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Issue 50 | NOVEMBER 2012

YOURLOGISTICS LOGISTICSAND ANDSUPPLY SUPPLYCHAIN CHAINMAGAZINE MAGAZINE YOUR

modern warehousing modern warehousing IN THE MIDDLE EAST technology THE EVOLUTION OF THE WAREHOUSE

PROFILE | 6

ANALYSIS | 12

FEATURE | 36

MODERN WAREHOUSE

EHrhardt & partner

rosoom wallet

Demand-driven design

Warehouse management

New payment innovation

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PUBLISHER’S NOTE

The Essential Warehouse No one wants to keep stocks. Goods shall arrive and shall be distributed to the market immediately. With that scenario the inventory costs can be kept to a minimum and the time from production to getting the goods to the consumer can be minimised. But things do not always work like that. The variety of goods has increased and more and more SKUs have to be stored and administered in the warehouse. The Gulf Region has positioned itself as the turning point for any kind of product. So the warehouse has to cater for that and, as a result, hundreds or even thousands of new warehouses have been built in the region. When looking back a few years, we were recognising the Pacific Controls Building with its LED watch when driving from Dubai to Abu Dhabi on Sheikh Zayed Road. It was standing there all alone and we all were wondering why they put the building there into the desert with no one around.

These days we see dozens and even hundreds of warehouses in that area that even reach back to the Emirates Road. All of this happened in the past 4-5 years when the world has been in a constant state of crises. So we have to see that warehouses are an essential and integrated part of the global supply chain. Yes, we need to reduce the time that goods are stocked in the warehouse, but we also have to add new services that need to be carried out in the warehouse. Technology in a wider range has entered the warehouse premises and the newest forklifts, reach trucks, WMS solutions and most modern handhelds are in use these days. Clients demand transparency and the service provider has to cater for that. Things in the warehouse have changed in the past years, but the warehouse is not obsolete. The warehouse has even been promoted to be a distribution centre packed with technology and run by experienced warehouse managers.

Reinhard Wind Owner & Managing Director, Gutenberg Publishing FZ-LLC

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CONTENT IN THIS ISSUE

NOVEMBER 2012

30 ANALYSIS

warehouse optimiSation

06 COVER STORY

the modern warehouse Long gone are the times when a warehouse was just about holding supply and inventory storage. As the supply chain moves to a leaner, demand-driven model, the trend is towards less inventory in the system but with exploding numbers of SKUs. Thus, today’s distribution centres are designed to expedite product flow.

Over the past 30 years or so, the role and the meaning of the warehouse have changed significantly; great emphasis is now being placed on customer satisfaction and retention along with the need for upgrading and modernising.

36 feature

REPORT

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built to suit Economic Zones World’s Joe Garwood, Global Sales Manager, Build to Suit Services, explains the concept and all other aspects of the innovative EZW offering.

Dubai Trade, the premier trade facilitation entity that offers integrated electronic services from various trade and logistics service providers in Dubai under a single window.

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40

REPORT

TECHNOLOGY

Microsoft windows 8 - concerns

one-stop solution WITH LINDE

Microsoft has launched the much anticipated Windows 8 in the Middle East.

Productivity & Ergonomics, two major keywords in Logistics where maintaining high throughput is the main concern, Linde Reach Trucks “Active” series have them ALL.

LOG. Window

REPORT

28 ANALYSIS

FEATURE

TECHNOLOGY

EVENTS CALENDAR


COVER STORY

T

The Modern Warehouse From FromDesign DesigntotoBuilt Builtby byPaul PaulAntonio AntonioSchneuer Schneuer

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COVER STORY

Long gone are the times where a warehouse was just about holding supply and inventory storage. As the supply chain moves to a leaner, demanddriven model, the trend is towards less inventory in the system but with exploding numbers of SKUs. Thus today’s distribution centres are designed to expedite product flow rather than provide long-term storage. Therefore, it is paramount to understand the logistics processes and to wrap a box around these processes. When designing a logistics facility the ultimate goal is to minimise cost. This includes both capital expenditure for the construction as well as operating and maintenance cost. The main principle should be the productivity of the operation.

Choice of location and setting-out The selection of a DC location is oriented by its function. Does it serve internal flows? Or is it a 3PL centre with a varying clientele? Is there a barycentre? Existing transportation networks are just as important as the availability of skilled labour and the accessibility of utilities. And of course the land plot chosen should be in a constructible area where this activity is allowed to be performed. Obviously in the Middle East planning authorities have in many cases allocated specific areas to the logistics activities and have furthermore already put in place the corresponding infrastructure. Beyond that, the choice of the right land plot considers its size and shape as well as the geotechnical properties which have an imminent impact on the feasibility of the project. November 2012 I

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COVER STORY

The functional design Targeting the minimisation of operating costs while maintaining desired service levels, as much information about these operations must be collected. Assuming a conventional case pick operation, this includes the number of shipments and production and receiving cycles as well as the type and classification of the inventory, the handling equipment involved, the warehouse management system and so forth. From this information can be deducted three major factors which are driving the design of the modern DC: pick slots, cubic inventory storage and docking requirements. Assigning an efficient slot type to each item in the DC should be based on the shipping volumes and the replenishment activity. The trade-off in productivity is pick-line length vs.restocking activity. The necessary storage volume in number of pallets is the ability to store cube.

The more balanced the work load, the more efficient the design.

Once pick slot requirements are figured out and converted into rack bays, the cubic inventory will define the height of the bays and thus, the required size of the entire building. The dock has become the heart of operations which creates efficiency but eventually also bottlenecks. Docking requirements are defined by number and size of services, hours and days of operation as well as the nature of the handled batches. The marshalling area can range from 10 to 40 metres depending on the amount of cross-dock and product flow or if there is handling required like packing, wrapping or tracking. With the evolution from inventory storage to product flow, the square metres per product have decreased but have essentially impacted the requirements for more efficient facility designs. We therefore expect an evolution of the length-to-width ratio of a modern DC of 24 000 m² to become a 1:1.65 rather than a traditional average of 1:2. This translates into a model facility that might be 200 metres long by 120 metres wide. To expedite flow through, two opposite 20 to 25 metre deep marshalling areas will simultaneously handle shipping and receiving operations. A portion of the racking area might be very narrow aisle, some bulk storage will be necessary too.

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This type of design will be required because the modern warehouse does many more activities than just storage. Items are moving through the distribution centre undergoing whatever services the customer is expecting.

The Architectural Design The architectural design is driven by cost, speed of execution and quality on one hand and on the other hand by aesthetics, environmental and social implications. The outcome shall be a lucrative investment and a comfortable and efficient facility but simultaneously a building which lasts for more than three decades, is polyvalent and able to accommodate 3 to 10 successive tenants and ultimately becomes a “good neighbour” in the block. Tenants and investors alike want to make their buildings highly flexible. Therefore, thinking ahead to consider extension planning and what-if scenarios will enhance the DC’s value.

Facilities need to be easily adaptable to future needs.


COVER STORY

The plot size should be suitable for a building extension and for an expanding trailer or external storage park. Also the utility services should be sized to handle future growth. The structural grid of the building shall foresee different racking designs and also the change to more sophisticated handling equipment. Here the warehouse flooring constitutes the centre of interest. It is the utmost important piece of construction affecting the logistics operation. Over time, the material and equipment have become heavier and more elaborate and this puts more stress on the slab. This is particularly a problem in hightraffic areas like loading docks, where forklifts are especially hard on joints of the concrete slab. There are obviously solutions like armoured joints, joint-less slabs and

improved concrete made with fiberreinforced and shrinkage compensating mixes.

But certainly a modern warehouse integrates into the environment in a number of sustainability aspects.

The above functional design has to be related to the surroundings, technical and service buildings, orientation to the sun and

These sustainability aspects can be very easy to implement. Some choices fitting well to the Middle East are the use of clerestory

dominant winds, battery charging room, clerical and operational offices, returns handling and so on.

Responsible choices of construction systems and materials Construction with low environmental impact Energy, water and waste management Maintenance planning and execution Thermal, acoustic, moisture, visual and smell comfort High air and water quality

Sustainability One major trend guiding DC design today is the desire to create sustainable and environmentally friendly facilities. In the Middle East this doesn’t necessarily mean to “go green”. There is no need to integrate all topics of the commonly applied LEED® matrix. Some points like “bicycle stands”, “skylights” or “bringing outside air in” don’t seem to take the region’s geographical conditions into account.

