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www.supplychaindigital.com October 2014 Procurement Negotiating Successful Fixed Price Packages Cloud Computing Reshape Your Business Top 10 Trucking Companies DHL Supply Chain Sharing its Vision for the Future Logistics Get Ready for Canadian Crude

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Page 1: Supply Chain Digital - October 2014

www.supplychaindigi tal .com

October 2014

ProcurementNegotiating Successful Fixed Price PackagesCloud ComputingReshape Your Business Top 10 Trucking Companies

DHL Supply Chain

Sharing its Vision for the Future

Logistics Get Ready for Canadian Crude

Page 2: Supply Chain Digital - October 2014

When it comes to lifting, transporting, installing and decommis-

sioning large structures, we believe your biggest challenges

aren’t about size. They’re about time. Uptime, turnaround time

and time to market. In case of decommissioning, where no two

structures are the same, time spent on careful planning and

creative engineering results in a solution with an optimal balance

between time, cost and capacity for each operation.

With offices on every other continent and a fleet of equipment

that is unparalleled in size and capacity, Mammoet provides

tailor-made solutions for engineered heavy logistics. If you are

facing challenges in decommissioning, give us a call. Time may

not be set in concrete or forged in steel. It isn’t even all that

heavy. And yet, it’s the biggest thing we can move for you.

For more information, please call Jelle Lanting, general manager

Decommissioning: +31 6 46 60 25 55. Or send him an email:

[email protected]

Discover more on mammoet.com

THE BIGGEST THING WE MOVE

IS TIME

133170-1 Mammoet ads_297 x 210 mm 05-12-13 08:30 Pagina 1

Page 3: Supply Chain Digital - October 2014

Looking to the futureI N T H I S E D I T I O N W E are taking a look at the new technologies and innovations that will propel the sector forward into a fresh era of increased efficiency and productivity.

Our front cover story is from DHL Supply Chain, where Damian Pike, Vice President of Innovation & Transformation take us through what the supply chain might look like in the coming years. Alaina Fraser, Senior Energy Consultant Americas for Allegro Development Corporation writes about the energy supply chain and specifically the demand for Canadian crude oil after recent events.

For the procurement section the subject of negotiating fixed price packages is tackled by Kevin Knowles, Managing Partner at Cavendish Wood. We also cover all things cloud computing, and the old favourite top ten is back; this time we look at the biggest trucking companies around, including the likes of JB Hunt Transport and CH Robinson Worldwide.

Sam [email protected]

E D I T O R ’ S C O M M E N T

3

Page 5: Supply Chain Digital - October 2014

TechnologyHow Cloud Computing can reshape your business

28

CONTENTS

LogisticsRail, Road or Pipe; Get Ready for Canadian Crude

Supply Chain ManagementDHL Supply Chain shares its vision for the future

ProcurementNegotiating successful fixed price packages

5

8

22

14Features

Trucking Companies

TOP 10

34

Page 6: Supply Chain Digital - October 2014

W E S U P P O R T T H E L E A D E R S s u b s e a | a c c o m m o d a t i o n | c a b l e | o � s h o r e s e r v i c e v e s s e l s

Yo u r p a r t n e r i n o � s h o r e s h i p b r o k i n g s e r v i c e sw w w. f e a r n l e y o � s h o r e s u p p l y. c o m

Chartering

Newbuilding

Sale & Purchase

Market Intelligence

Consultancy / Advisory

Page 8: Supply Chain Digital - October 2014

8 O c t o b e r 2 0 1 4

Rail, Road or Pipe; Get Ready for

Canadian Crude

LOGIST ICS

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99

With Keystone XL in limbo, the rapidly changing energy supply chain needs a new risk management strategy

W R ITTE N BY: A LA I N A F RAS E R , S E N I O R E N E R GY C O N S U LTA NT A M E R I C AS F O R A LLE G R O D E V E LO PM E NT C O R PO RAT I O N

Page 10: Supply Chain Digital - October 2014

1 0 O c t o b e r 2 0 1 4

WITH CONGRESS CONTINUING to wrangle over any decision regarding

the Keystone XL pipeline, the US

energy industry is taking matters into

its own hands.

Oil-starved markets are primed for

an influx of Canadian crude oil, but

with pipeline transport off the table

for the foreseeable future, producers

are starting to develop an alternative

supply chain infrastructure to meet the

demand.

The problem is, recent disasters

have soured legislators and

environmentalists on road and rail for

moving oil, drawing intense scrutiny

and calls for increased regulation.

Alongside political uncertainties

are other wildcards like extreme

weather and an emerging logistical

infrastructure, which can all impact

the flow of goods. That makes the

proposition of a non-pipeline solution

particularly thorny.

How should supply chain decision

makers position to connect with

premium energy markets, manage the

attendant risks, while also addressing

the strong likelihood of an increased

regulatory burden?

From the source of the commodity

to the end consumer, the ability to

track energy assets in real-time is set

to become more important than ever.

Boom Times for North American Energy ProducersProduction from Canada’s oil sands

is on the rise, with output expected

to nearly double by 2030 to 6.7

million barrels per day. That accounts

for about 98% of the country’s oil

reserves.

Primary market opportunities exist

in both Canada and the US, where

replacements for offshore imports are

desired. Getting the oil to premium

and secondary markets however is

“Oil-starved markets are primed for an influx of Canadian crude oil, but with pipeline transport off the table for the foreseeable future, producers are starting to develop an alternative supply chain infrastructure to meet the demand”

LOGIST ICS

Page 11: Supply Chain Digital - October 2014

F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E

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another matter.

Considering the gooey consistency

of Canada’s pure bitumen, rail makes

sense as the main pipeline alternative.

Rail transport doesn’t require dilution

prior to shipping, as it does in pipeline

transport; so shipping bitumen in its

pure form would require fewer barrels.

That creates an incremental netback

on rail transport of about $6 per barrel,

compared to pipeline processing.

Recent disasters such as the

derailment in Lac-Megantic, Quebec,

however, have attracted public outcry

in both countries for tighter controls.

This means more regulation is likely,

with stiffer compliance for all parties

participating in the energy commodity

supply chain.

