DUBAI AIRSHOW 2019 [28] RRRREEEEEPPPPPOOOOORRRRRTTTTTT:: An ITP Media Group Publication DEC E M BE R 2019 / ISSUE 183 UPDATE [08] ANALYSIS [18] COMMENT [20] FEATURE [36] INTERVIEW [42] An ITP Media Group Publication DDDEC EMBER 2019 / ISSUE 183 EMIRATES EMBRACES RFID LOGISTICS [18] CCCOOVVEEERRR SSSTTOOORRRYYY “OUR FIRST APP WAS AN AFTERTHOUGHT” SCALE-UP FIRST AND THEN USE TECH TO OPTIMISE REVENUE SAYS RONALDO MOUCHAWAR, SOUQ (AMAZON.AE) FOUNDER SPECIAL REPORT: SOHAR PORT & FREEZONE CELEBRATES 15TH ANNIVERSARY Download the free Logistics app and be the fi rst to read the latest issue on your mobile devices. news and analysis for supply chain management professionalsneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeewwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwsssssssssssssssssss aaaaaaaaaaaaaaaaaaaaaaannnnnnnnnnnnnnnnnnnnnndddddddddddddddddddddddddd aaaaaaaaaaaaaaaannnnnnnnnnnnnnnnnnnnnnnaaaaaaaaaaaaaaaaaaaaaaaallllllllllllllllllyyyyyyyyyyyyyyyyyyysssssssssssssssssiiiiiiiiiiiiiiiiiiiiissssssssssssssssssssssssss ffffffffffffffffffffffffffffffffooooooooooooooooooooooooooooooorrrrrrrrrrrrrrrrrrrrrrr sssssssssssssssssssssssssssuuuuuuuuuuuuuuuuuuuuuuuuupppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppplllllllllllllllllllllllllllllllllllllllllllllyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy ccccccccccccccccccccccccccchhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaain mLogin to https://www.maersk.com/spot to know more Introducing Maersk Spot – our simplified booking tool to improve the efficiency and predictability in your supply chain. With Maersk Spot, you get Loading guarantee Compensation if in a rare case rolled Fixed price You wouldn’t accept price uncertainty in a restaurant. So why do it in shipping? ©2019 A.P. Moller – Maersk3LOGISTICS MIDDLE EAST | DECEMBER 2019www.logisticsmiddleeast.com DECEMBER 2019 | CONTENTS Too many digital start-ups try to use technology to optimise first and then scale operations, when they should be doing it the other way around, according to Ron- aldo Mouchawar. MRO logistics and new ways to make aircraft parts transport and replenishment more efficient were in focus during the Dubai Airshow 2019, as well as some big aircraft order deals. Swisslog automation solutions enable UAE-based Axiom Telecom to reduce total cost ownership, fulfil a greater number of deliveries and adapt to sea- sonal peaks. CO V E R HOW MOUCHAWAR BUILT AMAZON.AE REP O R T DUBAI AIRSHOW FFE A T U R E WAREHOUSING TECHNOLOGY p22p28p36 CONTENTS DECEMBER 20194DECEMBER 2019 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com CONTENTS | DECEMBER 2019 Most popular news stories on logistics- middleeast.com [1] Aramex launches Aramex Spot, expanding delivery options in KSA and UAE Aramex has already partnered up with commercial locations and expects to grow to 150 Spot locations across KSA and the UAE . [2] Emirates cancelled $20-billion worth of deals at Dubai Airshow The announcements at the Dubai Airshow represent a net reduction of more than $20 billion of aircraft orders [3] UPS delivers projector equipment for EXPO 2020’s Al Wasl dome’ UPS delivered 11 high value projector enclosures about 3.6m in diameter, along with highly sensitive and fragile glass doors RE GU L A R S [8] UPDATE Stay informed with the lat- est industry news, from the land, sea and air. [18] NEWS ANALYSIS How and why Emirates Airline completes the larg- est number of RFID scans for inflight emergency equipment on a daily basis. [20] COMMENT Jeb Clulow, partner, Reed Smith, London looks at the impact of the Iran tensions on shipping in the region and the wider impact it will have on the Middle East logistics sector. [28] CASE STUDY MRO logistics and new ways to make aircraft parts trans- port and replenishment more effi cient were in focus during the Dubai Airshow 2019. [40] PRODUCTS The latest equipment and technologies for the logistics and supply chain sectors. [42] FIVE MINS WITH The retail market in the GCC is changing at a rapid pace. Consumers expect more from last mile deliver- ies. The need to improve customer engagement across all touch points has never been more important. p18 p36p10 JOIN THE CONVERSATION