< Previous20MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com COUNTRY FOCUS | SAUDI ARABIA The Saudi Arabia freight and logis- tics market is estimated to be valued at US$22.95 billion and is estimated to grow at a CAGR of 7.35% during the forecast period. - The Saudi Arabian freight and logistics industry is a large and dynamic industry, strongly supported by state-led investments in rail, maritime, road, logistics, and airport infrastructures. Economic growth, population maturation, and rapid urbanisation are the factors driving the Saudi Arabian government to invest in the massive expansion of the country’s transportation networks. - In January 2019, the Saudi Arabian energy minister Khalid al-Falih announced that the country is raising US$427 billion in private sector investments, which may include roughly US$36 billion for logistics infrastructure. The investment may be used to develop Saudi Arabia into a gateway for the trade supply chains of Africa, Asia, and Europe. - Saudi Arabia is determined to broaden the role of the private sector, as it pushes to diversify its economy. Pri- vate entities are being encouraged to collaborate with the government, as they develop the country’s transport infrastructure. Partnership is being sought for the opera- tion of seaports, airports, and their related supply chains. Public-private partnerships (PPP) are being pursued to fund several key schemes, while a number of the coun- try’s publicly operated transportation facilities are being prepared for full privatisation. - Technology is improving the security, transparency, and control over the import-export process in the country. Cur- rently, importers track the status and progress of their shipments in real time. Customs brokers receive automated notifications on their mobiles about the status of their shipments and are prompted to create their declarations as soon as the shipping manifest is available online, prior to ship arrival. Key market trends: King Abdullah Port is witnessing huge growth in maritime throughput Saudi Arabia has the largest seaport network in the Mid- dle East, with nine major ports and around 200 piers that handle more than 90% of the country’s trade. Out of the nine major ports in the country, six are commercial and the three are industrial ports. The seaports in the country have gradually developed over the years. The number of berths for vessels increased from 33 in 1976 to 224 in 2017. The Saudi Arabian ports have an overall cargo handling capacity of around 600 mil- lion metric ton. Under the national development strategy, Vision 2030, one of the main objectives of Saudi Arabia is to replace the exports of oil and related products with the exports of other products. This objective requires a sub- stantial increase in the seaport and logistical infrastructures for containerised exports. Additionally, the government is boosting the upgrading of ports to better handle the in- creasing number of ultra-large container vessels (ULCVs) that are travelling across the global shipping lanes. In addition to the existing nine ports in the country, the King Abdullah Port (KAP) opened in 2014, and it significant- ly expanded the country’s container-handling capabilities. Additionally, it is one of the largest private infrastructure investments in Saudi Arabia. The KAP makes the country a linking point for the three continents, namely, Asia, Europe, and Africa. All the coun- tries in the region are planning to become logistic hubs for trans-shipments into Africa. The King Abdullah Port was ranked the second-fastest growing port in the world in 2018, according to Alphaliner, the global leader in analysing maritime transport data, port capabilities, and the future of vessels and shipping route development. The port was ranked eighth in 2017. Out of the 100 largest container ports in the world, the port was ranked 83rd in 2018 and was ranked 87th in 2017. In 2018, the annual throughput of the King Abdullah Port increased to 2,301,595 TEUs, which represented an increase of more than 36%, as compared to that in 2017. Thus, the KAP maintaining its position as the second-largest port in the country, in terms of container handling. The annual increase in throughput in 2018 was primarily achieved in conjunction with an 8% increase in imports and exports, as compared to those in 2017. Use of logistics in the distributive trade sector is an- ticipated to witness highest growth The Saudi retail sector supplies a population that is ex- pected to reach around 35 million by 2021. With recent economic reforms, the sector has been affected mainly by subsidy cuts that have increased utility costs, and by the new Saudisation law that has increased labour costs by 15%. Furthermore, seeing stagnation in their real dispos- able incomes, consumers are increasingly cutting back on spending and looking for ways to save money. With these reforms and changes, there are retail trends that will influence the industry’s future growth, including SAUDI FREIGHT AND LOGISTICS MARKET - GROWTH, TRENDS, AND FORECAST (2019 - 2024) Mordor Intelligence LLP analyses the Saudi Logistics Market21LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com SAUDI ARABIA | COUNTRY FOCUS offering more budget goods, e-commerce, implementing omni-channel strategies, and artificial intelligence (AI) among others. The government aims to increase the contribution of e- commerce to 80% of the retail sector by 2020. The success and anticipated pace of growth of the Saudi e-commerce market can be attributed to the fact that 70.49% of the population used