< PreviousCOVER STORY 10MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Fadi Amoudi, founder & CEO IQ Robotics , IQ Fulfillment & IQ Xpress. IQ GETS YOU MOVING FADI AMOUDI, FOUNDER & CEO IQ ROBOTICS , IQ FULFILLMENT & IQ XPRESS TALKS LOGISTICS MIDDLE EAST THROUGH THE ROLE OF HIS COMPANY IN THE TECHNOLOGY FOR LOGISTICS FIELD, AND PARTICULARLY E-FULFILMENTCOVER STORY 11LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.comCOVER STORY 12MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com The Middle Eastern supply chain sector is booming as e-com- merce gains popularity and, as it grows, companies will need to work harder, faster, and smarter to keep their piece of the pie. Revenue from just the food delivery market is expected to grow at an annual growth rate of 13.6%, resulting in a market volume of US$2.8- billion by 2023. “In the Middle East, we are experiencing a boom in the e-commerce vertical, what was once a luxury for some, is now a requirement for all. Warehouses and distribution centres are required to deliver instantly and without fault,” stated Fadi Amoudi, founder & CEO IQ Robotics , IQ Fulfillment & IQ Xpress. “The beauty about the supply chain and tech sectors, is that it will never weather or die, in days of prosperity investments increase, people shop, and markets grow, which drives the wheel forward, and on other days, the supply chain is expected to maintain its output while being cost efficient, because still everybody wants to eat, drink, shop, fly and drive.” Nations such as the UAE and Saudi Arabia, as well as the rest of the GCC are eager to embrace the growth and disruption in the e-commerce and e-fulfilment sectors, and are taking steps to achieve a new vision and global standing for their countries, in ways that are envi- ronmentally friendly, and an enhancement to their residents daily activities. “We at IQ believe that robotics are not just in movies and spaceships, they are in your own backyard, in Dubai Investment Park, fulfilling your orders and your vision of the future. We believe in Dubai. We believe e-commerce in the region will grow more than predicted; this vertical is very interesting and promising and we are the first market mover,” noted Amoudi. A lot of technologies are becoming more and more es- sential in the supply chain and FA ST FACT 3.5X GROWTH EXPECTED IN THE E-COMMERCE MARKET BY 2022 WE AT IQ BELIEVE THAT ROBOTICS ARE NOT JUST IN MOVIES AND SPACESHIPS, THEY ARE IN YOUR OWN BACKYARD, IN DUBAI INVESTMENT PARK, FULFILLING YOUR ORDERS AND YOUR VISION OF THE FUTURE. WE BELIEVE IN DUBAI. WE BELIEVE E-COMMERCE IN THE REGION WILL GROW MORE THAN PREDICTED; THIS VERTICAL IS VERY INTERESTING AND PROMISING AND WE ARE THE FIRST MARKET MOVER.” FADI AMOUDI, FOUNDER & CEO IQ ROBOTICS , IQ FULFILLMENT & IQ XPRESS. TOP TIPS FOR FINDING THE RIGHT TECH PARTNER • Find a partner that speaks your language: Whether you are looking to increase your efficiency, or reduce your running cost, end goal align- ment is key in order to meet expectations. • Experience over glamour: Look for the partner that has been through multiple educational implementations, the influence of these expe- riences equates to millions in R&D. • Does it make financial sense? A study of the in- vestment in technology and automation compare to en- hancements in the fulfilment process is essential in order to derive a pure formula that will fuel your transformation. • A clear understanding of technology: Setting realistic goals based on the current technology in the market is key to pave the way towards the future, you might have a vision for the way things should be, continuous im- provement is the key. • Team, team, team: Artifi- cal intelligence can never replace the human touch or influence, make sure that your partner will be on the battle ground, before, during, and after.COVER STORY 13LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com logistics sector: robotics, smart tech, and analytics for example, but the real question would be what the defining need behind these technologies is: Is it digital? Is it automation? Hardware or software? Or both? “In my opinion it has to be a hybrid of both, nowadays every- one requires a WMS [warehouse management system], but what people are figuring out is that this is not enough anymore. Or- ganisations require a WMS, OMS [order management system] and a TMS [transportation manage- ment system] all linked into a data hub,” stated Amoudi. “Robotics and automation is crucial, it’s a norm in many countries, but new to our region. When you talk robotics, you talk 99.9% picking accuracy rate, 3X human output, 70% less labour and seamless integration.” According to Amoudi, the next big technology must-have are robotics for fulfilment, and drones and unmanned vehi- cles for delivery. E-fulfilment According to Amoudi, the e- fulfilment sector in the GCC region is still underserved, and not only, that but much of it is still run using manual processes, increasing margins of error. “IQ Fulfillment offers the most advanced integrated automated e-fulfilment solu- tion in our region to SME’s