To have your copy of delivered to your doorstep, subscribe by logging on to www.itp.com/subscriptions Next month Logistics Middle East will be looking at the latest trends and developments in -commerce and will shine a light on the executives ‘behind the brand’. Get in touch to be featured! p22For more information call +971 4 391 0062 or visit www.dubaiindustrialcity.ae MULTI-USE WAREHOUSES FOR A VARIETY OF OPERATIONS Logistics Dry/Cold Storage Food Storage Light Manufacturing FEATURES Ready infrastructure Grade-A build standards Multiple-joint units 5,000 to 11,500 sqft per unit Strategic location 24/7 security Flexible lease terms Environmentally friendly6DECEMBER 2019 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Published by and © 2019 ITP MEDIA GROUP FZ-LLC ED IT O R ’ S CO L U M N It is that time of the month again. After several weeks of interviews, photoshoots, requests for comment, editing, proof- reading and sub-editing, followed by the usual last minute changes required by sales because of clients, another issue of Logistics Middle East is finally done. This will also be my last issue of the magazine as the editor. After five years and 60 is- sues, it is time to move on. It’s always nice to go out with a bang, so I’m particularly happy that I was finally able to get Amazon.ae onto the cover of the magazine. Although the company isn’t perfect when it comes to its last mile fulfilment, and has been known to miss a delivery date or two, it is without doubt one of the most advanced and complex logistics operations in the region right now. Ronaldo Mouchawar’s thoughts on the development of the business, the direction he wants to take it, and the future of e-commerce in the Middle East makes for fascinating reading. E-commerce is the defining issue of logistics in the GCC at present, it dominated discussions at the Leaders in Logistics Summit 2019 (held the day before we went to print). Make sure to check the January issue of the magazine for the full analysis of what went down at the conference and what some of the most influential executives in the supply chain have planned. Or, because this is a brave new digital world after all, you can read it right now on the logisticsmiddleeast.com website. It’s been a pleasure. Enjoy the issue. SHAU N EBELTH ITE EDITOR SHAUN.EBELTHITE@ITP.COM PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London & Mumbai ITP MEDIA GROUP CEO Ali Akawi Managing Directer Alex Reee EDITORIAL Editor Shaun Ebelthite Tel: +971 4 4443420 email: shaun.ebelthite@itp.com ADVERTISING Sales Manager Sanjay Kathan Tel: + 971 4 444 3377 email: sanjay.kathan@itp.com ITP LIVE General Manager Ahmad Bashour Tel: +971 4 4443549 email: ahmad.bashour@itp.com PHOTOGRAPHY Senior Photographers Rajesh Raghav, Efraim Evidor, Adel Rashid Staff Photographers Aasiya Jagadeesh, Ajith Narendra Fritz Asuro, Yuliya Petrovich, Jessica Samson PRODUCTION & DISTRIBUTION Group Production & Distribution Director Kyle Smith Production Manager Basel Al Kassem Production Coordinator Mahendra Pawar Senior Image Editor Emmalyn Robles CIRCULATION Head of Circulation Vanessa Dsouza Circulation Executive Loreta Regencia MARKETING Director of Awards & Marketing Daniel Fewtrell Events Manager Teri Dunstan ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies Subscribe online at www.itp.com /subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.OMAN CUSTOMS | ADVERTORIAL 7LOGISTICS MIDDLE EAST | DECEMBER 2019www.logisticsmiddleeast.com Oman’s customs sys- tem has undergone a transformation. Through the roll- out of a pre-clear- ance system across the Sultanate, 22% of shipments are now pre-ap- proved by customs before arrival at Oman’s borders. The overall rate of customs inspec- tion has also improved to an industry leading 2.5% compared to 3% in the EU – delivered through a risk-based, advance-screening process, which ensures service efficiency and low dwell-times whilst maintaining se- curity and integrity. The new approach is already having a positive impact for logistics busi- nesses. “Pre-clearance helps us a lot, especially with urgent shipments,” says Nasser Al Oufi, Supply Chain Senior Officer at Oman Cables, an electrical