Supply Chain Digital - October 2014

w w w. s u p p l yc h ai n d ig i t al . c o m

O c t o b e r 2014

DHL Supply Chain

Sharing its Vision for the Future

Procurement

Negotiating Successful Fixed Price Packages Cloud Computing

Reshape Your Business Top 10 Trucking Companies

Logistics Get Ready for Canadian Crude

THE BIGGEST THING WE MOVE IS TIME

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tailor-made solutions for engineered heavy logistics. If you are

sioning large structures, we believe your biggest challenges

facing challenges in decommissioning, give us a call. Time may

aren’t about size. They’re about time. Uptime, turnaround time

not be set in concrete or forged in steel. It isn’t even all that

and time to market. In case of decommissioning, where no two

heavy. And yet, it’s the biggest thing we can move for you.

structures are the same, time spent on careful planning and creative engineering results in a solution with an optimal balance

For more information, please call Jelle Lanting, general manager

between time, cost and capacity for each operation.

Decommissioning: +31 6 46 60 25 55. Or send him an email:

With offices on every other continent and a fleet of equipment

jelle.lanting@mammoet.com

that is unparalleled in size and capacity, Mammoet provides

Discover more on mammoet.com

EDITOR’S COMMENT

Looking to the future are taking a look at the new technologies and innovations that will propel the sector forward into a fresh era of increased efficiency and productivity.

IN THIS EDITION WE

Our front cover story is from DHL Supply Chain, where Damian Pike, Vice President of Innovation & Transformation take us through what the supply chain might look like in the coming years. Alaina Fraser, Senior Energy Consultant Americas for Allegro Development Corporation writes about the energy supply chain and specifically the demand for Canadian crude oil after recent events.

For the procurement section the subject of negotiating fixed price packages is tackled by Kevin Knowles, Managing Partner at Cavendish Wood. We also cover all things cloud computing, and the old favourite top ten is back; this time we look at the biggest trucking companies around, including the likes of JB Hunt Transport and CH Robinson Worldwide.

Sam Jermy sam.jermy@wdmgroup.com 3

CONTENTS

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Logistics Rail, Road or Pipe; Get Ready for Canadian Crude

Features 14

DHL Supply Chain shares its vision for the future

TOP 10 Trucking Companies

22 Supply Chain Management

34

Procurement Negotiating successful fixed price packages

28 Technology How Cloud Computing can reshape your business 5

W E

S U P P O R T T H E

L E A D E R S

s u b s e a | a c c o m m o d a t i o n | c a b l e | o ff s h o r e s e r v i c e v e s s e l s

Chartering Newbuilding Sale & Purchase Market Intelligence Consultancy / Advisory

Yo u r p a r t n e r i n o ff s h o r e s h i p b r o k i n g s e r v i c e s w w w. f e a r n l e y o ff s h o r e s u p p l y. c o m

CONTENTS

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IBM Supply Chain

56

Knapp AB

66

Hala Supply Chain Services

COMPANY PROFILES EUROPE 44 IBM Supply Chain 56 Knapp AB

MIDDLE EAST 66 Hala Supply Chain Services 76 SKA International Group

LATIN AMERICA 90 TRUCKA

100 Corporativo UNNE

CANADA 110 Transport Matte

90

TRUCKA

USA 120 Bay Ship & Yacht 128 Comprehensive Logistics

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Comprehensive Logistics 7

LOGISTICS

Rail, Road or Pipe; Get Ready for Canadian Crude

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October 2014

With Keystone XL in limbo, the rapidly changing energy supply chain needs a new risk management strategy W R I T T E N B Y: A L A I N A F R A S E R , S E N I O R E N E R G Y C O N S U LT A N T A M E R I C A S F O R A L L E G R O D E V E LO P M E N T C O R P O R A T I O N

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LOGISTICS WITH CONGRESS CONTINUING to wrangle over any decision regarding the Keystone XL pipeline, the US energy industry is taking matters into its own hands.

Oil-starved markets are primed for an influx of Canadian crude oil, but with pipeline transport off the table for the foreseeable future, producers are starting to develop an alternative supply chain infrastructure to meet the demand.

The problem is, recent disasters have soured legislators and environmentalists on road and rail for moving oil, drawing intense scrutiny and calls for increased regulation.

Alongside political uncertainties are other wildcards like extreme weather and an emerging logistical infrastructure, which can all impact the flow of goods. That makes the proposition of a non-pipeline solution particularly thorny.

How should supply chain decision makers position to connect with premium energy markets, manage the attendant risks, while also addressing the strong likelihood of an increased regulatory burden?

From the source of the commodity to the end consumer, the ability to 10

October 2014

“Oil-starved markets are primed for an influx of Canadian crude oil, but with pipeline transport off the table for the foreseeable future, producers are starting to develop an alternative supply chain infrastructure to meet the demand” track energy assets in real-time is set to become more important than ever.

Boom Times for North American Energy Producers Production from Canada’s oil sands is on the rise, with output expected to nearly double by 2030 to 6.7 million barrels per day. That accounts for about 98% of the country’s oil reserves.

Primary market opportunities exist in both Canada and the US, where replacements for offshore imports are desired. Getting the oil to premium and secondary markets however is

F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E

Rail makes sense as the main pipeline alternative

another matter.

Considering the gooey consistency of Canada’s pure bitumen, rail makes sense as the main pipeline alternative.

Rail transport doesn’t require dilution prior to shipping, as it does in pipeline transport; so shipping bitumen in its pure form would require fewer barrels.

That creates an incremental netback on rail transport of about $6 per barrel, compared to pipeline processing.

Recent disasters such as the derailment in Lac-Megantic, Quebec, however, have attracted public outcry in both countries for tighter controls.

This means more regulation is likely,

with stiffer compliance for all parties participating in the energy commodity supply chain.

Despite those concerns, the Keystone delay has spurred producers to start shipping Canadian crude by truck, rail or barge. TransCanada, a major energy company based in Calgary, Alberta, has plans to build rail terminals in Alberta and Oklahoma.

Exxon Mobil is also planning a new Canadian rail terminal, set for operation in 2015 at a cost of about $250 million. Its completion would accommodate shipments of nearly 100,000 barrels per day.

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LOGISTICS

Crude storage Supply Chain Response With Canadian crude assets traversing a complex, closely regulated and shifting supply chain, what can the industry do to effectively manage the risks? Any process based on spreadsheets won’t be up to the task.

Even integrated with a data management system, spreadsheets cannot keep up with the momentto-moment churn of data required to adequately manage activity and make good decisions.

How much inventory is at risk, where energy assets stand at any given time and the associated capital commitments, all need to traceable down to the carload -- this is literally where the rubber meets the road.

Unless your systems and business processes embrace the real-time, buy-sell-trade environment in energy, you will be hard pressed to react quickly enough when the real risks of 12

October 2014

Canadian crude positions raise their head.

Supply chain executives need to build a robust capability that can handle risk data efficiently. That should entail display in a dashboard format for quick evaluation, and integration of all the necessary partner and reporting data points.

Maps, schematics, and trending data need to be presented graphically, with quick summaries of all active positions, assets and related histories. Given the shift to mobile working and bring your own device (BYOD), all the better if information can be accessed across the full range of devices and operating systems today’s supply chain managers use to conduct business.

Here are a few key questions to help evaluate whether your current risk management systems and processes are ready for the impact of Canadian crude: • How long does it take to pinpoint your energy positions?

• Do you have reliable inventory numbers at the end of each day?

• Are your invoices often delayed?

• Do you have difficulty determining

GET READY FOR CANADIAN CRUDE

the market value of your energy portfolio at the close of business?

If the answer to most of these is ‘yes’, it may be time to revisit your IT investments. There are solid energy trading and risk management options to choose from, solutions designed specifically for risk managing the physical and financial aspects of the energy supply chain; from contracts, physical logistics, and transactions; to accounting and reporting.

America’s appetite for energy

is not diminishing. As supply lines for Canadian crude stretch across modalities, borders, time zones, weather patterns, regulatory regimes and market conditions, the ability to monitor assets from the wellhead to the marketplace is critical.

Successful energy supply chain risk management will help managers capture the details of every Canadian crude purchase down to the penny, from the front office to the back.

Supply chain executives need to build a robust capability that can handle risk data efficiently

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S U P P LY C H A I N M A N A G E M E N T

DHL Supply Chain shares its vision for the future As new technology emerges faster than ever, the supply chain needs to evolve and change its priorities.

Damian Pike, VP for Innovation & Transformation at DHL Supply Chain, explains some of the trends we are likely to see in the near future Written by: Damian Pike, VP for Innovation & Transformation at DHL Supply Chain

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October 2014

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SUPPLY CHAIN MANAGEMENT

DHL Supply Chain continues to be at the forefront of the logistics industry FOR THE past five years, we have witnessed social media-led changes in what customers want, and what businesses have developed. The next few years will only see accelerated changes in the way products are delivered; instead of businesses dictating the range, volume, channel and services that are provided, they will be led by their customers who will determine how, when and what is 16

October 2014

provided; pull rather than push.

Upgrading your phone is one example. As a customer is walking past a mobile phone store, their watch will alert them that their phone is due for renewal. The customer will do some initial research on the commute home on their mobile, then later design their own phone cover, specification and set up.

However, should they change their

D H L S U P P LY C H A I N S H A R E S I T S V I S I O N

‘ The next few years will only see accelerated changes in the way products are delivered….they will be led by their customers who will determine how, when and what is provided; pull rather than push’

mind the next day, they visit the retail store to make some adjustments.

Happy with their choice, they submit an order and their device is then configured and sent from the factory to their home.

Addressing these challenges is paramount and is increasingly leading to a shift in focus, from ‘what the product is’ to ‘why the purchase is being made.’ There are often only a

few stages of a product’s life cycle where personalisation can be added and the supply chain has an important role in helping retailers; phone shops for example meet these changes in demand.

Flexibility in the supply chain operation is required to adapt to this and allow products to be stored in a ‘vanilla’ state before they are customised. Building on this, personalisation can be extended to the packaging of a product and supply chains will again need to adapt their operations to take this into account.

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SUPPLY CHAIN MANAGEMENT Omni-channel goes global We will move beyond current IT constraints, and distinctions between how a product is bought whether in store, online or via an app will disappear. Crossover will be more apparent, so if a customer buys online and needs support for example, they can receive it in-store.

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October 2014

However, in the next three years the information that is collected about customers and products across different channels will be shared and aggregated across regions. This insight will lead to better product development processes, lower cost supply chains, aggregated procurement and standardised

D H L S U P P LY C H A I N S H A R E S I T S V I S I O N

‘The information that is collected about customers and products across different channels will be shared and aggregated across regions. This insight will lead to better product development processes, lower cost supply chains, aggregated procurement and standardised experiences’ Omni-channel technology will lead to better product development processes and lower cost supply chains

experiences, tailored locally.

The key enabler to make this happen will be the move to European structures for demand management, procurement and the supply chain, which will mean having a top-level overseeing team rather than one at grass level so a European team rather than country level.

We are already seeing this trend in consumer electronics and mobile network operators, and it is likely to be a standard structure in the next three years.

Collaboration comes of age To stay ahead of the game, businesses will use their customer, product and operational insight to drive collaboration with manufacturers, distributors, enablers and across industries, creating new opportunities 19

SUPPLY CHAIN MANAGEMENT

‘To stay ahead of the game, businesses will use their customer, product and operational insight to drive collaboration with manufacturers, distributors, enablers and across industries’ and new accountability.

All this will require changes in demand planning and inventory management, with supply chain opening the door to a vendormanaged inventory process (VMI) where the product is only ‘owned’ the instant before sales.

With customers having more access to information and greater transparency with tracking technology and stock checking functionality, there

is a growing expectation that products will be delivered when they want and to where they are, even if they are on the move.