the internet in 2017, and this figure is projected to grow to 73.45% in 2022. According to the Saudi Communications and Information Technology Commission (CITC), by 2020, the e-commerce market in the Kingdom is expected to grow to US$8.35 billion. Wholesale and retail sector (16% of non-oil GDP) re- corded growth of 0.8% in 2018, slightly better than the 0.6% registered in 2017. The improved level of growth in 2018 was achieved despite the introduction of VAT and rising costs related to expat levies. Competitive landscape Shipping and logistics activity relies heavily on road trans- port services. The market is heavily fragmented and in Saudi Arabia only a handful of large trucking companies providing services, such as Crescent Transportation, Al- majdouie Transport, and Saudi Land Transport Company, which compete head-to-head with leading regional and global logistics providers in the Middle East. The ware- housing and distribution segment of the transportation and logistics sector is growing rapidly. Several international logistics companies, such as Agility, have been able to pen- etrate the growing market and win government contracts. Still, there remains significant and increasing demand for experienced providers of logistics, in support of both the transportation side of the sector and the distribution of retail products, throughout the country. It is observed sig- nificant number of international players are present in the market. International companies are partnering with local players to form joint ventures. This provides an op- portunity for local players to exploit the global network of international companies. Source: Mordor Intelligence Saudi Arabia’s logistics sector is witnessing rapid growth.22MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com INTERVIEW | TRUEBELL In 2018, Truebell opened its 25,000 square metre purpose-built facility, which is equipped with state-of-the-art storage solu- tions, and energy-e cient machinery, as well as featuring over 700 square metres of green space. The facility boasts cutting-edge technology in warehouse and fleet management systems, including over 20 different types of specialised material-handling equipment, 21 multi- purpose loading bays, and has the capacity to receive over 7,000 containers annually. It also houses a test kitchen and bakery stocked with equipment suitable for creating new products. Comprising multi-temperature storage, the fulfilment centre can accommodate up to 21,000 storage locations made up of frozen, chilled and dry food, as well as non-food retail items. Meticulously planned to have the highest efficiency and a reduced carbon footprint for an operation of this magnitude, the new distribution centre comprises various stand-out features which contribute to it being the first of its kind in the region, according to Bhushant J. Gandhi, divisional manager, Retail & Food Service, Truebell. These include: • Storage solutions – The main storage solution features aisles with a width (pallet to pallet) of 1,660m. The aisle width is the narrowest in the world and requires high levels of precision to operate. • High-speed doors – These doors are controlled with ma- chine sensitive sensors with separate doors for man entry. The high-speed doors used for the freezer department are made of panels. This again is a first for the region and not only helps us to ensure better insulation but increases our efficiency. • MHEs - This is the first time, man-up order pickers with a 1.2 metre lift height have been used in a distribution centre in this part of the world. Similarly, it is the first time insulated cabin VNA reach trucks have been used. This type of equipment helps ensure maximum productivity by facilitating non-stop operations in the freezer department for long durations. • Check-out counters for dispatch – All deliveries will be made through touch screen check-out counters – again another first in the industry. Items will be scanned to confirm propriety, quantity and shelf life. Orders are pre-packed and barcoded to ensure delivery accuracy. Sustainability “Sustainability has always played an important role in our op- erations, with our focus in previous years on how to improve sustainability through efficient waste management systems, route optimisation in logistics and optimisation of warehouse processes and operations,” said Gandhi. “In recent years, we have strived to reduce our impact on the environment, by im- proving the sustainability of our operation, which resulted in the move to our new distribution centre - our first major step towards realising this vision.” Fitted with LED lighting to conserve energy, Truebell also has tailor-made luminaires in the aisles that focus only on the floor meaning light does not scatter over the racks and thus prevents unproductive usage. Other features include: • Skylight used in ambient storage to save on energy during the day. • Alternate loops used in electric circuit. • Only 50% utilisation when there is no activity inside the racks. • Waste – comprising cartons, shrink-wraps and pallets are recycled. • High-speed doors with machine sensitive sensors en- Bhushant J. Gandhi, divisional manager, Retail & Food Service, Truebell tells Logistics Middle East about its 25,000 square metre purpose-build facility TRUEBELL’S NEW FULFILMENT CENTRE Bhushant J. Gandhi, divisional manager, Retail & Food Service, Truebell23LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com TRUEBELL | INTERVIEW WHAT IS YOUR 5-YEAR PLAN? “We are a company with many business units, each having their own distinct