Page 1

GROWING sMaLL BusINesses

sHIPPING’s IMPaCT

DP World

Reinforcing trade

Hellman Healthcare Logistics A pharma solution

Lifting logistics EnhanCinG ThE buSinESS oF loGiSTiCS

The forklift

42 32 15

QaTaR - TOP PeRFORMeR

May 2014 Issue 04

,

THE FOOD

SUPPLY CHAIN an insight


THE WORLD IS OUR BUSINESS LET US TAKE CARE OF YOURS

London to Abu Dhabi, daily When Paul Owen needed to get machine parts to Abu Dhabi, he called Etihad Cargo. With 35 passenger flights we offer a total weekly capacity of 642 tons from London to Abu Dhabi and beyond. So whether it’s machine-parts or computers, visit www.etihadcargo.com for more information, or contact your local Etihad Cargo representative and we’ll take it from there.

Paul Owen, Freight Forwarder, London, UK


Food glorious food SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Director: Deepak Chandiramani Deepak@signaturemediame.com Managing Editor: Munawar Shariff munawar@signaturemediame.com Art Director: Raveendran Production Manager: Roy Varghese Roy@signaturemediame.com

Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai

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

This issue aimed to tackle a few important aspects affecting the food supply chain in the region. Well, as they say, what we’ve managed to get to is not even the tip of the iceberg. That’s not to say that what we’ve learnt is all bad. Just getting to know trends, challenges, news … we could do an entire dedicated food logistics magazine surely! From packaging at source, to materials used in packaging to knowing about biodegradable packaging materials, to being aware of the kinds of gases that are used in the packaging materials in order to keep food fresh, to transportation, different types of refrigerated vehicles, new innovations on that …. like I said it needs its own dedicated magazine. We’ve also looked at Hellman Healthcare Logistics’ end-to-end pharmaceutical supply chain, besides all the care that needs to be ensured for the safety of the products, on the back end the company invests heavily in training their staff in all product specific safety requirements. Within the company they liken handling their pharmaceuticals to dealing with patients, because that is the kind of seriousness and understanding that is necessary in taking optimum care of the drugs. On a completely different note, we have also done a piece on the forklift, possibly the most important machinery in a warehouse anywhere in the world. The earliest version of the forklift came to be during the years of the first world war and only because there was a shortage of men to lift heavy objects and put them from one spot to the other! Today there are a multitude of forklifts designed for hundreds of purposes around the warehouse. What would we ever do without them? Hopefully we won’t ever have to find out. On that note, I do hope you enjoy the issue. Munawar Shariff Managing Editor munawar@signaturemediame.com

May 2014 3


FRESHNESS GUARANTEED, EVERY TIME YOU FLY YOUR CARGO WITH US. QR FRESH — FOR PERISHABLES AND FRESH PRODUCE

QR Fresh is your solution for perishable products because we offer the most ideal conditions, every time.

For bookings and enquiries, contact us on qrfresh@qatarairways.com.qa or visit qrcargo.com


May 2014 Issue 04

ENHANCING THE BUSINESS OF LOGISTICS

36 04 News

36 Small businesses -

compete and grow

10 Qatar - Top growth

Survival of the fittest is definitely an understatement

performer

Qatar is one of the most economically successful countries in the GCC

15 DP World - reinforcing trading relationships

DP World is in growth mode

22 Food chain: an insight

Three perspectives on trends in the food supply chain industry

32 Doing drugs

Hellmann Caliper - equipped to deliver the pharmaceutical goods

10

42 Lifting the logistics industry

The forklift, what would we do without it?

22

48 The impact of shipping All you need to consider when planning your robust supply chain

53 Famco promotes Volvo lubricants

Famco goes the extra mile to convince clients of Volvo service lubricants

54 Air Arabia acquires new hub

Ras Al Khaimah Airport is the airline’s new hub

56 Unwind

42

A brief look at the many new costs associated in the food supply chain MAY 2014 5


Qatar Cargo flies dedicated route to Stansted Qatar Airways Cargo started operating its freighter service to Stansted (UK) recently. “Stansted is one of the largest freight hubs in the UK, which is why we are very happy to add Stansted to our network of more than 40 exclusive freighter destinations worldwide,” said Qatar Airways Chief Officer Cargo, Mr. Ulrich Ogiermann. The carrier will fly five times weekly to Stansted.

Qatar Airways Cargo is operating the Boeing 777 freighter to London Stansted. Stansted is London’s second largest airport for cargo. It transports over £8 billion (US $13.6 billion) worth of cargo every year, and accounts for approximately 13 per cent of all UK air freight. Qatar Airways Cargo recently strengthened its product portfolio with the launch in January 2014 of two new premium services that optimise the transportation of time and temperature-sensitive goods, including high-value pharmaceutical products and perishables. The new services, QR Pharma and QR Fresh, add to the company’s substantial range of cargo services and further enhance its capacity and flexibility to effectively move sensitive commodities in line with the highest world-class standards. On December 1, 2013, the first Qatar Airways Cargo shipment was received at the new cargo facility at Hamad International Airport. The enormous, state-of-the-art facility, spanning 55,000 sq metres, contains a perishables storage area, amongst other key facilities, such as a live animal centre and dangerous goods area. The new self-contained terminal will handle 1.4 million tonnes of cargo per annum.

Saudi businessman elected AULT Chairman The Arab Union of Land Transport (AULT) recently elected Saudi businessman, Abdullah Bin Ali Almajdouie, as Chairman of the Board during its General Assembly Meeting of the Union in Dubai. Abdullah Almajdouie, who is a transport leader in the region, manages one of the largest transportation and logistics companies in the Kingdom of Saudi Arabia – the Al Majdouie Group. The AULT established in 1976, with headquarters in Jordan, cooperatively unites

6 MAY 2014

representatives of land transport companies from 14 countries within the GCC. Furthermore, AULT is one of the most important specialised unions that work under the umbrella of the Council of Arab Economic Unity, which aims at developing the transport sector in the Arab world, technology transfer and the development of transport practitioners through the integration of the union members in international organisations and unions working in the field.


DP World profits grow

DP World Chairman HE Sultan Ahmed bin Sulayem and Algeria’s Minister of Transport HE Amar Ghoul during their meeting in Algiers.

DP World highlights successful investment in Algeria DP World Chairman HE Sultan Ahmed bin Sulayem met with Algeria’s Minister of Transport HE Amar Ghoul to discuss DP World’s successful continued investment in Algeria. DP World was awarded the concession to operate the container terminal in the Port of Algiers, DP World Djazair, in 2008. DP World Djazair is a joint venture between DP World and the Algiers Port Authority (EPAL). DP World also operates DP World Djen-Djen to the east of the capital city. Since DP World Djazair was established, DP World has brought in new equipment and specialised training for its staff to improve efficiency and productivity, actively contributing to the continued expansion of the economic growth of Algeria. In January this year, further investment began, with DP World beginning a two year programme that will see further upgrades to the infrastructure at DP World Djazair with

the introduction of modern container handling equipment, including state of the art ship-toshore container handling cranes to service vessels and rubber tyred gantry (RTG) cranes for the container yard. The Algiers Port Authority has begun refurbishing the yard to prepare for the arrival of the new equipment, while DP World Djazair will rebuild the shipside berths to accommodate the container cranes, as well as repair three berths to improve efficiency, safety and security. With a strong emphasis on investing in staff development and training, DP World has already implemented a programme to upgrade staff facilities and is creating a long term programme to train and develop staff at all levels. The company is also instituting performance incentive programmes that reward the workforce for higher performance throughout the terminal with a share in its profitability.

At their recently held Annual General Meeting for 2013, DP World Chairman Sultan Ahmed Bin Sulayem stated, ““DP World Limited handled 14.3 million TEU (20-foot equivalent units) across its global portfolio of container terminals during the first quarter of 2014, with gross container volumes growing by 10.5 per cent on a like-forlike (1) basis. On a reported basis gross volumes grew by 11.6 per cent as new volumes from London Gateway (UK) and Embraport (Brazil) contributed to the portfolio, benefitting the reported numbers. “First quarter growth was largely driven by an improved performance from our Asia Pacific, India and UAE terminals, with Europe continuing to show signs of improvement. The UAE delivered a very strong quarter handling 3.6 million TEU, representing growth of 17.5 per cent. “At a consolidated (2) level, our terminals handled 6.8 million TEU during the first quarter of 2014, a 12.8 per cent improvement in like-for-like (3) performance. On a reported level, consolidated volumes showed slightly softer growth at 9.1 per cent due to the divestment of CT3 (Hong Kong) in March last year. “As anticipated, we have seen a return to volume growth in 2014 due to the addition of new capacity and a pick-up in global trade in the first quarter. We are encouraged by the volumes handled at our flagship Jebel Ali port, with the 1 million TEU expansion of Jebel Ali’s Terminal 2 contributing to the strong result. The addition of 4 million TEU capacity with Terminal 3 opening this year will ensure we are well placed to handle future capacity demands in Dubai. “Our key developments at Nhava Sheva (India) and Rotterdam (Netherlands) remain on schedule for delivery and we recently commenced construction at Yarimca in Turkey, where we anticipate adding approximately 0.8 million TEU capacity in the second half of 2015. “Overall, we are very pleased by the portfolio’s first quarter performance which shows we have the right capacity in the right locations. Despite a solid s container 1) Like for like gros justs for new start to the year, macrovolume growth ad ort (Brazil) ap economic conditions br capacity at Em ay (UK). across some locations and London Gatew remain uncertain, minals are 2) Consolidated ter ve control however, we believe we those where we ha S. IFR r are well positioned to de as defined un ted da oli outperform the market ns co e lik 3) Like for ts for the jus which is forecast to grow at ad th ow gr e volum 3 (Hong Kong) approximately five per cent divestment of CT at London y in 2014. cit pa and new ca . K) (U Gateway MAY 2014 7


Etihad Airways won three awards at this year’s World Travel Awards Middle East, including Middle East’s Leading Airline.

Etihad awarded region’s leading airline

Etihad Airways was named the Middle East’s Leading Airline for the eighth consecutive year at the World Travel Awards Middle East. The prestigious accolade was one of three awards won by Etihad Airways at a special gala ceremony in Dubai. The airline was also named the Middle East’s Leading Airline – First Class and the Middle East’s Leading Cabin Crew. The year also saw Etihad Airways achieve its third consecutive net profit,

up 48 per cent to US$62 million, underpinned by record passenger numbers, freight volumes and revenues. The success at the World Travel Awards follows another triumph for the airline this week. At the 2014 Business Traveller Middle East Awards, Etihad Airways took home the titles for Airline with the Best Economy Class and Airline with the Best Frequent Flyer Programme.

Hamad International Airport, Doha opens Qatar’s new Hamad International Airport (HIA) recently welcomed arriving passengers for the first time to the world’s newest aviation hub. A Qatar Airways flight was the first to officially land on the east runway. The flight carried the Minister of Transport, the board members of the Steering Committee of NDIA and

8 MAY 2014

other delegates and received a water salute by the Qatar Civil Aviation Authority Rescue Fire Fighting Services. Ten carriers commenced operations out of the new passenger terminal at HIA, with the remaining carriers, including national carrier Qatar Airways, expected to move to the new airport by May 27, 2014. “It’s capacity on opening day will be 30 million annual

passengers, which is more than the initial plan. Initial capacity was expanded to accommodate the increased transit growth in Qatar over the course of the past decade,” said H.E. Mr. Abdul Aziz Mohammad AlNoaimi, Chairman of the NDIA Steering Committee. HIA and Airport City (together comprising the NDIA project) span 29 sq kilometres, 60 per cent on

land reclaimed from the Arabian Gulf. The project includes 100 buildings of various uses. The Passenger Terminal features a massive internal area of 600,000 sq metres and has three concourses and 33 contact gates, which will subsequently be increased to five concourses and 65 contact gates, including eight for the A380, in the final build-out.