We’re seeing delivery options being expanded to suit the customer’s requirements; for example, jog-post and drop-boxes and the customer’s ability to bundle all their purchases into one delivery slot will become standard.

The dominance of e-commerce has

Long-distance logistics has never been more accessible

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October 2014

D H L S U P P LY C H A I N S H A R E S I T S V I S I O N

DHL warehouse meant that the delivery process is now a key part of the customer’s overall experience. Advancements in delivery have seen click and collect sites become more popular and delivery windows becoming more precise.

It is likely that further personalisation of the delivery process will be introduced to make it even more convenient for customers.

The high street will see increasing consolidation and the supply chain will need to manage increased product portfolios. With the increasing development in machine-to-machine technology (M2M), so new challenges

will arise to configure and support enabled devices.

After-sales support and training will become ‘over the shoulder’, available any time, anyhow and anywhere and will be paramount to drive down returns.

The changes we will see in the next few years will be led by increased expectations of the customer. This opens the door for supply chains to work even closer with marketing and other functions, breaking down traditional barriers and opening the door to a brave new world.

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PROCUREMENT

Negotiating successful fixed price packages There are four important steps for procurement professionals to go through when arranging a fixed price contract.

Here, Kevin Knowles details them and gives us an overview of strategic sourcing W R I T T E N B Y: K E V I N K N O W L E S , M A N A G I N G PA RTN E R AT C AV E N D I S H W O O D 22

August 2014

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PROCUREMENT PROCUREMENT PLAYS AN important role in casting a critical eye over large contracts and purchasing decisions before they are made, ensuring the business gets a good deal. However, there is an opportunity for procurement to become more of a strategic partner to the business, which can help it deliver increased value for money spent.

The procurement process often focuses on reducing cost, rather than increasing value, which is significantly different. As a result, many procurement teams are doing themselves and the business a disservice.

Research by the MCA found that senior procurement professionals said they could increase the value of their management consultancy spend by 36 percent if they had a clearer definition of business needs and project scope.

Getting closer to the business objectives could really be a win-win situation for both the procurement department and the business and allow procurement teams to achieve the best value goods and services for the business.

One facet of securing services 24

October 2014

on a project is how the company is actually billed for it. Time and material contracts, where an organisation pays for the hours a consultant works on a project, dominate how services are procured. But they are not the only way to hire consultants; there is also the option of fixed price contracts.

These can bring confidence and certainty to procurement as it’s established up front how much a project will cost and what the business will be getting for this price. But they must be handled in a different way to time and material contracts.

Ask the right questions Procurement needs to work closely with the business to understand the scope of the project and what the business is trying to achieve.

By putting together a clear brief with the business, they will be able to communicate more effectively with the supplier and ensure that the supplier is well placed to achieve what the business is looking for.

It’s also important to find a supplier who has experience in the

N E G O T I AT I N G S U C C E S S F U L F I X E D P R I C E PA C K A G E S

sector and type of project being tendered. This way they will know the pitfalls and issues that might come up during the project and be able to advise and price accurately. So establish what relevant previous experience they have and what they can bring to the table.

“There is an opportunity for procurement to become more of a strategic partner to the business, which can help it deliver increased value for money spent�

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PROCUREMENT Set up for success To get the most from a supplier on a fixed price contract the relationship must be a two way street of cooperation. All contractors and consultants are to some degree dependent on the client resource to be able to do a good job.

There must be regular meetings scheduled between each side where they can get together and address any issues before they become big problems. Things don’t always go to plan and having regular contact and building the relationship means that it is easier for each side to work together to make the project a success.

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October 2014

Break a project down Fixed price projects are generally only feasible up to a value of around ÂŁ100,000, above this price and the size of the project means that there are too many unknowns to be able to price accurately.

But most projects can be broken down into smaller chunks that can be successfully managed with a fixed price contract. A good supplier will be able to advise the best way to do this

N E G O T I AT I N G S U C C E S S F U L F I X E D P R I C E PA C K A G E S

and the milestones that are important to each project.

to work together to establish who is responsible for each of the deliverables and exactly what is being purchased.

Set the objectives and It may initially be intimidating for deliverables procurement professionals to explore Working more closely with the new methods of increasing value, business takes procurement in the instead of simply negotiating lower right direction when it comes to setting rates for time and material contracts. objectives and deliverables, as this is But exploring the use of fixed price not something they can do in isolation. contracts can be an excellent way Procurement and the business need to increase procurement’s strategic involvement in the business. Fixed price contracts mean that procurement gains a more in-depth understanding of the business needs, which they can then use to increase value from suppliers.

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TECHNOLOGY

How Cloud Computing can reshape your business With a greater amount of collaboration, various cloud platforms and applications can help further improve supply chain performance W R I T T E N B Y: S A M J E R M Y

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October 2014

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TECHNOLOGY WHEN YOU FLIP open your laptop or log on to your PC at the start of another business day, do you sign into a Hotmail account?

When you are looking for the nearest place to eat, do you ask Siri? And when you have finished work for the weekend and want to watch some cosy film, do you turn to Netflix?

If the answer to any of these questions is yes, then you have been the beneficiary of cloud computing in one form or another. But what exactly does cloud computing technology offer the supply chain sector and what are the direct benefits?

According to the US National Institute of Standards and Technology (NIST) cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of computing resources such as networks, servers, storage, applications, and services that can be rapidly provisioned and released with minimal management effort or service 30

October 2014

provider interaction.

In other words, this means that Cloud takes away the need to invest in the building of hardware, installing software, or paying dedicated software license fees; a bonus for any c-level executive, not just those within the supply chain.

As a result, cloud-friendly supply chain strategies such as Spare Parts Management, Transportation Management Systems (TMS), Sales and Operations Planning (S&OP) and Store Shelf Optimisations are ready and primed to take advantage and can realise the network effect.

The most standout and appealing features of cloud computing which will directly benefit the supply chain are the speed of access to IT resources and the increase in storage capabilities, making the supply chain much more agile.

It also means the subsequent improved visibility to statistics and data will make a supply chain more proactive and responsive, and

DO YOU KNOW WHERE YOUR CARGO IS?

Cloud computing’s speed of access to IT resources is pretty convincing

‘The most standout and appealing features of cloud computing which will directly benefit the supply chain are the speed of access to IT resources and the increase in storage capabilities, making the supply chain much more agile’

the enhanced levels of multi-level collaboration with suppliers, clients and business partners make supply chains more efficient.

Cloud-based technology provides one place where managers can go to monitor critical supply-chain events. When an element is updated, everybody gets the information.

That element of sharing is what distinguishes the cloud from more traditional means of centralising data.

All relevant data is held in one place.

When broken down like this, the 31

TECHNOLOGY

“Recent technology and social connectivity trends have created a perfect storm of opportunity for companies to embrace the power of cloud to optimise, innovate and disrupt business models�

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October 2014

CLOUD COMPUTING

potential for major corporations to benefit from the cloud is clear to see.

Major container shipping companies or truck haulage firms for instance, could use the technology to optimise efficiency of cargo control and visibility, therefore improving the quality of service to the end user.

Cloud capabilities offer numerous opportunities to drive business innovation when managed effectively.

Recent technology and social connectivity trends have created a perfect storm of opportunity for companies to embrace the power of cloud to optimise, innovate and disrupt business models.

Optimisers use cloud to incrementally enhance their customer value propositions while improving their organisation’s efficiency.

Innovators significantly improve customer value through cloud adoption, resulting in new revenue streams or even changing their role within an existing industry ecosystem.

Thirdly, disruptors rely on cloud to create radically different value

propositions, as well as generate new customer needs, segments and even new industry value chains.

Cloud delivery models can help organisations scale their investments as they grow their business. They can also open the door to new business approaches through standardised applications, infrastructure, testing environments and business processes that help improve service delivery and efficiency.

Forward thinking supply chain executives would do well to take advantage of transferring operations to the cloud, because this would free up capital otherwise used in investing in hardware capabilities.

It is looking increasingly likely the supply chain will become more proactive towards cloud computing technology.

For further cloud news, read: http://www. washingtonpost.com/blogs/ innovations/wp/2014/09/15/ four-disruptive-start-ups-inenterprise-cloud-computing/

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TOP 10

TOP10 Trucking Companies

With a plethora of trucking companies sprawled across the globe, it can be hard to know which companies are worth their salt and which just talk a good game.

Here, we select our best ten W R I T T E N B Y: S A M J E R M Y

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TOP 10

10

Ryder System

A healthy revenue of $6.4 billion ensures Ryder System makes the cut. With headquarters in Miami, it also covers much of North America, Europe and Asia. The company has been going strong for more than 80 years and is most famous for its fleet management business.

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October 2014

09

Saia

With market capital of $1.17 billion, Saia takes its rightful place in the top 10. Over 25,000 shipments are made daily to USA, including Alaska and Hawaii; Canada, Mexico, and Puerto Rico and the LTL has more than 8,000 dedicated employees to take care of that.

T R U C K I N G C O M PA N I E S

08

Werner Enterprises

Werner Enterprises, Inc. was founded in 1956 and is a premier transportation and logistics company, with coverage throughout North America, Asia, Europe, South America, Africa and Australia. Werner maintains its global headquarters in Omaha, Nebraska and maintains offices in the United States, Canada, Mexico, China and Australia. The company has market capital of $1.79 billion.

07

Schneider National

Another North American on our top trucking list, which is hardly surprising given the market share in this region. Schneider National operates in the USA, Mexico and Canada and has a market capital of $3.5 billion and owns more than 10,000 trucks. That is a lot of trucks.

37

TOP 10

06

C.H Robinson Worldwide

CH Robinson provides freight transportation services to and logistics solutions to companies through a network of branch offices in North America, Europe, Asia, South America, and the Middle East. An impressive number 86 on the Forbes 2000 list, mainly due to its $12.75 billion sales and $7.69 billion market capital, CH Robinson is another trucking big hitter.

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October 2014

05

FedEx Freight

Again, like its competitors UPS, the global brand of FedEx has its own trucking arm, and it is doing very well too. With $356 million of revenue in the division alone, and with the clout of the wider conglomerate behind it, there is every reason to believe FedEx Freight will continue to expand and at least consolidate in the middle of our list.

T R U C K I N G C O M PA N I E S

04

UPS Freight

The Less-than-truckload division of United Parcel Service of North America, the company with the easily recognisable brown vehicles score highly in terms of trucking.

The acquisition of Overnite Transportation and its subsidiary for $1.25 billion in 2005 goes to show UPS will remain a global player in the trucking industry.

03

DSV

A real European heavyweight of the transport service companies, Danish born DSV was always going to make the upper echelons of our list with sales of over $8 billion.

Although it also has DSV Air and Sea, and DSV Solutions, the road division is no shrinking violet; it has over 10,000 employees overseeing 17,000 trucks that deliver to 34 different European countries.

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02

Nippon Express

Japanese based Nippon rank very highly on the top trucking companies list. Founded in 1937 and headquartered in Tokyo, the company now boasts sales of $17.29 billion, market capital

of $5.03 billion and has nearly 65,000 employees. The group is made up of Distribution and Transportation, Goods Sales, and a division named ‘Other’ which currently consists of real estate, money lending, research, automobile, and employee dispatching businesses.

T R U C K I N G C O M PA N I E S

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TOP 10

01

J.B Hunt Transport Services

J.B. Hunt Transport is one of the largest transportation logistics companies in not only North America, but the world, and is providing services throughout United States, Mexico and Canada. Incorporated in Arkansas in 1961, it has been a publicly held company since its IPO in 1983.

With market capital of $8.56 billion, $5.59 billion in sales and 18,467 employees; JB Hunt is a truly giant trucking brand. The organisation operates through four segments: Intermodal, Dedicated Contract Services, JBT and Integrated Capacity Solutions.

