MORE than 100 students from Blue Ocean Academy joined academics and distinguished guests at a recent award-giving ceremony, in Dubai, for the culmination of two separate courses on logistics and supply-chain management (SCM) and on shipping and trading.

GAC Bahrain has been awarded the official freight forwarder and lift contractor for the inaugural staging of the Bahrain International Airshow (BIAS) 2010, according to Bahrain’s Civil Aviation Affairs.

PLAYERS in the supply-chain and logistics industry have argued for the implementation of carefully-managed cost-control systems, saying that indiscriminate cost-cutting could lead to low product quality and poor customer service.

This may be done by conducting logistics audits like reducing operation errors in a warehouse and analysing the fixed and variable costs in a warehouse function, said Dr Kanak Madrecha, a member of the regional development committee of the Supply Chain and Logistics Group (SCLG).

Speaking at the “Supply chain cost control: Achieving long term operational sustainability, cost control and profitability”, he stressed the importance of global supply chain businesses in the economy. The cost of logistics in the US alone was valued at $1.4 trillion in 2007, or 10.1% of that country’s GDP, though lower than 17.9% share posted in 1980.

The forum, organised by Malaysian-based conference producer Marcus Evans and held in Dubai on November 8-9, focussed on managing the supply chain in today’s competitive markets. It was held side-by-side with the “In-store marketing excellence” conference, which aimed to help retailers increase in-store sales by making walk-in customers buy more products.

“The main aim among most of the supply demands are looking into shorter life cycles with less cost, but producing better quality products,” the organiser said. “Cutting cost is the simplest way to improve the organisation’s bottom line with a well-planned cost-control system.”

Madrecha, who is also practice head of DP World Business Excellence Centre, said warehouses need to review its total costs for the last three to five years, and take note of actual trends and targets. It’s a great way to reduce costs, he said, especially if coupled with a brainstorming to question the costs of procurement, warehousing and distribution against global benchmarks.

The logistics manager at Al Futtaim Retail, Jiby John George, said cost-control systems implemented by his company have resulted to a 50% reduction in inventory cover and the value by more than 20%, but still with sales targets being met.

He suggested that store replenishments must be delivered according to the maximum capacity of store rooms. He also pushed for the consolidation of multiple brands for delivery in one location, in order to save costs. “Sourcing pattern from direct suppliers for certain brands has had a cost-saving impact on the merchandise cost,” he stressed.

Michael Proffitt, one of SCLG’s global thought and industry leaders and former CEO of Dubai Logistics City, said an efficient, high-performing supply chain will pave the way for an effective business strategy for growth. Companies of all sizes and industries, therefore, must re-evaluate their supply chains.

The forum organiser said the participants drew “important lessons” from the experts, who boast years of experience in the supply-chain and logistics industry. “It has been specifically tailored to achieve the key principles,” it stressed, “to have the opportunity to lay up the capital and stay ahead in business.”

The former chief operating officer of Hamleys London, Paul Currie, said the toy manufacturer had a 20% increase in sales when it redecorated its store in the British capital, making it more appealing to children through eye-catching colours and innovative designs.

He told participants in the “In-store marketing excellence” forum that Hamleys set up the “Club Create”, for instance, a section at Hamley’s which encourages children to be more creative by experimenting with the different colurs and shapes through some drawing and scribbling exercises. “Parents around the world want their children to be creative, to learn more about co-ordination,” Currie said.

Candace Adams, president of Global Retail Strategy, stressed the need for supermarkets and department stores to know their customers better, and display their goods in such a way that they would entice more buyers.

MORE than 100 students from Blue Ocean Academy joined academics and distinguished guests at a recent award-giving ceremony, in Dubai, for the culmination of two separate courses on logistics and supply-chain management (SCM) and on shipping and trading.

The Logistics and SCM students were awarded the prestigious Certified International Supply Chain Professional and Certified International Supply Chain Manager certificates, from US-based International Purchasing and Supply Chain Management Institute, after a 10-week course.

