the collective CSR responsibilities of the companies involved.

We also have a slew of thought leadership articles on multiple topics authored by specialists in their respective areas of operations. It is our hope that this will add a value dividend to our content presentation.

Also in here is our regular mix and menu of stimulating content—so go feed on our carefully and professionally curated editorial and content offerings. Do check it out.

Happy reading!

Malcolm Dias

Editor malcolm@signaturemediame.com

SEPTEMBER 2020 3

September 2020 Issue 72

06 NEWS 30 GCEC

Providing reliable body temperature monitors

32 TradeLens

With Shipwaves now on board, the Maersk-IBM supported platform is making waves.

33 UD Trucks

20

ACME

Purveyors of Intralogistics automation and solutions.

49 JAFZA Performance

Dubai’s premier free zone has reported surge in food and agricultural trade in 2020 over the corresponding 2019 period.

In conjunction with Bridgestone Tyres and Al Masaood Automobiles, UD Trucks is reaching out to insulate drivers from the pandemic.

50 Light Commercial Vehicles-Global

Swisslog has successfully executed a centi-million US$ project to provide Mai Water with sophisticated intralogistics.

51 Bahri-SALIC

34 Swisslog-Mai Water

36 Automated Storage Systems

Swisslog ME General Manager Alain Kaddoum provides professional tips for optimizing e-commerce with Automated Storage Systems.

38 Bito Storage Systems

Dean Lawrence, Managing Director, Bito ME talks about the newly introduced variant of the flagship MB multi-purpose container series.

40 Thought Leadership:

The rise and rise of Amazon Our regular contributor Tom Craig, President LTD Management, examines the exponential growth of the world’s largest e-retailer.

42 3D Printing

Lee-Bath Nelson, Co-Founder and VP Business, LEO Lane, on the importance of 3D printing in supply chain.

46 AI and Robotics

AI and Robotics hold the key to the future explains Thierry Nicault, EVP–MEACE, Salesforce

48 Lucid Motors

Saudi Arabia’s PIF supported Lucid Motors has pioneered the fastest charging EV battery.

4 SEPTEMBER 2020

Market

Frost & Sullivan’s Market Outlook reveals global plunge in 2020 sales of LCVs Saudi Arabia’s SALIC and Bahri partner to form the National Grain Company.

52 GPCA

GCC chemicals producers reduce emissions despite increased production says a recent GPCA Report.

53 SOHAR Airport & Freezone

Oman’s premier port reveals good performance in Q2-2020

54 Supply Chains in pandemic times

Eelco Dijkstra, Managing Partner, Europhia Consulting, weighs in on supply chains in pandemic times.

56 Etihad Rail

Etihad Rail’s annual transport capacity expected to reach 59mn tones, says a recent report.

57 Humanitarian Logistics

DHL Global Forwarding’s Fatima Ait Bendawad on Dubai’s Humanitarian Logistics Hub

58 Retail Supply Chains

Niranjan Gidwani, Independent Consultant Director and former CEO, Eros Group on the retail landscape post-pandemic.

60 Cybersecurity

Implications for cybersecurity in pandemic times.

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Dubai Trade launches ‘Zadi’ in bid to support food security and facilitate food import n Dubai Trade, DP World, UAE Region’s single window platform for cross-border trade recently announced the launch of ZADI, a unified food import platform aimed at facilitating the import and re-export of food shipments throughout Dubai ports.

The first-of-its-kind platform in the Middle East is part of Dubai Trade’s plan to be the leading integrated platform in all import and re-export services. It also aligns with the UAE plan for the post-Covid19 era that will ensure the country’s robust recovery and development.

Initiated by the General Secretariat of the Executive Council of Dubai, and through synergy of efforts between DP World-UAE Region, Dubai Municipality, Dubai Customs

and Dubai Trade, the platform is positioned to help over 18,000 companies in Dubai execute 360,000 transactions annually via its streamlined process.

“Zadi’s integration with Dubai Customs and Dubai Municipality helps to seamlessly facilitate the import and reexport process. This end-to-end integration allows us to offer our online services and logistics capabilities to the world, helping secure vital food supplies, both locally and regionally,” stated Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region.

“Zadi unifies service delivery channels by ensuring that there is no duplication of any processes. In the longterm, the platform facilitates

The Zadi platform the release of imported food and unifies service delivery channels to meet the customers’ expectations,” commented Eng. Dawood Al Hajri, Director General of Dubai Municipality.

“Through the new platform, we will accelerate customs

inspections and clearance of food shipments. Zadi facilitates our transactions through the integration of parties involved in food trading especially Dubai Municipality,” concluded Ahmed Mahboob Musabih, Director General of Dubai Customs.

P&O Ferrymasters commences operations at DP World London Gateway Logistics Park n P&O Ferrymasters, a

European provider of tailormade transportation and logistics services, recently took occupation of the 231,000sqft distribution centre space on practical completion of the building.

The company was able to set up business immediately to manage and operate the new distribution centre, allowing it to meet increased market demand for warehouse and cross-dock activities at London Gateway.

Taking a five-year lease at the brand new LG231 facility will enable P&O to further build 6 SEPTEMBER 2020

its port and market-centric distribution centre strategy. It follows the opening of a new Rotterdam distribution centre in 2019 and complements the P&O Group developments in Tilbury – activities which are more continental cargo focused.

LG231 is located at the heart of the Logistics Park and sits alongside DP World London Gateway Port, offering unique multimodal integration. It is Ferrymasters’ first facility in the UK supporting both imports and exports.

The primary focus of this facility is the Food & Beverage and FMGC industries but it is

P&O Ferrymasters commences operations at DP World London Gateway Logistics Park. suitable for any vertical industry.

“This additional new warehouse capacity at London Gateway marks an important additional step in our plans to enable trade flows across Europe,” commented Mark Mulder, Director Contract Logistics, P&O Ferrymasters.

“Together we can offer unrivalled service for customers and possess the potential to radically impact the whole supply chain and enable the smarter flow of trade,” remarked Oliver Treneman, Park Development Director, DP World London Gateway.

New overseer of the Emirate’s maritime activities announced n In a move designed to fortify Abu Dhabi’s position as a world-leading centre for maritime activities, Abu Dhabi Ports, an ADQ company, has been assigned as the primary custodian of all of Abu Dhabi’s waterways and marine ecosystems, through the creation of Abu Dhabi Maritime.

The new body was formed by the Department of Municipalities and Transport (DMT) based on an agreement between Abu Dhabi Ports and DMT, in which both entities agreed to cooperate in launching a wide variety of integrated services and facilities.

Abu Dhabi Maritime will be supported by a new Maritime

Advisory Council, which will represent the interests of key partners and customers including, government entities, ports, individual users, communities, and marine service companies.

“With the establishment of Abu Dhabi Maritime, we will deliver on the emirate’s Plan Maritime, and take the regulatory oversight of our maritime sector to the next level,” remarked Falah Mohammad Al Ahbabi, Chairman of the Department of Municipalities and Transport, and Chairman of Abu Dhabi Ports.

“An important component of Abu Dhabi’s rise as a major

Abu Dhabi Ports. global maritime centre has been our wise leadership’s emphasis on regulatory excellence,” commented Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports Group.

“The new entity will commence its work by implementing a comprehensive regulatory framework, developing world-class maritime infrastructure, and introducing consolidated strategic planning

for coastal zone management,” said Captain Saif Rashid Al Mheiri, Managing Director, Abu Dhabi Maritime.

Abu Dhabi’s waterways comprise 45,000sq km along a 2,400km stretch of coastline, which hosts 17 commercial and community ports, over 100 maritime facilities, over 1,000 companies, and provides for over 40,000 vessel movements per year.

ADNOC L&S and China’s Wanhua Chemical Group form strategic shipping JV n ADNOC Logistics & Services (ADNOC L&S), the shipping

and maritime logistics subsidiary of the Abu Dhabi National Oil Company (ADNOC), recently announced the formation of a new strategic joint venture (JV) with Wanhua Chemical Group (Wanhua).

AW Shipping Limited (AW Shipping) will own and operate a fleet of very large gas carriers (VLGCs) and modern product tankers. The company will be responsible for transporting LPG cargoes and other petroleum products, sourced from the ADNOC Group and global suppliers, to Wanhua Group’s manufacturing bases in China and around the world.

“This creative win-win partnership strengthens our growing relationship and will deliver greater value and efficiency for both our organizations,” commented Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and CEO, ADNOC Group.

The formation of AW Shipping follows a 10-year liquefied petroleum gas (LPG) supply contract signed between ADNOC

and Wanhua in November 2018.

“The new company will strengthen the strategic cooperation between ADNOC and Wanhua and will also ensure the stable supply of LPG cargoes and other petroleum products for Wanhua system,” noted Liao Zengtai, Chairman, Wanhua Chemical Group headquartered in the coastal city of Yantai in China’s northeastern Shandong province.

ADNOC L&S was formed in late 2016 from three ADNOC subsidiaries, ADNATCO, IRSHAD, and ESNAAD. The integration created synergies between shipping, marine services, offshore logistics, and onshore logistics to create the largest integrated shipping and maritime logistics company in the GCC. ADNOC L&S provides safe, reliable and cost-competitive maritime and logistics solutions to ADNOC Group companies and to more than 100 global customers.

Last year, ADNOC L&S transported over 20mn metric tonnes of various oil & gas products and dry bulk commodities.

SEPTEMBER 2020 7

CSP Abu Dhabi Terminal launches new direct services to Europe and Indian Subcontinent n CSP Abu Dhabi Terminal, the first overseas greenfield project of COSCO Shipping Ports Limited (CSP), recently announced the start of a direct, weekly service to several ports across Europe and the Indian Subcontinent.

Operating from Abu Dhabi Ports’ flagship deep-water port, Khalifa Port, where the terminal was established as part of a 35year agreement with CSP, and serving as a regional base for COSCO Shipping Ports’ global network of 37 ports, the new direct service will be served by a fleet of eight vessels on rotation, ranging in capacity between 10,000 to 13,000 TEU. Direct exports from Abu Dhabi to the ports of Rotterdam,

Hamburg, London, Antwerp, and Le Havre, will consist primarily of polymers while returning vessels will carry a mix of general and project cargo imports. The ports

of Karachi, Nhava Sheva, and Mundra will also benefit from the new service.

“More than a year on since CSP Abu Dhabi Terminal

officially launched, we are now well-positioned to bring our direct service offering to a global audience,” commented Naser Al Busaeedi, Deputy CEO, CSP Abu Dhabi Terminal.

“This new dedicated service marks an important strategic step in Abu Dhabi Ports’ vision to transform Khalifa Port’s end-to-end logistics capability,” remarked Mohamed Eidha Tannaf Al Menhali, Acting Director, Khalifa Port.

The direct services are expected to lend additional support to customers across the region and clients of the Khalifa Industrial Zone Abu Dhabi (KIZAD), providing faster transit and competitive rates for their import and export activities.

JAFZA records 10.6% hike in retail and e-Commerce business n Jebel Ali Free Zone (JAFZA)

has recently recorded 10.6% growth in the retail and e-commerce sector with a total trade value of AED 37.6bn (US$ 10.25bn) despite the sudden challenges facing both regional and global economy in recent times.

More than 1000 companies from 96 countries play a pivotal role in JAFZA’s Retail and General Trading sector, with the free zone’s unparalleled infrastructure making it the ideal location for companies to set up and operate.

Bringing together components needed to create true multimodal logistics connectivity underscores Dubai’s long-term commitment to facilitating the growth and development of regional and global commerce.

“The e-commerce business 8 SEPTEMBER 2020

sector was issued the highest number of licenses in the UAE, during May 2020. The first five months of the year saw a 300 per cent increase in consumer demand for e-commerce services,” commented Mohammed Al Muallem, CEO & Managing Director, DP World,

UAE Region and CEO, JAFZA. In addition to the flexibility and trade facilitation under one single window ‘Dubai Trade’, JAFZA offers a tax-free business environment with reputable regulatory bodies. It also allows existing business owners to apply for additional

licenses, making them dual business license owners.

JAFZA recently announced the ‘JAFZA Customer Support Initiative’ with a 50%-70% reduction of registration, licensing and related administration functions fees in JAFZA as well as for new investors.

Honeywell and UAE’s Strata Manufacturing attain production of one million N95 masks n Honeywell and Mubadala Investment Company’s wholly-owned subsidiary, Strata Manufacturing, today reached the manufacturing landmark of producing one million N95 masks in Strata’s Al Ain facility.

The collaboration is providing critical personal protective equipment (PPE) for the UAE’s front line health workers, while transforming the country into an international exporter of respirator masks to help limit the spread of Covid-19 around the world.

Since opening, the operation has been ramping up to full capacity production and is on track to reach its annual target of producing over 30 million masks. A combined Honeywell and Strata workforce of 70 has increased daily production of PPE to meet growing national requirements as well as support international needs in the future.

“Our valued, long-term partnership with Strata, coupled with our expertise in producing worker safety technologies, has enabled us to come together quickly to provide a critical PPE solution for medical

Honeywell and Strata Manufacturing reach production milestone of one million N95 masks in the UAE. professionals and the UAE community,” affirmed Miroslav Kafedzhiev, VP and GM, Honeywell Safety and Productivity Solutions, ME, Russia, Turkey and Africa.

“This milestone marks the first of many to come as we take an active role in transforming the UAE into an international exporter of much-needed safety equipment,” asserted Ismail Ali Abdulla,

CEO, Strata.

The collaboration between Honeywell and Mubadala is part of Mubadala’s #WeAreDedicated campaign, a recently launched group-wide response to the Covid-19 pandemic and its efforts to coordinate initiatives across its business platforms and assets to support communities locally and internationally.

Bahri inks agreement with Tabadul to implement Fasah Pay detailed or combined invoices for specific customers; electronic payment of bills an agreement with Tabadul for the raised among other functions. implementation of Fasah Pay. The integration will facilitate and One of a collection of electronic accelerate billing and payment processes, solutions offered on the Fasah platform, as well as manage and control payments Fasah Pay enables the business sector to ensure the continuity of import and within the logistics industry to create and export activities in an efficient and effective raise invoices for customers that can be manner. paid via a Sadad number.

“The agreement is an important step The agreement was signed during a for us, especially in light of Saudi Arabia’s virtual ceremony in the presence of Eng. movement towards digital transformation Abdullah Aldubaikhi, CEO, Bahri, and as outlined in Saudi Vision 2030,” Abdulaziz Alshamsi, CEO, Tabadul, together commented Engr. Aldubaikhi. with senior officials from both parties.

Abdullah Aldubaikhi, CEO, Bahri.

“Through this service, we look forward The agreement stipulates the provision to bringing added value to our partner, Bahri, by improving of a special control panel for Bahri users to access a series of quality, developing performance, increasing workflow efficiency, online features through the Fasah platform, including access to and speeding up daily work mechanisms,” remarked Alshamsi. all previous and upcoming transactions; the ability to download

n Saudi Arabia’s Bahri recently signed

SEPTEMBER 2020 9

Blue Yonder acquires Yantriks to deliver dynamic commerce n Blue Yonder has recently confirmed its acquisition of Yantriks, a SaaS provider of commerce and fulfilment microservices. This acquisition combines real-time transactional systems with supply chain planning, forecasting and fulfilment solutions to power modern commerce.

With this combined offering, companies can integrate all their supply chain assets to deliver a differentiated experience for their customers right at the beginning of the shopping process.

“Companies, more so than ever before, are seeking to deliver products to customers with unprecedented velocity, at promised delivery times, with optimized costs through complete plan-to-order-to-fulfilment alignment,” commented Girish Rishi, CEO, Blue Yonder.

