Global Supply Chain December 2019 Issue by GLOBAL SUPPLY CHAIN

December 2019 Issue 65

ENHANCING THE BUSINESS OF LOGISTICS

UAE Aviation sector flying high New plane orders provides aviation industry momentum

Safety at Sea

Tristarâ&#x20AC;&#x2122;s debut Conference

Saudi Logistics Hub

Redrawing the landscape

Landmark Distribution Centre A sneak peak

TURKISH CARGO WEB PORTAL CONTINUES TO MAKE YOUR BUSINESS EASIER WITH A NEW NAME:

turkishcargo.com

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



Reaching out for the skies and the stars SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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

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The successful and lucrative outcome for the recently concluded Dubai Airshow 2019 is testimony not only for the aviation-related stratospheric ambitions of the UAE but also its spatial goals. The Civil Aviation industry in the UAE is cruising high and holding up well given the high-profile and multi- billion US$ dollar deals collectively signed by UAE carriers Emirates, Etihad and Air Arabia at this mega event. It is also heartening to note that aircraft accessories and supplies business is also on a roll for Al Ain-based Strata Manufacturing, wholly owned and promoted by Mubadala Investments, an integral part of the Abu Dhabi Sovereign Wealth Fund. Strata Manufacturing was established in 2009 to meet the demands of the 21st century aerospace industry, Strata was created through the formation of strategic partnerships with world-class aircraft manufacturers, such as Airbus, Boeing and Leonardo Aero-structures Division of Italy among several other prominent, premium names in the global aerospace and aircraft industry. With the advent into 2020 now only a short time away, the logistics sector is demonstrating signs of green shoots and a new leash of life. The recent inauguration of a massive US$ 273 million (AED one billion) Distribution and Fullfillment Centre in JAFZA by mega retail conglomerate—the Dubaiheadquartered Landmark Group, is evidence of the rebound and the gaining of momentum by the industry. For other things more altruistic and humanitarian, the Tristar Group recently hosted its inaugural ‘Safety at Sea’ annual Conference in Dubai. The theme and thrust of the wellattended assembly of the sea-faring and maritime community were issues hitherto relegated to the back burner that have been now being brought to the fore. The prime among these was the psychological and mental state and well being of seafarers, the backbone of the maritime trade economy. This was discussed at great length by experts and specialists and relayed live to trainee cadets in Mumbai and Manila. The close of the year and hope for the landmark 2020, which will soon be upon us, brings renewed hope and expectation for the logistics and supply chain industry in the UAE. The Expo 2020 will be the stellar event of the coming year and will no doubt bring new opportunities and business cheer in its wake. Enjoy the read!

Malcolm Dias Editor malcolm@signaturemediame.com

DECEMBER 2019 3

December 2019 Issue 65 September 2019 Issue 62

ENHANCING THE BUSINESS OF LOGISTICS

06 NEWS 20 Dubai Airshow 2019 One of the biggest air-shows in the world concluded recently to much acclaim and business optimism.

26 Safety at Sea The Tristar Group hosted the debut ‘Safety at Sea’ Conference with an emphasis and priority on the mental state of stressed seafarers.

30 UNIDO Meet The historic Abu Dhabi declaration marks a new era for global private sector alliances.

36 Pedersen & Partners Brian Cartwright, the Dubai-based Client Partner at Pedersen & Partners shares his insights on career opportunities in the regional logistics sector.

40 Etihad Cargo-AUH Abu Dhabi Airports and Etihad Cargo set to transform the Emirate’s cargo and logistics infrastructure

46 New Distribution Centre The Landmark Group has opened a new US$ 273mn Distribution Centre in JAFZA.

48 Dubai Metro

Dubai Metro reviews its services and examines challenges ahead.

50 DP World What does golf and new technologies have in common? DP World effectively reconciles the two.

31 SOHAR Celebrations

42 Abu Dhabi Airports (ADAC)

Oman’s leading port and freezone recently commemorated its 15th Anniversary.

Abu Dhabi Airports has awarded contract for development of lounge at Midfield Terminal Building

Our regular contributor analyses and tackles inventory velocity and yield maximisation.

32 Saudi Logistics Hub

44 Future Mobility

58 Epicor

The Kingdom is leveraging its economic clout to foster a new logistics order.

A recently concluded conference in Dubai examines future transportation trends.

Epicor’s Andy Coussins examines digital transformation in the logistics and supply chain sectors.

4 DECEMBER 2019

54 Opinion Piece

You wouldn’t accept complex booking in a restaurant. So why do it in shipping? Introducing Maersk Spot – our simplified booking tool to improve the efficiency and predictability in your supply chain. With Maersk Spot, you get Loading guarantee

Fixed price

Compensation if in a rare case rolled

Turkish Cargo expands the ‘Pharma Corridor’ on its growing flight network n Turkish Cargo, one of the fastest growing global air cargo brands has expanded the carriage of pharmaceuticals between destinations certified by the global aviation authorities. The successful brand has created a pharma corridor between its 400 stations by carrying pharmaceuticals in important and certified destinations such as Mumbai, Brussels, Istanbul, Singapore, Dubai, Basel, London, and Amsterdam. “As Turkish Cargo, we carry out the pharmaceutical transports from Atatürk and Istanbul Airports that have been certified by the global air cargo authorities and hold the IATA CEIV certificate within the cold chain integrity. While maintaining our successful Dual Hub operations, we carry out the land transports between two airports by using active temperature-controlled vehicles that hold all the necessary international certificates to preserve the cold chain

integrity,” affirmed Turhan Ozen, Chief Cargo Officer, Turkish Cargo. Operating in 15 stations that hold the IATA CEIV (Center of Excellence for Independent Validators) certificate, Turkish Cargo also has completed the IATA CEIV Pharma certificate renewal process for Atatürk Airport and has qualified for the same certificate for Istanbul Airport (IST) now as well. The global air cargo brand, which serves in 14 stations that hold the EU’s Good Distribution Practice certificate, also carries out its pharmaceutical transport operations in 40 stations that hold QEP (Qualified Envirotainer Provider) Certificate and ensures active temperature control between destinations that are thousands of kilometers far from each other. Maintaining its operations in compliance with the global air cargo standards in 126 countries of the world, Turkish Cargo

A Turkısh

7F aircraft

Cargo B77

continues to offer active and passive solutions for medicine consignments through its storage areas within the temperature range of -20/+25° C that meet high quality standards along with temperature-controlled wide body and cargo aircraft. Covering the world with its wide flight network comprising over 300 stations with 88 of them being direct cargo destinations, Turkish Cargo said that the carrier continues to be a preferred brand in air cargo transportation sector by ensuring a sustainable growth with its infrastructure, operational capabilities, fleet, and specialist teams.

Tristar Group feted at the ‘Golden Peacock Global Awards for Sustainability’ n Tristar Group announced it has been awarded the ‘Special Commendation’ for the ‘Golden Peacock Global Awards for Sustainability–2019’. The Award recognises Tristar’s commitment to achieving leadership in sustainability and its dedication to managing the business to the highest health, safety, environmental and compliance standards. The Golden Peacock Award for Sustainability (GPGAS) commends companies pioneering internal initiatives promoting sustainable development. The awards use meticulously defined and transparent selection criteria, and honors are determined by a highly elaborate and independent assessment process. “Tristar Group is delighted to have been awarded the Special Commendation for the Golden Peacock Global Award for Sustainability. We have always been devoted to holding ourselves to the highest sustainability standards, and this is a commitment we uphold wherever we operate,” remarked Eugene Mayne, Group CEO, Tristar. The Golden Peacock Awards, instituted by the Institute of Directors, India in 1991 are regarded as a benchmark of global corporate excellence. The awards celebrate the companies leading in the areas of leadership, corporate governance and sustainability, incentivise companies to improve overall performance standards and recognise the achievements of the best performing organisations. The awards presentation took place recently at The Montcalm Hotel in London as part of the Institute of Directors, India’s Annual London Global Convention. Earlier he gave a Special Address at the convention opening held at the House of Lords. 6 DECemBER 2019

Tristar Group CEO Eugene Mayne (3rd from left) with officials from the Institute of Directors, India He was also a speaker at the plenary session on sustainability at the same occasion where he joined a panel of industry leaders who discussed the importance of sustainability in relation to the 17 UN Sustainable Development Goals (SDGs).

Sanad and Emirates sign MoU at Dubai Airshow

Strata and Spain’s GAZC in Supply Chain engagement

Sanad and Emirates officials sign MoU during the Dubai Airshow 2019.

n Sanad Aerotech (Sanad), a wholly owned subsidiary of Mubadala Investment Company (Mubadala) and a leading provider of aircraft engine Maintenance, Repair and Overhaul (MRO) solutions, has signed a landmark Memorandum of Understanding (MoU) with Emirates Airlines, through its leading aircraft engine MRO division, Emirates Engine Maintenance Centre (EEMC). The signing between two of the UAE’s aerospace giants, agreed during the Dubai Airshow 2019, sets a new milestone in the UAE’s future MRO landscape by establishing collaborative groundwork for the delivery of world-class MRO services through shared knowledge and a strong heritage in aviation excellence. Sanad and EEMC have a combined experience of over 60 years, and the collaboration will create aero-engine centres of excellence, dedicated repair and training capabilities, and knowledge sharing and technology collaboration. “This marks the beginning of a productive collaboration between two of the UAE’s largest homegrown aviation and aerospace companies that can turn the nation’s aspirations of a global-leading UAE-based MRO hub into reality,” commented Mansoor Janahi, CEO, Sanad Aerotech. Within a state-of-the-art maintenance facility at Al Warsan in Dubai, EEMC provides dedicated aircraft engine MRO services to the Emirates fleet. It currently delivers MRO capacity for GE 90, GP 7200, with a round-theclock service backed by a qualified and highly competent workforce. “This agreement combines the expertise of two leaders in the UAE’s MRO sector,” remarked Mohammed Jaffar Nasser, Emirates’ Senior VP, Engineering Maintenance. Sanad has built strategic partnerships with leading international OEMs including Rolls Royce, GE, and International Aero Engines (IAE).

Ismail Abdulla and Alfonso Delgado Recio at the deal signing ceremony.

n Strata Manufacturing (Strata), the advanced composite aero structures manufacturing company wholly owned by Mubadala Investment Company, has signed a contract with Grupo Aeronáutico Zona Centro (GAZC) at the recently concluded Dubai Airshow 2019 to establish a competitive and lean supply chain network. Under the five-year agreement, GAZC, the leading Spanish manufacturer of machined detail parts for major OEMs and aerospace industry heavyweights, will be Strata’s strategic supplier of fixed metallic ‘computer numerical control’ (CNC) machined detail aircraft parts until 2025. Strata will receive its first GAZC shipment at its Nibras Al Ain Aerospace Park production facility later this year. “Building strategic relationships to leverage the very specific expertise of well-established players across the global supply chain of aero-structure components and establishing Strata’s own supply network are key factors in Strata’s immediate and long-term strategy,” observed Ismail Ali Abdulla, CEO, Strata. Strata’s alignment with GAZC represents the UAE manufacturing pioneer’s latest initiative in outsourcing sub-tier business functions, specifically best-cost procurement partnerships for aircraft parts that are vital elements of Strata-manufactured composite aero-structure components. “This agreement enables us to further build our business relationship and provides us a firm foundation for future collaboration essential in order to meet the growing needs and expectations of a high regulated aerospace sector,” commented Alfonso Delgado Recio, CEO, GAZC. Strata works with leading aircraft manufacturers, including Airbus, Boeing, Leonardo (Italy), and Pilatus (Switzerland). Based at Nibras Al Ain Aerospace Park, Strata supports the development of a leading aerospace hub in Abu Dhabi as part of the emirate’s economic diversification initiatives.

DECEMBER 2019 7

Saudia Cargo transports Formula-E cars from Europe to Kingdom n Saudia Cargo has for the second year in a row transported racing cars for the recently concluded World Championship Formula-E cars at the historical city of Diriyah, outside the capital Riyadh. The consignment comprised 67 cars in four shipments totaling 375 tons. The Formula-E cars departed from Milano, Italy and Doncaster, United Kingdom, to King Khalid International Airport, Riyadh. “All Formula-E cars have successfully been transported, Saudia Cargo team exercised extreme care in the groundhandling operations, and coordinated the entire process with the organizers of the Championship,” noted Abdulrahman Al-Mubarak, Saudia Cargo’s Chief Commercial Officer. “Saudia Cargo is a major supporter of all global events taking place across the Kingdom and always mobilizes its logistics capabilities to ensure the success of these events. We have transported all types of equipment and spare parts for major events around the country related to sports, entertainment, cultural and social,”Al-Mubarak stressed. In 2019 alone, hundreds of tons of WWE equipment, Cirque Du Soleil, artworks of international artist Leonardo Da Vinci, as well as the Discovery Exhibition space parts were transported by the state-owned airline during the Jeddah and Riyadh culture and arts seasons. Saudia Cargo’s network covers more than 900 global destinations in more than 175 countries, a proud SkyTeam Cargo Alliance member, having logistical capabilities and a freighter fleet.

Formula-E racing cars were transported to the Kingdom from Europe and return on Saudia Cargo.

8 DECemBER 2019

LogiPoint and NAQEL sign landmark agreement to establish the Kingdom’s first bonded express facility

LogiPoint and NAQEL Express CEOs sign the agreemnent in the presence of officials from Jeddah Islamic Port and Saudi Customs.

n LogiPoint, the Kingdom’s premier logistics parks developers and operators, has signed an agreement with NAQEL Express; a subsidiary of Saudi Post and the largest last mile delivery provider in the country, to establish the first Bonded Express facility at LogiPoint Bonded and Re-Export Zone at Jeddah Islamic Port and will be dedicated to e-commerce operations. In line with Saudi Vision 2030 and the National Industrial Development and Logistics Program (NDLIP), this facility will be the first of its kind at a Saudi Port dedicated to the clearance and fulfillment of express and e-commerce shipments. Once completed the facility can handle inbound and outbound express shipments by sea, air and land transportation “The logistics sector in the Kingdom is transforming rapidly, and LogiPoint is the Kingdom’s torch-bearer in achieving global competitive standards and in adapting a customer-focused approach,” remarked Farooq Shaikh, CEO, LogiPoint. “Signing of a long-term agreement with NAQEL Express to establish the very first bonded facility dedicated to e-commerce operations is testimony to the trust and confidence our customers pose in us for not only providing them with world-class logistics facilities, but also the eco-system that facilitates their service offerings,” he added. “With this expansion, NAQEL Express will further strengthen its service offering to e-retailers, on-line platforms and exporting companies around the world aiming to penetrate their target markets in Saudi Arabia and rest of the Middle East,” commented Mohammed Al Bayati, CEO, NAQEL Express. The agreement was officiated in the presence of Captain Abdullah Al Zamee, Director General, Jeddah Islamic Port and Mohammed Abdullah, Director General, Jeddah Islamic Seaport Customs.

Etihad Cargo launches new advanced Cargo Control Centre n Etihad Cargo has taken its data-driven digitalization journey another step forward with the launch of its state-of-the-art Cargo Control Centre (CCC) at its head office in Abu Dhabi. Launching a year after Etihad Cargo embarked on a far-reaching digital transformation strategy, the CCC today becomes the ‘nerve centre’ for real-time monitoring, tracking and active management of all shipments, flights, and UAE road feeder services in an effort to enhance Etihad Cargo’s ‘delivery as planned’ or DAP promise to its customers. “As our latest digitalization initiative, the Cargo Control Centre shifts our modus-operandi from a historically reactive model, to a truly proactive service delivery machine that strives to maintain the service delivery promise and support customers’ needs every step of their shipment journey,”said Andre Blech, Head of Operations and Delivery, Etihad Cargo. The centre’s core technology platform builds on Etihad Cargo’s booking and reservation system SPRINT by introducing key ‘alwayson’ tracking functionalities. These include shipment planning and performance monitoring across its five dedicated freighter aircraft as well as belly-hold shipments across more than 250 daily passenger flights. In a second phase, Etihad Cargo plans to add further functionality to the CCC to allow monitoring of its Quick Ramp Transfer shipments at its Abu Dhabi International Airport HUB, providing instant alerts on potentially problematic connections and allowing the customer service team to pro-actively take immediate corrective action.