powered by robotics and AI to take the burden of fulfilment off their shoulders. With the rapid growth of e-commerce in our region and the focus and attention that governments give to the e commerce indus- try, the e fulfilment sector is expected to grow tremen- dously,” noted Amoudi. The e-commerce market in MENA has the potential to grow 3.5 times by 2022, reach- ABOUT IQ IQ Holding is a technol- ogy holding company that is specialised in the supply chain and logistics sectors. We operate Middle East and Africa, but we are looking at targeting the United States, and Europe too. IQ Robotics is a technol- ogy engine that is disrupting the logistics and supply chain industry. It has exclusive strategic partnerships with global leading companies in the verticals of robotics, AI, warehouse automation, software solutions that are tailored and customised by IQ in order to transform the regular brick and mortar into the new digital era. We cre- ated a centre of excellence out of Dubai. IQ Fulfillment is the first robotic fulfilment solution in the MEA region, integrating seamlessly with e-commerce operators, taking the burden of fulfilment off their busi- ness and freeing up resources to grow their brands. Our advanced intelligent robotic solutions and cutting-edge software platform ensure the most efficient and innovative revolutionary fulfilment solu- tions in the region. IQ Xpress is a carrier solutions marketplace built around a powerful TMS soft- ware that offers cross border, first mile and last mile ser- vices. It is our carrier engine that enables us to grow and scale up all over without own- ing assets. IQ Ful llment is the rst robotic ful lment solution in the MEA region. IQ Robotics produces robots to help with warehousing tasks.COVER STORY 14MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com ing a total market size of $28.5 billion and a penetration rate of seven per cent of total retail sales, similar to what is seen in continental Europe today. “We aim to transform the entire e-fulfilment sector and we are starting from within. IQ Fulfillment is the first robotic fulfilment centre out of Dubai, UAE and we aim to open connected robotics fulfilment centres all over our region,” said Amoudi. “We think of ourselves as enhancers rather than disrupters as we would like to enhance customer experience by offering them the latest technologies in the e-fulfilment space. We are also ready at IQ Robotics to share this knowledge and technology with whomever wishes to transform from the regular brick and mortar into the new digital era. “I believe that to transform one should be organisa- tionally and mentally ready to take that step. That being said we are trying to bridge the gap in the e-fulfilment side from a personal level since we created a centre of excellence out of Dubai with all the qualified people that will design, process, implement and service such transformational projects while working closely with business owners hand by hand. IQ likes to keep it sim- ple, and has built its three companies for that purpose. “If you want it we can supply it, if you need it we can fulfil it. Our technology, services and know-how tends to all corners of the supply chain in terms of optimisa- tion and efficiency. We offer advanced technology to the world, we set it up we operate it, we maintain it, and in case you don’t have the budget for it, you are more than welcome to use our own at IQ Fulfillment and IQ Express,” explained Amoudi. One of IQ’s projects increased the project partner’s throughput by over 175%, and decreased costs by 42% through the development of a fully automated facility. Automation was achieved by using a combination of robotics, high end material handling, and warehouse, and transportation management software. “Our region needs a plug and play, turn-key solution that is ready to deploy, hassle free! Stress free! And we are going to fill it by offering various industries different automated connected fulfilment solutions that’s special- ised in each industry,” he said. “Technology alone will never be enough. Technology with people and humans working together side by side is the optimal effective solution,” stated Amoudi. IQ FULFILLMENT, MENA RE- GION’S FIRST ROBOTIC FULFIL- MENT CENTRE, OPENS IN DUBAI IQ Fulfillment, the Middle East and North Africa region’s first robotic fulfilment centre, has opened in Dubai. Launched by IQ Holding, the centre provides full back-end solutions using the latest in robotics, AI and software platforms to support the supply chain and logistics industry. IQ Fulfillment supports the needs of SMEs, incubators, accelerators and e-commerce players, enabling them to accelerate their business growth. Using the latest in technology and robotics to integrate seamlessly with clients’ online platforms, IQ Fulfillment delivers fulfilment, storage, package protection and other services. Fadi Amoudi, founder & CEO of IQ Fulfillment, said: “IQ Fulfillment fills a distinctive niche in the region, especially with the focus of the MENA region to build its e-commerce ecosystem. Today, the UAE is at the forefront