Supply Chain & Logistics Group Monthly e-News

 
Welcome to SCLG e-News. This is an online monthly electronic newsletter brought to you by the Supply Chain and Logistics Group (SCLG). SCLG is a non-profit organisation, set up to promote the cause of supply chain and logistics in the region. The organisation founded by highly qualified professionals from the industry,  comes equipped with the legal  backing  of  the  Dubai Chamber  of  Commerce and Industry. 
  
Through this newsletter, we will keep you updated on the latest trends and practices. With our indepth coverage and analysis, we aspire to serve as a benchmark guide to the industry. 
 

                                           
                                        LXE Middle East
LXE Middle East & Africa, Dubai Internet City, P.O.Box 500122, UAE. Improves supply chain performance by applying over 36 years' experience developing rugged wireless computers and RF data collection networks. From LXE new wearable computer to our Low temp vehicle mount computers and RF network infrastructure– LXE’s easy-to-use, mobile computing products are as reliable as the people who install and support them.

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                                          Loc8
The Loc8 catalogue has a large range of products to choose from specifically for the Materials Handling industry, from handling equipment, packing equipment, conveyor’s through to shelving, mezzanines & trolleys etc.
 
The catalogue makes product sourcing easy as all products are shown pictorially with detailed specifications, so unlike traditional directories which are full of text, a potential buyer can use the Loc8 catalogue to identify and procure his requirements with ease.
 
Supported by a state of the art call centre which handles all product enquiries electronically the potential buyer will not only benefit from the ease of product selection but from the complete customer experience.

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                                          Huntsman
Huntsman is a global manufacturer and marketer of differentiated and commodity chemicals. Its operating companies manufacture basic products for a variety of global industries including chemicals, plastics, automotive, aviation, footwear, paints and coatings, construction, technology, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman today has 11,300 employees, 57 operations in 22 countries and had 2005 revenues of $13 billion.

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                                          Amana Contracting and Steel Buildings
Amana Contracting and Steel Buildings is the leading regional provider of design-build construction solution to the supply chain and logistics industry.  The company has constructed numerous facilities for Agility Logistics, Danzas, Dubai Ports Authority, Gulf Warehousing Company, and other multinational corporations across the region. With eleven operational offices in the Middle East, Amana provides to its clients that unique combination of local knowledge coupled with regional reach.  To learn more about Amana, visit www.amanabuildings.com

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                                         D3PL: Interim (temporary) Logistics Management solutions. Unlike conventional Consultants, an Interim works inside an organisation to analyse, propose and implement solutions. He carries no ‘political baggage’ and is no threat to the existing team.  

Cost-effective solution for companies that need additional skills, a different perspective or simply an ‘eatra pair of hands’. Ability to communicate from shop floor to Boardroom. Flexible engagements (a few days per month, to a whole year).  Why buy? Lease a Logistics Manager!

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                                          FAMCO (Al-Futtaim Auto & Machinery Company)
FAMCO (Al-Futtaim Auto & Machinery Company), an ISO 9001:2000 (Quality Standard) and ISO 14001:2004 (Environment Standard) certified company, supplies products and services to a diverse range of industries and commercial undertakings covering the transportation, construction, manufacturing, warehousing and marine sectors. With operations in Dubai, Abu Dhabi and Al-Ain, FAMCO serves these industries with world-class brands including Volvo (Trucks, Buses and Construction Equipment), Ingersoll-Rand, Linde, Dexion, Yanmar, SDMO, Stanley Proto, Fenner, Bruynzeel, Global, Bott, System Edstrom, Stertil, Hart and Nassau.

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                                          Philips
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs 124,300 employees in more than 60 countries. With sales of EUR 27 billion in 2006, Philips is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances and consumer electronics. News from Philips is located at www.philips.com/newscenter.