It also has arrangements with most of the major North American rail carriers to transport truckload freight in containers and trailers.

This approach of offering multiple services to a range of clients, some of which are Fortune 5000 companies, provides a significant competitive advantage within the industry and cements JB Hunt’s place at the trucking summit.

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T R U C K I N G C O M PA N I E S

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IBM Supply Chain

Targets new areas to maximise future performance Written by: Sam Jermy Produced by: Craig Daniels

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I B M S U P P LY C H A I N

The illustrious brand has long been synonymous with being a traditional IT company, but now the group is shifting some of its focus to take advantage of new technologies and innovations

TV quiz “Jeopardy” 46

October 2014

T

he IBM Service Parts Supply Chain is looking forward to future prosperity in spite of IBM’s strategy to focus on business analytics, mobile and cloud technology. The Service Parts supply chain will continue to provide a full service parts planning and delivery operation.

The IBM Service Parts Supply Chain business unit in the Europe Middle East and Africa (EMEA) region currently presides over more than 55 countries, controlling service parts supply chain from its central location in Europe and the wider group continues to be a truly global leader in IT with multi-billion dollar revenues.

The International Business Machines Corporation (IBM) has a famous track record of innovations, with the likes of the Mainframe large computer systems and the Power Systems, a Power Architecture-based server line, and its storage brand to name three.

Jaap Hazewinkel, who joined the group nearly 25 years ago, is currently the Manager of Planning and delivery in EMEA as well as the Worldwide Service Parts Operation Inventory Manager.

He said: “These brands are still strategic to IBM and the company is further innovating. For instance Watson, our intelligent machine, in 2011 beat human experts on the TV quiz “Jeopardy”, and its architecture is now further developed to build machines that excel in business analytics.

“We continue to play in the hardware area

S U P P LY C H A I N

The service parts operations transferred from Paris to the Netherlands in 1987

but it really is on the high value end. So moving out from that side of things is of course a challenging environment but IBM is investing in new technologies such as cloud, analytics, mobile, social and security and it is up to us to find solutions in smarter ways. That is a real challenge but it is one we relish and we are confident of continuously improving each year.”

IBM is still managing the Service Parts Supply Chain for the Intel based server brand that is being sold to Lenovo and for the Lenovo Think brands. These are important functions to the firm, but it is also open to managing and working with other clients who have a service supply chain.

The service parts operations transferred from Paris to the Netherlands in 1987 and

“We continue to play in the hardware area….but IBM is investing in new technologies such as cloud, analytics, mobile, social and security and it is up to us to find solutions in smarter ways” – Jaap Hazewinkel

www.ibm.com/software/products/en/category/supply-chain-management

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SUPPLIER PROFILE

K314

K314: Manufacturing and Aftermarket Services Founded in 2011, K314 combines the skills and managerial experience in global EMS of the former IBM Vimercate (Italy) plant. K314 proves that a small yet well structured company, through expertise and flexibility can satisfy the needs of those looking for worldwide support from a European EMS provider. Global is all about attitude and experience, not geography. This is a key principle on which K314 is founded. The K314 team is made up of professionals whose knowledge comes from diversified experiences in several countries. This shared experience is a cultural heritage. K314 achieves excellent financial results while delivering the highest possible standards. With locations in Italy and Serbia, K314 offers the best of Europe in capability, logistics and costs.

K314 is specialized in low to medium volume and high mix, using the most modern manufacturing processes integrated with the IT of the customer. A specific Aftermarket division carries out repair and refurbish of complex systems, for companies such as IBM and Cisco as well as many others. K314 belongs to a network of companies able to offer Design Service and Test Development support, with customers such as ST Microelectronics benefitting. The newest expansion, by the acquisition of Orpro Vision (formerly the Assembly Division of Orbotech), adds Optical Inspection solutions to this network. With these connections K314 is a skilled enterprise able to support a broad spectrum of needs in the electronics industry.

K314: Simplify your life!

Website: www.k314.us

I B M S U P P LY C H A I N the main warehouse now resides in Venlo, in the east of the country. The managing business unit remains in Amsterdam where it centrally oversees the entire EMEA region.

In Hungary it has a country planning team and repair vendor management, and it has a buffer planning team in India. Reutilisation of parts is one of IBM’s key strengths.

Shifting focus In the past decade IBM’s changing strategy has seen it sell its PC brand to Lenovo, printer editions to Ricoh and more recently its retail storage solutions to Toshiba last year. But the amount of countries it serves in regards to maintenance services has continued to increase, with Nigeria and Kenya being recent stock locations added to the EMEA portfolio.

The company has also completely consolidated the management of its warehousing and transportation by subcontracting this to Geodis. It is the sole lead logistics provider for IBM by managing logistics costs supporting the finished goods distribution, asset recovery services, as well as service parts logistics worldwide.

Laurens Neomagus, who is Global Parts & Logistics Process Owner for MultiVendor Support, said: “We have outsourced warehousing and transportation almost completely to third party suppliers through Geodis. We still have all the applications, they run

EUROPE

Key Personnel Jaap Hazewinkel Manager of Planning & Serviceability Worldwide EMEA Inventory Management and Worldwide Service Parts Operation Inventory Manager

After completing his study of Computer Science at the Technical University in Delft, Jaap joined IBM in the area of developing the systems used in managing service parts.

After an assigment in Paris, Jaap moved into the operational management of the Service Parts Supply Chain

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I B M S U P P LY C H A I N IBM Supply Chain is also looking for alternative support models using third parties to deliver service on its behalf

Technician

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October 2014

them or we are integrated into their applications.

“We do also support non-IBM brands; if a company was having an IBM machine installed at their premises we would also offer to take up the support of the other machines as well. We are strong in support of networking Hardware, as connectivity is key to our clients’ business. On the maintenance side, a client wants a one-stop-shop.

“The support structure can be either in the way we support IBM machines via the IBM network but we are also looking for alternative support models using third parties to deliver the service on our behalf. In these models, inventory can be either in the IBM network or in the third party network. The decision on how to support a specific brand is made in full

EUROPE

Key Personnel Laurens Neomagus Global Parts & Logistics Process Owner for Multi-Vendor Support

conjunction with sales and offering, service planning and global parts procurement.

“Not only technology but also healthcare, automotive and mobile are areas we want to grow into. But we want to grow without the additional cost so we do our best to find the most cost effective solutions.”

Having a global organisation that is able to be globally accountable for performance is one of the key strengths IBM has. Maintenance revenue growth is largely in the non-IBM machine support today and that is where IBM really focuses right now. IBM supports complete infrastructures for clients that don’t want to manage the service parts themselves.

Neomagus added: “If you are looking for a player that can support customers on a global

Global Process Owner for Multi-vendor Spare parts support, working for IBM nearly 15 years.

During these years he worked in different supply chain management roles within planning and inventory management.

In the last two years he made the shift to growing the support of Multi-vendor business.

In 1994 he graduated from the study Business Logistics at Hogeschool Venlo and finished the study Business Administration at the University of Nijmegen in 1997. Throughout the last couple of years he has been active in logistic discussions with other companies and supporting students to complete their master thesis from the University of Twente

www.ibm.com/software/products/en/category/supply-chain-management

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I B M S U P P LY C H A I N

Cloud services are the future

“The cloud is not creating a challenge, it makes life easier from a logistics viewpoint...

Having full tolerance cloud computing technology on our side is a definite benefit” – Jaap Hazewinkel

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October 2014

reach and understands the spare parts needs of customers in each of those countries, then IBM has a lot of expertise in that area.”

Technological future The environment which companies such as IBM operate in will change dramatically because of the technological advancements that are currently afoot. Currently IBM knows all customers’ locations it may have to support 24/7 are spread over a country; this will change with the evolvement of cloud technology that will result in a concentration of hardware in a couple of big data centres.

“Customers won’t have their own infrastructure anymore and that may significantly affect how we are organised in five years’ time.” Hazewinkel said.

“For example, a mainframe may have a parts issue and to get it back to being fully fault

EUROPE

tolerant, the client requires the part as soon as possible, but you are not allowed to bring the machine down until 2300 hrs Saturday evening as it will affect their business. So you can only take it down at that point, fix it and bring it back up to being operational again.

“The cloud is not creating a challenge, it makes life easier from a logistics viewpoint. We do have challenges in the international environment in terms of regulations, import/exports controls and so on. But having full tolerance cloud computing technology on our side is a definite benefit.”

In the near future IBM Supply Chain believes there will be a lot of focus on spare parts and in order to get a business up and running each company needs to invest for these kind of requirements.

Hazewinkel and Neomagus agree the key is to collaborating and making partnerships.

New innovations for IBM include the commodity-based lifecycle forecasting which involves spare part usage and intelligent calculations. It determines where in the lifecycle a machine is and then plans how the demand of the part is likely to evolve over the next two years and in case of Last Time Buys over the remainder of the life cycle, possibly resulting in less inventory and a more proactive approach.

Now it seems IBM are well placed to imprint its synonymous brand into new realms, just as it has with more traditional components for more than a century.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Amsterdam, Netherlands FOUNDED

1911 EM PLOY EES

431.212 (IBM Annual Report 2013) REVENUE

$99,751 mio USD (IBM Annual Report 2013) PRODUCTS/ SERVICES

IT Services, spare part services

www.ibm.com/software/products/en/category/supply-chain-management

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Knapp AB:

Driving Warehousing Innovation Written by: Joel Levy Produced by: Craig Daniels

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KNAPP AB

Its class-leading solutions saw Swedish company Moving AB acquired by KNAPP in 2008, and the company has continued to set the industry standard since

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October 2014

K

NAPP AB continues to build on its strong position in the Scandinavian market and enhance its reputation as an innovative warehousing industry leader.

Based on its forward-thinking spirit and skilled, motivated workforce, Managing Director Benny Thögersen is confident the company will continue to strengthen and expand, with a clear strategy to double turnover as part of its 2020 growth plan.

“Back in 2008, KNAPP was not very well recognised on the Scandinavian market.

Nowadays all the major players in our industries know us,” he said.

The Swedish company, formerly Moving AB, was acquired in 2008 by KNAPP, which was attracted to the former’s innovative systems and conveyor programme, as well as its Scandinavian customer-base built over a 39-year history.

Thögersen said: “Leading up to the acquisition, Moving had a quite aggressive business plan.

In the late ‘90s through 2000s we entered the system integration market and delivered some very large projects, one of the flagships of which was Clas Ohlsson: a £40-£50m installation.

“We had some Class 15 mini-load installations in Scandinavia as well as the UK and one in the US. So we had a period of growth where we became the challenger in the market.”

As KNAPP AB, the company has gone from challenger to established player, providing a crucial role within the group, based on four pillars.

S U P P LY C H A I N

Class O Sortering

It is a production entity for pallet and light-good conveyors; producer in Sweden of designs and solutions for small-medium complexity (SMC) systems; component sales provider; and runs a strong customer service team which promptly supplies spare parts and other services to clients where required.

Delivery shoot

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KNAPP AB

EUROPE

Though KNAPP AB is responsible for local acquisitions for KNAPP’s large-scale integrated projects, The MD sees SMC work as a crucial part of the business.

He said: “We see a gap in the market for these smaller scale, less complex projects: £100,000 to £2m, a field that the really large players are not eager to take projects in. But sometimes it is better to take those. Within the KNAPP group we aim to be a fast-moving, agile, responsive company with very short delivery times to quote and execute this kind of project.

“Delivery time is so important, because customers can get a return on investment quickly, meaning they get better savings. The decision processes within the company are much faster than a few years ago.”

Market-leading technology For years, KNAPP AB has set the market standard for conveyor systems, and that it continues to do so is all the more important with the major international players now present in Scandinavia.

The company’s invented pick solution, the OSR shuttle-based technology for storage and retrieval- has revolutionised infralogistics, and proven invaluable to its large customer-bases in the pharma, fashion and e-commerce sectors.