Emirates validated for EU-initiated security standards

The ACC3 certificate is presented to His Highness Sheikh Ahmed bin Saeed Al-Maktoum and to Tim Clark. Also in photo are: (from left to right) Joss D Silva, Manager, Security Facilities & Risk Management; Zack Zainal, Divisional Vice President, Group Security; Dr. Abdulla Al Hashimi, Divisional Senior Vice President, Group Security; and Rabie Atie, Vice President, Transguard. Emirates recently successfully completed the validation process for the European Union-initiated ACC3 security regulation, becoming the region’s first air carrier to do so. ACC3 is short for ‘Air Cargo or Mail Carrier operating into the Union from a Third Country Airport.’ The validation ensures Emirates SkyCargo’s uninterrupted services into the EU. Through close collaboration between Emirates Group Security and SkyCargo, Emirates completed the ACC3 security validation at the Dubai hub before the deadline of July 1, 2014. Failure to complete the validation would have potentially prohibited Emirates from transporting cargo into the European Union – severely disrupting SkyCargo’s operations. Emirates’ air cargo business accounts for over 15 per cent of the airline’s total transport revenue. Commenting on this achievement, Dr

freighter flights direct to the European Union. Working with law enforcement stakeholders and business units, Emirates Group Security has spearheaded the validation task. We take pride in the fact that we’re the first carrier in the region to complete this ACC3 requirement.” An approved, independent inspector reviewed the air cargo processing and security measures in place at SkyCargo’s facility in Dubai. The Department for Transport of the United Kingdom of Great Britain granted Emirates’ ACC3 status on behalf of the EU. The EU introduced ACC3 regulation in 2012 requiring carriers to meet EUstandards on cargo screening measures; documentation; identification and processing of high-risk cargo; and staff recruitment as well as training. Emirates is set to obtain ACC3 validation at additional airports from which Emirates operates direct flights into the EU before the July deadline. With the transport of air cargo being such an important commercial aspect of Emirates’ core business, Emirates Group Security places the highest importance to protecting and safeguarding the company’s cargo interests.

Abdulla Al Hashimi, Emirates’ Divisional Senior Vice President-Group Security said, “We placed the highest priority on the inspection and validation of our cargo operations in Dubai being the hub for our operations. Emirates is seeking similar validation at other stations from where Emirates regularly operates

Emirates to start services to Brussels Emirates will commence a daily service to Brussels, Belgium, from September 5, 2014. Brussels will be Emirates’ 147th destination. Ranked as one of the world’s top 20 trading nations, Belgium is a key cargo hub with exports accounting

for a significant percentage of the country’s GDP. Key export commodities which Emirates SkyCargo expects to transport include; pharmaceuticals, automotive spare parts, chocolates, machinery and equipment and electronics. Imported air freight is also

expected to be considerable. Brussels will be the eighth new destination from Emirates this calendar year following the earlier launches of Kiev, Taipei and Boston as well as Abuja and Kano launching on August 1, Chicago launching on August 5 and Oslo on September 2.

MAY 2014 9


QATAR

Top growth performer

10 May 2014


Country report

Trends and Challenges for Logistics in Qatar GDP and Federal Finances GDP growth in 2012 was highreaching5.8%. Government authorities expect 2013 growth to be ~4.8% Qatar’s economy grew in 2012 thanks to a 9.3% rise in the non-oil and gas economy over the full year, as well as elevated LNG prices Total budgeted fiscal expenditure was ~$49 billion for 2012.The actual expenditure for H1 2012 was ~$19.3 billion Despite the difficult global economic scenario, financing of infrastructure projects continued. The government sovereign wealth fund, the Qatar Investment Authority, assisted with funding whenevercredit unavailability threatened the projects’ timely progress Facilities are also being developed with a perspective of hosting the 2022 FIFA World Cup, the country is preparing itself for an around $60 billion construction boom Traditionally Qatar has used loans and bonds to finance economic development projects FDI Confidence and Competitiveness Qatar demonstrates solid growth, with plans to spend around $80 billion on construction of buildings and around $60 billion on energy related projects $60 billion-plus are to be invested for the 2022 World Cup and around $18 billion to develop petrochemical and industrial projects and schemes Qatar is ranked 11thin the World Economic Forum’s 2012-2013 Global Competitiveness Index, up from 14thin 2011-2012 Development Outlook Expectations for annual GDP growth are around 6% in the coming years, putting Qatar within the top Middle East economic growth performers. The operating environment remainedpositive for infrastructure developments with projects being executed across the country. The transport sector registered a growth of 15% in 2012 The government continues to invest in the country’s transport infrastructure and in diversifying the economy mainly through the development of natural gas resources and gas-based industries The inter-modal balance has gradually adjusted to reflect the country’s development while strong investments in the transport infrastructure will persist. In addition, the government will continue to favor state and private sector partnerships in the freight transport business Qatar is working to develop infrastructure to absorb the huge influx of visitors for the 2022 FIFA World Cup event Nearby regional political instability has the potential to adversely impact foreign investments, development potential and waterway access

Infrastructure Investment Outlook Qatar plans to make large investments in improved infrastructure in order to host the FIFA world cup in 2022 Along major investments in ports, airport, rail and roads, the government allocated fundsfor the tourism development which will include new stadiums and increased hotel capacity

May 2014 11


Logistics Projects and Outlook SEA Overview There are around $5billionplanned spending on a new deep sea port development Qatar has three portswith different purposes. The new port at RasLaffan has LNG berths, liquid-product berths, container and solid cargo berths which serve the gas industry, the Massaieed port handles the bulk of industrial goods and oil, and the Doha deep-water port serves as a container and transshipment point RasLaffan Port This project provides the expansion of berths and infrastructure to handle growth in liquefied natural gas exports, dredging, land reclamation and new breakwaters The port needs to follow the expected expansion of the RasLaffan Industrial City, which should nearly double in size by 2015 The beginning of the expansion phase includedthe largest dredging operation in history, where 20 million cubic metres of sand was reclaimed and 21 kilometers of breakwater was built The expansion included alsobuilding five new LNG berths, four small tanker berths, navy/coastguard and tug berths, container exports berths and onshore infrastructure,

12 May 2014

including electrical power distribution Expected overall budget: ~$3.5 to $3.8 billion Umm Said / Mesaieed Port (New Doha Port) Located at Masaieed, south of Doha, 5-kilometreeast of Doha International Airport, this new port is intended to replace the Doha Port downtown while supporting the local industrial development The port development is based on different phases. The first phase of the New Doha port will accommodate 2 million TEUs. It is also designed to accommodate larger ships The project is set to completion in 2016, phases two and three will take place after 2022, to expand the port in line with demand for capacity The Gabbro terminal will also be expanded and a new jetty for export of liquefied petroleum gas will be developed The cost of the new port is expected to be $7bn covering 26.5 square kilometres and including the construction of a naval base and an economic zone The existing port in Doha’s city centre is capable of handling up to 300,000 containers a year and this new port is intended to replace Doha Port


Country report

AIR Overview Qatar plans to spend about ~$17.5 billion on a new airport and ~$1 billion on a crossing between the airport and northern Doha The aviation sector is already thinking beyond 2022. The construction of New Doha International airport is as much about supporting Qatar Airways’ expansion plans as it is about transporting World Cup-related traffic Passenger traffic at the current Doha airport is increasing at roughly 14% a year, driven by Qatar Airways’ rapid growth

Doha International Airport The first phase of the Doha International Airport is expected to open by mid-2013 The project’s first phase will bring capacity to 24 million passengers a year and will create 42 contact gates, 6 of which will be dedicated to the Airbus A380 The New Doha International airport will be able to assist to a certain extent in importing cargo into Qatar When complete, the airport is expected to handle 50 million passengers a year, along with 2 million tonnes of cargo and 320,000 aircraft landings and take-offs

RAIL Overview Up to~$40 billion is expected to be spent on developing the country’s rail lines per Qatar rail and Qatar Development Bank. In case the Bahrain-Qatar Causeway is constructed, Qatar could further strengthen its regional economic and logistics position Qatar Integrated Rail Project The ~$35 billion nationwide rail and metro network is expected to conclude in 2026, although the sections necessary to host the world cup in 2022 should be ready by 2020 It will have 643-kilometres, 318-kilometres of metro lines within the greater Doha area and 325-kilometres of ground rail network The project will contain passenger and freight railway linking RasLaffan and Mesaieed via Doha, a high speed link between the New Doha Airport, Doha City Center and Bahrain, the Doha Metro, and a light rail people mover in Lusail, Education City and Westbay The high speed link is expected to complete in 2017 and the first of the four lines of the

metro network is due to be operational in 2019 Initially, Qatar Railway Development Company (QRDC) was the authority in charge. In 2011, the responsibilities of QRDC were transferred to a new entity, QRail Following the restructuring, QRail reordered the planned construction phases of the integrated rail plan, deciding to prioritize the 300km Doha metro project Doha metro green, red and golden line are expected to be awarded for tunneling in 2013 as well as the Msheireb station’s and the 30km Lusail light rail network’s construction Bahrain-Qatar Causeway The recently redesigned causeway is expected to connect the western costal region of Qatar with eastern Bahrain (the so-called 40-kilometre ‘Friend-ship Bridge’) It will carry four vehicle lanes and two railway tracks between the two countries It is planned to be finished before the World Cup in 2022 with an expected budget of ~$2.9 billion

ROAD Overview Qatar has a paved network of 1,160-kilometres, linking Doha to major industrial, gas and oil developments $30 billion is to be set aside to develop and upgrade the national road network to support industry and tourism Bus Rapid Transit (BRT) System The project includes special lanes for buses

parallel to the Salwa Road and the Industrial Area Local Roads and Drainage Program (LRDP) Qatar’s Public Works Authority will be overseeing the development of 136 kilometer of new roads by 2014, and upgrading others The complete program is valued at $14.6 billion, with the construction of roads expected to complete by 2014

May 2014 13


Country report

International airport City

Airport Name

Doha

Doha International Airport

Annual Cargo (kilo-tons per year)/ % change vs. prior year

Annual Passengers (thousands)/ % change vs. prior year

Year

Throughput

% change

Year

Throughput

% change

2012

827

3.91

2012

-21,163

16.87

Other airport Al Khor Airport

Major seaports City

Doha

Port Name

Major Terminal Operators

Doha/Umm Said

Annual Containers (thousand TEU)/ % change vs. prior year

N/A

Year

Throughput

% change

2011

-510

7.4

Other seaports RasLaffan Port, Umm Said / Mesaieed Port

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Major Products

Food Products



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14 May 2014

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Port rePort

DP WORLD reinforcing trading relationships UAE’s premier port operator DP World’s Group CEO, Mohammed Sharaf speaks about current status of business and details of developments taking place in its numerous operations across the world

May 2014 15


Port rePort

Kindly give us an overview of the entity DP World in the last five years till date. DP World has a portfolio of more than 65 marine terminals across six continents, including new developments underway in India, Africa, Europe and the Middle East.

This is very evident in the UAE where over the past 35 years throughput at our flagship Jebel Ali facility in Dubai has grown in lockstep with the UAE’s GDP growth. 16 May 2014

Container handling is our core business and generates more than three quarters of our revenue. In 2013, we handled 55 million TEU (twenty-foot equivalent container units). With our committed pipeline of developments and expansions, capacity is expected to rise to more than 100 million TEU by 2020, in line with market demand. DP World has a dedicated, experienced and professional team of 28,000 people serving customers around the world, and we constantly invest in terminal infrastructure, facilities and people to provide quality services today and tomorrow, when and where customers need them. In taking this customer-centric approach, we are building on the established

Mohammed Sharaf, CEO, DP World’s Group

relationships and superior level of service demonstrated at our flagship Jebel Ali facility in Dubai, which has been voted “Best Seaport in the Middle East”for 19 consecutive years. In numbers how are the last five years different? Over the last five years there has been extreme volatility in world markets and economies. However, because our average concession length is around 40 years, we have long term


Port rePort

horizons and continued to invest during that time to increase capacity in existing and new markets. Over that period, we invested over US $6 billion in our portfolio and our three year capex plan for 2012-2014 stands at US $3.7 billion. We are on schedule to have 100 million TEU capacity by 2020, up from our current 70 million TEU capacity. In terms of throughput, we handled 47 million TEU in 2008, and in 2013 we handled 55 million TEU. How have capacities at DP World contributed to the overall success of the economy? It is our experience that modern, efficient infrastructure contributes significantly to

economic growth by connecting traders to markets and reducing the time and cost of the supply chain. As businesses grow, so does the economy – jobs are created, communities benefit and the country benefits as a whole. This is very evident in the UAE where over the past 35 years throughput at our flagship Jebel Ali facility in Dubai has grown in lockstep with the UAE’s GDP growth. What challenges have been most demanding and which achievements most noteworthy? As mentioned, in recent years the global economy has been dominated by continued uncertainty. Many of the major economies have shown signs of start-stop growth which

continued to impede progress towards a more broadly supported growth trajectory. Emerging and developing economies provided much of the growth last year although the pace was slower than previously. Our strong financial performance in 2013 came despite muted volume growth. Economic headwinds combined with a highly utilised portfolio with limited spare capacity at key locations constrained our ability to significantly grow volumes in 2013. However, the addition of new capacity in 2014 combined with a projected improvement in global trade sets a promising tone for the year ahead. We continue to focus on delivering efficiencies, containing costs and handling

May 2014 17


Port rePort

higher margin containers to drive profitability. As the third largest port operator in the world and the only one with a presence on six continents, our business is well positioned for growth and we believe we are well placed to continue to outperform the market. What does the India operation add to the overall equation? The UAE and India have strong trading links historically and it remains a major market for us. We have the largest presence of any container terminal operator in India, operating five terminals. We are currently building a new terminal at Nhava Sheva and have a development project also in Kulpi. How important are international port operations? Vital. Ports contribute to a country’s GDP and by connecting markets they cut living costs and raise living standards. They also reinforce trading relationships. Approximately 90 per cent of the world’s merchandise and commodity trade is transported by sea. Around 60 per cent of the value of global seaborne trade more than US $5.6 trillion worth of goods annually is transported by container vessels. (World Economic Forum – the Global Enabling Trade Report 2012). Ports support economic diversification by aiding the growth of other sectors, generating employment. For every job created inside a well-run port up to five jobs are created outside. They also build knowledge and expertise so increasing competitiveness of a country.