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• Our mission is to become the Supply Chain Management (SCM) services provider of choice in the UAE and GCC by:

  • Establishing a major logistics facility in Jebel Ali South as central hub for region (4 warehouses totaling 120,000m2)

  • Establishing a network of warehousing facilities and transportation partners across GCC capable region-wide solution

  • Linking with collaborative partners in selected niche SCM sectors

  • Leveraging technology and people to provide cost effective smart solutions

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                                          Liberty Logistics
Liberty Logistics is a member of the Dubai based Liberty Investment Company, which is the holding company for the group.  

Established in 2001, in Dubai, Liberty Logistics  L.L.C. is a professionally managed company with qualified and experienced multilingual staff. We are fully equipped to provide speedy, efficient and economical solutions for all logistics requirements.  

The company offers personalized services and strives to exceed customer expectations by ensuring quality and excellence in every aspect of the business.  

Our services includes: General Air and Sea Freight-Exports and Imports; Consolidations Services; Multimodal Sea-Air and Air-Air operations; Door to Door services; Customs clearance; Warehousing and distribution; Part and Full charters; Exhibitions Cargo handling.

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                                           Reliance Freight Systems LLC
Reliance Freight Systems LLC is a Dubai based Freight Forwarding company established in the year 1997 by experienced and motivated personnel who have been associated with the freight forwarding industry for decades. We handle AirFreight, OceanFreight, Warehousing , Sea / Air transhipment and Groupage / Consolidations. The company is well organized  and is able to offer a full range of professional forwarding services to our customers .

We not only provide Professional Freight Forwarding services, but also tailor made services to our customers needs. Due to our worldwide network and close relations and good rapport with all the airlines and shipping lines in Dubai, we can offer very competitive and attractive rates to our customers for their import / export shipments in conjunction with personalized attention and competitive service.

To add to this we have our own state of the art warehousing facility in jebel ali  , transportation division, dedicated airport office for air shipments and trained professionals giving us an edge to cater to our customers particular needs for providing total logistics solutions. You can learn more about our company by visiting our website www.reliancefreight.co.ae .

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                                          Obegi Chemicals LLC
Over the last century the Obegi Chemicals Group has grown from the initial determination and foresight of one man, Yordan Obegi, to become the largest independent distributor of chemicals in the Middle East. 

As a part of Obegi Chemicals Group, Obegi Chemicals L.L.C. embraces the same qualities of integrity and dedication that made the group the success it is today. Providing a variety of chemical product lines to suit the needs of many industry sectors, Obegi Chemicals L.L.C. prides itself on total customer satisfaction, a fact which is testified by an impressive array of international companies. 

With Dubai at the centre of its extensive distribution and storage network spanning Bahrain, East Africa, Iran, Iraq, Jordan, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Sudan, United Arab Emirates and Yemen; Obegi Chemicals L.L.C. forms a vital link in the efficient performance and productivity of many industry sectors namely: Coatings (paints, adhesives, varnishes, inks); Plastic Transformation; Polyurethane; Construction chemicals; Paper and Pulp; Food Processing; Pharmaceuticals and veterinary; Detergents, cosmetics and personal care. 

As we look to the future we stand steadfast in our commitment to supply the highest quality products and personal service that are required to enable our customers to excel in an increasingly competitive world. 

For a detailed list of products and services, please contact the Obegi Chemicals Group office closest to your location or visit our website www.obegichem.ae. 

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                                          Al Khaleej Sugar
Al Khaleej Sugar[AKS] a standalone refinery, located in Dubai (United Arab Emirates), knows how sweet success can be. Started in 1995, it was the very first sugar refinery to be established in the Gulf Region, with a daily production capacity of 2,400 tons. With a current daily production capacity of over 4,800 tons, it has already achieved the status of the largest standalone sugar refinery in the world and it has placed Dubai on the world’s Sugar Map. This was achieved within the span of 11 years of operation only!. With the expected completion of the current expansion projects, it will be able to produce 7000 MT of Refined Sugar per day by the year 2007. The refinery has continuously improved its operations to become one of the most energy efficient refineries in the world. AKS produces are pure white refined sugar of different grain sizes produced in the 'state-of-the-art' facilities located at JebelAli, Dubai.