The OSR Shuttle is a high-performance, versatile and reliable semi-automatic picking and storage system that forms the heart of the company’s warehouses.

Key Personnel

Benny Thögersen Managing Director

“Delivery time is so important, because customers can get a return on investment quickly, meaning they get better savings. The decision processes within the company are much faster than a few years ago” – Benny Thögersen, Managing Director

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KNAPP AB

“We are also very strong in the spare part logistics; serving the customers including Mekonomen and MECA” – Benny Thögersen

It is extremely safe and stable, able to be operated both in earthquake zones and on mezzanines, and is highly energy-efficient, achieving excellent sustainability through optimal adjustment of the control system, low empty weight, brake energy recuperation and efficient handling of all processes via the KiSoft SRC software.

KNAPP has installed more than 150 such systems, which are compact and help save space in a busy warehouse while allowing for future expansion.

Thögersen explained: “By using OSR as a backbone in the system you can fulfil many different operations, not only picking but also value-added services, dispatch sorting and highly efficient return handling. With this shuttle-based technology, we can simplify the concept and the solution itself. It creates very robust and flexible solutions.

“For example, if we have a change in order or SKU structure, you don’t have to make any major rearrangements. We could cope with that situation by having one type of technical solution for doing the job.

“We have evolved this technology over 12 or 13 years and can now really gain on the flexibility and speed of the shuttle to create systems with very low complexity but are at the same time robust.”

Pharma Pharma is a sector in which KNAPP particularly

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S U P P LY C H A I N

Robot palletizing

excels, establishing itself as a class-leader with its warehousing innovations. It has installations at all the major market players in Scandinavia, and last year installed a picking and handling system for food retailer ICA’s store-in-store pharmacy facilities.

Also a leader in fashion, ecommerce, and multichannel business, KNAPP AB’s knowledge and solutions make it well placed to handle larger and integrated projects.

KNAPP AB enjoys an outstanding reputation in retail, serving high-profile clients such as Clas Ohlson, having worked with the hardware chain since 2,000.

Thögersen said: “The installation there is, I think, the largest warehouse in Scandinavia by volume. We have 23 pallet-stacker cranes there, 16 mini-loads and a comprehensive palette and light goods conveyance system. We have a very close relationship, and in partnership have more

Racking systems

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KNAPP AB

OSR Shuttle

“It is important to have trust and belief in your employees. I have applied an ‘outside-in’ way of thinking where we are driven by and adapt to the market and the customers” – Benny Thögersen

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October 2014

or less developed their infralogistics.

“We are very also strong in the spare part logistics; serving customers including Mekonomen and ECA.” Vision technology True to form, the company also leads in vision technology, where its approach is to build quality into the process itself, rather than running checks after a task is completed, eliminating error. This technology identifies products in real-time, using barcode or visual recognition, ensuring the correct items are picked.

Thögersen said: “The A-frame ejects the products to a central belt which transports it to tote, and when the products are dropping in you also have the vision system, which takes pictures in real-time and recognises all the products. So you know the customer’s products are there and can say with 100 percent accuracy that you have the correct product.”

EUROPE

Staff This attention to detail and commitment to accuracy is mirrored by the mentality of KNAPP AB’s 70-strong workforce, and instilling an even greater sense of pride in performance has been key to Thögersen’s improvement strategy since his appointment in 2013.

Having gained extensive supply chain experience in various roles, the new MD set to enhancing the working environment and opportunities for KNAPP AB’s 75 staff, applying a style of leadership based on his passion for sports management.

“It is important to have trust and belief in your employees,” he said. “I have applied an ‘outsidein’ way of thinking where we are driven by and adapt to the market and the customers.”

Customer service has been a focus area, with the service technician personnel increased fivefold and further growth planned. “If things go in the right direction we will double that team in three years,” Thögersen said.

“In trying to be an agile company, we get very motivated, committed people, and this is something we have improved in the last couple of years. Noone has quit the company in the last year; in fact three or four key people have actually returned.”

As it continues to innovate, motivate and set the standard as a flexible, responsive company, attracting and retaining the industry’s best talent, KNAPP AB can be confident that its ambitious goals are well within reach.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Astorp, Sweden FOUNDED

1969 EMPLOYEES

75 REVENUE

Not disclosed PRODUCTS/ SERVICES

Warehousing

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Hala Supply Chain Services to

Strengthen Saudi Core as Growth Hits Double Digits Year-on-Year

Written by: Tom Wadlow Produced by: Craig Daniels

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H A L A S U P P LY C H A I N S E R V I C E S

The customised solutions provider is adding a state of the art warehouse to its Kingdomwide network and developing allencompassing monitoring systems as it looks to build on its numerous successes across a range of sectors from Oil & Gas to FMCG

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H

ala Supply Chain Services strives for continuous improvement across its range of industries in Saudi Arabia, as demonstrated by its commitment to building a new 36,000 square-metre warehouse at its flagship hub in Jeddah.

Having been named 15th fastest-growing company in the Kingdom in 2009 and currently achieving double digit growth yearon-year, it is looking to build on impressive work with big name clients including SABIC, Saudi Aramco, Burberry and MG Cars.

Hala SCS prides itself on adding true value to businesses by offering a complete supply chain package, the demand for which prompted its shareholders to form this specialist subsidiary in 2003.

This value is to be further enhanced by the development of a comprehensive IT solution

Hala’s warehouse service offering for Foodstuff and Pharmaceuticals comply with all the stringent quality requirements and certifications

that facilitates enhanced visibility across entire supply chains, combining existing clearance, transport management and warehouse systems.

Chief Executive Officer Pieter Spaarwater added: “We want to make companies see their supply chains and logistics functions as a competitive advantage rather than -a cost centre. We do this through building collaborative partnerships and customised solutions to suit individual client needs.”

Bolstering Jeddah Hala SCS warehouse capacity includes 15 warehouses across 12 localities in Saudi Arabia, with the company carrying out clearance and forwarding work from airports, sea ports and dry ports, its main hubs comprising Riyadh, Dammam and, most importantly, Jeddah on the

“We want to make companies see their supply chains and logistics functions as more of a competitive advantage rather than just a cost centre” – Pieter Spaarwater, CEO

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H A L A S U P P LY C H A I N S E R V I C E S

Hala’s documentation storage solutions

Hala serves the complete supply chain for the automotive industry to final destination anywhere

Red Sea where the new warehouse is earmarked.

“With the site secured and the design phase underway, construction will be complete by the end of the year,” Spaarwater said.

“The site will house products from our main industries including oil and gas, automotive, FMCG, pharmaceuticals, energy/mining, documents and dangerous goods, including frozen and temperature controlled facilities.

“This is another example of how Hala SCS adds value: we help clients to select strategic sites and facilitate the outsourcing of the design process, depending on the products being housed.”

Hala SCS has also acquired an 83,000 square-metre plot in Dammam which is set for a similar development once the new Jeddah warehouse becomes operational.

Spaarwater added that Riyadh will eventually host a new warehouse as well.

Such improvements will allow the business to expand greatly on its existing capabilities. Currently it has access to 2,500 vehicles which take anywhere between 5,500 and 7,500 loads each month.

Portside, the company clears 200,000 tonnes of product annually, ably assisted by constructive partnerships with UTi and Hellmann Worldwide Logistics that help to extend its international reach.

in the Kingdom of Saudi Arabia

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Track record Showcasing the recent growth success is

S U P P LY C H A I N

Hala has a strong management team

a portfolio of recent work spanning many sectors which includes some big clients.

SABIC (Saudi Arabia Basic Industries Corporation), one of the largest companies in the Kingdom of Saudi Arabia, enlisted the services of Hala SCS around 18 months ago for its downstream initiative involving the manufacturing of rubber and plastic car components.

The company carried out the clearance work and set up the facility in quick time, a key factor for the government who instigated the scheme. It also distributes the products across the Kingdom.

In oil and gas, Hala SCS assisted Saudi Aramco in a petroleum research centre project. “This involved setting up a compound for the staff supporting the initiative, a site containing around 400 villas which we had to supply the kiting and fitments within tight

300 Number of permanent staff employed at the company

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H A L A S U P P LY C H A I N S E R V I C E S

Hala’s warehouse management system is based on real time and web based transparency to clients

time constraints,” Spaarwater added.

“We covered everything inside the villas, from light fixtures and mirrors to furniture and cutlery, and all this was achieved within a strict temperature controlled environment.”

Further afield and in the retail arena, the company manages the route to market of Burberry products from the UK into Saudi Arabia, a customised agreement struck roughly 18 months ago.

Spaarwater continued: “From point of order in the UK to final store delivery it takes us a week which is quite an achievement considering the strict rules and regulations at customs in the Kingdom.

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“The products come in via air and it is very process-driven with timelines associated to every specific step within the journey. It has been a major success for us and showcases our drive for excellence in service efficiency.”

In the automotive space, Hala SCS manages the supply chain for six fully assembled models from MG Cars into the Kingdom, along with assisting crucial after sale service by provisioning spare parts. The company is also clearing, storing and delivering Kumho Tyres products at a strike rate in excess of 95 percent.

Process, People and Technology Already boasting an impressive track record, Hala SCS views continuous improvement with enormous importance, with process, people and technology at the heart of its mission statement.

On the technology side, improving supply chain visibility by integrating existing clearance, transport management and warehouse systems into one umbrella solution is a priority.

“This is something we are looking to continuously improve, especially on generating enhanced visibility to the client,” Spaarwater said. “It is one of IT’s ongoing projects and within the next year we will launch an optimised visibility solution.”

The system’s individual components already offer a large degree of visibility, with the company having been appointed by Descartes to operate its Roadshow route optimisation package.

2,500

Number of vehicles the company has at its disposal “This involved setting up a compound for the staff supporting the initiative, a site containing around 400 villas which we had to supply the kiting and fitments within tight time constraints” – Pieter Spaarwater, CEO

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Pieter Spaarwater, CEO

“From point of order in the UK to final store delivery takes us a week which quite an achievement considering the strict rules and regulations at customs in the Kingdom” – Pieter Spaarwater, CEO

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October 2014

Hala Reception area

Looking after its people, who ultimately make use of the technology and drive the processes, is also crucial. Hala SCS employs 300 permanent staff with seasonal temporary workers fluctuating through the year, and gauging both employee and customer feedback is something Spaarwater actively pursues.

He said: “We have an annual cultural audit which is carried out by independent consultants and our aim is to cultivate a positive ownership culture. This is supported by wide-ranging training opportunities for staff as a major component of human capital investment. We have on-the-job, internal classroom training and externally facilitated training, and our top performers are sponsored to attend

MIDDLE EAST

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Kingdom of Saudi Arabia FOUNDED

2003 EMPLOYEES

300+

internationally-recognised courses.”

The company is also bringing in expertise to help the workforce adapt to lean six sigma principles.

Hala SCS, while proudly holding platinum status in regards to its employment of Saudi nationals, is an extremely diverse organisation.

“Our environment is a microcosm of the cultures and nationalities within Saudi Arabia,” Spaarwater added. “In my team of reportees alone, I have a Belgian, South African, Indian, Pakistani, Jordanian and a Saudi national.”

Such diversity could well be translated into the company’s geographical remit in the coming years, for once it has consolidated its core Saudi operations the horizons may widen to incorporate other GCC countries.

REVENUE

$90 million PRODUCTS/ SERVICES

Logistics, Warehousing, Forwarding, Clearance

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SKA International Group

Continues to raise the business profile of the toughest environments Written by: Tom Wadlow Produced by: Craig Daniels

77

S K A I N T E R N AT I O N A L G R O U P

Despite press coverage depicting the likes of Iraq and Somalia as notorious hotbeds of instability, the company is proving that commercial potential in such places can be extracted by offering vital fuel supply and logistics operations where many would turn and run

727 Freighter

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October 2014

S

KA International Group is an expert in doing big business in difficult places, underlined by its $80-100 million investment in a state-of-the-art fuel storage facility 20km upstream from the Iraqi coast, testament to more than 10 years’ experience of operating in the war-stricken country.