Over the course of 2013, we spent US $1,063 million in capital expenditure, predominantly at our greenfield DP World London Gateway port and logistics park project in the UK, Embraport (Brazil) and the expansion of our flagship Jebel Ali facility in the UAE. 18 May 2014

In terms of infrastructure investments, what is on the agenda for the UAE and the rest of the world? UAE The UAE recorded the best year in its history in 2013 with 13.6 million TEU handled. This underlines the growth not only of Dubai but also the UAE and the wider region it serves. We added one million TEU of capacity at Jebel Ali in the middle of last year and by year end we were back at almost 90 per cent capacity utilisation. We are on track to deliver the four million TEU capacity Terminal 3 (T3) this year bringing total capacity at Jebel Ali to 19 million TEU. Elsewhere … Our investments are focused on ensuring that we have the right capacity in the right locations

and the right services to meet our customers’ needs today and tomorrow. The opening of additional capacity was supported by the implementation of the latest technology across our portfolio, to speed up our customers’supply chains and bring goods more swiftly to market. We continue to invest in our portfolio for future growth. Over the course of 2013, we spent US $1,063 million in capital expenditure, predominantly at our greenfield DP World London Gateway port and logistics park project in the UK, Embraport (Brazil) and the expansion of our flagship Jebel Ali facility in the UAE. These projects, consistent with the overall nature of our portfolio, are long-term investments. Our strong cash flows and solid balance sheet mean we are well placed to


Port rePort

invest today to meet the long-term needs of our customers whether it is in developed markets requiring increased efficiencies or the capability to handle the increasing size of vessels or in developing markets requiring increased port capacity to meet demand or dated infrastructure. As mentioned, in 2013 DP World London Gateway port opened for business, providing the most efficient link between deep-sea shipping and the largest consumer markets in the UK. We are seeing an increasing number of shipping lines calling at our facility and since the turn of the year we have had eight unscheduled calls at DP World London Gateway, including an Asia-Europe service, as our port was less impacted by adverse weather due to its sheltered location. In faster growing markets, we have invested

in the largest multi-modal terminal in Brazil (Embraport), which is in the port of Santos, 80 kilometres away from Sao Paulo, the country’s most populous city. Our terminal has seen encouraging demand since opening as the growth of the middle class population in Brazil and wider region continues to drive demand for containerised goods. In 2014, we look forward to adding further capacity at Jebel Ali and Rotterdam. We are making good progress with T3 at Jebel Ali and it remains on track to deliver four million TEU of additional capacity. Rotterdam is on schedule to open in the second half 2014. The 330 metre terminal development in Nhava Sheva, India will add around 800,000 TEU in 2015. This capacity is much needed as the port remains capacity constrained. This

new capacity will help alleviate this. We also continue to see opportunities in high growth emerging markets such as Africa, Central and South America and Asia. What deadlines have to be met before Expo 2020? We were delighted to be a premier partner of Dubai’s Expo 2020 bid. Our entire team was behind the bid and we are excited and proud that it was successful. Our attention now turns to making sure we have the infrastructure in place to support this event, and we will be working very closely with our customers to achieve this goal. The expo will not only create opportunities for the UAE, it will also create new opportunities for other countries in the region and for people across the world.

May 2014 19


‫ما هي التحديات األكثر تطلبا واإلجنازات وتيرته كانت أبطأ مما كانت عليه في السابق‪.‬‬ ‫األكثر بروزا؟‬ ‫جاء أداؤنا املالي قويا في عام ‪2013‬‬ ‫كما ذكرت لك من قبل‪ ،‬في السنوات‬ ‫على الرغم من النمو املكتوم في احلجم‬ ‫األخيرة هيمن عدم الوضوح والشك على‬ ‫والسعة‪ .‬الرياح املعاكسة االقتصادية ترافقها‬ ‫االقتصاد العاملي‪ ،‬إال أن االقتصادات الكبرى‬ ‫لدينا قدرات مناولة مستخدمة بكفاءة‬ ‫بدأت تظهر اآلن العديد من عالمات النمو‬ ‫عالية ومبعدل كبير‪ ،‬مع سعة محدودة وطاقة‬ ‫االقتصادي املتردد ما بني النمو واالنكماش‪،‬‬ ‫انتاجية محدودة في املواقع األساسية ملوانئ‬ ‫مما أدى إلعاقة النمو وعرقلة التقدم نحو‬ ‫دبي العاملية‪ ،‬كل هذه عاقت قدرتنا على‬ ‫منو كبير‪ .‬على اجلهة األخرى‪ ،‬أظهرت‬ ‫زيادة السعات واألحجام في عام ‪ 2013‬كما‬ ‫االقتصادات الناشئة والنامية الكثير من مظاهر كنا نريد لها‪ .‬على أي حال‪ ،‬ستؤدي زيادة‬ ‫النمو في العام املاضي على الرغم من أن‬ ‫السعات وإضافة القدرات اجلديدة في عام‬

‫‪ 2014‬وباإلضافة إلى التحسن املتوقع في‬ ‫التجارة العاملية‪ ،‬ستؤدي إلى حتقيق زيادة‬ ‫كبيرة في كل املؤشرات التجارية لهذا العام‪.‬‬ ‫نحن نواصل التركيز على تقدمي الكفاءات‬ ‫وخفض التكاليف والتعامل مع احلاويات‬ ‫ذات الهامش الربحي األعلى لزيادة الربحية‪.‬‬ ‫باعتبار شركتنا ثالث أكبر مشغل للموانئ في‬ ‫العالم‪ ،‬والوحيدة ذات الوجود في القارات‬ ‫الستة‪ ،‬تسير أعمالنا بشكل جيد نحو النمو‪،‬‬ ‫ونحن نعتقد أننا في وضع جيد ملواصلة‬ ‫تفوقنا في السوق‪.‬‬


‫موانئ دبي العاملية ‪ -‬تعزيز‬ ‫العالقات التجارية‬

‫محمد شرف‪ ،‬الرئيس التنفيذي للمجموعة الدولية لشركة موانئ دبي العاملية‪،‬‬ ‫يحدثنا عن الوضع احلالي لسير األعمال بالشركة‪ ،‬ويروي لنا تفاصيل التطورات‬ ‫األخيرة التي جتري في العديد من عملياتها في جميع أنحاء العالم‪.‬‬ ‫س‪ :‬هل لك أن تعطينا حملة عامة عن أداء‬ ‫موانئ دبي العاملية في السنوات اخلمس‬ ‫‪.‬املاضية وحتى اآلن‬

‫حاليا أكثر من ‪65‬‬ ‫موانئ دبي العاملية لديها ً‬ ‫ميناء ومحطة بحرية موزعة في قارات العالم‬ ‫الستة‪ ،‬مبا في ذلك التعاقدات اجلديدة اجلارية‬ ‫في الهند وأفريقيا وأوروبا والشرق األوسط‪.‬‬ ‫مناولة احلاويات هي عملنا األساسي والتي‬ ‫جتلب أكثر من ثالثة أرباع اإليرادات لدينا‪.‬‬ ‫في عام ‪ ،2013‬تعاملنا مع ‪ 55‬مليون حاوية‬ ‫(حاويات ذات حجم عشرين قدما) ‪ .‬بفضل‬ ‫خطة التطوير والتوسعة اجلارية‪ ،‬من املتوقع أن‬ ‫ترتفع سعة املناولة إلى أكثر من ‪ 100‬مليون‬ ‫حاوية بحلول عام ‪ 2020‬متاشيا مع زيادة‬ ‫الطلب في السوق‪.‬‬ ‫يعمل لدى موانئ دبي العاملية فريق‬ ‫متخصص من ذوي اخلبرة واحملترفني‪ ،‬يربو‬ ‫عددهم على ‪ 28‬ألف موظف وعامل‪،‬‬ ‫يخدمون عمالء الشركة في جميع أنحاء‬ ‫العالم‪ .‬نحن نحرص على أن نستثمر بشكل‬ ‫مستمر في البنية التحتية للمحطات واملرافق‬ ‫والعاملني‪ ،‬لتقدمي خدمات نوعية حالية‬ ‫ومستقبلية‪ ،‬في املكان والزمان الذي يحتاج‬ ‫العمالء فيه خلدماتنا‪.‬‬ ‫عن طريق تبني هذه املقاربة املرتكزة‬ ‫على العمالء‪ ،‬فنحن فعليا نعزز العالقات‬ ‫احلالية مع العمالء ونقدم لهم مستوى متفوقا‬ ‫من اخلدمة‪ ،‬ويظهر ذلك جليا في موقعنا‬ ‫الرائد في منطقة جبل علي في دبي‪ ،‬والذي‬

‫مت اختياره كأفضل ميناء بحري في الشرق‬ ‫األوسط ملدة ‪ 19‬سنة متتالية ‪.‬‬

‫باألرقام‪ ،‬كيف اختلفت السنوات‬ ‫اخلمس املاضية عما قبلها؟‬

‫على مدى السنوات اخلمس املاضية‪ ،‬كان هناك‬ ‫تقلب شديد في األسواق العاملية واالقتصادات‬ ‫الدولية‪ ،‬ومع ذلك‪ ،‬ألن لدينا خبرة عملية‬ ‫اكتسبناها من قرابة ‪ 40‬عاما من العمل‪،‬‬ ‫فلدينا خطط مستقبلية ذات مدى طويل‪ ،‬كما‬ ‫واستمرينا في االستثمار خالل تلك الفترة‬ ‫لزيادة قدراتنا في األسواق القائمة واجلديدة‪.‬‬ ‫خالل هذه السنوات اخلمسة‪ ،‬استثمرنا أكثر‬ ‫من ‪ 6‬مليار دوالر في مجموعتنا‪ ،‬وتقف‬ ‫إجمالي النفقات الرأسمالية ملدة ثالث سنوات‬ ‫في خطتنا لعام ‪ 2014-2012‬عند حد ‪3.7‬‬ ‫مليار دوالر أمريكي‪ .‬نحن نسير وفق اجلدول‬ ‫الزمني لبلوغ سعة ‪ 100‬مليون حاوية بحلول‬ ‫عام ‪ ،2020‬بزيادة من السعة احلالية التي تبلغ‬ ‫‪ 70‬مليون حاوية‪.‬‬ ‫من حيث اإلنتاجية‪ ،‬نحن تعاملنا مع ‪47‬‬ ‫مليون حاوية في عام ‪ ،2008‬بينما في عام‬ ‫‪ 2013‬تعاملنا مع ‪ 55‬مليون حاوية وهي‬ ‫زيادة جيدة جدا‪.‬‬

‫كيف ساهمت سعات موانئ دبي العاملية‬ ‫في جناح االقتصاد؟‬ ‫من واقع جتربتنا‪ ،‬تساهم البنية التحتية‬ ‫احلديثة عالية الكفاءة بشكل كبير في النمو‬

‫االقتصادي من خالل ربط التجار باألسواق‬ ‫وتقليل الوقت والتكلفة الالزمني لسلسلة‬ ‫التوريد‪ .‬بينما تنمو األعمال والصناعات‪،‬‬ ‫كذلك ينمو االقتصاد – حيث يتم توفير‬ ‫املزيد من فرص التوظيف‪ ،‬فتستفيد‬ ‫املجتمعات والبالد ككل‪ .‬هذا األمر يبدوا‬ ‫واضحا جدا في دولة اإلمارات العربية املتحدة‬ ‫حيث عملنا على مر ‪ 35‬سنة ماضية في‬ ‫موقعنا الرائد في منطقة جبل علي في دبي‪،‬‬ ‫وزادت أعمالنا بشكل وثيق مع منو الناجت‬ ‫احمللي اإلجمالي لدولة اإلمارات‪.‬‬


22 May 2014


Cover story

FOOD CHAIN:

an insight Since 90 per cent of the food in the UAE is imported from outside, international food supply chains affect the local scene in a big way. Global Supply Chain got three different perspectives of trends influencing the way in which our food reaches our tables

T

here are a hundred topics trending today when it comes to food. Be it the world’s obsession with eating healthy, fresh and organic … to the millions of intolerances and allergies from consumption. Food today may or may not be the real thing. But that’s a whole new dimension warranting a dedicated article on its own. Whether food is real or not, whatever is the demand of the season is what is the focus of all the many links in the chain is on. The specific product is what creates the entire industry. With the major preferences of the hour including fresh, healthy, organic … all demanding a new set of packaging material, a new way of handling and distribution, transportation and storage, basically the supply chain changes and evolves as per the food demand of the season. Three industry experts give us their insights into their areas of expertise - Paul Maycock, General Manager, INL Logistics; PK Menon a global logistics expert and ambassador and Tim Ansell, Sales Director at Al Thika Packaging.