Over the years, the quality systems have evolved in AKS, in such manner that they became part of its culture. In fact, AKS has implemented successfully various quality systems.

AKS achievements have even earned Dubai the right to be the host of the Sugar Industry Technologists (SIT) Meeting in 2005 and to be the permanent host of the yearly Sugar Trade MENA Conference.

All the above has been made possible through a customer oriented approach, a focus on people, resources, innovations and processes combined with clear strategies backed by a visionary leadership.

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Wal-Mart Stores, Inc., continues to expand its RFID capability to additional facilities, enabling an additional 400 Wal-Mart stores by the end of this fiscal year, according to Wal-Mart Executive Vice President and CIO Rollin Ford.

 “Through RFID technology, Wal-Mart is providing value to customers, working with our suppliers to deliver collaborative benefits that allow people to save money and lead better lives,” Ford said.  “We have only gotten started, and we are continuing to rollout to more stores at the same rate as the last two years.”

He said current benefits include a 30 percent reduction of out-of-stocks, reduction of excess inventory in the supply chain, and sustainability impacts. Ford also outlined advancements including pallet locators now being used at Sam’s Club locations – increasing inventory accuracy and reduced member waiting time -- as well as future benefits in pharmacy accuracy, grocery freshness, software, CD and DVD authentication, and 30-second store checkouts.

“Our focus on using RFID to improve in-stocks for our customers means eliminating extra trips they may make to our store, or to others,” he said.  “On a daily basis, more than 24 million people shop our stores.  If 100,000 extra trips are avoided by having items in stock, we will save customers $22.8 million a year in gas savings and reduce greenhouse gases by 80,209 metric tons.”

Ford also described future innovations that could be made possible with RFID.

“In the near future, customers may be able to enjoy advantages such as automatic warranty activation on electronics, freshness assurance on foods thanks to cold chain monitoring and enhanced product safety as a result of faster, more accurate recalls and better freshness monitoring,” he said.

The Beirut Port Authority recently launched its new logistics free zone which houses facilities for key regional and international providers including Aramex.

Aramex unveiled its state-of-the-art logistics centre which will reinforce the company's multimode solutions. The new centre will generate better transit times for the sea and land movement of goods from Europe and North Africa to the GCC and Levant countries.

Iyad Kamal, Aramex Chief Logistics Officer said, “Our new facility at the Beirut Port Free Zone is a one-stop-shop offering tax-free storage and warehousing in addition to our regular portfolio of services. Aramex's logistics facility at the Beirut Port Free Zone covers one of the largest plots in the free zone, inclusive of a vaulted room and temperature controlled space for sensitive goods.”

Kamal added that Aramex is investing heavily in its logistics capacity across the network, specifically in the Middle East. “'We have been at the forefront of growth in the regional logistics industry, developing to a supply chain management expert and ensuring the efficient flow of goods, warehousing, and distribution via our extensive network.

“Evidently the emerging free zones have had a tremendous impact on the development of the industry. They provide key locations for a host of international companies, warehousing facilities, and easy transport of incoming and outgoing goods at competitive rates,” said Kamal.

Asma Abboud, Aramex Lebanon Manager, said:  “Aramex started operation in Lebanon since 1988 and employs more than 200 specialized staff members. As part of our ongoing investment in the local logistics and transportation industry, we have recently launched our Karantina Logistics Centre offering customers a variety of innovative logistics, warehousing and transportation solutions. The new facility at the Beirut Port Free Zone represents another key investment in the country and will lead to the recruitment of new logistics professionals.”

Aramex operates strategically located logistics facilities in Jebel Ali Free Zone in the UAE, Sahab Duty Free in Jordan, and others in Riyadh, Jeddah, Bahrain, Egypt, Morocco, India and Iran. The opening of the Beirut Free Zone facility is yet another element of the investment strategy for Aramex's logistics infrastructure in the region. This includes the upgrade of existing facilities and the establishment of new centers such as the one at the Dubai Logistics City which will cover 240,000sq meters.