Despite those concerns, the

Keystone delay has spurred producers

to start shipping Canadian crude by

truck, rail or barge. TransCanada,

a major energy company based in

Calgary, Alberta, has plans to build rail

terminals in Alberta and Oklahoma.

Exxon Mobil is also planning a

new Canadian rail terminal, set for

operation in 2015 at a cost of about

$250 million. Its completion would

accommodate shipments of nearly

100,000 barrels per day.

Rail makes sense as the main pipeline alternative

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Supply Chain Response With Canadian crude assets traversing

a complex, closely regulated and

shifting supply chain, what can the

industry do to effectively manage

the risks? Any process based on

spreadsheets won’t be up to the task.

Even integrated with a data

management system, spreadsheets

cannot keep up with the moment-

to-moment churn of data required to

adequately manage activity and make

good decisions.

How much inventory is at risk,

where energy assets stand at any

given time and the associated capital

commitments, all need to traceable

down to the carload -- this is literally

where the rubber meets the road.

Unless your systems and business

processes embrace the real-time,

buy-sell-trade environment in energy,

you will be hard pressed to react

quickly enough when the real risks of

Canadian crude positions raise their

head.

Supply chain executives need to

build a robust capability that can

handle risk data efficiently. That

should entail display in a dashboard

format for quick evaluation, and

integration of all the necessary

partner and reporting data points.

Maps, schematics, and trending

data need to be presented

graphically, with quick summaries

of all active positions, assets and

related histories. Given the shift

to mobile working and bring your

own device (BYOD), all the better

if information can be accessed

across the full range of devices and

operating systems today’s supply

chain managers use to conduct

business.

Here are a few key questions to

help evaluate whether your current

risk management systems and

processes are ready for the impact

of Canadian crude:

•How long does it take to pinpoint

your energy positions?

•Do you have reliable inventory

numbers at the end of each day?

•Are your invoices often delayed?

•Do you have difficulty determining

Crude storage

LOGIST ICS

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the market value of your energy

portfolio at the close of business?

If the answer to most of these is

‘yes’, it may be time to revisit your IT

investments. There are solid energy

trading and risk management options

to choose from, solutions designed

specifically for risk managing the

physical and financial aspects of the

energy supply chain; from contracts,

physical logistics, and transactions; to

accounting and reporting.

America’s appetite for energy

is not diminishing. As supply lines

for Canadian crude stretch across

modalities, borders, time zones,

weather patterns, regulatory regimes

and market conditions, the ability to

monitor assets from the wellhead to

the marketplace is critical.

Successful energy supply chain

risk management will help managers

capture the details of every Canadian

crude purchase down to the penny,

from the front office to the back.

Supply chain executives need to build a robust capability that can handle risk data efficiently

Page 14: Supply Chain Digital - October 2014

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Written by: Damian Pike, VP for Innovation & Transformation at DHL Supply Chain

DHL Supply Chain shares its vision for the futureAs new technology emerges faster than ever, the supply chain needs to evolve and change its priorities. Damian Pike, VP for Innovation & Transformation at DHL Supply Chain, explains some of the trends we are likely to see in the near future

SUPPLY CHAIN MANAGEMENT

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DHL Supply Chain shares its vision for the future

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1 6 O c t o b e r 2 0 1 4

FOR THE past five years, we have

witnessed social media-led changes

in what customers want, and what

businesses have developed. The next

few years will only see accelerated

changes in the way products are

delivered; instead of businesses

dictating the range, volume, channel

and services that are provided, they

will be led by their customers who

will determine how, when and what is

provided; pull rather than push.

Upgrading your phone is one

example. As a customer is walking

past a mobile phone store, their watch

will alert them that their phone is due

for renewal. The customer will do

some initial research on the commute

home on their mobile, then later design

their own phone cover, specification

and set up.

However, should they change their

DHL Supply Chain continues to be at the forefront of the logistics industry

SUPPLY CHAIN MANAGEMENT

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mind the next day, they visit the retail

store to make some adjustments.

Happy with their choice, they submit

an order and their device is then

configured and sent from the factory

to their home.

Addressing these challenges is

paramount and is increasingly leading

to a shift in focus, from ‘what the

product is’ to ‘why the purchase is

being made.’ There are often only a

few stages of a product’s life cycle

where personalisation can be added

and the supply chain has an important

role in helping retailers; phone shops

for example meet these changes in

demand.

Flexibility in the supply chain

operation is required to adapt

to this and allow products to be

stored in a ‘vanilla’ state before they

are customised. Building on this,

personalisation can be extended to

the packaging of a product and supply

chains will again need to adapt their

operations to take this into account.

‘ The next few years will only see accelerated changes in the way products are delivered….they will be led by their customers who will determine how, when and what is provided; pull rather than push’

DHL Supply Chain continues to be at the forefront of the logistics industry

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1 8 O c t o b e r 2 0 1 4

However, in the next three years the

information that is collected about

customers and products across

different channels will be shared and

aggregated across regions. This

insight will lead to better product

development processes, lower

cost supply chains, aggregated

procurement and standardised

Omni-channel goes globalWe will move beyond current IT

constraints, and distinctions between

how a product is bought whether

in store, online or via an app will

disappear. Crossover will be more

apparent, so if a customer buys online

and needs support for example, they

can receive it in-store.

SUPPLY CHAIN MANAGEMENT

Page 19: Supply Chain Digital - October 2014

D H L S U P P LY C H A I N S H A R E S I T S V I S I O N

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experiences, tailored locally.

The key enabler to make this

happen will be the move to European

structures for demand management,

procurement and the supply chain,

which will mean having a top-level

overseeing team rather than one at

grass level so a European team rather

than country level.

We are already seeing this trend

in consumer electronics and mobile

network operators, and it is likely to be

a standard structure in the next three

years.