products manufacturer. “Today, we receive containers within one hour of their unloading from the vessel.” Oman’s focus on customs-efficiency delivering results A further initiative is the ‘Bayan’ digital plat- form launched by Oman’s Directorate of Cus- toms, which integrates government services into a single electronic window, simplifying information submission processes and reduc- ing the Sultanate’s normal import clearance time to just 7 hours against the GCC average of 47 hours. Similarly, the time required for export doc- umentation procedures through the same platform is also now usually only 7 hours, far quicker than the GCC average of 22 hours. The Bayan platform is a “quantum leap from the previous system”, says Mansoor Al Rawa- hi, CEO of Oman’s Thunder Logistics, which specialises in international import and export services. “In the past, the amount of documen- tation required often delayed the delivery of goods. Now Bayan facilitates the whole process for us.” Across the board, the focus on improving customer service is paying off. Import compli- ance costs in Oman are 53% lower than the rest of the GCC and the Sultanate has ranked top of the GCC in the World Bank’s Ease of Doing Business - Trading Across Borders Index for 5 years in a row.UPDATE | DECEMBER 2019 8DECEMBER 2019 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Zebra Technologies has revealed the re- sults of its 12th an- nual Global Shopper Study, the industry’s only market tracker that analyzes the attitudinal behavior of shoppers, retail associates and retail execu- tives and examines the retail and technology trends impact- ing shoppers’ purchasing be- havior. Three-fourths (75 percent) of surveyed millennial shoppers and more than half (53 percent) of Gen X shoppers indicated they shopped in a store and left with- out a purchase only to end up buying the item online. The main culprit for retail- ers losing in-store purchases to online shopping is due to issues with inventory management, particularly out-of-stocks. Both shoppers and retail as- sociates expressed dissatisfaction with the number of out-of-stocks as 43 percent of retail associates cited customer complaints about out-of-stocks as their biggest frustration and 39 percent of shoppers left a store without a purchase due to this problem. Self-checkout technologies are also gaining traction in retail stores as 40 percent of shoppers reported using these solutions within the last six months and 86 percent stated comfort with the technology. Furthermore, most shoppers (58 percent) – especially mil- lennials (70 percent) – agree that self-checkout provides an improved customer experience. The majority of store associ- ates (54 percent) also said staffed checkout areas are less neces- sary with new technology that automates the process. Nearly nine-in-ten retail executives (87 percent) believe self-checkout frees up store associates to better serve customers, and 81 percent reported they’re starting to see a return on their investment. “Our study shows that while better services will help retain current shoppers and attract new ones, retailers need to make sure they have the basics right when it comes to product availability, ease of finding products, returns and exchanges,” said Anees Haidri, Director of Global Retail Market Strategy, Zebra Tech- nologies. “To win with shoppers today, retailers must deliver the seamless, multi-channel experi- ence that customers expect and leverage technology to provide more personalized services for managing inventory and building smarter operations.” Providing a better customer experience will be crucial to keep shoppers coming back, but a significant disconnect exists between the expecta- tions of retail executives and shoppers. In fact, 77 percent of retail executives believe cus- tomers are satisfied with the in-store experience while only 57 percent of shoppers reported feeling satisfied. The study also identified sizeable perception gaps when it comes to the returns and exchanges process between shopper satisfaction (59 percent) and executives’ perception of their satisfaction (80 percent). LA N D + SE A + AIR + SU PPL Y CHAI N + WA R E H O U S E + MA