Etihad Cargo launches an advanced Cargo Control Centre. “By implementing data-driven technology and harnessing the ever-changing digital landscape, we have created a customer-friendly software that provides our team with market leading tools to better serve our customers when they need it most,”said Rory Fidler, Etihad Cargo’s Head of Technology and Innovation.

Emirates signs up US$ 8.8bn for 30 Boeing 787s at Dubai Airshow 2019 n Emirates recently announced that it has signed a full purchase agreement for 30 Boeing 787-9 aircraft, worth US$ 8.8 billion at list prices, at the Dubai Airshow 2019. Under its agreement with Boeing, Emirates has exercised its right to substitute the B777x with B787s. This deal includes Boeing 787 Dreamliners, with deliveries commencing in May 2023 and continuing for the next five years. For the B777X, Emirates will enter into discussions with Boeing over the next few weeks on the status of deliveries. This takes Emirates’ total order with Boeing to 126 Boeing 777X aircraft. HH Sheikh Ahmed Bin Saeed Al Maktoum, Emirates Chairman and Chief Executive, signed the agreement with Stanley A. Deal, President and Chief Executive Officer, Boeing Commercial Airplanes. With the inclusion of the US$ 16bn Airbus A350 order, this latest announcement takes the total value of Emirates’ firm aircraft commitments at the 2019 Dubai Airshow to US$ 24.8bn. “I am pleased to announce a firm order for 30 Boeing Dreamliners. This is an important investment and addition to our future fleet and network requirements, providing us the agility, flexibility and spread of seat segments when it comes to overall capacity to serve a range of destinations as we develop and grow our global route network,” commented HH Sheikh Ahmed. The 787s will complement our fleet mix by expanding our operational flexibility in terms of capacity, range and deployment to connect new city pairs and expand frequencies. We are also pleased to reaffirm our commitment to

An Emirates Boeing 787 Dreamliner takes flight over the skies of Dubai. the Boeing 777x programme and look forward to its entry into service,” HH continued. “We are excited to finalise this important order from one of the world’s leading airlines. Our agreement solidifies Emirates’ plan to operate the 787 Dreamliner and the 777X, which make up the most efficient and most capable wide-body combination in the industry,” noted Deal.

DECEMBER 2019 9

FedEx Express launches direct access to its services in Oman n FedEx Express has announced its expansion in the Gulf Cooperation Council (GCC) countries, transitioning to a direct presence in the Sultanate of Oman. FedEx Express has been facilitating trade in Oman since 1993 by offering its services through a local service provider. “We see great potential as Oman continues to evolve into a key logistics powerhouse in the Middle East and beyond. With access to our unparalleled Middle East road network and the world’s largest air express network, FedEx Express connects Oman directly to the rest of the world,” stated Jack Muhs, Regional President, FedEx ExpressMiddle East, Indian Subcontinent and Africa. This announcement by FedEx Express supports the country’s coordinated efforts and broader strategy to diversify the national economy. The logistics sector is a key contributor towards employment, investment and overall economic growth in the Sultanate, and a critical part of the nation’s future growth. In 2018, the Muscat International Airport invested in a new terminal, following the government’s expansion plans in the aviation sector. According to a recent report by the World Economic Forum, Oman ranks 8th globally in road infrastructure, while inflows of foreign direct investment and major infrastructure developments are the driving forces for the nation’s sea ports.

A FedEx Express Boeing 777F

Qafila selected by Intelak for sixth cohort n Qafila, the UAE’s first digital freight forwarder, has been selected by Intelak, the UAE’s leading aviation, travel and tourism-focused incubator, as one of the four winners of its sixth cohort. Winners were selected from more than 100 applications from around the world, following a weeklong intensive pre-incubation bootcamp with ten finalists and a ‘Shark-Den’ style demo day. Judges included Alex Alexander, the Emirates Group Chief Technology Officer; Rania Rostom, Chief Communications & Innovation officer, GE Global; Yousuf Lootah, Director of Tourism Development & Investments, Dubai Tourism and Commerce Marketing (Dubai Tourism); and Hans Henrik Christensen, VP, Dubai Technology Entrepreneur Campus (DTEC), Dubai Silicon Oasis. “This will allow us to have access over the next two months to key industry experts who can provide mentorship and help us fine tune our air cargo module, so that we can offer the same level of transparency and ease of shipping we currently offer for sea cargo,” remarked Atif Rafiq, CEO and Co-founder, Qafila. Qafila not only moves freight, it simplifies logistics. It uses technology to offer a digital freight & logistics platform where it currently supports FCL (Full Container Load) by ocean with plans to expand 10 DECemBER 2019

(From Left) Rania Rostom, Atif Rafiq, Imtiaz Hassan, Jithin Manoharan, Alex Alexander, Hans Christensen into air shipments and LCL (Less Container Load) by 2020. The platform is designed to enhance the customer experience, streamline operational efficiencies and provide around the clock customer support. Qafila’s platform offers shippers instant quotes, the

convenience of online booking, management of shipment and finally track and trace across the supply chain with live notifications on a mobile app. As part of Intelak, Qafila will receive a cash prize of AED 50,000, which will be distributed during key milestones on their entrepreneurial journey.

DP World Sokhna marks a decade-long partnership with Egypt n DP World Sokhna recently celebrated its 10th anniversary by announcing it is near completion of a major expansion project that will bring DP World’s total investment in Egypt to US$ 1.6bn. Basin 2 will be operational by the second quarter of 2020 and nearly double capacity at the port to 1.75mn TEUs per year. The expansion cements DP World Sokhna’s position as a major gateway for Egypt’s trade, and the only port in the country capable of handling the largest container ships in the world. Built at a cost of $520 million and complementing two operational basins, the expansion into Basin 2 includes a 1.3-kilometre-long quay with 400 meters in use in Phase 1, and a 350,000sqm. container yard. It is one of the largest direct investments into the Egyptian economy this year. The expansion comes as the UAE and Egypt agreed to support a US$ 20bn joint strategic platform to invest in a range of vital sectors and assets, with ports and economic zones being an integral driver for global competitiveness and economic prosperity. “DP World Sokhna is a testament to our market strength as a key trade and logistics hub in the south of the Suez Canal with

Acting Director Adel AlSaeedi welcoming bidders at the Al Dhafra bid announcement. access to the world’s busiest maritime trade routes,” affirmed Suhail Al Banna, CEO and Managing Director of DP World Middle East and Africa. “We remain committed to sustaining this success through in-depth market knowledge, constant improvement and

operational versatility,” remarked Ajay Singh, CEO, DP World Sokhna. The commemorative celebrations were attended by Hisham Tawfik, Egyptian Minister of Public Enterprise Sector, and Engineer Yahya Zaki, Chairman, Suez Canal Economic Zone among other officials.

EWEC receives bids for the world’s largest solar power plant project n The Emirates Water and Electricity Company (EWEC), a subsidiary of Abu Dhabi Power Corporation (ADPower), has received bids for its 2 GW Solar Photovoltaic (PV) Independent Power Producer (IPP) project, to be located in the Al Dhafra region of Abu Dhabi. The project tender included the financing, construction, operation and maintenance of the solar plant, including installation of solar PV modules, inverters, connection to the transmission network and associated facilities. Expected to cover an area of 20sqkm., the plant will be the world’s largest solar PV IPP project, and provide up to 110,000 households across the UAE with electricity. It will be almost double the size of EWEC’s approximately 1.2GW ‘Noor Abu Dhabi’ solar plant - the current largest operational single-project solar PV plant in the world, which commenced its commercial operation back in April 2019. Once operational, the plant will lift Abu Dhabi’s solar power capacity to around 3.2 GW, further reducing the emirate’s CO2 emissions by more than 1.6mn metric tons per year, equal to removing around 330,000 cars from the road, thereby improving efficiency and driving sustainability, while catering for the growth in demand across the UAE. “We continue to deliver on our ambitious sustainable generation program, and this new plant is integral to our strategic plan to deliver on the clean

DP World Sokhna held commemorative celebrations at a Cairo hotel energy mix outlined by the UAE Energy Strategy 2050,” commented Othman Al Ali, CEO, EWEC. EWEC’s team will now start the detailed technical evaluation followed by the commercial evaluation process to select the best proposal, with the award announcement expected to take place by Q1-2020.

DECEMBER 2019 11

Hahn Air celebrates 20th anniversary with stakeholders n Germany, headquartered Hahn Air recently celebrated its 20th anniversary commemorations of its founding and sixth birthday commemorations in Dubai. Among the participants were travel agents, distribution partners, media and other stakeholders. The guests celebrated in Hahn Air’s signature colour blue, and witnessed great performances with live music, traditional dances and a light-show-act. They also took the opportunity to pose alongside a life-sized Martin, the Hahn Air mascot. Hahn Air’s Vice President of Sales and Agency Distribution, Kimberley Long, welcomed the attendees and thanked them for their trust and loyalty.“We are so thrilled to celebrate with our partners in Dubai. A big thank you to all travel agents, Global Distribution Systems (GDS) partners, online travel agencies, tour operators and consolidators in the UAE and Middle East who trust in our solutions,” she remarked. “It’s been many years of fruitful cooperation and continual growth we look forward to the next 20 years. We remain committed to expanding our network of airline partners and our portfolio of services,” she added. Other representatives from the head office included, Robert Heerenveen, Vice President, Global Account Management, and Ahmed Mansour, Director, Global Account Management. 1999-established Hahn Air is a German scheduled and executive charter airline. It offers indirect distribution services to other airlines and thus provides ticketing solutions to 100,000 travel agencies in 190 markets. With 20 years of experience, the company has established itself as the market leader. Today, Hahn Air’s partner network encompasses more than 350 partner airlines. Hahn Air offers its distribution services exclusively to transportation companies and ticketing solutions to travel agents only. However, travellers benefit as well as they are able to choose from more carriers, more routes and more destinations. Every year

Hahn Air officials at the commemorative celebrations in Dubai. millions of passengers travel between 4,000 locations using Hahn Air’s HR-169 tickets. It is the first and only airline worldwide that offers free and comprehensive reimbursement in case of insolvency of the operating carrier. Hahn Air is a member of the International Air Transport Association (IATA) and a globally connected stakeholder playing a leading role in the airline industry. Hahn Air is 100% owned by the Hahn Air Group, an international corporation based in Dreieich near Frankfurt, Germany. The fleet of Hahn Air Lines operates out of the airports Dusseldorf and Frankfurt Egelsbach.

RSA Global appoints new Chief Operating Officer n RSA Global, the UAE-based digital freight forwarding and supply chain management company, has recently appointed Karthikeyan Hariharan to the position of Chief Operating Officer. In his new role Karthikeyan will lead and streamline freight and logistics operations at RSA Global in order to boost local and global business growth. Karthikeyan has extensive experience in the finance sector as well as in the freight forwarding and logistics industry obtained over 16 years. A chartered accountant, he has held leading positions in finance at Danzas, DHL, as well as at the global financial advisory company KPMG. “With him leading our operational teams and processes we will further enhance and extend our existing service and product portfolio, expand our global network and continue our journey of becoming fully digital optimising our customers’ experience when working with us,” remarked Abhishek Ajay Shah, Co-Founder and CEO, RSA Global. “RSA Global has an inspiring culture, great market capabilities and a strategy for future growth. I am looking forward to building on this strong backbone whilst simultaneously ensuring we remain focused on delivering the very best quality products and service to our customers,” commented Karthikeyan.

12 DECemBER 2019

Karthikeyan Hariharan, COO, RSA Logistics.

Aramex revenues grow 2% in Q3-2019

Bashar Obeid, CEO, Aramex.

n Aramex’s Q3-2019 Revenues grew by 2% to AED 1,270mn, compared to AED 1,239mn in the corresponding period a year ago. Revenues for the ninemonth period ending 30 September 2019 increased by 3% to AED 3,782mn, compared to AED 3,661mn in the corresponding period of 2018. Net profit registered a 1% increase in Q3-2019 to AED 113.8mn, compared to AED 112.9mn in Q3-2018, due to tighter yields and pricing pressure from the cross-border e-commerce business. “We are pleased to see strong growth in Aramex’s e-commerce volumes despite pricing pressure witnessed across the e-commerce industry. As we expect the lowmargin environment to continue over the next quarter, we will remain focused on improving service levels on the ground to prioritize quality across the delivery journey; and optimizing costs throughout the business to build further resilience,” stated Bashar Obeid, CEO, Aramex. “This quarter, we embarked on setting up three new facilities in Saudi Arabia in response to increasing shipment volumes into and within the country. We also did a major upgrade in an advanced automation system at our facility in New York to streamline sorting, processing and shipment transit times from North America to the region, which is a growth lane for us,” remarked Iyad Kamal, COO, Aramex.

RTA to migrate taxi bookings services to Hala e-hailing platform n The Roads & Transport Authority (RTA) has announced that the taxi Booking and Dispatch services will move entirely to Hala, the joint venture between RTA and Careem, as of December 7, 2019. The move heralds a shift from the interactive voice response system of taxi booking in Dubai to Hala e-hailing system on the Careem app to improve quality and positive uptake since the launch of Hala in September 2019. “This step is part of RTA’s strategic drive to support Dubai Government’s Smart City initiative. This transition comes after a landmark one-millionth booking within days after the official launch of Hala service on 29 August 2019,” remarked Ahmed Bahrozyan, CEO, RTA’s Public Transport Agency. “The step contributes to RTA’s objective of revamping taxi services in Dubai making the service more accessible through e-hailing, and at the same time advancing the integration of public transit means,” he added. “The migration of the Dubai Taxi booking process to Hala will continue to ensure the most efficient experience for customers, connecting users to the closest Dubai Taxi at the touch of a button. Hala customers will get a booking confirmation in less than 10 seconds, get a taxi in an average of 3.5 minutes,” commented Clemence Dutertre, CEO, Hala.

DECEMBER 2019 13

Etihad Cargo partners with e-booking platform to expand global distribution n Etihad Cargo has augmented its digitalisation strategy by signing a landmark distribution agreement with cargo.one, the multi-airline e-booking platform. Finalised on the side lines of Cargo Connect, an industry forum co-located with Dubai Airshow, the agreement confirms Etihad Cargo as the latest international carrier to partner with cargo.one. A key driver in its commitment to provide customers with a bestin-class booking experience, the cargo.one agreement empowers Etihad Cargo to offer an additional avenue for bookings on available cargo capacity to a wider pool of European customers. “This landmark partnership with cargo.one builds on the success we have achieved on our own online platform, etihadcargo.com, which now represents 38% of our bookings,” commented Abdulla Mohamed Shadid, Etihad Aviation Group’s Managing Director for Cargo and Logistics Services. Serving more than 300 freight forwarding companies across Europe, cargo.one has been growing its customer base at a rate of more than 20% month-on-month. In adding Etihad Cargo’s global network to the platform, cargo.one forwarders will have access from Europe to new markets across the Middle East, Indian Subcontinent, Asia, Africa, Australasia and USA, including Sydney,

Kuala Lumpur and Jakarta. Through the partnership cargo.one has heightened its attractiveness as the number one e-booking platform for freight forwarders, revealed Moritz Claussen, Managing Director, cargo.one. Following a phased roll-out starting today, Etihad’s capacities will become available on the cargo.one platform in all major European markets.

The DP World bell-ringing ceremony at Nasdaq Dubai.

DP World Group celebrates Sukuk and bond listings totalling US$ 2.3bn n Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, recently rang the market-opening bell at Nasdaq Dubai to celebrate the listings of two Sukuk and two conventional bonds with a total value of US$ 2.3bn. DP World will use the capital raised for debt refinancing and to fund growth opportunities. The listings, carried out during 2019, comprise two Sukuk of US$ 1bn and US$ 500mn and two conventional bonds of US$ 500mn and US$ 300mn. “Our debt issuances this year were well received in the market by a wide variety of investors in the region and around the world, driven by attractive pricing, enabling us to achieve competitive pricing structures as we continue to execute our strategy to become a logistics solutions provider to end-cargo

14 DECemBER 2019

owners,” remarked Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World. DP World is the largest UAE debt issue by value on the region’s international exchange, where its Sukuk and conventional bonds listings now total over US$ 9bn. “The issuance and listing of these Islamic and conventional instruments in Dubai reflect the high level of expertise in the UAE across all aspects of the debt markets,” commented Essa Kazim, Governor, Dubai International Financial Centre (DIFC) and Chairman, Dubai Financial Market (DFM). DP World’s Sukuk underline Dubai’s role as one of the largest global centres for Sukuk listings by nominal value, currently totalling US$ 64.3bn.