Collaboration comes of ageTo stay ahead of the game, businesses

will use their customer, product

and operational insight to drive

collaboration with manufacturers,

distributors, enablers and across

industries, creating new opportunities

‘The information that is collected about customers and products across different channels will be shared and aggregated across regions. This insight will lead to better product development processes, lower cost supply chains, aggregated procurement and standardised experiences’

Omni-channel technology will lead to better product development processes and lower cost supply chains

Page 20: Supply Chain Digital - October 2014

2 0 O c t o b e r 2 0 1 4

‘To stay ahead of the game, businesses will use their customer, product and operational insight to drive collaboration with manufacturers, distributors, enablers and across industries’

is a growing expectation that products

will be delivered when they want and

to where they are, even if they are on

the move.

We’re seeing delivery options being

expanded to suit the customer’s

requirements; for example, jog-post

and drop-boxes and the customer’s

ability to bundle all their purchases

into one delivery slot will become

standard.

The dominance of e-commerce has

and new accountability.

All this will require changes in

demand planning and inventory

management, with supply chain

opening the door to a vendor-

managed inventory process (VMI)

where the product is only ‘owned’ the

instant before sales.

With customers having more

access to information and greater

transparency with tracking technology

and stock checking functionality, there

Long-distance logistics has never been more accessible

SUPPLY CHAIN MANAGEMENT

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2 1

meant that the delivery process is now

a key part of the customer’s overall

experience. Advancements in delivery

have seen click and collect sites

become more popular and delivery

windows becoming more precise.

It is likely that further personalisation

of the delivery process will be

introduced to make it even more

convenient for customers.

The high street will see increasing

consolidation and the supply chain

will need to manage increased

product portfolios. With the increasing

development in machine-to-machine

technology (M2M), so new challenges

will arise to configure and support

enabled devices.

After-sales support and training will

become ‘over the shoulder’, available

any time, anyhow and anywhere

and will be paramount to drive down

returns.

The changes we will see in the next

few years will be led by increased

expectations of the customer. This

opens the door for supply chains

to work even closer with marketing

and other functions, breaking down

traditional barriers and opening the

door to a brave new world.

DHL warehouse

Page 22: Supply Chain Digital - October 2014

2 2 A u g u s t 2 0 1 4

There are four important steps for procurement professionals to go through when arranging a fixed price contract. Here, Kevin Knowles details them and gives us an overview of strategic sourcing

Negotiating successful fixed price packages

W R ITTE N BY: K E V I N K N O W LE S , M A N AG I N G PA RTN E R AT C AV E N D I S H W O O D

PROCUREMENT

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2 4 O c t o b e r 2 0 1 4

PROCUREMENT PLAYS AN important role in casting a critical eye

over large contracts and purchasing

decisions before they are made,

ensuring the business gets a good

deal. However, there is an opportunity

for procurement to become more of

a strategic partner to the business,

which can help it deliver increased

value for money spent.

The procurement process often

focuses on reducing cost, rather

than increasing value, which is

significantly different. As a result,

many procurement teams are doing

themselves and the business a

disservice.

Research by the MCA found that

senior procurement professionals

said they could increase the value of

their management consultancy spend

by 36 percent if they had a clearer

definition of business needs and

project scope.

Getting closer to the business

objectives could really be a win-win

situation for both the procurement

department and the business and

allow procurement teams to achieve

the best value goods and services for

the business.

One facet of securing services

on a project is how the company is

actually billed for it. Time and material

contracts, where an organisation pays

for the hours a consultant works on

a project, dominate how services are

procured. But they are not the only

way to hire consultants; there is also

the option of fixed price contracts.

These can bring confidence and

certainty to procurement as it’s

established up front how much a

project will cost and what the business

will be getting for this price. But they

must be handled in a different way to

time and material contracts.

Ask the right questionsProcurement needs to work closely

with the business to understand the

scope of the project

and what the business

is trying to achieve.

By putting together

a clear brief with the

business, they will be

able to communicate more

effectively with the supplier

and ensure that the supplier is

well placed to achieve what the

business is looking for.

It’s also important to find a

supplier who has experience in the

PROCUREMENT

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2 5

sector and type of project being

tendered. This way they will

know the pitfalls and issues that

might come up during the project

and be able to advise and price

accurately. So establish what

relevant previous experience

they have and what they can

bring to the table.

“There is an opportunity

for procurement to become more of a

strategic partner to the business, which can help it deliver

increased value for money spent”

Page 26: Supply Chain Digital - October 2014

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Set up for successTo get the most from a supplier on a

fixed price contract the relationship

must be a two way street of

cooperation. All contractors and

consultants are to some degree

dependent on the client resource to be

able to do a good job.

There must be regular meetings

scheduled between each side where

they can get together and address

any issues before they become big

problems. Things don’t always go to

plan and having regular contact and

building the relationship means that it

is easier for each side to work together

to make the project a success.

Break a project downFixed price projects are generally

only feasible up to a value of around

£100,000, above this price and the size

of the project means that there are too

many unknowns to be able to price

accurately.

But most projects can be broken

down into smaller chunks that can be

successfully managed with a fixed

price contract. A good supplier will be

able to advise the best way to do this

PROCUREMENT

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N E G O T I AT I N G S U C C E S S F U L F I X E D P R I C E P A C K A G E S

and the milestones that are important

to each project.

Set the objectives and deliverablesWorking more closely with the

business takes procurement in the

right direction when it comes to setting

objectives and deliverables, as this is

not something they can do in isolation.

Procurement and the business need

to work together to establish who is

responsible for each of the deliverables

and exactly what is being purchased.

It may initially be intimidating for

procurement professionals to explore

new methods of increasing value,

instead of simply negotiating lower

rates for time and material contracts.

But exploring the use of fixed price

contracts can be an excellent way

to increase procurement’s strategic

involvement in the business. Fixed

price contracts mean that procurement

gains a more in-depth understanding

of the business needs, which they

can then use to increase value from

suppliers.

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How Cloud Computing can reshape your business

W R ITTE N BY: SA M J E R MY

With a greater amount of collaboration, various cloud platforms and

applications can help further improve supply chain performance

TECHNOLOGY

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WHEN YOU FLIP open your laptop

or log on to your PC at the start of

another business day, do you sign into

a Hotmail account?