TERIAL S HAN D L IN G UPDATE 12.2019 Some 75% of millennials abandon in- store purchases due to out of stocks The main culprit for retailers losing in-store purchases to online shopping is due to is- sues with inventory management, particularly out-of-stocks. DECEMBER 2019 | UPDATE 9LOGISTICS MIDDLE EAST | DECEMBER 2019www.logisticsmiddleeast.com Etihad Cargo, the car- go and logistics arm of Etihad Airways, has aug-mented its digitalisa- tion strategy by signing a land- mark 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 best- in-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. Abdulla Mohamed Shadid, Etihad Avia- tion Group’s Managing Director of Cargo and Logistics Services said: “Etihad Cargo’s ambition to lead the industry into a new digital era has driven significant investment in our digitalisation programme across back of house and customer facing platforms in the last 12 months. This landmark partnership with cargo.one builds on the success we have achieved on our own online platform, etihad- cargo.com, which now represents 38 per cent of our bookings. “Our digital investment enabled us to rapidly build the required API con- nectivity to seamlessly link to the cargo.one platform. Through cargo. one we will offer global capacity to users on new routings and to new destinations across our extensive worldwide network, and provide our own customers with additional booking choice.” Serving more than 300 freight forwarding compa- nies across Europe, cargo.one has been growing at a rate of more than twenty per cent month-on-month. Etihad Cargo partners with multi-airline e-booking platform cargo.one Swisslog delivers robot-based warehouse system for Axiom Telecom Global warehouse automation spe- cialist, Swisslog, announced at Materials Han- dling Middle East (MHME), the region’s dedicated trade show for warehousing, intralogis- tics and supply chain solu- tions, that it has completed a major project for the Mid- dle East’s leading telecom distributor for handsets and accessories, Axiom Telecom (Axiom). Swisslog designed and imple- mented a new Dubai-based au- tomated warehouse facility with AutoStore for Axiom Telecom. Known as the region’s largest retailer and distributor, Axiom has more than 5,000 points of sale and 2,000 employees across the United Arab Emirates and Saudi Arabia. It is the retailer level of automation compared to its conventional warehousing system. The solution deployed was designed to fulfill Axiom’s requirement of 25,000 deliver- ies and provided a compelling total cost of ownership. The new warehouse located at Dubai Silicon Oasis (DSO) includes a range of pioneering distribution solutions that will give Axiom enhanced opera- tional flexibility and efficiency with less manpower. and distributor of many of the world’s leading technology brands in the telecom industry, and is expanding into new ver- ticals on the basis of its unique market reach and operational excellence. With a high volume of daily orders delivered across multiple channels and a demanding cus- tomer base, Axiom is expected to provide speed, accuracy, and a competitive service to ensure its future in the face of increased competition. The move to a new facility was part of Axiom’s overall vi- sion to continue to meet the changing customer demands, while driving down Cost Per Unit. In reviewing its options, Ax- iom selected Swisslog’s AutoS- tore solution to deliver a higher STORY SUMMARY BOLLORE LOGISTICS IN TALKS WITH DNATA FOR NEW DUBAI AVIATION Bollore Logistics is in discus- sions with partner dnata, which wishes to build a new facility at Al Maktoum International Airport (DWC) for long-term regional logistics support, reports AIN Online. The new facility is ex- pected to be ready by late 2020. “Aerospace is a very specialized product, due to the timeframe pressures aircraft face at air- ports,” said Marc Doherty, general manager, Bollore Logistics LLC. “Generally, depending on size, an aircraft has anything between 20 and 80 minutes to offload pas- sengers and cargo, be cleaned and then reloaded for the next flight. We have a very short time frame to provide our services.” Etihad announced the deal at Dubai Airshow 2019Next >