May 2014 23


Cover story

Food handling and distribution Paul Maycock, General Manager, INL Logistics What trends can you identify as becoming prominent in the food supply chain? What factors have led to its prominence? Demand for food products in the GCC has risen year on year with the increase in population and tourism and the Increasing number of hypermarkets, supermarkets, discount stores coupled with increasing demand for processed foods, dining out and a preference for quick meals, including fast food and readyto-eat foods has increased the need to have robust food service logistics operations. Over 90 per cent of the food in Dubai is imported which means food service logistics represents an enormous commercial opportunity by staying informed and harnessing the very latest technology that will keep us ahead of the demands but we must focus on squeezing efficiency and profit from increasingly complex supply chains. How do global trends influence the way the food supply chain makes its course within the region? Global trends heavily influence the supply chain due to being heavily dependent on imports to meet their consumption needs and limited domestic production combined with being exposed to hikes in global food prices due to external factors, GCC food prices have increased every year over the last decade which is then difficult to pass on to the end consumer and affects the profit margin of the companies operating in the region which then in turn reduces growth. How are things evolving and improving as technology and other infrastructural improvements are implemented as an integral part of the food chain? Here at Integrated National Logistics we have a state of the art logistics operation with the latest technology using a fully automated multi temperature storage and

24 May 2014

handling solution, we are able to provide speed and accuracy to the end customer, we have 42,000 high bay fully automated pallet positions which are divided into chambers so that we control different temperature requirements, cross contamination, product recall, product expiry in line with HACCP requirements. We have to move with the times and I believe that the automated storage solution is the way forward when it comes to a food service solution.

What in your opinion is a big part of the food chain which needs to change immediately and which could enhance the food supply chain in a big way here? A regional rail network would improve the movement of freight across the region which would reduce operating cost, provide speed to market, reduce the number of vehicles on the roads and maintain the cold chain within the food service sector.


Cover story

Food packaging perspective Tim Ansell, Sales Director, Al Thika Packaging

As we move towards a more nutritionally aware consumer demanding food which is fresh/organic/ specific to diet requirements – such as people with food intolerances that are growing day by day – how is this going to impact the food chain in the short and long term? People are becoming more health conscious and adopting a healthy lifestyle demands for healthy alternatives are expected to increase,

The organic and Halal food industry has grown with pace over the last couple of years and today’s consumers is better equipped with product information which has changed their shopping habits to a greener healthier basket mix. Manufactures and big food retailers are aware that today’s consumer have become more informed of dietary requirements, healthy eating and the benefits of organic produce and the supply chain product mix will change over time to service this demand.

In recent years we’ve seen major growth in the areas of prepackaged foods, in particular for sliced fruits and mixed salads, and this has led to an increase in demand both for the machines on which they are packed – vertical baggers, horizontal flow wrappers, and tray sealers etc. – and also in more complex barrier films. Fresh cut products obviously degrade quickly once packed, so modified atmosphere packaging (MAP) allows for the use of inert gases within the packaging to reduce the rate of decay and thus extend shelf life. Producers need to work closely with machinery, gas and packaging film suppliers, to ensure that those three essential parts of the packaging process work well together. Just this year we are witnessing a surge in interest in MAP for sandwich packing which although not uncommon in Europe, is only now coming to the attention of Middle East consumers. We are fortunate to be working with Proseal, one of the world’s leading manufacturers of automatic and semi automatic heat sealing machines, and they have specific expertise in the area of sandwich packing. Again, though the technology is available, customers need to take into consideration the additional cost of specialist materials – traditional cardboard based sandwich skillets are not naturally gas tight – but it seems consumers are ready to pay a premium for healthier convenience foods. A decade ago I’d have said that we were seeing packaging trends which had made their mark in Europe or the US, taking years to become widely adopted in the Gulf. Nowadays though, I’d say that delay is down to between six months and a year, and of course during that time, the most successful

May 2014 25


Cover story

suppliers of equipment and materials are perfecting their products; Gulf manufacturers benefit by joining the trend just as all the ‘early adopters’ have ironed out any initial problems. There’s no shortage of suppliers of specialist packaging laminate films in the Gulf, in fact we’ve enjoyed sales of some very specific material handling equipment to those same manufacturers, so in that respect Gulf-based manufacturers can easily source their packaging locally. I’d estimate that 50 to 60 per cent of the trays for ready meals are now being manufactured locally too, but that more complex designs and perhaps thinner walled trays, where quality control is more critical, are still being brought in from outside the region. But as demand for these products grows, so, no doubt, will local manufacturing capacity; if there’s one thing we have learned in this part of the world over the last 20 years it’s that there’s no shortage of entrepreneurs ready to invest on the promise of the region’s future growth.

Perishables Thanks to the rapidly growing population in the Middle East and the consequent surge in

26 May 2014

the number of supermarkets serving those consumers demands, Al Thika Packaging LLC saw unexpectedly strong sales of equipment and materials into the fresh produce sector in 2013, a trend that has continued into 2014. Managing Director Ian Barker explains, “Although we’ve been offering net bagging solutions for fruit and vegetables for over 10 years now, from Spanish manufacturer Giro, we were pleasantly surprised by the demand in the Gulf for their machinery in 2013. Sales weren’t restricted to just their lower price equipment either, we installed several fully automatic weighing and packing solutions too.” Barker feels that there’s more to the trend than just growth in population numbers. “Although we are supplying new systems to the market, we are also seeing increased demand for consumables from existing customers, too. I believe we are seeing a trend of people not only buying healthier, fresher produce, but also demanding packaging which helps keep it fresher for longer.” It’s not just whole produce which is in demand either. Al Thika’s Sales Manager, Paul Triandafilou explains,“Supermarkets

I believe we are seeing a trend of people not only buying healthier, fresher produce, but also demanding packaging which helps keep it fresher for longer. and wholesalers alike are experimenting with value added products such as sliced and diced fruits, fresh juices, mixed salads etc. From our point of view that’s lead directly to sales of equipment like tray sealing machinery with gas flushing for increased shelf life, labeling and date coding equipment, and even data loggers, so suppliers can track the efficiency of their cold chain. With fresh produce so susceptible to damage through transport delays and incorrect storage, suppliers are becoming increasingly vigilant, particularly where third party shipping is involved.” Nor does Triandafilou expect this demand to slow down anytime soon.“If anything we are expecting stronger growth this year than last. Many of the new packaging and processing plants are only coming on line now and as more fresh produce hits the shelves, experience tells us that retailers who have been slow to spot this trend will be in a rush to update and upgrade their equipment, so we have planned for double digit growth in this sector in 2014.”


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Cover story

Food supply chain dos and don’ts Prakash Menon, Supply Chain expert Too many food and beverage organisations today dismiss supply chain management as the unglamorous ‘grunt work’ of bean counters. But in the global village we all live in, where life revolves around speed, convenience and choice, supply chain can no longer be treated as an afterthought. Few industries are as dependent on their supply chain as the food and beverage sector, which faces constant change spurred by new food trends, increasingly stringent safety regulations and shifting consumer buying preferences. In short, survival in the food and beverage industry today relies on transforming your supply chain from weak link to world-class core strength. So what exactly is supply chain management? Put simply, it’s about consolidating, simplifying and streamlining your operations in order to buy, move and sell goods more efficiently, effectively and safely. Strategic, collaborative supply chain performance ensures the right product hits the right markets in the right way and at the right time. The result is less waste, optimal safety, lower costs, better relationships with all stakeholders, greater customer satisfaction and ultimately, a more profitable business. Here are five key reasons to strive for a world-class, integrated and collaborative supply chain – service, safety, speed, flexibility and cost. These global best practice principles apply equally to all food and beverage businesses, from the largest multinational to the smallest local

restaurant, food retailer or take-away store. Importantly all five imperatives rely on a collaborative approach. Sluggish, wasteful and chaotic supply chains are largely the result of a ‘silo’ mentality in which each sector of the chain is only concerned with its own business. When the right hand doesn’t know what the left hand is doing and neither hand

Prakash ‘PK’ Menon, Executive Director of Thought Leaders Middle East, is one of the world’s most influential retail supply chain experts and leadership authorities. A former hotelier, restaurateur and Director of Supply Chain and Logistics for a leading department store chain, PK is renowned for having transformed the supply chain landscape on a global scale. He is the author of three books, Driven: Accelerate Your Career with Smart Transitioning, Supply Chain is Sexy: Harnessing the Retail Revolution and Fail Smart: The Undeniable Link Between Failure and Success.

28 May 2014

is holding suppliers and carriers accountable, overall performance suffers. While it isn’t easy to transform a ‘not my problem’ culture into a culture capable of operating in an integrated supply chain, it is essential. In working with suppliers and customers, it is critical that all staff, from senior executives all the way down the line, understand every part of the chain as well as the expectations of both internal and external stakeholders. So, in the food and beverage sector if the head chef doesn’t understand how the best produce is sourced and transported, and the supplier doesn’t understand the current food trends, wires will be crossed and customer expectations will fail to be met.

Service Supply chain management is about creating efficiencies that will enhance service, not detract from it. Bigger doesn’t mean better. It’s not about building the Taj Mahal. It’s about continuous improvement, customer


focused innovation and securing business advantages to ensure your people, partners and systems are capable of engaging your markets better than the competition. And this can be achieved in operations of any size. The best food and beverage manufacturers in the world have the ability to quickly react to new food trends and shifting consumer preferences etc. by quickly communicating those needs to their suppliers via their efficient and collaborative supply chain management processes.

Response time and delivery performance is a crucial element in the supply chain. After all, speed and efficiency are critical to achieve a competitive advantage, especially in today’s faster, smaller, more consumer-savvy global marketplace. Speed is also linked to safety in the food and beverage sector. An efficient supply chain process ensures FIFO (first in, first out) and LILO (last in last out) principles can be adhered to, reducing the risk of product recalls, waste or worse (a consumer falling ill).

Safety Safety is naturally paramount to the entire global food and beverage sector. But at the end of the day, food safety is only as strong as the weakest link in the chain. If one link fails to adhere to safety regulations, it has the potential to impact everyone down the line. At the end of the day, when it comes to safety, everyone is accountable. When global food safety standards are applied, research shows that there are less recalls. Strict quality controls must be applied across the supply chain from the handling of raw materials and transport to storage and distribution to the customer. It is the responsibility of every food and beverage manufacturer and retailer to collaborate with suppliers and resolve any safety concerns. Direct business involvement, as opposed to leaving it to someone else (like a government authority) generates both greater efficiency and a safer product.

Speed Leading global food and beverage manufacturers develop, make, market and distribute new products and services that meet their customers’ needs faster than their competitors. It’s all about speed to market.

Flexibility An efficient and effective supply chain allows for greater flexibility and two-way communication across the entire food chain. It means it’s no longer just about responding to the ‘push’ from suppliers and distributors but having more say in the raw materials etc. you choose to purchase. A flexible supply chain is one that enables both ‘push’ and ‘pull’ strategies. Companies that have this luxury consider their supply chain a core competency as opposed to just another function of the business.

