< PreviousFEATURE | HELLMANN WORLDWIDE LOGISTICS 40APRIL - MAY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com How was 2020 for Hellmann globally and what do you expect in 2021? Reiner Heiken: There is no doubt that due to the ongoing coronavirus pandemic, 2020 was a challenging year for the global economy, and thus for the logis- tics industry. Nevertheless, 2020 was very successful for Hellmann all-in-all. Thanks to our strong team and the very agile global Hellmann network, we managed to offer our customers tailor-made logistics solu- tions and could largely maintain global supply chains. At the same time, we per- formed well economically and were even able to improve our earnings year-over- year while setting the strategic course for the company. In 2021, we want to build on this positive development and continue to grow in line with our Fit4Growth strategy, globally and across all product segments. Reiner, you took over as CEO at the end of 2018. What have been the big- gest milestones since then? Logistics Middle East chats to two chiefs at Hellmann Worldwide Logistics, who review their experience over the past year and offer a glimpse into what the organisation has in-store for supply chains in the near future. Together, CEO Reiner Heiken and MENASA CEO Madhav Kurup describe the fi rm’s expansion in the MENA region. Reiner Heiken: A milestone was the com- pletion of the restructuring in 2019. In ad- dition, we have strategically developed the company in recent years and positioned it for the future. Examples include the introduction of a new organisational struc- ture along a matrix, which allows us to cooperate even better internally and thus improve our service quality. We are also vigorously driving forward the digitisa- tion of our internal and external processes and are making substantial investments in this area. The positive development of our business shows that the measures introduced are bearing fruit. How important is the Middle East, North Africa and South Asia region to Hellmann? Reiner Heiken: The region is of great strategic importance to us. Since 1999, we are very successfully represented in this market, in 19 countries with around 80 locations and all product segments. Hellmann is already among the market leaders in many areas. On this basis, we want to continue growing in the region and expand our network. The expansion to Egypt and Oman is another important step, others will follow. Why did you decide to continue invest- ing during a global pandemic while other companies were focusing on cost reduction? Reiner Heiken: As already mentioned, Hellmann is very solidly positioned, and we were able to successfully expand our worldwide business despite the pandemic. Thus, we followed our strategic growth plans not only in the MESA region, but also beyond. What do the openings of your new offices in Egypt and Oman say about Hellmann’s appetite for growth in the wake of the pandemic? Madhav Kurup: Hellmann, over the last 10 years in the region, has demonstrated its ability to create specialised solutions for GAINING GROUND HELLMANN WORLDWIDE LOGISTICS | FEATURE 41LOGISTICS MIDDLE EAST | APRIL - MAY 2021www.logisticsmiddleeast.com How will the new offices allow a more streamlined commercial and opera- tional relationship with customers? Madhav Kurup: The process of setting up the company in these markets started in mid-2020 with a dedicated, interdis- ciplinary team working on creating op- erating processes and systems, using our globally standardised processes. In both countries, all systems are now fully im- plemented, processes are in place, and we have attracted the best talent in the market. Our team is ready to go and es- tablish ourselves as a preferred service provider in the market. Will 2021 be a year of expansion for Hellmann? Madhav Kurup: Our new ventures in Oman, Egypt and e-commerce coupled with a few other new ventures in the region will keep us busy in 2021. These projects will ensure continued growth of our already established operations in the region. How will the increased presence of the Hellmann brand and its expanding network impact your ability to handle issues that customers face? Madhav Kurup: Hellmann’s strategy in the region is to provide the same high service in every market in which we are present, either directly or through our partners. By expanding our network, we enable seamless supply chains and cross- border logistics solutions from a single source. We look forward to continuing our expansion in the years ahead. automotive, healthcare, fashion, chemical, and most recently e-commerce custom- ers. Our strategy is to take globally bench- marked solutions into the key markets of the region as a part of our geographical expansion. In doing so, we enhance our ability to provide such solutions to both existing and potential customers. Expand- ing into Egypt and Oman is the logical con- sequence, as these are markets in which we want to be present. The pandemic did not affect those plans. How many staff will you be employing to run the offices? Madhav Kurup: We are starting with 12 employees in Oman and 24 in Egypt. I see Egypt scaling up very rapidly to become one of our largest operations in the next two to three years. What do you hope to bring to the Egyptian and Omani markets? Which verticals will you be involved with? Madhav Kurup: All our verticals are fully established globally, as well as regionally, for example, automotive, healthcare, perishable, fashion, FMCG, marine solutions, and renewable energy. We also see a huge opportunity to ex- pand our e-commerce solutions into these markets. Reiner Heiken, CEO, Hellmann Worldwide Logistics Madhav Kurup, CEO, MENASA, Hellmann Worldwide LogisticsFEATURE | SUPPLY CHAIN TRANSPARENCY 42APRIL - MAY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com What is the defi nition of new normal accord- ing to you? For many, it is taking safety measures before step- ping outside their homes, wearing face masks and sanitising hands regularly. Ever wondered what new normal en- tails for retailers? They are adjusting to changing consumption patterns and the new outlook of consumer expecta- tions during the pandemic. While some local and regional retail- ers are still finding it difficult to adjust and adapt to new regulations and buy- ing habits, many companies are managing the adoption of new technologies to meet Sridar Narayanswami, president, Middle East and Africa, at Emerson Commercial & Residential Solutions, explains how the new normal has given businesses an opportunity to improve food supply chains. and fulfill consumer demands. To ensure these changes are meeting their opera- tions, they are rethinking their existing business strategies to meet the current business demands. With consumers being anxious about the future, we have seen significant shifts in their buying patterns. While the number of trips made to a grocery store has gone down dramatically, the number of online purchases has spiked. Many people have not only increased their cooking habits at home but also increased ordering food at home which has significantly affected the dining at restaurants. To follow the trend in this highly competitive market, retail- ers have managed to quickly set up online stores or partnered with online delivery services companies to ensure they have on- line presence during these difficult times. This transformation further helped them in fighting the crisis and in implementing transparent business models especially in terms of communicating the safety stand- ards undertaken to store food. Today, people want to know more about where their food came from and how well it was preserved along the supply chain before they bring it to their homes. As per the latest Emerson survey, more consum- ers will continue to buy fresh products from retailers and expect them to adopt latest technologies, processes and cold chain infrastructure that help ensure SUPPLY CHAIN TRANSPARENCY AND THE NEW NORMALSUPPLY CHAIN TRANSPARENCY | FEATURE 43LOGISTICS MIDDLE EAST | APRIL - MAY 2021www.logisticsmiddleeast.com compression and control technologies to provide temperature control at ‘pop-up’ emergency medical facilities and testing sites. The medical institutions especially in the UAE & Saudi Arabia are equipped with highly reliable refrigeration units in the vital hospitals and pharmaceutical lo- gistics segments in the region. The world has responded quickly to the pandemic in terms of adopting latest technologies. The industries are collaborating to ensure that their state-of-the-art technology solutions are readily available to transport and store the COVID-19 vaccines as well. In addition, few companies in the region such as Emerson also provided a range of customised solutions to keep perishable goods fresh and safe for consumption. Today, supermarkets, hotels and large warehouse cold rooms in this region use the best in class, highly reliable and energy efficient scroll and semi-hermetic con- densing units for refrigeration as well as monitoring solutions supplied by leading technology solutions providers. The pandemic has proven the strength of collaboration and the importance of technology to support and comfort us in the new normal. The use of IoT enabled infrastructures and connected devices has enabled the industry to monitor & track infrastructures; and the operators now have the potential for visibility into each step of food’s journey and even the possibility for comprehensive cold chain traceability. However, we can’t deny that the new normal has given businesses an opportunity to innovate, upgrade, expand and adapt latest technologies to maintain highest food quality and safety throughout the food supply chain. freshness and safety of food to meet con- sumers’ expectations. The food quality and the technologies that keep food safe have become increasingly important to con- sumers. They expect highest food safety practices, not just from the stores they visit but also from the entire supply chain. It is important for companies to also focus on innovation which can improve the quality of lives all around the world. One of the most important ways to do so is by implementing the latest innovations in one of the basic necessities of life i.e. food. The technology providers are of- fering solutions that ensure quality and freshness of the food products for the con- sumers, and efficiency and reliability for the retailers. The Emerson survey also found that consumers in the United Arab Emirates (UAE) are more concerned with quality and freshness of the food when compared to cost and convenience when shopping for groceries. Moreover, 80% of respondents in the UAE have also said they now pay high attention to whether the food is properly kept at safe tempera- tures during transportation and storage. These findings indicate that consumers are becoming more aware and more in- volved in the supply chain process. They want to be assured that retailers are us- ing technologies and solutions that offer visibility, control and connectivity and are also assessing if their food is kept at safe temperatures from the source to the supermarket shelves. Many companies such as Emerson ac- celerated their thrust on healthcare in- frastructure such as providing advanced Sridar Narayanswami, president, Middle East and Africa, at Emerson Commercial & Residential SolutionsFEATURE | ZEBRA TECHNOLOGIES 44APRIL - MAY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com