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COVER STORY

windows instead of skylights in order to prevent direct solar thermal impact. And it should be specified to use white reflective roof material to further reduce the heat gain. Use ceiling mounted fans to prevent heat stratification and provide air movement. Or consider an extraction system on the opposite side to the loading docks in order to have a continuous air-flow through the building to achieve a wind chilling effect.

Use energy-efficient fixtures, systems and appliances, but even better, use a building management system (BMS) which monitors and controls all consumptions in the building. Other than the air-conditioning, lighting is the major energy consumption. New efficient T5 compact fluorescents are on the way to becoming a standard for the industry and are a big payoff. Since there is a number of airconditioned DCs in our region, maintaining a very tight building envelope with the best insulation coefficient is critical to energy savings. The entrances at the loading docks should be provided with means to reduce infiltration of outside air into the building. Tight seals around the trucks when they are backedup to the dock in combination with higher insulation of the sectional doors are an effective method. It becomes sophisticated if the DC shall also produce some energy: an installation of photovoltaic panels on top of the facility can become a utility size power plant in the megawatt range. But the regulatory environment does not always allow such investments to be profitable. Certainly solar thermal installations should be considered: a cheap and efficient solution to make hot water. Indeed, a warehouse is not a residential building, however, people do shower and wash their hands there too.

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Paul Antonio Schneuer, Business Development Director, GSE Design & Build

“Such modern warehouses are still not the norm in the UAE and even less in the greater region. But there are already some respectable examples out there in our industrial zones. And a high quality modern warehouse finds a quality tenant much more easily and therefore also reliable investors.�


ANALYSIS PROFILE

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COVER STORY

Ehrhardt + Partner: Modernisation of Warehouses

The warehouse management system LFS has been safely and successfully integrated many times within the frame of complex modernisation projects. 12

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COVER STORY

The modernisation software system’s flexibility, functionality and reliablitiy as well as on the specialist knowledge of the partner company, commissioned with modernisation. Here, Ehrhardt + Partner can play off their competence. Together with their specialized subsidiaries, E & P company realizes complex warehouse modernisations within short times reliably and safely.

Ehrhardt + Partner contribute to modernization of warehouses by:

Correction of disturbing sources and reduction of downtimes Increased process security Improved use of space Transparent and efficient processes in the entire warehouse Basis for the application of the most modern picking technologies Investment and future security

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COVER STORY

The service and supply chain know E+P for their modular LFS warehouse management system. This system can be used across various industries and is designed both for simple and more demanding requirements. The standard system supported by a relational database controls the entire material and information flow in logistics centres by means of dialogue supported applications.

LFS guarantees increases in process efficiency, allows significant savings and a long-term maintainability at low costs.

The high development standard of the LFS warehouse management system guarantees customers maximum investment security and is future-proof; high functionality and an extremely economical quality product. It goes without saying that the LFS system has communication interfaces with all conventional ERP, MMS and MRP systems; likewise there are services for use in SOA environments, and easy connection of software systems.

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An important focus of activity at Ehrhardt + Partner is the reliable, deadline compliant and on-budget modernisation of manual and automated logistics. The reliable integration of LFS into these systems and connection to prevailing carrier haulage, customs and online shop systems has already been put to the test in multiple projects.

Problem-free data exchange using computers and other software systems via EDI, IDOCS, XML, FTP, DDM, TCP/ IP MQ Series socket connections, etc. is guaranteed.


COVER STORY

Compared to other warehouse management systems, LFS saves up to 70 percent with regards to future adaptations or extensions.

Accepting their New Technology E+P have a logistics centre where people are trained how to handle their software. At their innovative logistics centre, top trainers and warehouse logistics experts convey highly specialised learning content encompassing the entire subject area: fascinating and above all, authentic, practical experience for practical application – from radio frequency via Pick-by-Voice to RFID. So whenever a new customer wants to implement their software in their warehouse, they learn it in practice, and help them to implement the software on their own whenever they need it.

macroeconomic processes and the operation of markets, critical infrastructures and provision to consumers. In addition, logistics has long been a high-tech industry, with important developments like RFID, GPS, satellite navigation or in turn driving ecommerce. The next generation of the Internet will lead to completely new business models and industrial processes. Logistics companies will also be able to provide all or parts of more complex production, delivery and service processes than ever. It is in this light that the competitiveness of industries is increasingly dependent on logistics. For all these reasons education and good knowledge helps to keep up with the

accelerating changes, and the Middle East keeps on growing with the rest of the world as an unity. It is recommended that associations collaborate or partner to some degree to consolidate and deliver a common foundation upon which to build a specialisation. That is a big challenge, but E+P believes it can be done. With their expert knowledge and experience, they can introduce new technology to family owned companies having traditional ways and which are losing their knowledge and expertise by relying on ageing manpower. They can help them in keeping their knowledge gained through the years, and assimilate it with existing and future technologies.

The future of a modern warehouse in the Gulf Region In today’s hectic and complex business environment, supply chain professionals need to make certain that they themselves as well as their staff have skills to succeed, that’s where education comes in. The challenges of the 21st century with globalisation, the growing influence of the World Wide Web and accelerated climate change will affect all industries and will call governments and executives all over the world to action.

Logistics will be a genuine trendsetter for the economy of the future The majority of political, regulatory and legislative stakeholders still see logistics in the limited sense of goods transport, warehousing and special process solutions, rather than recognising the macroeconomic relationships. Logistics fulfills a vital backbone function in supporting November 2012 I

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COVER STORY

The Ideal Warehouse Nowadays, discipline and technology combined with advanced management skills have conquered the warehouse premises. That was very necessary to align with the high-profile services that the freight industry is offering these days. By Reinhard Wind

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Do you remember the time when warehouses were built for storing goods only? At that point in time any type of product was brought into miserable planned and maintained warehouses for the sake of being stored. That means that goods on fragile and poorly built pallets were brought into warehouses and were left there for a longer period of time until all the stock was used up and the next vessel arrived for refilling the stocks again. Yes, this was a scenario of “yesterday” when warehouses were built for the purpose of storing goods. As we all know this is not true for the modern warehouse of today any longer. We have to admit that the term “warehouse” is not fully correct any longer. These days we are talking about distribution centres as a warehouse now has to cater for much more than for just storing goods.


COVER STORY

We call it contract logistics and/or third party logistics providers (3PL). These guys very well understand the needs of the different industries and they offer their services for very competitive rates. Often they offer their services for a particular niche only because the needs for handling pharmaceuticals, explosives, luxury watches, and garments, spare parts for cars and trucks or heavy tools are quite different. Contract logistics has become a booming business in the Gulf Region. But the client! He also has changed quite a lot over time and has become very, very demanding.

some other destination somewhere around the globe. We call it the global supply chain that has infiltrated our daily work. We are no longer a “stand alone” solution that can live without any influence from the outside world, but we are an integrated element of the global supply chain network. We recognised that the logistics and supply chain operations in the Gulf Region had to widen their vision and had to bring real supply chain professionals on board, who have the experience to integrate the local operation into the global supply chain network smoothly and profitability.

The client wants to know everything in detail for a fair price and he wants to know where his products are, when they arrive and he wants to have this information available at any time.

The logistics and supply chain companies in the region also had to experience that they only can survive and thrive, when establishing themselves as a valuable link in the global supply chain. That means that only when succeeding in positioning their own operation as a real value offer in the supply chain they can survive and thrive. The client then honours it by booking the respective services. But not only that. The operation has to be profitable in the long run.

Therefore, warehouses needed to adapt to those requirements. Warehouse management systems provide the customer with the information he requests and the client can track and trace the goods and he can set his sales strategies accordingly.

In fact storing is not the thing that you want any longer because no one wants a lot of assets lying around, as it is dead (not working) capital.

A warehouse is a performance centre where various value added services have to be performed. Goods are brought in and they are stored for the shortest time possible. Before being shipped to the retail outlets, supermarkets or any sales organisation, the products are picked, packed, assembled and sent to destinations throughout the region.

