< PreviousPREMIER PARTNERSHIPS DEEPAK KHUSHALANI CO-FOUNDER AND CEO OF PREMIER LOGISTICS HAS TAKEN THE INDUSTRY BY STORM, AND HAS NO PLANS OF SLOWING DOWN Words Nikhil Pereira Photography Fritz Asuro, suppliedCOVER STORY 21LOGISTICS MIDDLE EAST | JULY 2020www.logisticsmiddleeast.comCOVER STORY 22JULY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com To say business runs through Deepak Khushalani’s veins of is an understate- ment. His family has been in business for more than 40 years with a strong un- derstanding of the many ups and down in market dynamics and economic scenarios during this time. Until date, Khushalani’s father runs one of the largest textile businesses in the UAE, mak- ing Deepak a second generation Dubai businessman. But slotting into the family business wasn’t Khushalani’s first thought, and it certainly wasn’t his last. Armed with a bachelor’s degree in marketing and entrepreneurship from the Indiana University — Kelley School of Business, he returned to Dubai and wanted to kick start a new business venture from scratch. “I founded Premier Logistics in 2015 after studying a few different business models. I found my calling in logistics and freight and decided to pursue it as a profession,” Khushalani says. Premier Logistics started off operations with three employees, “we are 55 employees-strong today” Khushalani says indicating that growth is on the cards for the JAFZA- based company. Since its inception, Premier has witnessed a 22% year-on-year growth in revenue annually. “We have three warehouses along with an open yard of 25,000 m2, we have been blessed to have a healthy number of diverse clients,” Khushalani says. Over the last 12 months Premier has looked to strengthen its company from the inside out. Key hires that come with distinct expertise in the field of logistics and freight handling have entered the company that Khushalani hopes will “drive the next two to three years of growth and lead the expansion”. As a leader Khushalani is focused on building a workforce that will steer their departments while establishing and connecting with current and new clients. “Over the last one year we also established various divisions within the organisation namely finished vehicles logistics (FVL); value added services such as co-packing, shrink wrapping, labelling, barcoding and repackaging; and lashing and crating of bulk items,” he reveals. The FVL division, in collaboration with a leading Dubai- based vehicle distributor in the Middle East, is arguably one of the largest in the region. New vehicles occupy a yard that spans 25,000m2 waiting to get to their new owners. Meanwhile the value added services, which forms the basis for business for any logistics services provider, caters to more than 70 companies across the Middle East. Another huge win for Premier was when it was awarded a contract to manage the region’s large tyre distribution centre. “Premier in collaboration with Samsung SDS Global Supply Chain Logistics (SDSAE) put pen to paper on a three-year contract to manage the end-to-end logistics services for a regional distribution centre for one of the world’s top 10 tyre manufacturers,” Khushalani says. As per the agreement, Premier and SDSAE will manage the storage and distribution of the tyre hub in Dubai’s JAFZA within an estimated capacity of 13,000m2 over the next three years. Khushalani says that the handling and logistics of tyres comes with its set of standard operating procedures. Revealing the scale of operations Khushalani says: “From this site we manage the client’s product portfolio of passenger car radial tyres, light truck radial tyres and truck / bus radial tyres. We will handle approximately 800,000 tyres each year for distribution within the Middle East.” Khushalani holds his head up with pride as a partnership the likes of which Premier signed with SDSAE are not handed to a logistics start-up every day. SDSAE, which is part of the global Samsung juggernaut, has a network of 47 global offices and provides supply chain solutions with high-end IT capabilities. Speaking more about the importance of its collaboration with SDSAE, Khushalani adds: “Strategic Partnerships like these represents the changing nature of the Middle East’s logistics industry that’s moving towards a more innovative and sustainable era, one that will bring about major change in how we distribute products.” Assets and warehousing Although Premier owns a few of its Dubai warehouses, the company is looking to move towards an ‘asset light’ approach, which helps the company enter and serve other segments using various new logistics networks that are based on shared assets and that leverage partners and digital tools to foster large-scale agility and responsiveness. “Logistics has traditionally been an asset heavy industry, growth is often measured with the number of warehouses under a company’s belt. But we foresee our growth by leveraging our partners’ strengths. For instance, we are well equipped both physically and personnel-wise with the tyre facility. It COVER STORY 23LOGISTICS MIDDLE EAST | JULY 