< PreviousCOVER 10FEBRUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com REACHING FOR THE STARS SAUDI-BASED SUPPLY CHAIN SOLUTIONS PROVIDER STARLINKS HAS PLANS TO QUADRUPLE REVENUES, INCREASE ITS NETWORK, AND BRING TRUE SUPPLY CHAIN QUALITY TO THE KSA MARKETPLACE. WE TALK TO GARY BLYTHE, MANAGING DIRECTOR, STARLINKS TO LEARN MORE ABOUT THE COMPANY Gary Blythe, managing director, StarlinksCOVER 11LOGISTICS MIDDLE EAST | FEBRUARY 2020www.logisticsmiddleeast.comCOVER 12FEBRUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Tell me about Starlinks, what are your areas of expertise? Starlinks is a fully integrated sup- ply chain solutions business operat- ing within Saudi Arabia and is 100% owned by Ali Zaid Al Quraishi & Broth- ers (AZAQ) who have been operating for over 60 years in the region. We are a start up in brand and strategic focus, but far from it when it comes to scale and exper- tise, with a large portfolio of well-known and diverse industry brands already partnering with us, and we are growing fast. Our mission is to provide expertise, and fully pack- aged solutions in well identified segments vs a generic approach of the big multinationals. We deliver a level of quality that the market is demanding with changing consumer habits and needs. AZAQ both own and distribute brands across many verticals including automotive, premium electronics, travel, FMCG, industrial electronics, and personal care. This strong heritage gives Starlinks inherent expertise in multiple categories making us much more than a third-party logistics firm. What services does Starlinks offer? We have invested heavily in assets, as this is a must to stand by our promise ‘We Deliver’. Asset lite businesses are just too exposed to variable quality. Our services can be sim- plified into four core areas: Intermodal transportation; omni-channel fulfilment on a full cold chain basis - including final mile; Customer solutions - our value-add division focusing on sales and operation planning; and customer service solutions as part of a turn key end-to-end product offering. We are very excited to be launching our ‘Connect’ prod- uct in 2020, an open network parcel pick-up and drop-off service. This will be the larg- est and most advanced technol- ogy solution in KSA and will give customers the quality and reliability they need and also disrupting the monopoly that exists today in parcel final-mile. It is important to us that we bring more to the table than com- petitive rates and exceptional quality. Our solutions will always be tailored to the business we are partnering with, who often have a clear need for market-leading supply chain. What does Starlinks bring to the marketplace that competi- tors do not? A relentless quest for quality. I listen to our current and po- tential new customers and the FA ST FACT 35% SAUDISATION QUOTA AGAINST THE AVERAGE OF 11 TO 15% STARLINKS WILL BE THE MARKET LEADER IN OUR FOCUSED STRATEGIC SEGMENTS, OUR BRAND WILL BE SYNONYMOUS WITH A QUALITY EXPERIENCE.” GARY BLYTHE, MANAGING DIRECTOR, STARLINKS Starlinks aims to bring more to the table than just being part of the supply chain. COVER 13LOGISTICS MIDDLE EAST | FEBRUARY 2020www.logisticsmiddleeast.com feedback is always the same; the market is changing fast and the biggest single opportunity is supply chain that delivers for the consumers. Direct costs are not the issue, it’s the hidden costs that fall under quality of services and reliability, repeat custom that doesn’t materialise due to a supply chain negative expe- rience, damages and expiry of products, ineffective promotions and missed sales due to a lack of supply and planning. What are your plans for expan- sion over the next three years? In the holistic sense, Starlinks will quadruple in revenues, our network will continue to expand in all key growth cities in KSA, and regionally we will expand in UAE, Oman and Bahrain. Our sister company Assayel Arabia are delivering four purpose-built facilities to us in 2020. We will continue to grow our core tech platform with Oracle Cloud and with additional propriety technology prod- ucts that give Starlinks and our customers an edge in the market in e-commerce, sales and operations planning, and express on-demand transpor- tation. We will also invest in free zones across KSA to fa- cilitate our automotive and e-commerce businesses in particular, we’ll support this by having strategic interna- tional offices where we see either consistent volumes or a fast-growing market. China and the US will be first for us, which we are plan- ning for in 2021. Where do you see the com- pany in 10 years? Starlinks will be the market leader in our focused strategic segments, our brand will be synonymous with a quality experience. Connect will be the preferred choice to receive FACING CHALLENGES What has been the greatest business challenge you have faced, and how did you overcome