When you are looking for the nearest

place to eat, do you ask Siri? And

when you have finished work for the

weekend and want to watch some

cosy film, do you turn to Netflix?

If the answer to any of these

questions is yes, then you have been

the beneficiary of cloud computing in

one form or another. But what exactly

does cloud computing technology

offer the supply chain sector and what

are the direct benefits?

According to the US

National Institute of

Standards and Technology

(NIST) cloud computing

is a model for enabling

ubiquitous, convenient,

on-demand network

access to a shared

pool of computing

resources such as

networks, servers,

storage, applications,

and services that

can be rapidly provisioned

and released with minimal

management effort or service

provider interaction.

In other words, this means that

Cloud takes away the need to invest

in the building of hardware, installing

software, or paying dedicated

software license fees; a bonus for any

c-level executive, not just those within

the supply chain.

As a result, cloud-friendly supply

chain strategies such as Spare

Parts Management, Transportation

Management Systems (TMS), Sales

and Operations Planning (S&OP) and

Store Shelf Optimisations are ready

and primed to take advantage and can

realise the network effect.

The most standout and

appealing features of cloud

computing which will directly

benefit the supply chain

are the speed of access

to IT resources and the

increase in storage

capabilities, making

the supply chain

much more agile.

It also means

the subsequent

improved visibility to

statistics and data will

make a supply chain more

proactive and responsive, and

TECHNOLOGY

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3 1

the enhanced levels of multi-level

collaboration with suppliers, clients

and business partners make supply

chains more efficient.

Cloud-based technology provides

one place where managers can

go to monitor critical supply-chain

events. When an element is updated,

everybody gets the information.

That element of sharing is what

distinguishes the cloud from more

traditional means of centralising data.

All relevant data is held in one place.

When broken down like this, the

‘The most standout and appealing features of cloud computing which will directly benefit the supply chain are the speed of access to IT resources and the increase in storage capabilities, making the supply chain much more agile’

Cloud computing’s speed of access to IT resources is pretty convincing

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“Recent technology and social connectivity trends have created a perfect storm of opportunity for companies to embrace the power of cloud to optimise, innovate and disrupt business models”

TECHNOLOGY

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3 3

C L O U D C O M P U T I N G

potential for major corporations to

benefit from the cloud is clear to see.

Major container shipping companies

or truck haulage firms for instance,

could use the technology to optimise

efficiency of cargo control and

visibility, therefore improving the

quality of service to the end user.

Cloud capabilities offer numerous

opportunities to drive business

innovation when managed effectively.

Recent technology and social

connectivity trends have created

a perfect storm of opportunity for

companies to embrace the power

of cloud to optimise, innovate and

disrupt business models.

Optimisers use cloud to

incrementally enhance their

customer value propositions

while improving their

organisation’s efficiency.

Innovators significantly

improve customer value

through cloud adoption,

resulting in new revenue

streams or even changing their

role within an existing industry

ecosystem.

Thirdly, disruptors rely

on cloud to create

radically different value

propositions, as well as generate new

customer needs, segments and even

new industry value chains.

Cloud delivery models can help

organisations scale their investments

as they grow their business. They can

also open the door to new business

approaches through standardised

applications, infrastructure, testing

environments and business processes

that help improve service delivery and

efficiency.

Forward thinking supply chain

executives would do well to take

advantage of transferring

operations to the cloud, because

this would free up capital

otherwise used in investing

in hardware capabilities.

It is looking increasingly

likely the supply chain will

become more proactive

towards cloud computing

technology.

For further cloud news, read: http://www.washingtonpost.com/blogs/

innovations/wp/2014/09/15/four-disruptive-start-ups-in-enterprise-cloud-computing/

Page 34: Supply Chain Digital - October 2014

TOP 10

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3 5

TOP10

3 5

W R ITTE N BY: SA M J E R MY

With a plethora of trucking companies sprawled across the globe, it can be hard to know which companies are worth their

salt and which just talk a good game. Here, we select our best ten

Trucking Companies

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3 6 O c t o b e r 2 0 1 4

TOP 10

10 Ryder System

A healthy revenue of $6.4 billion ensures Ryder System makes the cut. With headquarters in Miami, it also covers much of North America, Europe and Asia. The company has been going strong for more than 80 years and is most famous for its fleet management business.

09 Saia

With market capital of $1.17 billion, Saia takes its rightful place in the top 10. Over 25,000 shipments are made daily to USA, including Alaska and Hawaii; Canada, Mexico, and Puerto Rico and the LTL has more than 8,000 dedicated employees to take care of that.

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08 Werner Enterprises

Werner Enterprises, Inc. was founded in 1956 and is a premier transportation and logistics company, with coverage throughout North America, Asia, Europe, South America, Africa and Australia. Werner maintains its global headquarters in Omaha, Nebraska and maintains offices in the United States, Canada, Mexico, China and Australia. The company has market capital of $1.79 billion.

07 Schneider National

Another North American on our top trucking list, which is hardly surprising given the market share in this region. Schneider National operates in the USA, Mexico and Canada and has a market capital of $3.5 billion and owns more than 10,000 trucks. That is a lot of trucks.

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TOP 10

06C.H Robinson Worldwide

CH Robinson provides freight transportation services to and logistics solutions to companies through a network of branch offices in North America, Europe, Asia, South America, and the Middle East. An impressive number 86 on the Forbes 2000 list, mainly due to its $12.75 billion sales and $7.69 billion market capital, CH Robinson is another trucking big hitter.

05 FedEx Freight

Again, like its competitors UPS, the global brand of FedEx has its own trucking arm, and it is doing very well too. With $356 million of revenue in the division alone, and with the clout of the wider conglomerate behind it, there is every reason to believe FedEx Freight will continue to expand and at least consolidate in the middle of our list.

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04 UPS Freight

The Less-than-truckload division of United Parcel Service of North America, the company with the easily recognisable brown vehicles score highly in terms of trucking. The acquisition of Overnite Transportation and its subsidiary for $1.25 billion in 2005 goes to show UPS will remain a global player in the trucking industry.