Cost Let’s face it; we’re all here to make money. Efficiency across the supply chain is critical to reducing costs. But cost savings must be not be made at the expense of continual service improvements. While working in flight catering, one of the imperatives implemented in the world of fast food, fine dining and retail was measuring performance on a daily basis. We measured every KPI in supply chain under our mantra,“if we can’t measure it, we can’t manage it.”As a result, we were able to redirect our efforts in the most appropriate areas resulting in lower operating costs, lower freight costs (despite greater volumes) and greater productivity to name just a few of the improvements and cost savings achieved. Best practice supply chain principles enable leading global food and beverage manufacturers to not only effectively deal with today’s challenges and opportunities, but also plan ahead and share their future vision with suppliers and customers. This allows them to sustain and grow their businesses for the benefit of the next generation and beyond.

Hydroponic products now in the region

Pegasus Agritech (provider of hydroponic facilities) recently launched Daily Fresh, a line of fresh, pre-packed produce. In a groundbreaking move for the MENA region, this is the first locally grown, locally sold brand of pre-packed produce and has a shelf life of 21 days. This has been made possible by a number of technological advances. Using the hydroponics technology the company is able to produce and harvest crops seven days a week, 365 days a year. Hydroponics is the science of growing plants without the use of soil and also known as soilless culture. This has tamed a previously inhospitable desert with a lack of arable land and transformed it into a haven for fresh, high quality produce. The harsh climate previously meant that the Middle East imported over 98 per cent of its food but Pegasus Agritech is on its way to reducing this figure. They do not use pesticides in their crop production while the hydroponics technology allows them to minimise human contact and the subsequent bumps and bruises, heightening the quality. Surprisingly, the hydroponics method uses 90 per cent less water than traditional means, an important advantage in an area that suffers from water scarcity. All this, coupled with a delivery and logistics network that ensures there is a maximum of 48 hours from point of harvest to point of sale, results in an organic freshness previously unseen on supermarket shelves.

May 2014 29


Cover story

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Doing drugs Running a successful pharma supply chain is a big challenge to say the least, but once things are in place, the possibilities, as they say, are endless. Hellmann Healthcare Logistics’ 10,000 sq metre facility in DWC is full and they are building another same size facility on the adjoining plot

32 May 2014

T

emperature is everything in pharmaceuticals, you don’t want to be a patient in a hospital taking drugs that are not effective. How those drugs get to you is what Hellmann Healthcare do exceptionally well. As mentioned in the standfirst their 10,000 sq metre facility is full and they are building another same size facility in the adjoining plot of land. Business definitely is good. Global Supply Chain spoke with Cindy Engelbart, Global Compliance and Quality Manager for Hellmann Healthcare about the length and breadth of their business.“Sea freight is the most stable mode of transport when it comes to pharma products. Temperature integrity maintenance is very high simply because there is no cut over point during the transit and the end-to-end supply chain is completely controlled. Comparatively in airfreight, there are

a lot of handover points where there are possibilities of temperature being compromised.” What mode of transport is used is eventually dependant on the client’s requirements and the specifications of the products being transported as well as the urgency.“Factors such as the customer’s plan as well as expiry dates play an important role in the transport mode of choice,”continues Engelbart.“If the product is coming by air from Europe it will be here in three days maximum and on sea it is anywhere between 25 and 30 days.” Hellmann Healthcare’s involvement begins from the time the consignment arrives say by air.“We do customs clearance and delivery for all our customers which means we do clearance at the airport, we take the products from the airport into our facility. We use one dedicated transport company for that and everything is temperature controlled.


Pharmaceutical logistics

Our preferred carrier is Emirates dollies, the product goes into the Sky Cargo. They have the cargo terminal and are stored facilities to store the products. At between two to eight degrees or the airport they eliminate tarmac 15 to 25 degrees depending on time by using cool dollies.” the product specs.” Customers are advised to Once the clearance is done ship overnight so that the the products is loaded onto the product arrives during the night temperature controlled trucks and or early in the morning when comes to their facility.“We advise Cindy Engelbart outside temperatures are still our clients to book the special not high and temperature exposure risks Pharma Service which is being provided by are minimised.“Once covered in the cool most carriers where in special consideration

is given to to handle those shipments. They are loaded onto the aircraft last so that they can remain under temperature control for as long as possible and similarly at unloading time they are immediately taken out and placed into temperature control.” Going back to the process, the moment the cargo is loaded onto their trucks, their specifics can be monitored as in the inside temperature as well as the location of the truck through GPS.“We work on a 24-hour pre alert basis where we know

May 2014 33


Pharmaceutical logistics

what is coming in in the next 24 hours and are prepared to handle it,”she says. This awareness is also necessary for the need of any special procedures during the summer months.“All our trucks are active, the moment the shipment arrives, we have our own standard operating procedures based on which we treat the temperature sensitive product. The majority of the product comes in thermal packing if you look at two to eight or 15 to 25. So the moment the shipments come

34 May 2014

in they immediately go into temperature specific areas we take out the cool packs to prevent any over cooling to the products and it stays there.” Of course the storage site and entire building is monitored 24 hours for the temperature.“We have a building management system that is monitoring the temperature as well as humidity levels in the warehouse. We have an 24/7 callout alarm system linked in, where it automatically

places a call should the temperature or humidity go out of specification.”The person receiving that call needs to follow through and take corrective actions. In such scenarios, the company utilises a business continuity plan whereby all the features in the facility are continually tested. This comprises HR related events, IT failures, power failures for example a backup generator will switch on the moment there is a power cut as well as a certain number of


Pharmaceutical logistics

ACs so temperature can be maintained until power is restored.“We train employees, in case something happens we have a protocol drawn up that needs to be followed. In addition to our protocol there is a customer’s product specification training that is also given to each employee working on a specific brand. Moving on to the process of when the product now needs to be shipped out to a specific location from the facility.“That again

is dependant on the customer’s requirement as to when the product needs to reach where and when. Usually air freight is the mode of choice. So again all the two to eight shipments are packed we either use customer specific packaging material or we have our own packaging supplier. Staff is trained in how to pack.” In road freight shipments, since the truck is temperature controlled there is no packaging done on the product, with the exception

being when the product is going to Saudi Arabia.“We do a thermal packing on the products because the trucks are opened at the border. For two to eight products we use styrofoam so as to prevent the first shock of heat when the doors are opened. We have approximately done 300 trucks into Saudi till date and nothing has gone wrong, thankfully.” As for sea freight, since the container is temperature controlled the product is not thermally packed. “What we usually do with all our clients is a complete route breakdown. Since most of our customers were previously shipping from Europe into the region, doing it from Dubai is a completely different procedure. A route assessment looks closely at all the different steps for example for airfreight the product goes from this facility to the airport storage, at the airport on the tarmac, then on the plane, again at the destination on the tarmac till finally to the destination warehouse. This helps reassess what risks of temperature excursions could be possible at every step of the way and what can be done to mitigate those risks. So understanding your route, understanding your supply chain and understanding the risk, having a plan as to how to mitigate those risks is something we do to ensure there are no unpleasant surprises on the way.”

May 2014 35


Small businesses compete and grow 36 May 2014


Business intelligence

S

ome companies, regardless of their industry or size, do well. They are successful with low value merchandise or with fashionable merchandise or whatever product. Other firms struggle or so it seems. The difference, when you drill down, is often how well a firm executes supply chain management. Supply chain excellence does not happen by accident. Firms with outstanding supply chains have made it a part of their strategy and operations. They know that it is good business to be a leader in supply chain management (SCM). These companies understand what supply chain management can do to position and to differentiate themselves in the market and against competitors. They know that it can drive sales, profits, and market share. Supply chain management is a complex responsibility. There are supply chains within supply chains. Supply chains are not linear from one customer to one supplier. They involve multiple customers and multiple suppliers each of whom has a supply chain. Compound that with presence of three different supply chains - product, information and financial. This conundrum applies to companies regardless of size, regardless of industry, market and regardless of what country the businesses are located. It is especially difficult for Small-Medium Enterprises (SMEs). These firms battle against large companies who

In the big bad world of businesses, small companies get lost in the maze of companies with big budgets. But some survive and take on the competition whether big or small. This article explores the many areas small companies can improve upon to succeed May 2014 37


Business intelligence

have leverage and resource advantages. Lessthan-outstanding supply chain management only compounds the problems for these small-medium companies. They do not look at their supply chains in their entirety nor do they view them as processes that flow across the entire firms. Instead, they look at freight, warehousing and other cost and functional areas. As a result, their supply chains control them; they do not control their supply chains. These are significant differences with supply chain and market leaders. Such firms are also reactive. They imitate, or try to imitate, what leaders do. Because they do not understand and do not commit to supply chain management, they are not successful with replicating what others are successfully doing. Despite the scope and complexity, supply chain management is often not vital for many SMEs. The impact to such companies of their treatment of supply chain management has handicapped its effectiveness and limited growth and profitability resulting in: 1) Wasted capital and resources 2) Increased costs to perform activities and transactions 3) Lost customer sales and poor customer service 4) Sacrificed opportunities to create competitive advantage Companies are in a survival mode trying to deal with and get through the global economic slowdown. As firms work through the difficulties, will change come for those companies that have not properly performed supply chain management? There will be change because many firms will not make it through the global recession. What other changes will occur? Will firms try to bully their way through the economy with broad brush approaches with arbitrary inventory reductions and costs reductions? How many firms will validate Einstein’s definition of insanity by doing the same things over and over and expecting different results? Will there be change from the revived economies or will companies repeat the mistakes of the past with regards to supply chain management? How will firms deal with the permanent changes that come from the global recession? Will they choose to have lower costs; better customer service; faster capital velocity, for

38 May 2014

inventory and, in turn, cash; and increased competitiveness, even advantage? Growth, even survival, may depend on the answer. The answer should be to change. Not changing is to repeat the mistakes of the past and can be considered as lunacy-doing the same thing over and over and expecting different results. Many company business models are outdated; more will join that with the global economy that emerges from the global recession. SMEs should: 1. Work together to combine volumes of multiple SMEs and to leverage procurement of similar commodities using technology and approach as major corporations utilise 2. Manage supply chains and suppliers as large companies do using technology and process to drive efficiencies across the supply chain from suppliers through to customers 3. Determine and differentiate what the

company needs from its supply chain with regards to competitive advantage, market positioning, cycle time, capital required for inventory and other applications, service, revenue, profitability and growth. 4. Segment and assess present supply chain performance and process as to customers, markets, industries, distribution channels and products. Analyse the process based on customer and market requirements and on competition. Depending on the assessment results, supply chain redesign from the customer and market perspectives is preferable to trying to fix the present operation. Utilise different tactics for higher risk, higher complexity, high volume, fast moving, profitable products, customer and markets than for ones that are marginal. SMEs must break the cycle of inefficiency that limits profits, growth and return. Change


is difficult, but not impossible. Opportunities will come from the new economy. They must change. Standing pat is not a viable option. The changes from the global economy will create opportunities for those prepared to take advantage of them. Companies that view themselves as dynamic and as global see the prospects for themselves. They have value propositions that separate them from competitors; they know that value propositions are about the customers and not about what the firms do. They understand trends; they lead. These firms understand what supply chain management can do to not only create service advantage but to be a catalyst for new business. Leaders know that orders - whether they are replenishment, customer, or new products - must be delivered complete, accurate and on-time. This must be done

consistently. Uncertainty is a sign of a struggling supply chain. Conversely, reliability is a hallmark of best-in-class supply chains. The privileged supply chain practitioner use best practices to effectively manage their supply chains. Best practices reduce time and inventory and improve competitive positioning and profitability. Supply Chain best practices are: Increase inventory velocity Implement lean logistics / supply chain management Improve supplier performance Compress cycle time Utilise meaningful metrics Segment the supply chain Employ supply chain technology Products sold into a competitive market, fast moving products, products with short product life cycles, products with seasonality - all must utilise best supply chain practices. It is not a choice; it is a requirement. Time and inventory are two important, interrelated issues that drive the need for best practices. Success with these practices also creates inventory yield maximisation opportunities. There is a window of opportunity to get the maximum price and the maximum yield for products. Hit that window, and companies enjoy higher pricing and profit margins. Leaders understand this in using best practices. Increase inventory velocity. Inventory management is the Gordian Knot of supply chain management. No one knows how to untie it, and it cannot be cut. The inventory quandary applies to all inventories-finished goods, raw materials, parts and components, MRO and work-in-process. It includes new products and existing products. It covers all types of businesses-manufacturers, distributors, wholesalers, retailers and others in about every industry. There is a dichotomy of views. Sales wants 100 per cent customer satisfaction and to make sure that there is always inventory on hand to meet each order. Finance wants to carry fewer inventories to free up capital for other needs. Given the vagaries of sales patterns, supplier lead times, and production sizes, the“answer�is dynamic. When sales are booming, inventory may not be as scrutinised as it is when sales are slow and inventory is sitting in warehouses and plants.