in driving digital technologies and in supporting SMEs to achieve transforma- tional growth. This presents a strong growth environment for innovative tech-companies such as ours. “We chose the UAE and Dubai for this pioneering initiative due to the strong digital infrastructure present here, and the focus of the leadership to drive digital transformation through forward looking technology and innovation. With the city preparing for Expo 2020, we see the opening of IQ Fulfillment as meeting a need in the market to support SMEs and other enterprises to build their digital enterprises in the most cost- effective manner.” Ensuring end-to-end services, IQ Fulfillment will help ad- dress logistical challenges experienced by SMEs such as large number of orders during seasonal peaks, which can lead to bottlenecks during that period. IQ Fulfillment helps address these gaps through their unique service. Utilising robotic and AI solutions, IQ Fulfillment assures many features to boost efficiency and productivity. The robotic technologies used at the centre help process 12,000 robotic orders daily, delivering a 99.9% accuracy rate, and three times the human output and the same technology is used by the largest international companies, such as Ali Baba. With a proof of concept warehouse spanning an area of 45,000 square feet, IQ Fulfillment deploys cutting- edge technology from its global partners and is led by a team of expert and multicultural professionals. Among the key features of IQ Fulfillment are robotic picking, seamless integration, end to end track & trace, full live visibility, intelligence storage, package protection, cross docking, quality control measures, return management, plus customised value added services such as gift wrapping, and seasonal packing. According to the latest study by Dubai Economy and Visa, the UAE has the most advanced e-commerce market in the MENA region, with e-commerce transactions set to reach over AED59 billion this year and to grow 23% per annum through 2022. This presents a growth opportunity for IQ Fulfillment, as it is the only organisation to offer the full range of digital and physical infrastructure- backed by robotics technology – to support the digital ambitions of businesses – both start-ups and established companies. SMEs only need to build an app or website based on their business model, and IQ Fulfillment, will support them with warehousing, order processing and delivery by taking all logistical aspects to the highest levels of efficiency. According to Amoudi, the e-ful lment sector in the GCC region is still underserved.For more information call +971 4 391 0062 or visit www.dubaiindustrialcity.ae 750+ Business Partners 200+ Operational Factories 8.4M SQFT Warehouses ready to use THE LEADING MANUFACTURING AND LOGISTICS HUB IN THE REGIONwww.logisticsmiddleeast.com savings but also performance and safety gains for ports and the companies that do busi- ness there. Nonetheless, ports are mov- ing more slowly than sectors with comparable complexities, in part because the economics of automating them haven’t lived up to expectations. In the mining sector, which is also process driven and asset intensive, some early movers in automation have improved costs and productivity by 20% to 40%. In the warehousing business, the improvements have been estimated at 10% to 30%. Manufacturers of cars and trucks have also suc- cessfully automated complex processes, and some of the equipment they use, such as automated guided vehicles and materials-handling robots, are highly relevant for ports. Yet McKinsey’s recent sur- vey of industry leaders indi- cates that the real-world per- formance of most automated ports doesn’t increase suffi- ciently in every material way. Safety improves, the number of human-related disruptions (such as shift changes) falls significantly, and performance becomes more predictable. But practitioners responding to the survey think that these ports, especially fully automated ones, are generally less produc- tive than their conventional counterparts. The return on invested capital of assets at some automated ports is falling short by up to one percentage point from the industry norm of about eight per cent. McKinsey report ‘The future of automated ports’ discusses the challenges and successes of port automation PORTS OF THE FUTURE Although ports have adopted automation more slowly than comparable sectors, notably mining and warehousing, the pace is now starting to accel- erate. Automated ports are safer than conventional ones, according to the McKinsey report. The number of human-related disruptions falls, and performance becomes more predictable. Yet the up-front capital expenditures are quite high, and the operational challenges—a shortage of capabilities, poor data, siloed operations, and dif- ficulty handling exceptions—are very significant. A McKinsey survey indicates that while operating expenses decline, so does productivity, and the returns on invested capital are currently lower than the industry norm. Nonetheless, successful automated ports show that careful planning and management