 
Agility, Transcar awarded world’s largest freight contract
 

Agility Project Logistics (the new name for Transoceanic Shipping Company, Inc.) has joined forces with Transcar Projects Ltd. to win the global shipping contract for two phases of the Pearl Gas to Liquids (GTL) in Ras Laffan, Qatar.

Agility Project Logistics is a specialised group within Agility, a leading global provider of integrated supply chain solutions. Transcar is one of Europe’s leading privately held project freight forwarders, managing general and project cargoes.

The Pearl GTL project, the worlds largest gas-to-liquid project, has been developed by Qatar Petroleum and Shell and will involve over 1.0 million freight tons of cargo lined up for its construction. The facility, once complete, will be equipped to produce 140,000 bpd of GTL products and approximately 120,000 bpd of condensate, liquefied petroleum gas and ethane.

The joint venture between competitors, with Agility Project Logistics and Transcar both devoting 18 months of planning, resulted in this successful win. Both companies cooperated closely to ensure all systems, procedures and team proposals scored highly in the evaluation process managed by the JGC Corporation and Kellogg Brown & Root, Inc. (KBR).

 
Manufacturing sector demands attention
 

A surge in the region's manufacturing sector is driving a need for technology solutions made to serve the very specific demands of that sector, says Sage Software Middle East as it launches its leading ERP product for medium and large manufacturing and distribution companies, Sage X3 Enterprise

Sage Software Middle East has put in significant investment to bring this product to the region, having recruited and trained several staff members focused entirely on this product. The company is also planning channel training programs for the product. The Sage X3 Enterprise ERP System is broad enough to support all of the planning, scheduling and production control activities of a manufacturer, yet flexible enough to adapt to different manufacturing modes.

”The region's booming economy is experiencing a significant contribution from the manufacturing sector. Development projects such as Dubai Industrial City is set to contribute almost US$10 billion to Dubai's GDP. This sector in Bahrain makes up over 10 per cent of the kingdom's GDP. What this means is that players entering the sector need vendors and suppliers that understand their business,” said Marc Van der Ven, managing director, Sage Software Middle East.

“'It's no secret however those businesses still face constraints when it comes to IT budgets. But having a reliable, responsive and flexible ERP system has become a necessity, not a luxury. But until now, manufacturers have had to make do with expensive and complicated applications from the world's leading vendors, but today Sage is introducing one of its flagship manufacturing systems designed to address the needs of medium sized manufacturers who are growing aggressively, and looking for flexible solutions that are affordable with a rapid return on investment."

Sage X3 Enterprise ERP can address the demand for quick and easy customization without bearing the steep costs charged by integrators for a tailor-made product. According to Sage, customization of the Sage X3 Enterprise takes significantly less time than any other ERP system for medium to large organisations.

In mid-2006 respondents to the Sage ERP Survey were asked what steps vendors could take to improve their experience with ERP. 44% of respondents demanded cost-effective extended functionality from vendors. Van der Ven comments: 'Businesses want more from their ERP. They should be able to share all information required to operate more efficiently, preferably in a single application and in a single database. Sage X3 Enterprise allows businesses to manage every aspect of their operations concurrently, in real time.'

Sage X3 Enterprise ERP supports the specific needs of most process manufacturers. The system effectively meets the challenges faced by formula-based manufacturers by providing them with an industry-compatible set of integrated functions and features. The system's Discrete Manufacturing ERP version is ideally suited for hard goods manufacturers and consumer goods manufacturers requiring a broad and deep level of functionality across manufacturing, distribution and accounting.

 
APM Terminals, Akwa open Tangiers container terminal
 

APM Terminals and the Akwa Group, a Morocco-based partner, recently opened the newest container terminal in Tangier, Morocco to serve the global trade in Morocco and the Western Mediterranean market.