In past decades in the logistics world, a complete “new” market niche has been created.

Over the past five to ten years, the warehouses in the Gulf Region have evolved to something like high bay warehouses with super flat floors, high quality racking solutions with a narrow aisle set-up and VNAs for utilising the floor space and they have zones for value added work. The warehouse staff these days is skilled, trained, knowledgeable and motivated to do a good job. The managers very much concentrate on the safety standards to reduce the risk of injury and they increase the efficiency in the warehouse dramatically. We could say that discipline and technology combined with advanced management skills have conquered the warehouse premises. That was very necessary to align with the high-profile services that the freight industry is offering these days. Air, sea and road transport has improved dramatically in the past decade and “just in time” services are challenging warehouse operations. Every single day thousands, of planes, ships and trucks are bringing goods from all over the world to be stored and redistributed in the region or reshipped to

And what does this view have to do with the modern warehouse, you might ask? Everything – is the answer. Otherwise we still would deal with outdated and old, badly maintained and insufficient warehouses. Only the recognition to be an integrated link in the global supply chain made warehouses evolve into distribution centres with a high value service offer. But it was not easy for the contract logistics industries to learn this lesson. Actually they “needed” the bankruptcy of the Lehman Brothers in September 2008 and the following economic crises to be able to understand and to redesign their offer, so that they can sustain their operations even in hard times. But the choice was easy: closing down, selling or reinventing themselves by adopting the offer to the demands of the client. With that, the view towards their own services changed completely. Things got dramatic at first, but after months and even years of adopting the service portfolio of the contract logistics companies could gain ground and could change into profitable companies. It is always difficult when the market changes from a seller market to a buyer market. In a buyer market the buyer says what he wants and needs and the seller has to provide the services for that.

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COVER STORY

That needed a lot of flexibility and rethinking as so many companies were used to easily selling their services to the market because the demand was by far higher than that of the supply. But this is not the end of the story. After the bankruptcy of the Lehman Brothers in September 2008, the world was in a constant state of turmoil and crises. The never-ending list of globally changing conditions and the insecurity has left scars on the supply chain operations. The highly experience Supply Chain Manager is requested to anticipate so many things and the consumer requests the shortest time to market. Goods are manufactured in some part of the world one day, and they should be available in the shelves of the supermarkets and stores all over the world almost on the next day. Then, we see changing economical and political situations, embargos, wars and natural catastrophes; and we see the Supply Chain Manager with his operations and his warehouses, trying to find a red line amongst all these sensitive and fragile global factors. Can you remember what happened when this volcano with an unpronounceable name in an island erupted some years back? The whole of Europe was in a state of shock when the air traffic stood still from

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one day to another. Or just look a few weeks back when hurricane “Sandy� hit the shores of the United States and the daily supply collapsed within hours.

e.g. if some key personnel leaves, if some security threats affect the global and local supply chain of if the global economy gets hit again.

Then we saw the Arab spring where trade routes were badly affected and we see the pirates in Somalia and other parts of the world, who make the insurance premiums for cargo transport hike up tremendously. All these factors affect our warehouse operation in one way or another.

When setting up such extreme scenarios, the effects on your own operations have to be understood and measures have to be taken if certain things could jeopardise the service quality too much.

So what is the formula for the most modern warehouse? How to plan it for the best? We could say that there is not one formula, but thousands of different formulas. Every operation has to understand its core values and its USP (Unique Selling Proposition).

Every operation has to widen its view in terms of becoming a valuable part of the global supply chain. All of a sudden, shortcomings and bottle necks are discoverable and the urge to solve these matters arise. Then a very high operative stability plus a highest flexibility needs to be put into the equation. Some scenarios and redundancy concepts have to be considered in case something unexpected happens

But all these scenarios are not a onetime look at, but a continuous process that the responsive Supply Chain Manager has to come up with regularly. All these factors influence our view towards our warehouse and the position we have in the local and further on, in the global economy. With that, we develop visions that are enhanced, and that help our operations to go through rough times. We look at our intangible operations with the tangible warehouse and the fleet that we are operating. Supply chain professionals, over time, develop this kind of view and they care very much about all the factors that may or may not influence their operations. Then, and only then, warehouses are built in harmony with the surrounding circumstances and they are part of a value chain, the global supply chain. Then the seeds are sown to thrive and to lead.


Visit the first Logistics Solution Center in Middle East at Dubai DLC

Take your warehouse to the pole position

Full Logistics Software Suite

LFS – your total Solution The warehouse management system LFS, is modular applicable to all industry sectors. It was designed and implemented for both, simple requirements applications as well as complex. Through dialogues based, the LFS manages the complete material flow and information of logistics center.

Perfect Ensemble Playing

Logistics Focused Solutions Warehouse Management System LFS Warehouse Planning and Consulting Warehouse Optimization · Distribution Management EPS – Ehrhardt + Partner Solutions DWC – LLC Software Systems for Warehouse Logistics Dubai Logistics City · P. O.Box 7480 · Dubai, UAE Phone (+971) 4-87 01 000 · Fax (+971) 4-87 01 050 www.ehrhardt-partner.ae · Email: info@ehrhardt-partner.ae

Selected References:

www.ehrhardt-partner.ae

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LOG.WINDOW

UAE logistics market to exceed USD 10 billion in 2015 Barloworld Logistics, a leading provider of logistics and supply chain management solutions, recently revealed that it is considering several small acquisitions to further strengthen its expertise and provide clients with smart supply chain solutions.

This, as the company’s capabilities are being leveraged by clients to align their supply chain strategy with their business goals to achieve a competitive advantage. Barloworld Logistics stressed that rapid market growth and large-scale investments in the UAE’s logistics sector as well as in other GCC states underline the important role of this key industry in realising the economic

diversification program being adopted by different countries in the region. Frank Courtney, Barloworld Logistics Chief Executive for EMEA region, said: “Supply chain management plays a crucial role in the sustained economic growth of the UAE, as an increasing number of investors are taking advantage of the country’s advanced logistics infrastructure and strategic location,” Courtney added. Barloworld Logistics currently offers the full breadth of logistics services and specialised competencies, delivering strategic support to clients in the UAE and across the GCC.

FedEx Express Opens New Facility in Dubai FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, is further increasing its presence in the UAE and expanding its commercial footprint in Dubai. The new facility in Al Garhoud was officially inaugurated by His Highness Sheikh Ahmed bin Saeed Al Maktoum President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and Chief Executive of Emirates Airline & Group, along with Mr. Gerald P. Leary President of FedEx Express Europe, Middle East, Indian Subcontinent and Africa and David Ross – Senior Vice President of FedEx Express Middle East, Indian Subcontinent and Africa Operations.

for customers shipping between North America and the Middle East.

The opening of the facility is another milestone for FedEx in the region. Last year, the company celebrated the opening of a 48,000 square feet facility in the Jebel Ali Free Zone (JAFZA). In 2011, FedEx also launched its new B777 Freighter intercontinental flight route, which provides significant service improvements

“FedEx has been operating directly in Dubai for more than 23 years, establishing our regional hub here, with flights linking the Middle East to the rest of the world. The investment in the Garhoud facility is in line with FedEx’ strategy to continue offering outstanding services that fit our customers’ needs”, said Gerald P. Leary.

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The new facility in Al Garhoud is the fourth and largest FedEx station in the UAE Incorporating state-of-the-art technologies and advanced package processing systems that can sort up to 3,000 packages per hour, inbound and outbound shipments are now processed faster - enhancing the overall customer experience.


LOG.WINDOW

JAFZA and Dubai’s Competitiveness is Strong

Two New Heads at CHAMP Cargosystems CHAMP Cargosystems has appointed Dirk de Rooij Head of Commercial Operations EMEA & CIS and Steven Fayers Head of Proposition Development eCargo to further grow the business and strengthen the management team. CHAMP provides the most comprehensive range of integrated IT solutions and distribution services for all players in the air cargo transport chain.