SUPPLY CHAIN VISIBILITY AND PANDEMIC REPERCUSSIONS Daniel Dombach, director, EMEA Industry Solutions, Zebra Technologies, advises on preparing your supply chain for new challenges in the post-COVID era.ZEBRA TECHNOLOGIES | FEATURE 45LOGISTICS MIDDLE EAST | APRIL - MAY 2021www.logisticsmiddleeast.com The year 2020 will forever be associated with a singular event that caused profound disruption. No sector was left untouched, although some felt a greater impact than others. For example, the pandemic is estimated to have accelerated the growth of e-commerce by several years, hastening the shift from brick-and- mortar to online retail and generating a sudden surge in demand. The sheer scale posed an unprecedented—and, at times, overwhelming—challenge to the entire supply chain. With the strict lockdowns and social distancing measures, consumers turned to the internet as a means of obtaining necessities from the safety of their homes, yet they expected the same level of service as before. In many cases, this proved impossible. There are many things retailers have learned from this experience, but one of the most significant is just how much technology can help improve the resilience and robustness of supply chains. It has also become apparent how numerous hardware and software solutions can work together to provide greater visibility, which is an essential factor in preparing supply chains for the future. Embracing the new normal The COVID-19 pandemic may be subsid- ing in some parts of the world, but many Daniel Dombach, director, EMEA Industry Solutions, Zebra Technologies of the changes it has wrought on the e-commerce landscape are likely to remain. While cross-country differences and digital divides mean the adoption of e-commerce is far from universal, consumers agree that buying online of- fers convenience, variety, and safety. In turn, it offers many retailers an additional sales channel that is well on its way to becoming indispensable. The uncertainty surrounding virus mutations and possible future epidemic waves, cou- pled with the steady growth of the global e-commerce mar- ket, mean that supply chains must adapt to the sustained pressure of an uncertain cli- mate. They must also take the necessary precautions to bol- ster their ability to withstand additional pressure in the future. This all starts with a resilient, efficient, and productive warehouse operation. Preparing the warehouse for whatever tomorrow may bring Warehouse operators today face an array of challenges, including a constant peak period, a high growth outlook, staffing shortages, lengthy employee training processes and, in some cases, outdated hardware and/or software. In other words, they are already under tremendous strain without considering the additional burden of health concerns resulting from COVID-19 and the associated spike in parcel volumes. However, there are solutions to all these problems, and they can work together to provide the level of visibility now proving key to the creation and execution of efficient warehouse operations and workflows – and the entire supply chain. Modernising your warehouse The true first step in maximising the efficiency of your warehouse is to establish a clear analysis of objectives, budget, and timeframe to determine which investments will yield the best return and total benefits. Incremental modernisation will allow your warehouse to gradually evolve toward greater productivity, conformity, and automation at a rhythm adapted to your needs. This modernisation may be divided into five major phases, each of which offers increasing control and visibility. • Enhance individual worker empowerment: Gain basic control and visibility of business operations by shifting away from legacy devices and operating systems (OS) to more Android mobile computers and scanners with user-friendly interfaces and simple functionality for data capture. • Improve team mobility and workflow optimisation: Further improve operational control and visibility through innovations such FEATURE | ZEBRA TECHNOLOGIES 46APRIL - MAY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com as wearable mobile computers, ring scanners and head-up displays which can be associated with communication and collaborative software. This easy-to-learn technology augments workflows to boost productivity. • Increase asset visibility and utilisation: Use targeted real-time visibility and location technology that integrates software as a vital piece of the efficiency puzzle. Sensors and radio frequency identification (RFID) technologies can vastly improve inventory management, yard management, and much more. • Operate with real-time guidance and decision-making: Implement the widespread use of real-time visibility and sensing technology and robotics automation solutions. • Operate with data-driven performance: Achieve predictive and adaptive operations through prescriptive analytics, sensor-driven real-time data, robotics automation, and machine learning to anticipate and solve future challenges. Going beyond the warehouse When it comes to transportation, today’s challenges include a lack of qualified drivers and low staff retention, as well as insufficient coordination between warehouse operators, suppliers, and customers, which in turn leads to half-empty delivery trucks, increased traffic congestion and unnecessary air pollution. Technologies that help capture and provide complete, real-time visibility of inventory and fulfillment status that to multiple warehouses and distribution centers can help here. Likewise, when it comes to last mile delivery, today’s consumers want and expect next-day services, which means retailers must find a way to deliver if they