As a result, inventory creep can occur. Studies have shown that manufacturers and wholesalers have over 60 days of inventory and that retailers have over 90 days of inventory capital tied up. These times do not include the entire inbound inventory in the supply chain. Real supply chain inventory is likely 25 per cent higher. This is a very significant amount of capital tied up in inventory. Too many companies do not know how fast inventory turns and do not really manage it well. Poor turns are signs of many problems. Inventory must move quickly; turns should be high. Inventory that sits and does not sell consumes available working capital and limits applying that capital to the business. Products must flow from suppliers or manufacturing sites to customers. Being inventory rich and cash poor is not a sound approach. Inventory is key to profitability. Inventory velocity turns assets into profits. The faster inventory moves and turns, the greater the profitability. Inventory is the key issue to supply chain management success. Customers demand that their orders be shipped complete, accurate and on-time. That means having the right inventory at the right place at the right time. Implement lean logistics / supply chain management. Lean complements supply chain management. Both emphasise pulling, not pushing, products through the supply chain. Both recognise the waste, or non-value, created by excess inventory and excess time. A lean supply chain process is streamlined to reduce and eliminate waste or non-value added activities to the total supply chain flow and to the products moving within the supply chain. Waste can be measured in time, inventory and unnecessary costs. Value added activities are those that contribute to efficiently placing the final product at the customer or at the store. The supply chain and the inventory contained in the chain should flow. Any activity that stops the flow should create value. Any activity that touches inventory should create value. The best know that lean supply chain management is more than warehouses and transport topics. It must include the total supply chain, both domestic and, especially, international. They stay focused on adding value as defined by customer, using the pull which

May 2014 39


Business intelligence

complements SCM, keeping a customer focus, and removing the waste of inventory and time. Improve supplier performance. Success begins with supplier performance. They must deliver quality items and do it complete, accurate and on time. Otherwise problems ripple across the supply chain, the company and its customers and impact sales, profits and capital tied up in inventories. Whether the products are finished goods or materials for factories, the need for strong supplier performance is there. Leaders analyse spend and identify suppliers as to importance based on risk, volume, profit margin, lead-time, criticality, stringent specifications or other criteria important to their businesses and industries. They differentiate how to work with critical suppliers from non-critical ones. This includes understanding what suppliers want and implementing supplier relationship management. Compress cycle time. Supply chain cycle time runs from the time the need for a product - new or replenished - is determined and goes until it is delivered to the customer or to the store. The length of global supply chains adds to time and the challenge to compress. Safety stock inventories are a buffer against uncertainty. Long cycle times add to the uncertainty - and in turn the amount of inventories carried and working capital tied up. Leaders recognise that there are many parties involved in the cycle time for both product and information flows. These

40 May 2014

parties, that are touching the product and information, are both internal and external. All the parties collectively add to the length of cycle time and to its variability. And this, in turn, adds to cost, inventory levels, service failures and lost sales. The best analyse the flows and look at where products and information stop and whether value is added with each stoppage. They understand that much delay is caused internally because of organisational requirements, gaps with the supply chain process, signoffs/approvals, purchase order requirements and changes, and numerous other reasons. Drawing on lean, they improve the flow. In turn, the same is done with the external activities. With all the actions and parties, compression focus is placed on fast moving, high margin products. Utilise meaningful metrics. It is easy to identify firms that do not excel at supply chain management. In good times or bad times, they cannot tell you how well their supply chain operates beyond some anecdotal stories. There are numerous measures for companies and their supply chains. Some are micro-measures of various logistics activities and functions. Some have nominal value. And others are based on knee-jerk reactions to a problem that occurred. Useful metrics go across the enterprise. They tie to the company strategy and show meaningful performance. Examples of good metrics are: Orders delivered complete, accurate and on time Time related – such as: days of inventory on hand , supply chain cycle time, time (speed/length of time) and how well (dependability or variability) the organisation and the supply chain perform is significant to satisfying customer expectations, purchase order to cash cycle time goes across the firm and includes supply chain time Segment the supply chain. Too many firms have one supply chain approach for everything. This monolithic methodology handicaps performance, diverts resources, and creates static noise from external and internal

sources that distract the supply chain organization. The best segment their supply chain and focus performance where it is most beneficial. Instead of practicing one-sizefits-all supply chain management, they tier based on profit margin or days of inventory or similar important criteria. Multiple segmenting can be done. Customers can be tiered, as can products. Sectoring supply chains is a superior best practice. It works for all companies - regardless of size, industry or whether B2B or B2C. The benefits go beyond supply chain performance and very positively impact the firm in important ways. It has both master plan and operations importance and impact. Supply chain segmenting can be used by all companies, regardless of size, industry, market or type.


Employ supply chain technology. Supply chain execution technology is important to managing a supply chain. It should provide visibility throughout the entire supply chain. It is much more than tracking and tracing which misses the important factor. It is not about the container or pallet of product. It is about the purchase order or customer order. The key issue is to manage the customer, purchase or build order through to delivery. Technology, especially when tied with an excellent supply chain process and collaboration, can provide that. SaaS and cloud combine to let all size firms use technology. It is no longer reserved for the large corporations. Leaders use technology for exception management and for event management so they can focus on what is important, reduce the occurrence of

problems and manage the supply chain flow. Best-in-class firms want visibility across entire supply chain process. They distinguish the inbound supply chain from the outbound supply chain in designing and implementing the strategy. They do not focus on domestic versus international to parse their supply chain; they assess inbound versus outbound. Otherwise, the time and resultant inventory benefits are blurred. Also, they develop multiple transport and stocking programs to reflect the management of inventory. Firms that have supply chain management as part of the core competency and strategic focus perform better in controlling inventory across the supply chain. Conclusion. SMEs have the supply chains that they designed, either deliberately

or through indifference, and deserve. Strong economic periods can mask the performance of supply chains. Weak conditions expose the true supply chain capabilities. As a result, they can compete effectively, or they cannot. Some firms realise their weaknesses and redesign supply chains. They choose to change, to take control of their supply chains and to grow and be profitable. Too many firms choose not to improve their supply chains.“Nothing comes from nothing,� as Shakespeare said in King Lear. They limit what their companies can become. Good SMEs will change and will collaborate with other SMEs to gain leverage. They will use best practices because they want to position themselves for growth and success.

May 2014 41


42 May 2014


Focus oF the month

Lifting the logistics

industry The humble forklift is an integral part of any warehouse operation. What this really means is work wouldn’t happen if it wasn’t for the forklift. Global Supply Chain pays a little tribute to the forklift through this article which looks at the regional market and all the major forklift varieties in use

T

he forklift came to be in the early 20th century. It started life as a manual powered hoist designed to lift loads and to replace labour which was in shortage because of the first world war. During this time a number of companies began making versions of the forklift resulting in an expansion of its use and developmental improvements on each machine were a natural progression. During the second world war, the forklift as it was at the time was used extensively, with design improvements taking place as uses expanded. One British company at the time was credited with creating the first of its kind, narrow aisle electric reach truck. This evolution then changed the design of warehouses as they could now have very narrow aisles as well as equipment that could be stacked higher up increasing warehouse capacities. This also led to operator safety concerns leading to operator cages, overhead guards etc. in order to

reduce injuries and increase productivity. And from then the forklift has never looked back. Getting to its slot where it sits today – an integral part of the entire logistics process. Global Supply Chain spoke to a multi brand wholesaler Buss Engineering and Heavy Equipment Repairing LLC, Ajman and the local distributor Genavco for major international forklift manufacturing brand Crown for perspectives into the current market.

May 2014 43


y a d o t e ib

r c S Sub

QATAR - TOP PERFORMER

GROWING SMALL BUSINESSES

SHIPPING’S IMPACT

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UNWIND

Reinforcing trade

Hellman Healthcare Logistics A pharma solution

Lifting logistics ENHANCING THE BUSINESS OF LOGISTICS

The forklift

May 2014 Issue 04

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Focus oF the month

The multi brand store Raphael D’sa, Director of Buss Engineering, Ajman, (established in the UAE in 1991) gave his candid opinion of what sells and how they deliver the goods to their clients in an increasingly competitive industry overflowing with a multitude of excellent brands. How mature is the forklifts market in the region? This market is growing, new free zones, new warehouses and not to mention the expo. It’s definitely a boom and time for us to stock up. You are in the market from 1991, how has the market evolved since then? This market was a predominant Caterpillar market in the Diesel forklift sector. This has changed over the years. Komatsu as a brand began to gain trust and market share as we have seen over the course of the years from the service sector’s point of view. After the establishment of the free zones and large warehouses, big brands like Toyota, Linde and Cat electric range of forklifts found new buyers and subsequently a market which till date seems to be expanding everyday what with so many new economic zones springing up. Today even a small warehouse will require a minimum of three machines and it can go up to 100 units for the larger warehouses. The types of machines

include pallet riders, electric stacker, electric forklifts, reach trucks, VNAs (very narrow aisle), automatic racking systems etc. Hence from 1991, we have had to up our game to match the ever increasing demand and the vast growth in the electric forklift sector. We started off with servicing and maintaining diesel forklifts and generators and today we take any brand, any type, any model, any capacity, basically if it’s any kind of material handling equipment (MHE) we take it in our stride. In our workshop today we have Cat, Linde, Still, Komatsu, Hangcha, Jungheinrich, Boss, Raymond, Om, Eoslift, Hyster, Mitsubishi. How many types of forklifts do you sell? What types of industries do you cater to? We sell Chinese branded forklifts with Japanese engines whether it is with IC

engines or with a Zapi control system or battery operated with a european standard battery. In newer brands, we do electric, diesel and LPG machines, stackers, pallet riders and manual pallet trucks. We also do used MHE for the entire range of MHEs mentioned above. We also offer trade in facilities where in if an existing customer wishes to buy a new MHE from us we give them an offer for their old one which is better than market value and thereby help them replace old machines quickly and economically. We cater to all industries, all emirates and any quantity. From all the different varieties, which is the most sought after type of forklift and why? UAE being a market where fuel is abundantly available there is always going

May 2014 45


Focus oF the month

to be a demand for the diesel-powered forklift. But as more and more multinationals, big brands, large logistics firms have come into the market the demand for the electric forklifts have expanded to almost double that of the diesel forklift. In diesel, the most sought after forklift is the 3.0 tonne while in the electric range it’s the 2.0 three wheel. As warehouses get larger and higher in structure, the demand for reach trucks with operational heights in excess of 12 metres has grown three fold. What is the importance of the forklift in the warehouse? It’s not the forklift alone. It’s like a game of passing the parcel. It’s a combined effort, when a truck reverses into the warehouse for unloading the forklift unloads it, it feeds that to reach trucks and VNAs which places them high up in the racks, the manual pallet riders which are the most abused equipment are important in moving mixed cargo, in working in tight or small areas etc. Likewise, in a production company or outdoor location diesel forklifts either load the cargo onto the container while pallet trucks place them accordingly. Hence it’s not one machine alone or not one operator but a combined effort. We always advise our clients to have a machine spare. Being in service we understand that a machine needs maintenance and could breakdown it’s here that work must go on … hence the spare. What is the future of the forklift? Battery is the future. Brands like Hawker are coming into the market with quality european batteries. New innovation can save companies a huge amount in energy, maintenance and overall operation costs. I say this as there is no bigger market for electric machines than Europe, hence we should know that continuous improvement in products in Europe can be easily just adopted here in UAE. A friend of mine used to say, “Why invent the wheel when it’s already been invented!”

46 May 2014

How do you stay ahead of your competition? Unfortunately, we create our own competition in the service sector, but that’s how this market goes. There is enough for everyone. We never try to overfill our plate but yes we like to choose what’s on it. We are selective with how we deal but we deal with everyone as service is our priority and all machines are important be it Chinese, Japanese, European, American, Indian or any other brand. In service speed, accuracy and cost effectiveness are key factors for our success.