JAFZA held its annual Business Associates Forum 2012 at the Emirates Towers Hotel on Tuesday the 6th November. The forum attracted experts in their fields, including key business consultants, trade and investment specialists, and government representatives. The evening’s conversation, themed “Competitiveness of a Location”, was designed to answer and discuss how Dubai and JAFZA are positioned to play in the new world economy. Several key supporting

trade partners, consultants and stakeholders were recognised during the forum for their dedication and contribution to JAFZA’s success over the last year and received a token of appreciation. In his closing address, Deputy CEO of JAFZA, Ibrahim Mohamed Al Janahi said: “Without the support of all our stakeholders and partners, without their contribution, their feedback, and their dedication to success,JAFZA would not be the success it is today.”

Dubai International Airport’s Strong Performance Dubai Airports reported strong performance in the first nine months of 2012, with passenger traffic reaching 4.78 million compared to 4.23 million recorded the same month last year. The strongest market in terms of passenger growth were South America with +106.3%, mainly driven by Emirates Airline’s new operations to destinations there, followed by Russia and CIS, Australasia and North America. Jamal Al Hai, Executive Senior Vice-

President, International Affairs & Communications, Dubai Airports, said that “these figures confirm the importance placed on Dubai as an international airport.”

Dirk de Rooij has been named Head of Commercial Operations – EMEA & CIS at CHAMP Cargosystems. He is reporting directly to the VP and is responsible for all sales activities in the EMEA & CIS region. In addition, Steven Fayers has joined CHAMP Cargosystems as Head of Proposition Development eCargo. Fayers has 15 years of experience in air cargo information technology under his wings, having worked for BA (Speedwing), BT (Syntegra), and UBM Aviation (OAG Cargo). “We are delighted that two such recognised sector professionals join our team. CHAMP Cargosystems has set itself ambitious goals, and we expect Dirk and Steven to help us further expand our footprint in the air transport market despite the current economic climate. They bring a wealth of experience and excellent business contacts to CHAMP,” says James Fernandez, Vice President Global Commercial Operations, CHAMP Cargosystems. November 2012 I

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DHL Hosts ‘Partners in Trade’ Event to Discuss UAE to US Trade Routes DHL, the world’s leading logistics company, has hosted the latest event in its ‘Partners in Trade’ series held last November 5, 2012; looking at the importance of the US trade lanes to customers in the UAE. The event provided a unique platform for DHL to bring together partners in the UAE that have an invested interest in trade with the US and was a demonstration of DHL’s ongoing commitment to enhancing international trade lane relationships and increasing global connectivity for the benefit for the UAE economy. The event, which took place at The Address Downtown was hosted by Frank-Uwe Ungerer, Country Manager for DHL Express in the UAE, and Karsten Aufgebauer, Senior Vice President and General Manager for DHL Express

Northeast US. To further support US – UAE trade growth, DHL Express partnered with the US Department of Commerce’s benefit ship operators by allowing them to utilise our full International Trade Administration (ITA) earlier this year to help small and medium sized businesses breakthrough into international sales opportunities in the global market place, by providing

all-inclusive export assistance to the SME sector. Frank-Uwe Ungerer, Country Manager for DHL Express in the UAE, said: “As the International Specialists, we believe it is our overarching duty to support our business partners and tailor our logistics offerings to meet their ever changing business needs.”

GEODIS WILSON SPONSORED DEFENCE LOGISTICS & SUPPORT FORUM 2012 The global multimodal service provider Geodis Wilson was one of the Sponsors of this year’s Defence Logistics & Support Forum which took place at The Oryx Rotana Hotel, Doha, Qatar from 11th to 13th November 2012. The event was attended by Général (2S) Bertrand Louis Pflimlin, Defence Adviser for Geodis and Francois Coron, Geodis Wilson Qatar Managing Director, together with other executives from Geodis Wilson Qatar, who were on hand to discuss the specific challenges of the defence logistics supply chain and how Geodis Wilson’s proven track record can help companies to meet this industry’s specific challenges. 22

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The event focused on developing operational efficiency and streamlining procurement systems to create logistics excellence. With Qatar’s procurement and military spending growing rapidly there is a greater need for the development of efficient, effective and

interoperable logistics systems and strategies. The same is true for Qatar’s allies in the region where progress in recent years has been rapid.


LOG.WINDOW

Globe Express Services (Overseas Group) announces 12 per cent growth

EMERSON INVESTS US $33 MILLION IN MIDDLE EAST AND AFRICA HEADQUARTERS Emerson announced it is investing USD 33 million to expand its Middle East and Africa headquarters campus in the Jebel Ali Free Zone in Dubai. With new distribution facilities, assembly areas, testing and offices, the expanded headquarters campus will enable Emerson to closely support its customers in the region. Covering an area of 13,000 square metres of developed space, it will significantly increase the size of Emerson’s

existing facilities in Dubai and is scheduled for completion by the end of 2013. The expansion will enable Emerson Climate Technologies, an Emerson business, to consolidate two existing Free Zone sites. “The new building will also help us support employees, customers and end-users with product and technical training that might previously have required travel outside the Middle East,” Ed Purvis, executive vice president of Emerson.

Utico eyes Coal Power projects across GCC After announcing its ambitious US$408 million (Dhs1.5 billion) coal power plant in the UAE recently, Utico Middle East, the GCC’s largest private full service utility and solutions provider, is now taking its mission to provide clean coal power to the rest of the GCC. Utico Middle East and Shanghai Electric, the world’s largest coal power company, recently announced a joint collaboration to establish the world’s greenest coal-fired power plant in Ras Al Khaimah. The Dhs1.5 billion facility is expected to be completed in 2015 and will generate 270 MW of power when fully functional. Richard Menezes, managing director of Utico, described the facility as a milestone

development for the Arab world that would enable GCC nations to meet their utility requirements while showcasing their commitment towards clean, green energy resources. Utico is currently in talks with Dubai which wishes to procure 12% of its power from clean coal as well as other GCC countries to implement this unique clean energy project at substantially lower power tariffs.

Globe Express Services (Overseas Group), one of the world’s top 100 global logistics providers, has announced a 12.21 per cent growth from January to August 2012 compared to the same period in 2011, which is in line with the company’s goal of achieving at least a 15 per cent increase in business volume between 2012 and 2013. GES (Overseas Group) further revealed that the UAE remains a key growth catalyst for the company as the country has again improved its ranking in the World Bank’s biennial Logistics Performance Index (LPI) with a score of 3.78, jumping to 17th place in 2012 from 24th in 2010 among 155 countries surveyed and topping the list in the Arab world. GES (Overseas Group) also pointed out recent surveys showing the positive growth of the UAE’s logistics sector, which has been predicted to reach a value of around USD 9.4 billion by 2014. Accordingly, the company has reported a sustained increase in demand for its core services that include Project Logistics and Management (out-ofgauge, breakbulk, RoRo) and Logistics and Compliance Consulting.

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LOG.WINDOW

WSS New Life raft Station Vital to Efficient Passage through Suez Canal

PIERRE BLAYAU REORGANISES RESPONSIBILITIES AT SNCF’S TRANSPORT AND LOGISTICS DIVISION Wilhelmsen Ships Service (WSS) has opened a new liferaft service station in Suez, Egypt, which will service vessels transiting the Suez Canal and Egypt’s main ports. Russell Dinwoodie, General Manager WSS Egypt said: “With over 17,000 vessel transits per year in the Suez Canal, this new Liferaft Service Station is an important addition to our global network. Its strategic location will range of

liferaft services whilst waiting to transit the Canal; avoiding costly deviations, uncertainty over service and supply levels and ultimately, making passage more efficient’. Known as the ‘Highway to India’, the Suez Canal connects the Mediterranean Sea at Port Said and the Red Sea at Suez, making it a hugely important navigation waterway. In addition to liferaft servicing, the new service station will enable customers to carry

out liferaft exchanges at the ports of Alexandria, Port Said, Damietta, Safaga and Nuwaiba. The Liferaft Exchange Programme (LRE) from WSS offers global exchange of out of date liferafts for oprations ones, allowing customers to take better control of costs, and ensure that their vessels remain fully compliant. Since its launch, the LRE concept has proved to be a market shaper, and is fast replacing the traditional liferaft ownership.