short-term, medium term and long-term goals and objectives. With Expo 2020 just around the corner, our vertical markets hold many opportunities that we can tap into, and they will play a signi cant role in the growth of the company this year. There will be further announcements about this later on this year. And, as we continue our journey to becoming a long- term sustainable company, we will continue working to improve our processes and overall operations – consequently doing our share to make the earth greener. The substantial investment that we have made into our new distribution process and of course our advanced distribution hub, underscores our con dence in the expanding retail environment throughout the UAE, GCC and wider Middle East and North Africa as we look ahead.” Source: Bhushant J. Gandhi, divisional manager, Retail & Food Service, Truebell sure exceptionally high level of thermal e ciency which in turn reduced the energy consumption. In addition, Truebell’s distribution centre is an ammonia- based refrigeration plant which is monitored and controlled 24/7. Ammonia is 50% more-efficient than Freon. The plant can condense 6,000 litres of water a-day during peak opera- tions. This water is collected and used for irrigation. “At present, we are in the process of going solar. We are in the final stages of negotiation and once commissioned, the plant can contribute over 95% of the energy requirements in the facility,” said Gandhi. Distribution is challenging when it comes to creating eco- friendly and sustainable supply chains, with the majority of products transported by truck, and each of these trucks gener- ates carbon emissions. However, there are two plans of attack when addressing sus- tainability in food distribution, according to Gandhi: reducing the distance food needs to travel and upgrading vehicles to use greener/cleaner fuel options such as biodiesel or alternatively switching to electric vehicles. In addition, the company is also exploring the possibility of going solar for vehicle refrigeration. Truebell’s new distribution process is not only improving delivery accuracy, but it has created greater energy-efficiency by reducing the amount of fuel consumption. With no damage to products and zero items returned, the cooling systems in delivery vehicles are now only required to be used on the outbound delivery leg of journeys. Additionally, as the orders are packed and kept in the vehicles, the delivery crew can readily pick the order. They do not have to keep the refrigerated compartment open for long periods of time and can pick the products from the vehicles. This ensures better thermal efficiency in the vehicle and lower fuel consumption. In addition to the above, the vehicles are now refuelled at the hub. Earlier, the vehicles had to make a trip to the fuel sta- tions and stand in queue there to refuel the vehicles. Average time lost per vehicle was 30 minutes, which also resulted in additional wear and tear on the vehicles. “We have not only saved on the fuel consumption, but we have also managed to add additional time into distribution,” Gandhi noted. Truebell’s distribution reach is spread over 2000+ customers across the entire UAE, in both retail and food service segments. In retail, we are present in modern and traditional trade as well as online market. In the food service sector, we cater to the HoReCa segment, the airline industry and various other businesses. Challenges Serving the UAE and wider GCC’s growing industry of retail and food services for 35 years, Truebell’s primary mission has always been to stay ahead of the curve, continuously working to expand its operational capabilities throughout the region, developing new sustainable systems and processes and ex- tending our portfolio of products which currently stands at over 10,000. “Over the last decade, the number of retailers opening their own distribution centres within the region has created some disruption for dedicated independent distributors. We have also seen key regional players looking for merger and acqui- sition opportunities to expand their portfolios and broaden growth as the consumption trends in the region move away from staple products towards more value-added, convenience and healthier alternatives,” noted Gandhi. “Our scale of opera- tions has magnified ten times, having moved from a 2,000-pallet facility to a 20,000-locations facility. As a result, our storage systems, facilities and material handling equipment, processes, IT system and HSE practices are now completely different.” To ensure the transition was enabled smoothly, the following measures were implemented: • Orientation - Sta were given a proper orientation of the facility and layout before moving in. • Training – Extensive training on the process, MHEs and other hardware operations in the facility was conducted before moving in. • Incident control – As the eet of MHEs was fairly large, necessary precautions were implemented to ensure safety and incident free operations. The MHEs are User ID enabled. Based on the user pro le, speed restrictions were imposed. The machines were set at Tortoise mode initially and as the operators gained experience the speed limits were extended. • Toolbox talks – Toolbox talks are held regularly to share and receive information to/from the sta . Sta are en- couraged to share their ideas and experiences. The 25,000 square metre facility is ‘state- of-the-art’.24MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com INTERVIEW | CARLOS SALAS ProChile is the institution of the Minis- try of Foreign Affairs of