The manufacturer Crown USA established in the early 1960s is a quality forklift manufacturer with an excellent product that comes with an even more resilient international after sales service and maintenance package. With such a pedigree, the competition pales in comparison surely. Genavco’s (Crown’s local distributor) Asif Khan, Heavy Equipment Division Manager explains in detail. The biggest trend in the forklift world according to Khan is space saving equipment

which is the Narrow Aisle truck and Very Narrow Aisle (VNA) truck.“It can be a man down and man up; the VNA Man up is preferable and can go up to 17 metres lift height,” says Khan.“The industry is becoming more and more sophisticated in terms of monitoring the efficiency and operational cost of Material Handing Equipment (MHE).” The forklift makes life easier in any warehousing application. The handling of palletised goods or boxes previously done manually are now performed by MHEs, be it a Powered Pallet Truck, Pallet Stackers, Reach Trucks, Order Pickers or Man up Turret Stock pickers. A lot of improvement and enhancement in the forklift has occurred over the years with manufacturers striving to make the product more and more operator friendly.“Crown pays extra attention to operator comfort, safety of work environment and ergonomics of the forklift trucks,” he continues. The most popular and common forklift in the region is the Counter Balanced Forklift Truck due mainly to the fact that is carries out a number of general purpose duties. Khan speaks highly of the recently launched TSP 7000 machine.“The Crown Turret Stock Picker Series 7000 has been well received by the industry which offers the maximum lift height of an unmatched 17 metres. It is a very successful pull through product. End users are happy and satisfied with their return on investment.”


The many Crown forklifts Crown offers a variety of MHE, starting from the very basic Hand Pallet Truck through to Powered Pallet Truck, Pallet Stacker, Order Picker, Tow Tractors, Counter Balanced Forklift Trucks, Reach Trucks, Turret Trucks and Work Assist Vehicle etc. Crown offers a broad range of products designed to support diverse applications within almost any type of industry. Every truck they engineer, every operator they equip, every process they support, is intended to directly result in improvements, in operator productivity as well as the performance of the entire customer operation.

The various types of forklifts are: Hand Pallet Truck: This is a basic member of each and every warehouse which is used for general purpose ground transportation of palletised goods. Powered Pallet Truck: Very much similar to the Hand Pallet Truck but has a battery operated power drive and lift. There are various options available in Powered Pallet Trucks, they can be Walk Behind type, Ride on type having options of operator stand - sideways, front and rear ways. Pedestrian Stackers: Are used in less busy warehouses and in production facilities depending upon the application. They can be walk behind, ride-on type, single or double Pallet Stackers. Crown is unique in providing Reach Stackers with a reach mechanism which can handle load ranging from 1,100 kgs to 1,600 kgs. The Stacker family has limitations in terms of lift height which does not offer beyond 5.4 metre They require a 2.2 to 2.7 metre aisle width to operate between racks. Reach Trucks: Are a space saving machine meant for handling palletised loads up to a maximum height of 13.0 metres. The capacities available are 1.4, 1.6 and 2.0 tonnes meant for indoor application due to less ground clearance. They require 2.7 metres to 3.2 metres aisle width for operation. Man Up Narrow Aisle Trucks: Are designed to fulfill material handling needs in a wide variety

of application and environment. These machines have high product put away, order picking and numerous work assist tasks including inventory cycle counting, building maintenance and more. The product line include Work Assist Vehicle 50, SP 3500 High Level Order Pickers and TSP Trucks. TSP6000/6500/7000 Series with capacities ranging from one to 1.5 tonnes has a maximum lifting height of 17 metres. They run on a super flat floor and require 1.7 to 2.2 metre aisle width. The WAV 50 Work Assist Vehicle is a revolutionary, mobile productivity tool that allows one person to safely and efficiently accomplish what normally takes two people.

The SP 3500 Series order pickers combine speed, handling and truck stability, letting operators work productivity and confidently at reach heights up to 11.3 metres. The SP3500 Four Point order pickers are designed for exceptional durability and performance in handling nonstandard loads. Counter Balance Trucks: Crown’s family of Counterbalanced Lift Trucks provides the solution for a full range of material handling requirements. They are ideal for loading and unloading lorries, transporting materials and many other tasks. Crown’s range of Counterbalanced products includes a standup series and two sit-down rider series. RC5500 series stand-up counterbalanced lift truck leads the industry in performance and operator comfort features, performing tasks in narrow aisles and congested docks and trailers, safely and productively. The SC5300 Series is designed for maximum comfort and productivity. The three-wheel design improves maneuverability for product handling in congested staging areas and tight stacking applications. The four wheel FC4500 series provides a material handling solution for the toughest environments. As with the SC 5300 series design, the FC 4500 series offers a cabforward design and productivityenhancing features.

May 2014 47


The impact Global supply chains have become more complex, with many parties involved in a transaction, increased challenges, and an evolving landscape of shippers and practices. This article focusses on a detailed analysis for progressing in today’s global trade landscape

48 May 2014


Business intelligence

of shipping C

omplexity and challenges occur in many forms and on many levels. Distance, time, performance, currencies, numerous participants, risks, and culture are a few of them. Supply chains are not monolithic. There are really supply chains within supply chains and these are compounded with the global positioning and organisations of the many

players. There are many parties involved with a single international shipment. Hidden among all these are events that impact supply chain operations. They are often silent changes and are caused by one of the most important logistics players in international trade - container lines. The

shipping landscape has been changing and continues to change. Today global trade has three major trade lanes - Asia-North America, Asia-Europe and intra-Asia, with intra-Asia being the largest. Also, in this time: fewer carriers are now in business because of mergers and bankruptcies alliances, slot exchanges, and vessel sharing among carriers have been created and changed shipping routes have been added and revised sailing schedules have been regularly made and reworked; and “slow steaming� is an ongoing practice. As trade has grown into a global business, ocean transport has grown in importance.

May 2014 49


Business intelligence

Container shipping is an important factor in trade expansion. Ships today have grown dramatically, and are measured in twenty-foot equivalents (TEUs). New vessels are 18,000 containers large (called mega-ships). The largest ships are generally targeted for use in the AsiaEurope trade. There is even talk of a 22,000 TEU vessel. The size of ships and the number of ships now operating and being built are points of discussion as in whether the total supply/ capacity of container ships exceeds demand. Correspondingly, main ports have changed as trade has expanded. China dominates now with its role in all three of the major trade lanes. Some of the North American and European ports are active in trade lanes other than involving Asia as an origin or destination. Various ports are used primarily for transshipment. As trade has changed

50 May 2014

and ships have grown, port authorities are deciding whether to invest significant monies in dredging, cranes, container stowage, terminals, and underlying infrastructure to keep up with the vessel growth and to handle these ships. Given the capital cost of ships, handling means that a port must be able to quickly berth, unload, load, and get the ship sailing again - as part of the asset utilisation and turnaround time that these ships require. It is possible that fewer ports throughout the world will be able to accommodate mega-vessels.

Impact on supply chains Maritime container shifts and growth were driven by business changes, primarily with manufacturers and retailers. These corporations did basically domestic sourcing, manufacturing / assembly, and selling. There were some export sales, primarily between Europe and the United States. Companies evolved by sourcing and

manufacturing in Asia. The effort transitioned from countries such as Japan, Singapore, Hong Kong, and Taiwan to where China is now the dominant origin for world trade. The ways in which carriers operate - and how they revise operations - have affected their customers’ supply chains. While some shippers only care about the rate they pay and give little attention to what is happening with carriers, serious companies who practice leading-edge supply chain management know differently. They understand that what carriers do can sometimes adversely affect their supply chains and their businesses. Performance reliability is important for international supply chain effectiveness. Usually quarterly, companies, using tools such as sales and operations planning, create weekly buckets of production / build plans and logistics plans. These build and logistics plans can be very dynamic and critical because they involve high volume,


Focus oF the month

and value from the service contract signing period through peak season when space may be at a premium regardless of pricing and into slack season where price reductions are given to freight forwarders to fill ships. Yield management, which ties to shelfspace profitability for retailers, is applicable in supply chain management when inventory is viewed as the supply whose yield is to be made the most of. Having the right inventory and having it positioned at the right time is difficult and challenging. Insufficient inventory means lost sales opportunities, both immediate and longer-term by customers. Too much inventory means price markdowns to sell it-and reduced profits. Firms working on thin margins especially feel such pain. Many items, as retailers know, enjoy a short shelf life relative to demand to the price customers are willing to pay. Firms that are in dynamic, volatile businesses, such as fashion, and ones dealing with strong seasonality, such as retailers with Christmas, know the impact of short product life cycles.

What to do

seasonality items or new products. Those plans reflect underlying lead times from suppliers to factories and from factories to distribution centers. Key factors in the lead times are prompt, dependable transit times. The effects of the carrier actions are about more than transport; they are about supply chains. All these actions impact every business, and especially retailers. Supply chains require dependable service for best results. Service irregularities and resultant creep can require companies to go into firefighting mode in order to try to compensate for problematic service. Significant expediting may be used and is a sign of process breakdown. It creates de facto chaos. Products may be flown to keep production lines going or to meet sales needs. Multinationals, with their global scope, can be particularly concerned with all these events. Uncertainty creates a type of supply chain risk, beginning with customer service, and

is the driver for carrying extra, unnecessary inventory to buffer that unknown. Consistent product availability is important. To deal with varying transit times, more inventories - more safety stock - will be added throughout the entire production and finished supply chains. Additional working capital is tied up in raw materials, work-in-process, and finished goods. This is investment that could be used elsewhere. Such added inventories are an anathema to supply chain management and to lean logistics. The net result is there is now a third group of inventories in the supply chain. Another disruptive issue caused to carriers’ customers by service inconsistency is inventory yield maximization risk. This effect, as with the other performance problems, ripples across the entire supply chain. With multi-channel sales, the disruption can be significant. Ocean carriers practice a form of yield management. For example, on the transpacific eastbound trade, they try to balance the timing

All ocean container customers are affected by what carriers do. Multinationals, with global facilities and suppliers in multiple trade lanes, have felt the effect even more with the various operating changes by container lines. It is about supply chains and not about ocean shipping as a logistics action. Companies need to take corrective actions. How do they recover from the ocean transport inconsistency, and how do they achieve consistency? Since transportation is often a key to speed of inventory, then its inconsistency requires different approaches for remedies. There are tactical or operational efforts that can be implemented. The emphasis for the planned actions is not about moving containers. It is about the flow of products in the containers. These include increasing the use of practices such as transloading and cross docking at ports to reduce time and handling and to better position inventories where they are needed. In addition, there is cross docking at distribution centres to more quickly place products at stores or at customers’ warehouses. Supply chain execution technology is an excellent tool to manage overall operations.

May 2014 51


Business intelligence

It is targeted for international, can be integrated, and has exception management and event management to manage and provide visibility to global supply chains from purchase order placement through to container delivery. It helps to coordinate the entire supply chain. Tactical adjustments, while needed, are not enough to compensate for what has happened and is happening. The effect is not limited to one origin-destination or, even, to one trade lane. Corporations are dealing with multi-echelon inventory systems and with essentially an industry-wide problem with ocean carriers. It is worldwide in scope and affects the global supply chain. Three, interconnected strategic actions that companies can take are: 1) Perform holistic performance analysis. The need is to optimise the total supply chain. Core components to the assessment model are: Process Organisation Technology Product flows Information flows Financial flows Costs Key performance measures Capacity, utilisation, and scalability of supply chain The analysis should confirm that the supply chain is aligned with the corporate strategy. Start from the customers’ warehouses or from the company’s stores and build back the supply chain. Supply chains are about pull; that is why the initial point is the customer or store. Assess what is done, how, when, and why? Continue building back through critical suppliers and through their supply chains. Identify where performances are below standards or expectations and where they exceed. Determine the reasons, both internal and external, for these results. Improve the supply chain process. Then establish what logistics service providers, including ocean carriers, best fit into the new business model. 2) Implement lean supply chain. Take the holistic review to another level. Supply chain managers understand how lean logistics and supply chain management are similar with the emphasis on pull, not push,

52 May 2014

TOP 10 WORLD CONTAINER PORTS 1980

1990

2000

2011

New York/New Jersey

Singapore

Hong Kong

Shanghai

Rotterdam

Hong Kong

Singapore

Singapore

Hong Kong

Rotterdam

Busan

Hong Kong

Kaohsiung

Kaohsiung

Kaohsiung

Shenzhen

Singapore

Kobe

Rotterdam

Busan

Hamburg

Los Angeles

Shanghai

Ningbo

Oakland

Busan

Los Angeles

Guangzhou

Seattle

Hamburg

Long Beach

Qingdao

Kobe

New York/New Jersey

Hamburg

Dubai

Antwerp

Keelung

Antwerp

Rotterdam

Source: Containerisation International Ports are ranked based on the total number of TEUs handled in a year.

and on removing the wastes of time and inventory. The lean logistics needed is about the four walls of the distribution centres and factories and more. The challenge of lean is compounded when it comes to international. Many parties and trade partners are involved which challenges the abilities to remove waste from a supply chain that extends thousands of miles. Add in the interchange of information between and among these various parties. The challenge is that each of these parties has a different role and responsibility. Each is working on the internal efficiency of their operation and not on the efficient movement, with no waste, for a shipment. Value stream mapping is a very good tool to use with the supply chain. Another important part of lean supply chain success is supplier performance. Suppliers, include container lines and other logistics service providers. Analysis of supplier reliability - and its implied impact as to time, inventory, and risk - can highlight key suppliers and their role in effective supply chain functionality. 3) Segment the supply chain. Supply chain execution deals with many variables. People and groups, both inside and outside the company, have their particular issues and requirements, some of which may conflict with supply chain plans and operations. These demands create noise that can interfere with performance. As a strategic tool, to dampen the noise, and to keep focus,

especially given the strategic activity, supply chain segmentation is a very good action. Segmenting is not unbundling the existing supply chain structure, it is using the supply chain in a targeted way to best support company strategy and to maximise return. Segmentation is focused, multi-tier supply chain management. The result is emphasising important factors that CEOs, COOs and CFOs care about, such as higher profits and reduced working capital. Supply chain executive can target select product categories, or high-value customer or market sectors, or other criterion.

