< PreviousREPORT | AWS 10JUNE - JULY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com predict the future. But now, we are in a new normal that past patterns cannot accurately predict. ML is a vital tool that can help CPG supply chain managers better plan for, and respond to, de-mand disruption—in the current moment and beyond. ML is an application of AI that allows sys- tems to learn and improve automati- cally. It uses algorithms to discover pat- terns in data, then uses these patterns to construct mathematical models that create predictions for future data. The sys-tem continues to learn and adjust actions automatically without human intervention, improving its accuracy over time. In supply chains, ML can help or- ganisations generate more complete and accurate predictions. ML technol- ogy helps eliminate the guesses and errors that people can introduce at each point in the supply chain, allows more variables to be in- tegrated, and creates a more accurate forecast that is better trusted by the people using it. This dramatically improves overall planning, leading to better decisions and greater support for customers. ML is key to Amazon’s ability to create daily forecasts for over a half- billion products at a post-code level worldwide. ML also allows Amazon to correlate consumer buying behav- iour for a group of products and form buying relationships between SKUs. Using ML, Amazon can predict that when a customer buys a particular product, they’re also likely to buy an- other specific product in the next week, even if not at the same time. A spike in demand for mouthwash, for example, might be related to a spike in demand for toothbrushes. ML can make forecasts more com- plete and accurate by providing the capability to analyse hun-dreds of thousands of combinations—for in- stance, evaluating a large number of different models to see which forecast has the best results. And since ML is a feedback loop and not static, it empowers you to continu- ally tune your supply chain. That’s a sharp contrast to the prevailing manual method of setting business rules and keep-ing them in place until there’s a problem, which means you’re failing to optimise along the way. Demand sensing is critical for advanced forecasting ML on its own provides a foundation for long-term forecasting but imple- menting demand sens- ing technology is now a critical capability to en- able advanced demand planning capabilities. De-mand sensing adds a new dimension of sophis- tication to identify trends and changes in demand patterns sooner from a diverse set of internal and external influences. Demand sensing uses ML to account for the impact of various internal and external factors. These factors can in- clude anything from weather patterns to socioeconomics, competitor activity, geographic data, internal sales data, so- cial media, point-of-sale data, and more. Demand sensing gathers the data from these sources, known as demand signals, and integrates it into planning to help Even in normal times, demand volatility is a constant challenge for consumer packaged goods (CPG) supply chain management. But these are not normal times. The COVID-19 pandemic has upped the ante, completely disrupting supply chain planning. As unforeseen external factors trig- ger extreme consumer demand chang- es, multiple supply chain components in multiple locations are affected, and online channel growth has skyrocketed. Tradi-tional planning and forecasting methods simply are not up to the task of handling this complexi-ty. Supply chain teams that are strug- gling to keep up can attest that sophis- ticated tools are needed to get supply chains back on track in the new normal. Advanced machine learning (ML) tools can work alongside existing systems to help ease the burden of creating opera- tional forecasts in a volatile business environment. At AWS, we are at the forefront of using artificial intelligence (AI) and ML, offering the broad-est and deep- est set of ML services and supporting cloud infrastructure. AWS provides the tech-nology underpinning Ama- zon.com, driving the automation that allows Amazon to understand customer needs better and respond by exceeding their expectations. Machine learning: The foundation of forecasting in CPG Forecasting helps CPG supply chain managers anticipate demand and take timely steps to react appropriately. Tra- ditionally, forecasting has been based on historical information (time series da-ta), with the idea that the past can Mayank Sharma, Supply Chain Business Development Lead for EMEA at AWS and Michael Brown, Supply Chain Leader at AWS discuss managing supply chain disruption DATA-DRIVEN DEMAND PLANNING: MANAGING DISRUPTION IN CPG WITH ML AND DEMAND SENSING FA