Chile, in charge of promoting the exportable supply of Chilean goods and services and contrib- uting to the development of the country through the internationalisation of Chilean compa- nies, foreign investment, tourism and the promotion of the country’s image, which is achieved through a national and international network of specialised people committed to that mission. “We have a network of 16 Regional Directorates and 56 Commercial Offices that are strategically located in the most important markets around the world to support national exporters to facilitate the internationalisation process of Chilean companies that export or have export potential,” said Carlos Salas, trade commissioner of Chile in Dubai. “Thus, as ProChile, we contribute to the development of the country so that our products and services are not only recognised for their quality, but also for their origin and other important attributes of our country, such as its people, its incomparable geography and culture.” Exporting to the UAE Nut exports are perhaps the most notable amongst the Chilean export shipments. In 2018, more than $570 million dollars of nuts were exported to more than 70 countries. Figures for 2019 show that by September 2019 the figures had already surpassed $506 million. The walnut has undoubtedly become Chile’s star per- former, topping $436 million dollars during 2018, hazelnuts and almonds follow closely behind. “The UAE has become a key player for Chilean nuts ex- ports, especially for walnuts in shell. In 2018, it was the fifth largest market, worth more than $26 million dollars, however in 2019 it witnessed incredible growth and is ex- pected to double the value, as of November 2019, the UAE was the third largest nut export destination worth $44.4 million,” said Salas. The UAE is an important market for Chile due to its history, commitment, and strategic location as a gateway to the rest of the MENA region. “Undoubtedly though, distance represents one of the most relevant challenges. To begin with, we are separated THAT’S NUTS Carlos Salas, trade commissioner of Chile in Dubai discusses the huge successes the country is having - exporting their nuts and dried fruit to the UAE25LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com CARLOS SALAS | INTERVIEW The UAE has become a key player for Chilean nuts exports, especially for walnuts in shell. In 2018, it was the fifth largest market, worth more than $26 million dollars, however in 2019 it witnessed incred- ible growth and is expected to double the value, as of November 2019, the UAE was the third largest nut export destination worth $44.4 million.” CARLOS SALAS, TRADE COMMISSIONER OF CHILE IN DUBAI by more than 14,772 kilometres which is why we are in talks with some shipping companies to develop more di- rect routes with fewer days of travel in order to reduce transport times and costs,” Salas noted. “In addition, competition is becoming increasingly intense in terms of price, due to countries with larger production volumes making their export values more flexible thanks to economies of scale. Finally, Chilean exporters need to be prepared to not only enter the UAE, but also the Middle East region. Understanding the shipment process is a key element of our ProChile offices in these countries as they guide the exporters and prepare them not only to enter these markets, but to stay.” Ultimately, Chile hopes to increase its presence in the UAE. Chilean production will continue to grow in the next few years with a focus on Dubai, which is an attractive market for Chilean nuts and witnessed growth from 7,600 tons exported in 2018, to more than 16,000 tons exported during 2019. “We know this is a key destination in the region due to its function as a logistics and distribution centre for the area, which is why consolidating our presence here is crucial,” stated Salas. Growth The distribution structure of nuts in the United Arab Emirates is quite simple and utilises an agent, importer, and distributor model, with the agent in charge of the lo- cal distribution. The most common form of exports, and therefore generates the largest volume, is that which is generated jointly between the producer and the exporter in a production programme for each season. This work involves technical management, quality as- pects of the fruit and all the logistical support for export. “Before reaching the consumer, our products are dis- tributed in stores specialising in fresh fruits and spices, providing their customers with high quality products at relatively affordable prices. This includes mini-markets and grocery stores, where the products are for sale to the local buyer, supermarkets, and of course the hotel chains, restaurants and cafes with which we also do business, noted Salas. It’s very important for Chile to grow in the markets to which it’s exporting, but also to diversify those exports. This will allow its producers and exporters to enjoy better returns, invest and grow, which goes a long way in sup- porting the growth of the Chilean economy. “In addition, we want to strengthen our ties with the UAE to increase commercial exchange, with a focus on investment,” stated Salas. “Chile is a year-round F&B supplier. In the last year we sent more than 600 forty foot containers of walnuts from Chile to UAE so there are many players within the logistics industry that handle all market needs.” Chilean food products have a leading role in interna- tional markets. “We are number one in dehydrated apples and the world’s third biggest exporter of raisins and shelled walnuts. This year, ProChile