Channel Partners Expect “Cloud Professional Services” to be Main Revenue Generator by 2020 New research from Brocade indicates that many channel organisations are being impeded in their efforts to move toward cloud-based professional services due to a lack of flexibility and capability by their vendors. The study revealed that in addition to direct competition, channel organisation’s professional services ambitions are being restricted by a lack of innovative vendor solutions, overly complex programs and proprietary vendor technologies. Based on a survey of over 500 channel organizations worldwide, the report revealed that almost half of respondents expect professional services to become their main revenue generator by 2020. Yet, for 24

I November 2012

the majority of respondents, professional services account for 25 percent or less of revenues today. The research also revealed the growing customer demand for professional services, with complexity and constraints on CapEx reported as the biggest customer challenges. Only 11 percent of respondents currently look to their vendors for innovative finance solutions and 19 percent for marketing funding-- key when trying to build a brand and reputation rather than sell on price. He contends that to compete in professional services sector, channel organisations now need to consider several things such as vendors’ strategies, vision, and approaches to technology design support, etc.

Pierre Blayau, Chief Executive Officer of SNCF Geodis, has reorganised responsibilities at SNCF’s Transport and Logistics Division in agreement with SNCF Chairman Guillaume Pepy. As part of a governance change at Geodis decided by the Board of Directors, Pierre Blayau, Chairman and Chief Executive Officer since January 2001, has become Chairman. On his proposal, Marie-Christine Lombard has been named Chief Executive Officer, effective from 24 October 2012. Ms Lombard was previously Chairman and Chief Executive Officer of TNT NV. Jean-Louis Demeulenaere, Chief Executive Officer of Geodis, is leaving the company to pursue new projects. The Board of Directors joined Pierre Blayau in expressing its gratitude for the work he has accomplished at Geodis. Commenting, Pierre Blayau says he is delighted that a recognised sector professional is joining Geodis to give company employees a new sense of momentum in a difficult economic environment. Guillaume Pepy adds: “Given the crisis in volumes in the goods transport sector, I fully support the changes made by Pierre Blayau. The arrival of MarieChristine Lombard at the SNCF group as Chief Executive Officer of Geodis will strengthen the teams and ready Geodis for a new phase of profitable growth.”


LOG.WINDOW

United Motors and Heavy Equipment Co. awarded top performing service centre by MAN The MAN service centre in Al Qusais managed by the exclusive MAN distributor in the Emirate of Dubai, United Motors and Heavy Equipment Co. has been awarded the top performing service centre in the Middle East and Africa by leading manufacturer of mass transport vehicles MAN Truck & Bus Middle East & Africa FZE. At a ceremony to mark this occasion at the Big 5 International Building & Construction Show in Dubai World Trade Centre, Markus Geyer, CEO Sales Region Middle East & Africa for MAN presented the award to Khalifa Saif Darwish Alketbi, Managing Director of United Motors and Heavy Equipment Co.and Darwish Bin

Ahmed in Abu Dhabi. The UAE service centre outperformed 42 service centres from 35 participating countries in the region, in addition to being ranked among MAN’s top performing service centres globally. Ten service centres from the Middle East and Africa were recognised for excellence, proving the high quality of after-sales

support MAN is committed to providing to its customers in the region. MAN has a big product footprint in the Middle East and North Africa region, with more than 70,000 trucks and more than 8,000 buses currently in operation on regional roads,� said Rudolf Wiegand, MAN Vice president After Sales in Middle East and Africa.

INNOVATIVE LOGISTICS

www.geodiswilson.com

Geodis Wilson UAE LLC PO Box 219, Jabel Ali Freezone UAE Tel. +971 4 880 9220 Fax. +971 4 880 9337 info@geodiswilson.com

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REPORT

BUILT TO SUIT as an Option with Difference Built to Suit Warehouse Economic Zones World’s Joe Garwood, Global Sales Manager, Built to Suit Services, explains the concept and all other aspects of the innovative EZW offering.

When asked what a Built to Suit (BTS) Warehouse is, Joe explains that it is exactly what it is, a warehouse that is built to suit a customer’s individual operation. Customers consider BTS option mainly due to the fact that they say what they need, and we find a flexible solution to deliver their needs such as:

To lease To own Development Management Services 26

I November 2012

The choice is basically down tothe customer’s preference. Most customers prefer an “asset light” approach using OPEX (Operational Expenditure) on their balance sheet as opposed to CAPEX (Capital Expenditure), therefore a leasehold solution is the most suitable. JAFA-Gazeley develops a building at its own cost and risk for an agreed specification, cost and timeline. Our ownership solution is popular because it is also at JAFZA-Gazeley’s cost and risk but provides the customer an opportunity to own the building upon its completion. Development Management is particularly helpful for customers that prefer to own their own building and


REPORT

are happy taking development risk, albeit using JAFZA Gazeley’s Intellectual Property, supply chain and skill sets to deliver a building within the customer’s budget and specification.

Gazeley Pioneers in Warehouse Development Gazeley is an Economic Zones World group company and a leading global developer of sustainable industrial and logistics spaces, with a strong presence in Europe, Asia and the Middle East. They are experts in providing Build to Suit solutions and a tailored service to our customers. Gazeley have developed over 7 million square metres of quality, costeffective warehouses to date and they are committed to consistent and exceptional service in every market that they operate.

services, we can assist our customers on a “Mid-Range” size of circa 5,000 sqm. With respect to our “to lease” and “to own” solutions, we have traditionally been able to work on projects with a 10,000 sqm and above built up area, but we are looking into launching a mid-size range offer into the market later this year. We typically offer 10 to 20 year leases subject to the project in question. We have a large in-house construction team as well as our local and international “Virtual Team” of consultants and contractors who have worked on many of our projects in the past. We take responsibility for obtaining these permissions as it is a “Turnkey” service to make the process easier for the customer. Joe Garwood, Economic Zones World /Global Sales Manager, Built to Suit Services

Expected Realistic Timelines Our philosophy is cradle to cradle, where everything is destined for a new life once it has served its current usefulness.

Our CEVA project was delivered in a market leading time frame for that size of building, but most projects will take between 6 to 9 months to completion. Cost depends entirely on the specification of the building a customer requires, however all of our solutions are competitive and cost effective.

“We are able to produce cost effective “green buildings” to suit a customer’s corporate responsibility commitments.”

JAFZA-Gazeley Projects A recent example of a building developed within the Free Zone was for the international 3PL CEVA. The building is located in JAFZA South and is a 63,121 sq. metre distribution complex, part ambient and part temperature controlled, which was completed in 34 weeks. The building was handed over in compliance with all regulatory requirements within a challenging programme and we also facilitated “early access” for CEVA, six weeks before actual completion. This enabled them to complete installations and commence immediate operation on the day of handover. Gazeley offer sites across JAFZA and TechnoPark and for our Development Management November 2012 I

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REPORT

Microsoft 8 Security Concerns for Middle East Businesses Microsoft has officially launched the much anticipated Windows 8 in the Middle East last 19 November. As the different versions of Windows account for over 84% of the worldwide operating system market share, this new launch had a massive impact on both businesses and home users alike. Nicolai Solling, Director of Technology Services at help AG believes that while overall the new OS will in time enhance security, changes in user behaviour resulting from a massive systems overhaul raised a number of potential security concerns. Windows 8 which is closely linked with the Microsoft cloud offering SkyDrive promotes storage of information on the cloud. As user data is now subject to screening and handling by a third party, they need to be made aware of the 28

I November 2012

implications of this. Furthermore, BYOD, which is already a prevailing trend among enterprises, is sure to be accelerated by Windows 8. This then raises device management and security concerns for IT departments who will have to deal with the influx of mobile devices. Finally, unlike previous versions of the hugely popular operating system, Windows 8 for desktops does not come with any of the essential pre-loaded Microsoft Office applications such as Word, Excel and Powerpoint. As Microsoft Office 2010 is available for AED 1000- about a third of the cost of a high end laptop- home users would be tempted to download pirated copies of the same.


