DHL Supply Chain - Brochure 2017

Leaders of transformation

in times of change

Leaders of transformation

in times of change

Written by Tom Wadlow Produced by Heykel Ouni 3

DHL Supply Chain is looking to build on a proven track record in the Middle East by introducing transformational services it has long provided for clients around the world. With economic conditions in the region changing, now is the right time for businesses to evaluate their supply chains

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ith change and challenge comes opportunity. It is no secret that the economic realities in the Middle East have transformed markedly over the past year thanks to sharp falls in the price of oil, the longstanding bedrock of the region.

But, with businesses seeking to make adjustments to their supply chains or expand further down the value chain to open up different revenue streams, opportunities for the economies of the GCC to diversify are opening up.

Enter DHL Supply Chain. As the contract logistics division of DHL,

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which has more than 40 years’ experience in the Middle East with DHL Express, the supply chain unit is looking to build on the bridgehead it has formed in Saudi Arabia since 2003. Proven provider of key supply chain services in the energy and health sectors, the company is in a position to help navigate clients from all industries through new challenges that lie ahead.

Nick Murray has been DHL Supply Chain’s General Manager in Saudi Arabia for three years.

Having worked for the company in emerging markets across Europe and Asia for the past 16 years, he

Nick Murray General Manager Saudi Arabia

Murray joined DHL in 2003 and has spent most of his career developing emerging markets such as Central Europe, Asia and now the Middle East. He is responsible for the Saudi Arabian business unit; encompassing service provision for numerous blue chip customers in the Energy, Engineering, Healthcare and Consumer Goods sectors. DHL Supply Chain’s services in the country range from the Distribution of Oil Field Supply Materials across Saudi Arabia; global collection and importation into the Kingdom of engineering parts for major industrial plants and also medical supplies and foodstuffs supply chain services. Before taking up his present role, Murray was the Vice President of Sales for North Asia based in Shanghai and prior to that, the Managing Director for DHL Supply Chain in Hungary and Romania, all roles with a focus on expanding DHL’s business presence in markets undertaking considerable change. Before joining DHL Murray started his career in international companies, listing only a few for Mayne Nickless Logistics in Australia and SE Asia, P&O in Eastern Europe and Nestlé in the UK. In these roles Murray developed a passion for operations management and for engaging with diverse teams from many cultural backgrounds, all working together to serve a variety of customer demands and challenges and meet their changing strategic requirements for the supply chain. Nick holds a Master’s Degree and a Bachelor of Science Degree from the University of Huddersfield in the UK. In his spare time he enjoys walking mountains, cycling and scuba diving. Murray is a keen traveller with his wife and family enjoying the vast variety of local culture in the region.

“Companies in the Middle East have been forced into re-evaluating the ways they do business, and this is where we can step in and help” is now charged with implementing the sorts of transformative services provided by DHL Supply Chain in other parts of the world. And there is no better time to do so.

“Companies in the Middle East have been forced into re-evaluating the ways they do business, and this is where we can step in and help,” he says. “There is also a firm belief that the Gulf should play more of a leading role as a logistics hub for the Middle East and Africa region, even the world.”

New times, new services The scope for businesses to transform their supply chain processes excites Murray, who describes some of the new services that can be offered to companies all over the Middle East.

“Examples of these include taking on inventory ownership for clients to

release inventory off of their balance sheets,” he explains. “We will then provide the physical logistics services on top of the inventory ownership service. We have also taken over assets in companies’ supply chains, for example warehouse networks that may have been acquired off the back of a long term logistics deal. These are the types of big structural transformations that we see as being hugely relevant for businesses in the Middle East today.”

Leveraging the power of DHL’s global operations is another huge advantage that can be rolled out to clients in the region. Through divisions such as Express and Global Forwarding, DHL Supply Chain is able to collect products from vendors all over the world, transport into Saudi Arabia, clear customs and deliver to customers’ doorsteps. “This allows them to

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access a global network of potential suppliers and maintain control of their supply chains,” Murray adds. “We effectively cut the middle man out.”

The Middle East public sector is another area which DHL Supply Chain is likely to approach, drawing on successful examples from the UK. The company recently won a bid to procure, supply and distribute uniforms for London’s Metropolitan Police force. DHL Supply Chain also has a long-standing partnership with the country’s National Health Service, which involves the procurement of consumables and nonpharmaceutical products.