it? “I’ve had the opportunity to work across the world and experience the unique challenges of each of the continents and countries I have operated in. In all cases what I refl ect on is the strength of the teams I’ve worked with and how important developing and harvesting talent is. I have used the multicultural experience I have to overcome many challenges I have faced. I led an M&A in Lagos Nigeria. Weeks after the completion, the currency devalued by 200% in an import driven economy, the ebola virus crisis hit and the local economy ground to a halt. Here I learnt adaptability, re-establishing everything from price to supply. Many businesses failed in that time period, we focused on setting three-month plans as anything longer was too unpredictable. I’m pleased to say that business absorbed $35 million of gross margin impact and with as a result of our plans, it is operating today successfully in the region.” - Gary Blythe, managing director, Starlinks The Starlinks team at its headquarters in Saudi Arabia. Starlinks is launching its ‘Connect’ app - an open network parcel pick-up and drop-off service.COVER 14FEBRUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com to our platform, we will launch our ‘what if’ application, which will give us the advantage of modelling any requirement in minutes depending on the cri- teria to prioritise lower cost, fastest speed, route, tempera- ture and weight constraints on movements. In addition we plan to have launched our crowd source ap- plication by Q1 2021, which will or return online purchase across the whole GCC. Our culture will be our competitive edge, our employees will encourage their nearest and dearest to join Starlinks. We will be the owners of our own technology destiny, devel- oping applications that continue to change the game and disrupt what is understood as excellent. Our customers today will still be our customer in 10 years. We will be minimising our impact on the environment and have a neutral carbon footprint through renewable energies and zero waste tolerance across our whole network. What technologies are you implementing this year? Technology is the key foundation of our strategy, we have invested in our own people to manage our products, integrations and developments. I set the team a challenge that any new business should be integrated within our platform within four weeks and they have delivered this. Come to think of it, maybe I should make this two weeks! We run a full suite of Oracle Cloud supply chain apps, of course we never stop and this year we will see the expansion or our WMS and TMS across KSA, we will introduce our proprietary e-commerce pick up and drop off solution under the ‘Connect’ brand. Our customer solutions team are pushing hard on the development of demand-and-supply planning ap- plication supported by intuitive business intelligence. On the transportation side some very exciting additions FA ST FACT 645,000 CBM OF TEMPERATURE CONTROLLED WAREHOUSING IT IS IMPORTANT TO US THAT WE BRING MORE TO THE TABLE THAN RATES AND QUALITY. OUR SERVICES WILL ALWAYS BE TAILORED TO THE BUSINESS WE ARE SERVING WHO OFTEN HAVE A CLEAR NEED FOR MARKET LEADING SUPPLY CHAIN.” GARY BLYTHE, MANAGING DIRECTOR, STARLINKS connect over 50,000 drivers and assets across KSA. We will enable them with full track and trace technology so a B2B customer can guarantee in- stant same day movements of pallets anywhere in GCC at 50% of the cost of pallet move- ments on LTL networks today as we will fill the capacity and as such drive down cost. Where do you think the company could improve? It is all about expectations and standards, ‘We Deliver’ means so much to us as our core value and has to remain our main differentiator in the market. We don’t aim to do everything at a world class level, we’ll leave that to the multinationals to promise and aspire to. Our aim is clearer and more focused. Any seg- STARLINKS STRONG FOUNDATIONS • Reputable heritage and presence in GCC and Saudi Arabia • Reach to over 30,000 points of sale on B2B • Asset ownership strategy • Multi category and channel experience and trade relationships • Top tier technology partners - Source: starlinks-me.com Starlinks is going through a massive growth phase.COVER 15LOGISTICS MIDDLE EAST | FEBRUARY 2020www.logisticsmiddleeast.com Starlinks has plans to expand further in KSA, and enter into the UAE, Oman and Bahrain, according to Gary Blythe, Starlinks managing director. ment or customer business model in which we operate, we will be second to none. I am asked over and over why we aren’t doing parcel final mile in the traditional sense - because we can’t promise the kind of quality that is synonymous with a Starlinks solution, given the many of the challenges in addresses, COD, and privacy. That’s why we are introducing Connect. Is talent in supply chain a challenge in Saudi Arabia? Frankly yes, supply chain