Having excelled in supplying and transporting fuel and equipment during the major US occupation years, the Dubai-based company, with more than 700 employees and turnover in excess of $500 million, is increasingly looking to oil and gas opportunities in Iraq and other countries across the Middle East and Africa with challenging circumstances.

SKA has significant ongoing investments in Somalia and Uganda, and is raising the profile of the Ras Al Khaimah International Airport in the UAE with a 10 year agreement, where it has built and operates an Aviation Fuel Storage Facility.

SKA’s capabilities include a wide range of fuel

S U P P LY C H A I N

SKA Bedford Trucks in Mogadishu

supply chain management services, aviation services, ground logistics, life support, facility construction, and security services.

Working as a good corporate citizen, and helping to develop business, people and communities while supporting charitable initiatives, lies at the heart of what CEO and President, and 100 percent owner Mike Douglas is vying to achieve. “Despite the negative coverage of the countries we are in there is huge potential for development,� he said. “We are already changing that negative impression and a big part of what we do is give back to the communities we do business in.

Key Personnel

Mike Douglas CEO and President

w w w. s k a - a r a b i a . c o m

79

Providing Turn-key Rental Power Providing Turn-key Rental Power SolutionsTurn-key to the OilRental & GasPower Industry Providing Providing to Turn-key Power Solutions the Oil Rental & Gas Industry Solutions to to the the Oil Oil & & Gas Gas Industry Industry Solutions Whether you need temporary power for the operation of oilfields, the construction of platforms, early temporary production,power planned maintenance loadtest of main power Whether you need for or theemergency operation of oilfields, theor construction of systems, Aggreko has the solution. platforms, early production, planned maintenance of main Whether you need temporary power or foremergency the operation of oilfields,or theloadtest construction ofpower systems, Aggreko has the solution.

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SUPPLIER PROFILE

AGGREKO

Since its foundation over 50 years ago, Aggreko has grown to become the world’s leading provider of rental power and temperature control solutions. With over 5,700 employees operating from over 194 locations, Aggreko provides 24/7 availability and service support. Aggreko offers the highest levels of performance and customer service and is truly a global force in temporary power generation.

Aggreko in the Middle East Since opening its first regional office in Sharjah in 1991, Aggreko today offers round-the-clock service support and equipment availability in the Middle East through a network of twelve locations in eight countries; UAE, Oman, Qatar, Kuwait, Bahrain, Saudi Arabia, Turkey and Iraq.

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2014 12:55 12:55

S K A I N T E R N AT I O N A L

Off loading cargo

80,000 Planned number of tonnes of fuel storage available at the Port of Khor Al Zubair 82

October 2014

“The company can continue to grow significantly in the next three to five years.�

Khor Al Zubair Iraq represents arguably the greatest challenges but also the greatest amount of activity for SKA, which operates under nine companies across six Middle Eastern and African countries.

Its current flagship investment lies at the Port of Khor Al Zubair, the first privately-owned fuel storage facility in Iraq, with a 20,000 tonne capacity, set to rise to 80,000 once phases two and three are completed.

The expansion, which will take total spend to upwards of $80 million, will allow SKA to deliver

S U P P LY C H A I N

The company’s aim is to handle third party imported products

more fuel to power vital industries in the future.

“We have encountered some significant challenges but we are very active, supplying fuel and importing refined products, and keeping power stations operational in what is a very difficult time,” Douglas added.

“The expansion will give us more capacity and will allow us to bring in bigger vessels which have lower freight premiums. Our plan is not only to handle our own fuel through the terminal but to handle third party imported products also.”

SKA also has a testing lab at the site where Intertek conducts international fuel certifications, giving peace of mind to customers in the knowledge that their fuel is of the highest

“The expansion will give us more capacity and will allow us to bring in bigger vessels which have lower freight premiums” – Mike Douglas

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standard, something which has been problematic in Iraq in the past.

Investing in Iraq This project is representative of a shift towards focusing on the oil and gas markets in the country following a number of huge and varied projects based around the US military.

SKA handled most of the logistics freight for the US government in a six-year contract and carried out an enormous 180,000-hectare crop spraying scheme in 2006; this while being the key fuel supply chain operator.

It now has a fleet of 500 trucks in Iraq moving all kinds of fuel and equipment, and is working with global oil and gas companies including BP and Lukoil. The company’s local knowledge and experience is central to its success.

“Security is a major issue in a lot of our regions,” Douglas said. “But 11 years in Iraq has given us the experience to manage our way through a lot of the problems. We have a thorough security plan in place and an extensive evacuation procedure should the need ever arise.

“Our experience and knowledge of what happens on the ground is our greatest asset – we can foresee issues before they come to us.”

The resoluteness of SKA has played an important part in convincing businesses to invest in Iraq, and Douglas, himself having served in the armed forces, is an active figure at the Iraq British Business Council. This body works tirelessly to

500 Number of trucks in Iraq moving all kinds of fuel and equipment “11 years in Iraq has given us the experience to manage our way through a lot of the problems” – Mike Douglas

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ENGINEER.PROCURE.CONSTRUCT.MANAGE

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The sphere of activity is focused in providing expertise and turnkey solutions to clients throughout Middle East, Australasia, Africa and North America.

With Global Operations and technical expertise to respond to the complex challenges of the Bulk Liquid Storage Tank Terminal/Depots Installation, Offsite, Utilities, Pipeline, Process Plants (Refinery & Petrochemical), Topside Facilities, Fuel Ethanol Plants, Bio Diesel Plants or Used Oil Recycling Plants, Chemie-Tech delivers Quality Projects.

PO Box 29781, Sharjah, United Arab Emirates Tel +971.6.5530776 Fax +971.6.5538466 bd@chemietech.com www.chemietech.com

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S K A I N T E R N AT I O N A L G R O U P

MIDDLE EAST

bring in investment to the country and SKA is a founding member.

Ras Al Khaimah Closer to its Dubai headquarters, the company is working to improve the commercial profile of Ras Al Khaimah International Airport.

A $10 million aviation fuel storage facility, recently commissioned, is the first step in attracting both cargo and passenger carriers to the airport. Douglas believes the incentive of a competitive fuel and handling package will draw in investment where before it may not have been attractive.

“As the UAE rapidly expands there is a lot of congestion at Dubai International, but currently at Ras Al Khaimah there is a very low level of activity,” he said. “We are injecting some fresh ideas and the large amount of hotel developments going on also shows the tourism potential.”

Somalia, Uganda and beyond Aviation is also a crucial part of SKA’s work in Africa, not least in Uganda and Somalia, arguably the most unstable nation on the continent.

Here SKA has several contracts with the United Nations (UN) mainly based around life support and fuel supply, and continues to provide supply chain services to Mogadishu airport having given it a new lease of life between 2010 and 2013.

SKA has operated helicopters as well as its own fixed-wing aircrafts and truck fleet in Somalia,

SKA has operated helicopters as well as its own fixed-wing aircrafts and truck fleet in Somalia

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S K A I N T E R N AT I O N A L

The company invests significantly in training

“We pride ourselves on having local staff and taking good care of them, giving opportunities they otherwise wouldn’t have” – Mike Douglas

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with a significant focus now being turned towards oil and gas operations.

Douglas added: “We have been on the ground for coming up four years and have developed a unique capability in terms of being able to do business.

“There is a big opportunity here for oil and gas and a lot of mineral resources which are yet to be explored. We are long-term investors, here for the long haul.”

In Uganda, the company is set to begin building a 20,000-tonne fuel storage facility just outside Kampala, with operations looking to commence in 2015. The site is strategically placed on the rail and road networks from Mombasa, facilitating increased import of refined goods.

SKA is also about to retain its air operating certificate, an important step on continuing work

MIDDLE EAST

here and for other UN projects in the likes of the DRC, South Sudan and Central African Republic.

Building up communities An ultimate end for Douglas is to revitalise the societies in which the company works, with a big part of this revolving around employing and developing local people in the business. SKA employs more than 700 people, a mixture of former armed forces personnel, commerciallyfocused personnel, as well as local nationals.

“We pride ourselves on having local staff and taking good care of them, giving opportunities they otherwise wouldn’t have,” Douglas added.

“We invest a lot in training and sending people abroad to become qualified – I want a loyal group to take us forward.”

The company also invests heavily in the charitable sector, for example in Iraq where it supports many events run by the Amar International Charitable Foundation.

By continuing to improve its own offering, SKA International Group can keep on driving commercial growth in the world’s most challenging environments where help is needed the most, ultimately uplifting the lives of communities that have endured years of hardship.

Douglas concluded: “Despite the negative media headlines there is a huge amount of opportunity in African and Middle Eastern countries. The message I want to give is that we are here to stay.”

Company Information INDUSTRY

Supply Chain & Energy HEADQUARTERS

Dubai, UAE FOUNDED

2003 EMPLOYEES

700+ REVENUE

Not Disclosed PRODUCTS/ SERVICES

Logistics

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Safety

in Movement Overcoming borders with competitive solutions and logistics in transportation Written by: Rebecca Castrejon Produced by: Lucy Verde Interviewee: Jose de Jesus Casta単eda Ba単uelos, CEO of Trucka

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TRUCKA Trucka, a family success story

C Headquarters

ommitment, responsibility and innovation are just some of the values that identify Trucka, the Mexican company that provides logistics and transportation solutions.

The history of “Transportes Unidos Castañeda de Aguascalientes” began in 1944, when founder Sergio Castañeda Guerra opened the company’s headquarters in the state of Aguascalientes after purchasing his first truck at age 30.

By March 13 of 2000, Jose de Jesus Castañeda Bañuelos, Financial Administration executive and the youngest son of Don Sergio, took over as the new CEO of the company. In a little over 10 years of leading the renewed “TRUCKA” (Transportes Unidos Castañeda), Castañeda transformed the direction of the company under a strategicinternational drive, expanding the business to all corners of the country and increasing the fleet of trucks from 27 to more than 400 units by the end of 2012.

“We believe that in five years the company will double in size through organic growth and a clear plan of mergers and acquisitions” – Jose de Jesus Castañeda Bañuelos, CEO of Trucka

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L AT I N A M E R I C A

This 2014, the highly competitive Trucka has reached a national level and seeks to consolidate their operations throughout Mexico with a continued investment in developing markets. Trucka has been a “Top Company” for four consecutive years, according to CNNExpansion’s ranking and won the award for “Outstanding Performance” by Chrysler. Their main certifications include ISO 9001:2008, C-TPAT, LCT, BASC and ISO 9000.

The company seeks internationalization for the collective progress of their “Truckanianos” (employees), administrative staff and partners.

Flotilla

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TRUCKA

Reaching all corners of the country

“We hope to make our first debt issue in 2015, and in the not too distant future, become a public company” – Jose de Jesus Castañeda Bañuelos, CEO of Trucka 94

October 2014

Trucka is synonymous of more than 70 years of experience in the automotive industry, an experience that shows in their range of services and professionalism of all departments, from their drivers, presence and procedures, to their fleet of 400 trucks.

Their vehicles are located in various terminals of the Mexican Industrial Corridor and ready to provide solutions 24/7 to both domestic and foreign clients, respecting delivery deadlines and safety regulations at all times. Trucka is currently crossing national barriers, delivering in the United States and Canada through strategic alliances with 36 American lines.

The company is present in 11 strategic locations in the cities of Guadalajara, Monterrey, Queretaro, Saltillo, San Luis Potosi, Manzanillo, Nuevo Laredo, Mexico City, Aguascalientes and Silao, the home of their corporate headquarters and Operating Centre (COT).