“The supply chain, its capabilities, and the ability to promise and deliver customerfacing fulfilment strategies in real-time, is the differentiator enabling B2B and B2C companies to adapt, evolve, and succeed,” commented “Eugene Amigud, Founder, Yantriks.

Saudia Cargo adds Shanghai to network, expands scheduled flights n Saudia Cargo has expanded its robust

cargo network with the addition of Shanghai station to its flight schedules which commenced in mid-August 2020.

Saudia Cargo now operates two flights a week, Saturdays and Tuesdays, originating from Riyadh’s King Khalid International Airport and Jeddah’s King Abdulaziz International Airport.

Using charter flights booked by Saudia Cargo clients, the company has so far transported over two million kilograms of medical and pharmaceutical supplies required for facing the Covid-19 pandemic, in addition to other millions of other life-saving cargoes needed at the height of the pandemic.

According to Omar Hariri, CEO, Saudia Cargo, the carrier took proactive and practical steps to ensure the continuity of cargo operation to the Kingdom through non-stop charter flights despite the challenges the pandemic posed.

The Kingdom’s official carrier, he added, operated 29 unscheduled allcargo flights from Shanghai International Airport to the Kingdom to meet the 10 SEPTEMBER 2020

growing demand for cargo.

“Saudia Cargo’s high-level flexible schedules enabled it to respond swiftly to the increasing demand for cargo during the suspension of flights. We enhanced the charter flight services while our teams conducted an in-depth analysis of markets and order rates, which helped in the decision-making process for the network,” affirmed Hariri.

In July, Saudia Cargo operated over 1,500 flights, of which 500 were done using passenger aircraft dedicated for international cargo operations. Saudia Cargo transported 75,000 tons of lifesaving cargo including medicines and medical equipment to the Kingdom from March to June 2020, in support of the Kingdom’s health efforts towards fighting the pandemic.

AP Moller-Maersk reports strong performance in Q2-2020 despite pandemic impact

AP Moller-Maersk launches Maersk Flow

Soren Skou, CEO, Maersk Group

n In Q2-2020, AP Moller-Maersk improved profitability

across all businesses through agile capacity deployment, cost mitigation initiatives and adaption to changed customer needs. The earnings improvement was achieved despite the sharp drop in global volumes following the Covid-19 crisis, the company said in a press statement.

“As expected, the second quarter was materially impacted by Covid-19 and our focus remained on protecting our employees from the virus, serving our customers by keeping our global network of ships sailing and our ports, warehouses and inland transportation networks operating,” affirmed Søren Skou, CEO, AP Moller–Maersk.

Earnings before interest, tax, depreciation and amortization (EBITDA) improved to US$ 1.7bn. The EBITDA margin increased from 14.1% in Q2-2019 to 18.9% this corresponding quarter.

Revenue decreased by 6.5% to USD 9bn, driven by a volume decrease of 16% in Ocean and 14% in gateway terminals. In Ocean, the lower volumes were partly offset by agile capacity deployment of the global network leading to lower costs, together with lower fuel prices and higher freight rates.

In Logistics and Services, profitability increased through cost measures, favorable airfreight contribution and the integration of Performance Team, while Terminals & Towage showed their resilience by compensating lower volumes through cost measures.

The outlook and guidance for 2020 is subject to significant uncertainties related to the pandemic and does not take into consideration a material second lockdown phase. The guidance is also subject to uncertainties related to freight rates, bunker prices and other external factors.

n To further assist small and medium sized businesses with the complexity of managing their supply chains, Maersk is launching Maersk Flow - a digital platform which provides customers and their partners with everything they need to take control of their supply chain, from factory to market.

The new platform strengthens the company’s position as global integrator of container logistics helping small and medium sized customers to connect and simplify their supply chains, a company press communiqué indicated.

The solution enables transparency in critical supply chain processes and ensures that the flow of goods and documents is executed as planned. It also reduces manual work and costly mistakes, while empowering logistics professionals with all the current and historical data they need to sustainably improve their supply chain, the press note continued.

“Maersk Flow will give these customers a digital supply chain management tool that is designed specifically for their needs. Maersk Flow will allow our customers to significantly improve their supply chain performance with less time and effort,” affirmed Martin Holme, Global Head of SCM & E-commerce Logistics, AP Moller-Maersk.

The daily life of small and medium sized businesses is increasingly global, complex and fast-paced. Every day thousands of products are moving through the supply chain, on multiple carriers, coming from and reaching many supply chain partners and customers. With Maersk Flow these companies will be able to take control of their supply chains, the press release noted.

Maersk Flow further extends Maersk’s customer reach and strengthens the company’s position as an industry leader in digital solutions, the press statement concluded.

SEPTEMBER 2020 11

MFC Cargo Container Concepts supports CargoGulf expansion n Leading Non-Vessel Operating Common Carrier (NVOCC), CargoGulf, has signed an agreement with MFC Cargo Container Concepts, a division of Modern Freight Company, to lease their containers to support its continued expansion.

Under the contract, CargoGulf will boost its number of containers by over 400 TEUs to facilitate the NVOCC’s growth in the Arabian Gulf and Indian Subcontinent markets.

“Working with a large and strong container provider like MFC Cargo Container Concepts allows us to respond quickly to market demands due to their proximity to our largest market,” affirmed Hans-Henrik Nielsen, Global Director, CargoGulf.

MFC Cargo Container Concepts has been operating one of the largest independent container depots near Jebel Ali Port for the past 25 years. It is a trusted source for the sales, leasing and repair of thousands of containers yearly. The depot is located on a 30,000sqm dedicated plot

Laurance Langdon, GM, Modern Freight Company, and Hanshenrik Nielsen, Global Development Director, CargoGulf, at the signing ceremony. and can store 7,000 TEUs at any one time, a company press release indicated.

“MFC Cargo Container Concepts works with some of the top names in the industry on their container requirements. We are

excited to partner with CargoGulf to provide them with high quality containers to help drive their business growth,” noted Laurance Langdon, General Manager, Modern Freight Company.

Trukkin launches operations in Pakistan n Trukkin, the techno-logistics company

headquartered in Dubai, UAE has announced the launch of its operations in Pakistan.

Trukkin is set to revolutionize the transportation industry in Pakistan with its world-class IoT-enabled infrastructure, a corporate press communiqué indicated.

Trukkin solves the inherent problems of the transportation industry by providing a platform for shippers, transporters, brokers and truck drivers in one seamless, integrated platform. Trukkin simplifies payments, standardizes documentation and waybills, and helps in increased profits for everyone involved.

The transportation industry in Pakistan has been growing at a CAGR of over 18% since 2017 and is valued at over US$ 35bn.

“Today’s launch of Trukkin in Pakistan is the beginning of a new movement that will completely revolutionize the way the transportation industry functions.” said Janardan Dalmia, Founder and CEO, Trukkin.

12 SEPTEMBER 2020

Janardan Dalmia Founder & CEO, Trukkin.

Trukkin empowers shippers by helping them choose the right truck for their load through their intuitive interface. This helps them to reduce shipping costs and reduce incidents of theft and fraud through Trukkin’s verified pool of drivers and transporters.

Truck drivers get access to Trukkin’s innovative software that helps them concentrate on the drive while guiding them to the nearest pit stops, fueling

stations and service depots en route.

They also get paid on time through Trukkin’s revolutionary payment systems, reducing stress and increasing productivity and focus on the road.

Trukkin aims to be the leading transportation player in Pakistan, empowering and enabling every entity involved in the transportation business to reap the benefits of efficiency, transparency and reliability.

DP World’s subsidiary acquires three entities of India’s Transworld Group n Dubai-based port operations major DP World has bought three units of India-headquartered Transworld Group promoted by local businessman Ramesh Ramakrishnan.

DP World’s subsidiary Unifeeder Group has acquired the units. These include Transworld Feeders FZCO and Transworld Feeders Pvt Ltd (the containerised Indian coastal and export-import feeder operations of Shreyas Shipping and Logistics Ltd, excluding vessels and bulk operations).

Avana Logistek Ltd (including its subsidiary Avana Global FZCO) is also a part of the deal, Mumbai-listed Shreyas Shipping said in a filing. DP World will pay a total of US$ 48.7mn (IRS 3640mn) for the deal, of which Shreyas Shipping will get US$27.7mn (IRS 2070mn).

Transworld Feeders FZCO and Avana Global FZCO are independent feeder and

NVOCC (non-vessel operating common carriers) operators, offering container feedering services and regional trade solutions connecting a wide range of ports in West Asia, subcontinent and Far East, Shreyas Shipping said.

“These acquisitions give us complete coverage in fast-growing markets between

East Africa, Gulf and the wider Indian subcontinent,” remarked Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World. The central hub port at Jebel Ali (UAE) plays a pivotal role for a large part of the services, the company press release added. Collectively, the companies have a capacity of 1.2 million TEU.

ADAFZ reports a 109% increase in registered companies in H1-2020 n Abu Dhabi Airports Free Zone (ADAFZ), a wholly owned subsidiary of Abu Dhabi Airports, has recorded a 109% increase in the number of companies registering with the free zone authority in the first half of 2020, as compared to the corresponding period in 2019.

ADAFZ has also welcomed two major international companies, SMSA Express and Honeywell, to its portfolio.

“Through its work, ADAFZ helps to supplement the comprehensive stimulus packages implemented by Abu Dhabi’s leadership, and ensures that international companies can continue to have a robust and reliable partner in the Emirate,” commented Hashim Al Hashmi, CEO, Abu Dhabi Airports.

“Our investments have proven particularly prudent during the current global pandemic, with our enhanced air cargo and freight transport capabilities supporting the successful operation of the health, food and beverage, and e-commerce sectors,” remarked Adel Al Taheri, Head of Property Management and Leasing, ADAFZ. ADAFZ has reported in its 2020 bi-annual results that the most significant portion of companies signing agreements with ADAFZ come from the aviation, e-commerce, and healthcare sectors.

In addition, ADAFZ has also welcomed companies based in both Europe and the Middle East in the ICT, logistics, pharmaceutical, and consultancy management sectors.

SEPTEMBER 2020 13

Dubai Trade partners with Global Chain Academy

Hussain Alblooshi, COO, Dubai Trade.

n As e-learning platforms gain more popularity in the UAE, Dubai Trade, in association with Supply Chain Academy, has primed the deployment of its new e-Learning Platform, a next-generation initiative that is powered with simulation modules for every course.

On completion, the modules will present the aspirant with international accreditation and certification by the most reputed, Supply Chain Academy. Accredited training content will be provided by the International Federation of Purchasing and Supply Management (IFPSM).

The E-Learning Platform will benefit more than 180,000 companies registered on Dubai Trade Portal.

The new online learning platform offers an advanced visual and instructional design based on the principles of the Cognitive Load Theory (CLT), and is open to supply chain professionals seeking to further develop their skills.

“For Dubai Trade, the new E-Learning Platform for supply chain training is an investment in our future. We believe that the secret to mastering a complex skill-set demanded by the industry lies in the adoption of simplicity in teaching techniques,” commented Hussain Alblooshi, COO, Dubai Trade.

“Our training solutions benefit supply chain teams around the world. We’re confident that we can expand our support to this region knowing we have a partnership that can continue to grow,” remarked Thomas Schmitt, Managing Director, Supply Chain Academy.

Dubai Trade aims at building a more interactive, engaging and active training platform for its learners in order to provide an experience equivalent or even better than classroom training courses or seminars, a press release concluded.

14 SEPTEMBER 2020

Bahrain awards US$ 1.7billion contracts in H1-2020 n Bahrain awarded 769 tenders in the first half of 2020 worth a

total of US$ 1.7bn according to new data released by Bahrain’s Tender Board, the country’s government procurement regulator.

The construction and engineering sector took the lion’s share of contracts in the first six months of the year, with awarded tenders totalling some US$ 588.3mn, emphasizing the Bahrain Government’s continued commitment to its extensive pipeline of infrastructure projects.

The construction and engineering sector was followed by the oil and gas sector; the materials and equipment sector; and then the services sector, which saw a total of US$ 416.3mn, US$ 292.6mn and US$ 202.4mn of awarded tenders respectively. The aviation sector brought up the rear, with awards worth US$ 172.2mn in the same period.

“Bahrain awarded a total of 47 public tenders worth a combined US$ 21.8mn to Small and Medium Enterprises SMEs as per the Cabinet decision to assign some public spending to the SME sector,” stressed Shaikh Nayef Bin Khalid Al Khalifa, Chairman of Tender Board.

In terms of the tender value, Tatweer Petroleum topped the list for the awarded tenders, worth a total of US$ 396.5mn followed by the Electricity and Water Authority with awarded bids worth some US$ 305.3mn. Tatweer Petroleum is responsible for all upstream operations in the Kingdom, including oil and gas exploration, development, and production activities.

Some of the key service projects relate to the Ministry of Housing, worth a combined US$ 238mn, as well as some US$ 297mn worth of awarded bids in the fields of sewage works, infrastructure and electricity and water services.

DP World to acquire majority stake in South Korea’s Unico Logistics n DP World has agreed to acquire a 60 per cent shareholding in South Korea’s UNICO Logistics Co. Ltd. The transaction, subject to regulatory clearances, is expected to close in Q4-2020, and represents another strategic step in DP World’s vision to build an integrated suite of service offerings that will connect directly with end-customers and beneficial cargo owners to remove inefficiencies in the supply chain and accelerate trade growth.

Established in 2002 by HJ Park, UNICO has a global footprint of 25 subsidiaries in 20 countries and is one of the largest independent NVOCC (Non-Vessel Operating Common Carrier) in South Korea.

UNICO is a multimodal transport specialist with strong market position in the fast-growing transcontinental rail freight market between East-Asia and Central-Asia and Russia, in particular on the strategically important Trans-Siberian Railway (TSR) and Trans China Railway (TCR).

The acquisition is in line with DP World’s global strategy to grow as a smart supply chain solutions provider and will provide a platform to drive synergies between UNICO and DP World operations in the Asia Pacific and European regions, while also continuing the expansion of logistics capabilities within DP World’s portfolio.

“By integrating Unico into our worldwide network we will be able to offer better service to our customers in South Korea and

beyond,” asserted Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.

“Being part of DP World will allow us to develop further from the Group’s deep relationship with end-customers and wide global network,” observed HJ Park, President and CEO, UNICO Logistics.

UAE’s courier market set to grow by 7.5% annually—Mordor Intelligence n The outlook for the UAE’s Courier, Express and Parcel (CEP)

market is bright, due to strong demand generated in the wake of the coronavirus outbreak across the globe, industry experts said.

The latest research data released by Mordor Intelligence, said that the CEP market in the UAE is expected to post a 7.5 per cent compound annual growth rate between 2020 and 2025.

Shailesh Dash, Chairman, Gulf Pinnacle Logistics (GPL), said that the CEP market is emerging as a strong segment after the outbreak of coronavirus.

“The CEP segment is growing steadily in the UAE, however strong growth in e-commerce and demand generated in the Covid-19 era bolstered its outlook in the region, which was valued at US$ 4.5bn in the region last year,” Dash stressed.

Referring to the latest research report by Technavio-a Londonbased Market Research Company, Dash said that the global CEP market will grow at a compound annual growth rate of five per cent during 2019 to 2023 to reach US$ 90.63bn. The Gulf CEP market will also grow in line with the international trend.

Najeeb Kabeer, Partner and MD, Century Express Courier Services, said that the UAE’s CEP market is ready to take the advantage of business opportunities arising in the wake of

e-commerce boom in the region.

“With the upsurge in e-commerce activity in the MENA region in general and the UAE and Saudi Arabia in particular, the prospects for the courier segment are extremely positive,” Kabeer observed.

Rodney Viegas, CEO, Abdul Muhsen Shipping and So Safe Logistics, noted that the UAE has developed advanced infrastructure for logistics industry in the region.