want to keep their customers coming back. This, in turn, demands investment in technologies that can provide accurate tracking of both inbound and outbound inventory and visibility across supply chain touchpoints. Plus, with the return rate of e-commerce purchases far exceeding that of retail, e-tailers have every interest in technologies that increase visibility of reverse logistics and help facilitate the returns process. Ensuring employee health and safety As COVID-19 demonstrated, warehouse operators must also integrate rigorous health, safety, and cleaning measures to help mitigate the need for warehouse closures and avoid supply chain interruptions. Bluetooth Low Energy technology, which is integrated with the right hardware and software solutions, can provide visibility into the amount of time workers remain in close proximity to one another and encourage greater distancing. It can also enable organisations to quickly contact trace if positive cases are confirmed within the facility so that the proper staff isolation and disinfection measures may be taken without requiring a full shift cancellation or warehouse closure. Visibility is king The investment and implementation of new technologies as part of a strategy to modernise operations across the entire supply chain is critical for remaining competitive in the on-demand economy. These new technologies serve one essential purpose, which is to provide greater visibility and control – both of which help improve efficiency, productivity, responsiveness, and performance levels. Though it will take some time and effort to achieve an optimised supply chain, the short and long-term benefits gained will be well worth the effort. DUBAI METRO | UPDATE 47LOGISTICS MIDDLE EAST | APRIL - MAY 2021www.logisticsmiddleeast.com SERCO LOSES DUBAI METRO CONTRACT UK’s Serco loses Dubai Metro contract to French-Japanese consortium after 12 years. A French-Japanese consortium has won a contract for the operation and main- tenance of the Dubai Metro as well as the operation of the Dubai Tram, replacing UK-based Serco, which has held the contract since 2009. The contract covers 15 years (nine base years and six renewable years) and amounts to approximately AED542 mil- lion a year. The consortium consists of three companies namely Keolis, Mitsubishi Heavy Industries Engineering, and Mitsubishi Corporation. The award of the contract follows a public tender released by the Roads and Transport Authority (RTA) in which four consortiums and international firms specialised in rail operation and maintenance took part. Proposals made were analysed and the contract was awarded to the French-Jap- anese consortium for submitting the best technical and financial proposals. HE Mattar Mohammed Al Tayer, Di- rector-General, Chairman of the Board of Executive Directors of the Roads and Transport Authority, remotely signed the contract on behalf of RTA. Keolis Group CEO Marie-Ange Debon, Aki Heiko Nozaka, Director of Investment and Services at Mitsubishi Heavy Indus- tries Engineering, and Toru Kimura, Gen- eral Manager of Mitsubishi Corporation, signed on behalf of the consortium. The consortium shall cater to the opera- tion and maintenance of Dubai Metro as well as the operation of Dubai Tram as of 8 September 2021. Before that, preparations will be made for the handover of assets and systems from the current operator to the new operator to ensure a safe and smooth operation of Dubai Metro and Tram, once the contract kicks in. “According to the contract, the consor- tium shall undertake the operation and maintenance services of the Dubai Met- ro Red and Green lines as well as Route 2020,” said Al Tayer. “It will also cater to the operation of Dubai Tram, and all assets of the metro and tram networks including trains, con- trol centres, stations and the associated infrastructure. It shall also attend to the provision of high-class passenger trans- port services compatible with the daily changing requirements in the number of metro and tram riders.” Al Tayer added: “The contract also cov- ers the operation and maintenance of the automated metro and fare systems includ- ing the selling and recharging of nol cards at the metro stations. It calls for provid- ing senior, technical and administrative posts for Emiratis and training them on the rail work. RTA is keen on qualifying citizens and offering them exposure to in- ternational expertise in the operation and maintenance of the rail systems, which is new to the region. “During the preparatory period, the consortium shall be in full coordination with the current operator to take over the tasks and ensure high safety levels for network users. The process entails continuous monitoring of the safety and the continued improvement of the metro and tram systems and requires coordina- tion between the metro, tram and other means of transport. It also requires the smooth transfer of employees from the current operator to the new operator.” Al Tayer said that the outsourcing of the Dubai Metro operation and maintenance to specialist international firms was at- tributed to a host of considerations. “RTA is keen on ensuring the highest standards of security and safety for the metro and tram riders and achieving com- petitive performance indicators of opera- tion and punctuality of journeys besides improving the quality of services provided to metro and tram riders. Moreover, the operation of the metro and tram requires experience in the scheduling of the metro and tram services and all the sophisticated mechanical, computing and electronic operation.” FEATURE | ORANGE BUSINESS SERVICES 48APRIL - MAY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com It has taken a glob- al crisis to create the