03 DSV

A real European heavyweight of the transport service companies, Danish born DSV was always going to make the upper echelons of our list with sales of over $8 billion. Although it also has DSV Air and Sea, and DSV Solutions, the road division is no shrinking violet; it has over 10,000 employees overseeing 17,000 trucks that deliver to 34 different European countries.

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02 Nippon Express

Japanese based Nippon rank very highly on the top trucking companies list. Founded in 1937 and headquartered in Tokyo, the company now boasts sales of $17.29 billion, market capital

of $5.03 billion and has nearly 65,000 employees. The group is made up of Distribution and Transportation, Goods Sales, and a division named ‘Other’ which currently consists of real estate, money lending, research, automobile, and employee dispatching businesses.

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T R U C K I N G C O M P A N I E S

4 1

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TOP 10

01J.B Hunt Transport Services

J.B. Hunt Transport is one of the largest transportation logistics companies in not only North America, but the world, and is providing services throughout United States, Mexico and Canada. Incorporated in Arkansas in 1961, it has been a publicly held company since its IPO in 1983.

With market capital of $8.56 billion, $5.59 billion in sales and 18,467 employees; JB Hunt is a truly giant trucking brand. The organisation operates through four segments: Intermodal, Dedicated Contract Services, JBT and Integrated Capacity Solutions.

It also has arrangements with most of the major North American rail carriers to transport truckload freight in containers and trailers. This approach of offering multiple services to a range of clients, some of which are Fortune 5000 companies, provides a significant competitive advantage within the industry and cements JB Hunt’s place at the trucking summit.

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T R U C K I N G C O M P A N I E S

4 3

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IBM Supply ChainTargets new areas to maximise future performanceWritten by: Sam Jermy Produced by: Craig Daniels

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IBM SUPPLY CHAIN

The IBM Service Parts Supply Chain is looking forward to future prosperity in spite of IBM’s strategy to focus

on business analytics, mobile and cloud technology. The Service Parts supply chain will continue to provide a full service parts planning and delivery operation.

The IBM Service Parts Supply Chain business unit in the Europe Middle East and Africa (EMEA) region currently presides over more than 55 countries, controlling service parts supply chain from its central location in Europe and the wider group continues to be a truly global leader in IT with multi-billion dollar revenues. 

The International Business Machines Corporation (IBM) has a famous track record of innovations, with the likes of the Mainframe large computer systems and the Power Systems, a Power Architecture-based server line, and its storage brand to name three.

Jaap Hazewinkel, who joined the group nearly 25 years ago, is currently the Manager of Planning and delivery in EMEA as well as the Worldwide Service Parts Operation Inventory Manager.

He said: “These brands are still strategic to IBM and the company is further innovating. For instance Watson, our intelligent machine, in 2011 beat human experts on the TV quiz “Jeopardy”, and its architecture is now further developed to build machines that excel in business analytics.

“We continue to play in the hardware area

The illustrious brand has long been synonymous with being a traditional IT company, but now the group is shifting some of its focus to take advantage of new technologies and innovations

TV quiz “Jeopardy”

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S U P P LY C H A I NIBM SUPPLY CHAIN

www.ibm.com/software/products/en/category/supply-chain-management 4 7

but it really is on the high value end. So moving out from that side of things is of course a challenging environment but IBM is investing in new technologies such as cloud, analytics, mobile, social and security and it is up to us to find solutions in smarter ways. That is a real challenge but it is one we relish and we are confident of continuously improving each year.”

IBM is still managing the Service Parts Supply Chain for the Intel based server brand that is being sold to Lenovo and for the Lenovo Think brands. These are important functions to the firm, but it is also open to managing and working with other clients who have a service supply chain.

The service parts operations transferred from Paris to the Netherlands in 1987 and

“We continue to play in the hardware area….but IBM is investing in new technologies such as cloud, analytics, mobile, social and security and it is up to us to find solutions in smarter ways”– Jaap Hazewinkel

The service parts operations transferred from Paris to the Netherlands in 1987

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www.k314.us
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www.k314.us
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SUPPLIER PROFILE

K314

K314: Manufacturing and Aftermarket Services

Founded in 2011, K314 combines the skills and managerial experience in global EMS of the former IBM Vimercate (Italy) plant. K314 proves that a small yet well structured company, through expertise and flexibility can satisfy the needs of those looking for worldwide support from a European EMS provider. Global is all about attitude and experience, not geography. This is a key principle on which K314 is founded. The K314 team is made up of professionals whose knowledge comes from diversified experiences in several countries. This shared experience is a cultural heritage. K314 achieves excellent financial results while delivering the highest possible standards. With locations in Italy and Serbia, K314 offers the best of Europe in capability, logistics and costs.

K314 is specialized in low to medium volume and high mix, using the most modern manufacturing processes integrated with the IT of the customer. A specific Aftermarket division carries out repair and refurbish of complex systems, for companies such as IBM and Cisco as well as many others. K314 belongs to a network of companies able to offer Design Service and Test Development support, with customers such as ST Microelectronics benefitting. The newest expansion, by the acquisition of Orpro Vision (formerly the Assembly Division of Orbotech), adds Optical Inspection solutions to this network. With these connections K314 is a skilled enterprise able to support a broad spectrum of needs in the electronics industry.

K314: Simplify your life!

Website: www.k314.us

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E U R O P EIBM SUPPLY CHAIN

www.ibm.com/software/products/en/category/supply-chain-management 5 1

the main warehouse now resides in Venlo, in the east of the country. The managing business unit remains in Amsterdam where it centrally oversees the entire EMEA region. In Hungary it has a country planning team and repair vendor management, and it has a buffer planning team in India. Reutilisation of parts is one of IBM’s key strengths.

Shifting focus In the past decade IBM’s changing strategy has seen it sell its PC brand to Lenovo, printer editions to Ricoh and more recently its retail storage solutions to Toshiba last year. But the amount of countries it serves in regards to maintenance services has continued to increase, with Nigeria and Kenya being recent stock locations added to the EMEA portfolio.

The company has also completely consolidated the management of its warehousing and transportation by subcontracting this to Geodis. It is the sole lead logistics provider for IBM by managing logistics costs supporting the finished goods distribution, asset recovery services, as well as service parts logistics worldwide.