can sur- mount these difficulties: operating expenses could fall by 25% to 55% and productivity could rise by 10% to 35%. And in the long run, these investments will lead the way toward a new paradigm—call it Port 4.0—the shift from asset operator to service orchestrator, part of a larger transition to Industry 4.0, or digitally enabled efficiency gains throughout the world economy. Port 4.0 will generate more value for port operators, suppliers, and customers alike, but that value isn’t proportionally distributed across ports and their ecosystems. Innovative business models and forms of collaboration will be required to realise this vision, according to the McKinsey report. The difficult economics of port automation The first automated container port was developed in Europe in the early 1990s. Since then, many ports—more than 20 in the past six years—have installed equipment to automate at least some of the processes in their terminals. Almost 40 partly or fully automated ports now do business in various parts of the world, and the best estimates suggest that at least $10 billion has been invested in such projects. According to McKinsey, the momentum will probably ac- celerate: an additional $10 billion to $15 billion is expected over the next five years. On the face of it, container ports seem ideal places to automate. The physical environment is structured and predict- able. Many activities are repetitive and straightforward, stated the report. They generate vast amounts of readily collected and processed data. Better still, the value from automation includes not only cost By implementing automation successfully, operating expenses could fall by 25% to 55% and productivity could rise by 10% to 35%. P h o to by a m m ie l jr o n U n sp la sh 16MARCH 2020 | LOGISTICS MIDDLE EAST FEATURE | PORTSPORTS | FEATURE 17LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com What does the ‘port of the future’ look like to you? Ports might have been one of the slowest industries to embrace transformation, but things are changing rapidly against the backdrop of technology and innovation. With the maritime industry responsible for 90% of global trade and an upswing in the e-commerce market, there is a need for deeper technology integration and innovation in the industry. It has generated a drive towards enhancing port efficiency, lowering cargo handling costs and integrating port services with other components of the global distribu- tion network. Due to this narrative, we are already getting a glimpse of what ports of the future will look like. Port operating companies are now focused on different strategies to optimise operations within the supply chain. Ports have become keen to implement efficiency-driven technologies such as: Artificial Intelligence (AI), Block- chain, and ‘Internet of Things’ (IoT) to digitise and automate processes, offering customers pricing benefits and faster services. Stevedores handling cargo nets are being replaced by tech-driven solutions, freeing up staff to perform more complex and strategic tasks. We have also seen efficient digital cargo management processes replace lengthy manual accounting systems used in legacy processes. It is evident that conventional ports are evolving and will continue to do so in the coming years. The ports of the future have immense potential and we are already there. We envisage that ports will be bigger, faster, greener, automated and smarter. These ports will generate more value for port operators, suppliers, and customers alike. They will also create new jobs with roles that require new skills to be learned by the workforce. Eventually, automated carbon-neutral ports will become increasingly common, and conventional equipment within ports will be replaced. What technologies are becoming essential for e ec- tive port operations? Automation, where it is currently in use, not only includes robots on the warehouse floor, but also blockchain, AI and data processing technologies that can gather and process information more efficiently, further eradicating chances of human error. It promises to deliver unmatched productivity. Blockchain-enabled technology has the potential to provide a transparent, secure and accurate way of capturing and sharing data with key parties. It offers a way of securely linking the disparate systems that shippers, port operators and hauliers use to record and track goods while reducing the time spent manually re-entering data. A number of port operating companies are already leveraging blockchain technology to simplify the lengthy and time-consuming data management procedures. As a port operating com- pany, we have heavily invested in blockchain prototyping to enhance the speed of operations and delivery time, while also increasing data security and transparency. Another technology, Aug- mented Reality (AR), has shown massive potential in improving day-to-day port operations. AR is being used globally by some companies to provide crew-members with visual support during their watch-keeping and ship opera- tions through real-time videos, imagery and voyage