2020www.logisticsmiddleeast.com requires a level of specialisation, which we have mastered. But the equation changes if we consider cold storage, which requires a different set of skills altogether. Instead of investing or leasing a facility all by ourselves it makes sense to tie up with companies that have vacant space to lease,” Khushalani reveals. Growth also entails expansion beyond the UAE for Khushalani and Premier. So how does an asset light strategy come together to form a growth plan? “It’s simple, we are looking at expanding our warehousing capacity through international joint ventures and partnerships — primarily in Saudi Arabia, India and China. This has been made possible part in thanks to our client’s needs and requirements. It’s a case of we go where they are,” he reveals. Business sustainability and continuity During the last few months the think tank at Premier has looked to further advance its digital transformation plans. “With our recent focus primarily on digital transformation of the age-old logistics industry, Premier has been consistently moving towards providing innovative solutions. We want to create value for our clients and we want to build on innovative solutions to ensure the highest quality in warehousing and distribution, that’s the mission statement,” Khushalani adds. According to a recent survey conducted by Dubai Police, Dubai Economy and Visa shopping at physical stores has reduced 68% since the outbreak of the pandemic. The surveyed respondents in the UAE also added that 49% are shopping online more than previously. The coronavirus pandemic brought about a shift in consumer behaviour, and with it, a swift adaptability by the consumer towards technology. The survey further added that “These shifts in consumer behaviour caused by the pandemic are expected to be the “new normal”. THERE IS PLENTY OF TALK ABOUT INNOVATION WITHIN THE LOGISTICS AND FULFILMENT SECTOR IN THE REGION – FROM DRONES AND ROBOTS TO ELECTRIC TRUCKS AND E-BIKES. UNFORTUNATELY, MOST OF THESE WILL STILL TAKE SOME TIME TO BE ACCEPTED, AS THEY ARE NOT YET COST- EFFECTIVE AND CAPACITY- EXPANDING. THE PROBLEM, AT LEAST IN THE SHORT TERM, IS NOT WITH THE WAY WE MOVE PARCELS, IT’S ABOUT WHERE WE MOVE THEM TO.” COVER STORY 24JULY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Khushalani says the focus has shifted, in a much larger way, on to e-commerce and online shopping. And the company’s plans of digital transformation tie in with the shifting sands. “Last mile delivery has always been an important element of the e-commerce customer experience. Demand has spiked massively following the Covid-19 outbreak, even more so when you factor in social distancing measures taken by governments around the world. The ability for retailers to make products accessible to consumers is affected by two major factors: stock availability and delivery capacity,” he notes. Deepak Khushalani did not want to join the family textile business and chose to venture into the world of logistics instead. LOGISTICS HAS TRADITIONALLY BEEN AN ASSET HEAVY INDUSTRY, GROWTH IS OFTEN MEASURED WITH THE NUMBER OF WAREHOUSES UNDER A COMPANY’S BELT. BUT WE FORESEE OUR GROWTH BY LEVERAGING OUR PARTNERS’ STRENGTHS.” Premier’s solution to address last mile delivery concerns is a ‘pick up drop off service’. “We call it PUDO, short for pick up and drop off, and it’s unlike any other seen in the UAE before” he says with a smile on his face. To make PUDO a possibility Premier signed an agreement with Parcelly, a UK-based globally renowned company that specialises in last mile deliveries. But pick up and drop off services are not new to the region, and is definitely not a concept that the UAE hasn’t seen before. So what sets the Premier-Parcelly solution apart? “Parcelly has the fastest growing network of retailer and carrier agnostic PUDO locations, managing in excess of 2,000 parcel collection points worldwide to date. By converting redundant space in local businesses into parcel storage capacity, Parcelly offers a variety of B2C and B2B services, including click and collect and hyper-local mini-warehousing to resolve industry problems associated with first and last mile delivery.” In simple terms an item will be delivered to a grocery store in the receiver’s building of residence, or it could be picked up from a service station or gym —the possibilities are endless. And Khushalani says this new solution will “transform the industry” as we know it. The joint venture between Premier Logistics and Parcelly aims to operate and manage more than 1,000 PUDO locations within the region. Premier runs the region’s largest tyre distribution centre handle approximately 800,000 tyres each year.COVER STORY 25LOGISTICS MIDDLE EAST | JULY 2020www.logisticsmiddleeast.com “Personally, I feel there is plenty of talk about innovation within the logistics and fulfilment sector in the region — from drones and robots to electric trucks and e-bikes. Unfortunately, most of these will still take some time to be accepted, as they are not yet cost-effective and capacity-expanding. The problem, at least in the