MIDDLE EAST

Media Information 2012/2013 LOG.WINDOW The LOG.WINDOW section focuses on people and achievements. It communicates all important news for the supply chain industry. The reader gets to know about new acquisitions, people in a change and all necessities to be known. The news are brought in a brief and easy to read style. COMPANY PROFILES Most companies have a far wider product and service portfolio than the public knows. That is why we present companies in a way that the reader easily grasps the story behind the company, organization or authority. PROCESSES & SOLUTIONS We look in depth into processes, case studies and solutions to give a wider spectrum of knowledge to our readership. We feature realistic scenarios that are ready to be applied for others. Partly this is covered in case studies, in educational expertises or in industrial analysis. TECHNOLOGY What would the supply chain be without technology? The technology section describes the “must have� technologies and gadgets that make the supply chain processes more efficient and faster. Easy to read extracted from technical providers.

www.logmiddleeast.com | PRINT | | WEB | | DIGITAL | | FACE TO FACE |

Request the new Media Information! BE POSITIONED VIA > Print Magazine > Inlets & Supplements > Web Portal > HTML mailings > Industrial Events > and much more

EVENTS & MORE We cover some of the most important and interesting events from the supply chain industries around the region and abroad. We grasp the essence and the values and give our brief overview. We cover all that with pictures and we point out the highlights of the events. LOG.CAFE The LOG.CAFE gives Influential and powerful personalities the possibility to contribute their valuable insights to top issues from the supply chain industries. Your Logistics & Supply Chain Experts

CONTACT US TODAY! T: +971 (4) 4334 360 November 2012 I E: info@gutenberg-dubai.com

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ANALYSIS

WAREHOUSE OPTIMISATION: The Little But Important Components in Any Warehouse Over the past 30 years or so, the role and meaning of the warehouse have changed significantly; great emphasis is now being placed on customer satisfaction and retention along with the need to upgrade and modernise the warehousing operation.

Many companies have already started seeing their distribution as well as their warehousing operations not as a direct expense any more, but as a significant profit centre, which with the right management would significantly contribute to the welfare of their total business entity.

By Petros N. Zenieris

These have been started forming part of the new & improved Warehouse Management System applications such as;

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New technologies and methods


ANALYSIS

Rules and Regulations Training and procedures Rules and regulations Tools Housekeeping and safety Identification Paperwork

These are little, but important components in any warehouse; which in most cases tend to be neglected:

Training and Procedures It is relatively inexpensive, but it will likely have a significant impact and a greater return on investment in your warehouse operation. The warehouse manager must insist and aim for the proper and accurate implementation of: a. Creation of Procedure manual (Standard Operating Procedures - SOPs)

Voice Technology, Pick-to-light, Automated Storage & Retrieval Systems, Pick & Go Order Selection, or even more familiar and widely applied ones such as; Radio Frequency Identification (RFID), Automated Material Handling Equipment (MHE), Bar Coding, just to name a few. So, when people consider optimising warehousing operations and creating an effective and efficient warehouse environment, a significant percentage of them will usually tend to consider and make decisions towards the upgrading and updating of existing equipment and applications similar to those mentioned above. Many times however, people tend to overlook a number of simple, basic, yet essential components that will always affect any warehouse’s efficient and effective operation if the right amount of appropriate and frequent attention and consideration would not become accessible.

b. Frequent and appropriate training Warehouse operations that lack adequate & up to date procedures (SOPs) along with frequent employee training plan are most likely to suffer from poor quality, low productivity, potential safety issues and general lack of control. The only way forward is to define as well as document all your warehousing activities into simple, comprehensible, easy to follow step-by-step procedures and implement a compatible employee training programme which will match the department’s operational needs. Remember, frequent training is an important tool to all your employees’ business development and progression. Extra emphasis and additional support has to be given to the newly recruited staff, as they would need more time to familiarise themselves with the new operating environment and comply with the company’s applicable rules and regulations.

Managers and Supervisors should not feel shy and they should spare no effort in communicating to their respective staff of how they should be doing their jobs in a proper way. Being a manager, you must be always ready, prepared and willing to exhibit to your staff the correct way of doing, handling and completing jobs and tasks in your working environment. Never assume they know or they can handle the assigned task; you must check and then re-check with them that they can correctly deliver it.

An easy way to enhance cognizance of rules and regulations is to create posters and place them clearly on visible locations within your operating area(s) as to be observed by all concerned.

Tools Managers must ensure that their employees have got the right tools readily available in order to perform their assigned tasks. Right tools can and will definitely have a significant impact in your business. However, not only the right tools, but “quality” tools. Tools to be considered are mainly categorised into three (3) sectors: • Warehouse Tools (Hand Pallet Trucks, Hand Trucks, Fork Lifts, Pallets, Racks, Dock Levellers, Clip & Black Boards etc) • Cleaning Supplies (Brooms, Dustpans, Dust Bins etc)

• Safety Items (Face masks, Hand gloves, Earplugs, Back support belts, Hard hats etc)

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ANALYSIS

Have specific allocated areas for all Material Handling Equipments (MHE) which will be parked or placed within the warehouse area. Ensure that all staff will return to their respective areas after each use, as it will help to easily identify and pick them up for the next assignment without wasting time searching for them within the warehouse location.

Proper maintenance schedule for all warehouse equipment is a vital parameter for both productivity as well as safety issues.

Housekeeping and Safety Good and applicable housekeeping practices will always result in improvements in safety, productivity and morale within your warehousing environment. Implementing specific and regular cleaning schedule will ensure a cleaned, safe working environment at all times. Floors must be kept clean – should be swept at least once a day. All spills must be cleared right away.

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Debris such as broken pieces of: • Outlets • Plugs • Light bulbs (correct wattage) • Cords & extension cord • Circuit breakers & fuses

charge and be given to the storekeeper for safekeeping.

> Fumigation

> Pallets

Quarterly fumigation must be strictly observed at all times.

All Stock Keeping Units (SKUs) must be placed either on wooden or plastic pallets or on racks. Never store or stack products directly on the warehouse floor, so that any potential spillages or leaks from the roof will not damage the products.

It should only be conducted by trained and registered applicators. The goal of fumigation is to maintain a toxic concentration of gas, long enough to kill the target pest population. At the end of a completed fumigation, a certificate saying all types of chemicals used must be issued by the company in

All certificates must be retained and should be ready for presentation to authorities for inspection upon request.

> Stacking & Storage There are various types of products which can be stacked in a warehouse such as cartons, bags & bales, metal or plastic


ANALYSIS

drums, steel tubes & pipes, flat sheets & coils just to name a few. There are also numerous ways and techniques to stack such products. The size and shape of a stack depends on the storage space availability and on the size, bulk, weight & fragility of the units to be stored. Stacks can be arranged in a column, square, pyramid, lean to stack, or triangular form. The storage of goods must be done in such a manner as to prevent contamination. (i.e. soaps & detergents must be stored away from foodstuff and

confectionaries, electronic appliances must be stored away from cartons of hard

soaps because of moisture problems)

> FIFO The proper application of First In First Out (FIFO) method will ensure optimum movement and accurate handling of all products (incoming & outgoing) in any warehouse, but most importantly it will safeguard you and your business from ending up with expired or close to expiring products in the store.

> Damages All damaged, expired or rejected goods must be isolated in a separate but well designated location within your warehouse area and such location should be clearly identified as such.

> Medical Fitness Test A certificate of medical fitness issued by a recognized hospital or clinic must be

obtained for all warehouse employed staff (labourers, operators, supervisors, managers), which will certify them as being fit and healthy to handle any edible-food or pharmaceutical related products in their respective stores.

> Identification The warehouse manager must always aim for and ensure for a clear and visible identification of all stored products and locations within the warehouse environment. Such aims will tremendously assist the order picking as well as the loading and unloading activities of various goods and ensure a faster and more accurate progression.

“There is an easy way and a hard way to do a job; the easy way sometimes involves nothing more than having the right tools to use” - Hugh Young

• Use clearly readable labels on pallets or bulk stacks of cartons or other materials. • Paint or mark floors to designate floor storage assigned areas. • Use signs to identify aisles. • Use specific and clearly marked storage space for placing all your MaterialHandling Equipment (MHE) when not in use. All depot-inbound Stock Keeping Units (SKUs) on pallets or on bulk stacking must

have ID tags which should include the following data:

Product Description Item Reference Number Manufacturing Date Expiry Date Batch Number Quantity

Paperwork Create easy ways for documentation requirements such as abstracts, customer

invoices, delivery notes, delivery orders, etc; whether on hard form (actual documents) or on soft form (stored files in the computer). Maintain a proper filing system in each store and ensure accuracy & consistency in all your documentation processes. Also, maintain files in good order and ensure continuity at all times. In essence, all above-stated six components represent what we would call the little but important and sometimes, neglected, components in any warehouse. So, go ahead and give them a try. Talk to your people about what is required and make all necessary changes to ensure an efficient and effective warehousing environment. It is easy. It has been done, and you can do it too.