ST FACT SINCE SPRING 2019, ONLINE CHANNELS HAVE CONTRIBUTED TO NEARLY 70% OF OVERALL CPG GROWTHAWS | REPORT 11LOGISTICS MIDDLE EAST | JUNE - JULY 2021www.logisticsmiddleeast.com predict and manage demand volatility. This is especially valuable now, as ex- treme peaks and valleys have disrupted many businesses’ planning process. As the technology that powers de- mand sensing becomes more accessible, economical, and easy to use, vision- ary companies are exploring how to incorporate it into their supply chain planning. This allows them to pick up on changes in demand sooner, from sources closer to the end con-sumer, and react in time. For example, a CPG company that uses customer promotions and/or com- petitor activity in its demand sensing application has more awareness of the price elasticity of demand and can fore- cast short-term changes in demand for specific products within a particular market. This allows the company to im- prove forecast accuracy and respond better to volatile demand by prioritising inbound and outbound flows of these products to improve service levels. We believe that capturing the right demand signals is one of the most effective steps CPG com-panies can take to make supply chain planning more accurate and efficient. When companies miss the signals that create demand, they are missing crucial information. Capturing those signals with demand sensing allows organisations to analyse short-term fluctuations, adapt longer- term fore-casts as needed, and take appropriate action. Demand sensing in action Promotions and the price elasticity of demand—including marketing promo- tions, price discounts, and price match- ing due to competitor activity—have become essential elements in short- term forecast changes in the CPG and retail world. However, these promo- tions are often disconnected from the supply chain planning process. Com- panies can use demand sensing and ML to improve inputs to the planning process and ensure that supply chain managers are factoring in these de- mand-affecting elements. Consumer behaviour is another area that can provide valuable demand sig- nals. Online companies with e-com- merce channels can track customer journeys and product searches on their websites. If a particular product reaches a certain threshold in terms of numbers of searches or new clicks on the product page—even if the customer isn’t always converting the search to a purchase—a new order could be triggered without waiting for the normal ordering cy- cle. This allows companies to predict demand accurately and minimise lost sales without creating significant in- ventory risk. Since spring 2019, online channels have contributed to nearly 70% of over- all CPG growth. As online channels for CPG companies grow, this will become an even more critical element for CPG companies in responding to demand. Weather is another example of a short-term variable that impacts de- mand for many CPG busi-nesses and can be included in demand sensing to mine valuable insights. For example, a SUPPLY CHAIN TEAMS THAT ARE STRUGGLING TO KEEP UP CAN ATTEST TO THE FACT THAT SOPHISTICATED TOOLS ARE NEEDED TO GET SUPPLY CHAINS BACK ON TRACK IN THE NEW NORMAL.” CPG company that sells ice cream prod- ucts may already know that demand for their products rises with summer heatwaves. However, using demand sensing, one such company identified that if winter temperatures warm by two degrees Celsius, people buy 30% more ice cream than they did the day before—a new insight that would affect forecasts and supply. In another example, a CPG PPE com- pany looking to get ahead of demand fluctuations may in-corporate informa- tion on current and predicted pandemic outbreaks to make decisions on where products will be most needed. Using demand sensing to pick up short-term demand signals doesn’t mean that companies need to change their usual planning cadence, but rather that the short-term data can be fed into the regular process for improved re- sponse through inventory, supply, and distribution planning. Time for a change The events of the past year have caused significant disruption in the CPG supply chain world. But this disruption also presents an opportunity to reinvent supply chain processes. Combining ML with demand sensing in the cloud is fundamentally transforming the forecasting landscape. CPG firms can cost-effectively forecast unique product groups using unique statistical models, resulting in a 5-10% improvement in forecast accuracy. Using AI/ML to generate better fore- casts and adding in demand sensing can help CPGs create a better planning sys- tem that is more efficient and accurate, allowing organisations to ride out this storm and those to come. Mayank Sharma, Supply Chain