short term, is not with the way we move parcels, it’s about where we move them to. By delivering thousands of parcels to thousands of individuals’ doors. Last-mile fulfilment drivers spend far more time on the road and have a much lower successful delivery rate as compared to delivering those same parcels to a handful of PUDO locations, which are guaranteed to be open for business and able to accept deliveries,” he adds. A solution such as this will address the problem of “failed deliveries”. Parcelly UAE, as it will be known when launched on our shores, will provide online shoppers with full control over where and when to collect and return their parcels. The service has won several awards for its level of innovation. “The benefits are plenty-fold,” Khushalani adds. “Parcelly UAE will help to reduce the number of driver destinations and delivery attempts by consolidating in- and out-bound parcel volumes, whilst driving air quality improvements and reducing white van traffic congestion. We are helping reduce net carbon and contribute to environmental sustainability as well.” Looking towards the future, Premier is expanding its local warehousing capacity within mainland Dubai, having already entered strategic partnerships in Al Quoz, Ras Al Khor and Dubai Investment Park; chemical logistics partnerships within the free-zone; open-yard space for its project logistics division; and increasing current business by offering its clients improved end-to-end visibility of their inventory through Premier’s cloud- based logistics management portal. For this Dubai-based logistics start-up, the future is bright and prosperous. Starting off with three employees in 2015, Premier Logistics is a team of 55 strong, with more slated to join s expansion plans take shape for the JAFZA-based company. STRATEGIC PARTNERSHIPS LIKE THESE (BETWEEN SDSAE AND PREMIER LOGISTICS) REPRESENTS THE CHANGING NATURE OF THE MIDDLE EAST’S LOGISTICS INDUSTRY THAT’S MOVING TOWARDS A MORE INNOVATIVE AND SUSTAINABLE ERA, ONE THAT WILL BRING ABOUT MAJOR CHANGE IN HOW WE DISTRIBUTE PRODUCTS.” FOR SPONSORSHIP OPPORTUNITIES: Benjamin McGladdery, Sales Manager Tel: +971 4 444 3227 Email: benjamin.mcgladdery@itp.com TUNE IN TO THE NEXT SAM CHUI AVIATION BUSINESS PODCAST HANDLING CARGO | SPECIAL REPORT 27LOGISTICS MIDDLE EAST | JANUARY 2020www.logisticsmiddleeast.com WAREHOUSE AUTOMATION SPECIAL REPORT: LogSquare are leading the discussion on soft automations as LSPs and supply chain fi rms look to retrofi t existing facilities, while keeping an eye on greenfi eld projectsNEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS LOGISTICSMIDDLEEAST.COMCOMMENTS | SPECIAL REPORT 29LOGISTICS MIDDLE EAST | JULY-AUGUST 2020www.logisticsmiddleeast.com A CASE TO AUTOMATE Nikhil Pereira is cognizant of the negatives caused by the adoption of automation but feels the positives far outweigh them, the Port of Rotterdam is a good yardstick A s much as 90% of all global trade is transported by sea. Maersk, for instance, has 450 ultra- large container ships that are almost 500 metres in length that can carry up to 23,000 containers. To deal with these ultra large ships ports had to re-shaped and in some cases new ones had to be built. The Port of Rotterdam, which is the largest in Europe at 40kms in length, had to be expanded to service the large ships. Obviously, loading and unloading the 23,000 containers is considered a humanely impossible task at least if you want to move the ships along quickly. That makes the Port of Rotterdam one of the most advanced in world in terms of computerised cranes and driver-less automated guided vehicles. Automation is critical to a port such as the one in Rotterdam, technology enables the port to handle 169 million tonnes of cargo every year. We live in a global economy with pretty much everything ordered and consumed moved via sea freight. Our penchant for consumerism isn’t diminishing which means the mega ships sailing our oceans will only increase in years to come. If you want that next day delivery you must remember that automation, AI and machines have played a crucial role in getting it to you door step. So will automation in warehouses, ports or LSPs kill off jobs? The way I see it, human beings never carried shipping containers on their backs to load or unload barges. Global trade has been enabled by new technology, in some aspects from the outset, making conversations surrounding redundancies in the workplace, redundant. It would be naive for us to think that automation and tech hasn’t impacted jobs. It’s a price we have to pay to satisfy the growing trend of global consumerism. I would like to extend a note of gratitude and appreciation to LogSquare, who are our Knowledge Partner for this editon’s special report. I urge you to take a look at the services and solutions they offer. As a UAE-based company it’s a matter of pride to celebrate our start-ups. Having said that, LogSquare is a relatively experienced player in the market having been around for quite some time now. The automated guided vehicle ECT at Maasvlakte in the Port of RotterdamNext >