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REPORT

DP WORLD HANDLES 14.2 MILLION TEU IN THIRD QUARTER OF 2012 DP World reports volume growth of 4.5% for the first nine months of 2012. This was 1% lower than the same period last year reflecting the divestment of three joint venture terminals and a decline in volumes in the Europe, Middle East and Africa region. Like-for like gross container volume growth in the third quarter was 0.5%. Gross container volumes have continued to grow 4.5% in the first nine months of the year driven by strong growth across the Americas, Asia Pacific, Middle East and UAE region. The UAE region continued to increase the number of containers handled with 3.4

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million TEU handled in the third quarter. This takes its volumes in the first nine months of the year to 4.6% ahead of the same period last year. The portfolio of consolidated terminals reported a 0.7% decline in volumes in the third quarter as the Asia Pacific and Indian Subcontinent region and the Europe, Middle East and Africa region reported a small decline in volumes. For the nine months to 30 September, container volumes across our consolidated portfolio would have increased 3.4% ahead of the same period last year

had our terminals in Australia not been deconsolidated from 12 March 2011. Chairman Sultan Ahmed Bin Sulayem said: “During the third quarter of the year we have taken advantage of opportunities to reposition our portfolio towards higher return businesses where we have management involvement. These recent divestments allow us to recycle cash into projects already within our Jebel Ali (UAE) and London Gateway (UK) and, over time, to invest in new opportunities in line with our strategy, while maintaining balance sheet strength and flexibility.�


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Improvements & Innovations

Research & Development ROAD +hoses & fittings +gear boxes & axels +pneumatic systems +doors & hinges +cnc parts +nuts & bolts +special parts +etc.

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Wind & Wind FZ LLC Dubai Media City, Al Thuraya Tower II, Office 1402 Dubai, United Arab Emirates35 (represented by Gutenberg Publishing FZ-LLC)


FEATURE

Simplifying the business of trade payment Dubai Trade, the premier trade facilitation entity that offers integrated electronic services from various trade and logistics service providers in Dubai under a single window has introduced the Rosoom Wallet.

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FEATURE

The Rosoom Wallet, a prepaid virtual wallet created by Dubai Trade, that allows companies an easy, secure and convenient payment option on the Dubai Trade portal. Rosoom Wallet acts as a safe payment instrument sitting between the company’s main bank account and their operations staff who typically need tpomake many small online payments to move cargo. It underlines Dubai’s position as the ideal base for trading across borders with its unique geographical location, excellent infrastructure and seamless processes across the private sector and government agencies. Dubai Trade’s Mahmood Al Bastaki said, “We launched the pilot phase in June 2012 and we have 5 key customers who have been using Rosoom Wallet to pay nearly 6 million transactions over the past 5 months, across 17,000 payment transactions to DP World.

Challenges in Implementing Rosoom Wallet itself was conceptualised due to the challenges faced by our customers in using the Direct Debit payment mechanisms.

Companies in this region have not embraced online internet banking in a big way. Due to this inherent fear and mistrust of online channels, we have had poor adoption of the Direct Debit payment method. Plus, it was a bigger challenge to integrate directly with the banks as their focus has been on cost-cutting over the past few years due to the recessionary climate. November 2012 I

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FEATURE

So, Dubai Trade decided to innovate with the available technology and came up with the concept of a virtual wallet that requires only one person in the company (typically the finance department or CEO) to top-up their Rosoom Wallet account on a periodic basis depending on the volume of business that they do on Dubai Trade. The Rosoom Wallet then enables the finance department to create multiple users who are authorised to use the available

“Our main solution challenge was the integration of top-up confirmations from the various banks to the customer’s Rosoom Wallet account, as there were subtle changes in the message formats from each bank.”

funds on Rosoom Wallet to make secure payments to DP World.

to service providers, but also allows the companies to:

Additionally, we had come up with a reliable mechanism to ensure that such information is not tampered with.

• Make secure online payments without having to expose their main bank details to their staff • Maintain limits and controls for each user for enhanced security • For a robust security mechanism that protects their funds with Dubai Trade and also, • The convenience of maintaining once prepaid account for usage with multiple service providers (DP World in the pilot phase, but will be rolled out to all service providers linked to Rosoom ePayment gateway).

We are proud to associate ourselves with HSBC Bank in this regard who provides this key integration component.

Benefits to Users Rosoom Wallet not only allows easy and comprehensive reporting about payments

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What comes next with Dubai Trade as an innovation leader? We are constantly striving to make online payments more secure and convenient for our customers. This is a key step in maintaining a healthy e-adoption for all our online services. We understand the “today’s innovation is tomorrow’s legacy” and so I constantly challenge our team to come up with new solutions that benefit all stakeholders. In this regard, We are already working with the UAE Central Bank to design a nation-wide direct debit switch mechanism that will cover every bank operating in the country.


FEATURE

We are evaluating the new trend in mobile payments to see if it is relevant for our customers and if the technology is mature, then we will surely add this to our Rosoom product offerings.

“Beyond ePayments, Dubai Trade is looking both upstream and downstream of our current service offerings to see areas of opportunities to implement eServices that will add value to the trading community.�

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TECHNOLOGY

One-Stop Warehouse Solution Productivity and Ergonomics are two major keywords in logistics where maintaining high throughput is the main concern. Linde Reach Trucks “Active” series has them both covered. Linde Ergo Concept incorporated as standard makes work easier and appreciably more efficient at the same time. Backed by technology that smoothly raises productivity of your warehouse operations to a level you never thought possible. Linde Digital Control (LDC) controls all truck’s parameters individually to suite specific task with smooth operation and minimal power requirement. Normally it takes hard work to gain a head start but, with Linde Active reach trucks you have an advantage. Linde is working on big projects as of the moment, to name a few; they are working with Oman Aluminum Rolling Co.

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(OARC) and supplying Linde IC Trucks with foundry protection; with ILS Logistics, supplying VNA, reach trucks, forklifts and power pallets and with Lulu Hypermarket, providing them with a complete range of trucks, pickers, forklifts and power pallets.

FAMCO also provided operator training, meeting the airline’s extremely high safety standards.

Not only in Oman, they have also managed to tie-up with huge companies in Qatar, for New Doha Airport Duty Free and Qatar Petroleum.

With reputed UAE-based companies participating in the tender, it became clear to Etihad that FAMCO is a committed solution provider, able to provide a 24hour maintenance service, critical for an operator with over 1,300 flights per week to various destinations around the world.

Prescribing perfect fit-solutions with Dexion racking and Linde forklift trucks, FAMCO’s Storage & Handling Solutions division was chosen as a one-stop solution provider by Etihad Airways, the award-winning national carrier of the UAE. Completing the project as per schedule,

Recent expansion has seen an increase in the airline’s in-flight requirement which, in turn, demanded greater warehousing space. FAMCO stepped in confidently with concept, design, installation, maintenance and the training of personnel, much to the delight of Etihad management.


Welcome to Salalah Hub Ready to serve local, regional and global business Connect your business to Europe and Asia with the fastest transit times from the region. Utilize Oman’s free trade agreements and tax-free export benefits with the USA and Singapore. Salalah Free Zone offers 100% foreign ownership with competitive rates in a stable and business-friendly environment.

3000+ vessel calls a year Partner with the largest port in Oman. Infrastructure to handle the world's largest container vessels, bulk cargo, bunkering and warehousing. Ranked among the world’s top 30 container ports and an investor in green shipping and social responsibility.

PO Box 369, PC 211, Salalah, Sultanate of Oman Tel: +968 23220000 Fax: +968 23219236 Email: info@salalahport.com

www.portofsalalah.com

DIRECT CONNECTIVITY TO 54 PORTS WORLDWIDE Karachi in 3 days Jeddah in 4 days Singapore in 6 days Mombasa in 7 days Shanghai in 14 days New York in 14 days Los Angeles in 21 days and much more...