Laurens Neomagus, who is Global Parts & Logistics Process Owner for Multi-Vendor Support, said: “We have outsourced warehousing and transportation almost completely to third party suppliers through Geodis. We still have all the applications, they run

Key PersonnelJaap HazewinkelManager of Planning & Serviceability Worldwide EMEA Inventory Management and Worldwide Service Parts Operation Inventory Manager

After completing his study of Computer Science at the Technical University in Delft, Jaap joined IBM in the area of developing the systems used in managing service parts. After an assigment in Paris, Jaap moved into the operational management of the Service Parts Supply Chain

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IBM SUPPLY CHAIN

them or we are integrated into their applications.“We do also support non-IBM brands;

if a company was having an IBM machine installed at their premises we would also offer to take up the support of the other machines as well. We are strong in support of networking Hardware, as connectivity is key to our clients’ business. On the maintenance side, a client wants a one-stop-shop.

“The support structure can be either in the way we support IBM machines via the IBM network but we are also looking for alternative support models using third parties to deliver the service on our behalf. In these models, inventory can be either in the IBM network or in the third party network. The decision on how to support a specific brand is made in full

IBM Supply Chain is also

looking for alternative

support models using

third parties to deliver

service on its behalf

Technician

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E U R O P E

www.ibm.com/software/products/en/category/supply-chain-management 5 3

IBM SUPPLY CHAIN

conjunction with sales and offering, service planning and global parts procurement.

“Not only technology but also healthcare, automotive and mobile are areas we want to grow into. But we want to grow without the additional cost so we do our best to find the most cost effective solutions.”

Having a global organisation that is able to be globally accountable for performance is one of the key strengths IBM has. Maintenance revenue growth is largely in the non-IBM machine support today and that is where IBM really focuses right now. IBM supports complete infrastructures for clients that don’t want to manage the service parts themselves.

Neomagus added: “If you are looking for a player that can support customers on a global

Key PersonnelLaurens NeomagusGlobal Parts & Logistics Process Owner for Multi-Vendor Support

Global Process Owner for Multi-vendor Spare parts support, working for IBM nearly 15 years. During these years he worked in different supply chain management roles within planning and inventory management. In the last two years he made the shift to growing the support of Multi-vendor business.

In 1994 he graduated from the study Business Logistics at Hogeschool Venlo and finished the study Business Administration at the University of Nijmegen in 1997. Throughout the last couple of years he has been active in logistic discussions with other companies and supporting students to complete their master thesis from the University of Twente

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IBM SUPPLY CHAIN

reach and understands the spare parts needs of customers in each of those countries, then IBM has a lot of expertise in that area.”

Technological futureThe environment which companies such as IBM operate in will change dramatically because of the technological advancements that are currently afoot. Currently IBM knows all customers’ locations it may have to support 24/7 are spread over a country; this will change with the evolvement of cloud technology that will result in a concentration of hardware in a couple of big data centres.

“Customers won’t have their own infrastructure anymore and that may significantly affect how we are organised in five years’ time.” Hazewinkel said.

“For example, a mainframe may have a parts issue and to get it back to being fully fault

“The cloud is not creating a challenge, it makes life easier from a logistics viewpoint...Having full tolerance cloud computing technology on our side is a definite benefit”– Jaap Hazewinkel

Cloud services are the future

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E U R O P E

www.ibm.com/software/products/en/category/supply-chain-management 5 5

IBM SUPPLY CHAIN

tolerant, the client requires the part as soon as possible, but you are not allowed to bring the machine down until 2300 hrs Saturday evening as it will affect their business. So you can only take it down at that point, fix it and bring it back up to being operational again.

“The cloud is not creating a challenge, it makes life easier from a logistics viewpoint. We do have challenges in the international environment in terms of regulations, import/exports controls and so on. But having full tolerance cloud computing technology on our side is a definite benefit.”

In the near future IBM Supply Chain believes there will be a lot of focus on spare parts and in order to get a business up and running each company needs to invest for these kind of requirements. Hazewinkel and Neomagus agree the key is to collaborating and making partnerships.

New innovations for IBM include the commodity-based lifecycle forecasting which involves spare part usage and intelligent calculations. It determines where in the lifecycle a machine is and then plans how the demand of the part is likely to evolve over the next two years and in case of Last Time Buys over the remainder of the life cycle, possibly resulting in less inventory and a more proactive approach.

Now it seems IBM are well placed to imprint its synonymous brand into new realms, just as it has with more traditional components for more than a century.

Company Information

I N D U S T R Y

Supply Chain

H E A D Q UA R T E R S

Amsterdam,

Netherlands

F O U N D E D

1911

E M P LOY E E S

431.212

(IBM Annual Report 2013)

R E V E N U E

$99,751 mio USD

(IBM Annual Report 2013)

P R O D U C T S /

S E R V I C E S

IT Services, spare part

services

Page 56: Supply Chain Digital - October 2014

Knapp AB:Driving Warehousing InnovationWritten by: Joel Levy Produced by: Craig Daniels

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KNAPP AB

K NAPP AB continues to build on its strong position in the Scandinavian market and enhance its reputation as an innovative

warehousing industry leader.Based on its forward-thinking spirit and

skilled, motivated workforce, Managing Director Benny Thögersen is confident the company will continue to strengthen and expand, with a clear strategy to double turnover as part of its 2020 growth plan.

“Back in 2008, KNAPP was not very well recognised on the Scandinavian market. Nowadays all the major players in our industries know us,” he said.

The Swedish company, formerly Moving AB, was acquired in 2008 by KNAPP, which was attracted to the former’s innovative systems and conveyor programme, as well as its Scandinavian customer-base built over a 39-year history.

Thögersen said: “Leading up to the acquisition, Moving had a quite aggressive business plan. In the late ‘90s through 2000s we entered the system integration market and delivered some very large projects, one of the flagships of which was Clas Ohlsson: a £40-£50m installation.

“We had some Class 15 mini-load installations in Scandinavia as well as the UK and one in the US. So we had a period of growth where we became the challenger in the market.”