informa- tion. AR also offers informa- tion on other vessels sailing on a vessel’s planned route, along with other ocean conditions, such as water depth. Autonomous drones are proving to be a game changer for the ports industry. Drones are able to fly over storage areas and calculate inventory in mass quantities with great accuracy in a time-efficient manner. They could be used to view areas that are dif- ficult to access, allowing a safer and more cost-efficient way of inspecting operation- critical processes. They help companies transport goods speedily and in an envi- ronmentally friendly way. Drones can also be poten- tially used throughout the supply chain to transport high-value or emergency car- go. They increase efficiency while decreasing costs and carbon emissions. Automated mooring for stabilising mega ships is an- other technology being ex- plored. This advancement is especially critical in the era of mega vessels, ensuring that they are moored with greater stability than is pos- sible with conventional line- based mooring. Consequent- ly, this allows port operators to handle the larger number of containers more efficiently. How are ports going to have to change/modernise their operations to reduce envi- ronmental impact? Port authorities and companies are now being challenged by evolving sustainability agendas to find efficient and creative methods to manage ports more effectively. With the current focus on reducing carbon emissions, fu- ture port development and the protection of the environment will go hand in hand. Reducing emissions has become a priority. Companies have started to edu- cate their employees and make information available about the environmental performance of sea transport providers. New data is enabling companies to set environmentally friendly bench- marks for shipping, while the use of smart data creates visibility for resource management and the potential to save energy. Port operators are laying the foundation for sustainable operations by establishing a digital infrastructure and uti- lising automated cranes. They are beginning to leverage the Internet of Things (IoT) to in- tegrate information from ports into the maritime information network, making relevant data accessible for shipping partners in a secure manner. This in- creases not only efficiency, but also transparency as it aids in the processing of cargo infor- mation as well as supporting other port processes associated with the flow of containerised cargo. This reduces the carbon footprint within the operations process as employees can use intelligence and data to under- stand the optimal time to un- load cargo and utilise software MAKING A ‘FUTURE PORT’ Peter Richards, group CEO, Gulftainer describes the technological transformation of portsCASE STUDY | FEDEX 18MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Peter Richards, group CEO, Gulftainer. THE PORTS OF THE FUTURE HAVE IMMENSE POTENTIAL AND WE ARE ALREADY THERE. WE ENVISAGE THAT PORTS WILL BE BIGGER, FASTER, GREENER, AUTOMATED AND SMARTER.” PETER RICHARDS, GROUP CEO, GULFTAINER to control cranes remotely to get work done. Port operators will lever- age 5G to make the overall operations process envi- ronmentally sustainable. Utilising real-time data ac- cess, combined with IoT, 5G can streamline operations processes, reduce vessel and vehicle waiting time and con- gestion, thereby reducing pollution while improving overall efficiency. There is an ongoing en- deavour to transition from linear economies to circular economies globally - a debate in which ports play a key role by bringing manufacturing and various related indus- tries together and supporting the efficient movement and treatment of waste materials. This could play a massive role in redefining the use of cer- tain products. For example, where waste products from one industrial process could be used by another company for processing further down- stream in the supply chain, not only are we reducing waste, and minimising negative impacts on the environment, but also open- ing a new and dynamic range of opportunities for businesses. How are robotics changing how ports work? A recent Oxford Economics re- port has noted that the number of robots being used worldwide has tripled in the last ten years to 2.25 million. We have ob- served an enormous shift in how companies feel about us- ing robots as they realise the potential the technology has to offer. For example, robots are be- ing commonly used at ports globally to handle time con- suming, labour-intensive tasks such as unloading goods from cargo haulers. Some companies are using unmanned robots to change batteries at swap sta- tions of automated guided ve- hicles at the port. This kind of automation offers competitive advantages by allowing port operators to handle a larger number of containers more efficiently. It also frees up humans to do more complex tasks such as optimising procedures and reducing long- term operating costs. Not that robots don’t present their own unique challenges. They need be adapted to the kind of environment they are operating in and they need