GAC Sharjah celebrates golden jubilee by opening new branch in Hamriyah Free Zone n GAC Group recently opened a new full-fledged branch at Hamriyah Free Zone (HFZA). The move comes as part of GAC’s expansion plans and is in conjunction with the company’s celebration of the golden jubilee of its base in Sharjah, established in 1969. GAC Sharjah’s new branch will also help it develop and improve its services in terms of the quality, effectiveness and customer satisfaction, according to the latest global developments in field. The inauguration ceremony was attended by HE Saud Salim Al Mazrouei, Director, Hamriyah Free Zone Authority; Bjorn Engblom, Executive Chairman and Trustee – GAC Group; Fredrik Nystrom, Vice President – Middle East Region, GAC Group; Rajesh Moorjani, General Manager – GAC Sharjah, in addition to a number of senior officials. In addition to Sharjah, the company’s area of operations covers ports in Sharjah, Ajman and Khorfakkan. It provides a comprehensive range of shipping, logistics and warehousing solutions to local and international clients and is involved in several developments and infrastructural onshore and offshore projects in Sharjah. “With HFZA’s strenuous efforts, we have become a major destination for foreign investments throughout the year and the first and foremost choice for international companies looking forward to opening headquarters, offices, and factories within a conducive

HFZA and GAC officials at the inaugural ceremony working environment”Al Mazrouei noted. “Inaugurating our new office in HFZA comes in line with our expansion plans into the region’s markets. We have chosen Sharjah specifically because of its strategic location, competitive work environment, available logistics services and proximity to vital marine ports,”commented Engblom.

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DECEMBER 2019 15

Honeywell and S&K Logistics sign pact to cut downtime n Honeywell and S&K Logistics Services have entered into a new service agreement that will reduce aircraft downtime and cut costs for Foreign Military Sales customers worldwide. S&K Logistics Services, an industry-leading provider of maintenance, repair and overhaul services, made the collaboration with Honeywell official at a signing ceremony at the recently concluded Dubai Airshow. The agreement with S&K Logistics Services (SKLS) will support Foreign Military Sales (FMS) customers, with fast, reliable repairs and maintenance for all their Honeywell parts. Downtime is expensive and inconvenient for operators, but necessary to maintain aircraft. Honeywell has maintenance, repair and overhaul (MRO) centres all over the world with its extensive network of channel partners. Through this collaboration, operators will benefit from reduced turnaround time and faster access to local MRO services on a global scale. “The work we do is mission critical, Joining forces with Honeywell gives us the infrastructure and reach needed to ensure we are able to provide local and efficient services to our customers,” said John Sims, President, S&K Logistics Services. The five-year servicing agreement will cover all of Honeywell’s defence products and services, including engines,

Honeywell, S&K Logistics Services officials at the deal signing ceremony. avionics and mechanical components. The agreement between S&K Logistics Services and Honeywell will offer direct support to military operators and allow FMS users easy access to expert servicing professionals at the same high standards of safety and reliability that Honeywell applies to its own products.

“With this agreement, our FMS users in the Middle East and the rest of the world will benefit from Honeywell’s global network of repair and overhaul sites,” said Mosab Alkubaisy, Director for Defense and Space, Middle East and Africa, Honeywell Aerospace.

Crane Worldwide Logistics appoints Eric Brandt, VP of Sales n Eric Brandt has joined Crane Worldwide Logistics in New York to lead the future sales growth of the company in the East Region, USA. Brandt has worked in the logistics industry for almost 20 years and has significant experience in freight forwarding, contract logistics solutions as well as final mile distribution with specialization in the consumer and retail verticals. “Eric’s expertise will help drive our strategy as we continue our growth focus in the East region. We have clearly defined our goals for 2020 including focus on enhancing our service offerings and tailor-made solutions for our clients,” commented Rob Kenten, Regional Vice President, East Region. “As a privately-owned company, Crane Worldwide Logistics strives to be the employer of choice for logistics experts around the world. Given current market conditions, including the increase in mergers and acquisitions, we are in a great position to offer solid opportunities to experienced personnel. There is tremendous opportunity for growth as we continue to expand our business around the world,” commented Tim Zubradt, Chief Sales Officer. Crane Worldwide Logistics continues to grow based upon their client’s needs and currently the organization has 120 locations in 30 countries.

16 DECemBER 2019

EricBrandt, VP Sales, East Region, USA.

UAE discusses key challenges facing global maritime sector at IMO Meeting n Dr. Abdullah Belhaif Al Nuaimi, the UAE Minister of Infrastructure Development and Chairman of FTA - Land and Maritime, recently underscored the four key areas in the maritime sector that are expected to bring new challenges to the global maritime community. Speaking on the sidelines of the recently concluded 31st General Assembly of the International Maritime Organization (IMO) in London, HE Al Nuaimi cited cybersecurity, port development and modernization, the seafaring profession, and collective maritime capacity building as the fundamentals that will help shape the future of the industry On cybersecurity, HE Al Nuaimi pointed out that building a safe and secure digital infrastructure is crucial to the future of the Maritime Autonomous Surface Ships (MASS), which rely heavily on the integrity of information and communications technology (ICT) systems and data confidentiality.

Dr. Abdullah Belhaif Al Nuaimi addressing the IMOâ&#x20AC;&#x2122;s 31st General Assembly Meeting. According to the Minister, a strategic plan by IMO will help identify the needed improvements and steps to reduce cybersecurity risks and, consequently, avoid a global disruption to the global supply chain and international trade. The seafaring profession is facing two current and future challenges. The Minister pointed out the shortage of skilled seafarers worldwide and the critical skills upgrade

in line with the rising digitalization in the maritime industry, which accounts for 90% of the total world trade. He affirmed said that the international maritime community should collaborate to promote the sectorâ&#x20AC;&#x2122;s global competitiveness, build a sustainable maritime shipping segment, and optimize the use of energy resources, while ensuring environmental sustainability.

Solutions for a healthy world Tranzone operates a state-of-the-art 3PL warehouse in Jebel Ali Free Zone. We have partnerships with the leading pharmaceutical, medical device and animal health companies around the world.

Healthcare Logistic Services: Air Freight Sea Freight Land Transportation Value Added Services Warehousing & Distribution Return logistics Documentation Tranzone FZCO (Member of Banaja Holdings)

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Web: www.tranzone.ae DECEMBER 2019 17

Maqta Gateway’s new online marketplace launched

Dr. Noura Al Dhaheri, CEO, Maqta Gateway.

n Maqta Gateway, the developer and operator of the first port community system in the UAE and a wholly-owned subsidiary of Abu Dhabi Ports, recently hosted its 5th Digital Trade Community Forum, further advancing the country’s digital transformation efforts in the trade and logistics sector. Acting as a networking event connecting Abu Dhabi Trade stakeholders with key strategic partners and customers, the annual forum attracted more than 400 participants. The guest list included prominent leaders representing key organisations within the maritime, trade, and logistics industry. The event also served as the launch platform for Maqta Gateway’s recent innovative solution, Margo, which is a digital marketplace for cargo clearance and delivery solutions. Margo enables consumers importing personal goods from anywhere around the world through Khalifa Port or Abu Dhabi International Airport to clear and have their goods delivered directly to their homes anywhere in the UAE. “As trade enablers and trade champions, we realised the opportunities that digitalisation offers and the benefits it would bring to Abu Dhabi and the UAE, and our partners and customers,” said Captain Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports. “We are confident it will be a valuable addition to our portfolio of digital innovations, further increasing demand for Abu Dhabi Ports’ services while promoting sustainability through diversification,” stated Dr. Noura Al Dhaheri, CEO, Maqta Gateway. Margo is supported by leading logistics providers who have helped shape and optimise the process of cargo clearance from various ports of entries to customers’ doorsteps. These include MICCO Logistics, Etihad Airport Services Cargo, Agility, Kanoo Shipping, GAC and Sharaf Shipping Agency. Other service providers are welcome to register online. 18 DECemBER 2019

Ismail Abdulla, CEO, Strata Manufacturing (L) with Shamsuddin Mohamed Yusof, CEO, CTRM.

Strata inks strategic decade-long contract with Malaysia’s CTRM n Mubadala Investment Company-owned and Al Ain, UAE-based Strata Manufacturing (Strata), the advanced composite aero-structures manufacturing company, recently signed a contract with Composites Technology Research Malaysia (CTRM) for the supply of composite detail aircraft parts. Under the 10-year contract signed at Dubai Airshow 2019, CTRM will supply Strata with structural composite detail parts for aircraft components. The first shipment is due to arrive at Strata’s world-class Nibras Al Ain Aerospace Park production facility at Al Ain International Airport in the second quarter of 2020. The deal is part of outlining a strategy to secure best-cost international supply chain partners for Strata-manufactured composite aero-structure components, explained Ismail Ali Abdulla, CEO, Strata. “By outsourcing sub-tier business functions to selected suppliers with proven track record of excellence, Strata can place a greater focus on core manufacturing activities and take full control of the end-toend supply chain. This arrangement will enable Strata to continue exceeding customers’ expectations in terms of cost-efficient delivery,” he added. “Through this strategic arrangement, CTRM becomes the extended manufacturing arm and capacity provider for Strata. By leveraging on each other’s respective strengths and capabilities, Strata and CTRM will complement each other in capacity and capabilities towards strengthening our position in this aerospace industry,” remarked Shamsuddin Mohamed Yusof, CEO, CTRM.

Integrated Energy Logistics Provider The Tristar Group is a fully integrated Logistics Solutions provider that offers a comprehensive list of services to cater to the needs of the petroleum, chemical and petrochemical industries, both in the region and globally. The company’s core expertise lies in its ability to safely handle and distribute all types of retail fuels, lubricants, chemicals, petrochemicals and liquid gases. Specialized Warehousing for Chemicals & Dangerous Goods

Commercial Aviation Refueling

The JAFZA South custom built warehouse has the capability to offer both ambient and temperature controlled storage for a wider range of petroleum products, including industrial solvents and soft chemicals. Total warehouse capacity is in excess of 17,000 pallet positions. The facility has an in-house fully automatic tank cleaning facility installed by Groninger (Europe). The tanks will be cleaned with soft water with chlorine content less than 50PPM alongside with a high pressure pump of 100 bar and a Boiler designed to produce steam at 1.2 TPH, which generates hot water of 80 Degrees Celsius. A fully automated effluent treatment plant will treat and recycle all waste water from the cleaning station to be used for general cleaning and irrigation purposes.

Tristar is into the commercial aviation sector in Africa by offering refueling services at the Juba International Airport and Malakal Airport in South Sudan, starting with Flydubai, WFP and several members of the Africa Airlines Association. Tristar has also established an Aviation Refueling Station at the Monrovia Airport in Liberia which is ready for commissioning. Tristar’s Aviation Fuel Stations comply with international standards, specifications and guidelines set by IATA, JIG, AFQRJOS, as well as with IFQP requirements set by Airlines for Aviation Fuel Quality Control and Operating Procedures. Tristar has been a member of IATA since 2008 and has a technical service agreement with Hansaconsult.

Polymer Bulk & Bagging Warehouse

Fuel Farm

The multi logistics polymers facility in JAFZA South is designed for receiving bulk PP/PE granules into silos and bagging of the granules by fully automated bagging operation into FFS film bags and/or big bags. The packed material can be stored inside the warehouse in racking with a capacity of 8,000 tons. It also has a drum filling station with capability to drum from ISO tanks and road tankers thus providing customers a solution to receive in bulk and store and distribute in packed conditions.

Tristar owns, operates and manages 62 fuel farms globally with a storage capacity of more than 700 million liters for handling a wide range of petroleum products like Jet Fuel, Gasoline, Gasoil, Fuel Oil, etc. Tristar’s fuel farms and storage depots are constructed and maintained in the services of its clients. Our largest fuel farm is in the Pacific island of Guam which has a capacity of 4.2M barrels. All the operations comply with the local and international safety and environment standards, including OSHA and USEPA.

Road Transport

Shipping

Tristar owns and operates over 1,700 vehicles ranging from road tankers, trailers and delivery pickups in the Middle East, Asia and Africa. Operations are certified for Integrated Management System including the latest ISO 9001, ISO 14001, ISO 45001 and ISO 39001. Tristar is periodically assessed by the Gulf Petrochemicals and Chemicals Association for SQAS (Safety and Quality Assessment System).

Email: info@tristar-group.co

The shipping business acquired Eships in early 2016 and now owns and operates 29 chemical, oil and gas tankers and bulk carriers trading globally, mostly with Oil Majors. The vessels include the six Eco MR tankers (50,000 DWT) delivered in 2016 and the six new build 25,000 MT DWT, IMO Type 2 Oil and Chemical tankers to be delivered between the middle of May 2020 till the first week of January 2021. These ships are fitted with fuel saving equipment such as the Propeller Boss Cap Fins and Trim Optimization System.

Website: www.tristar-group.co

The recently concluded Dubai Airshow 2019 was hailed a success by exhibitors, delegates, sponsors and organisers alike.

UAE, Middle East air carriers maintain momentum

Aircraft orders worth a whopping US$ 54.5 billion recorded at the mega event

20 DECEMBER 2019

ith more than 1,288 exhibitors in attendance, 161 aircraft on the event’s static display, and a packed schedule of conferences and keynotes, the programme was the show’s busiest to date – as evidenced by the footfall of 84,043 trade attendees. Sales were also booming, with the order book on site reaching US$ 54.5bn by close of business. Among those taking stands were 100 new exhibitors, including Saudi Arabia’s The Helicopter Company. CEO Yahya Homoud Alghoraibi characterised the firm’s first show as being ‘very successful’’ “We have done more than we expected, we have met and had discussions with a lot of companies and we have seen a lot of customers and shown our aircraft to many people as well, so we are very happy with what has taken place. We are a new company, so relationships matter a lot. Communication matters as well, and Dubai Airshow is one of the best communicators.” DECEMBER 2019 21

Dubai Airshow 2019

Also making its debut this year was EDGE, a group comprising 25 local entities working in five aerospace capability clusters, which launched shortly before the show. Among the firms sitting under the EDGE umbrella is Al-Tariq, and its CEO Theunis Botha said the Dubai Airshow had been a great way to establish the brand’s presence in the region. “EDGE has been very well received. We have been very busy and have been inundated with requests and interest from several friendly nations around us,” he remarked. Elsewhere, a host of speciality conferences, offering industry-specific keynotes, Q&A sessions and networking opportunities, attracted huge crowds of professionals. Set across two days, the Global Air Traffic Management (GATM) conference took a close look into the future of traffic control, with virtual towers proving to be a particularly hot topic. Cargo Connect, a show within the show focused on the air freight industry, with data sharing across both geographical and business boundaries being a key focus.

Delivery Bot is a cynosure attraction at Cargo Connect The effect of automation, artificial intelligence and digitalisation were the key topics at the Cargo Connect conference held on the sidelines of the Dubai Airshow 2019. Speakers including Dennis Lister, Vice President, Cargo Commercial Development, Emirates SkyCargo, discussed the impact of the three key topics on the future of cargo and freight. An autonomous delivery device known as Roxo, exhibited by headline sponsors FedEx Express, delighted delegates, gliding up on to the stage to bring notes to conference MC Kim Winter of Logistics Executive, and obeying voice commands from Jack Muhs, Regional President, FedEx Express MIESA. Muhs said Roxo, created in collaboration with DEKA Research and Development Corp, will be an important part of the FedEx ecosystem and serves as a demonstration of FedEx’s goal to connect people and possibilities around the world. “Roxo is an autonomous delivery device designed to help retailers make same day and last mile deliveries to our customers while potentially reducing the number of vehicles on the road and easing traffic congestion,” he affirmed. Speaking in a keynote address at the conference, Muhs also announced a partnership with Dubai Airports, and the Road and Transport Authority (RTA) to define ways in which the autonomous bot can meet delivery needs in the United Arab Emirates. Delegates also heard from Alexander Ostrovoy, Managing Partner, Aura, an unmanned aerial vehicle (UAV) manufacturer, which is currently working on expansion projects globally. Ostrovoy said regulation of the autonomous aircraft sector was relatively mild, and was still under development, but

22 DECEMBER 2019

governments globally were ‘loyal’ to the field. Other announcements included a partnership between Etihad and online cargo booking platform Cargo One, made by Abdulla Mohammed Shadid, Managing Director, Cargo and Logistics, Etihad. In the freight forwarding sector, Bradley Francis, Director, Airfreight UAE and Oman, Kuehne + Nagel, said his company had identified a decrease in tonnage being flown, but there had not been the same reduction in shipments counts. “We are seeing more shipments that are smaller moving around,” he said. Francis raised the need for information to be automated, and shared automatically through the supply chain, from airline to truck to ship, to remove the need for staff to continually replicate and send on data at different stages. “We don’t need an expert to watch a shipment that’s going perfectly, ideally what we want our experts to be doing is looking at what needs to be done to improve our delivery time or notify customers of delays,” he stated. The need to share data and collaborate across the industry was also highlighted by Alan White, Vice President, Ground Operations, National Air Cargo. “If we want a seamless end to end logistics supply chain, it is only going to work in the future if we are allowed to collaborate more,” he noted. “Everyone is accumulating data of some sort, it is a case of how best to utilise that data with all the relevant parties that is critical for the future,” he added. The Cargo Connect conference provided real opportunities for industry networking, with thought leaders offering fascinating insights into how technologies including automation and artificial intelligence will shape it in the future.”