As KNAPP AB, the company has gone from challenger to established player, providing a crucial role within the group, based on four pillars.

Its class-leading solutions saw Swedish company Moving AB acquired by KNAPP in 2008, and the company has continued to set the industry standard since

Racking system

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S U P P LY C H A I N

www.knapp-mov ing .se 5 9

KNAPP AB

Class O Sortering

It is a production entity for pallet and light-good conveyors; producer in Sweden of designs and solutions for small-medium complexity (SMC) systems; component sales provider; and runs a strong customer service team which promptly supplies spare parts and other services to clients where required. Delivery shoot

Page 60: Supply Chain Digital - October 2014

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Page 61: Supply Chain Digital - October 2014

KNAPP AB E U R O P E

www.knapp-mov ing .se 6 1

Though KNAPP AB is responsible for local acquisitions for KNAPP’s large-scale integrated projects, The MD sees SMC work as a crucial part of the business.

He said: “We see a gap in the market for these smaller scale, less complex projects: £100,000 to £2m, a field that the really large players are not eager to take projects in. But sometimes it is better to take those. Within the KNAPP group we aim to be a fast-moving, agile, responsive company with very short delivery times to quote and execute this kind of project.

“Delivery time is so important, because customers can get a return on investment quickly, meaning they get better savings. The decision processes within the company are much faster than a few years ago.”

Market-leading technologyFor years, KNAPP AB has set the market standard for conveyor systems, and that it continues to do so is all the more important with the major international players now present in Scandinavia.

The company’s invented pick solution, the OSR shuttle-based technology for storage and retrieval- has revolutionised infralogistics, and proven invaluable to its large customer-bases in the pharma, fashion and e-commerce sectors.

The OSR Shuttle is a high-performance, versatile and reliable semi-automatic picking and storage system that forms the heart of the company’s warehouses.

Key Personnel Benny ThögersenManaging Director

“Delivery time is so important, because customers can get a return on investment quickly, meaning they get better savings. The decision processes within the company are much faster than a few years ago”– Benny Thögersen, Managing Director

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KNAPP AB

It is extremely safe and stable, able to be operated both in earthquake zones and on mezzanines, and is highly energy-efficient, achieving excellent sustainability through optimal adjustment of the control system, low empty weight, brake energy recuperation and efficient handling of all processes via the KiSoft SRC software.

KNAPP has installed more than 150 such systems, which are compact and help save space in a busy warehouse while allowing for future expansion.

Thögersen explained: “By using OSR as a backbone in the system you can fulfil many different operations, not only picking but also value-added services, dispatch sorting and highly efficient return handling. With this shuttle-based technology, we can simplify the concept and the solution itself. It creates very robust and flexible solutions.

“For example, if we have a change in order or SKU structure, you don’t have to make any major rearrangements. We could cope with that situation by having one type of technical solution for doing the job.

“We have evolved this technology over 12 or 13 years and can now really gain on the flexibility and speed of the shuttle to create systems with very low complexity but are at the same time robust.”

PharmaPharma is a sector in which KNAPP particularly

“We are also very strong in the spare part logistics; serving the customers including Mekonomen and MECA”– Benny Thögersen

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S U P P LY C H A I N

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KNAPP AB

Racking systems

excels, establishing itself as a class-leader with its warehousing innovations. It has installations at all the major market players in Scandinavia, and last year installed a picking and handling system for food retailer ICA’s store-in-store pharmacy facilities.

Also a leader in fashion, ecommerce, and multi-channel business, KNAPP AB’s knowledge and solutions make it well placed to handle larger and integrated projects.

KNAPP AB enjoys an outstanding reputation in retail, serving high-profile clients such as Clas Ohlson, having worked with the hardware chain since 2,000.

Thögersen said: “The installation there is, I think, the largest warehouse in Scandinavia by volume. We have 23 pallet-stacker cranes there, 16 mini-loads and a comprehensive palette and light goods conveyance system. We have a very close relationship, and in partnership have more

Robot palletizing

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KNAPP AB

or less developed their infralogistics.“We are very also strong in the spare

part logistics; serving customers including Mekonomen and ECA.”

Vision technologyTrue to form, the company also leads in vision technology, where its approach is to build quality into the process itself, rather than running checks after a task is completed, eliminating error. This technology identifies products in real-time, using barcode or visual recognition, ensuring the correct items are picked.

Thögersen said: “The A-frame ejects the products to a central belt which transports it to tote, and when the products are dropping in you also have the vision system, which takes pictures in real-time and recognises all the products. So you know the customer’s products are there and can say with 100 percent accuracy that you have the correct product.”

“It is important to have trust and belief in your employees. I have applied an ‘outside-in’ way of thinking where we are driven by and adapt to the market and the customers”– Benny Thögersen

OSR Shuttle

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E U R O P E

www.knapp-mov ing .se 6 5

KNAPP AB

StaffThis attention to detail and commitment to accuracy is mirrored by the mentality of KNAPP AB’s 70-strong workforce, and instilling an even greater sense of pride in performance has been key to Thögersen’s improvement strategy since his appointment in 2013.

Having gained extensive supply chain experience in various roles, the new MD set to enhancing the working environment and opportunities for KNAPP AB’s 75 staff, applying a style of leadership based on his passion for sports management.

“It is important to have trust and belief in your employees,” he said. “I have applied an ‘outside-in’ way of thinking where we are driven by and adapt to the market and the customers.”

Customer service has been a focus area, with the service technician personnel increased fivefold and further growth planned. “If things go in the right direction we will double that team in three years,” Thögersen said.

“In trying to be an agile company, we get very motivated, committed people, and this is something we have improved in the last couple of years. No-one has quit the company in the last year; in fact three or four key people have actually returned.”

As it continues to innovate, motivate and set the standard as a flexible, responsive company, attracting and retaining the industry’s best talent, KNAPP AB can be confident that its ambitious goals are well within reach.