TECHNOLOGY

SMARTON® – The Intelligent Crane from Konecranes basis of the crane system. This approach makes SMARTON customisable and expandable at any time. It provides actual usage data that enables you to optimise maintenance activities and gives visibility to maintenance and application compliance. Remote Services also enables the 24/7 support functions in case of an equipment breakdown. SMARTON is a top-performance crane system, which combines the best crane characteristics and components, supports production sequences intelligently and efficiently, and will stand by the customer’s side in the future as well, providing individual care and flexibility.

Intelligent, modular and versatile – SMARTON sets new standards in technology, flexibility, efficiency, and safety. SMARTON is the result of Konecranes’ 50+ years of experience with heavy-duty lifting applications in process industries. Since its launch, SMARTON has been adopted by many of the world’s leading industrial companies because it offers the right mix of mechanical excellence, lifting intelligence, and service support. SMARTON works intelligently for industries including general manufacturing, steel, automotive, pulp and paper, mining and power, among others. Modular and expandable The SMARTON philosophy: Tried and tested components and features are the

SMARTON and all its features are designed and manufactured in order to increase safety and improve productivity and efficiency.

Gulf Air launches mobile check-in Customers on-the-go can now check-in for their flights from anywhere. In its continuous efforts towards making customers’ travel experience faster and easier, Gulf Air, the national carrier of the Kingdom of Bahrain, has introduced mobile check-in. In a few simple clicks customers can check in using their internet-enabled mobiles from 24 hours in advance to until 90 minutes to their flight departure; no more queues to check-in. All that customers need to do is to log into www.gulfair.com from their internetenabled mobile phones, enter booking details, choose their seats and confirm. A barcode will appear on the mobile screen, which the customers can show at the boarding gate after completing the immigration checks.

trends and technologies so that we can provide passengers with the most innovative self-service facilities. The mobile check-in facility is linked to the latest airport check-in systems, which Gulf Air has deployed at select airports that are being expanded.

Currently the mobile check in facility is available in Bahrain, Copenhagen, Doha, Dubai, Frankfurt, London, Larnaca and Paris CDG airports only. More stations will be added as soon as permissions are received from respective airport authorities.

Gulf Air Director Information Technology Dr. Jassim Haji said “Launching mobile check-in comes as a part of Gulf Air’s business strategy to be on top of the latest

As people are becoming more reliant on mobile devices in their day-to-day life, the mobile check-in facility, I am sure, will be well received.”

The mobile check-in boarding pass is valid only after the travel documents are checked, verified and stamped at designated immigration counters.

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Fast beats slow Effective warehouse design means short routes for goods and staff. Using containers in conjunction with intelligent conveyor systems speed up and optimise logistics operations. We show you how to become fast, flexible and efficient. Contact us, we will gladly advise you.

P: +971 4804 8100 路 E: info@ssi-schaefer.ae 路 www.ssi-schaefer.ae November 2012 I

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EVENTS

december

UPCOMING

2nd Saudi Securities Forum The Four Seasons Hotel; Riyadh; 3 - 5 december

Supply Chain and Logistics Summit Asia

2012

Singapore; 8 - 9 January 2013

The LOG. Middle East Magazine is a publication of Gutenberg Publishing FZ-LLC. Licensed by TECOM, Dubai, UAE. Trade Licence No: 20704

www.logmiddleeast.com www.gutenberg-dubai.com

www.sclasiasummit.com

Procurement And Supply Chain ME

Oman Construction Summit Grand

Movenpick Hotel JBR; Dubai; 4 - 6 december 2012

Hyatt Muscat; Oman; 27 - 30 January 2013

MENA Gas Processing Summit Oryx Rotana Hotel Doha; Qatar; 9 - 12 December

3rd Annual Road Planning, Design and Construction, Middle East

2012

Doha; Qatar; 25 - 28 february 2013

Gutenberg Publishing FZ-LLC Al Thuraya Tower II, Office 1402 Dubai Media City P.O.Box 502547, Dubai, UAE Tel: +971 (4) 43 34 360 Fax: +971 (4) 451 7945

ROTATE 2012

IATA WORLD CARGO SUMMIT 2013

Movenpick JBR; Dubai; 9 - 12 december 2012

doha; qatar; 12 - 14 march 2013 www.iata.org

Managing Director: Reinhard Wind reinhard@gutenberg-dubai.com

Airport Airfield Engineering And Maintenance 2012

LogiCon

Dusit Thani Hotel; Dubai; 9 - 12 december 2012

Amsterdam; Netherlands; 5 - 6 FEBRUARy 2013

EDITORIAL

www.logiconeurope.com

Editorial Director: Silke Wind

TOC Container Supply Chain Middle East 2013

Critical Equipment Maintenance

DWTC; Dubai; 9 - 11 december 2012

Kuwait City; Kuwait; 17 -20 February 2013

www.tocevents-me.com

LogiTurkey

silke@gutenberg-dubai.com SALES & MARKETING Sales Manager: Andy MacGregor andy@gutenberg-dubai.com

MEBA

ISTANBUL; TURKEY; 13 -14 MARCH 2013

LAYOUT & DESIGN

dubai international convention and exhibition

www.logiturkey.com

Phitofex Grafik Design

www.meba.aero

SUPPLY CHAIN & LOGISTICS SHOWCASE

ADMINISTRATION

Kuwait Transport

SHANGHAI; CHINA; 13 - 14 MARCH 2013

Infrastructure Summit 2012

www.supplychainchina.net

centre; 11 DECEMBER 2012

Hotel Missoni; Kuwait City; 11 December 2012

Office Administrator: Cynthia Borce info@gutenberg-dubai.com PRODUCTION Production Assistent: Philipp Takler

ProcureCon Indirect Middle East Logistics Oil & Gas

London; UK; 16 - 18 april 2013

ATLANTIS; PALM JUMEIRAH; 11 - 12 december 2012

www.procurecon-indirect.com

www.logistics-me.com

philipp@gutenberg-dubai.com Sub Editor: Scott Birch editor@gutenberg-dubai.com

TRANSPORT LOGISTIC Saudi Infrastructure

MUNICH; 7 - 9 JUNE 2013

Jeddah, Saudi Arabia; 15-17 December 2012

www.transportlogistic.de

www.saudi-infrastructure.com

TOC CONTAINER SUPPLY CHAIN MIDDLE EAST DWTC; DUBAI; 9 - 11 DECEMBER 2013 www.tocevents-me.com

Disclaimer: The details provided in the calendar may be subject to change. Please contact the organisers directly before making any arrangements.

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Contributors’ 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 journal is accurate and timely, no liability is accepted by them for any errors or omissions, however caused. Articles and information contained in this publication are the copyright of Gutenberg Publishing FZLLC (unless otherwise stated) and cannot be reproduced in any form without the written permission of the publisher.


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Under the Patronage of

HH Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum

10-12 December 2012 I Atlantis The Palm I Dubai I UAE MELOG will draw together key government and oil and gas industry figures from across the GCC and the Middle East. It will provide a platform to understand the key industry drivers, reveal essential cost-efficiency strategies and formulate best practice to guarantee a successful future for your oil and gas upstream logistics.

Logistics Professionals

Freezones

Logistics Suppliers

Governments

Distinguished Speakers Include

Mr Mohammed Al Muallem Senior Vice President & Managing Director DP World UAE Region

Barry Vitou Partner Pinsent Masons

Riyan Qirbi Supply Chain and Logistics ManagerMiddle East BP

Bob Wrigglesworth Logistics Consultant, Majnoon Field Development Shell

Vladimir Kostenko Logistics Manager LUKOIL

Rakesh N Edavalath Supply Chain & Contracts Manager Crescent Petroleum UAE

Warith Kharusi Chairman The Oman Logistics & Supply Chain Association

Larry Parkos Supply Chain Manager Occidental Petroleum Corporation

For Sponsorship Opportunities please contact Elliott McGinn on +44 20 7978 0029 or emcginn@thecwcgroup.com Official Partner

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I November 2012

Sponsored by

Supported by

www.cwc-logistics.com/ME


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LOG.Middle East Nov.2012