Airshow 2019 has gone above and beyond expectation, with so much great business being done alongside an engaging and innovative programme of conferences, exhibits and flying displays ”

Dubai Airshow 2019

Michele van Akelijen, MD, Tarsus F&E Middle East For the first time in 2019, a growing focus on space exploration regionally was recognised with its own conference programme, opening with Women in Space, hosted by the UAE Space Agency and featuring speakers from the UN and Boeing, among others. Aimed at examining the key role female scientists, researchers, engineers and astronauts will play in the future of the global space industry, the conference proved a huge draw and former astronaut, the European Space Agency’s Claudie Haigneré, said she found the level of engagement very encouraging. “I felt that really something is going on here, and I’ve been really impressed because this shows a real possibility for change. The new generation coming up here is so refreshing,” she stated. Meanwhile, the Space Tech Talks schedule looked in-depth at the technological advancements needed for the next generation of space exploration, and the impact they are expected to have on the wider world. Indeed, the impact of both technology and space research on all aspects of industry was evidenced across the show floor, where exhibits ranging from Dubai Police’s new flying bike for hard to reach emergencies to new products in the medivac field, through to the first commercial space flight suits from Virgin Galactic, were all on show. “We always want to outperform our last show, and 2019 has gone above and beyond expectation, with so much great business being done alongside an engaging and innovative programme of conferences, exhibits and flying displays,” observed Michele van Akelijen, Managing Director, Tarsus F&E Middle East, the show organisers. Meanwhile, one hundred new firms have made their Dubai Airshow debut in 2019, with new arrivals on the defence, ATC,

Sheikh Ahmed Bin Saeed Al Maktoum and Guillaume Faury at the Airbus deal sigining ceremony.

Emirates signs US$ 16bn Airbus Purchase Order Air Arabia follows with $14billion deal for 120 new Airbus aircraft as order book fills up Emirates signed an order for 50 Airbus A350 XWB worth $16billion today, leading the crowd on a busy day of sales and proving, once again, that Dubai Airshow is the industry’s preferred place to do business. The deal, announced by Sheikh Ahmed Bin Saeed Al Maktoum, Emirates’ Chairman and Chief Executive, and signed with Guillaume Faury, Airbus’ Chief Executive Officer, will see the first aircraft delivered in May 2023. The order replaces a previous agreement of intent to purchase 30 A350s and 40 A330 Neos, and reflects Emirates’ desire to move towards a new configuration featuring Premium Economy cabins. “I’m always looking for something that will work for Emirates as a fleet, in terms of our operation now and in the future. So, I think that, today, when we look at the A350 and the role it can serve within Emirates, for short trips, medium or long haul, I think that flexibility is good for the airline,” commented Sheikh Ahmed on this occasion. “Our business model is to provide efficient and comfortable air transport to and from our Dubai hub, and today, this $16billion deal reflects our confidence in the future of the UAE aviation sector,” Sheikh Ahmed continued. In addition, Air Arabia signed a deal worth $14billion with Airbus to purchase a total of 120 new aircraft, comprising a mix of A320 Neos, A321 Neos and A321 XLRs. The airline, which currently operates primarily from Sharjah with a fleet of 53

Airbus aircraft, was recently announced as the partner in a joint venture with Abu Dhabi’s Etihad to launch Air Arabia Abu Dhabi. It followed day one sales from De Havilland Canada, of three Dash 8-400 turboprops to Elin Group of Nigeria in a deal worth US$99million, and Boeing, which sold a pair of 787-9s worth US$585million at list price to Biman Bangladesh Airlines. Elsewhere, Nigeria’s Air Peace topped up its fleet with the purchase of three Embraer 195E2s, while Egyptian lessor CIAF purchased three E190s and Omani low-cost carrier SalamAir agreed the lease of two Airbus A321 Neos from GECAS. The show’s opening days have also seen an increased focus on green initiatives aimed at answering environmental concerns in the aerospace industry, with Etihad Airways and Boeing unveiling plans for a world-first ‘Greenliner’. The eco partnership will use a specially-themed Boeing 787 Dreamliner, set to be introduced early next year, to research products, procedures and initiatives designed to reduce aircraft carbon emissions. Etihad also announced the operation of a special Boeing 787 ‘eco flight’ to Brussels will take place during Abu Dhabi Sustainability Week in January 2020. Meanwhile, the world’s first eco-friendly airracer monoplane was also unveiled at the show by Air Race E, the firm pioneering an electric racing series which is expected to launch in late 2020 with support from Airbus.

DECEMBER 2019 23

Dubai Airshow 2019

Everyone is accumulating data of some sort, how best to utilise that data with all the relevant parties that is critical for the future ” Alan White, VP, National Air Cargo

Space Tech Talks at Dubai Airshow 2019.

Dubai Airshow hosts Space Tech Talks Event The future of space exploration and the impact of tech under the spotlight Efforts to create a collaborative Arab Space Agency were discussed as the Dubai Airshow 2019 hosted its first Space Tech Talks conference. Focusing on the future of space exploration and its impact on the technology sector, the programme featured a host of keynote sessions from speakers including Dr. Eng. Mohammed Nasser Al Ahbabi, Director General of the UAE Space Agency, Masood M. Sharif Mahmood, Chief Executive Officer at Yahsat, and Pierre Delsaux, Deputy Director General of the European Commission. Recognising that collaboration will be key to the success of any future moves into the field of space exploration, from the UAE’s National Space Strategy 2030 to the Mission to Mars project, Dr. Al Ahbabi said any initiative of the UAE’s was an initiative for the whole of the Arab world.

24 DECEMBER 2019

With 14 countries already collaborating on plans for a regional space strategy and satellite project, he highlighted examples of the European Space Agency and African Space Agency. Among related key events, Colonel Al Worden, who served as the Command Module Pilot of Apollo 15, hosted a keynote session examining the lessons learned from the Apollo 12 moon landing. He also spoke about his new Endeavour Scholarship, launched in collaboration with Kallman Worldwide, which will see four Emirati students and two teachers sent to space camp in the USA. The Space Tech Talks conference was taking place for the first time amid a Dubai Airshow programme that has this year given increased spotlight to the region’s momentum in the space sector.

maintenance and supply fields all exhibiting for the first time at the show. The dedicated feature pavilions for Space, Cargo and Global Air Traffic Management (GATM) also attracted new companies to the region keen to be part of the growing aerospace market. The number of exhibitors in attendance is up by almost ten percent this year, with 1288 companies setting out their stands, and business has been brisk throughout the first four days of proceedings. For Canadian first-time exhibitor Searidge Technologies, a technology innovator providing Remote Tower and Digital Airport solutions, the show’s opening days were particularly fruitful, with Airservices Australia selecting the firm’s digital tower solution for an initial prototype at Sydney Airport. “The fact that the GATM conference was being arranged meant we knew a lot of key influencers in the ATM development field would be here. It’s exceeded all of our expectations,” commented Neil Bowles, Searidge’s Head of Air Traffic Management. In the Space Pavilion, Ukraine-based lunar and space technology firm Yuzhnoye Design Office said it was delighted to be making its debut in a year in which space exploration was taking such a spotlight. “I hope that maybe our company can do something together with the Emirates and the authorities, in space, and the lunar programme,” said Alexander Degtyarv, General Manager. Searidge and Yuzhnoye were joined on the roster of new exhibitors by Saudi Arabia’s The Helicopter Company and Saudi Arabian Military Industries (SAMI), the UAE’s Kingsbury and Airports World Company, Taiwan’s Smart Frequency and Korea Defense Industry Association, as well as dozens of others who travelled from across the globe to host stands on site for the first time. n

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Safety First

Eugene Mayne, CEO, Tristar Group delivers the keynote address at the debut Safety at Sea Conference

Tristar sends out clarion call to companies to confront mental health among seafarers The global maritime transport industry, handling over 90% of international trade, is increasingly becoming safety oriented thanks to the growing consciousness of ship owners, ship and bunker suppliers, OEMs, port operators, the freight and logistics companies and multiple stakeholders.

t is now normal for the authorities to exercise their general policing powers, to monitor the safety conditions on board ships. This is in the interests not only of seafarers but also of the increasing numbers of other people who venture out to sea. Gradually, industrial legislation affecting equipment, manpower and operating conditions was progressively applied to the merchant navy. This first-of-its-kind event in the region hosted by Tristar sparked interest in the local and international maritime and seafaring community. Tristar Group CEO Eugene Mayne urged regional ship-owners to address and tackle

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the mental health issues facing seafarers at the recently concluded inaugural Tristar ‘Safety at Sea’ Conference. In his keynote address, Mayne highlighted the importance of managing the emotional and mental wellbeing of crew at sea, when he addressed over 150 attendees comprising leading officials and professionals from the regional and international maritime industry at the One&Only Royal Mirage Hotel in Dubai.

Front burner issues Mayne stressed the need to bring mental health issues to the front burner and

not brush it under the carpet. He shared the findings of the P&I (Protection and Indemnity) Club that the rate of suicide amongst seafarers has more than tripled since 2014. He further highlighted the report from the Sailors’ Society that 26% of seafarers show signs of depression.“Nearly half of them said they had not asked anybody for help,” he added. “The irony is that despite such high rates of suicide amongst seafarers, the topic of mental health is still considered to be a taboo in our industry,” Mayne explained. “We need to change this mind-set as leaders in our industry and we need to collectively pay attention to this growing

Safety First

26% of seafarers show signs of depression. Nearly half of them had not asked anybody for help. . – Sailors’ Society report

Eclectic mix of attendees

A panel discussion in progress. trend and come together to do something about it,” he continued. The conference also covered critical topics such as preventing mooring rope failures and restricting cargo tank entry. In attendance were a number of global merchant marine professionals and experts.

Live streaming to overseas cadets and trainee mariners The conference was also broadcast live to crewing centers around the world, to enable over 500 seafarers to engage with

the event and provide their inputs and practical expertise on the topics being discussed. Being on-board deep-sea bound vessels for long periods of time can play a role in exacerbating mental and physical strain. The Safety at Sea conference sought to openly address these issues and demonstrated the need to support the health and wellbeing of all workers at sea. The conference covered various topics currently affecting the maritime industry, including crew mental health and physical wellbeing, preventing incidents and accidents, maritime security, IMO2020, and more.

Susie Hill, Global Health Promotion Manager at Shell, shared her expertise on mental health in the shipping industry. Also in attendance was Reverend Canon Andy Bowerman, Regional Director of ‘The Mission to Seafarers’ Organization. The panel was moderated by Certified NLP (Neuro-Linguistic Programming) Coach Alexis Dunstan. Among other professionals who attended were prominent panelists who included Bharat Bhushan, Maritime Manager, Shell Ports and Terminal Assurance; CPO Anne McGarva, Royal Navy, UKMTO; Ajit Natu, Head of Tanker Operations, Fleet Management Ltd.; Farhad Nanavaty, ITM, Dubai; Naushad Azad, Red Sea Marine Services; Captain Gurvinder Singh, Tristar Group; Chris Peters, CEO, Tristar Shipping; Joy Basu, Smart Ship; Johan Ljungbeck, Polarmarine; Capt. Tony Field, LRS and Rania Tadros, Ince & Co. Tristar Group is an integrated logistics services provider to the downstream oil and gas industry. It owns and operates chemical, oil and gas tankers and bulk carriers trading globally, mostly with oil majors. n DECEMBER 2019 27

xpo 2020 and government-led infrastructure projects were key factors driving the growth of Dubai’s economy, logistics and construction sectors in 2018 and 2019, and this is trend expected to continue over the next two years, according to new analysis released by Dubai Chamber of Commerce and Industry at a recent briefing. The analysis, based on recent data from BNC, IMF, Haver Analytics (founded 1978, USA) and Fitch Connect (the new flagship service from Fitch Solutions), revealed that the construction sector contributed an estimated 6.4% to Dubai’s GDP in 2018. Currently, there are 4,792 current active projects in Dubai, accounting for 42% of the UAE’s total.

Expo 2020 infrastructure projects driving growth of Dubai’s logistics sector

Hassan Al Hashemi during the Expo 2020-related briefing.

Dubai accounts for 42% of current active projects in the UAE Key growth drivers Other key growth drivers for Dubai’s logistics and construction market include the emirate’s strong economic fundamentals and diversification strategy, steady increase in population and number of tourists, sustained infrastructure investment over the medium term and major government investments in transportation. Most Expo 2020 related infrastructure projects are either under construction or completed, while the majority of the contracts are for building works located at the Expo site. Other mega projects include expansions of Al Maktoum International Airport (DWC), Jebel Ali Port and the Dubai Metro Red Line connecting the city centre to the Expo 2020 site. In addition, the findings showed that the UAE leads the GCC in the value of 28 DECEMBER 2019

awarded contracts for 2019 as the country is estimated to have US$ 48.4bn worth of contracts in the pipeline, followed by Saudi Arabia (US$40.2bn) and Kuwait (US$15.8bn). The UAE outperforms other countries in the region when it comes to the contribution of its construction sector to national GDP with the value of this figure reaching US$ 33.2bn in 2018.

Global interest The annual briefing, held at Dubai Chamber’s headquarters, was well attended by delegates from more than 16 countries. The event provided an ideal platform for industry stakeholders to learn more about Dubai’s economy, business environment and construction market. Addressing delegates during the event,

Hassan Al Hashemi, Vice President of International Relations at Dubai Chamber, noted the growing international interest and confidence in Dubai’s economy and construction market.“Expo 2020 related businesses offer an opportunity for delegates to network with the local business community and get a glimpse of new projects in the pipeline,” he explained. Al Hashemi described Dubai as a land of opportunity for stakeholders in the global construction industry and highlighted the various competitive advantages offered by the Emirate such as its worldclass infrastructure, business-friendly environment and 30 plus free zones, adding that the current timing is deal to explore the vast potential in the market as plenty of exciting business opportunities emerge in the lead up to Expo 2020. n

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UNIDO Abu Dhabi declaration

Milestone UNIDO General Conference in Abu Dhabi concludes successfully Historic Abu Dhabi declaration marks a new era for global private sector alliances

he 18th Session of the United Nations Industrial Development Organisation (UNIDO) General Conference held in Abu Dhabi recently drew to a close after five days of progress, developments and renewed determination towards achieving the 2030 Agenda for Sustainable Development. The biennial event united UNIDO’s member states, under the theme of ‘Industry 2030 – Innovate. Connect. Transform our Future’. UAE’s historic hosting marked only the fourth time the UNIDO General Conference has been held outside its headquarters in Vienna, Austria, and its first staging in the Middle East and North Africa region. Speaking at the opening ceremony Andry Rajoelina, President of the Republic of Madagascar described the UAE as a symbol of transformation, modernisation and “one of the world’s great destinations”. The General Conference welcomed 1700 attendees including country Presidents, Ministers of Industry, Trade, and Economy, 580 diplomats and leading officials from around the world, senior representatives of UNIDO and other United Nations organisations, and prominent private sector, civil society and academia leaders. HE Suhail Mohamed Al Mazrouei, UAE Minister of Energy & Industry was announced President of the General Conference in the presence of Andry Rajoelina, President of Madagascar;

30 DECEMBER 2019

Mahamadou Issoufou, President of the Republic of Niger and Jotham Napat Nauka, Deputy Prime Minister of Vanuatu.