Those who completed an eight-week course Shipping and International Trade, on the other hand, received the certificate of Certified International Trade Professional, from the American Institute of Business Management.

Dubai-based Blue Ocean Academy, a training and management consultancy institute and a member of the Supply Chain and Logistics Group (SCLG), is becoming known also for its training courses in retail management and business management.

SAUDI Iron and Steel Company (HADEED), the manufacturing affiliate of Saudi Basic Industries Corporation (SABIC), signed a deal with Italy’s Danieli for the construction of a new steel plant and a production line for galvanising long products in Jubail, Saudi Arabia.

The new plant is scheduled to come online by the second half of 2012, and will have an annual production capacity of one million tonnes of steel billets. Its production will increase HADEED’s capacity to six million tonnes, four million of which will be long products.

HADEED Chairman and SABIC Vice-President for Metals, Abdulaziz Suleiman Al Humaid, said the project will make HADEED self-sufficient in feedstock, intermediate and finished products as its steel billets can satisfy the requirements of HADEED’s galvanising lines.

Moreover, instead of relying on imports, HADEED can now provide high quality and specialised wire rolls to its plants as well as to local customers with special needs.

Meanwhile, SABIC’s joint venture with China Petroleum and Chemical Corporation (SINOPEC) gets stronger as the two companies complete the construction of its $2.7 billion new petrochemical complex at Tianjin, China.

Beginning on the first quarter of next year, the facility will produce 3.2 million tonnes annually of ethylene as well as other chemicals like polyethylene, ethylene glycol, polypropylene, butadiene, phenol and butane-1.

“We have developed great synergy between the two companies based on our shared goal of providing high-quality petrochemical products to the domestic Chinese market,” said SABIC Chairman Prince Saud bin Thenayan Al Saud.

SINOPEC Chairman Su Shulin said, “SINOPEC will, together with SABIC, jointly strengthen our current co-operation and maintain long-term strategic partnership, to make the joint venture an outstanding platform for the expansion of future co-operation and the development of our friendship with SABIC.”

JUMBO Electronics has opened a new store at Bawadi Mall in Abu Dhabi’s Al Ain City, its third store in the city and the 30th in its retail network, as it continued to expand in the UAE.

“Al Ain is an important market for us, and one where we see great potential for growth,” said Peter McElwaine, the company’s CEO. “We have recently seen interests in consumer electronics increase in our existing stores in Abu Dhabi’s garden city and, with the launch of our third Al Ain store, we are well-placed to meet this demand.”

He stressed that Jumbo Electronics, being “an established company with strong foundations”, has enabled itself to weather the economic downturn. While the worst of the economic crisis is over, there are still a number of challenges facing the retail sector.

“However, we remain optimistic and believe the region is well-positioned for a strong recovery,” he said. “We look forward to continuing our expansion in the coming year.”

With 30 outlets and nine service centres across the UAE, Jumbo Electronics is one of the first transnational corporations in the country, and known as a giant retailer of consumer electronics, IT, telecommunications products, home appliances, office automation and entertainment systems.

RETAIL giant EMKE Group, operator of the Lulu Hypermarkets, revolutionised logistics concepts in the Middle East with its use of the award-winning warehouse management system, LFS 400, in its brand-new warehouse.

Designed by leading warehouse expert Ehrhardt + Partner Solutions (EPS), the LFS 400 guarantees flexibility and easy-to-use customised solutions to warehousing needs. With this system, the EMKE group assures a high accuracy of inventory and picking.

“The system optimises the utilisation of all warehouse resources like employees, storage technology and materials handling,” explains Hermann Ehrhardt, managing director of EPS.

The new 25,000-square-metre (sq m) warehouse in Dubai contains more than 50,000 food, non-food, electronics, garments and housekeeping items for the Lulu chain of stores. It consists of 16,250 pallet places, 40,000 garment shelves and 22,000 bin locations for shelf storage.