Business Development Lead for EMEA at AWS Michael Brown, Supply Chain Leader at AWSOur visual support package includes photography and videography services for one day to take professional images of your team, services and products to enhance your website, marketing collateral and social media. Visual Creation Package: • 1 Photographer onsite, for one full day • Post Production Quality Control • 50 edited photos from 5 different scenes • Shared on LinkedIn PROFESSIONAL PHOTOGRAPHY SOLUTIONS WANT TO LEARN MORE? Contact: Lindsey Alba | lindsey.alba@itp.com *Photoshoot for Safari Aviation Services STUDIO SUPPORTPOWER LIST | INDUSTRY LUMINARIES 14JUNE - JULY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.comINDUSTRY LUMINARIES | POWER LIST 15LOGISTICS MIDDLE EAST | JUNE - JULY 2021www.logisticsmiddleeast.com INDIN USTRY Y LUMINANARIES | POWEOW R LIST H.E. Eng. Ali AlSuwaidi, Di- rector General, Ajman Free Zone, joined Ajman Free Zone (AFZ) in May 2020. He was attracted by AFZ’s efforts to promote an inclusive work system based on excellence and innovation. He also found its leadership inspira- tional, which is critical to any com- pany’s success. “I am confident that my role in AFZ is one of the best decisions I have made. AFZ offers world-class service, pro- motes strategic cooperation, and bol- sters coordination with partners and stakeholders,” stated AlSuwaidi. The world is evolving rapidly, and in just a year of working at AFZ, AlSu- waidi witnessed how the industry has changed for the better. AFZ adjusted its policies to adapt to the guidelines and improvements outlined in govern- ment legislation in a swift response to the pandemic’s changes. AFZ is now providing additional support for all companies, including small and me- dium enterprises (SMEs). “AFZ invested heavily in digital in- frastructure to further accommodate businesses inside our vicinity. We also carefully review the performance of busi- nesses and assess management systems, as well as explore new methods of fi- nancing. As far as the results show, our approach is working as intended, proving that free zones like AFZ remain attrac- tive for new businesses in the UAE and the region,” noted AlSuwaidi. “Despite the unprecedented challenges that we faced during the onset of COVID-19, we are honoured to see a rising culture of entrepreneurship within AFZ, with con- stant support from the UAE government.” Despite the pandemic, AFZ was able to hit its targets, thanks to incentives pro- vided by the government. Collectively, AFZ enabled firms to receive stimulus packages, government-led funding, and even gain 100 per cent ownership of on- shore companies. “We also saw an increase of 23 per cent in the number of new companies registered during 2020 compared to 2019. This means that we were able to find more growth opportunities amid the pandemic,” AlSuwaidi said. AFZ’s new multi-cluster approach is significantly contributing to the growth of the education sector. Training and learning opportunities are indispensable in the Free Zone as it fills the needs of various industries for highly trained and educated professionals. “We are also reaping the rewards of implementing a system based on iden- tifying and supporting the development of sectoral clusters. Through our five- year strategy, we are also transforming AFZ to an international business com- munity with clearly identifiable clusters that can strategically work with each other to fulfil their respective interests and contribute to the clusters growth,” AlSuwaidi concluded. I AM CONFIDENT THAT MY ROLE IN AFZ IS ONE OF THE BEST DECISIONS I HAVE MADE. AFZ OFFERS WORLD- CLASS SERVICE, PROMOTES STRATEGIC COOPERATION, AND BOLSTERS COORDINATION WITH PARTNERS AND STAKEHOLDERS.” H.E. ENG. ALI ALSUWAIDI, DIRECTOR GENERAL, AJMAN FREE ZONE ADAPTING AND GROWING H.E. Eng. Ali AlSuwaidi, Director General, Ajman Free Zone, explains how the Free Zone has adapted to the pandemic and continued on its road to successPOWER LIST | INDUSTRY LUMINARIES 16JUNE - JULY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Mohammed Ali Almaj- douie, Almajdouie Lo- gistics Company’s CEO, has worked within the Almajdouie Group for seven years. However, since it is a family com- pany, he has spent most of his life around the business. Before his current position, he served as the Managing Director of Changan in Saudi Arabia and played a crucial role in developing the brand within the Kingdom. “Since taking charge of Almajdouie Lo- gistics in 2019, I have strived to build on the company’s momentum while navigating the complex challenges brought on by the COVID-19 pandemic. Through advance- ments in automation and the development of our digital capabilities, Almajdouie Logis- tics