Abu Dhabi Declaration The General Conference adopted the Abu Dhabi Declaration, which calls on the private sector to form a coalition towards advancing inclusive and sustainable industrial development and achieve global prosperity. The Abu Dhabi Declaration builds on the country’s history of leveraging public-private partnerships to develop its national economy and also exemplifies the country’s firm belief in global alliances to meet ambitious multiregion development goals. The Abu Dhabi Declaration will thus set a roadmap to create a global alliance of private sector companies that will work towards a common vision of making industrialisation more inclusive and sustainable. The Abu Dhabi Declaration is also inspired by global industrial partnerships such as the Global Manufacturing and Industrialisation Summit (GMIS), a joint UNIDO-UAE initiative that has established over 100 partnerships with the private sector and has driven cutting-edge technological initiatives. At a side-event entitled ‘Achieving UN SDGs through Entrepreneurship and Innovation: A Regional Perspective for African and Arab Countries’, Rashid

Abdulkareem Al Baloushi, Abu Dhabi’s Acting Undersecretary of the Department of Economic Development emphasised the role of Abu Dhabi’s manufacturing sector in the Emirate’s economic development.

Call for gender balance and equality The Strategy for Gender Equality and the Empowerment of Women (2020-2023), an ambitious and far-reaching gender equality policy, was also launched at the UNIDO General Conference. The Strategy promotes UNIDO’s vision that women and men equally lead, participate in, and benefit from ISID. Speaking at the Strategy launch, Ismail Abdulla, CEO of UAE-based Strata Manufacturing noted that sustainable talent acquisition is colour blind, gender-neutral and based on merit, and underlined the fact gender equality is also good business strategy, citing that the fact that more than half of Strata’s total workforce and 21 of 34 production team leaders are female. Clean technology also fell into focus at the ‘Cleantech as a Catalyst for Climate Action and the Clean Energy Transition’ special sideevent. Delivering his keynote address, Dolf Gielen, Director Innovation & Technology at International Renewable Energy Agency, IRENA IITC, called for a transition to renewable energy and a decarbonisation of power and heat supplies. n

SOHAR Commemoration

SOHAR Port and Freezone hosts 15th Anniversary celebrations

Dr Ahmed Mohammed Al Futaisi, Dr. Mohammed Nasser Al Zaabi and Mark Geilenkirchen, CEO, SOHAR Port at the 15th Anniversary celebrations.

The natural, deep seaport of Sohar in the Sultanate of Oman’s Northern Al Batinah Governorate and its adjacent Freezone, a 4500-hectare development and continually expanding, has attracted global investments of over US$ 26 billion to date. SOHAR has created close to 11,000 direct job opportunities and accounts for almost 5% of the country’s GDP.

OHAR Port and Freezone recently celebrated its 15th Anniversary in a glittering ceremony at the Kempinski Hotel Muscat. The event was conducted under the auspices of HE Dr. Ahmed Mohammed Al Futaisi, Minister of Transport, alongside the presence of ministers, dignitaries, partners and officials of the SOHAR Management. “The port itself is a success story, with regard to several aspects. This especially includes its achievement of attracting large vessels and international investors, accommodating a variety of industries and handling a diverse range and size of general cargoes, containers and other goods,” noted Dr. Ahmed Mohammed Al Futaisi. “We are also proud to be ranked as one of the fastest-growing port and free zones in the world, with investments exceeding

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OMR 10 billion (US$ 26bn). With our strategic geographical location, providing us access to global markets with an outreach of over 2 billion people, SOHAR Port has played a vital role in line with the national Logistics Strategy 2040,” remarked Dr. Mohammed Nasser Al Zaabi, Chairman of the Board of SOHAR Port and Freezone.

Amenity for truckers An agreement was signed for the development of a truck rest area. The upcoming project will have a total investment of OMR 2.5 million (US$ 6.5mn) and will take up an area of 50,000sqm at SOHAR Freezone. Initiated by the Ministry of Transport and spearheaded by ASYAD, the truck rest area will assist in promoting road safety after

The upcoming project will have a total investment of OMR 2.5 million (US$ 6.5mn) and will take up an area of 50,000sqm at SOHAR Freezone.

the significant increase in the number of trucks at the port. Oman Global Logistics Group ‘ASYAD’ was established in 2016 to maximize the economic and financial returns from the Government investments in ports, freezones, land and sea transport and logistics services. n DECEMBER 2019 31

Saudi Logistics Hub:

Leveraging its primacy as the largest economy and its strategic geographical location at the cross roads in the region, the Kingdom of Saudi Arabia hosted first global logistics road-show in UAE with participation of leading logistics business leaders from both countries and the wider Middle East. HE Eng. Saleh Bin Nasser Al-Jasser, Minister of Transport and Chairman, Saudi Logistics Hub.

Saudi Arabia, UAE, to expand cross-border logistics cooperation

he Saudi Logistics Hub, a major government initiative mandated to support the growth of the country’s logistics sector, held its first global road-show in the UAE in collaboration with the National Association of Freight and Logistics (NAFL). Numerous business leaders from the logistics sector attended the recent event at the Dubai International Financial Centre (DIFC), and learned about investment opportunities resulting from Saudi Arabia’s latest initiatives. In 2018, the UAE was Saudi Arabia’s sixth-largest export market and its thirdlargest import market. Non-oil exchange between the two countries reached US$29.2 billion in 2018, a surge of 35 percent over 2017, reflecting the strength of the strategic partnership and the unity of visions between the two countries. While the UAE has consolidated its status as a logistical hub for the Middle East, Saudi

32 DECEMBER 2019

Arabia is one of the largest consumers and producers in the GCC region, accounting for close to half of its economy.

Road-show shows the way Aimed at strengthening Saudi Arabia’s ties with key global logistics markets, the roadshow educated investors and other sector leaders about the Saudi Logistics Hub. The delegation was led by Rami Ibrahim Alnajjar, Senior Adviser to the Deputy Minister of Planing and Information at the Saudi Arabian Ministry of Transport, and comprised high-ranking officials from the General Authority of Civil Aviation (GACA), the Saudi Logistics Hub’s regulator and Saudi Customs. Alnajjjar emphasized the efforts of the Kingdom to transform the country’s logistics sector, as well as the ongoing easeof-doing-business reforms and investment initiatives.

In line with Saudi Vision 2030, the Saudi Logistics Hub seeks to seize opportunities, set targets and outline strategies that generate improvements across infrastructure, processes and procedures while modernizing the governance of the logistics industry in light of greater private sector participation. “The transport and logistics sector in Saudi Arabia is experiencing unprecedented growth, radically transforming its regulatory structure to create a favorable trade environment and drive economic development. The Saudi Logistics Hub has fronted the country’s transformation into a leading logistics hub with multiple pro-investment reforms that encourage trade and transshipment movements,” commented HE Eng. Saleh Bin Nasser AlJasser, Minister of Transport and Chairman of the Saudi Logistics Hub. “As a GCC member country, the UAE is one of Saudi Arabia’s strongest trade

Riyadh hosts 3rd Saudi Logistics Conference Around 2000 experts specialised in the supply chain and logistics sector and several investors attended the recently concluded 3rd Saudi Logistics Conference in Riyadh. At the event, the Saudi Ports Authority announced the largest integrated logistics zone in the Kingdom, exceeding 2mn sqm in its first phase. This is expected to contribute to strengthening the Kingdom's strategic position as a hub in the trade exchange movement, especially between the three continents, Europe, Asia, and Africa. The logistics zone will be a customs depository and re-export platform as part of its efforts to optimise the utilisation of its advanced capacities at Saudi ports. The conference is among the most prominent logistics events in the world and has become a reference for many decision-makers locally and internationally, said Yasser Abdulaziz Al Misfer, General Overseer of the Marketing and Corporate Communication Department, Adviser to the Minister of Transport and Chairman of the Conference Supervisory Committee.

In sync with Saudi Vision 2030 He said the conference aimed at keeping pace with the continuous modernisation in the supply and logistics services industry to contribute to the realisation of the objectives of Vision 2030 in making the Kingdom a global logistics centre that relies mainly on transport with the participation of the public and private sectors. Al Misfer said the conference offered an important opportunity to establish economic partnerships and promising investment opportunities. It discussed several key topics, including “simplifying the concepts of supply chain technology and logistics services and the future of logistics in the Kingdom in the light of

digital development”, as well as investment in Saudi logistics projects. It discussed renewable energy and supply chain issues, future logistics projects, analyses of big data and its impact on companies and organizations. Several workshops and lectures were held to discuss plans to transform the Kingdom into a diversified and sustainable economic system. The flagship session ‘Integral efforts between agencies and harmony with logistical initiatives’ was addressed by a galaxy of VIPs and officials attending this landmark Conference.

Speaker line-up Speakers included Dr. Rumaih Mohammed Al-Rumaih, President of the Public Transport Authority; Eng. Saad Bin Abdulaziz Al-Khalb, President of Saudi Ports Authority; Abdulhadi Bin Ahmed Al-Mansouri, President of the General Authority for Civil Aviation; Ahmed Bin Abdulaziz Al-Hakbani, Governor of the General Customs Authority; Dr. Bashar Bin Khalid Al-Malik, CEO of the Saudi Railways Company (SAR). The session was moderated by Eng. Ayman Mansi, CEO, Industrial Valley. Also discussed were key elements of the success of the supply chain sector in the fourth industrial revolution and industrial intelligence, the telecommunications sector and its impact on the digitization of the supply chain, in addition to the methodology of educational institutions and the readiness of companies to receive new talents and skills with modern science. The conference also addressed the future functions of the supply chain and how logistics is impacted by new road transport technologies. A workshop entitled ‘International Land Transport System (TIR): A New Era to Facilitate Cross-Border Trade and Transport’ was also held at the conference that attracted 7,000 professional visitors.

DECEMBER 2019 33

Saudi Logistics Hub:

partners, with a total trade growth of 39.3 percent from 2014 to 2018. We look forward to leveraging the opportunities that our synergy presents to position this region among the top global destinations for trade and logistics,” the Minister added.

Kingdom invests in its logistics infrastructure Saudi Arabia currently commands a 55 percent share of the logistics industry in the GCC region. Over the last decade, the country has invested more than US$100 billion in its transport and logistics infrastructure, resulting in a comprehensive nationwide network. In 2019, Saudi Arabia achieved a 47 percent increase in the number of new foreign transport and logistics companies, according to the Saudi Arabian General Investment Authority. In addition, total FDI inflows to the country has doubled to more than US$ 4.2 billion in 2018, with a further 10 percent yearly increase recorded in H1-2019. Today, Saudi Arabia has one of the fastest-growing logistics sectors globally and is among the fastest economic reformers in the world. According to the World Bank Group’s Doing Business 2020 report, the country has demonstrated 34 DECEMBER 2019

Saudi Arabia has demonstrated significant improvements, jumping up 72 positions to the 86th place, in the trading across borders ranking, and leapfrogging up 30 positions to the 62nd place, in the ease of doing business ranking. . World Bank Group’s Doing Business 2020 report significant improvements, jumping up 72 positions to the 86th place, in the trading across borders ranking, and leapfrogging up 30 positions to the 62nd place, in the ease of doing business ranking. Saudi Arabia’s impressive reforms are part of the government’s efforts to enhance the business climate and encourage foreign investors to set up operations in the country.

Gateway to three continents The global road-shows provide a platform to promote the latest opportunities for collaboration and investment while building the credentials of the Saudi Logistics Hub as a distinctive logistical gateway to Asia, Africa and Europe. The Saudi Logistics Hub’s global roadshow agenda includes Jordan, Egypt, China, Singapore, Japan, India and Germany to

promote investment opportunities in Saudi Arabia’s logistics industry. The Saudi Logistics Hub is a government initiative formed by leading transport and logistics entities in Saudi Arabia with a mandate to support growth in the sector and position Saudi Arabia as a hub connecting three continents in line with Vision 2030’s bold ambitions. The Saudi Logistics Hub is transforming Saudi Arabia into a globally competitive and efficient export, re-export, and domestic connectivity platform through the enhancement of the sector’s infrastructure, processes and procedures, and regulatory frameworks. This will help logistics players to access one of the fastest growing logistics markets in the world; benefit from recent reforms that reduce the time and cost of logistics’ operations and capitalize on specific investment opportunities. n

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Excellence in Executive Search

Identifying and placing talent for the region’s Supply Chain sector When it comes to identifying and placing talent for the region’s end-to-end Supply Chain sector, the leading Executive Search expert in Supply Chain & Logistics has a keen knack for engaging top-performing senior executives for his clients. Brian Cartwright is a rarity in an industry sector that’s often struggling to find and attract the right calibre of high-performance leadership talent.

36 DECEMBER 2019

Talent Spotting and Executive Search

s with any fast-paced and volatile business, discovering top and perfectly suited talent for the Supply Chain and Logistics industry can be difficult. In many instances there is a dearth of good talent, skills and experience which is why many corporations use the services of high end executive search firms to provide professional placement services. Many clients use them to identify suitable competent candidates that may not be immediately identifiable in the market and, essentially, avoid the cost of a bad hire. Brian Cartwright, the Dubai-based Client Partner at Pedersen & Partners, has over fifteen years of experience in Executive Search and Recruitment, and credited with having successfully carried out hundreds of senior leadership searches for the global Supply Chain and Logistics sector. His Middle East and Africa experience consists of assignments completed over the course of a decade living and working in UAE. He specialises in Supply Chain and Logistics-related functions for top C-Suite, VP, and Director-level positions in global, regional, and country level roles, working with service providers and end-user companies including large listed corporations, family-owned conglomerates, SMEs, and start-ups. During his career, he has successfully managed businesses in the Middle East and Europe. Prior to joining Pedersen & Partners, Cartwright founded his own Executive Search and Leadership Advisory firm, which focused on adding value to organisations, and recruiting senior executives across the entire Supply Chain spectrum. Global Supply Chain recently engaged with the dapper and affable Brian Cartwright, a veritable industry veteran. A regular contributor to the publication, he has been intimately involved with the industry and across a spectrum of toptier line and functional managers for a considerable period of time in this region through his professional responsibilities and extensive networking. Here he offered us insights and perspectives on his work and the state of the ever-evolving, everchanging and industry at large in this exclusive interview. Global Supply Chain (GSC): Give us the brief 30-second spiel on Pedersen & Partners? Brian Cartwright (BC): Pedersen & Partners is a leading international Executive Search

firm, founded in 2001. We operate 57 wholly owned offices in 53 countries across Europe, the Middle East, Africa, Asia and the Americas. Dubai was our first office in the MEA Region, opening in 2008. Since then, Pedersen & Partners has established offices in Egypt, South Africa, Nigeria, Kenya, and Saudi Arabia. We combine our comprehensive experience in emerging and developed markets with an extensive global footprint and proven expertise in making successful executive placements to ensure that our clients grow and expand into new markets while simultaneously remaining competitive. Our novel ‘Best Team Forward’ approach ensures that our service goes beyond standard solutions for executive appointments. Instead, we strive to solve complex senior recruitment needs for our clients, from top-level management and C-Suite level placements to complex board governance issues, and to become their trusted advisors. We are devoted to building and sustaining authentic long-term relationships with our clients and candidates, staying focused and engaged on providing precise support and wellrounded advice to secure the absolute best leadership teams. GSC: As the Client Partner, Supply Chain & Logistics, what specifically does your work entail? BC: Ultimately, I support companies who are hiring senior leadership roles in the global Supply Chain and Logistics sector, although it’s probably more accurate to say I am in the knowledge and relationships business. It’s my job to constantly engage with people in the market to stay abreast of the trends, challenges and opportunities across the global supply chain whilst keeping a close eye on the top performing leaders in the sector and building relationships with them. My daily goal is to constantly expand my knowledge of the market by meeting and speaking to people. When clients engage me to conduct an executive search, they are benefiting from my knowledge and my ability to open discussions with key people in the market, including people who don’t have a public profile online, or who are not even considering a change of jobs right now. My ability to successfully complete each search is a by-product of my involvement in the sector every day. Whenever I interact