The warehouse is connected to a central IBM computer i5, which is located at the data centre in the head office of EMKE Group in Abu Dhabi. Further sites of the group will follow within 2010, giving it more than 200,000 sq m of storage managed by only one WMS. LFS 400 is designed in a way that different warehouse sites in different countries can be connected with only one software installation.

“Our project analysis, preparation and training led us to the successful introduction for EMKE Group’s warehouses,” said Ramon Thoms, regional manager of EPS and head of the project for EMKE Group. “With the installation of LFS 400 at EMKE Group’s warehouse, they opened a new chapter of the logistics era in the Middle East.”

Madhav Rao, head of IT at EMKE Group, explains the results of the software implementation, “LFS 400 is the platform guaranteeing a perfect process in our warehouses. Also for us, the challenge was to transform the users from traditional paper-based system to handheld devices, thus completely eliminating paper.”

GAC Bahrain clinches air show contract

GAC Bahrain has been awarded the official freight forwarder and lift contractor for the inaugural staging of the Bahrain International Airshow (BIAS) 2010, according to Bahrain’s Civil Aviation Affairs.

The logistics company will provide comprehensive supply chain solutions for the show, which will be held under royal patronage at the Sakhir Airbase, in Bahrain on January 21-23. The air show is organised by the Civil Aviation Affairs in partnership with Farnborough International.

Peter Gronberg, managing director of GAC Bahrain, said the country is acknowledged as a pioneer in aerospace business in the region. The show will enhance Bahrain’s reputation as a preferred destination for major global businesses.

He added that the show will offer a totally new concept to the global aerospace community, and provide unique business opportunities to its participants. “It is an exciting project, which will demand the highest service levels we can provide – through our local knowledge and global reach – to meet the needs of both organisers and participants alike,” he stressed.

GAC Bahrain’s long experience in the country, its global network of air, sea and road services, complemented by state-of-the-art local warehousing facilities, will enable seamless supply chain management for the air show.
The GAC Logistics Centre at Muharraq is the first-of-its-kind in Bahrain, offering multi-modal options under one roof. With customs services on site 24/7, GAC is able to provide prompt cargo clearance as well as bonded facilities for combined air, sea and road operation.

LOGISTICS manpower provider Dulsco HR Solutions sees the opening of the Dubai Logistics City (DLC) and the upcoming traffic growth of Dubai Airport as opportunities to expand its manpower outsourcing operations and diversify the skill-sets it can offer to clients.

Dulsco started providing stevedores in ports about 70 years ago and now serves the manpower needs of logistics companies on top of its operations in ports and airports. The number and variety of its clients gave the company the internal flexibility to redeploy its manpower resources during the worst part of the economic slowdown, thereby maintaining the high utilisation rate of its work force.

Surjeet Singh, general manager for logistics at Dulsco HR Solutions, said, “We have a large number of workers and staff deployed at the airport which give us the confidence and the expertise to provide valuable support to cargo and baggage-handling operations at all existing as well as future terminals.”

He was alluding to the expected substantial increase in the air traffic at Dubai Airport, with its consequent increase in passenger numbers, luggage and cargo. “We will ensure to maintain the corresponding number of trained staff ready to serve them,” he added.

In addition, Dulsco sees an opportunity to expand with the upcoming DLC, as it is expected to attract world-class logistics companies, and allow existing companies to expand and upgrade their current operations. This will also require highly skilled personnel.

Dulsco ensures that it keeps the right skilled, trained and experienced staff in its outsourcing pool, so that these personnel can add value to the company’s clients. Besides obtaining the right skill-sets, clients also enjoy the flexibility of hiring people based on their workloads, thereby giving the clients huge cost benefits.

DHL carries F1 TM freight to Abu Dhabi Grand Prix

FAST Rent A Car is investing $12.3 million this year to more than double the number of vehicles in its specialised bus leasing division, citing growing demand in the UAE.