dramatic ‘giant leap’ forward in dig- ital transformation across the world and as we enter the great ‘re-set’, the world’s deep reli- ance on supply chains has become very clear. We have seen incredible innovation at incredible speed to en- sure we have the vaccines needed. This is just the start because the need now is for global supply chains to re- ally deliver – literally; we need the same incredible transformation and innovation in supply chain manage- ment and we need it now. Regional supply chains are ready for hyperautomation to deliver real-time intelligence for long term sustainability, thinks Advait Thakur, IoT and analytics solutions expert, IMEAR, Orange Business Services. Through our recent global survey on supply chain management, and our cus- tomer relationships across the region, we see a greater response to the need to in- novate deeper and faster towards a new level of real-time intelligence based on real-time data and driven by ‘hyperau- tomation’ – a new term for technologies such as AI, IoT, APIs and blockchain. According to our survey, 74 percent of supply chain leaders have continued to innovate throughout the crisis. While 30 percent say the pandemic has not had any impact on their ability to innovate, 44 percent say that the crisis has had a positive impact. Technology is assisting and enabling this process of innovation. For example, smart asset tracking is helping firms to deal with the challenges associated with sourcing goods from a wider range of offshore locations. This is important and the World Bank’s Logis- tics Performance Index, which measures the logistics capabilities of the world’s major countries, includes ‘track and trace’ as one of the six strength indica- tors that make a location attractive to source goods from. Collaboration meets real-time data Without effective collaboration, inef- ficiencies can arise in the handovers between the transport modalities – sea, rail, road and pipeline – and delays may WHY REGIONAL SUPPLY CHAINS MUST HYPERAUTOMATE ORANGE BUSINESS SERVICES | FEATURE 49LOGISTICS MIDDLE EAST | APRIL - MAY 2021www.logisticsmiddleeast.com Our survey shows how organisations are prioritising AI as one of the primary technologies for investment, ranking highest or second-highest, for sustain- ability, resilience and risk mitigation (along with data analytics infrastructure and automation). It’s no surprise with AI having so many applications across supply chains from simple robotic au- tomation through to advanced deep learning systems. AI-enabled execution Turning data into action involves auto- mating tasks, based on AI insights, wher- ever possible. But it is equally important to empower employees with real-time AI-enabled data insights so that they can make the right decisions where manual interventions are necessary to add value. Just 42 percent of firms say they are reducing risk in their supply chain by increasing the level of automation they use to handle rapidly changing demand levels, but that figure is forecast to dou- ble over the next two years. Meanwhile 80 percent believe it is vital to empower employees and supply chain partners with data insights. This is now achievable with the availability of relatively low-cost IoT sensors, HD cameras and computer vision applications, access to AI and machine learning algorithms, APIs and AI-enabled chatbots. An IoT enabled bot can even check real-time inventory levels, flag anomalous patterns with a manager while beneath this interplay of human and digital, blockchain can reliably track the provenance of goods to comply with ethical and sustainable sourcing initiatives. A digital and human approach We have to recognise that not all pro- cesses can be automated and there will always be tasks where the human touch is vital. Augmenting these workers with digital work instructions via ruggedised tablets, smartphones or virtual or aug- mented reality devices (such as glasses enabled by 5G) in easy-to-consume formats is key. It enables people to be more productive, reducing fatigue and frustration. In this pivotal moment for the world, there are enormous pressures on sup- ply chains and increasing geodiversity creates complexities and intensifies the need for advanced digitalisation. This is where technology comes in with the vital digital levers to help businesses address the challenges. Advait Thakur, IoT and analytics solutions expert, IMEAR, Orange Business result in penalties. It is not just in global, or regional, logistics that real-time data has become increasingly essential. With- out real-time visibility on the whole sup- ply chain, accurate demand forecasting is challenging. Real-time data can now be captured in cost-effective ways to power better workflows that extend across an ecosystem of busi- ness partners. However, just 45 percent of respondents to our survey say they are us- ing real-time data insights to drive better decision-making today. That figure is likely to double over the next two years: 44 percent say they have plans to launch real- time data initiatives, to share with ecosystem partners and frontline staff. There are longer term ben- efits too. Real-time data can improve environmental, so- cial and governance perfor- mance indicators – aligned with consumer rising ex- pectations of the companies from which they want to buy goods and services. AI-enabled planning Real-time data collection and insights are now possible at scale thanks to 5G, which can enable rapid, AI-driven analytics using digital twins to support descriptive, predictive and prescriptive data analytics, enabled by AI and ma- chine learning algorithms. Firms can now move from analysing past perfor- mance to anticipating what will happen next, when and why. Next >