Brian Cartwright with people, it’s a discussion based on trust and deep insight and knowledge of the people, the companies and the sector I specialise in. GSC: How significant is the Supply Chain and Logistics practice in this region for Pedersen & Partners? BC: It is of major significance. Keep in mind that Supply Chain and Logistics can be seen as a functional specialisation, but it’s also a sector which spans every practice group within the firm across the globe. Add to that a challenging global economy which is undergoing rapid and often unpredictable changes, as well as some unique regional challenges for the end users and supply chain solutions providers, and it becomes evident – a well-managed or poorly-managed supply chain can have a huge impact on a business, whether positive or negative. Pedersen & Partners has been partnering with clients in this region since before 2008, when they launched the regional office in Dubai, and most of those clients are focused on improving the efficiency of their supply chains, which can only be achieved by having the best people onboard to lead the way. DECEMBER 2019 37

Talent Spotting and Executive Search

GSC: How has the rise of online social networking platforms impacted the recruitment business? BC: Executive Search relies on a deep knowledge of the candidate pool, of the sectors in focus, and on direct access to senior decision makers and leaders. The social networking platforms are helpful in the sense that they provide data (the Who’s Who), but that data is often incomplete. Above all, access to data does not replace a professional network and established relationships. GSC: What professional skills, traits and attributes are most sought after by employers in the Supply Chain and Logistics sectors? BC: There is a new wave of Supply Chain leaders coming through the ranks who are focused on adding digital transformation skills and experience to their traditional Supply Chain competences. Most of my Supply Chain contacts have embarked on some form of education or training to raise their game in the area of digital transformation. Most organisations are working on digitising processes, or developing omni-channel go-to market strategies, and because of this it’s imperative for Supply Chain leaders to fully understand and be able to implement digital strategies, mapping and matching the physical Supply Chain processes to the digital side. Next to this, and arguably more important, is the ability to adapt to change, and be flexible and open to ideas and new working practices. These days, people need to be constantly ready to reinvent themselves as job roles are evolving. GSC: How competitive is your business? BC: Even though deep expertise in emerging markets has been the cornerstone of Pedersen & Partners’ global operations since its early days, our rapid growth has enabled us to put together a team that excels at combining the best knowledge hubs across the firm and expanding our specialisation to developed markets and various geographies. Our ‘Best Team Forward’ approach ensures that we can convene the best power team every time, engaging colleagues from offices across the globe to tackle each client’s demands. The engagement with the client can originate anywhere in the world, and can be transferred to anywhere else in the 38 DECEMBER 2019

world, bypassing borders but maintaining the same level of competence and support that our clients have come to expect from Pedersen & Partners. This can be secured due to our unified business approach, and our complete and open flexibility when partnering with a client. In a highly fluid search environment, and with executive functions constantly evolving to encompass increasingly digitised responsibilities,“competitive” means full and relentless dedication to aligning the client’s strategy, ownership structure, growth vision, and culture with the absolutely best-suited leadership team that preserves its business qualities, but also has the humanity, authenticity, empathy, and openness required to succeed.

Best Team Forward’ approach ensures that we can convene the best power team every time, engaging colleagues from offices across the globe to tackle each client’s demands.

We always take into consideration current global trends, such as digital transformation, cyber security and risk management, regulation and compliance, diversity and transparency, reputation and integrity, independence and dedication, and shareholder empowerment when we commit to a client partnership. GSC: What opportunities and challenges confront you going forward? BC: As with all the other professional advisory industries, Executive Search has rapidly evolved and is incorporating new trends into the operations, from technology upsurge with algorithm-assisted selection of candidates to detailed assessment and prognostics of executive potential once brought on board. Although there is the sense that recruiters will have to adapt to these challenges

themselves in their efforts to advise clients and candidates on the best way forward for businesses, from start-ups to MNCs, the fundamental basis of all partnerships between clients and search experts – building solid, trust-based relationships – will remain paramount. GSC: Which are the top three most promising countries in the region for recruitment for the short and /or long term? BC: In the MENA region, the top three are certainly Saudi Arabia, the UAE and Egypt. We also see strong growth potential in Iraq, given the need to further develop local infrastructure and the Iraqi consumer market itself. GSC: What are the expansion plans for Pedersen & Partners in the region? BC: Dubai is ideally located as a hub for the MENA region, and we already have presence in Saudi Arabia and Egypt, the other two largest markets. Rather than opening new regional offices, we intend to grow our MENA presence in the form of a larger team, with more consultants focusing on additional sectors and functional areas. GSC: Describe your relationship with your clients? BC: We work alongside our clients as advisors and partners, which in my opinion is the only way to get the best possible outcomes. We need to work collaboratively leveraging our strengths–the strengths of both their organisation and of Pedersen & Partners. An excellent example of this is when we can open up discussions with key senior executives who weren’t previously considering a move; when the organisation we are representing has a strong reputation as an employer of choice, it helps to move the discussion forward. Another great example is that for the partnership to work well, it is imperative that the end-employer can manage an efficient and timely internal recruitment process. It is pointless for us to attract the right people and gain their interest, if they later withdraw from the process themselves because the employer was disorganised and gave a bad first impression. The good news is that we are wellequipped to help our clients to position themselves better. We can employ our deep industry knowledge and experience, and share best practice advice when it comes to attracting and retaining high-performance business leaders. n

Innovating Business & IT

Abu Dhabi Airports and Etihad Cargo set to transform logistics infrastructure Focus: Abu Dhabi Airports-Etihad Cargo

A multi-phased infrastructure development strategy has been agreed upon by Abu Dhabi Airports and Etihad Cargo to advance the freight capabilities of the Emirate. The plan includes a refurbished and dedicated pharmaceutical handling facility by end of Q3-2020 to be followed by a state-of-the-art new Etihad Cargo terminal.

bu Dhabi Airports and Etihad Cargo, the cargo and logistics services arm of the Etihad Aviation Group, have recently announced a major project to enhance Abu Dhabi International Airport (AUH) into a sophisticated global air cargo centre of excellence. Abu Dhabi Airports and Etihad Cargo will implement a multi-phased cargo infrastructure development strategy, starting with the imminent upgrade of Etihad’s existing air cargo terminal facilities on the Southside airport perimeters. The programme will culminate with the inauguration of Etihad Cargo’s future home, a new state-of-the-art air cargo terminal in the East Midfield section of the airport,

40 DECEMBER 2019

an area designated by Abu Dhabi Airports for future integrated cargo, logistics and integrator activities. The plans revealed that the first phase, the upgrading of the Southside Etihad cargo facilities, will commence immediately and is due for completion in phases between fall 2019 and end of Q3-2020.

Enhancing RFS and pharmaceutical logistics The scope includes the enhancement of RFS (Road Feeder Services) loading docks with levelers, insulation and floor works for faster and more efficient loading with

stricter temperature controls, increased storage space and additional build-up and breakdown zones to improve production workflow, and upgraded cool chain facilities for both its fresh and pharma handling and storage operations. This phase will not only increase efficiency and productivity in the existing facilities to support air cargo growth at Abu Dhabi International Airport for the coming five years, but it will also enhance Etihad’s pharmaceutical logistics capability through a dedicated Southside Pharma Terminal, adding 3,500 sqm of space for temperaturecontrolled handling and storage across both 2-8 degrees Celsius and 15-25 degrees Celsius categories.

Focus: Abu Dhabi Airports-Etihad Cargo

Etihad’s pharmaceutical logistics will have a dedicated Southside Pharma Terminal, adding 3,500 sqm of space for temperature-controlled handling and storage across both 2-8 degrees Celsius and 15-25 degrees Celsius categories. .

This further complements Etihad Cargo’s recent success in the domain, having become the first airline in the Middle East to gain CEIV Pharma certification for both its airline and terminal operations in January.

Expansion on the cards Furthermore, with a focus on continued growth mid and long term, Abu Dhabi Airports and Etihad Cargo have agreed as a next step to designate a plot of land at the East Midfield site. The team will soon be inviting expressions of interest to bid for the design and construction of Etihad Cargo’s sophisticated, next generation facility that will mark the creation of one the world’s most advanced and automated air cargo terminals. The facility will be designed to handle incremental UAE import and export demand, boost Etihad’s growing cargo network flows as well as cater for the

significant rise in E-commerce and express mail and cargo operations. “Geographically, Abu Dhabi is situated at the heart of the east to west trade routes. Additionally, the transport and logistics fabric of the Emirate of Abu Dhabi is well planned and structured to create undeniable potential to grow the cargo traffic exponentially,” asserted Bryan Thompson, Chief Executive Officer, Abu Dhabi Airports. “Today we are putting in place the right foundations and frameworks for our future cargo activity, which in a few years will reshape this industry for the Emirate of Abu Dhabi. Abu Dhabi is the future’s cargo hub for the region and the world,” he added.

Southside investment “Today’s announcement is major milestone in the development of Etihad Cargo’s logistics strategy that will see our hub continue to

grow as one of the world’s most important trade facilitators connecting East and West,” commented Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group. “The immediate investment in the Southside terminal will deliver a step change in the efficiency and capability of our existing facilities while the announcement of the development of a new facility reinforces Etihad’s commitment to develop Abu Dhabi as a world class hub for the logistics of the future,” he continued. In addition, Abu Dhabi Airports is setting the ground work for the first phase of a bonded, non-bonded and free zone area adjoining the airport designated as ‘Al Falah Free Zone’, which it will develop as a prime location for E-commerce fulfillment and logistics warehousing. The goal is to transform the nation’s capital into a globally recognized, multimodal cargo hub driving sustainable economic growth in the Emirate. n DECEMBER 2019 41

Abu Dhabi Airports (ADAC)

Abu Dhabi Airports awards contract for development of lounge at Midfield Terminal Building The prestigious contract has been awarded to a new joint venture between National Aviation Services (NAS) and Airport Dimensions

bu Dhabi Airports has awarded the Midfield Terminal Building’s (MTB) lounge construction and management contract to a joint venture between National Aviation Services (NAS) and Airport Dimensions, which combines NAS’ regional operational experience and Airport Dimensions’ expertise in managing passengers’ needs at international airports. Spanning over 3,500sqm, the new lounge will allow customers to enjoy premium lounge services, in line with Abu Dhabi Airports’ renowned Arabian hospitality and delivering a seamless and comfortable passenger experience. The lounge will be located at the heart of the new Midfield Terminal, offering access to independent travelers, regardless of the

42 DECEMBER 2019

airline they are traveling with or the class of their ticket. It is accessible to passengers who are departing or transiting through Abu Dhabi International Airport, forming a significant part of the airport’s world-class facilities. “Our partnership with NAS and Airport Dimensions represents an exciting development for the future passengers of the Midfield Terminal, as the new lounge will provide an unparalleled customer experience for those travelling through Abu Dhabi International Airport,” remarked Bryan Thompson, CEO, Abu Dhabi Airports. “NAS’ operations within the Middle East mean that its regional knowledge will be invaluable in bringing this project to completion, whilst Airport Dimensions’ extensive expertise in airport lounge design

and management will help to create a lounge that leaves passengers refreshed,” he added. Abu Dhabi Airports’ partnership with NAS and Airport Dimensions to develop and operate the new lounge represents Airport Dimensions’ first project in the MENA region, adding to its global portfolio of 22 lounges. Airport Dimensions manages lounges in some of the world’s busiest airports, including London Heathrow and Hartsfield-Jackson International Airport in Atlanta, Georgia. NAS currently operates 40 lounges across Africa, Middle East and Asia, including the VIP Terminal with ‘meetand-assist’ services at Abu Dhabi International Airport. n

An artist’s rendition of the Midfield Terminal Building at Abu Dhabi International Airport.

Abu Dhabi Airports signs MoU with Beijing Daxing International Airport Agreement facilitates exchange of best practices and enables future collaboration In the presence of Sheikh Mohammad Bin Hamad Bin Tahnoon Al Nahyan, Chairman, Abu Dhabi Airports, Bryan Thompson, CEO, Abu Dhabi Airports, has signed a Memorandum of Understanding (MoU) with Yao Yabo, President of Beijing Daxing International Airport (BDIA), establishing a framework for the sharing of best practices and the exploration of potential opportunities for future collaboration. The MoU was recently signed at the BDIA Management Center in Beijing, China The signing of the memorandum follows the opening of the Beijing Daxing International Airport and ahead of the opening of the Midfield Terminal at Abu Dhabi International Airport.

Both parties agreed to establish mechanisms for interactive contact and the exchange of knowledge and best practices, alongside sharing ideas on developing their airports and advancing the wider aviation industry. Also present on the occasion were Tareq Abdul Raheem Al Hosani, Vice Chairman of Abu Dhabi Airports; Tony Douglas, Chief Executive Officer of Etihad Aviation Group, and Ahmed Al Qubaisi, Senior Vice President, Government, International and Communications of Etihad Aviation Group. “The Chinese tourism and business market is important to the economy of Abu Dhabi and the wider UAE. Abu Dhabi is a popular destination for Chinese travellers, and tourist numbers are continuing to increase year on year,” commented Thompson on this occasion.

DECEMBER 2019 43

Future Mobility

undreds of automotive and transport leaders from across the world recently descended in Dubai to examine global mobility options in a sustainable era. Experts headed to the 5th International Conference on Future Mobility (ICFM) – the region’s most eminent annual gathering of influential sustainable and intelligent mobility. Here, they heard from specialists and regulators in the vanguard of vehicle and transport design map out the future of travel. There are major change is on the horizon, according to Abdulla Abdulqader Al Maeeni, Director General, Emirates Authority for Standardization and Metrology (ESMA), which organised the conference. “The automotive and transport sector faces a future that will be fundamentally different from its past,” remarked Al Maeeni.“Numerous trends ranging from energy decentralization to the Internet of

A panel discussion at the International Conference on Future Mobility.

International Conference on Future Mobility (ICFM).

Experts discuss futuristic transport trends Things and Artificial Intelligence are coming together to create drastic changes in the transport and mobility ecosystem which will be in focus at this year’s conference,” he continued.

International cast Delegates heard from speakers comprising regulators, vehicle and transport designers and operators from the USA, Canada, Norway, Germany, the Netherlands, Finland, Saudi Arabia and the UAE. The former Chief Information Officer of the City of Palo Alto and quantum computing expert, Dr. Jonathan Reichental introduced new transport modes, including autonomous air transport and groundbased drones that will change the way cities are designed. “Mobility is becoming a much more diverse space with the introduction of many new forms of transportation innovation. Each one has advantages and challenges that must be evaluated and addressed,” 44 DECEMBER 2019

he stated.“As our transportation options become more deeply integrated into digital networks, the security attack vectors are also increasing. This is an area of focus as more connected transportation comes online,” he added. Dr. Reichental applauded Dubai’s autonomous vehicle trials and says openness to experimentation will be key to future transport success.“There are so many interesting innovations emerging in the mobility space that we need to look at each and understand their benefits and challenges,” he noted.

Personal transportation “There is a trend towards more personalised transport such as scooters, ebikes, and mopeds. In addition, there are greater demands being placed on the availability of electric charging stations as our mobility options become electric-powered,” he further observed. Edoardo Gianotti of the Sustainable

Transport Division of the World Forum for the harmonization of vehicle regulations (WP.29), a United Nations outfit, said he will be out to canvas Middle East support for global standards and share the latest in developing global technical regulation for electric vehicle safety. Regulations on a global scale, he said, are vital to the survival of vehicle makers. “On account of the relatively small volume of electric vehicles and their components currently produced, any degree of convergence between regulatory obligations at the national and international level can result in economies of scale and cost reductions for automotive manufacturers – critical in the context of economic recovery and the general cost-sensitiveness of the industry,” he explained. “Different national regulations create barriers to trade, requiring manufacturers to design vehicles to meet each individual standard and to test them in each country. These costs are passed on to the consumer,” he warned. n

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Landmark Group

Landmark Group inaugurates GCC’s new US$ 273mn Distribution Centre This first-of-its kind facility can handle multiple load units such as pallets, cartons, pieces and garments-on-hanger Landmark’s new sophisticated Distribution Centre (DC) redefines and revolutionises supply chain in the region; enhancing Dubai’s position as a global hub for innovation and trade. The High Bay Warehouse is the tallest structure in the GCC and first DC to use the Hypoxic Fire Prevention System

he Landmark Group today announced the opening of its fullyautomated Mega Distribution Centre (DC) at JAFZA, Dubai – the largest of its kind in the GCC. With distribution being the backbone of retail, the Group invested over AED 1 billion (US$ 273 mn) with a firm strategy to further strengthen its supply chain capabilities and build a facility that can serve as a logistics and distribution hub for the region. The Mega DC will also play an integral role in enhancing Dubai’s position as a hub for global logistics and trade. “The opening of Mega DC marks a huge milestone for Landmark Group. As a home-grown brand present in this region for over 46 years, we remain committed to this market and are always looking ahead. Through the years, we have seen Dubai emerge as a global and economic business hub, giving us the opportunity to innovate and invest in the most-advanced technology and processes for our business,” commented Renuka Jagtiani, Chairwoman and CEO, Landmark Group.