It just added 33 buses to its 120-strong fleet, and will invest for 100 more buses. It said it has witnessed a “steady rise” in business for the past 12 months, despite the economic meltdown.

“This investment… is indicative of the confidence and trust that our customers are continuing to place in our products and services… .” said Ahmed Abood, CEO of Fast Rent A Car. “By more than doubling the size of our fleet, we are also better placed to provide a full range of the latest, flexible transportation options to potential clients.”

KUWAITI-based global logistics company Agility was indicted by a US grand jury for overcharging the American government by $60 million on military contracts worth $8.5 billion, an allegation which Agility vehemently denies.

Initially, the company was not considered a suspect in the investigation which dragged the names of large American food companies, such as Sara Lee and Con Agra. Inexplicably, Agility was dragged into the issue.

Of immediate concern to Agility is the temporary suspension of its contracts with the US military, pending the resolution of the case.

In 2007, Agility won contracts for the supply of food and other items to American troops in Iraq. Since then, the US military has been its key customer, as it won more contracts for military operations in mainland US, in Afghanistan and in a major US base in the Pacific.

EMIRATES Airline President Tim Clark revealed that the further five-month delay in the delivery of Airbus A380s will affect the Dubai-based carrier’s expansion plans, particularly in the New York route which will be delayed for at least six months.

Instead of the planned 20 A380s, Emirates will have only 15 A380s by the end of 2010. The shortfall of five aircraft will definitely impact the airline’s growth plans, although Emirates is still projected to take delivery of 22 aircraft worth $3 billion within this financial year.

The Arab world’s biggest carrier recently announced that its profit grew 165% to $204.72 million during the first half of its financial year ended September 30, through cost-cutting measures and the freezing of recruitment. However, the airline is now in hiring mode again as it experiences growth trends.

AZZA Air Transport Company, the Sudanese operator of the Boeing 707 cargo plane which crashed in Sharjah last October, has been temporarily banned by the General Civil Aviation Authority (GCAA) from flying in UAE airspace, pending investigation of the incident which killed all its six crew members.

Initial investigation by the GCAA disclosed that Sharjah Airport operations did not seem to have contributed to the crash. The GCAA is co-ordinating with authorities from other states to get all records which might contain valuable information and shed light on the incident.

Aviation experts said the Sudanese air fleet is outdated. The Sudanese authorities claimed that they cannot get spare parts for the US-made aeroplane because of economic sanctions imposed by the US on Khartoum for allegedly supporting terrorism. The US replied that aircraft spare parts are not part of the sanctions.

Air Arabia eyes Casablanca as additional base

AS it marks its sixth year of operations, low-cost carrier Air Arabia eyes Mohammad V International Airport, at Casabalanca, as an additional base where it expects to operate 20 to 25 planes in the next five years.

Air Arabia leases majority of its 20 aircraft operating from its Sharjah base. The growth in the industry compelled the airline to order 44 A320s, which it will receive over a minimum of five years.

Last March, it launched its Moroccan base to gain a hub closer to its target markets, and thus extend its destinations beyond its five-hour flying radius.

“We are hoping that in five years we will have anything in the range of 20-25 aeroplanes at the base and to have at least 60 airports to operate from,” said Adel Ali, chief executive of Air Arabia. The airline flies to 57 destinations in the Middle East, Europe, Africa and Asia.

KHORFAKKAN Container Terminal (KCT), operated by Gulftainer for the Sharjah Port Authority, has added two Liebherr Super post-Panamax cranes (Megamax) with tandem lift capability to the terminal’s equipment. With the expected arrival of two more units within the year, this brings the total number of gantries at KCT to 18 before the expansion is completed.

KCT is recognised as one of the world’s leading container transhipment ports. Over the past year, it has been dealing with a higher number and larger sizes of vessels. The Sharjah Ruler, His Highness Sheikh Dr Sultan bin Mohammad Al Qasimi, decided to expand KCT and the Sharjah Container Terminal to deal with more, bigger ships even before the onset of the economic downturn.