SEPTEMBER 2020 15

Green Petrochem announces expansion plan in Hamriyah Free Zone n Green Petrochem, one of the most conducive players in the oil industry across the UAE, has announced an expansion plan in the Hamriyah Free Zone to boost its storage capacity and meet the growing demand for its services.

Under the contract, the petrochemical company will lease a 200,000 sq. ft. plot of land to expand its facilities and respond to the increasing demand for its products.

The agreement was recently signed by Saud Salim Al Mazrouei, Director, HFZA, and Anish Vijapura, Managing Director, Green Petrochem, at the HFZA premises. A number of senior officials from both entities attended the event.

Green Petrochem said that the deal comes as part of its expansion strategy to augment its operations in the regional and international markets.

In addition to its main storage facility in the free zone, the company is looking

Saud Salim Al Mazrouie (R) and Anish Vijapura at the deal signing ceremony. to bolster its operations by establishing additional storage facilities and is targeting a future-storage capacity of a 150,000cbm.

“We are keen to provide our investors with various services of top-notch quality within an ideal environment that help them grow and thrive like never before

and achieve their ultimate business goals,” observed Al Mazrouie.

For his part, Vijapura emphasized that the deal builds on Petrochem’s strategic partnership with HFZA and opens up a new chapter of cooperation between the two organizations.

Turkish Cargo sets May 2020 record with 5% of total global air cargo volume

n According to the data announced for May by the WACD

(World Air Cargo Data), the international air cargo information provider, Turkish Cargo increased its market share to 5 percent in an industry where the global air cargo market has shrunk by 28.5 percent, resulting from the pandemic, the carrier revealed in a press statement.

During the course of such process, having provided service to 90 direct cargo destinations by means of its freighters with hightonnage capacity, Turkish Cargo made use of 32 wide-body airliners during such operations while it has performed air cargo operations to more than 60 destinations.

In the recent past Turkish Cargo has obtained the mandatory

16 SEPTEMBER 2020

‘CEIV Pharma’ certificate for its training, assessment and validation process, established by the International Air Transport Association (IATA).

The carrier accomplished the transportation of 21547 tonnes of medicine and approximately 7000 pieces of medical equipment between 01 February and 30 June 2020 and operated more than 1100 flights just in June alone by making use of its freighters and passenger aircraft.

Turkish Cargo has taken all hygiene measures for its operational personnel and taken the actions as required for providing masks and sanitizers, disinfectants and maintaining social distancing, and other measures, the press communiqué concluded.

Tristar breaks ground on construction of storage tanks for JAFZA Chemical Terminal n Tristar Group recently announced it has begun construction of 10 new storage tanks for its chemical terminal in Jebel Ali Free Zone (JAFZA) taken over from Shell in 2019.

The construction of the storage tanks is part of an agreement signed with Shell and JAFZA in 2018 which will see the storage capacity of the JAFZA chemical terminal increase from 5,505cbm to 25,000cbm. Under the terms of the agreement, Shell will remain a customer.

Construction of the new tanks began in April 2020 and will be completed by May 2021, creating jobs and contributing to the UAE’s economic recovery post pandemic.

“We are pleased to announce the commencement of our expansion and modernization program for the JAFZA chemical terminal. The upgraded facility will be a turnkey and fully integrated distribution center that has the ability to handle bulk imports and packed chemical products at high volumes,” affirmed Eugene Mayne, Group CEO, Tristar.

Other upgrades to the JAFZA chemical terminal that will be constructed in due course include a second loading gantry that can accommodate four road tankers simultaneously, a drumming line for flammable liquid, a 100-ton capacity weigh bridge and a twostory office building with a supervisory control and data acquisition (SCADA) control room.

Eugene Mayne, CEO, Tristar Group, (3rd left) during the turnover of the Chemical Terminal.

Tristar owns and operates an existing dangerous goods facility in JAFZA South Zone which houses a wide range of packed chemicals and petroleum products. The facility has a total warehouse capacity that is in excess of 15,000 pallet positions.

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)

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Web: www.tranzone.ae SEPTEMBER 2020 17

Aramex revenues surge 4% to AED 1,332mn in Q2-2020 FarEye Founding Team (L to R)- Gautam Kumar, Gaurav Srivastava, Kushal Nahata.

Bashar Obeid, CEO, Aramex

FarEye raises US$ 37.5mn in funding to expand its delivery logistics platform

n Aramex recently announced its financial results Q2-2020

n FarEye, a leading logistics SaaS platform for predictive

and H1-2020 ended 30 June 2020.

Aramex’s Q2-2020 revenues grew by 4% to AED 1,332mn, compared to AED 1,279mn in Q2-2019 driven mainly by a surge in e-commerce activities resulting from increased online shopping during Covid-19 related lockdowns.

Aramex’s Revenues in the H1-2020 increased by 1% to AED 2,528mn compared to AED 2,512mn in the corresponding period of 2019.

Net profit in Q2 declined 23% to AED 94.4mn, compared to AED 123mn in Q2-2019. Net profit was negatively impacted by the rise in unforeseen costs prompted by the global onslaught of the pandemic. Aramex’s net profit in the H1-2020 fell by 30% to AED 162mn, compared to AED 231mn in H1-2019.

“As a business, we are now operating in a higher cost environment which is adding pressure to our profitability margins. While some factors pushing costs higher may dissipate or normalize over time, such as sanitization costs, others may adjust higher for an extended period, such as line haul costs,” remarked Bashar Obeid, CEO, Aramex.

“Over the period, we remained focused on efficient and innovative problem solving to resolve several operational challenges while managing a 26% growth in overall Express both international and domestic shipment volumes,” commented Othman Aljeda, Acting COO and Regional CEO for Aramex in Europe, North America and Asia The Logistics & Supply Chain solutions business was unchanged year-on-year at AED 85mn. However, over the H1 period, it was up 6%, mainly owed to the increase in demand for those services from traditional retailers expanding into online sales to service changing customer behavior.

18 SEPTEMBER 2020

visibility recently announced that it has raised additional US$ 13mn as an extension to its Series D investment led

by The Fundamentum Partnership, the growth-capital fund for mid-stage technology companies in India.

The investment will accelerate FarEye’s global expansion to address the steepening digital curve for logistics transformation. The need is being further accelerated by enterprises and end consumers demanding a high level of transparency, faster and more convenient delivery experiences. There is also an increased need for flexible supply chains to meet these demands.

FarEye works with its enterprise customers to provide higher control on their supply chains and offer a superior delivery experience to their end customers. The company’s technology platform digitizes the way enterprises dispatch, execute, track, and optimize the movement of goods, enabling enterprises to lower logistics costs while responding to consumers’ needs.

“With a vision to make FarEye one of the most customercentric organizations globally, we aim to make every delivery delightful for the consumers,” asserted Kushal Nahata, CEO, FarEye. “FarEye has captured the pulse of this industry and has all the ingredients to head towards global leadership.

We are excited to partner with FarEye in its journey to create a global technology leader in the logistics space,” commented Sanjeev Aggarwal, Co-founder, Fundamentum.

FarEye’s recent success in Europe with marquee customers like the leading postal and logistics service company in Finland and a leading American e-commerce company among others has fueled its focus for rapid expansion in the region.

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COVER STORY—ACME

Reimagining and Redefining

Regional Intralogistics A progressive, home-grown, pioneering company with an extensive four and half-decade legacy in providing unique storage solutions and materials handling services in the UAE. Acme prides in its track record replete with proven extraordinary capabilities and accomplishments. Acme is now in the forefront, redefining the domain of intralogistics and systems integration and meeting the challenges of a new technocentric ecosystem with intelligent, comprehensive and speciallytailored warehouse automation solutions.

T

he origins of Acme go back to the mid seventies when entrepreneur Nambron Narayanan set up a specialized company to offer shelving and storage solutions and an exhaustive range of warehouse and logistics management requirements of its clients.

In 1989, the company attained a turning point in its product offerings with the inclusion of fluid sealing solutions such as gaskets and gland packing for the burgeoning oilfield and marine industry.

Another breakthrough was chronicled in 2002, when Acme set up a new division to foray into industrial automation and showcase a broad spectrum of pneumatic automation components in partnership with reputed and tested manufacturers.

Thereon, the company has grown from strength-to-strength, evolving at multiple stages and now becoming the powerhouse as a top systems integrator with solutions that enable and power innovation, added capabilities and efficiencies for manufacturers, retailers and logistics services provider in the Middle East region and in India.

In an exclusive, expansive interview with Global Supply Chain, Navin Narayan, Managing Director, Acme, gives the lowdown on the history of the company, its values, corporate successes, mission and addresses issues including current challenges wrought by the pandemic, expansion and growth strategy and his wider vision for the corporate future.

20 SEPTEMBER 2020

COVER STORY—ACME

SEPTEMBER 2020 21

COVER STORY—ACME

Global Supply Chain (GSC): Briefly, walk us through the Acme timeline since its inception?

Navin Narayan (NN): Acme is arguably the region’s largest full spectrum factory and warehouse automation solution provider. Our core focus is in the realm of intralogistics. We design, manufacture, install and commission a wide range of customized warehouse automation solutions including carton and tote handling solutions, pallet handling systems, mini-loads and AS/RS (automated storage & retrieval systems) stacker cranes as well as other state–of-the-art order-picking solutions.

In collaboration with our industry partners, we also bring in a wide variety of industry leading vertical storage and goods sortation solutions. Our solutions are designed to cater to the needs of FMCG manufacturers and distributors, fashion and retail, spare parts and accessories, pharmaceutical distributors, food and grocery retailers as well as e-commerce businesses in the region.

We also provide customized solutions for out-of-gauge and heavy goods such as transformers, piping or steel coils.

We do not believe that every project needs the latest robotic technology available in the market and we prefer to work with a consultative approach with our customer.

This helps us understand his pain points and develop solutions that are able to resolve these at the same time provide desired RoI as well as being designed to be flexible and future proof.

For our manufacturing customers, we provide a wide range of material handling systems as well as end of line solutions including robotic palletization and conveyor solutions.

GSC: Give us a sense of the size and scale of your current association with the logistics & supply chain industry in the Middle East?

NN: In 2020, Acme celebrated 45 years of supporting the logistics and supply chain industry in the Middle East. We were established in Dubai in 1975 with the vision of supporting the needs of the local logistics industry with manual shelving and racking solutions. As the industry evolved, so have we.

In 2019, anticipating the growing needs for automation regionally, we opened a manufacturing facility located within Jebel Ali Free Zone and we now manufacture a 22 SEPTEMBER 2020

. Established in Dubai in 1975, Acme celebrates 45 years in the Middle East with the vision of supporting the needs of the local logistics industry with manual shelving and racking solutions. complete range of conveyor systems, AS/ RS control systems as well other material handling systems.

We also design and manufacture customized factory automation solutions for a variety of industries in the region, Europe as well as the United States.

With over 80 employees, our Jebel Ali facility also houses our R&D facility where we develop a wide variety of innovative automation solutions that have been tailored to the regional market.

We have partnered with local universities to work together to upgrade local talent and prepare them for the next generation of intralogistics. With our base in Dubai, we are focused on being a driving force in the transformation of the intralogistics industry in the Middle East and India.

GSC: How is Acme currently faring and how does that compare with 2018? What is your outlook for the remainder of 2020?

NN: We started 2020 at a rather slow pace

COVER STORY—ACME

in comparison with 2018. However, with Covid-19 and the associated supply chain disruptions, we have seen a strong uptick in the need for warehouse automation.

The ‘new normal’ also signifies radical change in the way businesses look at their distribution centers. Organizations have begun to understand the need for their distribution centers to be agile, efficient as well as capable to adapt to the peaks and lows in demand.

The availability of inexpensive

manpower is no longer a given and industries have now started to focus on generating value from their distribution centers by improving their processes and rethinking their supply chain.

We see strong demand through 20202021 as the region invests in being self sufficient and the region increases investment into industrial growth.

GSC: What are your short and long-term expansion plans for the region?

NN: In the short term we intend to set up

an office in Saudi Arabia to support our Saudi customers with their life cycle service and maintenance needs.

With locally available trained service engineers as well as a well stocked spare parts facility we will be able to provide round the clock on-site service and maintenance as well as a quick response to any emergency repair and maintenance needs of our customers at the same service level that we provide at our home based in UAE.

SEPTEMBER 2020 23

COVER STORY—ACME

By end of 2020, we intend to open our sales and service office in Germany to bring us closer to our customers in EU. With this office, we would be able to boost our intralogistics components business in Europe.

GSC: What are the opportunities in store and challenges confronting Acme in the region going forward?

NN: With the pandemic and changes to the regional economy, there has been

24 SEPTEMBER 2020

considerable focus on industrialization in the region we see the tremendous potential for both factory as well as warehouse automation in the region.

Being based in Dubai, we at Acme understand the nuances and demands of the local industry. Solutions that are designed for Europe or highly populated regions in Asia do not necessarily provide the required RoI for regional business and a copy-paste approach to solving regional

intralogistics solutions does not work.

As customers ditch the traditional labour intensive and inflexible distribution centers of the past, we see that customers with vision and long term strategy investing in upgrading their logistics infrastructure to achieve higher accuracy in their process as well as long term cost effective operations.

GSC: How is the surge of E-commerce impacting your business?

NN: With the surge in Ecommerce, we are seeing a greater demand for agile warehouse technologies. As the industry is still in the early growth phase, we see a lot of demand for modular solutions that can be scaled as the business grows.

Businesses in competitive sectors such as grocery E-commerce are now turning to hyperlocal micro distribution solutions to meet the demands of customers. We have built a wide portfolio of solutions that cater to these needs and are now seeing a lot of requests for such solutions.

GSC: What trends do you foresee in intralogistics automation for the region?

NN: We see a growing emphasis in technology within the walls of an intralogistics facility in the region. This can include a well-implemented WMS, pick– by-voice-order picking solutions, sortation systems as well as integrated conveyors and AS/RS systems.

For small and medium sized organizations, simple solutions such as pick-by-voice-as well as modular vertical carousel and shuttle systems will be the first steps to improving efficiencies within their distribution centers.

These solutions provide for quick RoI and can be quickly adapted to grow with the business and can be implemented in a very short period of time with minimal change management.

As mentioned earlier, we are also seeing a lot of demand for micro distribution solutions that can be set up closer to the customers to reduce the last mile costs.

GSC: Acme is a privately held business. Do you plan to go public and separately do you have mergers or acquisitions in mind?

NN: At the moment our interest is to grow organically and to invest considerably in R & D to develop competitive and innovative solutions for the region. We believe we can do this with our own cash flow and do not need to tap the financial markets.

We have been able to attract amazing experienced talent from around the world

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NAFL, P.O.Box: 60944, Dubai, United Arab Emirates

NAFL National Association of Freight & Logistics

P.O. Box 60944 Dubai, United Arab Emirates Tel: +971 4 3431112, Fax: +971 4 3431105, Mobile: 00971507802631 E-mail: shankar@nafl.ae www.nafl.ae

COVER STORY—ACME

that has helped us improve our capabilities in a very short period of time.

We are always on the lookout for technology partners that will help us in bringing the latest technologies to the region and in the long term would look at possible mergers or acquisitions to enter new markets.

GSC: What have been some of your recent major accomplishments in the region?

Please elaborate?

NN: We have been operating in the region for over 45 years, however in the last five years, we have significantly grown our solution delivery portfolio and significantly helped our customer base increase the value derived from their distribution center operations.

We have assisted the largest sports goods retailer in the region with a put-to-light solution that enables them to sort over 30,000 units of apparel and footwear for distribution on a daily basis.