to be monitored closely. Companies need to ensure they invest in the right supporting technology such as cameras and sen- sors, as well as the right robotic technology that will be able to identify the obstacles and adapt to the challenges of its tasks. Going forward, robots will also form their own supply chain/maintenance industry. This will add new and distinct jobs that have not been seen on the waterfront. Fortunately, due to the advancements in technology today, smarter robots have become a reality and a true investment. We believe that robots and automation technology will be used increasingly to supplement humans in routine tasks that do not require strategic human input and to increase the overall safety of humans within the port environment. FEATURE | PORTSBRAND VIEW 19LOGISTICS MIDDLE EAST | NOVEMBER 2019www.logisticsmiddleeast.com 1. What are the latest developments in the freight forwarding sector in Saudi Arabia? Saudi Arabia is going through a development shift to diversify its economy. In line with 2030 vision, the freight forwarding sector is undergoing significant restructuring which has created an impact on all parties in the chain. The restructuring ranges from better enforcement of regulatory requirements to heavy investments into infrastructure . The country hopes to tap on its strategic loca- tion and become a trading hub that connects Asia, Europe and Africa. At Hellmann we are tuned in on our customer’s needs through our holistic approach which adds value to the overall efficiency and profitability of our customers’ bottom line. 2. What are the challenges facing the freight forwarding sector in Saudi and how can they be overcome? Some of the key challenges this sector will be facing in the years to come are undoubtedly knowledge transfer, technology and access to qualified work- force. Saudi Arabia needs automation solutions to reduce time and cost with importing and exporting. At Hellmann Saudi Arabia, our understanding of customer needs combined with industry’s best practice, enables us to work closely with govern- ment entities who ask Hellmann to provide our view on the future Logistics landscape within the Kingdom. This is a great example of how collaboration between industry associations, government entities and multinational companies, such as Hellmann, will prove decisive for a successful knowledge transfer. In Saudi Arabia, it’s a must to have Sau- disation as the country is set to take a giant leap in very short period of time. We have more than 40% Saudi nationals working in Hellmann and adapting to our Hellmann culture. 3. What milestone freight forwarding sector moments have happened in Saudi during the last 12 months? First and foremost, the changes in customs pro- cedures have had an immediate and significant impact on the import business in Saudi Arabia. Albeit the reduced free time at entry points Hell- mann has been able to pass on remarkable cost sav- ings solutions to our customers through optimised clearance and delivery processes enabled by the changes in customs. Furthermore, it’s worth men- tioning the regulatory changes in the road freight sector which has opened up the door to interna- tional standards of safety and traceability and this Hellmann Worldwide Logistics LLC discusses freight forwarding in Saudi fills a gap which we benefit greatly from in our various industry verticals - especially within the healthcare transportation sector. The road freight segment has long been very volatile and in 2020 and we expect to see a further consolidation bringing about a multitude of positive changes and increased stability. 4. How is Saudi’s freight forwarding making its sector more environmentally friendly? The QHSE department are heavily involved and passionate about reducing our carbon footprint. This goes down to great details such as using LED bulbs, double sided printing, placing recycling bins around our facilities and placing awareness posters around our warehouses and offices. Hellmann is currently in the process of working with its sup- pliers to ensure environmental compliance. This ensures that all of Hellman’s business partners are pro- moting an environmental atmosphere and are reducing their carbon footprint. Combining these efforts with our Continuous Improvement Process (CIP) within the organisation, Hellmann strives to provide sustainable and comprehensive logistics solutions to our customers. CIP is a management philosophy that focuses on frequent simple activities to create lean processes and people engage- ment, which helps develop innovative processes and leadership capability internally to provide a sustainable working relation- ship with our customers and ensures a transparent and stable supply chain for them. The interaction of these principles leads to increased quality, stable supply chain, increased efficiency, cost effective and offer better solutions through people engagement. By Lars Nielsen, managing director, Hellmann Worldwide Logistics Saudi Arabia Hellman Worldwide Logistics LLC says the freight forwarding sector is undergoing significant restructuring.Next >