“Although the ports and shipping industry was quite severely affected by the global crisis, it is important that we continue to build for the future,” declared Gulftainer Director and General Manager Peter Richards.

He said the additional quay extension of over 400 metres at Khorfakkan is now almost ready. And with the additional four new state-of-the art gantries, Sharjah’s ports are even more able to service increased numbers of ships, particularly larger vessels.

This increased capacity, combined with KCT’s geographic location and its fast, efficient turnover, means that the terminal is in an ideal position to continue to help shipping lines save time and money. The addition of new gantry cranes will help improve KCT’s already impressive performance even further in this respect.

Etihad is world’s best airline; wins top marketing award

ETIHAD Airways has been adjudged the world’s best airline, and also won the top marketing award in separate events organised by two different award-giving bodies.

The ‘World’s Leading Airline’ award for this year was given by the World Travel Awards, in London, while the ‘Marketing Strategy of the Year Award’ was granted by the Middle East Business Achievement Awards.

“Three years ago, Etihad set for itself one clear and simple goal – to be the best airline in the world,” said the airline’s chief executive, James Hogan, as more than 180,000 travel industry professionals from over 175 countries voted Etihad Airways as the world’s top airline.

He added, “I am proud of the way Etihad people all over the world have embraced that vision, supporting our investment in state-of-the-art products by delivering superb customer service.”

The first airline in the Middle East to win the award from World Travel Awards, Etihad Airways was recognised for the excellence of its on board products, luxurious airport lounges and strong service ethics during its period of phenomenal growth.

“Etihad is honoured to be recognised as the World’s Leading Airline by travel agents and other industry professionals – the people who really know what travellers are looking for in an airline,” Hogan said.

The airline also took home the award for ‘Leading First Class’ for the second year in a row. “Winning [this] … tells us that our commitment to continuous investment in our product and service is the right strategy for us and our customers,” Hogan added.

The World Travel Awards recognises the world’s very best airline, hospitality and tourism brands. Nominations come from industry experts, who take notice of all the airlines’ customer relations, creativity, quality of service, product innovation and business acumen.

The marketing award recognises Etihad Airways’ Inspired Service throughout 2008 and 2009, including a service component that offers customers greater choice and personalised attention in line with the five-star rating from the hospitality industry.

“Inspired Service offers our guests a seamless, integrated travel experience from the ground to the air, with every touch point of the journey identifiable as uniquely Etihad,” said Peter Baumgartner, the airline’s chief commercial officer.

This campaign includes the dissemination of brochures, interactive presentations and virtual 3-D product walkthroughs using high-quality photographs and elements reflective of the new personalised service style.

“We support everything we do with investment in people and training as well as infrastructure, and look for global exposure through key sponsorships and events as well as marketing communication activities,” Baumgartner said. “This attention to every area of our business, and the effective integration of all these elements, is what makes our marketing so successful.”

Dubai Customs wins ISO certification 2 years in a row

FOR the second consecutive year, an international authority in quality assessment has recognised Dubai Customs for its adherence to best practices in managing customer complaints.

The ISO 10002:2004 certification from the London-based Lloyds Register Quality Assurance Company has made Dubai the first government department in the Middle East and North Africa to have won such recognition.

This has also placed Dubai Customs alongside some of the world’s major conglomerates, such as General Motors, Boeing and FedEx.

Dubai Customs’ customer complaint management ISO certified practice will be published on the official website of Lloyds Register The same customer complaint management system was published in specialised European and American magazines.

Ahmed Mahboob, executive-director of Clients Management Division at Dubai Customs, said his office is one of the government organisations playing key roles in the regional economy.

“It is extremely important, therefore, to pay special attention to clients’ needs and requirements in order to reach a high level of customer satisfaction,” he stressed.

He said the system was developed completely in-house by Dubai Customs employees. The Customer Care Office at The Executive Council has decided to adopt a proposal for the implementation of the same system at all government departments in Dubai.