is particularly happy to participate in the Expo 2020. This has unparalleled opportunities to show the wonders of our country, sharing with the world, and particularly the Middle East, our commitment to this mar- ket where we want to strengthen ties, and showcase the opportunities we have to do business,” said Salas. Carlos Salas, trade commissioner of Chile in DubaiINTERVIEW | SHEREEN NASSAR 26MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com What was your path to becoming a Professor teaching supply chain and logistics? (education, rst jobs etc.) In the year 2012, I obtained my Ph.D from Bath University. It was during this time when I was introduced to the intricacies of supply chain and logistics. Back then, RFID and tracking had just been introduced and I was fascinated by their role in supply chain. I was keen to understand how technology in general could impact business operations, the changes it could bring about and more. As a result, I found myself completing my Ph.D with a focus on achieving advantages in supply chain through the use of new technologies. Post completing my Ph.D, I went on to teach at various universities in Egypt as an assistant professor in Operations and Supply Chain Management. Prior to my appointment at Heriot-Watt University, I worked for another UAE higher education institution as the director of both postgraduate and undergraduate Logistics and Supply Chain Management programmes. In 2014, I was invited as a visiting scholar at the Logistics Research Centre, at Heriot-Watt University, in Edinburgh. I have also published several research papers and book chapters in areas such as automotive recall risk and social sustainable supply chain performance, sustainable maritime logistics, supply chain information security, contemporary disruptive business applications of blockchain technology, smart cities and implementation challenges. What fascinates you about the supply chain and logis- tics industry? There are several things I find fascinating about this industry. Shereen Nassar, global director of Logistics Studies and the director of the M.Sc. Logistics and Supply Chain Management Programmes at Heriot-Watt University Dubai discusses her career path and success in the supply chain and logistics industry FORGING HER PATH Shereen Nassar, global director of Logistics Studies and the director of the M.Sc. Logistics and Supply Chain Management Programmes at Heriot-Watt University DubaiSHEREEN NASSAR| INTERVIEW 27LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com TOP 5 TIPS FOR GETTING AHEAD IN THE SUPPLY CHAIN AND LOGISTICS INDUSTRY Be ahead of the game by making learning a lifelong process. You must always update your knowledge and stay aware of industry trends. Update your teaching skills and technical skills as needed by the market in order to impact value to students Network and make the time to create industry connections. Much of academia’s success lies in industry linkage. Try and be as innovative and creative in teaching as possible and make an impact by sharing your knowledge and best practices for the bene t of all Source: Shereen Nassar, global director of Logistics Studies and the director of the M.Sc. Logistics and Supply Chain Management Programmes at Heriot-Watt University Dubai The first is that to me, supply chain means a completely new way of looking at business. When you consider this aspect, the focus shifts from the individual business to the value chain that gives companies a competitive advantage in the industry. The next is the role of technology. The advent of new tech- nologies such as robots in warehouses, use of AI to track fulfilment and inventory, the use of drones and driverless vehicles for delivery and more are changing the supply chain landscape as we know it. The application of new technologies in logistics is very relevant as well as important. Finally, I am very passionate about the fact that supply chain is a crucial aspect of business that students and working professionals should be aware of. Its impact is significant, and this is a dynamic industry. While teaching supply chain and logistics is primarily at a PG level, we have started to intro- duce this subject to UG students as well, in line with market requirements and the fact that all academic disciplines today call for a practical approach. What is the next step in your career? I was recently made the global director for Supply Chain and Logistics Programme for all Heriot-Watt campuses across the world. This means that we are today teaching this subject to a large group of students in the UK, UAE and Malaysia. This is a big step, as well as responsibility for me. It requires global perspective and international knowledge of market trends, challenges and business requirements. The next big step for me is to think about how to deliver this programme in a way that is valuable to students and working professionals, help them develop the skills necessary to be employable and ad- dress market requirements.28MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com E-commerce continues to grow at a phe- nomenal rate. In 2018, the market value of UAE e-commerce retail was $10 billion, an increase of 48% on the previous year, with estimates projecting that this market will be worth $48.8 billion by 2021. As with almost any human activity, this behaviour has a significant impact on the environment. Online shopping uses tonnes of packaging (the UAE uses over 11 billion plastic shopping bags per year), and a vast number of air- polluting daily deliveries on the roads. Yet there are ways