Competitive Advantages Trucka has integrated the latest resources to provide greater efficiency in their daily operations, such as an updated GPS system, software SRP and digitalization of all internal movements.

As part of their vision for 2020, they have implemented the “400 Renewal Plan” to keep their vehicles in constant maintenance and with an average life of three years, a process that began in 2011.

L AT I N A M E R I C A

Key People

Jose Casta単eda CEO of Trucka

Working 24/7

Strategic Partners Suppliers are critical to the growth of the company. They provide a mutual progress with developments in the industry that will place them in new markets. Year after year the company strengthens their relationship and verifies that the supply provided go pair in pair with the w w w. t r u c k a . c o m . m x

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TRUCKA company’s vision, a vision of quality, efficiency, cost-effectiveness, time management and the inclusion of new technologies.

Responsible Activities

Transportations that mark a fixed destination

In partnership with the Autonomous University of Aguascalientes, Trucka has ventured into the production of biodiesel to supply its fleet, benefiting the environment with friendlier operations.

Their social responsibility goes beyond environmental management, since they also support renowned sports and charity

L AT I N A M E R I C A

organizations, such as the Integral Rehabilitation Center Telethon (CRIT), club Necaxa based in Aguascalientes and the baseball team Rieleros de Aguascalientes.

THE INTERVIEW In an interview with Jose de Jesus Castañeda Bañuelos, current CEO of Trucka, he mentioned the company’s growth plans, their projections and 2020 objectives. Here his answers.

BRAL. ¿What is the company’s vision for the next five years?

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TRUCKA

Human resources

Mechanical competitiveness

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JC: In Trucka we have a business plan called “Vision 2020� which clearly defines the objectives of the company by sector.

In broad terms we believe that in five years the company will double in size through organic growth and a clear plan of mergers and acquisitions.

We can achieve this with the incursion into a private equity fund as a shareholder of the company to accelerate its growth. We hope to make our first debt issue in 2015, and in the not too distant future, become a public company.

L AT I N A M E R I C A

BRAL. 多What is your greatest success as the CEO of Trucka?

JC: Having managed to turn a family business into a corporate one by maintaining a stable and lasting relationship with all the members. And always knowing what you can expect from a family business.

BRAL. 多What are some of your environmental policies?

JC: In Trucka we are concerned about the environment, every year we renew our vehicle fleet in order to have the most modern engines and to emit fewer pollutants. We have an R&D center in which we made great efforts to produce biodiesel and in analyzing the recycle process of used oil.

Our organizational communications department sensitizes our staff in the proper use of resources, and in the use of environmental safety regulations in the workplace.

BRAL. 多Are you planning to expand operations to other markets?

JC: In the coming years we see a consolidating phase in the domestic market. But so far we have not laid eyes on other international markets.

Company Information INDUSTRY

Land transportation and logistics HEADQUARTERS

San Francisco de los Romo, Aguascalientes, Mexico FOUNDED

1932 EMPLOYEES

700+ PRODUCTS AND SERVICES

- Logistics and transportation - Orders for loading and unloading REVENUE

USD $75 million

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Corporativo UNNE: Distance and cost reduction

UNNE’s key factor for growth has been the ambition to broaden their business units, thus improving every single step to accomplish flawless logistics

Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejón Interviewee: Noe Paredes, CEO

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C

orporativo UNNE hails back to 1972, with the opening of a building materials warehouse serving mostly all of the companies involved in PEMEX Miguel Hidalgo refinery’s construction, in the city of Tula, Hidalgo.

Soon after the warehouse opens, the materials’ freight operation began, as did other services during the next decades. Up until today the corporation is segmented in four large business units: - Cargo and logistics - Truck maintenance, tire retreading - Fuel and power supply for different trades - Mining (extraction, shipment and sales)

Dicomex

“We are consolidating our existing business lines by creating new business opportunities for each” – Noe Paredes, CEO, Corporativo UNNE 102

October 2014

UNNE’s entire operation involves a network comprised of local businesses, companies known nationwide and global corporations, enabling the company to bring goods from air, land and sea into Mexico’s largest markets, making it seem like shipment’s distance and costs are being reduced.

“One of the facts I’m proudest of was the transition from being a family-run business into a fully-established company in order to partner with global corporations,” says Noe Paredes, CEO for UNNE, and part of the front office since 1992 after completing his education in Business Management, which were followed by a Top Management course.

In recent years, Mexican companies able to

L AT I N A M E R I C A

Key People

Noe Paredes CEO of Corporativo UNNE

keep a sustained growth rate, partnerships and engage in diversification are not a product of casualty. These businesses have been through ups, downs and the unexpected changes of fluctuating economies proper of still-underdevelopment countries: from well-documented booms in certain trades including optimist growth and progress forecasts to crisis, currency w w w. u n n e . c o m . m x

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C O R P O R AT I V O U N N E devaluation and markets’ change of pace. It takes more than just will power or healthy fund reserves for some companies to survive, but traits such as flexibility, adaptation and a cunning ability to spot and take part in new business opportunities are also required.

Services in mines

Most of these qualities have shaped Corporativo UNNE, starting as a retail outlet for construction materials; it didn’t take long for them to start transporting these goods to customers elsewhere and ending up as a very important logistics company in Mexico. “We recently built a terminal port in the state of Hidalgo, a transfer facility to products brought from cargo ports on their way towards large markets,” says the company’s CEO regarding Terminal Intermodal Logistica Hidalgo (TILH) logistics port, a facility to ease transit and paperwork for different products, including some whose origin or final destination is abroad.

“We have had faithful suppliers from day one: they saw our birth, growth and development along with theirs” – Noe Paredes, CEO, Corporativo UNNE 104

October 2014

L AT I N A M E R I C A

Consolidation: base for growth UNNE’s continuous growth is not to be based merely on the acquisition of new units for their cargo services or diversifying into new, previously unexplored ventures, but much rather by focusing in every improvement possible for the existing business units and their procedures in order to bring them to fulfill their potential which, as a result, will naturally bring the need for new transport units as well as operative and office personnel. “We have a future project involving compressed natural gas (CNG), we have a housing construction project pending... we are consolidating the existing mining, construction, energy, cargo and logistics lines by creating new business opportunities for each,� says Paredes.

Mine Xiteje

Competitive transportation

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C O R P O R AT I V O U N N E In fact, there’s also a project which will go beyond plain fuel vending, by obtaining energy from residues to be used for industrial or residential purposes. “The ongoing energy reform in Mexico will create new necessities not only in the energy sector, but in every industry sector in our country,” said Noe Paredes.

Leverage through partnerships

Dual unit

As a way to gain competitiveness in Mexico, UNNE partnered with a global company to offer logistics services, this eased the link between cargo ports and large consumption markets (with

L AT I N A M E R I C A

Mexico City being, basically, the largest in the country) through terminal ports where train freight and land freight meet. “At the end of the day, the purpose is to simplify every procedure for our clients into cost-reducing volumes while having their products close to their marketplace... there lies our leverage,� says Paredes.

Partners for a lifetime One of the most productive partnerships for UNNE in recent years is the one held with HPH (Hutchison Port Holdings), who performed a large investment in the TILH terminal port project.

Maintenance on tractor

Tank UNNE w w w. u n n e . c o m . m x

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C O R P O R AT I V O U N N E

Integral Solutions

There have been other strategic partners during the 40-plus year operation; local land freight companies and banks have placed their trust and resources in UNNE’s hands. “We have had faithful suppliers from day one: they saw our birth, growth and development along with theirs’ in unique synergy,” said UNNE’s CEO. Sustainable energy as part of new ventures The ongoing problems of waste management and groundwater pollution are to be solved with residues being transformed into electric power. Other measure towards reduction of the

Banded

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October 2014

L AT I N A M E R I C A

corporation’s impact on the environment is the transition from diesel into CNG-fueled vehicles; part of UNNE’s companies’ vehicle fleet is being fueled by compressed natural gas already.

Company Information INDUSTRY

Networking for long run operations

Cargo / Logistics

Paredes is positive that the best upcoming opportunities for the corporation will come through the logistics unit, which is to be strengthened and developed to its fullest potential. UNNE’s efforts have produced results as mid and long-term investments; each new venture is sometimes a preceding step towards a larger enterprise and there’s also the adaptation factor when the whole business spectrum outside the corporation is also changing. “During the last couple of years we have experienced delays in a new construction boom all over the country, which may seem to reset during the next two to five years,” says Paredes.

HEADQUARTERS

Tula, Hidalgo, México FOUNDED

1972 EMPLOYEES

1,200 REVENUE

US$900 million

“A new construction boom over the country may seem to reset during the next two to five years” – Noe Paredes, CEO, Corporativo UNNE

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Transport Matte

1 to 100, and Beyond

The transport company that started with a single truck has industry thanks in part to the hard-working family behind it Written by: Kevin Smead

Produced by: Michael Magno

s become a leader in the transport t all.

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C O M PA N Y N A M E

T

ransport Matte started with one truck, purchased by HervĂŠ and Monique Matte in 1951.

They had a contract to transport forest residue to the Donnacona paper mill in Quebec. More than 60 years and 100 trucks later, the company is in its third generation of family ownership and continues to grow.

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How has this family-run business remained strong for more than half a century?

According to owner Melany Matte, the company’s success comes from a number of factors, all stemming from a company culture of hard work.

Like Rings in a Tree In looking at the company’s history,

SECTOR

there are several big milestones, much like the rings of the trees Matte sometimes transports.

In 1955, two more trucks were added to the fleet. However, everything was operated from the Matte home. Monique took care of accounting and dispatch as well as cooking the drivers’ meals they would eat at the family house before

leaving for another trip. Hervé was mostly on the road to find new clients in addition to working on the weekends as master of ceremony to make ends meet.

The company continued to grow in the 1970s, adding more trucks to meet the needs of its customers.

The couple’s children also decided at that time to join the company w w w. t r a n s p o r t m a t t e . c o m

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founded by their parents. However, tragedy struck and in 1981, Hervé died. In wanting to carry on the business, his 4 children took over.

“They had a lot of obstacles to overcome,” Matte said, “but they succeeded because of their great efforts and the company continued to grow.”

During those years, between 1981 and the early 2000s, different companies were formed by family members to meet other needs and comply with regulations of that time. In 2006, all merged together to form Transport Matte Limited.

“Since 2004, I and two of my cousins have been ensuring the continuation of the family

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T R A N S P O R T M AT T E business,” Matte said. “Even with Transport Matte becoming a bigger company—we have 120 employees now—we’re still a family business and our operations reflect that spirit.”

24/7 Service—Literally Transport Matte has not only succeeded because of its work ethic, but also the company’s strong commitment to providing the best service to its customers, every time.

“Our mission is to maintain our

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leading position in the bulk transport of forest residues by meeting the needs of our customers with service that exceed expectations and staying abreast of their specific transportation needs,” Matte said.

The company operates in Quebec, Ontario, and the Canadian Maritimes. They have a diverse fleet of trucks and trailers that serve a number of different industries.

“We have a fleet of 100 trucks and 190 trailers in different regions,” Matte said. “This allows

CANADA

us to quickly serve our customers regardless of their location.”

This commitment to service also includes always being on call when a customer may need something.

“We have good and diversified equipment which allows us to be flexible and have a very short response time,” Matte said. “We’re also open 24 hours a day, 7 days a week, so there’s always someone on the phone who can quickly answer any question or address any problem for the client or the driver.”

In the end, it’s all about doing the best work they can for the customer.

“Service is what matters most to us,” Matte said. “Our team makes all the necessary efforts to make sure the clients always receive the number of loads they ask for and that it’s delivered on time.”

Driving Success While the family plays a major role in the company, its drivers and maintenance crew are equally important. The company takes a very personal approach when it comes to its employees, making its growing business still seem small.