46 DECEMBER 2019

Landmark Group

The Outbound features 36 docks, of which 10 are dedicated for GOH, and can handle up to 90,000 cartons and 250,000 GOH every day. Boom conveyors in the facility also ensure faster off-loading of containers. All handled across 33 levels with 1,300 ‘robotic multi shuttles’, 94 lifts and 28 workstations. Another first for the GCC is the DC’s High Bay Warehouse at 43metres making it the tallest in the region and the first rack clad building in the Middle East. This also the first Distribution Centre to use Hypoxic Fire Prevention System with an oxygencontrolled environment. It’s Automatic Storage and Retrieval System can store over 36,000 pallet positions, serviced by 41-metre tower cranes.

Advanced technologies harnessed Sultan Ahmed Bin Sulayem, Renuka Jagtiani and Rahul Jagtiani at the inaugural ceremony.

Over AED 1 billion spent with a firm strategy to strengthen its supply chain capabilities and build a facility that can serve as a logistics & distribution hub. “Today, innovation drives economic growth and development, greatly influencing modern industry. We are very proud to have built this fully-automated facility, which will serve our customers even better by ensuring speed and agility of operations but will also project the future of supply chain for our region,” she continued.

Facility beyond precedent The first-of-its-kind facility in the region was officially inaugurated by Sultan Ahmed Bin Sulayem, Chairman of the Ports, Customs and Free Zone Corporation, and the Jebel Ali Free Zone Authority. Speaking on the occasion, he remarked that Landmark Group’s Mega DC is in line with the Smart Dubai 2021 strategy aimed at the digital transformation of the city of Dubai. “Your adoption of technological tools like Artificial Intelligence, Big Data, IoT, robotics and automation to drive logistics solutions is in step with what we do at DP World and JAFZA. Customers are looking for speed, transparency, efficiency and effectiveness,” he observed.

“A new approach is necessary to meet their demands along the supply chain. We believe Landmark Group is innovating to enable smarter trade. By promoting technological advances that benefit the industry, the economy and the community in which we operate Landmark Group and DP World are united in our journey,” he added whilst thanking Landmark Group for choosing JAFZA to locate its sprawling mega distribution and fulfillment centre. Also present on the landmark occasion was Rahul Jagtiani, Group Director, Landmark Group.

Sophisticated Distribution Centre The Mega DC is designed to process 300 million units per year, inter-changeably handling pallets, cartons, pieces and garments-on-hanger (GOH). Built with a storage capacity up to 2.2 million cartons and 2 million GOH, the new distribution centre has 10 automated and 3 manual docks to receive over 74,000 cartons per day.

At the heart of Mega DC is a super-fast and efficient shuttle system for automated handling of cartons and totes with an InterAisle Transfer Technology. “The Mega DC stands as a testimony to the Landmark Group’s investment for the future. We have built the facility with a focus on digital innovation, using best-inclass robotics and automation that redefines the future of supply change in the region. In a fast-paced retail world where need for speed, flexibility and agility in the market is higher than ever before, our facility has been designed to meet the changing market needs, increase productivity and cater to the business of tomorrow,” noted Mihin Shah, Chief Supply Chain Officer, Landmark Group. In line with the Group’s sustainability journey, the Mega DC is EHS (Environment Health Safety) certified and plans to meet 50 per cent of its energy requirements through an 8.2 MWP rooftop solar system, the single largest in the region. Founded in 1973 in Bahrain, the Landmark Group has successfully grown into one of the largest and most successful retail organisations in the Middle East and India. An international, diversified retail and hospitality conglomerate that encourages entrepreneurship to consistently deliver exceptional value, the Group operates over 2300 outlets encompassing over 30 million square feet across the Middle East, North Africa and the Indian sub-continent. n DECEMBER 2019 47

Spotlight: Dubai Metro

Serco ME’s rail experts tackle an overcrowded public transport system An example of effective solutions in public transport systems can be seen in how Serco Middle East effectively delivers essential public services punctually and seamlessly. Alex Rentier, Managing Director, Dubai Metro and Tram, Serco ME points to the challenges of stressed and burdened public transport services and how it works with rail operator RTA to address problems.

midst the presence of modernised public transport solutions across today’s most advanced cities in the world, one of the key challenges that these systems continuously face is the burden presented by an overcrowded public transport segment. Simply put, an overcrowded public transport system will result in crowding challenges across stations, terminals and the vehicles itself. Safety is of course the most important concern, but crowd behaviors can also have key impact on operations, such as irregularities, delays, and affecting the whole attractiveness of the public transport system. A decreased comfort level, longer travel time and psychological and emotional distress can also impact wider mobility patterns in cities and shift commuters to less sustainable modes. Serco’s Middle East Middle East (ME) Division continued to oversee the

48 DECEMBER 2019

provision of world-class services to Dubai’s public transport sector throughout 2019 via supporting the Emirate’s Roads and Transport Authority’s (RTA) integrated transportation modes by catering to more than 1.3 million passengers daily on the Dubai Metro.

Streamlined services Equipped with years of experience and the required tools, Serco ME’s team enhanced its position as a leading provider of transport operations and integrated traffic management services in the region through successfully managing the high volume of passengers across both red and green lines while implementing effective crowd control services measures throughout the entire period of various special events ranging from the religious and other annual national holidays.

Alex Rentier, Managing Director, Dubai Metro and Tram, Serco ME By attaining years of experience in operating railways globally and working in partnership with its clients and an array of competent professionals, Serco devised a wide range of crowd control scenarios that were ready to be deployed if and when required, including client communication, safety arrangements, security measures, operational controls and maintenance preparations.

The high confidence that the RTA has placed in Serco to deliver a world-class level of safety, operational performance and customer service was reflected this past March when the organisation signed a contract with Serco extending the operation and maintenance of the Dubai Metro to 2021.

Metro usage on the upswing “Public transport has witnessed a surge in popularity globally in recent years and rising congestion in urban areas, including Dubai, is a primary factor. As a result, there is pressure to guarantee that existing public transport infrastructure is utilised to its maximum capabilities in order to serve customers’ needs and ensure their satisfaction,” remarked Alex Rentier, Managing Director, Dubai Metro and Tram, Serco Middle East. “We at Serco are always prepared for

RTA integrated transportation modes by catering to more than 1.3 million passengers daily on the Dubai Metro such growth and fully believe in continued development in terms of financial efficiency of public transport. This is proven with us successfully as we deliver operational performance levels on the Dubai Metro with a high train service availability of 99.9 per cent and a punctuality of 99.7 per cent in 2018, with 204 million journeys throughout the same period,” he continued.

Rail Icon “The Dubai Metro has evolved to become an established icon of the regional and global transport industry and we take great pride in our partnership with RTA – who have played a huge role in the development

of integrated and sustainable transportation systems for Dubai’s residents and visitors,’” he added. Serco are the first rail operators in the Middle East and have set the benchmark for rail management expertise, providing world-class services and a safe operation to the public and the communities it serves. In addition, they interact directly and effectively to manage congestion, while practical solutions such as flexible queue management and station entry budgeting are incorporated into all crowd control plans – which are always developed and executed in close cooperation with relevant stakeholders such as building owners, police and emergency services. n DECEMBER 2019 49

DP World Innovation Guide: The Global Stage

Digital choices usher brighter horizons for cargo owners DP World and The European Tour are using data-intelligence to drive game-changing innovation on a global scale

usiness owners once built their reputation in the local marketplace by relying on a small band of loyal customers to keep money in their tills. These merchants would now quake at the scale of today’s commercial landscape as businesses grapple for the attention of foreign customers, finetuning their products to satisfy different preferences, challenges and opinions. To navigate this vast modern marketplace, today’s business leaders are turning to technology to produce local solutions on a global scale. “Trade was once a manual industry,” remarks Simon Pitout, Vice President, DP World. “However, to improve the value of this industry, you need to understand

50 DECEMBER 2019

where your system has inefficiencies, and develop solutions to address it,” he observes.

Technology transformation By using technology that turns each piece of cargo into a data point, DP World is transforming trade into a digital industry, Pitout explains, pointing to the automated gates at the company’s ports, each using image recognition to verify and track containers as they move to-and-from ships. “By tracking the real-time movement of cargo we can pass on a level of transparency to our clients that let them develop new methods of servicing

customers around the world,” he adds. This data-driven insight is even transforming how DP World’s partner, The European Tour is shaping golf fans’ tournament experience. At the 2018 Ryder Cup, for example, The European Tour used data-gathering sensors and locationbased mobile technologies to track the movement of the 270,000 fans who attended the three-day event. “Understanding how people move around the course allows us to tailor our services,” says Michael Cole, Chief Technology Officer at The European Tour. “Geo-fencing, for example, allows us to send fans particular offers or information depending on which part of the course they are in,” he states.

Game Changing Sport helps companies reach new markets; impressive service keeps them there Golf is one of the world’s truly global sports, with courses spread across 209 of the world’s 249 countries. In the sport’s two biggest markets, the US and Europe, golf drives more than US$ 200bn in economic output annually. The game’s global diffusion mirrors the growing opportunities for companies of all sizes to access developing markets around the world. No longer relegated to entering foreign markets by shops alone, businesses can now sell direct to consumers through digital platforms and websites. This revolution has been underpinned by change in the speed, quality and operational transparency of the logistics industry.

Efficiency

Technology sophistication As this technology becomes more sophisticated, strategists will be able to sync fans movements with the availability of particular services such as washrooms or food stalls. By logging and analysing how people act and react in particular situations, data can help business leaders to create bespoke solutions for each client around the world. For example, when a surge in demand for new cars began to put pressure on the Philippine’s biggest car carrier port, DP World turned to the data. Combining weather pattern and trade flow data with an analysis of local infrastructure, the company’s leaders

To build a solid reputation in a foreign market, companies need to be sure that customers receive their items quickly and are kept abreast of any issues that arise. We drive this efficiency by harnessing the availability and analysis of data at every point of a purchased item’s journey. For example, when containers full of golf merchandise arrive for shipping our High Bay stacking system crunches the cargo data to determine which items need unloading first. This information is then fed directly into a robotic stacker that arranges the containers 11-high, saving space while allowing operators to access a container at any time. As a global team, combining new technologies to address specific challenges allows us to support companies’ global ambitions by providing them with efficient crossborder solutions.

Precision Innovation is in our DNA. We have used data to enter spaces that no other industry players would venture into. It is about getting our customers’ products to market through reliability; speed and cost. Giving businesses real-time information about where their items are in the delivery process allows them to

develop innovative new delivery options. For example, if you are an apparel marketer in the UK and you have a customer in Japan, your customer will want to know when they can have their goods at the agreed-upon price. Our digital solutions allow you to better communicate delivery options to your customer: If you pay X, you can have it in 10 days: if you pay Y, you could have it in 5 days; if you pay Z, you can have it in three days. This transparency makes operating a global supply chain feasible for a company of any size. As magnetic trains and drones make journey times shorter, package-tracking will help customers organise their diaries to accommodate a same-day or even same-hour delivery. Our investment in data-tracking and analytics gives our business partners a head start in developing the services that will define the future of global retail.

Globalisation The greatest advantage by far is our ability to help open up new markets for our customers, especially in promising economies such as Africa and South America where we are currently making investments. For businesses, this has the potential to widen market boundaries. Our role is to show our customers the possibilities of new markets and allow them to develop that possibility. This is one of the reasons why golf is such a great platform for DP World to invest in—it’s a sport that creates its own economic ecosystem as it expands into new territories. At DP World, we can then support the businesses that are connected with golf, or any other sport for that matter, with innovative and creative logistics solutions. For our customers and partners, we believe that the future is as open, exciting and inviting as a wellmaintained golf course. (Contributed jointly by Daniel van Otterdijk and Simon Pitout)

DECEMBER 2019 51

DP World Innovation Guide: The Global Stage

devised a solution that could support the boom in automotive imports.“We built up an automated service to unload vehicles from cargo-ships and store them in weatherproof multi-story storage facilities before using automated tracking systems to unload and deliver them,” explains Pitout.

Brand’s new stories

Daniel van Otterdijk SVP - Group Communications DP World Daniel is the Senior Vice President of Group Communications at DP World. He is accountable for building and delivering the Group’s communication and brand strategies; managing our stakeholder communications across DP World Group and across all communications disciplines. Daniel also advises DP World’s Group Chairman and CEO, as well as the global leadership team, on all communications and brand-related matters. Daniel is a seasoned communications specialist with a wealth of international experience spanning over 20 years across Europe, the Middle East, the Americas and Asia. He has worked in various markets and industries including Energy, Oil and Gas, Medical, Retail and Technology. Prior to joining DP World, Daniel worked for Royal Dutch Shell for 17 years as a communications specialist, advising on corporate brand-building, reputation management and internal and external communications. He has served as Non-Executive Director in the Communications industry.

52 DECEMBER 2019

While businesses once relied on a lack of local competition to ensure customer loyalty, today’s global marketplace buzzes with choice. For brands to stand out to modern consumers, they have to be telling new stories. “We’re number two in the marketplace behind the 800-pound gorilla of the PGA Tour,” acknowledges Rufus Hack, The European Tour’s Chief Commercial Officer. “And knowing how deep their pockets are, the only way we will win – whether that’s viewer numbers or revenue – is to do things differently.” In 2018, Austria hosted the world’s first Shotclock Masters, the European Tour’s new competition format which gives players just under a minute to take their shot, as referees follow on buggies fitted with huge digital clocks to keep the players up-tospeed. The format was designed to combat the slow play that dogs the game’s traditional format, but it also serves as a platform for The European Tour to spark conversation.

Technology Precision “What this technology does is gives us a more precise reading of where the players are and how they’re moving around the course,” notes Hack.“In the future, this insight could be used to .develop new commentary formats or even intelligent new ways of playing the game,” he adds. Look closer and the stories buried in these data flows can reveal areas of systematic inefficiency, informing product innovation and investment. When DP World analysts studied the flows of cargo travelling to-and-from its Mumbai port, they noticed that a vast quantity of it was travelling via the Mumbai-Pune Expressway, a notoriously congested and dangerous route. This insight influenced the company’s move to partner with Virgin Hyperloop to build a magnetic train between Mumbai

Simon Pitout VP – Commercial & Marketing DP World Simon Pitout’s career spans over 20 years in the logistics, shipping and terminal industry. He joined DP World in 2008, initially as Commercial Director for DP World’s Middle East and Africa Regions, before being appointed as Vice President, Commercial in 2012. Previously, he held roles at Maersk Line South Africa and APM Terminals and across markets including South Africa, Denmark and Holland with a focus on inter modal operations, business development and commercial leadership. At DP World he has built on his experience in a role that is focused on customer solutions, identifying new opportunities and maximising shareholder value. and Pune. DP World Cargospeed, which was approved by regional government earlier this year, will run 160 km between the two cities, cutting the three-and-a-half hour journey time to 35 minutes. When built, DP World Cargospeed, using Hyperloop technology, will serve as a testament to data-driven innovation. It should also act as a reminder to businesses competing in today’s global market: companies fuelled by data move the fastest. n

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Expert Opinion

Inventory Velocity and Yield Maximisation:

Professional Pointers There are few things more critical to the success of businesses across multiple industry verticals than a robust and well-rounded inventory management process. The issue and dilemma with inventory control is that it’s tough to know where to even start in the first place. With inventory management, there can be dozens of moving pieces. It’s made even more complicated by the fact that there’s no one right way to manage inventory. Tom Craig, President LTD Management, Pennsylvania, USA, and a regular contributor to Global Supply Chain, provides a set of universal guidelines that one can tweak and improve efficiencies and maintain a high level of organisation in the system. Successful inventory management is the result of rock-solid data analysis asserts Tom Craig in this landmark contribution—Editor.