has been able to streamline operations, enhance our team members’ skills, and better serve our customers. I also remain focused on developing a company culture that em- powers employees and creates a positive and productive workplace environment,” Almaj- douie noted. Digitalisation remains an active area of focus for the company. At present, more than 80 per cent of its process and services are fully automated and integrated with stakeholder platforms. “We recently enhanced our fleet with advanced telematics solutions that have improved safety and efficiency. This sup- ports our ambitious digital transformation program, enabling us to build our business through real-time fleet management capa- bilities and data-driven insights. Capitalising on the growth of e-commerce in the King- dom, we have added last-mile delivery and fulfillment services to our offerings,” said Almajdouie. “This milestone cemented our position as the first company in the region to offer complete end-to-end logistics services. Moreover, we have restructured our safety functions across the Kingdom.” Industry change The logistics industry is continuously adapt- ing to meet evolving market conditions and increasingly complex customer requirements. Technology also plays an increasingly im- portant role as innovations and disruptions change the way the industry operates. The one thing that has not and will not change is the demand for reliable, trustworthy, and on- schedule operations, according to Almajdouie. “Backed by more than 50 years of expe- rience, this is an area in which Almajdouie Logistics excels,” he said. Regardless of size, location, or industry, businesses worldwide are facing one of the biggest crises in recent history. However, one of Almajdouie Logistics’ greatest strengths is its ability to turn challenges into opportunities. “We have adapted to new ways of work- ing to support our Kingdom and customers during these unprecedented times, finding a new sense of resilience in the process. Our team members have shown incredible profes- sionalism, going above and beyond to ensure we fulfil our obligations and keep our clients’ projects on track,” stated Almajdouie. “We are also proud to play a role in keeping the supply chain moving, delivering essential products across the country to make sure stores are fully stocked. Saudi Arabia is mak- ing huge strides towards achieving its Vision 2030 goals, particularly becoming a global hub for logistics services that connects three continents. Having the right infrastructure in place is vital, and Almajdouie Logistics is proud to support this process with our expertise and extensive portfolio of assets.” Maintaining the high quality of Almaj- douie’s services and keeping its clients’ pro- jects on track during a period of increased market volatility are among the most signifi- cant challenges it has faced in recent times. To overcome these obstacles, Almajdouie has maintained its strong focus on safety and efficiency while ensuring it communicates even more frequently with customers to un- derstand their evolving requirements better. The company’s most prized asset is its BUILDING A CULTURE, NOT JUST A COMPANY Almajdouie Logistics Company Chief Executive Officer, Mohammed Ali Almajdouie, discusses the company’s growth plans and exceptional track record workforce, which forms the backbone of the organisation. “Backed by our strong company culture and a focus on safety, our team members function as one family to help customers overcome the most challenging logistical requirements. This is even more vital during these challenging times,” stated Almajdouie. Supply chain and logistics operations are on the frontline of the pandemic, keeping essential supplies moving despite significant transport disruptions, movement restrictions, and market volatility. These complications have accelerated the need to innovate, an area in which Almajdouie Logistics excels. “We remain committed to ensuring goods reach customers safely and on time. Standing as a testament to this are the many new pro- jects we have been awarded alongside renew- als for existing contracts,” Almajdouie said. “Protecting the health and safety of our team members, customers, and partners remains our top priority. Long before the coronavirus [COVID-19] pandemic hit, maintaining high safety standards was always part of ‘business as usual’ for us. Now, this is even more vital as we work to keep the Kingdom’s supply chain moving. We took a proactive approach from the onset of the pandemic, implement- ing strict hygiene measures across our organi- sation to ensure the safety of our employees and customers. We are also complying with the Ministry of Health’s guidelines to combat