“All of our drivers have their

assigned truck,” Matte explained, “so they don’t need to share it with anyone else.”

Also, drivers are supported by a top-notch maintenance team who are always working to ensure the trucks are cared for and maintenance is preventative rather than reactive.

In addition, the company works to create a culture that people want to be a part of.

“As a family business, we have human management and consider our employees as part of our success,” Matte said. “They know that we’re always there to help them in any way. Even if they have personal problems, we’re always there to listen.”

60 More Years?

In 2011, the company celebrated its 60th anniversary and is continuing to improve and grow, including taking a more high-tech approach to transport.

“We have invested a lot in recent years to use new computer systems to improve our competitiveness and service,” Matte said. “For example, we’re now developing a w w w. t r a n s p o r t m a t t e . c o m

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T R A N S P O R T M AT T E

new dispatch program to meet our specific needs. We’re also finishing installing GPS tracking systems in every truck so our dispatchers can know at all times where our trucks are and better distribute them on the territory we serve in order to respond more effectively to our customers.”

Adaptation is key, as the market is quite a difficult one to be in.

However, Matte sees that more as a chance to excel rather than be hindered.

“The wood market that we’re in is not growing—it’s actually been going down since the crisis in 118

October 2014

2008,” she explained. “It started with a wood crisis which was followed up by the financial crisis. This challenges us to innovate more and diversify our operations in order to maintain our position on the market.”

The company is constantly looking for the best employees and to seize opportunities that could lead to furthering its growth. In the end, though, it all comes back to the family.

“The hard work of all our family members has made us what we are today,” Matte said. “Our family has always considered the well-being of

CANADA

Company Information INDUSTRY

Transportation HEADQUARTERS

Quebec, Canada FOUNDED

1951 EMPLOYEES

120

the company, its clients, and employees before themselves. We’re all very committed to the company and we put all necessary efforts in place to ensure its longevity.”

In pondering longevity, one might wonder what Transport Matte might look like in another 60 years. Melany Matte believes the company has found new life and stands at the beginning of a bright future.

“Right now, we’re in the third generation of the company’s business,” she said. “I would say it’s bringing a breath of fresh air to everything. We bring new ideas and solutions to improve our operations and service. We’re taking the company and hoping to continue it for another 60 years.”

For a company where one truck has become 100, there’s no telling what 100 might become.

REVENUE

20 Million

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Bay Ship & Yacht

Sailing the Seas of Success

From battleships to superyachts, this company has worked remain grounded in the belief of offering the best custome staff’s well-being Written by: Stephanie C. Ocano

Produced by: Jason Wright

d on ships of all sizes. But its roots er satisfaction while ensuring their

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San miguel

S

an Francisco Bay is a mecca for sailors and home to a major port. From small boats to military ships, these waters have seen it all. One company, who began by repairing wooden ships in the late ‘70s, has grown to become one of the most recognized build-and-repair names within the commercial vessel 122

October 2014

industry: Bay Ship & Yacht Co. In 1977, Bill Elliot began Bay Ship with the intent of working on wooden ships, his primary passion. As opportunities arose in the commercial and military vessel market, Elliot decided to fuel that passion and opened a shipyard on San Francisco Bay in 1994 and has

USA

grown and developed it into the “21st Century Shipyard”.

David Ashton, Sales Manager at Bay Ship, began working at the company in 2008 and has since seen the business steadily increase.

“It’s been very fun and exciting to be a part of a company that has undergone so many significant and positive changes. [Bay Ship] has embarked on [various] programs because it believes so deeply in our mission statement of ‘Absolute Customer Satisfaction,’” said Ashton.

The programs Ashton referred to include the investment in a new drydock; expansion of the machine, fabrication, and hydraulic shops; and the development of a new quality management system to ensure continuous improvement.

“For nearly two years [Bay Ship] has invested in a Quality Management System (QMS),” said Ashton. “The QMS is geared towards business improvements, but it’s most significant contribution is ensuring that our business processes are such that we can ensure we provide the highest quality of work and work fulfillment to our customers; while providing the safest environment for our employees.”

The QMS system ensures procedural fulfillment through a series of checks and accountability.

It also exploits problematic areas to determine the root causes and the corrections thereof.

“Safety starts with understanding the scope of work and planning for it,” added Ashton. “Our culture that we have developed at [Bay Ship] is 3Safe-Conscious and such that any person, anywhere in Environmentally-Friendly the company, can stop a project if Bay Ship’s singular priority is safety they feel that an unsafe practice is and protection of our customers’ occurring; so we spend lots of time vessels. By ensuring a safe ensuring that it never gets to that.” workplace, Bay Ship can ensure that Beyond safety, Bay Ship makes projects are conducted efficiently certain to take care of the land and and to the letter of the contract. waters they work on, as well. w w w. b a y-ship.com

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large or Small projeCtS, safety is our #1 priority.

Since 2009, Champion Scaffold Services has equipped Bay Area homeowners, commercial general contractors, and businesses with superior products and exemplary services. Priding ourselves on outstanding customer service and high quality production, our staff, management, and qualified estimators will be readily available to aid you from initial inquiry to dismantle.

Our goal is to establish a beneficial relationship with our customers in order to produce a safe, reliable infrastructure, allowing your project to proceed without delay.

CommerCial, reSidential and induStrial projeCtS | inStallation and diSmantle Stair towerS | Hill SideS | mobile towerS | large SHipS 1563 SOlanO ave. BOx #332 • Berkeley, Ca. 94707 510-788-4731 • Fax: 510-327-0301 • www.championscaffold.com

B AY S H I P & YA C H T

USA

“[Bay Ship] is located on the San Francisco Bay and as such we are extremely sensitive to ensuring that neither the air, land or water is polluted,” said Ashton. “[Bay Ship] goes through great detail of ensure that we are as environmentally sensitive as we can be, including environmental containment and shrouding of vessels during certain operations; the recycling of petroleum waste products; the recycling of various metals; and our waste stream is segregated to maximize environmental sensitivity.”

SUPPLIER PROFILE

Employing the Right People “Recruiting of smart people to carry out the work is very important if we are to remain a cutting-edge 21st century shipyard,” says Ashton.

As a complex organization that requires skilled individuals from project to business managers, Bay Ship has developed its own extensive training program for new hires.

“It’s quite unique to our shipyard,” said Ashton. “We work in multiple disciplines and each discipline requires its own training … We bring in outside vendors, safety consultants, and others to conduct training of our workforce for specific

CHAMPION SCAFFOLD SERVICES

Here at Champion Scaffold Services we take care of every clients unique needs and projects. Our staff is efficient, professional and courteous. One of goals here is to make sure you feel good about your decision to use our services, so we work hard for you. We perfect and map out each and every project’s details, and complete things in a timely manner.You can rest assured you are using the best of the best!

Website: www.championscaffold.com

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B AY S H I P & YA C H T

actions, but have an extensive in-house training staff for our routine education.”

“To my knowledge, the training program at [Bay Ship] is unique among all shipyards,” added Ashton. “Where other shipyards have some training, our training is so extensive it has earned a renowned reputation worldwide.”

Bay Ship’s staff is proof to the theory that with the right people, you 126

October 2014

can reach success anywhere.

“The most important aspect of managing a workforce is empowering them to be a part of their own future,” said Ashton.

Looking to the Horizon Bay Ship & Yacht Co. has worked on some impressive projects. From the legendary U.S. Navy battleship USS Iowa to the presidential yacht the Potomac, Bay Ship is anchored

USA

Company Information INDUSTRY

Repairing, building of commercial and military vessels and superyachts HEADQUARTERS

Alameda, CA FOUNDED

1977 EMPLOYEES

201-500 REVENUE

+1M

in its mission of delivering top quality work and customer satisfaction. “[The year] 2015 should be a great year for [Bay Ship] and our customers,” said Ashton.

“Every time we re-invest in our company, our customers benefit from it. We continually try to improve because it’s the right thing to do for our employees and our customers.”

One thing can be known for sure about Bay Ship’s future, this company is one that is setting its sails towards a grand voyage.

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Comprehensive Logistic

Masters of the Supply Chain

The 111-year-old company has certainly evolved over time, business when it comes to supply chain management.

Written by: Kevin Smead

Produced by: Jason Wright

cs

n

, but it’s still the best is the

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Tonkin image / Shutterstock.com

W

hile Comprehensive Logistics Co. Inc. (CLI) is more than 100 years old, they’re anything but “old school.�

CLI is an award-winning thirdparty logistics provider that gives businesses a lean and flexible supply chain, allowing them to manage the tumultuous world that is modern business.

The company was founded in 1903 130

October 2014

by J.V. McNicholas, who started by handling general transport with a horse and cart. With the advent of new technologies, the business expanded and took on several different forms. CLI in its modern form was came to be in 1995 and continues to provide the high-quality logistics service its customers continue to expect.

CLI primarily focuses on the needs

of manufacturers, distributors, and shippers. They serve needs from the most basic, to the highly complex. The company is proud of its flexibility, citing its lean size and process-driven culture as main factors in its ability to modify and adapt to meet ever changing needs.

Keeping costs low is also a major focus at CLI. The company is committed to Continuous

Improvement and operates a Change Management Request (CMR) process, allowing for streamlined and effective improvements.

CLI also puts the client in the driver seat, affording them full transparency and control of the supply chain. Using an online tool, CLI allows its clients to access and manage their end-to-end w w w. c o m p l o g . c o m

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Time to go Lean.

P O S I T I V E - T R A C K I N G

Over 27 years ago, Peregrine, Inc. invented the Quad-Steer Tracker™ material-handling trailer. There is still only one Quad-Steer Tracker™.

We have produced several types of trailers and accessories to fit thousands of applications. We do the dirty work and provide custom engineering at no cost to best fit your application while maintaining the highest standards for safety and ergonomics. Since cost drives your business, put low maintenance and product life expectancy on your bottom line.

T R A I L E R S

8 0 0 - 7 7 7 - 3 4 3 3 | w w w. p e re g r i n e - i n c . c o m 5301 North 57th Street Suite 102 | Lincoln, NE 68507-3164 | Phone: (402) 466-4011 | Fax: (402) 466-1639

COMPREHENSIVE LOGISTICS

USA

Company Information

supply chain, ensuring everything is running as expected. Also, clients are able to fully view and understand everything from CLI’s end as well, giving customers the highest level of confidence that there will be no surprises, monetary or otherwise.

With its 99.97% inventory accuracy rate, 99.4% on-time delivery rate, and less than five defects per million, CLI is one of the best in the business when it comes to logistics and supply chain management.

While these numbers are certainly impressive, stay tuned for our feature next month where we’ll break down what makes Comprehensive Logistics so successful.

Comprehensive Logistics Co. Inc. (CLI) gives you the lean, flexible supply chain you need to compete in today’s complex, unpredictable business environment. We are a premier, non-assetbased provider of engineered logistics services for complex supply chains. As an award-winning thirdparty logistics provider, we are experienced in exceeding the most stringent logistics requirements.

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Servindo bem “Serving well, always” As a leader in the retail distribution segment, the company covers 100% of the domestic territory and is a benchmark in the country.

Written by Flávia Brancato | Produced by Taybele Piven

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M a r t i n s Ata c a d o

T First warehouse facade Borges & Martins

Martins fleet of trucks from early 1970s

“The differential is that we work with specific solutions for each type of business and needs of the client” – Walter Faria, CEO

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October 2014

he capacity to adjust itself to the market, innovation and professionalism are the praised and proudly acknowledged features that help further strengthen the relations of Martins Atacado with its business partners and collaborators. Not many would have guessed over a century ago, that a small convenience store barely bigger than 100m^2 would become a benchmark in the Brazilian market.