in which retailers and consumers can use home delivery to reduce the environmental im- How to make your online shopping more sustainable Got something to say? If you have any industry comments to make please e-mail: georgina.ford@os.itp.com OPINION | STUART MILLIGAN By Stuart Milligan, course leader, MSc International Logistics and Supply Chain Management, Uni- versity of South Wales Dubai COMMENT pact of our shopping hab- its. Take e-commerce shop- ping, currently dominated in the UAE by the big names of Noon.com and Amazon. ae, for example. These large organisations have sufficient resources to invest in the cleanest zero-emission (pre- dominantly electric) vehi- cles for their home delivery service. Both Noon.com and Amazon.ae are also trialling alternative, eco-friendly solutions such as drones or autonomous vehicles. The journeys these ve- hicles make to customers’ homes are very likely to pre- sent a much smaller carbon footprint than if those cus- tomers drove to the super- market themselves. Delivering to multiple customers over the course of a trip also significantly reduces the total number of journeys required. So too does the wide variety of de- livery slots made available by retailers, along with an increasing number of cus- tomers as the popularity of home delivery grows. These factors all allow re- tailers to optimise delivery routes and reduce their en- vironmental impact. For non-food home deliv- ery though, the final stage of delivery to the customer is often not managed di- rectly by the retailers but outsourced to independent couriers. This fragmented nature of “last-mile” ser- vice provision means there is less likely to be the same investment in low-emission vehicles. Indeed, many cou- riers are self-employed, us- ing their personal vehicles to deliver parcels. Non-food online deliver- ies also require each item to be not only individually packed, but also protected by additional packaging to prevent damage in transit. Delivery without delay Another trend having a ma- jor impact on the environ- ment is the offer of next-day (and even same-day) deliv- eries. For non-food items, this means always having available stock – which re- quires more space to keep it, and more energy to store and move it. From a fresh food perspective, the offer of constant availability re- sults in increased levels of food waste. Also, in order to satisfy such swift delivery require- ments, additional vehicles are required to ensure such speedy delivery – often in vehicles that are only part- ly loaded. Another point to DELIVERING TO MULTIPLE CUSTOMERS OVER THE COURSE OF A TRIP ALSO SIGNIFICANTLY REDUCES THE TOTAL NUMBER OF JOURNEYS REQUIRED.” STUART MILLIGAN. COURSE LEADER, MSC INTERNATIONAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT, UNIVERSITY OF SOUTH WALES DUBAI29LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com OPINION | STUART MILLIGAN consider is that online de- liveries do not necessarily substitute our own journeys to shops, resulting in an increased net carbon foot- print. In addition, research indicates that returns from online purchases are signif- icantly greater than store purchases, resulting in in- creased levels of waste and increased transportation. Yet there are choices that all consumers can make to reduce the impact their shopping decisions have on the environment. Greener options When short distances (less than 3km, say) exist between shopper and retailer, it is environmentally beneficial to shop in-store. It is only when longer deliveries are required that online delivery becomes a greener option. Where possible, customers who want to benefit from an online shopping experience should opt for the click and collect option to pick up in store, reducing the logistical demands on the supplier. Locker boxes, where you pick up your delivery from a secure locker, offer a good compromise between increas- ing convenience and reducing environmental impact. From a packaging perspec- tive, more and more retailers are now offering bag-free options or alternatives to plastic bags. Environmentally con- scious consumers should seek out retailers which offer these options. Encouragingly, retailers are well aware of all of these challenges – and many are working hard to address en vir onmental issues . There is an increased use of biodegradable packaging throughout the supply chain, and more focus on ‘closing- the-loop’ – where retailers are taking responsibility for reusing and recycling prod- ucts. But, there are elements of the current approach to online shopping that are simply not sustainable. These need to be urgently addressed to meet global challenges regarding air quality and global warming. Overall, the environmental sustainability of the retail market is a very complex conundrum. But, simple consumer choices can go a long way to making the way we shop greener. About the author: Stuart Milligan joined the University of South Wales in 2016 and is the academic manager for procurement, logistics and supply chain management. He is also the course leader for the MSc International Logistics and Supply Chain Management in the UK, and for the course at the Dubai campus, which was introduced in September 2019. Alongside teaching, Milligan is studying for a PhD. His research is based on the impact of adopting an omni- channel strategy, and his research interests include supply chain strategy, sustainable operations and the impact technology has upon the supply chain. Stuart Milligan. course leader, MSc International Logistics and Supply Chain Management, University of South Wales Dubai.Next >