the spread of COVID-19.” A special task force (Business Continu- ity Committee), which includes execu- tives from all Almajdouie’s affiliates and a medical consultant, is coordinating the company’s preventive measures. These critical steps are helping to en- sure that Almajdouie’s team members can continue to serve customers safely and ef- fectively despite the current pandemic and its circumstances.INDUSTRY LUMINARIES | POWER LIST 17LOGISTICS MIDDLE EAST | JUNE - JULY 2021www.logisticsmiddleeast.com INDIN USTRY Y LUMINANARIES | POWEOW R LIST FILLING THE E-COMMERCE GAP Fadi Amoudi, CEO of IQ Fulfi llment, talks us through his vision for his company In 2018 Fadi Amoudi, CEO of IQ Fulfillment wanted to start a grocery e-commerce platform. It turned out that his concept was challenging due to the lack of a robust e-commerce logistics infrastructure in MENA. “While MENA e-commerce was booming, the infrastructure behind it was staying the same. It was clear to me that there was a gap in the e-commerce logistics in MENA that needed to be addressed. So, I asked myself a question: How many promising e-commerce ideas die every morning? How many aspiring entrepreneurs see their dreams shattered, because of these challenges? I made it my mission to help all e-commerce entrepreneurs succeed. So, instead of acquiring a problem, I made a business instead,” Amoudi noted. IQ Fulfillment was created and went live in November 2019. Today, by powering e-commerce, IQ Fulfillment is helping entrepreneurs make their ideas happen. By fulfilling orders, IQ Fulfillment powers other entrepreneurs’ dreams. IQ Fulfillment aims to be the first in the region to offer and leverage the latest logistics technologies powered by Robotics and AI to provide cutting-edge, customised solutions at a cost- efficient level. Its expertise in supply chain management within the region, along with a talented team of international professionals, uniquely position the IQ group to create exceptional value to e-commerce players, regardless of their scale. DELIVERING EVEN MORE MARKET KNOWLEDGE ACCESS EXCLUSIVE INDUSTRY WHITE PAPERS For More Information Lindsey Alba Sales Manager +971 4 444 3524 lindsey.alba@itp.comPOWER LIST | INDUSTRY LUMINARIES 18JUNE - JULY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com BEST-IN-CLASS WAREHOUSE AUTOMATION TRANSFORMING OMAN FOCUSING ON AUTOMATION THE STATE- OF-THE-ART CLEARANCE GATEWAY Alain Kaddoum, General Manager, Swisslog Middle East, looks at the companies success, despite the challenges of 2020 In the last decade, Swiss- log has seen a wide- spread interest in ware- house automation, and more so since the beginning of the COVID-19 pandemic. During the pandemic, companies have been searching for ways to reduce labour costs, improve labour shortages, and increase throughput. During the pandemic, Swiss- log onboarded two e-grocery projects in Kuwait and Saudi Arabia and one major software project with Swisslog SynQ in the UAE’s e-commerce sphere. Mark Geilenkirchen, Chief Executive Offi cer, SOHAR Port, talks about turning Oman into a global logistics hub SOHAR Port started operations in 2003, the Freezone just four years later, in 2007. “I joined SOHAR Port and Freezone as CEO in July 2016, prior to which I was Global Client Director with APM terminals in Hong Kong. With the Omani government starting to place an increased focus on transforming the Sultanate into a global logistics hub, I was keen to use my experience to help position SOHAR as a key contributor to this objective and turn it into the fast- growing port and free zone LogSquare, Executive Director Jacques Adem, looks at how the company has grown LogSquare was of- ficially founded in 2009; its main focus was on automated and in- novative material handling solutions within the supply chain. Having experienced conventional systems, the company identified a grow- ing need for automation and robotics. “My team and myself strive to assist logistic operators to strengthen their capabilities and support the growing e- commerce, FMCG and om- nichannel retail sectors,” said Jacques Adem, LogSquare’s Executive Director. “LogS- quare’s main differentiators Mark C. Anthony, Commercial Director, Eastern Gateway Logistical Services Company, talks about what the company does differently The Eastern Gateway Bonded zone was launched in 2019 to provide Saudi Arabia with a state of the art fast track clearance gateway, bonded, regional transit hub, national distribution centre, and bonded storage facility. “Eastern Gateway’s status as an inland bonded port means it’s approved to process/store all categories’ of air, road and sea freight. At the end of 2020, Swisslog also commissioned an automa- tion project for a library