Located on one of the world’s most important shipping arteries, the terminal has direct access to the main shipping lane, a deepwater port capable of handling the largest container ships in the world, according to the company.

More than 200 vessels a day pass through the Straits of Gibraltar, as they transit on north-south and east-west liner trade routes. Shippers benefits of this new terminal are the location, the newest container handling equipment, and APM Terminals global operational practices.

Kim Fejfer, CEO, APM Terminals International, based in The Hague, Netherlands stated "Our vision is to offer our customers more options and solutions in the Straits of Gibraltar giving them a competitive edge in world markets. The new terminal expands our global terminal portfolio in one of the world’s most important shipping lanes."

APM Terminals, with corporate headquarters in The Hague, Netherlands, is a leading global container terminal owner and operator with operations at more than 45 terminals, serving approximately 60 shipping lines. The facilities generated a throughput of 28.4 million TEU in 2006.

APM Terminals Tangier S.A. was established in March 2005 and partners with the Akwa Group of Morocco to combine global/local expertise for customers. The partnership is a 90%/10% agreement between APM Terminals/Akwa Group.

Akwa was founded in the end of the 1950’s and today has a global turnover of 1.5 billion euros. The company’s headquarters is located in Casablanca. Akwa has 2000 employees in the kingdom of Morocco. Akwa Group includes 40 companies grouped in four complementary activities: Fuel and Lubricants, Gas, Fluids and TMT (Technology, Media and Telecommunications). Akwa has a long experience in partnering with huge foreign groups including: Elf Aquitaine, Shell, Telefonica and Northern Telecom.

The International Air Transport Association (IATA) has reported international freight traffic for the first six months of 2007 was “sluggish,” rising only 2.7%, which fell short of the 4.6% growth seen for all of 2006.

The IATA added although that year-to-date air cargo growth demand is weaker than originally forecasted, June’s cargo demand grew 4.9%. This growth marked the second straight month of improved freight demand, following May’s 5.0% showing, and the IATA noted this recent growth could be an indication that the air cargo may be returning to its historic growth levels in the 5%-to-6% range.

Air freight demand growth was led by airlines in the Middle East during the first half of the year at 11.7%. Demand growth in Asia Pacific rose 4.6% during the same period although demand surged to 7.4% in June following a 7.6% increase in May. Demand growth in Europe was sluggish (0.7%) and contracted in North America (-1.2%) and Latin America (-3.8%).

 
Jafza International launches Phase II of its Djibouti Free Zone project
 

Jafza International, a subsidiary of Economic Zones World has inaugurated Phase II of its Djibouti Free Zone (DFZ) project comprising the development of light industrial units, warehouses and office facilities.

Prime Minister of Djibouti, Mohamed Dileita and Chuck Heath, Managing Director, Jafza International together cut the ribbon to officially mark the DFZ Phase II inauguration which coincided with the celebrations of the 30th anniversary of the independence of the country falling on the 27th of June.

In his remarks on the occasion, the prime minister said: “Djibouti is really proud about its partnership with Jafza International and the development of Djibouti Free Zone project.”
“We believe in this partnership to build together the economic success of Djibouti,” the Prime Minister added.

Heath said: “Our mission in Djibouti is to position the free zone as the regional logistics, distribution and marketing hub for the import, warehousing, processing, and re-export of goods to and from eastern African countries.”

“Jafza International is committed to the expansion of its operations in Djibouti. In addition to the Phase II development of this free zone, we are working on the development of pioneering project in the African continent by providing an air-sea-land trade link for neighboring land-locked states through an airport free zone, and another SEZ in the near future,” he added.

The Free Zone's phase II project comprises 280,700 sq feet of space for light industrial units and warehousing facilities, and 23,000 sq feet of office space. The free zone today houses 79 companies, with over half of the office space and a quarter of the warehousing facilities booked even before beginning of construction.