Conclusion Container lines have played a vital role in the growth of global trade. They have been a strong logistics service provider for companies as worldwide sourcing, manufacturing, and sales have expanded. Yet, as these carriers enjoy significant growth, they have made and are making operational changes that lack dependability and can negatively affect the supply chains of their customers. In some ways, ocean carriers and multinationals are diverging in what they are doing when the focus is placed on supply chain performance. Large shippers need to take tactical actions to counter the impact of some carrier actions. More importantly, companies should develop and implement strategic moves to improve the functioning and results with their global supply chains. . -Tom Craig, LTD Management


EvEnts

Famco promotes Volvo genuine lubricants Famco’s Construction Equipment and Truck and Bus division recently held a seminar designed to promote customer awareness by highlighting the benefits of choosing Volvo genuine lubricants Organised by Farhat Chaudhary, National Aftermarket Sales Manager, Famco, this year’s seminar was conducted by Ahmed Farwiz, Strategic Global Accounts Manager, Africa and Middle East from Exxon Mobil Fuels and Lubricants. More than 90 delegates, including UAE Government

officials from Dubai Police and Dubai Municipality, and semi government organisations including Emirates Transport, actively participated in the sharing of ideas. Fleet owners among the delegates were delighted with the provision of useful information including the chemical

specifications of lubricants to be used for their Volvo fleet, and left with clear knowledge of the difference between different brands of lubricants, and the benefits of their choice of Volvo genuine lubricants. Famco strongly recommends using Volvo genuine lubricants for Volvo construction equipment , Volvo trucks and Volvo buses, and customers were reminded that Volvo lubricants are specifically formulated and blended to meet the vigorous work requirements of Volvo construction equipment, Volvo truck and Volvo bus products operating in the UAE. Volvo genuine lubricants not only improve the life and performance of their fleet but also minimise the operating cost by optimising driveline performance and reducing fuel and oil consumption. Their use can also increase service intervals and uptime of a customer’s Volvo fleet. Even in tough operating conditions, the lubricants keep components clean, reduce wear and reduce maintenance costs. Following a similarly successful seminar held last year, Famco witnessed a 70 per cent growth in sales of Volvo genuine lubricants in the year 2013 compared to 2012, and expects this year’s event to prompt similar patterns of growth, with orders already taken immediately after the event.

May 2014 53


Air Arabia now also flying from RAK International Airport 54 May 2014

The low cost airline has a new hub in the UAE. Beginning flights to an initial eight destinations, RAK Airport will eventually see Air Arabia add more routes making it an attractive direct destination for tourists to the emirate


EvEnts

A

ir Arabia began operations from Ras Al Khaimah, with an official ceremony attended by His Highness Sheikh Mohamed Bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah, His Excellency Engr. Sheikh Salem Bin Sultan Al Qasimi, Chairman, Department of Civil Aviation (DCA), Ras Al Khaimah, and His Excellency Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia. The official ceremony, which was also attended by royals, senior officials from Ras

Al Khaimah, trade community and press marked the launch of Air Arabia operations from Ras Al Khaimah International Airport. Earlier on the same morning, Air Arabia’s inaugural flight departed from RAK International Airport, travelling to Jeddah in Saudi Arabia. At the ceremony, Air Arabia and Ras Al Khaimah DCA said both are committed to using the start of this service to further strengthen the travel and tourism sector of the emirate. The launch of operations follows the recent establishment of an Air Arabia hub at RAK International Airport, which is the airline’s fourth international base, and second in the UAE. Two new Airbus A320 aircraft have now been based in Ras Al Khaimah International Airport, following a strategic partnership signed between the airline and Ras Al Khaimah Department of Civil Aviation. Air Arabia launch routes include direct services to Jeddah in Saudi; Cairo in Egypt; Muscat in Oman; Islamabad, Lahore and Peshawar in Pakistan; Dhaka in Bangladesh; and to be followed by Calicut in India. His Excellency Engr. Sheikh Salem Bin Sultan Al Qasimi, Chairman, Department of Civil Aviation (DCA), Ras Al Khaimah said, “Today we mark another milestone in the UAE aviation success and growth journey. Our partnership with Air Arabia will allow us to increase the accessibility of Ras Al Khaimah to international passengers, whilst also increasing the flow of tourism to the Emirates, which will have a direct effect on the local economy. This step further signifies the important role we place in developing the aviation scene in the emirate which in return will support the ambitious plans we have set for developing the emirate’s tourism and business sectors.” Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia said, “We are delighted to extend our reach across the UAE through our new hub in Ras Al Khaimah and this partnership marks an exciting new era for air travel in the Emirates. The establishment of our operations in RAK International Airport testifies the synergy between the emirate’s tourism expansion plans and Air Arabia’s

ambitious route expansion strategy. We look forward to extending our routes from RAK as we continue to make travel more convenient for people living and working in the Northern Emirates.” “The increase in tourists and visitors entering Ras Al Khaimah suggests that a solid potential for developing the emirate travel and tourism sector exists. This partnership offers enormous potential benefit not only to the local aviation industry but to the overall economy,”said Adel Ali, Group Chief Executive Officer of Air Arabia.“With our hubs in Sharjah and Ras Al Khaimah, Air Arabia is well positioned to cater to the travel needs of the Northern Emirates, a position we believe will deliver real value to our customers and shareholders while transforming the region’s tourism sector by bringing millions of potential new visitors within just a few hours’ reach.” In addition to increasing the accessibility of Ras Al Khaimah to international passengers, this partnership is anticipated to provide a direct boost to the local economy through the increase in tourism flow as well as the job opportunities for Air Arabia employees who will be permanently based at RAK International Airport. Air Arabia’s first flight from RAK International Airport took off to Jeddah on May 6 at 08:25 am followed by a second flight to Muscat at 10:25 on the same day. The carrier will offer some 25 weekly launch flights from its new Ras Al Khaimah hub to Jeddah, Muscat, Cairo, Islamabad, Lahore, Peshawar and Dhaka. Established in October 2003, Air Arabia PJSC, listed on the Dubai Financial Market, currently operates services to 97 destinations covering the Middle East, North Africa, Europe and the Indian Subcontinent from operating hubs in Sharjah, UAE; Alexandria, Egypt; Casablanca, Morocco; and now Ras Al Khaimah, UAE. The Department of Civil Aviation, Ras Al Khaimah is responsible for operation and regulation of the air transport system in Ras Al Khaimah. The DCA was established in 1974 to support the Emirate’s economic and social development.

May 2014 55


UNWIND

Cold storage: optimisation by degrees As the food industry gets a taste of rising prices, fluctuating energy costs, and new regulations, shippers develop a growing appetite for 3PLs and refrigerated public warehouses to help drive greater efficiency inside the four walls. By Joseph O’Reilly

W

hen things go sour in the food supply chain, there’s no recourse. That’s the nature of the business. Quality and safety are paramount. Chain of custody is sacrosanct. When one link fails, the consequences are considerable. What makes cold storage logistics unique also makes it challenging - the energy required to maintain temperature-controlled units in transport or in refrigerated and frozen storage facilities; the sensitivity to exceptions; the lack of automation; differing standards among value chain partners; and stock keeping unit (SKU) proliferation. Supply and demand patterns are changing, and food supply chains are feeling the pinch.“Food producers either have to raise prices or become more efficient,” says David Stuver, vice president of engineering at Atlanta-based thirdparty logistics (3PL) provider. Innovation is the key to addressing the price/efficiency dichotomy, Stuver says, and it boils down to four areas: energy; delivery miles to stores; labour optimisation; and working capital as it relates to better use of inventory. Even still, the cold chain is hyper-sensitive to certain questions and conditions beyond normal supply chain parametres: What if a temperature sensor is triggered?

56 MAY 2014

What if visibility is compromised at an intermodal exchange? What if packaging is tampered with? What if a product needs to be recalled?

Containing costs Cost containment and reduction are the biggest drivers for supply chain practitioners. But in the cold storage and distribution space, that reality is amplified by degrees. Rising prices are a concern for food shippers - especially smaller mom-and-pop producers and We’ve invested distributors. Profit margins are slim, and seasonality heavily in green is fickle. A spike in costs initiatives and can have a ripple impact energy reduction throughout the supply chain. As a result, many food programmes, but producers and distributors depend on 3PLs and public in the long term, refrigerated warehouses to energy only has help drive out costs. In turn, providers are doing one way to go: up service their part. “We’ve invested heavily in green initiatives and energy reduction programmes, but in the long term, energy only has one way to go: up,”says Doug Harrison, President and CEO of Vancouver, B.C.-based VersaCold. The 3PL operates 33 facilities across Canada, with five business units covering transportation, 4PL, 3PL, warehousing, and distribution services. Energy costs are also a concern for Hillsboro, Ore.-based Henningsen Cold Storage, which operates 10 facilities across the United States, but has a heavy market

presence in the Pacific Northwest. Both VersaCold and Henningsen have invested in equipping their facilities with green features, including LED lighting, variable speed motors for boiler rooms, and evaporators and compressors, as well as R-value insulated panel materials to seal walls and ceilings. Ensuring cold storage facilities are properly maintained to protect the integrity of refrigerated and frozen products comes at a cost. Insulating the end customer - whether it’s the consumer, retailer, or distributor from price fluctuations is challenging. More shippers are focused on pricing than on solutionsoriented partnerships, notes Tony Lucarelli, Executive Vice President at Henningsen. It’s a cyclical phenomenon, but one that is again trending toward transactional, given current economic circumstances. “Shippers are trying to take cost out of the supply chain,”adds Stuver. “They are addressing packaging changes, and maximising cube. Retail ordering behaviors are changing rapidly. We’re seeing higher case-pick volumes. That’s pushing the work upstream in the supply chain.” The food supply chain is heavily influenced by changing consumer tastes. New attitudes toward different foods, and growing appreciation for America’s ethnic diversity, have an impact. The e-commerce phenomenon has similarly spoiled consumer expectations. Shoppers are accustomed to getting what they want. Food supply chain players are stocking more types of product, which adds complexity. www.inboundlogistics.com


New Heights in

OPERATE & INTEGRATE WORLD

RECORD

5,000 TONS

HEAVIEST ITEM BY ROAD

LARGEST FLEET

1, 800 TRUCKS 2,200 TRAILERS

2 MILLION

FREIGHT

TONS PROJECTS CARGO

EXECUTED ANNUALLY

2 MILLION

SQM TERMINAL WAREHOUSING

FACILITIES

The journey that started with a single truck seems a distant memory. Since 1965 our fleet grew over 1,800 trucks and 2,200 various types of trailers such as flatbed, low bed, extendable and semi-hydraulic. In addition to other types of trailers such as conventional hydraulic, SPTs and SPMTs. Our terminal and storage capacity is over 2 million SQM with more than 6.9 million MT of exports a year. Our formula of success is to keep everything 'in-house' starting with employing the right calibers, owning state of the art equipment and utilising the latest technology. Then, we are left with the daily task to integrate all of our resources to offer our clients a holistic logistics & SCM solution.

Heavy Lift Transportation Freight Forwarding Terminal & Warehousing

Please visit www.almajdouie.com to find out more about our integrated services. Tel: +966 13 8198111

GLOBAL SUPPLY CHAIN MAY 2014  

supply chain management, logistics and supply chain segmentation

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