We have commissioned a state–of-theart distribution center comprising of over 40,000 pallet locations for a large Saudi based Dairy company in Jeddah. With an AS/RS high density pallet solution, automated truck unloading and WMS storage solution, the automated facility is able to unload 32 pallets from their

26 SEPTEMBER 2020

customized trucks into the automated warehouse in under three minutes. The AS/ RS system is able to process approximately 160 pallets per hour with minimal human intervention.

We have also commissioned a stateof-the-art automated distribution center for a major fashion retailer in Kuwait.

Based on the successful implementation of the Kuwait facility, we have now been commissioned to implement two more large automation projects for the client in Jeddah and Riyadh.

This year, we have also been awarded a project to implement a high-speed sortation solution for the region’s largest supermarket chain. Once completed the push tray sorter solution from our partners Optimus Sorters will be able to sort over 8000 trays of fruits and vegetables per hour, destined to various store shelves in the UAE. During Covid-19, we were awarded a project by a Humanitarian Organization to set up a semi-automated kitting operation to help their partners operate within the facility to quickly prepare humanitarian aid kits in minimum time in order to assist in disaster relief around the world.

We are also currently working on a robotic end-of-line palletisation solution

for a leading lubricant blending plant in Sharjah.

Additionally, we are implementing a range of factory automation projects in Turkey and USA and shall commission them by the end of the year.

GSC: How is ACME’s distribution partnership with Kardex Remstar faring?

NN: One of the missing parts in our portfolio was modular warehouse automation solutions that are scalable.

Previously, both SME as well as large DC operators in the region looking for easy deployment and an RoI period as short as one year could never dream of implementing warehouse automation or dense storage solutions.

However, with our partnership with Kardex Remstar, we are able to bring highly modular, scalable, state–of-theart automation solutions into small and medium distribution centers, growing e-commerce operations as well as pharmaceutical and grocery microdistribution centres.

The solutions from Kardex are quick and easy to deploy in both existing warehouse

COVER STORY—ACME

facilities as well as greenfield locations.

Another wonderful advantage of Kardex solutions is that change management with regard to staff retraining is a breeze. Last but not least, we can demonstrate RoI periods of one to two years and tangible cost benefit.

GSC: As Managing Director and Group supremo, what is your long-term vision for Acme? Where do you hope to take the company hereon?

NN: My long term vision for Acme is to be a global warehouse technology innovator. We believe that there is an unfulfilled market need for affordable, scalable intralogistics automation technologies that needs to be catered to.

Our goal is to be a market leader in intralogistics within our focus market of the MENA and India regions by delivering best in class solutions that can help businesses achieve true value for their stakeholders.

GSC: Briefly, what are key takeaways and broad observations of the fallout of the ongoing Covid-19 pandemic for Acme?

NN: The pandemic has shaken everyone from the comfort zone that we have been operating in. A lot of variables were previously taken for granted such as easy availability of manpower, a global connected supply chain network, a need for brick and mortar stores as well higher operating profits.

These have been flipped upside down.

Now, there is a greater need for automation, countries have begun to move on the path of self reliance and e-commerce has been given a huge boost. As operating margins thin, all organizations are looking at optimizing their business processes. This is the ‘new normal’ and I presume there is no organization that has not been affected by the fallout of the pandemic.

GSC: How is the onset of the pandemic impacting your local and regional operations?

NN: The pandemic did disrupt a part of our supply chain in the first few weeks.

However, this has now been overcome. We still have some flight restrictions that limit our on-site teams from being on site for maintenance and installation; however we hope these are lifted soon to help us get back on site in countries outside the UAE. GSC: How much of your professional work environment / ecosystem in the operations realm has changed as a result of the Covid-19 virus onslaught?

NN: Covid-19 has not significantly changed the way we operate. Yes, we have implemented hygiene and safety regulations at our various facilities as per local guidelines, however we have always had a progressive and open work from home approach prior to the lockdown and hence not much has changed in that context.

We are facing delays in deploying our implementation team to other locations within the GCC due to the flight restrictions but with the progress being made in fighting this pandemic, this should change by the time we go to print. Restrictions that were lifted on video conference solutions in the region have greatly reduced the need to travel globally to conduct meetings. This has been a great enabler to the ease of doing business for us.

GSC: How have your priorities been

rearranged and what kind of new demands / pressures are being put on your business now?

NN: While designing new distribution centers and reimagining warehouse operations of our customers, we usually spend a considerable amount of time at their existing logistics facilities to better understand their operations.

With the restrictions on travel and access restrictions brought about by the pandemic, we have had to adjust to the limitations in place and restrict ourselves to web meetings as well as site images and videos to understand current operations. This is definitely a slower way of information gathering, however we presume this would be a short term situation.

GSC: How can the Logistics Services Providers such as Acme better contribute SEPTEMBER 2020 27

COVER STORY—ACME

We have recently helped one of the world’s largest humanitarian relief organizations speed up their order picking and kitting facility to cater to the spike in demand for pharmaceutical and protective supplies.

to ensure more streamlined and speedy transportation and availability of badly needed pharma and protective supplies?

NN: We have been actively working with local humanitarian agencies and have recently commissioned a facility to help one of the world’s largest humanitarian relief organizations speed up their order picking and kitting facility to cater to the spike in demand for pharmaceutical and protective supplies.

Having a local design and manufacturing facility assisted us to deliver and commission the solution in record time.

We are also in talks with pharmaceutical and hygiene products manufacturers in the region to help streamline and scale up their logistics operations to cater to the needs of the industry.

GSC: What measures has ACME taken to 28 SEPTEMBER 2020

better equip its team and maintain a safe environment for the employees?

NN: Back in 2015, Acme had invested in IT as well as telephony infrastructure that made it possible for our back office as well as our design team to work remotely.

Hence, it was easy to embrace the work from home requirements that came into force due to the pandemic.

On the shop floor we were able to quickly implement the required social distancing as well as hygiene protocols in line with local regulations and were able to continue operations without any loss in efficiency.

GSC: Do you see ‘green shoots’ emerging and how is the industry adapting to the changing landscape?

NN: With the pandemic and associated economic changes, we see regional leadership focusing on industries that are

beyond construction and oil and gas. With the need to be self-sufficient there is now considerable investment in industry and technology. We are seeing a lot of investment being done in pharmaceutical, FMCG, food as well as e-commerce. This move definitely benefits businesses like Acme.

Local industries are now focusing on improving operational efficiencies by implementing process re-engineering, technology and plugging leaks that affect the bottom line.

GSC: How important is technology in the new normal scheme of things and how is it enabling and empowering operations at Acme?

NN: The ‘new normal’ has laid a great deal of emphasis on technology. We have developed the skills to provide remote maintenance support as well as commissioning assistance from our base in Jebel Ali. Our teams have also adjusted to collaborating in design and development and working remotely. This has put us in a positive position wherein we are able to scale up operations even if we are not physically or geographically close.

GSC: How is Acme’s local physical presence an advantage for your customers in the region?

NN: During this pandemic, we have realized the benefit of having experienced local presence in the region, both when it comes to quick turnaround for design concepts as well as when it comes to giving peace of mind to our customers that our maintenance team is just a call away. I believe that customers understand our commitment to the region, and they see a long term partner in us. n

TEMPERATURE MONITOR

Intelligent Monitoring and Temperature Measuring Machine ensures safety for all Proven technology makes the R1 Monitor a reliable, contactless contrivance for accurate temperature screenings

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he Intelligent monitoring Temperature detection machine uses the principle of non-contact infrared thermal imaging which detects an abnormal temperature of passengers alerting the driver or monitor of unwell personnel. This allows the avoidance of cross-contamination where immediate actions can be taken to isolate and take preventive measures.

Prevention is the cure, the system detects immediate temperature measurements, mask detection, real-time recording of personnel image and storage of data.

If a passengers temperature is abnormal an alarm is triggered alerting all to take preventive measures.

The system supports automatic generation of visual data reports stored in the cloud, which facilitates unified management of all boarding passengers, enabling the trace of the epidemic.

58 SEPTEMBER 2020

Advantage features include: • Contactless temperature detection • Real-time video surveillance • Real-time monitoring screen and thermal imaging screen • Mask detection • Intelligent voice prompts and alarms • Face detection and snapshot • GPS / BeiDou dual-mode positioning • 4G full Netcom wireless communication • Support Ministry Standard Platform • Support remote system upgrade • Support 1080P, H.265 format • Double TF card data storage

Features: • Face Detect & Photo • 4G/wireless • Touchless Detect • Voice alert & alarm • H.265code/1080p • Accurate to 0.3C (0.54F) • Double TF card for Data

School buses Public Transport Labour Transport buses Commercial Transport

Prevention Monitoring According to Mohammad Sulaiman, FounderCEO, GCEC, it is imperative that buses and mass transportation vehicles have dependable and durable monitors that can swiftly and reliably determine the body temperatures of the passengers on board, a rise in the body temperature is an indication of the virus being present.

Governments in the region and indeed globally have been advocating and championing the cause of students heading to school following the commencement of the new academic year and the travelling public at large with adequate safety precautions and temperature-determining devices. n

Mohammad Sulaiman, Founder-CEO, GCEC SEPTEMBER 2020 59

THE NEXT SUPPLY CHAIN FRONTIER

Shipwaves joins the Maersk-IBM developed TradeLens Platform Asia’s first digital freight forwarder will leverage TradeLens solutions to accelerate secure digitization in ocean logistics

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ounded in 2015 and with offices in the UAE and India, Shipwaves, Asia’s first industry-leading digital freight forwarder, has recently joined the newly launched Maersk-IBM developed TradeLens platform.

TradeLens is an open and neutral industry platform underpinned by blockchain technology, supported by major players across the global shipping industry. The platform promotes the efficient, transparent, and secure exchange of information in order to foster greater collaboration and trust across the global supply chain.

The association between the frontrunning blockchain-powered supply chain solution and digital forwarder is aimed at accelerating the digitization of the ocean logistics space, especially in India and the Middle-East.

The intuitive platform seamlessly connects shippers, carriers, and their partners to integrate and collaborate across 32 SEPTEMBER 2020

the entire supply chain gambit.

The TradeLens blockchain solution provides controlled, authorized access to secure and immutable transportation documents while bringing together stakeholders such as shipping carriers, ports, customs offices, and other players and stakeholders in the ecosystem through its platform.

Enhancing efficiency

Through this linkage, Shipwaves will be able to provide timely end-to-end supply chain visibility, secured sharing of digital shipping documents, and data directly from partners. This will enable the forwarder to improve efficiency and decrease operational costs by a significant margin.

Additionally, the smart-contract based workflows will automate and digitize multi-party interactions, which will result in improved efficiency.

“With Shipwaves collaborating with TradeLens, we have an important supply chain enabler furthering our joint desire of removing manual tasks and enabling digitized workflows in the logistics industry,” asserted Bimal Kanal, Head of TradeLens, South Asia.

Milestone

“Our association with TradeLens marks a significant milestone which will enable us to digitize our customers’ operations and lead them into the blockchain era of global trade. While we were one of the early

innovators in the digital freight forwarding space, the ongoing pandemic taught us that, this alone is not enough. One also needs collaboration to enhance competence and expand capabilities,” affirmed Sajid Mohammed, COO, Shipwaves.

“Our SaaS—software as a service products helped us gain deep insights into our customer’s IT Landscape and how they interact with their logistics teams and key players. We believe that the TradeLens platform will truly elevate our value proposition, allowing us to interconnect with shippers, carriers & other stakeholders.

The important factor here is the use of innovative technology that ensures security, trust and transparency,” he added.

Shipwaves was conceived as a logistics company fully built around the needs of shippers, and delivers solutions through technology and logistics expertise. It helps shippers around the world to plan, book, and manage their shipments by offering instant rates, quick quotes, online booking and real-time visibility, whilst offering value-added services like customs clearance, marine insurance, and advanced data analytics to lower freight costs, explained a company press communique.

Additionally, Shipwaves provides SaaS offerings to global Enterprise customers to automate their end-to-end shipping processes. It uses the latest technologies, automation tools, and predictive analytics to provide its customers with visibility and control over the entire shipment lifecycle.n

UD TRUCKS--CSR

UD Trucks, Bridgestone and Al Masaood officials pose for a joint picture.

UD Trucks, Bridgestone and Al Masaood join forces to help truck drivers fight pandemic

UD Trucks has taken a bold initiative as part of their Corporate Social Responsibility strategy to enforce health protocols and ensure the safety and physical well being of truck drivers

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apanese truck manufacturer UD Trucks and part of Volvo Group; the world’s largest tire and rubber company Bridgestone, and Abu Dhabi’s conglomerate Al Masaood Group, have joined forces for a brand new Corporate Social Responsibility (CSR) campaign aimed at educating truck drivers about the importance of health and hygiene practices in the battle against the spread of Covid-19.

‘Serving our Heroes’ is a CSR initiative that sought to provide local truck drivers with the essential safety tools needed to avoid any virus propagation. As part of the campaign, the partnering organizations, in cooperation with Abu Dhabi Ports, distributed safety kits to over 900 truck drivers across various truck rest areas in the emirate of Abu Dhabi, including Khalifa Port.

The recently launched campaign looked towards paying tribute to the important role that truck drivers play in our lives-devoting long hours to ensure the delivery of goods and commodities across the country even in the midst of the Covid-19 pandemic.

The distributed packages contained essential items such as N95 masks, gloves, hand sanitizers and wet wipes to protect truck drivers during these times.

Logistics—Society’s lifeblood

“UD Trucks understands the important role played by all truck drivers in the country.

Every year, around 3,000 HD & MD trucks are sold in the UAE, with the heavy-duty trucks alone making up 6% of the total road traffic (cars and light commercial vehicles included). In the UAE, logistics is the lifeblood of our society,” affirmed Mourad Hedna, President, UD Trucks Middle East.

“As the world continues to face these extraordinary times, these brave men are on the road every day to make sure that basic goods are delivered on time. We believe that this campaign is an important initiative that can help serve our community and honour the front-liners who were continuously on the roads even when cities were locked down,” he continued.

“The ‘Serving our Heroes’ CSR campaign reflects our belief in serving society with superior quality. For many years now,

Bridgestone has been an advocate for health and safety--a value that is highlighted in the quality of our products. This is a highly significant campaign as it helps in ensuring that truck drivers are aware of their health condition and can take adequate preventative measures to ensure their own well-being,” asserted Stefano Sanchini, Regional Managing Director, Bridgestone.

Serving our heroes

“In this period of unprecedented global disruption, Al Masaood is endeavouring to play its part to support the community in any way and assure business continuity as a key pillar. The launch of the ‘Serving our Heroes’ campaign, demonstrates our recognition of the key contributions of truck drivers by making them aware about the significance of health and hygiene practices in the move to curb the spread of Covid-19,” observed Ahmed Rahma Al Masaood, Vice Chairman, Al Masaood.

“This CSR initiative reflects our continuing support for the government’s efforts to preserve the welfare of the community,” he concluded. n SEPTEMBER 2020 33

INTRALOGISTICS

Following the implementation of fully automated and data-driven intralogistics system, the bottled water supplier has benefited with double production, storage capacity and reduced labour costs.

Swisslog completes major automated storage and retrieval processes for Mai Dubai

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lobal warehouse automation specialist, Swisslog recently announced the successful installation and implementation of a new fully-automated and retrieval solution for Mai Dubai, a leading Dubai-based bottled drinking water company.

The move is part of Mai Dubai’s ongoing expansion initiative and involves the implementation of a fully automated and data driven intralogistics system that is in line with industrial revolution 4.0.

As part of an order valued over Euro 20mn (US$23.81mn), Swisslog planned and implemented a fully automated system based on intelligent software in the context of big data. The major expansion project included planning and implementing a six-aisle automated high-bay warehouse for raw material and packaging materials as well as -only a few hundred meters away- a high-bay warehouse with 17,560 pallet locations for finished goods with 10 aisles.