The Djibouti Free Zone, which was started under the management and operations of Jafza International in 2004, is located on 32 hectares with over 120,000 sq feet of warehousing facilities.

Economic Zone World's parent company, Dubai World, is by far the largest UAE investor in Djibouti, with a portfolio exceeding US$800 Million. Apart from free zone operator Jafza International, Dubai World subsidiaries DP World, Dubai Customs World and Nakheel Hotels & Resorts have major stakes in Djibouti's development.

DP World operates the Djibouti seaport, DC World has modernized Djibouti Customs and is managing it with considerable success, while Nakheel opened the country's first five-star hotel and resort, the Kempinski Djibouti Palace, last November on a high note by hosting a major conference of the Common Market for Southern and Eastern Africa (COMESA).

Businesses within the Djibouti Free Zone are engaged in trading of food and beverage, construction material, automobiles and spare parts, cigarettes, textile and garments etc., whereas light industrial activities in the free zone include production of medical gasses, LPG bottling, manufacture of food products etc. Services in the zone include express cargo handlers, credit support activities and logistics companies. 

Growing business links between UAE and UK come under spotlight

Two major developments in the UAE business world have put the spotlight once again on the growing commercial relationship between the Emirates and the UK, a British business leader said today.

Mark Beer, newly-elected chairman of the British Business Group in Dubai, welcomed new figures released by the Dubai Chamber of Commerce & Industry (Dubai Chamber) showing that the UAE was the UK's largest trading partner in the Gulf in 2006.

Beer said that the increasing importance of these business ties had been further underlined by the recently announced appointment of Sir John Parker, Vice Chairman of DP World and Chairman of British utility company National Grid, to the Business Council for Britain by new British Prime Minister Gordon Brown.

According to Dubai Chamber's figures, revealed in a recent report, 56% of the UK's exports to the GCC region last year went to the UAE, equating to £3.6 billion worth of goods. By contrast the share for other GCC countries was 24% for Saudi Arabia, 7% each for Qatar and Kuwait and 3% each for Bahrain and Oman. Out of the UAE's total around 80% was destined for Dubai.

The UAE also supplied around one third of the region's total £3.3 billion worth of exports to the UK. The UAE exported £1 billion to the UK, coming a close second to Saudi Arabia, which exported £1.1 billion. Again Dubai accounted for the lion's share of the UAE's total exports to the UK supplying 66%, compared with 18% for Abu Dhabi and 16% for the other emirates combined.

“These figures are further evidence of the increasingly strong commercial relationship between the UK and the UAE, and Dubai in particular,”  said Beer.

'The UAE is attracting growing attention from the British Government, a fact underlined by its announcement last year that the country has been identified as one of its ten key 'emerging markets' where the UK is keen to deepen trade and investment relations.'

“The appointment of Sir John Parker, Chairman of Britain's National Grid and Vice Chairman of the Dubai Government-owned global marine terminal operator DP World, to the Business Council for Britain could be seen as further strengthening of the ties between the two countries,” he said.

The newly-formed council is comprised of a number of senior British business leaders and has been established to advise the Prime Minister on matters relating to enterprise and the British economy.

Dubai Logistics City (DLC), set to become the world’s largest supply chain community alongside Dubai World Central International Airport (JXB), the world’s largest airport taking shape at Jebel Ali in Dubai, has received the highest acclaim from Europe’s top logistics players. 

DLC won the the SIL Award in the Best International Logistics Project category on the sidelines of Europe’s largest logistics meet - Barcelona’s “Salón Internacional de la Logística y de la Manutención”, better known as SIL. 

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman, Dubai Aviation Corporation – Dubai World Central said:  “This award is a direct result of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai - in line with the Dubai Strategic Plan 2015 - to create the world’s first multimodal and logistics platform alongside the world’s largest airport. 

The SIL Awards recognises the best initiatives and professionals in logistics and material handling in different business fields. 

DLC’s phase one will be operational by end of 2008.

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