“Dubai Customs recognises the right of its clients to complain, and it welcomes complaints as a valuable form of feedback and input that would help it improve its services,” said Mohammad Faraj Abdullah, director of Clients Management at Dubai Customs.

Officials said Dubai Customs has benefited from the Lloyds Register’s ISO certification in improving its customer complaints system and reducing the period of handling complaints to 1.5 days in the first and second quarters of the year from 7.4 days in the first quarter of 2008.

This enabled Dubai Customs to handle 100% of the complaints it had received, enhancing its customer satisfaction level to reach 100%.

Shipping summit underscores industry protection

SPEAKERS at a shipping conference in India have urged government to ensure that the proper transport of coastal trade be handled only by Indian-flagged vessels. They also pushed for local shipping companies to be given preference in the country’s import-export trade.

Yudishthir Khatau, chairman and managing director of Varun Shipping Company, cited a number of cases which, he said, crippled the Indian ship owners, owing to the lack of protectionist policies by government.

“It is important to remember that, like the tiger, the ship owner is a symbol of a larger ecosystem,” he said during the fifth India Shipping Summit, in Mumbai last October. “By protecting and championing the tiger, you are actually protecting the forest and all its reserves that benefit many other animals.”

About 500 representatives from domestic and international maritime companies converged in Mumbai for the two-day event, which showcased solutions in dealing with hazardous emissions in the shipping industry. There were also presentations on the cost-savings to be gained from investments in technology, design modification and energy optimisation.

Khatau, who is also the president-designate of the Baltic and International Maritime Council (BIMCO), the world’s largest private shipping organisation with 3,000 members, stressed the enormous value chain that is linked to Indian shipping. “It is vital that the maritime community, like the forest, continues to grow,” he said.

Tobias König, managing partner at König & Cie KG, backed echoed the same sentiment on the need for a level playing field to encourage foreign investment in the Indian maritime sector. “India doesn’t need a think tank,” he exclaimed, “it needs a do tank!”

Environmental concerns were discussed in the second day of the forum, whose panelists included Katau and Sabyasachi Hajara, chairman and managing director of the Shipping Corporation of India. Hajara joined Khatau in calling for government regulations to protect domestic ship owners.

BBC’s ‘Box Project’ chronicles container industry story

AFTER travelling more than 50,000 miles around the world in a journey lasting more than one year, the ‘BBC Box’ is back in the UK. Dubbed the Box Project, it was intended to illustrate the state of the container industry in the midst of the worst global recession in decades, as BBC monitors the progress of the shipping container as it travels.

When the project was launched in September 2008, the shipping industry was facing a record-high 10% idled fleet, coupled with depressed and still slumping container revenues.

The container’s first cargo was Scotch whisky, from Greenock in the UK to Shanghai, China, which showed the strong purchasing power of China’s consumers even in the face of recession. As global trade reached near standstill, so did the BBC Box. From April until July 2008, the container sat empty at the Japanese port of Yokohama.

The progress of the BBC container demonstrated the close inter-dependency of nations. When consumer demand slackens, exporting countries will suffer; when trade slows down, all nations, developed and developing alike, are affected.

John Manners-Bell, chief executive of Transport Intelligence (Ti), in a media interview during the return of the BBC Box in London, admitted that the shipping lines have been savaged by the downturn in global trade. Volumes have fallen by 15-20% and shipping lines’ revenues by anything from 25-50%.

To survive, shipping lines have to take ships, particularly the older ones, out of service, add more port-of-calls and reduce travelling speed. The resultant capacity reduction and the re-balancing of supply and demand have led to increase in shipping rates, Manners-Bell said.

The BBC Box story continues as BBC’s project partner, the shipping company Nippon Yusen Kaisha, or NYK Line, agreed to donate the container for charitable use. It will be transported to Africa, where it will be refitted as a permanent soup kitchen for some people who have been worst-affected by the global recession.