Advantage Swisslog

The use of Swisslog’s fully automated storage and retrieval solution will help drive key benefits and advantages for Mai Dubai, including a significant reduction in labour costs, improved production and enhanced storage efficiencies. The installation proves to be both timely and strategic - expecting to sustain Mai Dubai’s continuing growth since its inception in December 2012.

The company, which is already widely recognized for its excellent reputation, is the official bottled water partner of Emirates Airlines and has also become a household brand name in Oman, Bahrain, and 13 other countries across Asia, Europe and Africa.

“Combining Swisslog’s SynQ WMS solution, Mai Dubai were able to modernize their warehousing, distribution and fulfilment operations by optimizing the performance of front-line workers, 34 SEPTEMBER 2020

speed up production and maximize the storage capacity,” noted Alain Kaddoum, General Manager, Swisslog Middle East.

The installed Swisslog solutions included the Vectura Pallet Stacker Cranes (ASRS) which are known for its optimized energy-efficient design and delivery of highly efficient storage and retrieval with minimal energy costs; a monorail system complete with 44 trolleys; a pallet conveyor and lifting systems that ensure the efficient flow of goods and sequencing of pallets in receiving and shipping.

Swisslog proprietary software

The company also deployed an advanced high-performance information technology (IT) infrastructure and controls systems, the Swisslog Warehouse Management Software (SynQ), which allows for real-time 3D visualization and condition monitoring of the entire operations.

The modular software platform also offers a number of big-data business intelligence tools that can be flexibly added over the time.

With its modular architecture and user-friendly design, the WMS software helps Mai Dubai to be prepared for the future.

“The implementation of automated and digitalized logistics solutions is part of and contributes to our customer-focused approach. This initiative has helped us not only to improve our production control but also allowed for greater storage density and increased efficiency,” asserted Alexander van‘t Riet, CEO, Mai Dubai.

To help ensure business and operational continuity, Swisslog Middle East works as a trusted business partner, providing Mai Dubai with 24/7 on-call support services and preventive maintenance for the equipment in order to ensure high availability (>98%) and low operational downtime. n

THE NEXT SUPPLY CHAIN FRONTIER

Optimizing e-commerce with Automated Storage Systems

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he Middle East is one of the fastest growing e-commerce markets across the globe. The market was worth US$8.3 billion in 2017 and is expected to more than triple by 2022 to reach US$28.5 billion, according to a new research

by Bain & Company and Google. Moreover, the coronavirus pandemic is helping to usher in a new era of e-commerce, accelerating trend lines that had already become apparent.

The pandemic has exposed many consumers to e-commerce for the first time and that will likely fuel increased growth in the coming years.

For brands and retailers to capitalize on this future growth, they must deliver on consumer expectations today. Yet the higher 36 SEPTEMBER 2020

demand being experienced has stressed many warehouse fulfillment operations and made that more difficult, particularly for companies that haven’t yet automated or are still relying on rigid mechanized systems.

This has increased the urgency around the need for automated storage systems to maximize throughput and efficiency; however, organizations considering automation today face the challenges of implementing new technology during a period of high demand and economic uncertainty. They not only need to ensure the systems they deploy can adapt to whatever the future holds, they need to be able to move quickly enough to begin realizing the benefits of automation as soon as possible.

Alain Kaddoum, General Manager, Swisslog Middle East

THE NEXT SUPPLY CHAIN FRONTIER

With CarryPick, you can add to your fleet of robots or put in more pick stations without disrupting operations. Also pick up and move the entire system to a new warehouse if you outgrow your current space.

The Evolution of Warehouse Automation

The deployment of affordable, flexible automated storage and retrieval systems can simplify reverse logistics processing.

Concerns about flexibility have been addressed through the current generation of robotic and data-driven goods-toperson automation solutions. Unlike the rigid mechanized automation systems of the past, robotic automation systems such as AutoStore and CarryPick provide the flexibility and scalability to meet changing demand while continuing to compress order cycle and delivery times.

They deliver an ROI that is typically half that of mechanized automation systems and reduce the risk of obsolescence by being able to adapt to changes in demand, fulfillment, and storage processes and the products being supported.

With AutoStore, for example, a business can add more robots at any time to support higher throughputs. Such company can also add more pick stations as demand grows or expand the modular storage cube

to support more SKUs. CarryPick offers similar flexibility: you can add to your fleet of robots or put in more pick stations without disrupting operations. You can even pick up and move the entire system to a new warehouse if you outgrow your current space.

These systems also have the built-in intelligence that allows them to evolve as new technologies emerge, enabling integration of promising technologies such as robotic item picking and AI. They also naturally support socially distant work environments as pickers work within separate workstations that are fed products by the robotic systems.

Standardization Speeds Deployment

While mechanical systems could take years to plan and deploy, a customized robotic automation system can be deployed in 1214 months, delivering a much faster return on investment and a longer useful life due to their ability to adapt to change.

But, just as with e-commerce delivery times, what seemed fast just a few years

ago is no longer fast enough today. That’s why the next evolution in warehouse automation technology is focused on increased standardization to further reduce deployment times without compromising functionality. This is enabled by the combination of software maturity and the experience gained over years of implementations.

System design and software customization can add months to automation system implementations. As more automation systems are deployed, the need for customization is diminished.

Many software capabilities that would have been considered “custom” several years ago are now integrated as standard features of systems such as the SynQ platform.

While these systems feature a high degree of standardization, they provide the flexibility to tailor the number of robots, ports, racks and bins to specific application requirements. And, of course, both standardized and custom configurations have the ability to scale as needs change.

Automation of certain manual, repetitive processes through shuttle systems or robotic-led storage systems has clear benefits for smaller items at higher volumes, while technology to augment people adds real value where decisionmaking processes are less clear,.

Making the shift towards larger, fully automated facilities takes time and significant investment. This may be the long-term approach for some businesses, however taking a modular approach to roll out automation can provide important gains earlier and ease the impact of transition. n SEPTEMBER 2020 37

BITO STORAGE SYSTEMS ME

The secure and sustainable

LAST MILE SOLUTION for online grocery shopping German international storage solutions provider BITO has added another bin variant to its successful MB multi-purpose container range as part of its new product innovation. Dean Lawrence, Managing Director, BITO Middle East, based in Dubai World Central Logistics City in Jebel Ali, provides the lowdown on the manufacturer’s multiproduct and technology offerings in this exclusive contribution.

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nline grocery purchases have seen a steep rise which is challenging online retailers. They are confronted with the question: How do I deliver temperature sensitive foods safely to the consumer if possible, without producing any further packaging waste? The online shopping trend is on the rise and goes hand in glove with the movement toward sustainable and eco-friendly shopping, especially in the food sector.

Avoiding plastic waste as far as possiblewhether secondary packaging or single-use shopping bags for carrying purchases home-is becoming more and more of a priority with consumers. Reusable, stable carrying and transport aids are therefore more in demand than ever, by consumers and of course also by 38 SEPTEMBER 2020

online retailers, who are looking for optimum solutions to reduce costs.

BITO provides the answer with their new MB Food & Delivery container that is an addition to the successful MB multipurpose container series. Sized 600 x 400 x 373 mm, this container variant has been developed especially for the retail e-commerce market and is provided with various equipment options.

E-food sector suppliers

Suppliers in the e-food sector have gained a lot of experience over the years since the start of online food shopping particularly with regard to the necessary requirements when transporting food over the last mile to the customer. We have now responded by adding a new container type to our successful MB series.

What exactly is important to the customer - and therefore also to the end customer?

The goods must reach the consumer undamaged. Freshness and quality assurance are top priorities - compliance with cold chain requirements from leaving the market or warehouse to door-step delivery is essential.

In addition to this, goods that need to be shipped must be secured against tipping over.

Another requirement was to minimise the number of totes required per delivery and to keep the storage area for empty totes small.

Customized containers

Customers do not only need a space-saving, nestable container, but also various options of customisation. It is important that a wide variety of products can be transported in the same container without wasting space.

The new container height, for example, resulted from the fact that 1.5L bottles often have to be transported standing, a requirement that was repeatedly brought to our attention. In addition, different

BITO STORAGE SYSTEMS ME

temperature zones in one and the same delivery box are another requirement. Since packaging quality and product size can vary a lot, it is important to ensure that items do not tip over, break or leak.

The quality of the goods during transport and delivery must in no case be jeopardised, this was a top priority. Dealers also want to avoid that delivery containers are only half full in order not to give away space in transport vehicles.”

frozen foods. Thanks to these inserts, it is possible to create several temperature zones within the same container.

This is an advantage for small orders with only a few items per temperature range.

These orders can be shipped in one and the same container, thereby reducing the number of containers per customer. The insulation inserts are currently available in two modular sizes that allow combination of two temperature zones in one container.

Extra features

Phase-change materials

Many optional features make the MB Food & Delivery the ideal shipment tote for online grocery shopping. This includes dividers that prevent items from slipping, tipping and leaking and ensure that bottles or cups remain in an upright position.

Equally important are insulation inserts made of EPP (expanded polypropylene) for various dry storage or lower temperature areas for fresh produce, dairy products or

Also available are matching cold packs made of ‘phase-change’ materials (PCM) that also have a divider function and deepfreeze packs for temperatures as low as -21°C. They are a safe, inexpensive and, above all, multi-use alternative to dry ice.

If required, the container can also be equipped with bag holder rails for convenient order picking and neat product presentation to the end customer. At the

BITO Storage Systems ME LLC is a regional subsidiary of German Manufacturer BITO-Lagertechnik Bittmann GmbH BITO is short for ‘Bittmann Oberstein’, after the location where the company was founded by the Bittmann family in 1845. BITO is a supplier in the intralogistics sector.

The family-owned multinational company offers a complete range of storage technology components. The workspace covered currently exceeds 140,000sqm. Bito specializes in the fields of storage equipment and picking systems that meet rigorously high quality standards.

same time, the bag provides additional product protection. For more protection during transport, customers can opt for a lid and seals.

The new MB-series container is also available with permeable sides. This ensures that cool temperatures in transport vehicles or storage rooms can reach the goods.

Permeable sides help reduce a container’s own weight which makes carrying easier.

The new MB Food & Delivery container perfectly meets customer demands for a versatile, sturdy and re-usable all-in-one solution for grocery online shopping. n SEPTEMBER 2020 39

THOUGHT LEADERSHIP: TOM CRAIG

Oh, Yeah… the Big Bad Wolf AMAZON Musings on the Retail, e-Commerce and Supply Chain Management fallout in the continuing onslaught by the pandemic

In this thought leadership contribution, 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 affirms that e-Commerce has been the one sector that has proven to be not just resilient but thriving despite the impediments rigourously enforced by way of health and social protocols. Furthermore, he predicts that online sales will continue to sure —Editor.

T

he pandemic has had a significant impact on businesses and the economy and the longer Covid-19 continues without being contained, the greater will be the change in how businesses operate.

E-commerce has been one segment that has seen growth, given lockdowns, and concerns about social distancing. The surge in online sales will likely continue.

Coronavirus is an e-commerce accelerator and with the extended pandemic, customers may continue to shop online.

Supply chain management, the driver of order delivery velocity that made e-commerce successful, should face significant transformation. From e-commerce to the global pandemic, the strategic importance and criticality have been validated.

With e-commerce being strong, many retailers have been selling online.

E-commerce is a customer demand for buying and order delivery service. To put that into a competitive context, let’s talk about the big hound, the veritable giant in 40 SEPTEMBER 2020

the e-commerce fight—Amazon.

Amazon created order-delivery velocity that made them successful with, pre-Covid, an almost 40% market share, and made e-commerce viable. They crafted customer convenience, delivery to customers. No going out to stores in hot or bad weather just buy from your home.

Reforming Supply Chain

They built a new supply chain management with end-to-end velocity—one that is disruptive innovation. This supply chain gives them control of the movement of products from origin factory to customer delivery. Part of this supply chain is its transportation and logistics infrastructure.

They did reverse outsourcing and brought service in-house. Generally, in-house logistics/transportation services are lower cost than using outside providers.

The company also enjoys several key strategic strengths. These include: Freight Forwarding: Amazon does its own forwarding from China. Think about that.

There they are upstream at the start of the

supply chain.

Cargo Airplanes: They will have 80 planes by 2021. These increase the speed at which they can move products.

Warehouses: Amazon has very large distribution centres. The company has more than 175 of them worldwide with total area exceeding 150 million square feet. Over 100 of these are in the US. Now they are increasing their warehouse footprint by 50% in 2020. A sign they see the pandemic business surge will hold. It also aids with a likely Black Friday online buying instead of consumers going to stores and with Christmas buying.

Delivery Service: For the last mile, they have 60000 trucks with another 100,000 ordered. They are estimated to be the fourth largest delivery service in the US. Bank of America says their delivery service could be worth up to US$ 230 billion by 2025.

Note, that value was set before the Covid e-commerce surge. So that value could go higher.

Technology: Having so much of their own warehousing, delivery, and related

THOUGHT LEADERSHIP: TOM CRAIG

inventory planning and moving through the end-to-end supply chains become more complicated with their dual usage of store and online--and differing inventory requirements for each.

The next question for stores as e-commerce fulfillment is how they position them as to delivery to customers—and customer convenience—or for customers going to stores for curbside pickup.

Amazon has been aggressively creating its end-to-end supply chain that delivers orders quickly. They have not stopped during the pandemic. All this adds to what is required to compete in the online reality of the new normal.

Delivery indispensability

For those that have been slow getting your e-commerce supply chain, ask yourself what your plan is to be competitive in the e-commerce business with order speed.

How do you plan to compete—either against Amazon or just for your business?

Either way, customers look at order delivery speed. If it helps, think of order delivery velocity as customer retention.

Amazon has done its supply chain differently. What if you do yours that way— not the same old? And this does not mean trying to replicate what they have done. For example, design your supply chain from the customers back through to your suppliers.

That makes sense since e-commerce is about order delivery.

A takeaway from the pandemic will likely be the strong use of online buying for both B2C and B2B. For manufacturers, that can become about your manufacturing to delivery order speed. Perhaps more so with Build-to-Order firms. infrastructure provides a foundation for the important end-to-end supply chain visibility. Additionally, Amazon has its web service, also known as, the cloud which accounts for a substantial portion of its earnings.

Workforce: The company has one million employees.

Scale and Supply contest

This is some serious scale and supply chain competition. All this framework positions them to handle more volume and to move inventory faster for improved order delivery speed. In other words, it ups their competitive position.

Some retailers and CPG (consumer packaged goods) / FMCG manufacturers with stores are using their store network as micro-fulfillment centres. These provide location, location, location for their customer base. The location helps with the move toward same-day order delivery. It also makes stores dual-purpose facilities— retail and e-commerce.

The trade-off to the location is stores are not as efficient, and hence cost more than warehouses, for order-picking and preparation. The dual-purpose also comes into play with inventory. If store sales remain soft as the coronavirus continues and are used for online orders, then

Resilience required

Resilience is the buzzword thrown around with Covid—so you will be ready for the next global crisis. I also see fluidity as a need. It is more than flexibility. Dealing with the changes and challenges that will come as Covid continues and the transforming as the new reality evolves. Plan A could become Plan D. Amazon came to dominate e-commerce because other firms were slow to see what was happening and to change their supply chains and step up to be a serious player.

A few have stepped up to the challenge.

Still, there is a need to do much more.