and logistics has been through a global revolution over the last 10 years with the adoption of technology and the growth in e-commerce. This, of course, has had the positive impact of attracting young talented technology literate people into the industry. The ripple effect of that is just reaching Saudi Arabia now. I see a huge amount of experience here, but not necessarily innovative and forward-thinking ideas. Our people strategy is to do exactly that, we have nine nationalities on our leadership team, of which 30% are female, and overall our total Saudisation quota will be 35% against an industry norm of 11 to 15%. We are proud of our local heritage and as such we will be fast-tracking young Saudi graduates through our organisation. These are positive signals that our future is in good shape. However it can not stop here, we need to find solutions to keep talent moving into and around the industry and mobility is important in spreading great practices. Logistics is a pillar of Saudi’s Vision 2030, so we are all invested in making it work through promoting local tal- ent and bringing global trends into Saudi and the GCC. Are there any other areas we should watch for with Starlinks, or in the region generally? There will be many players that enter the supply chain services sector, and as such fragmentation is inevitable over the next one to two years and I believe quality will suffer and drive rates to an unsustainably low level. Many are offering services on an asset light model and this will add to the low quality services in the market. Expect further regulation related to licences, safety, tracking and driver hours which will squeeze the smaller local players. Technology enabled asset owned businesses will win along with the multinationals. Starlinks sits firmly in that leading pack, we believe our products, services and solutions will speak for themselves. The next three years will see the region’s supply chain go through transformation in every respect driven by more demanding con- sumers and convenience a must, an expectation of transparency in how and where products are manufactured and delivered to their homes, and huge investment in logistics, infrastructure and digital platforms. Sustainability and environmental impact will be a key differentiator. I see Starlinks winning and winning big. More importantly I see Saudi Arabia becoming a top 10 supply chain market in the world; a gateway that Asia and the west will connect through, with e-commerce reaching 10% to 15% of retail sales and a wealth of delivery solutions for consumers and businesses to choose from. Gary Blythe, Starlinks managing director sees Saudi Arabia becoming one of the top supply chain markets in the world. Starlinks has invested heavily in assets.ETIHAD RAIL DB 16FEBRUARY 2020 | LOGISTICS MIDDLE EAST www.logisticsmiddleeast.com Etihad Rail DB is providing a whole new transport network for the UAE. Etihad Rail DB is providing a whole new means of transport for the UAE, according to Saeed Salem AlSuwaidi, chief executive offi cer, Etihad Rail DB CLEARING THE SANDS FOR PROGRESSETIHAD RAIL DB 17LOGISTICS MIDDLE EAST | FEBRUARY 2020 www.logisticsmiddleeast.com The vast, open plains of the Arabian Desert pro- vide some of the most opportune landscapes for a major railway development, and this was a key consideration behind the ground-breaking railway project, which is introducing an entirely new industry – and transport infrastructure – to the UAE. Building a new future for the UAE’s transport sector Etihad Rail DB, a joint venture between Etihad Rail, the de- veloper and owner of the UAE’s national railway network, and Deutsche Bahn (DB), one of the world’s leading passenger and logistics companies, is responsible for the operation and main- tenance of Stage One of the national railway network, providing integrated transport solutions to ensure the delivery of safe, efficient and reliable services. Built to the highest international standards, and with the first phase already up and running since 2016, the state-of- the-art project is set to redefine logistics and transport in the region, providing a modern, safe, efficient and sustainable new transport system. Safe, efficient and reliable services delivery Stage One of the project has been operational since 2016. Today, 22,000 tonnes of granulated sulphur are being transported each day from Habshan and Shah to Ruwais for Abu Dhabi National Oil Company (ADNOC). Year-to-date, Etihad Rail DB has moved more than 6.5 million tonnes of granulated sulphur, bringing the total volume of sulphur transported since inception to 28 million tonnes in 2,817 train trips. As such, the railway has contributed to a total annual CO2 saving of 44,000 tonnes per year. Significant progress is also being made on the training and workforce development front. Since inception, Etihad Rail DB has been committed to developing