54 DECEMBER 2019

Expert Opinion

Do you have inventory problems? Are you inventory-rich and out-of-stock at the same time? The Reality and the Problem: Speed is the new competition and is an explicit and implicit requirement of retailing and manufacturing in today’s reality. It applies to both B2C/D2C and B2B and across industries. Customers want their orders and products faster. They want perfect orders-complete orders delivered on time. Or store replenishments should be delivered complete and on time. In a time of growing customer power, failure is not an option. You know that not having needed products in stock is not new. These incidents were more tolerated until e-commerce and its order delivery velocity—and customer expectations changed. No substitutions, no delays, no exceptions. Yet many companies, especially midsize, struggle to achieve the perfect order customer metric—perhaps the best company metric for growth and success. This happens for holidays, promotions, and everyday sales. It happens when getting products made and delivered. Trade wars and recessions bring external confusion to the underlying issue. How are you doing with all this disruption?

Scope of Inventory The situation about inventory can be broader and more involved than you may imagine. For starters, having too much inventory (often not needed or not really saleable items) while also being out of stock (of needed products) is not without costs. How are you doing here as to having too much inventory and being out of stock? Have you asked about your days of inventory or inventory turns? Are you satisfied with your turns? Include finished goods, raw materials, components, and other items used for production and sales in that inventory. They all mean money spent. In calculating turns or days of inventory, also include inventory in transit. That can be a significant number and should not be excluded. Otherwise, there can be an understatement of your inventory investment—and its opportunity cost. Ask yourself if you have too much inventory. Are you inventory-rich? Inventory rich means working capital tied

up that could be used for other purposes. Imagine the opportunity cost. Think about what else you could do with that money tied up in inventory that is sitting in the warehouse instead of turning into sales and cash. You should see if there is a correlation between your inventory turns and operating margin.

Inventory rich means working capital tied up that could be used for other purposes. Imagine the opportunity cost. Remember too that a lot of inventory sits in storage. No sales are made. No cash is created. Here money is tied up as it gathers dust. Basically, it comes down to this. Products are supposed to flow, not sit. From a lean view, this is waste. Moving inventory more quickly is important to the new speed reality and to good financial practice. The problems with inventory velocity, too much inventory, and out of stock are more than finished goods. They include components, raw materials, assemblies, and other items. Out of stock here and rushes to meet customer orders can cause firefighting and the extra expenses of expediting. Do you firefight? Why? What are you doing about it?

Warehousing costs Hidden also is your warehouse cost impact. That extra inventory takes up warehouse space. If an outside provider is being used, those pallets and cases are on the invoice. If at the company warehouse, there is the extra cost and lost productivity to pick items and orders because of additional time— travel costs—to do it. Being out of stock means extra outlays, lost sales or delays in order completion— and being paid. You know this. Add in the expediting expenses. So less money hits the P&L or more money is tied up in the balance sheet. The above is not the only impact. There is the timeliness of when products are received versus when they are needed to sell. This involves inventory revenue yield maximisation.

DECEMBER 2019 55

Expert Opinion

Revenue yield management is applicable in supply chain management when inventory is viewed as the supply whose revenue yield is to be maximised. Revenue Yield Maximisation: This is an inventory impact that you may overlook. Timing comes into play with yield maximization. Revenue yield management is often associated with the airline and hotel industries where reservation-based companies attempt to maximise revenue from fixed supply or capacity, seats on a flight or rooms in a hotel. It recognises that the price or revenue creating the ability of the item in supply decreases with time. Yield management is applicable your supply chain inventory is viewed as the supply whose revenue yield is to be maximised. Inventory is key to success for manufacturers and retailers. Having the right inventory is also difficult and challenging. Insufficient inventory means lost sales opportunities. Too much inventory means markdowns-and reduced profits—to sell it. You work on thin margins especially feel such pain. Furthermore, constant discounting may be an indication that change is needed. Many items enjoy a short shelf life relative to demand and the price your customers are willing to pay. Sales promotions, discounts, and markdowns 56 DECEMBER 2019

are almost common practices to draw customers. Firms that are in dynamic, volatile businesses especially know the impact of short product life cycles and pricing decisions on the bottom line. Old practices with moving inventory through supply chains are running into the realities of time compression and doing it faster. The analytics approach can determine an ‘optimal’ markdown(s). However, this is somewhat of an after-the-fact approach. It does not address the dynamics of doing business. Additionally, it does not address the underlying problem of demand planning and uncertainty and how to mitigate it. The length of the inbound supply chains has increased significantly with global sourcing. Longer chains mean longer times to produce and deliver products from suppliers. That length adds to the likelihood of your having increased buffer inventories. The Solution: First off, let us get this out of the way. There are no quick fixes and easy answers. These problems did not happen overnight. Neither does the answer. Central to your improving inventory problems—out of stock, too much

inventory, tied up working capital, improving revenue yield maximisation, reduced expediting, and additional warehouse costs are creating inventory velocity. The trick is what to do and how to do it. The movement and handling of inventory involve supply chain management. More exactly, with the new business reality and disruption, there is the new supply chain management (SCM). Inventory acceleration is the new supply chain management and its speed. The structure of the new supply chain management, thanks to what Amazon successfully has done and is doing and that is spreading across industries, not just e-commerce, has three parts: • Make supply chain management strategic • Weaponise it • Build end-to-end SCM velocity There are supply chain elements that are essential to what is happening and what must be done. They are: Time Compression: Removing excess time is vital for inventory velocity. Unnecessary time exists throughout your supply chain,

Expert Opinion

increases forecast inaccuracy, and makes you add buffer inventory. Compressing time means you can react more quickly to changes. Upstream Supply Chain: Your supply chain and inventory begin upstream where suppliers are located. Often this area is divided into two parts—purchasing and inbound logistics. This schism deflects a cohesive view of what is happening and should be happening. It is likely you give a lot of attention is given to the downstream supply chain—the outbound or fulfillment side. This focus, however, limits your building that velocity. Next are the steps to your defining what is happening and to designing and implementing improvements: Recognize and understand the complexity and length of supply chains: They are not linear and are more than the four walls of a warehouse or transportation moves. Supply chains cross your company organizations and extend beyond the company boundaries--both upstream and downstream. Furthermore, there are supply chains within supply chains. The straight-line supply chain is a myth and ties to the ‘agile’, one-size-fits-all urban legend. Think of the Mississippi River. It is one of the longest rivers in the world and runs down the USA from Minnesota to Louisiana and out into the Gulf of Mexico. The river however is not a single entity. It is fed by 7,000 streams, water basins, and smaller rivers. These smaller bodies of water flow through 31 states and two Canadian provinces. The great river is not a single entity. Neither is the supply chain. That is how supply chains are— many branches of inventories and activities— and how they function. Assess the end-to-end supply chain: To improve, you must first know where you are and how you are doing. The emphasis should be on performance. This requires strong supply chain metrics such as inventory turns, the customer perfect order, the supplier perfect order, and how long it takes inventory to move through the supply chain. The assessment is about performance, not the costs of its logistics elements. That is misdirection that can hold back operations improvement. Map the supply chain: You have two methodologies here. One is to map what is done, why, and how. This starts with what people say. Then analyse it using actual

transactions. How do what people think happens and what actually happens compare? Also, identify gaps and redundancies in your process that impede speed. The other approach is to use value stream mapping (VSM), a lean tool, to see activities and time involved. This tool helps with identifying excess times and ways to reduce them in the supply chain.

Selection and prioritisation Do not do every product and activity. First, select key, high priority, criticality / high-risk product movements, and/or high volumes. The segmenting keeps the analysis from stumbling over itself with too much data and paralysis by analysis. This is about creating end-to-end supply chain speed. So this means mapping both the upstream and downstream parts of your total supply chain. Map all actions, both inside the firm and external, to get a complete picture. This includes various departments within your company, suppliers, and logistics service providers. Then it can be analysed for waste—excess time. Time compression is central to achieving velocity. From these efforts comes a new stream map with time removed. The result is speed. Reiterations of this will provide more improvements. Segment the supply chain: This is now the time of omni-channel and different ways for customers to do business with you. Inherent to the multiple channels is the possible need for multiple supply chains. The days of the one size fits all, monolithic supply chain are gone. Segment based on common supply chain activities which may, in turn, involve groups of customers, products, or other factors. This permits control and improving speed by segment and also enables seeing where velocity upgrades are needed. Design and test: Develop a plan for your supply chain improvement. Test it to see where changes are needed. Then implement. There are sub-points to this: Warehouses: You should align and differentiate between moving—not storing-pallet load/cases of products as compared to reaches. Also, align to your customers to help reduce order delivery time which is part of the new reality as comes with inventory speed. Where your position inventory is part of the velocity and is reflected in segmentation.

Suppliers: Supplier management is enabling supplier performance. Look at the timing of product, quantities, how and where delivered, product mix, and more of your purchase orders to maximise return. Effective supplier management draws on technology, process, and people. Technology is a process enabler. It is more than placing purchase orders on vendors. It is managing the process and the purchase order so that supplier perfect order performance is achieved—delivered complete, accurate, and on time. The process takes purchase orders from being transactions to being part of a process that flows through the organisation. That process enables the linking of all parts of the supply chain, the integration within the company and between trading partners. It gives the dynamics to controlling product flow and inventory positioning. That control is key to placing the right inventory, right as to quantity and timing and location, so as to achieve higher price yield. Visibility: Seeing the inventory in your complete supply chain is important. This is more than the transportation track and trace. It is not about the shipment. This is bigger and includes suppliers, in-transit, warehouses, factories, packaging service providers, and any other places where products are. It means integrating different technologies to provide end-to-end product visibility. Conclusion: The impact of too much inventory, while also being out of stock, is significant. There is the working capital that could be used elsewhere for company growth. Sales are not fulfilled as customers ordered. Even if customers accept nonperfect orders, there are customer service ramifications. After a time, these can all be internalised as your cost doing business. Defining your operation performance by inventory velocity is a result of the new reality. Spreadsheet inventory planning and ‘optimisation’ is not the same as inventory speed The end-to-end inventory velocity is the need, not just once it hits the warehouses. By then it may be too late. Your transformation to speed is needed to compete. This is not a once-and-done effort. It is continuous as the performance expectations escalate—and they will. n (Tom Craig is a leading authority and a well regarded Supply Chain Management / Logistics Consultant and Transformation Advisor) DECEMBER 2019 57

Opinion Piece: Digital Transformation—Andy Coussins

Expectation versus Reality on the Factory Floor The use of innovative technology in manufacturing should no longer be seen as aspirational, but as a key differentiator and driver for growth within the industry today. Artificial Intelligence (AI), Virtual Reality (VR) and IoT—to name just a few—are starting to make headway in the manufacturing sector as indicators to modernise enterprise processes affirms Andy Coussins, Senior Vice President and Head of Sales, International, Epicor Software. 58 DECEMBER 2019

ccording to IDC by the end of 2021 a quarter (25 percent) of global manufacturers will apply machine learning to data across product development, supply chain, manufacturing, and service, to improve decision-making, quality, differentiation and innovative business models. Research also suggests that by 2020, 60 percent of G2000 manufacturers will rely on digital platforms that enhance their investments in ecosystems and experiences, supporting as much as 30 percent of their overall revenue. With industry analysts predicting that

Manufacturing sector maintains growth trajectory despite adverse conditions Epicor unveils results of 2019 Global Growth Index Manufacturing business growth has continued to rise over the past year, but at a much slower rate than the previous 12 months. Despite challenging market conditions and the difficulty in recruiting and retaining skilled staff, there has been a marginal one percent rise in the number of businesses reporting growth. These findings are survey results unveiled today from the annual Global Growth Index by Epicor Software Corporation—a global provider of industry-specific enterprise software to promote business growth. For those companies who have experienced growth, maintaining it hasn’t been easy over the past year. Forty-two percent admit it has been challenging, whilst a fifth (22 percent) have found it stressful. Forty percent of businesses cite market conditions as having a negative impact on growth, and 23 percent feel that staff skills and experience have also played a detrimental part in maintaining growth. Geo-political volatilities Political volatility and uncertainty also continue to be a common cause for concern across the globe. Thirty-two percent of respondents cited the China-US trade dispute as likely to have a negative impact on future business growth. A quarter of businesses (24 percent) stated

that the uncertainty surrounding Brexit is also still a big threat. “The manufacturing industry plays an integral role in our global economy and people forget that it is responsible for delivering important products we use every day,” remarked Steve Murphy, CEO, Epicor. “As such, the health of the manufacturing industry is something we should all be concerned about. While it’s good news to see that growth in this industry is still taking place, we need to keep a close eye on what factors are contributing to this growth and what factors are causing a lag,” he continued. Rooting for ERP solutions Now in its third year, the Epicor Global Growth Index is designed to measure the state of worldwide business growth within the manufacturing industry. Compared to last year’s results, the Growth Index rose by one percent. This is down from the 3.7 percent in the previous 12 month period. “Investing in the right technology, such as Enterprise Resource Planning (ERP) solutions can help businesses better plan for change by improving visibility and insights into current operational workflows. This can enable and empower people to deal with challenges more effectively, by providing the flexibility, agility, and adaptability needed to respond to market conditions and customer demands. Technology can also have a positive influence on other factors including work ethic and staff recruitment and retention,” concluded Reid Paquin, Research Director, IDC.

Steve Murphy, CEO, Epicor DECEMBER 2019 59

Opinion Piece: Digital Transformation—Andy Coussins

innovative technology will have a hugely positive impact on future manufacturing growth, are companies set to reap the benefits? According to manufacturers themselves, digital transformation—or the use and reliance on innovative technology—is only a strategic priority for 16 percent of businesses. This marks a big difference in where the industry is now and where it needs to be, to sustain growth and success.

Take up so far

being clear, actually taking the steps to overhaul or even ‘rip and replace’ existing systems can seem hugely disruptive, costly, and even a step too far. The issue of value and ROI is therefore a key factor in taking the plunge, with an ‘if it ain’t broke, don’t fix it’ attitude slowing down adoption, particularly during times of economic uncertainty. This is reflected in recent research of manufacturers across the globe into what’s holding them back. One in five (21 percent) cite a lack of understanding into digital transformation as a barrier, with one in ten (13%) believing the concepts are ahead of reality in what can actually be delivered.

A lack of strategic emphasis on digital transformation could signal a disconnect between the hype and actual innovation in the manufacturing industry and mainstream adoption. But why is it not a strategic priority? A key barrier to fully embracing Industry 4.0 could be due to legacy systems and the bespoke technology and processes that many manufacturers rely on for day-to-day operations. Also, despite many processes being underpinned by technology, some still have a manual aspect for operation— or when it comes to production control activities. As such, the perceived cost and upheaval of digitally transforming all aspects of product lifecycle and the supply chain—from design, sales, inventory, scheduling, quality, engineering, and customer service—is often a sticking point. Despite the benefits Andy Coussins, of digital transformation Head of International, Epicor 60 DECEMBER 2019

Next step towards transformation Some of the main reasons being cited as barriers are actually reasons to take steps towards prioritizing Industry 4.0 adoption. Take spend and ROI as a case in point— the old adage ‘you have to speculate to accumulate’ has never been more suitable here. Readying today’s factories for tomorrow’s technologies will enable businesses to reap additional financial and competitive benefits in the long term. Indeed, with businesses expecting AI, machine learning, IoT, and VR to have a positive impact on future industry growth, now is the time to future-proof systems and processes, and prepare to take advantage of those innovations. Far from throwing out legacy technology, intelligent and cloud-based Enterprise Resource Planning (ERP) systems can provide the platform needed to revolutionise business operations and gain value from Industry 4.0 applications. Connecting physical with digital systems will be key in helping to access data from technology applications, to empower manufacturers to better understand where efficiencies can be gained and value achieved, to boost productivity, improve processes, and drive growth. n (The research was conducted by Savanta on behalf of Epicor in H1-2019. It questioned 2,390 business people in 13 countries across the globe about their growth performance in the last 12 months and future business challenges.)

Global Supply Chain December 2019 Issue

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