and a medical supply company. “The team at Swisslog has been working round the clock to support our customers as they push the limits of their supply chains to provide needed medi- cal supplies, maintain the food supply and meet the demand for other important sectors. We have been receiving a lot of enquiries from businesses on how they can integrate automa- tion technology in their existing infrastructure,” said Kaddoum. development it is today, in the region and beyond,” stated Mark Geilenkirchen, Chief Executive Officer, SOHAR Port. “Last year has taught us to adapt quickly and efficiently to the unforeseen, introducing new ways to serve our customers digitally and optimise current processes, while maintaining the highest of quality standards.” are its local engineering and implementation capabilities. During the pandemic, we suc- cessfully commissioned sev- eral projects in the Middle East and North Africa region and engaged in new ventures. I am particularly proud of our front liners, [engineers and technicians], who did not hold back. They supported our partners throughout without any compromise on service level and quality. We are maintaining a constant growth path in customer ap- plications and services.” Additionally, the zone acts as a KSA land bridge terminal for bonded GCC road freight services. We’re particularly proud that the EGBZ’s primary 40,000 square metre warehouse structure offers its users a one-stop integrated multi modal, multi user, multi temperature logistics facility at a single operational site. A first for Saudi Arabia,” said Mark C. Anthony, Commercial Director, Eastern Gateway Logistical Services Company.INDUSTRY LUMINARIES | POWER LIST 19LOGISTICS MIDDLE EAST | JUNE - JULY 2021www.logisticsmiddleeast.com INDIN USTRY Y LUMINANARIES | POWEOW R LIST Robert Sutton, Head of the Logis- tics Cluster at Abu Dhabi Ports, has been with the company for three years as Head of the Lo- gistics Cluster at Abu Dhabi Ports. He has been engaged across traditional, multi-modal, and digital supply chains spanning the MENA region, Asia, and Europe for over 20 years. “I am inspired by the prospect of in- creasing our integrated solutions reach and delivering value to internal and ex- ternal stakeholders, while helping spear- head the growth of Abu Dhabi’s trade and logistics industry,” he stated. Industry evolution During his 20 years in the supply chain sector, he has seen the radical change and disruption that digitisation has brought. The supply chain has adapted and con- tinues to evolve as new technologies in- fluence trade movements and demand/ supply relationships. “There is no doubt that today’s industry is more agile but this also brings greater risk of disruption, which is one of the key areas that today’s logistics professionals need to focus on. Intelligent use of data and information is of critical importance in a modern, fast paced and agile supply chain. Furthermore, in contrast to the sup- ply chain of two decades ago, today’s suc- cess is reliant upon forging value-driven partnerships that help expand reach, scale and diversity,” he noted. The ability to adapt to the ever-evolving supply chain landscape and stay ahead of the digitisation wave has brought Abu Dhabi Ports to the success it enjoys today, despite the challenges that COVID has brought to the supply chain sector. COVID Constraints Abu Dhabi Ports takes great pride in its achievements over the last 16 months. The company focused on staff safety, and was instrumental in securing food and medicine supply chains, and keeping global supply chains operational throughout the turmoil. “Together with our HOPE Consorti- um partners, we also helped spearhead global distribution of COVID-19 vaccines by establishing one of the most extensive and capable vaccine supply chains in the world. I am very proud of what our Con- sortium team and its global partners have been able to accomplish in a relatively short amount of time, and I look forward to continuing our work together to help turn the global tide against the pandemic and chart a path towards a sustained re- covery,” stated Sutton. Abu Dhabi Ports plays an essential role in keeping the Emirates safe and supplied during this pandemic. I AM INSPIRED BY THE PROSPECT OF INCREASING OUR INTEGRATED SOLUTIONS REACH AND DELIVERING VALUE TO INTERNAL AND EXTERNAL STAKEHOLDERS, WHILE HELPING SPEARHEAD THE GROWTH OF ABU DHABI’S TRADE AND LOGISTICS INDUSTRY.” ROBERT SUTTON, HEAD OF THE LOGISTICS CLUSTER AT ABU DHABI PORTS ABU DHABI PORTS: DELIVERING REAL VALUE Robert Sutton, Head of the Logistics Cluster at Abu Dhabi Ports, discusses the growth of Abu Dhabi’s trade and logistics industry and the role Abu Dhabi Ports plays in that growthNext >