The pandemic has made it essential. n SEPTEMBER 2020 41

HARNESSING 3D PRINTING IN PANDEMIC TIMES

What the pandemic has taught us about the Supply Chain

42 SEPTEMBER 2020

HARNESSING 3D PRINTING IN PANDEMIC TIMES

Lee-Bath Nelson, Co-Founder and VP Business, LEO Lane, assesses how the 3D printing / additive manufacturing industry continues to play and its important role in addressing some of the supply chain issues faced during the pandemic. Furthermore, she advocates that adopting such technologies and looking towards digitized supply chains is good practice outside of such emergencies—Editor

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ne hot topic that has arisen during the Covid-19 pandemic is the importance of rethinking current supply chains and the benefits enabled by both their digitalization and the use of virtual inventories. The combination of additive manufacturing (AM) and digitization will likely encourage industries to rethink their approach to supply chains.

The importance of reevaluating current supply chains stems from the inherent differences between traditional manufacturing and AM solutions. Traditional manufacturing by nature requires a global supply network with physical warehouses and physical shipping / logistics. One of the key characteristics of traditional manufacturing is mass production, where the greater the production quantity, the lower the price per part.

During these last few months, a chain of events led to multiple supply chain failures.

The initial outbreak in China combined

(Lee-Bath Nelson is Co-Founder and VP Business, LEO Lane, a Middle East-based SaaS solution that secures Digital Inventories for AM and enforces a consistent, repeatable, secure and trackable digital supply chain with additive manufacturing.)

with the country’s increased role in the production of world goods, began a ripple effect of problems.

Factory shut-downs in China caused some physical inventories to deplete and as the virus began to spread, it became a global pandemic. In terms of supply chains, the intention to limit the spread of the virus by minimizing travel made it extremely difficult to move goods. The shortage and acute need for parts, especially medical parts, grew and vulnerabilities were experienced both insofar as manufacturing, as well as in supply chain logistics.

New awareness

The pandemic has shown that the risks of supply chain disruption are higher when manufacturing is centralized and transportation is widespread and the emergency brought awareness of AM as a technology and as an enabler of digital supply chains. But neither the technology nor the business models are new and the geographical and time associated benefits of AM became clear because of the way the AM ecosystem came through in times of need.

Specifically in the medical field, AM is already widely used in pre-operative patient-specific anatomical models, such as surgical guides. Within manufacturing, AM enables localized manufacturing and is used for production tooling and high-end critical parts, as well as for maintenance and emergency spare parts.

A recent industry webinar, in which I participated, also included Stratasys’ EMEA President, Andy Langfeld, who discussed how the PPE shortage during the pandemic uncovered the classical risk of the global supply chain today.

He pointed to the AP-HP hospital network in Paris which addressed this through 3D printing and set up an internal production method within just 48 hours.

Doctors can order industry-compliant parts from an internal catalog as needed, SEPTEMBER 2020 43

HARNESSING 3D PRINTING IN PANDEMIC TIMES

demonstrating how AM can help overcome supply chain failures.

Not just a pandemic solution

There are other reasons for supply chain failures such as geo-political issues like the tariff wars between the USA and China, and Brexit. Evaluating digital supply chain effectiveness for a company is relevant now and in the future.

When comparing production costs, looking only at those derived from manufacturing makes sense IF the supply chain is the same for items produced by the compared manufacturing methods. While AM might be more costly per part in the manufacturing, it can save significant costs when it comes to the supply of a part.

Digital supply chains, in general, have much lower costs: a digital supply chain is shorter, modular, and obviously less physical, cutting the costs related to keeping an inventory, warehouses, overproduction, transportation, and more.

In times of crisis, there still could be difficulties in the digital supply chain but these are restricted mostly to the supply of raw materials. The agility of digital enables quick reactions and changes when needed.

We have seen over these past several months factories repurposing to manufacture medical equipment, but in traditional manufacturing the time and costs of such a switchover are significant.

In contrast, secured virtual inventories and 44 SEPTEMBER 2020

At AP-HP hospital in Paris, Doctors can order industrycompliant parts from an internal catalog as needed, demonstrating how AM can help overcome supply chain failures.

AM can be flexible and nimble essentially hot-swapping one location for another or one product for another.

Vulnerabilities of a digital nature

With all these advantages, it makes one wonder why digital supply chains with AM aren’t more popular. There are vulnerabilities that stem from digital production and digital supply chains that need to be addressed.

Traditional production can ensure almost 100% consistency and repeatability in the physical product because parts are produced en masse.

When the part is digital, it is not yet produced. Therefore it is important to keep repeatability across times and locations to ensure 100% consistency–whenever or wherever the part is eventually produced.

Enforcing repeatability in AM can be

done by tracking and controlling the production process using SaaS software, such as LEO Lane’s. This ensures the correct machine, and the correct settings are used, thereby accounting for different material characteristics.

Combating theft

Another vulnerability for both physical and digital parts is theft. When a physical part is stolen, the economic loss is the value of that one part. However, when a digital part is stolen, the economic ramifications are much worse: an unprotected digital part is a blueprint to output as many parts as desired.

Again, this is certainly an important consideration when setting up a digital supply chain, with the same software solutions offering protection of the virtual inventory.

In view of Covid-19, it is likely that we will need to be able to work from any location for some time. Using cloud and SaaS solutions makes it easier to integrate with companies’ existing systems and still have access from different places. AM and digital supply chains offer an alternative, or a parallel alternative to the existing supply chain, in order to self-sustain and remain strong against possible disruptions.

Whether it is to supply spare parts in an emergency or simply for everyday use, the benefits of digital supply chains are increasingly being embraced and leveraged by many companies. n

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AI & ROBOTICS

How AI can help jumpstart and grow the economy in the Middle East AI and Robotics can complement and create jobs, cultivate a fairer economy, and benefit society, opines Thierry Nicault, Executive Vice President – Middle East, Africa, and Central Europe, Salesforce—Editor

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ovid-19 pandemic has forced whole industries across the Middle East to transform their business models and digital capabilities by necessity. However, those industries who develop Artificial Intelligence (AI) technologies continually aspire to use technology to augment the way we work and live, with ambitions to be faster, more efficient and more insightful.

In the world of work, AI is helping us to save time and boost productivity. From call centres, supply chains or boardrooms, our experiences have been – and continue to be – totally transformed. With Salesforce’s Einstein Voice Assistant, for example, AI can help users to navigate cloud services handsfree, to update meeting notes and records instantly.

AI can also take on more routine and repetitive administrative tasks like data entry and finding critical information, in turn helping refocus time and resources on tasks and projects that humans uniquely can accomplish.

360-degree view

In the context of the public health crisis, companies seeking to reopen and recover their offices safely and responsibly are also implementing and repurposing AI systems; Salesforce Work.com solutions, for instance, provide a 360-degree view of return-towork readiness, contract tracing and shift management capabilities.

Although making our lives a bit easier and more convenient, the development of automation has raised concerns around the future of jobs. Whilst the combination of the public health crisis and rapid technological advancements may decrease demand for certain task-orientated jobs, like the changing priorities and practicalities of 46 SEPTEMBER 2020

Thierry Nicault, Executive VP – MEACE, Salesforce. many businesses right now, a lot of jobs will be transformed entirely. The potential for AI to create new products, services and jobs is enormous.

As the reliance on new AI technologies rise, we also have a responsibility to ensure that inequalities do not rise alongside it.

Handled responsibly, AI will help us do our jobs more efficiently and live fuller lives. It may even revolutionize how societies are governed and encourage a fairer way of distributing wealth.

Complementing and creating jobs

Automation may not only complement the jobs we do, but also lead to broader levels of employment. Just as AI tools are helping sales teams prioritize leads, they’re also helping companies elevate how they interact with their customers and make better business decisions through data.

This is why at Salesforce we are helping

companies embrace and deploy AI. During this time of disruption, we’re seeing whole teams and roles entirely transformed.

For example, we helped Virgin Group be more responsive to its customers by helping the company launch its first-ever AI chatbot. With so much uncertainty in air travel industry, the chatbot assisted customers with making or rescheduling essential travel arrangements at the last minute. This has also enabled their workforce to concentrate on other impactful ways to support the business.

As the pandemic evolves, so too will the demands of customers and the services that businesses offer in tandem. This means companies will also need to help their employees to up-skill and possibly even re-skill entirely.

In a world where companies are

AI & ROBOTICS

increasingly judged on the quality of the customer experience they provide, multitasking and learning in both the physical and digital spheres are imperative to engaging effectively with customers and with evolving a workforce.

Cultivating a fairer economy

By bringing technology, economists and governments together, we can also transform how we approach governance and taxation. The recently launched, Salesforce Research’s AI Economist framework, with the capability to simulate millions of years of economies in parallel, shows how economic design AI can be used to optimize the balance of productivity and social equality for everyone - a model found to be 16% more effective than any leading tax framework.

In addition to the clear, long-term positive social impact this could have, the issue of taxation will become increasingly relevant as this pandemic continues and governments seek to re-adjust fiscal policy to pay for their interventions, including massive stimulus packages. We can expect the debate around taxation, equality and productivity to intensify in the months and years ahead.

Benefiting everyone in society

During this pandemic we are seeing AI fast-forward the process of drug discovery, revolutionize health systems with capabilities to predict service demand, and transform businesses in the context of social distancing guidelines. We are still only at the beginning of the AI journey.

There are legitimate fears around what

implications automation may have on jobs and employment. At Salesforce, we have long envisioned a world in which AI will be democratized for everyone in society.

To ensure everyone reaps the benefits, companies must help employees adapt to changing working environments, always to stay curious and put ethics at the forefront of everything they do in AI. This explains why innovation and trust are two of our core values at Salesforce. We innovate because we want a better world, and we build trust to benefit everyone along the way. Robots will never share our human ambitions for a better life for themselves, their family or community, but they can help us achieve them. With data and ethics, the Middle East can become a smarter society, create more meaningful work, and cultivate a more equitable economy. n SEPTEMBER 2020 47

ELECTRIC VEHICLES

Saudi Arabia’s PIF-backed Lucid Air to be the fastest charging EV

Will deliver a charging rate of up to 32km / minute and will incorporate extraordinary energy and spatial efficiencies

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S-based Lucid Motors, in which the Saudi Arabia’s Public Investment Fund (PIF) is a major investor, recently announced the Lucid Air will be the fastest charging electric vehicle ever offered with the capability to charge at rates of up to 20 miles (32 km) per minute, the company said in a press communiqué.

For owners charging their Lucid Air in real-world conditions on the road, that translates into 300 miles (483 km) of range in just 20 minutes of charging.

This new benchmark for speed of charging is possible through an ultra-high 900V+ electrical architecture, custom lithium-ion battery cells, a highly sophisticated battery and thermal management system, and the Lucid Air’s incredible powertrain efficiency.

This efficiency plays a direct and invaluable role in the Lucid Air’s charging rate, determining the rate of mileage as distinct from the rate of energy flow.

Furthermore, Lucid’s unique and innovative ‘Wunderbox’ onboard charging unit combines several usually separated functionalities into one package-efficient and structurally integrated housing. This gives 48 SEPTEMBER 2020

Lucid Air full interoperability with public charging infrastructure, including the evergrowing, 350kW fast-charging infrastructure being built-out nationwide.

“We designed every aspect of the Lucid Air and its platform in-house to be hyper-efficient, from the powertrain to the aerodynamics, and we’ve set several new benchmarks through these efforts including the longest range EV with an estimated EPA range of 517 miles,”remarked Eric Bach, Vice President Hardware Engineering, Lucid Motors.

‘Space-Concept’ Design

Furthermore, Lucid also announced that it will focus upon all-around efficiency extends beyond energy efficiency to spatial efficiency in Lucid’s“Space Concept,”an innovative new design layout that provides classleading interior space and spatial efficiency, ingeniously packaged around a powerful, compact, and energy dense 113kWh extended-range battery pack.

This combination maximizes customer comfort and provides surprising storage space, including the largest frunk (front trunk) ever offered on an electric car.

This achievement reflects a revolutionary and innovative approach to automotive layout and engineering packaging called the Lucid Space Concept, which capitalizes upon the miniaturization of Lucid’s in-house developed EV drivetrain and battery pack to

optimize interior cabin space within Lucid Air’s relatively compact exterior footprint.

Innovation to the fore

“It’s relatively easy to achieve more range by adding progressively more batteries, but gaining ‘dumb range’ that way increases weight and cost, and reduces interior space,” noted Peter Rawlinson, CEO and CTO, Lucid Motors.

In addition to unprecedented interior passenger space for its compact exterior footprint, the Lucid Air also features the largest frunk ever offered in a production EV, with a capacity of over 280 liters, which is 89 percent larger than the current leader in the Lucid Air’s vehicle class and 40 percent larger than the current EV leader in the SUV class.

The luxurious space and comfort realized by the Lucid Space Concept layout become tangible once inside the Lucid Air. With the LEAP (Lucid Electric Advanced Platform) skateboard platform, integrating Lucid’s race-proven battery technology beneath, and airy full Canopy Glass Roof above, occupants of Lucid Air will enjoy an unparalleled experience.

The production version of the Lucid Air will debut in an online reveal on September 9, 2020. In addition to the vehicle’s final interior and exterior designs, new details about production specifications, available configurations, and pricing information will also be shared. n

JAFZA

JAFZA records 24% surge in food and agricultural trade

Leading business and logistics hub sees its customer base grow by 7%

Mohammed Al Muallem, CEO & Managing Director, DP World, UAE Region & CEO, JAFZA.

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ebel Ali Free Zone (JAFZA) recorded a total trade growth of 24% and an increase of 7% in its customer base year-on-year in 2019, reinforcing its status as a preferred destination for businesses related to food and agricultural commodities.

The Free Zone has a dedicated Food and Agriculture cluster of 1.57mn sqm with over 550 companies from more than 70 countries, employing over 6,000 people. Thirty-eight per cent of these companies are from the Middle East, 23% from Asia, 19% from Europe, 10% from Africa, 8% from North America, 1% from South America and 1% from Oceania.

The strategic location and premium facilities of JAFZA have made it the preferred destination for many countries globally— including Brazil, the USA, Pakistan, Netherlands and South Africa, importing sugar, meat, cocoa, and dairy products.

Meanwhile, Iraq, India and Saudi Arabia are among the top export destinations, exporting coffee, tea, fruits, spices and dairy products.

Food security

“We have explored ways to further facilitate food trade and distribution while maintaining the continuity of food supply, which is crucial to the UAE and the region. We have worked towards sustainability, ensuring sufficient food is available,”asserted Mohammed Al Muallem, CEO & Managing Director, DP World, UAE Region and CEO, JAFZA. “In line with the newly launched UAE Sustainable Agriculture System, we aim to support the increase of self-sufficiency from agricultural production and workforce in the agricultural sector,”he continued.

DP World, UAE Region’s multimodal connectivity reinforces Dubai’s longterm commitment to maintain the growth and development of regional trade. Thanks to JAFZA’s strategic location near Jebel Ali Port, it offers connectivity to over 3.5bn consumers.

Seamless integration

With a reputation as one of the world’s finest locations for companies to establish their businesses and grow, the free zone ensures flexible services through Dubai Trade, DP World, UAE Region’s single window platform for cross-border trade.

To make it easier for investors and business owners in times of Covid-19, smart services from Dubai Trade include the ‘E-Delivery Order’ to allow supply chain stakeholders to handle their complex import processes and ZADI, an innovative unified food import platform aimed at facilitating the import and re-export of food shipments throughout Dubai ports.

With JAFZA, food and agricultural businesses can benefit from advanced packaging solutions, and avail pre-built warehouses for high quality storage. It has also introduced a ‘Halal Incubation Centre’ to encourage traders to launch their halal business in Dubai. n SEPTEMBER 2020 49

COMMERCIAL VEHICLES

Frost & Sullivan Market Outlook reveals global plunge in 2020 sales of LCVs Future-driven technologies such as connectivity, advanced safety, and autonomous features driving the global Light Commercial Vehicles (LCV) market toward recovery amid Covid-19 disruptions

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rost & Sullivan’s recent analysis, the Global Light Commercial Vehicle (LCV) Market Outlook, 2020 Report, reveals that global sales of LCVs are projected to reach 9.49 million units in 2020, with pickups contributing to 4.62 million units.