In the aviation arena, a partnership with a food production company has enabled British Airways to reduce flight turnaround times and cut down on waste in its supply chain. Murray explains: “We’ve designed specific vehicles with two decks to optimise the loading and unloading process, meaning we can get the catering and cleaning crews on at the same time, cutting down time spent preparing aircraft between flights. The waste food is recycled into dried pellets which heat up water to clean trays, which can then be reused.”

It is these sorts of innovations to the supply chain which Murray believes can greatly benefit transforming businesses in the Middle East during times where change is needed to tackle fluctuating economic circumstances.

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D H L S U P P LY C H A I N

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or materials for oil companies. This DHL Supply Chain’s track record is certainly an area we are looking for operational excellence in to expand our involvement in.”

Saudi Arabia and the region Health and safety guardian makes it well-placed to expand Beyond operational excellence, and innovate its offerings. an uncompromising and Indeed, for a major energy client, determined stance towards health DHL Supply Chain processes over and safety has also helped to 700,000 orders a year, collecting establish DHL Supply Chain as from a pool of 3,500 suppliers a trusted partner in the region. and delivering to Unbeknown to 4,000 drop points. many is the fact that Alongside providing Saudi Arabia’s roads such enormous are something of a scale, the company death trap. In 2013, is also delivering 99 7,800 people died on percent of orders on the country’s roads, The year DHL Supply time, a remarkable around three times Chain SA was founded feat given the large the rate seen in the and challenging likes of Australia, the geography of Saudi Arabia.

United States and much of Europe.

Healthcare is another firmly “One third of the hospital beds established market for DHL Supply in the country are taken up by road Chain in the country. Murray traffic accident victims, meaning expands: “We already distribute there is a massive drain on the healthcare products within Saudi economy and society because Arabia, anything from heart valves people are simply driving too to dialysis equipment, which cannot dangerously,” Murray says. “As a go through the same network as result of this we have a leadership spare parts for the automotive sector role to play in our industry and

2003

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“We are winning over hearts and minds in regards to health and safety, and as an employer we have a major duty to deliver on this” with our employees – it is all about how we change attitudes towards road safety, it is about engaging with employees every day.”

At the company’s main facility, a huge banner reminds departing employees about the importance of driving safely, with icons illustrating messages about mobile phones, seatbelts and controlling speed and stopping distances.

All DHL Supply Chain drivers undergo thorough defensive driving courses, while telematics devices are fitted in every vehicle, with new forward facing in-cab cameras also being tested. These will provide real time data on driver behaviour, alerting the company on metrics including speed and breaking harshness.

This all helps generate league table reports on drivers which are then used in feedback sessions to help

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boost employee engagement.

“We are winning over hearts and minds in regards to health and safety, and as an employer we have a major duty to deliver on this,” Murray says. “A lot of progress has also been made with our major energy client. For instance, we have a world safety day initiative and competitions for staff and families to design posters, which all feeds into a culture we are trying to create.”

People power A key part of this company culture stems from the fact that 70 percent of DHL Supply Chain employees in Saudi Arabia are natives. Typical levels of Saudisation for international companies stand at anywhere between 15 and 30 percent.

“It is very unique for a foreign company to adopt anything like

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the level of Saudisation that we have, and this is not anything new either,” Murray says. “We have had this track record for years and have gone beyond simply hitting government quotas – we’re doing it because it benefits our business and customers.”

Around 850 of the company’s 1,000-strong workforce are blue collar workers such as drivers and warehouse operators. “We were told it would be difficult to find and retain many Saudis in these roles,” Murray says. “The opposite has been the case.

“Through our engagement processes we have ensured that people remain with us, for example our rounds of internal training feed into certifications on a DHL passport which they carry round with them.

This is all part of building a global corporate culture where employees

feel a true part of DHL Supply Chain.”

Staff awards have been another important component of employee engagement since 2011, while global annual surveys provide extensive feedback and requests on all manner of issues, from improved toilet facilities to explanations of wider DHL strategy to provide a more meaningful context to everyday work.

Thanks to a firm footing in countries like Saudi Arabia and a reputation for operational excellence, the company’s highly-skilled and motivated workforce is well-placed to help businesses in the Middle East negotiate times of change.

And through replicating the sorts of transformative supply chain services already provided around the world, DHL Supply Chain is ready to assume the position as regional transformation leader.

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