As a leader in the bulk distributor segment, Martins Atacado’s experience carries close to 14 thousand consumer products to small retailers, being present in 100% of Brazilian municipalities. To serve its 350 thousand active clients, a fleet of more than 1,150 owned vehicles travel close to 40 million kilometers per year. For the success of such operations, the company relies on the professionalism and dedication of more than 5 thousand collaborators as well as 4 thousand professionals in the commercial area, including salespeople, independent commercial representatives and telemarketers.

Among the main missions of Martins Atacado is the focus on supporting, developing and offering opportunities for small entrepreneurs to realize their dreams, keep excellent relations with commercial partners, collaborators and the community, while establishing its brand with an ethical and responsible behavior, and basing every action strategy on values, responsibility and citizenship.

M a r t i n s Ata c a d o

Brazil

Key People The company is managed by a Board of Directors composed of shareholders and external counselors. The management is done by a CEO, Walter Faria, and a group of executives constituted by Directors in the sectors of purchasing, sales, data processing, human development and storage, other channels (telemarketing, e-commerce), financial, Smart supermarkets and logistics.

A modern system of radio frequency to control Martins’ stock

Strategies and Services Martins Atacado upholds a mentality that supports the development of the Brazilian small retailer, through the best solutions in distribution, management, technology, and training and logistics. According to the CEO of Martins Atacado, Walter Domingues Faria, “the differential is that we work with specific solutions for each type of business and needs of the client. Beyond that, together with the strategy, sits innovation, which indeed is one of our values that leads to growth in the results.�

Additionally, the company offers business

Alair Martins Board of Directors President and founder of Grupo Martins

Walter Faria Jr. CEO of Grupo Martins

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plans to Brazilian retailers, providing opportunities to improve product category management through a commercial strategy and through excellent relations with the industry in general. From its foundation, Martins uses the experience accumulated in the market throughout the years to teach small and medium-sized retailers how to better understand the consumer and their business. Faria explains that “trainings go from how to present products in the displays and how to deal with the consumer, to how to do business accounting.�

One of the examples can be observed in the courses offered through the Martins do Varejo University (UMV). Deemed as a center of excellence in the development and application of technology focused on the growth of the retail industry, the projects offered by UMV apply management concepts focused on marketing and merchandising practices. In-class and distant courses are constantly offered, as well as technical seminars, in addition to store modernizing projects for small and medium-sized

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This recognition Este reconhecimento also deserves também amerece tailored uma celebration. comemoração sob medida.

MARTINS, thank obrigado youpor fordepositar putting sotanta much confiança trust in thisnessa tailor-made parceriapartnership. feita sob medida.

Respeite os limites de velocidade.

MAN Latin America, manufacturer fabricante dosofCaminhões Volkswagen Trucks e Ônibus and Volkswagen Buses andeMAN Caminhões Trucks. MAN.

www.man-la.com

Trucks Buses

M a r t i n s Ata c a d o

Brazil

retailers, and to company clients. Since 1990, the Martins do Varejo University has already trained close to 300,000 people and modernized more than 15,000 stores throughout the country.

The regional division of Martins also allowed the company to utilize the concept of Management by Category, which consists of organizing and managing the correct supply of products at the point of purchase, according to the needs of the consumer. “We started acting in a segmented manner, with a more specialized sales team that thinks about the management of product categories from the supplier up to the sale by our client to the end consumer,” Faria says.

Since such concepts can be applied in all

UMV training for small business

Supplyer profile

MAN Latin America Manufacturer of Volkswagen and MAN trucks and buses, MAN Latin America is the largest manufacturer of trucks and second largest manufacturer of buses in South America.

In 2013, the company assured its 11th consecutive year of leadership in truck sales in Brazil, position also guaranteed in the first half of 2014, according to Anfavea.

It is also the major export of such product. Customers in more than 30 countries in two continents benefit from MAN Latin America’s philosophy to offer tailor-made products.

With resellers and importers located strategically through Latin America and Africa, MAN Latin America offers fleet owners and autonomous importers complete transport solutions that do not sum up only to vehicle sales, since, just as the sturdiness of its products, the company’s post-sale services is renowned.

www.man-la.com

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TELA SUPER AMOLED

ULTRAFINO E LEVE

MULTIPOSSIBILIDADES

CONTEÚDOS

EXPERIÊNCIA EM ALTA DEFINIÇÃO 4 VEZES HD QUE GARANTE CORES MAIS VIVAS E DEFINIDAS.

DESIGN E ESTILO AONDE QUER QUE VOCÊ VÁ.

ACESSE VÁRIOS APLICATIVOS NA MESMA TELA.

MAIS DE R$ 3.000 EM CONTEÚDOS.*

Imagens meramente ilustrativas.*Saiba mais em www.samsung.com.br/conteudos.

M a r t i n s Ata c a d o

Brazil

types of businesses, it has helped transform the micro and small retailer into a profitable and sustainable business. In addition to that, the project as a whole supports such retailers from the ambiance of the store and visual communication, to the development of services for better customer satisfaction.

Technology Continuing with innovation, Martins was a pioneer in the use of technology in the distributor retailer segment, using informatics in its internal management processes and in the automation of its sales force. For over a decade, the Martins group adopted demand forecast models, analytics intelligence and statistical modeling, and once completing the mobility of its salespersons, it implemented operations with netbooks, tablets, mobile phone and smartphones.

In order to act in synergy a true “industry of solutions for retail market� was created. Martins Integrated Systems (Sistema Integrado Martins

Supplyer profile

about Samsung in Brazil Samsung electronics of Amazon has has two industrial complexes, located in Manaus (AM) and Campinas (SP). The Company currently count with more than 12 thousand employees and it is present in the segments of smartphones, tablets, audio and video products (TV, DVD, Blu-Ray, home theater, mini systems e smart cameras), appliances, air conditioning, monitors, notebooks and printing solutions. In Brazil since 1986, Samsung continues to invest in Research and Development, as well as in modern and efficient production structures.

www.samsung.com

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– SIM) enables the development of the whole consumption chain. “Through SIM, we are capable of caring for the needs of the industry, its clients and its consumers in a cycle. We created a bank tasked with offering financial solutions (Tribanco), a cards company for consumer credit solutions (Tricard), an insurance broker, an e-commerce portal, and a telephone sales center (Telesales), among others,” Faria proudly says. In addition to that, Regional Business Units were established in strategic areas of the country, focused on facilitating and perfecting the rendering of services to clients.

Today, the integration of informatics systems of the companies in sales, storage, distribution and trace of the fleet is so synergic that it is possible

Supplyer profile

Martins’ sales team have access to tablets in their rotine

Mercedes-Benz Brazil

Mercedes-Benz is the largest truck and bus manufacturer in South America. It started operating in São Bernardo do Campo, state of São Paulo, Brazil in 1956. Since then, over two million commercial vehicles have come out of the production line straight onto the roads of Brazil and over 50 countries to which Mercedes-Benz exports its products.

Mercedes-Benz makes the engines, gearboxes and shafts used in its vehicles. The company has plants dedicated to the production of trucks (Atron, Atego and Axor), bus chassis and aggregates in São Bernardo do Campo (SP), trucks (Accelo and Actros) in Juiz de Fora (MG), and also a Parts Distributor and a Training Center in Campinas (SP).

www.mercedes-benz.com.br

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Top Level Order Picking.

The new dimension in order picking - the EK-X.

www.still.co.uk/ek-x

It is the king of order picking and the star in any narrow aisle warehouse: The vertical order picker EK-X sets new standards in terms of performance, reach height, residual capacity and ergonomics. With driving speeds up to 13 km/h and lift speeds of up to 0.4 m/s, the EK-X enters into new dimensions of efficient turnaround in warehousing. At a maximum reach height of outstanding 12 meters the spacious, shock absorbing cabin also leaves the driver with more freedom of movement than ever before.

first in intralogistics

M a r t i n s Ata c a d o

Brazil

Technology is present at all times in the operation

to carry out 3 trillion information combinations, using them to increase the productivity and the competitiveness of the company. It is a common opinion among suppliers, mostly multi-national companies, that the application of technology in the logistics of Martins has no equivalent in the market. In 2009, the Gartner Group – one of the biggest business consulting firms in the world— acknowledged Martins systems as one of the best BI implementations (Business Intelligence) globally. In the end, the action philosophy of the Martins companies is to integrate production and consumption through a quality relations system that trains its members to cooperate and compete, acting according to sustainability principles, and

Martins is one of the few companies in Brazil to have their own bank, Tribanco

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M a r t i n s Ata c a d o

IAMAR develops programs to the community

generating consistent results for all stakeholders.

Instituto Alair Martins (IAMAR) Created in 2005, IAMAR, through the ZAPe – Entrepreneurship Virtues Program, acts jointly with youngsters and teenagers, developing their potential to build visions of the future and turn them into reality through Education for Entrepreneurship. This way, it contributes to their growth in the personal, social and product fields, as well as in the promotion of an environmental preservation culture. IAMAR has strategic partnerships with Instituto Ayrton Senna and Junio Achievement, both with national coverage. It foments volunteering with its collaborators through the Vem Ser program. All these projects and programs arise from the values of Alair Martins himself, which are absorbed by the collaborators of the company: 148

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Brazil

humility, justice, loyalty, innovation, discipline, integrity, love for what they do, and the idea that together, everyone is worth more. These values are passed onto those who relate to the group and are almost a religion among its collaborators.

Highlights of the Journey 1994 - In addition to being among the 500 Best and Greatest Companies in Brazil (Exame magazine), Martins hits the benchmark of R$ 1 thousand million invoicing.

URN Camaรงari (BA) warehouse w w w. m a r t i n s . c o m . b r

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M a r t i n s Ata c a d o anuncio_prazeres_da_mesa2.pdf

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COPOS E TAÇAS NADIR, A MELHOR COMPANHIA PARA A SUA CERVEJA.

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www.nadirfigueiredo.com.br facebook.com/nadirfigueiredo

eFĂĄcil is a communication tool be

1996 - Opening of the new DI-3 Storage Module, with advanced automation automated operation system and capacity for 26 thousand pallet positions.

2000 - The Smart Network is opened, to promote the profitable development of the small and medium-sized retailer.

2002 - eFacil, the Martins e-commerce (B2C) site, is up. Tricard is created, a company focused on the development of credit cards and services for consumers.

2005 - Instituto Alair Martins (IAMAR) is created to develop the entrepreneurial potential in youngsters through social-environmental and 150

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Brazil

Company Information Industry

Supply Chain headquarters

Uberlândia, Minas Gerais founded

1953 employees

5.300 products/ services

etween Martins and customers

cultural initiatives.

2010 - Three more Regional Business Units (URNs) are inaugurated: Jaboatão dos Guararapes (PE), Camaçari (BA) and Ananindeua (PA), totalling five units with João Pessoa (PB) and Manaus (AM).

Wholesale distributor – food, electronics, beauty, cleaning, construction material, IT. revenue

US$ 2 billion Management

Walter Faria, CEO

2013 - Martins closes year 2012 with an 11% growth and revenues amounting to R$ 4.4 thousand millions. It moves towards its 60 years with a record: R$ 2 thousand millions billing during the first semester, the greatest ever. w w w. m a r t i n s . c o m . b r

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E20001-F150-M117-V1-7600

Productive plants don’t have to run around the clock, they just have to run efficiently.

Realize the potential of energy-efficient solutions more quickly siemens.com/energy-efficient-production

More than ever before, the key to efficient production lies in implementing energy-saving measures. These range from the use of energy-efficient drives to the shutdown of complex production processes. In the past, this shutdown had to be done manually, making it very time-consuming. Today, a standardized data interface ensures that power consumers can be

switched off centrally in a coordinated and risk-free manner, thus enabling plant operators to achieve energy savings of up to 80 percent during production pauses. We would be delighted to provide you with information about our portfolio of energy-efficient products, solutions and service, which will enable you to quickly achieve lasting gains in efficiency.

Answers for industry.