The global economic impact of Covid-19 caused the market to decline by 19% in global LCV sales from 11.72 million units in 2019. The European market is experiencing the worst hit as countries such as Italy and Spain are facing an average decline in LCV sales of 35% to 50% in 2020.

“Strong stimulus packages from the governments will be necessary to support the economy and cope with low business confidence and high unemployment rate, which stemmed from nationwide lockdowns during the pandemic,”affirmed Marshall Martin, Industry Analyst, Automotive & Transportation, Frost & Sullivan.

“The 2020 slowdown will be particularly pronounced across advanced economies such as the United States, Germany, Italy, and Japan,” he continued.

E-commerce to drive global market

E-commerce and connectivity will continue to drive the global LCV market as last-mile 50 SEPTEMBER 2020

delivery and electrification are expected to grow in influence in the coming years. With restrictions on geographical movement during the Covid-19-induced lockdown, e-commerce and last-mile delivery applications will see a spike in demand to deliver essentials at doorsteps.

According to Martin, electric light commercial vehicles (eLCVs) will continue to gain prominence going forward with a slew of launches expected until 2023. He prognosticated emerging trends in the market, such as connectivity, advanced safety, and autonomous features, offer great opportunities for the growth of the global LCV market in the next three to five years.

The market outlook in key regional markets will vary considerably. The main trends and growth opportunities in each key region are presented below: North America: LCVs are expected to be on the decline for the rest of the year, with full-size pickups expected to be the most affected because of the slowdown in the construction sector.

Europe: The region is expected to have a fairly good penetration of eLCVs compared to other regions going forward, with several new launches such as e-Dispatch and

e-Transporter expected in 2020.

China: The market in China is expected to pick up gradually from Q2 2020 as the recent growing domestic demand for pickups has pushed local OEMs to create more pickup products.

India: The growing penetration of e-commerce and last-mile connectivity will drive the segment to experience robust growth in the next five to 10 years.

LATAM: The region is expected to remain under further downward pressure with falling commodity prices due to COVID-19, and the market will likely decline by 17% in 2020.

Russia: The LCV market in Russia is expected to contract by 16% in 2020, coupled with falling oil prices and threat of sanctions.

APAC: 2020 is expected to be a turning point for the penetration of eLCVs in the larger ASEAN region with substantial investment coming from OEMs and fleets.

GCC: Despite the record-low oil prices, and economic slowdown due to Covid-19 pandemic, the market in the GCC is experiencing a boost in e-commerce and last-mile delivery solution for essential services, which provides opportunities in the region’s logistics sector. n

FOOD SECURITY

Saudi Arabia’s SALIC and Bahri partner to form the National Grain Company

The project, which will be completed in 2022, covers an area of 313,000sqm

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E Eng. Abdulrahman Al-Fadhli, the Saudi Arabian Minister of Environment, Water and Agriculture, recently hosted the inaugural ceremony of National Grain Company, a strategic partnership between the Saudi Agricultural and Livestock Investment Company (SALIC) and the National Shipping Company of Saudi Arabia (Bahri) with an estimated investment of SAR 412mn (US$ 110 mn) in Phase One. The new company’s inauguration and name announcement ceremony was held at the headquarters of the Ministry of Environment, Water and Agriculture, under the patronage of the Minister and in the presence of Eng. Ahmed Al-Faris, Governor, Saudi Grains Organization (SAGO); Mohammed Al-Sarhan, Chairman of Bahri; Eng. Sulaiman Al-Rumaih, CEO SALIC; and Abdullah Aldubaikhi, CEO, Bahri.

This partnership aims to oversee the trade, handling, and storage of grains between its sources in all regions of the Black Sea, Europe, South America, and the Red Sea region, contributing to the process of import, transportation, distribution, and storage.

The project will start with a capacity of about 3mn tons per year by the year 2022, to gradually increase to 5mn tons per year. The new terminal, which will be built according to the highest international standards, will enable the rapid handling of grains and fodder.

Built to rigorous standards

The new terminal, which will be constructed to the highest international standards, will allow for the rapid handling of grains and fodder, by making the logistics services of the terminal available to all importers for the benefit of both the private and public sectors.

“We are delighted with this partnership, which aligns with SALIC’s strategy to contribute to achieving food security

Bahri and SALIC Grain Terminal JV Agreement. in the Kingdom, as part of the Vision 2030 objectives,” commented HE Eng. Abdulrahman Al-Fadhli, Minister of Environment, Water and Agriculture and Chairman, SALIC. “The new terminal will enhance food distribution solutions in the region by importing, processing, exporting, and storing grains to the Kingdom, thanks in part to the strategic location of Yanbu Commercial Port, a key maritime gateway to receive the Kingdom’s imports of strategic goods,” added Engr. Al-Fadhli.

“Over the years, we have made great efforts to contribute to national food security by transporting nearly 1.5mn tons of grains annually to the Kingdom through our fleet of five dry-bulk carriers. With the addition of four new carriers before the end of this year, Bahri will be able to transport 5mn tons of dry food and various grains, including barley, corn, wheat, soy, and others, annually, to the Kingdom of Saudi

Arabia,” commented Mohammed AlSarhan, Chairman, Bahri.

Yanbu Commercial Port

“The Yanbu Commercial Port, overlooking the Red Sea, was chosen as the strategic location following a lease agreement between SALIC and the Saudi Ports Authority (MAWANI), reflecting the Kingdom’s objectives to maintain water security and limit the cultivation of fodder that consumes water in large quantities,” noted Al-Sarhan.

The Yanbu Commercial Port is the perfect maritime gateway for a grain handling terminal of this size and capacity, as most imported grains come from countries along the Black Sea, South America, and parts of North America.

New shipments coming from Australia to the Red Sea will also find the terminal beneficial, thanks to its modern offloading, handling, and storage technologies. n SEPTEMBER 2020 51

GPCA

GCC chemicals producers reduce emissions despite increased production: GPCA Report Latest figures are encouraging and demonstrate according to GPCA’s ‘2019 Responsible Care® Performance Metrics Report’ released recently

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Dr. Abdulwahab Al-Sadoun, SG, GPCA.

hemicals producers in the GCC region have cut waste generation by 29% in 2019 and emissions by over 35% in the last six-year period, despite a continuous increase in petrochemical production across the region, a new report by the Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Arabian Gulf, has found.

According to the recently released GPCA’s 2019 Responsible Care® Performance Metrics report ‘Our Commitment to Sustainability’, the volume of waste generated by GPCA member companies decreased by a third from the year before, while production went up 2%.

The new milestone was achieved as a result of successful waste reduction projects undertaken by chemical companies in the region in line with their commitment to sustainability and the circular economy.

Emissions substantially lessened

Emissions reduction per ton of production recorded over the last six-years were 52 SEPTEMBER 2020

even higher, dropping by 35% (nitrogen monoxide and dioxide) and 39% (sulphur mono and dioxide), respectively.

However, despite remaining at a steady rate in the previous two years, average GHG (green house gases) emissions (in tons of carbon dioxide equivalent) increased slightly in 2019 by 1.7%, which is largely attributed to higher production rates across the region. Carbon dioxide intensity has been on a downward trend since 2013, decreasing by 23% overall during the seven-year period.

According to the report, GPCA Responsible Care® companies also implemented a series of efficiency projects to decrease wastewater generation and increase the efficiency of wastewater treatment at their plants, resulting in a 40% improvement over the last six years.

GPCA is also pleased to report that the industry achieved a new safety record in 2019, with no fatalities recorded, despite an increase of 23% in man-hours worked.

This, coupled with a significant drop of 51% in the Total Recordable Incident Rate (TRIR), showcases the uncompromising commitment of all GPCA member

companies towards inculcating a culture of safety and compliance within their organizations.

Commitment to sustainability

“Now in its 7th edition, the GPCA Responsible Care® Performance Metrics report has demonstrated the chemical industry’s commitment to sustainability and the highest degree of transparency.

I congratulate all 38 member companies who participated in the report, submitting a total of 836 data entries, for their achievements and success, and encourage them to continue on the trajectory of continuous improvement,” observed Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA. “The current pandemic has presented innumerable challenges for all, but the efforts of GPCA member companies to ensure the highest level of safety, while maintaining high production, highlights the importance of the Responsible Care® program as well as the ability of chemical companies in the region to respond to the crisis with agility and resilience,” he concluded. n

SOHAR PORT

SOHAR Port witnesses 112% increase in the volume of goods transported in Q2-2020 STS operations increased by 16% and increase in anchorage calls by 4%

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he implementation of its business continuity plan has seen SOHAR Port and Freezone maintain its operations and KPIs surpassed despite the impact that the Covid-19 pandemic has had on global markets, the company indicated in a press communique.

Q2-2020 saw an increase of 112% in STS (Ship-to-Ship) throughput, compared to the corresponding values in Q2-2019. This has resulted in a growth of STS operations by 16% and anchorage calls by 4%, a rise that is the result of SOHAR’s strategic location as gateway between the East and West and a myriad of direct connections to ports around the world.

“We continue to place a huge importance on maintaining an uninterrupted flow of goods and commodities into the local market, via all the ports in the Sultanate, which is further complemented by the provision of high-level marine services to

shipping agents, and export and import companies,” affirmed Abdulrahman Bin Salim Al Hatmi, Group Chief Executive, ASYAD. Muscat-based and 2016-established ASYAD, the Oman Global Logistics Group, is a private company operating within the Transportation sector focusing on Air Freight and Logistics. ASYAD is based in Muscat, Oman, Established In 2016.

“All the Omani ports have proven their effectiveness in meeting the demands of the local market via direct imports through their facilities. Due to the unified efforts of ASYAD’s Commercial Team and relevant entities in the sector, we have successfully been able to maintain business continuity in every aspect of our operations,”Al Hatmi added.

“Our top priority is to carry on contributing towards a seamless flow of goods into the local market, while ensuring

the best marine services. This goes handin-hand with implementing the directives of the Supreme Committee,” asserted Mark Geilenkirchen, CEO, SOHAR Port, commenting on the Q2-2020 results.

“The success of the Freezone coincides with that of the Port, with the construction of several new projects going ahead as scheduled. A majority of these developments will be operational by the end of 2020, contributing additional revenue to the national economy as well as enhancing the number of downstream opportunities we can offer to our tenants,” remarked Omar Mahmood Al Mahrizi, Deputy CEO, SOHAR Port & CEO, SOHAR Freezone.

Q2-2020 has seen SOHAR land occupancy rate reach 62%, with warehousing and office occupancy rates reaching 71% and 18% respectively, the press statement concluded. n SEPTEMBER 2020 53

THE NEXT SUPPLY CHAIN FRONTIER

Pharma logistics catapults to the forefront of the supply chain ecosystem in pandemic times Demand and procurement of the vaccine, upstream manufacturing and downstream supply chain are the key logistics focus areas in the fight against the pandemic.

In comments and reviews made exclusively for Global Supply Chain Eelco Dijkstra, Europhia Consulting, UAE, and Laurent Foetisch, Supply Chain Operations, SA, based in Lausanne, Switzerland, take an overview of various parameters of the supply chain continuum that would be crucial and critical in the production and distribution of the Covid-19 vaccine—Editor.

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ver the past seven months, the global pandemic caused by Covid-19 has impacted the global economy and people’s lives tremendously. A number of countries and companies have concentrated their resources to produce a vaccine for Covid-19 and considering the present scenario, one can be hopeful to have a vaccine available soon.

However, finding the vaccine is just the first step. Other critical steps that every government should be thinking about in relation to their national vaccine strategy are product integrity and safety, public education, and the actual distribution 54 SEPTEMBER 2020

program itself.

Product integrity and safety tests that assures the vaccine is safe to use, communication programs that inspire public confidence and a robust supply chain management strategy that anticipates local demand efficiently which will deliver a vaccination program that the general population is willing to participate in.

Criticality

Since the sense of urgency is critical, governments all over the world should start planning based on these important enablers. Without this planning, the goal

of having a confident and vaccinated population ready to return to ‘normality’ and participating fully in the economy will not become a reality.

In August 2020, Russian President Vladimir Putin announced the first vaccine to the world, named Sputnik V. With this announcement the race to get a working vaccine to people all over the world has heated up further between key players all over the world eager to cash in on this opportunity for financial and political reasons.

One thing is clear, whichever vaccine makes it to commercialization the supply chain will play an integral part in the

THE NEXT SUPPLY CHAIN FRONTIER

upstream manufacturing supply chain and the downstream distribution.

Demand for the Vaccine

Many experts around the world are expecting the introduction of these vaccines to cause major challenges to global supply chains in manufacturing, transportation and distribution as companies scramble to meet demand from countries all over the world. It is clear that the demand for this vaccine will be at a historic high.

Upstream Manufacturing Supply Chain: To get to making a vaccine, there are a number of manufacturing steps which need to be taken which although invisible to most people are critical in the time path to a final drug product. These include making and testing the API product which forms the active ingredient of the drug.

Making the actual drug itself (drug substance), the filling process involved in turning the bulk drug substance into usable vials or syringes for vaccination. The other needed parts related to the syringe itself, the needle, the vial, the cap, the label and more.

The last step is the actual final labeling and packaging of the vials into finished product. In the pharmaceutical industry, all of these manufacturing steps are usually performed at different factories often across different countries in the world.

Procurement of Vaccines – Access Rights

Governments around the world are competing to get first access to available vaccines. They are faced with critical questions around which vaccine brand to back now to secure access to large

Eelco Dijkstra, Managing Partner, Europhia Consulting. quantities to be able to start domestic immunization programs.

Backing a vaccine and paying up front for access and guaranteeing certain quantities of doses whilst there is no advance guarantee the vaccine will work is a large financial and political risk only the richer countries are able to make.

Downstream Supply Chain

Once a vaccine has been produced it is ready to be shipped under heavily regulated and temperature-controlled conditions to countries around the world. Many industry experts predict this enormous logistics task will lead to huge capacity problems for airlines and logistics companies.

Laurent Foetisch, Supply Chain Management Consultant as Supply Chain Operations with more than 35 years of pharmaceutical manufacturing and logistics experience argues differently.

“It is not possible to produce the quantities of vaccines needed all at once.

Typically, vaccines are produced in batches of around 100,000 – 150,000 vials / syringes based on a daily production cycle. Even if multiple filling lines are used across various manufacturing locations it is not possible to produce all the vaccines immediately at these numbers in millions for everyone,” he explained.

Eelco Dijkstra at Europhia Consulting points out that ensuring product security across the entire supply chain will be vital.

Not just in terms of establishing and using validated temperature-controlled transport and storage solutions but also in terms of risks such as product being hijacked’ and/or ‘counterfeited’ by organized crime as product is transported across multiple countries.

National Vaccination Programme

National Vaccination Programme - The Final Mile Distribution, the two major challenges of the government run vaccination program on a national level would be in public education and in the distribution program itself.

To make any vaccination program successful, it is vital to plan on how to educate the end community to ensure that the public is fully aware prepared to take the vaccination timely and efficiently.

Infrastructure

In some countries it will make sense to use existing Covid-19 infrastructure such as dedicated clinics and testing centres already in place. In some cases, it might make sense to set up ‘mobile’ vaccine units which come to elderly homes, local community centres and schools. n SEPTEMBER 2020 55

ETIHAD RAIL

Etihad Rail’s annual transport capacity expected to reach 59mn tonnes The network fleet expands beyond 1000 wagons

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tihad Rail, the developer and operator of the UAE’s national railway, is tripling its fleet following the announcement of an award of a contract for the manufacture, supply and commissioning of 842 new wagons bringing its total fleet to more than 1000 units to serve the whole network.