industry-leading skills right here in the UAE and to promoting international knowledge transfer to empower and nurture local talent. In 2017, Etihad Rail DB, in partnership with Abu Dhabi Vocational Education and Training Institute (ADVETI), intro- duced the UAE’s first Rail Diploma programme. Through this programme, Etihad Rail DB provides occupational training and shared learning opportunities for Emirati students, who can specialise in one of four professions – train captain, train controller, rolling stock technician and systems technician. The programme has seen great success to date, with the first batch of the UAE Rail Diploma students joining Etihad rail DB for their final year work placement in September 2019. Ensuring operational readiness at the highest international safety standards Stage One is 264km long and includes 10 under-bridges, 29 over-bridges, 12 pipeline crossings and 30 culverts that stretch across the desert’s terrain. Besides the operations, Etihad Rail DB’s core competence is the maintenance of both track and rolling stock throughout the year. This knowledge is particularly important as one has to consider that for example high temperatures in summer, coupled with the changes in the levels of humidity, can lead to a corrosive ‘Sabkha’ type environment. These conditions must be managed well to ensure full operational readiness of all assets. This is why, much time has been spent by Etihad Rail ETIHAD RAIL DB 18FEBRUARY 2020 | LOGISTICS MIDDLE EAST www.logisticsmiddleeast.com DB on training and maintaining the highest international safety standards, which paved the way for the successful achievement of outstanding performance and safety records. Sand mitigation is key Sand movements are usually unpredictable and Etihad Rail DB’s team works diligently to make sure that the track remains unobstructed and safe for the passage of trains. The team of Etihad Rail DB has also employed its practical experiences and learning to develop innovative mitigation measures. Driven by practical experience, the team has tai- lored a unique Weather Analysis Program Dashboard, which is consistently utilised, to effectively identify the wind’s impact on areas that had been categorised as ‘hot spots’ for sand movement. And if immediate action is required, Etihad Rail DB’s team stand ready. When sand was blown onto the tracks in February and March 2019, Etihad Rail DB’s teams mobilised immediately, deploying the necessary resources and manpower to clear the tracks, while ensuring to adhere to environmental regulations. Etihad Rail DB’s teams work diligently to keep its tracks sand free. Etihad Rail DB trains each and every employee in work-place safety. For Etihad Rail DB, safety is at the heart of its operations. BUILT TO THE HIGHEST INTERNATIONAL STANDARDS, AND WITH THE FIRST PHASE ALREADY UP AND RUNNING SINCE 2016, THE STATE- OF-THE-ART PROJECT IS SET TO REDEFINE LOGISTICS AND TRANSPORT IN THE REGION, PROVIDING A MODERN, SAFE, EFFICIENT AND SUSTAINABLE NEW TRANSPORT SYSTEM.” SAEED SALEM ALSUWAIDI, CEO, ETIHAD RAIL DB With safety in mind, and at the heart of Etihad Rail DB’s operations and activities, the company boasts a word-class safety record. Etihad Rail DB adheres to a stringent set of Health, Safety and Envi- ronmental regulations and international standards and utilising competent industry experts. As such, Etihad Rail DB pays utmost attention to the safety of its employees and operations, ensuring the implementation of in- ternational best practice and safety standards at all times and across all aspects of the company’ business. All of the company’s employees are experienced and trained to conduct a safe railway operation, and consequently receive sufficient practical safety training before taking part in any type of work related to the Etihad Rail DB rail- way infrastructure. Etihad Rail DB also strives to raise awareness around safety among com- munities and the general public by carrying out safety awareness and community outreach campaigns. The future is bright Since day one, everyone in- volved in this railway project has been working to build a new industry that will rede- fine logistics and transport in the region to support the government’s mission to build a diversified economy. Etihad Rail DB is right at the heart of this progress. In 2019, the company was appointed to provide ‘Shadow Operator’ services for Stage Two of Etihad Rail, owing to its long expertise and success in managing Stage One opera- tions and maintenance. In its ‘Shadow Operator’ role, Etihad Rail DB will aim to utilise its expertise from Stage One to provide consultancy services to Etihad Rail in preparation for Stage Two. Building an entirely new industry takes both skill and commitment, and Etihad Rail DB is diligently contribut- ing to continuously realising this bright, new future. 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