This expansion paves the way for the rail transport to become a principal platform for freight haulage in the UAE following the completion of Stage Two, as it connects the entire country.

The contract was awarded to CRRC Corporation Limited, the Chinese stateowned and publicly traded rolling stock manufacturer and a global leader in providing solutions for the sustainable development of the railway industry.

The deal was formalized during an on-line ceremony attended by HE Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Crown Prince’s Court and Chairman, Etihad Rail and Sun Yongcai, President, CRRC Corporation.

Signing ceremony

The contract signing was conducted by Shadi Malak, CEO of Etihad Rail, and Wang Hongwei, Vice President of CRRC Yangtze Group, a subsidiary of CRRC Corporation 56 SEPTEMBER 2020

Limited. Also present for the on-line event were senior officials and delegates from both companies.

HE Sheikh Theyab Bin Mohamed Al Nahyan reviewed the overall construction work progress of Stage Two and witnessed the purchase approval of more than 800 additional wagons, increasing the rail’s annual transport capacity to reach 59M tonnes.

“Etihad Rail is building a sustainable national railway network designed to transform the UAE’s freight transport and logistics mode of operation by modernising the haulage map for the end users, customers as well as operators,” Sheikh Theyab Bin Mohammed affirmed.

The newly acquired wagons will be manufactured according to specific GCC requirements, including state-of-the-art breaking, signalling, and communications control and safety systems, while being tailor made for the specific regional environmental conditions in general and for the UAE in particular.

Tripling wagon fleet

By tripling its wagons fleet, Etihad Rail’s annual transport capacity will increase by a factor of 8, reaching up to 59mn tonnes per annum, transporting cargo such as containerised and bulk freight, including petrochemicals, aggregates,

construction related materials, industrial and perishable goods, waste, cement and all related construction materials, aluminium, perishable goods, as well as general cargo, both domestically and internationally.

The variety of wagon types will provide the necessary flexibility, schedule frequency, and scale required by the market, enabling users to reduce costs and increase efficiency.

In addition, the increased utilisation of rail will reduce road congestion associated with truck movement as the sole current solution for transport mode for goods on land.

Stage Two of the Etihad Rail network is moving forward rapidly, as all contracts for the construction, civil works, Freight Facilities centres and the Operations and Maintenance headquarters have been awarded, plans approved, and ground broken on the Stage Two rail corridors.

When completed, Stage Two of the network will extend 605 kilometres from Ghuweifat on the border with Saudi Arabia to Fujairah and Khorfakkan on the UAE’s east coast, while connecting the ports of Jebel Ali in Dubai, Khalifa Port in Abu Dhabi, ICAD—Industrial City Abu Dhabi / Mussafah in Abu Dhabi and the Port of Fujairah, with the existing Stage One line at Ruwais, effectively uniting the major industrial ports and trading centres of the country while opening up cross-border rail traffic to the GCC. n

HUMANITARIAN LOGISTICS

Powering the World’s Covid–19 Supply Chain through Dubai’s Humanitarian Logistics Hub In this contribution, Fatima Ait Bendawad, Head of DHL Global Forwarding’s Global Competence Centre for Humanitarian Logistics in Dubai, explains the pivotal role Dubai is playing in enabling the global supply chain in the face of the pandemic through its purpose-built Humanitarian Logistics Hub—Editor With the current outbreak of epic proportions, Dubai’s logistical capability is once again pivotal in the World Health Organization’s (WHO) facilitation of the supply and transport of personal protective equipment (PPE) globally.

As governments around the world started to reach out to get hold of PPEs, Dubai grew its emergency operations team fourfold to accommodate the demand of increasing shipment requests despite the skyrocketing air freight rates.

Supporting all nations Fatima Ait Bendawad – Head of DHL Global Forwarding’s Global Competence Center for Humanitarian Logistics.

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he Covid-19 pandemic has challenged the logistics sector, particularly in relief operations, in unprecedented ways. With a sharp dip in global flight capacity as a result of travel restrictions and grounded fleets, this has been a trying period for flights transporting life-saving aid and medical supplies, critical in the fight against Covid-19.

In the face of these logistical hurdles, Dubai’s strategic position as a thriving transit hub at the intersection of Asia, Europe and Africa, has brought to bear its instrumental role in the global humanitarian aid supply chain.

Dubai competencies

Even prior to the pandemic, Dubai has been managing the flow of medical necessities for ongoing global issues such as water sanitation, malaria, neglected tropical diseases and the refugee crisis.

The UAE’s significant investments in airports, seaports, roads, railways, telecommunications and energy have created a supportive infrastructure for efficient logistical movement, which the World Bank ranked as number one in the Middle East.

This infrastructure has complemented Dubai’s role as a hub for humanitarian logistics. The city is home to Dubai International Humanitarian City (DIHC), the world’s largest and busiest logistics hub for humanitarian aid, which has nine United Nations agencies and nearly 50 non-governmental organizations and commercial entities as members.

Its location – within eight flight hours from two-thirds of the world’s population – has helped in the swift transportation of foreign aid during some of the worst humanitarian crises of the past decade and more recently, the novel coronavirus outbreak.

Visionary leadership

In line with the UAE leadership’s commitment to assist over one million medical workers worldwide, DIHC has

met 85 percent of the WHO’s global medical goods response, having rolled out over one million units of medical supplies to date.

So far in the fight against the Covid-19 outbreak, Dubai has donated more than 995 tonnes of aid to Europe, Africa, Asia and the Americas. It has sent shipments including test kits, protective clothing and food supplies to over 70 nations.

Additionally, in partnership with the United Nations World Food Programme (WFP), Dubai has launched an international air bridge operation to provide a lifeline of essential health and humanitarian supplies to nations.

China focus

China, in particular, is the primary manufacturing hub for PPE where the West has been sourcing its supplies from.

Anticipating the upward trend, the DHL team in Dubai worked closely with its counterpart in China to form a dedicated taskforce that manages the daily freight shipments of PPE from Shanghai to Dubai.

Aside from handling the bulk of essential shipments daily, the leading air, ocean and road freight provider alleviated the strain on air cargo capacity by launching a dedicated 100-ton weekly air freight service back in April 2020. The solution saw DHL teams consolidate shipments across China, and moved them to Middle East and Africa via Dubai.

Such initiatives speak to Dubai’s commitment to foreign aid. Whether through the provision of PPE, sharing knowledge or ensuring that humanitarian supplies reach all those in need, Dubai continues to be a reliable partner and a voice for good. n SEPTEMBER 2020 57

RETAIL LANDSCAPE-POST PANDEMIC

Distribution, Wholesale and Retail beyond Covid

Technology will play a huge role in establishing speed, enable innovation and sustain values in global supply chains in the face of and in the aftermath of the pandemic, asserts Niranjan Gidwani, Independent Consultant Director and former CEO, Eros Group—Editor

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he Covid-19 pandemic has disrupted supply chains around the world and highlighted the need to transform traditional supply chain models, not only for businesses in distribution and retail, but also for the service industry as well as government services.

This is where technology comes into the picture. For moving companies agendas forward on ‘future of work’. The focus now has clearly shifted to building and deploying technology to bend the cost curve for companies while ensuring speed, quality, and simplicity.

The current transformation in customer segments and purchase preferences due to the pandemic has shown us the need for rapid digitization in the retail industry.

Emerging technologies like Artificial Intelligence (AI) will become an eminent part of retail to understand dynamic demand signals, to realign supply chains, to redefine the need of essential workforces and strategy, to adapt to the new normal.

can witness a shift to online retail.

Additional factors such as convenience and the concern for health are also enabling this growth. For the retailers, the focus will be on using technology effectively to better manage inventory and reduce costs through efficiency in logistics.

Shared commitment

All relevant stakeholders will need to understand that, as partners, they are in this for the medium to long term haul, and hence will need to work on business agreements which keep current realities in mind, not old agreements being marginally tweaked.

Artificial Intelligence will become an eminent part of retail to understand dynamic demand signals

Being nimble is key

Nimble organizations now need to develop processes where the system can help in forecasting the stock needed in a store in a particular location depending on the demand for the same, based on previous customer purchase and stocking patterns.

AI powers customer experience, supply chain, operations, query management, catalogue management, and more to make the processes efficient and cut costs.

Retailers will have to continuously innovate to address the changing external environment. There is a need to implement technologies that will disrupt retail. Increasing digital penetration has provided customers with easy access to e-commerce and there we 58 SEPTEMBER 2020

Organizations will need to have a two-pronged approach to maintain business continuity. One is technologyled and the other is people-led. For this, the key priorities will be to improve ways of working, putting emphasis on the fundamentals.

Technology will play a huge role in establishing speed in processes, and enable innovation and sustain business value.

While companies continue adopting to the new normal, the wellbeing of people needs to remain a top priority. IT support, physical infrastructure at home, healthcare support like on-call doctor consultations

and virtual wellness sessions by experts are a need of the hour.

Shared ideas, collaborative efforts

Through surveys, focus groups and workplace pages, associates need to share their sentiments and ideas in a collaborative effort with the leadership to set up the virtual workplace of the future. Office space requirements over the next two to three years will need to be re-factored, or rent-free periods extended so as to make businesses viable.

It is important to note that rapid and frequent downsizing of teams, reduction in salaries does keep the costs low, but at a city or country or global level, this creates a huge demand problem in a world where there is generally an oversupply of manufactured goods. Every action sets in motion downstream reactions.

The onset of this pandemic has caused a change in customer behaviour faster than what most brands could foresee. A few trends which we expect to develop in the near future are a shift to online platforms as well as increase to contactless methods of interaction, medical safety and physical distancing measures and more focus on purchasing essential products and daily staples.

During the pandemic, many organizations have accomplished what had previously been thought impossible.

Reassigning and reskilling

At Dubai-based Majid Al Futtaim (MAF), attendance at movie theaters fell (as a result of government-mandated closures) while demand for its online supermarket soared.

In a few days time, the company retrained several hundred ushers and ticket sellers to

RETAIL LANDSCAPE-POST PANDEMIC

Niranjan Gidwani, Independent Consultant Director and former CEO, Eros Group Niranjan Gidwani has over four decades of extensive senior management experience with a strong exposure to handling international business with working stints in India, Hongkong, Germany, Singapore and Dubai where he has now been domiciled for the past almost 30 years.

Gidwani has expertise in business from different vantage points including, general management, strategy and implementation, building and scaling up teams and processes, grooming future leaders, international business development, handling international start-ups, marketing, global sourcing of consumer).

work for the online grocer.

Without the crisis, that speed and magnitude of reskilling to leverage talent across MAF’s portfolio of companies would never have been contemplated.

In a few days, Unilever converted factory lines that were making deodorants into ones making hand sanitizer.

Overall, this new normal has pushed several organizations to adopt some changes much more quickly than they otherwise would have. In a week, companies went from having several thousand people working in offices to having several thousand people working from home, a shift requiring systems and policy transformation that under normal circumstances might have taken years.

Travel now is taboo

For the past 30 years, I used to fly to meet a customer, even if it took all day or more, for a few hours of meeting. Now, one is beginning to realize that the amount of time that goes into traveling is not necessary.

That’s the way people used to live, but that that model may most likely get disrupted, at least to a great extent.

It would be a good idea to adapt by booking ‘flight time’ into one’s schedule so as to avoid spending all day, every day, on video conference meetings. In either case, the Covid-19 experience has made it clear that senior executives must be extremely

mindful about how they use their time.

Some organizations are already relying on a two-speed model of decision making.

The CMT (crisis-management team) can handle all of the stuff around health, safety, employee confidence, and building client confidence.

That lets the rest of the organization focused on running the business. Also every two to three months, some members of the Crisis Management Team can be changed so as to avoid excessive burnout.

Case for structural changes

This can be a very reasonable model for nine to twelve months. The bigger question is, ‘How do we learn from this and evolve better for the future? What structural changes do we make?’”

One significant aspect of structural change that most organizations are grappling with is how much of a physical footprint their companies need, now that the ability to work virtually and productively has, by and large, been proved.

If companies do move to a more virtual model (50 percent or more virtual, up from 20 percent, for example), what does that mean for team building, compliance, distribution channels, and so on? Do we need so much of office space? Does every single mall need the same store of the same brand?

Only the next year to two years will determine the answer to this question.

SEPTEMBER 2020 59

REINFORCING CYBERSECURITY

Bolstering Cybersecurity capabilities during pandemic and beyond While the pandemic hit its peak, businesses across the globe had to make drastic changes to survive. What then are the implications and vulnerabilities in the digital world in adapting to the new cyber model? Gregory Garnier, Partner at Bain & Company Middle East and Syed Ali, Expert Partner at Bain & Company Houston, United States, examine the implications–Editor

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he pandemic has created more remote workers and, as a result, more attackers who seek to take advantage of that.

Owing to difficulties in arranging personal meetings and the inability to work with physical documents, most organizations adopted technological innovations and went digital.

Not only did the pandemic force most companies to embrace the new digital era, but approximately 70% of the companies rolled out work-from-home (WFH) for their employees.

This included increasing network connectivity to allow more people to connect simultaneously, shifting select workloads to the cloud to make access easier and faster, adopting new collaboration and productivity solutions like Zoom and Slack, and deploying devices like laptops along with peripherals. Unfortunately, while companies scrambled to keep their workers productive, there was a significant rise in cybercrime.

Even before the Covid-19 pandemic, few organizations had mature cybersecurity capabilities that could meet the mounting challenges posed by attackers. Research

by Bain & Company in the fourth quarter of 2019 found that executives at many companies overestimate the effectiveness of their cybersecurity and lack the strategic capabilities essential for a robust posture.

intensity on remote employees and other corporate assets.

Security teams have seen more attempts at intellectual property theft, particularly since late January 2020. APT41, a prominent cyberthreat group, reportedly targeted companies across industries in the US, UK, Canada and parts of the European Union and Middle East using recently disclosed vulnerabilities in major vendor systems. This was one of the broadest campaigns in recent years, and its aim was long-term espionage and surveillance.

With the digital ecosystem expanding almost daily, it is essential to protect customer information, intellectual property, sensitive communications and other data generated online. Organizations should take two sets of actions against cybercrime, the first to neutralize the threats to all companies that have adopted digital technology and the second to position themselves for the evolution of how work gets done after the pandemic.

A multidisciplinary task force is the most effective way to tackle WFH threats and improve resilience during the pandemic. The chief security officer should lead this effort, along with informed leaders with decisionmaking authority from various parts of the business, IT and cybersecurity, as well as audit, risk, compliance functions, legal and HR.

Susceptibility

Task Force

Instead of increasing cybersecurity, over 40% of large enterprises made moderate to significant reductions in IT budgets, and about 20% cut their security spending.

This made it easier for malicious entities to launch attacks with a greater frequency and 60 SEPTEMBER 2020

The task force should begin by characterizing groups of remote workers and partners based on their business role and level of access. All groups should be covered by a common set of modern security technologies and processes. However, high-risk groups,

Gregory Garnier, Partner Bain & Company Middle East.

Syed Ali, Expert Partner at Bain & Company Houston, USA. like the top leadership who perform mission-critical functions or employees that have the deepest system access such as DevOps teams, system administrators and application developers, need a robust complement of security.

Additionally, to avoid hacks, companies must also consider revising software and hardware technology standards, such as minimum specifications for employeeowned laptops, and lists of approved USB, HDMI and Bluetooth peripherals for remote workers. Strong cybersecurity involves much more than implementing technology.

Companies should perform ongoing activities like adjusting technology standards and offering security-awareness training that help maintain a security baseline for remote work. Finally, companies must also reevaluate the full complement of security capabilities as they permanently adjust operating models for the post-pandemic world. n