Company Information

I N D U S T RY

Supply Chain

H E A D Q U A RT E R S

Astorp, Sweden

F O U N D E D

1969

E M P L O Y E E S

75

R E V E N U E

Not disclosed

P R O D U C T S /

S E R V I C E S

Warehousing

Page 66: Supply Chain Digital - October 2014

Hala Supply Chain Services to Strengthen Saudi Core as Growth Hits Double Digits Year-on-Year Written by: Tom Wadlow Produced by: Craig Daniels

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HALA SUPPLY CHAIN SERVICES

Hala Supply Chain Services strives for continuous improvement across its range of industries in Saudi

Arabia, as demonstrated by its commitment to building a new 36,000 square-metre warehouse at its flagship hub in Jeddah.

Having been named 15th fastest-growing company in the Kingdom in 2009 and currently achieving double digit growth year-on-year, it is looking to build on impressive work with big name clients including SABIC, Saudi Aramco, Burberry and MG Cars.

Hala SCS prides itself on adding true value to businesses by offering a complete supply chain package, the demand for which prompted its shareholders to form this specialist subsidiary in 2003.

This value is to be further enhanced by the development of a comprehensive IT solution

The customised solutions provider is adding a state of the art warehouse to its Kingdom-wide network and developing all-encompassing monitoring systems as it looks to build on its numerous successes across a range of sectors from Oil & Gas to FMCG

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HALA SUPPLY CHAIN SERVICES

that facilitates enhanced visibility across entire supply chains, combining existing clearance, transport management and warehouse systems.

Chief Executive Officer Pieter Spaarwater added: “We want to make companies see their supply chains and logistics functions as a competitive advantage rather than -a cost centre. We do this through building collaborative partnerships and customised solutions to suit individual client needs.”

Bolstering Jeddah Hala SCS warehouse capacity includes 15 warehouses across 12 localities in Saudi Arabia, with the company carrying out clearance and forwarding work from airports, sea ports and dry ports, its main hubs comprising Riyadh, Dammam and, most importantly, Jeddah on the

“We want to make companies see their supply chains and logistics functions as more of a competitive advantage rather than just a cost centre”– Pieter Spaarwater, CEO

Hala’s warehouse service offering for Foodstuff and Pharmaceuticals

comply with all the stringent quality requirements and certifications

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HALA SUPPLY CHAIN SERVICES

Red Sea where the new warehouse is earmarked. “With the site secured and the design phase

underway, construction will be complete by the end of the year,” Spaarwater said.

“The site will house products from our main industries including oil and gas, automotive, FMCG, pharmaceuticals, energy/mining, documents and dangerous goods, including frozen and temperature controlled facilities.

“This is another example of how Hala SCS adds value: we help clients to select strategic sites and facilitate the outsourcing of the design process, depending on the products being housed.”

Hala SCS has also acquired an 83,000 square-metre plot in Dammam which is set for a similar development once the new Jeddah warehouse becomes operational. Spaarwater added that Riyadh will eventually host a new warehouse as well.

Such improvements will allow the business to expand greatly on its existing capabilities. Currently it has access to 2,500 vehicles which take anywhere between 5,500 and 7,500 loads each month.

Portside, the company clears 200,000 tonnes of product annually, ably assisted by constructive partnerships with UTi and Hellmann Worldwide Logistics that help to extend its international reach.

Track record Showcasing the recent growth success is

Hala serves the

complete supply chain

for the automotive

industry to final

destination anywhere

in the Kingdom of

Saudi Arabia

Hala’s documentation

storage solutions

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HALA SUPPLY CHAIN SERVICES S U P P LY C H A I N

www.ha lagroup .com 7 1

a portfolio of recent work spanning many sectors which includes some big clients.

SABIC (Saudi Arabia Basic Industries Corporation), one of the largest companies in the Kingdom of Saudi Arabia, enlisted the services of Hala SCS around 18 months ago for its downstream initiative involving the manufacturing of rubber and plastic car components.

The company carried out the clearance work and set up the facility in quick time, a key factor for the government who instigated the scheme. It also distributes the products across the Kingdom.

In oil and gas, Hala SCS assisted Saudi Aramco in a petroleum research centre project. “This involved setting up a compound for the staff supporting the initiative, a site containing around 400 villas which we had to supply the kiting and fitments within tight

Number of permanent staff employed at the

company

300

Hala has a strong management team

Page 72: Supply Chain Digital - October 2014

HALA SUPPLY CHAIN SERVICES

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time constraints,” Spaarwater added. “We covered everything inside the villas,

from light fixtures and mirrors to furniture and cutlery, and all this was achieved within a strict temperature controlled environment.”

Further afield and in the retail arena, the company manages the route to market of Burberry products from the UK into Saudi Arabia, a customised agreement struck roughly 18 months ago.

Spaarwater continued: “From point of order in the UK to final store delivery it takes us a week which is quite an achievement considering the strict rules and regulations at customs in the Kingdom.

Hala’s warehouse

management system

is based on real

time and web based

transparency to clients

Page 73: Supply Chain Digital - October 2014

HALA SUPPLY CHAIN SERVICES M I D D L E E A S T

www.ha lagroup .com 7 3

“The products come in via air and it is very process-driven with timelines associated to every specific step within the journey. It has been a major success for us and showcases our drive for excellence in service efficiency.”

In the automotive space, Hala SCS manages the supply chain for six fully assembled models from MG Cars into the Kingdom, along with assisting crucial after sale service by provisioning spare parts. The company is also clearing, storing and delivering Kumho Tyres products at a strike rate in excess of 95 percent.

Process, People and Technology Already boasting an impressive track record, Hala SCS views continuous improvement with enormous importance, with process, people and technology at the heart of its mission statement.

On the technology side, improving supply chain visibility by integrating existing clearance, transport management and warehouse systems into one umbrella solution is a priority.

“This is something we are looking to continuously improve, especially on generating enhanced visibility to the client,” Spaarwater said. “It is one of IT’s ongoing projects and within the next year we will launch an optimised visibility solution.”

The system’s individual components already offer a large degree of visibility, with the company having been appointed by Descartes to operate its Roadshow route optimisation package.

“This involved setting up a compound for the staff supporting the initiative, a site containing around 400 villas which we had to supply the kiting and fitments within tight time constraints”– Pieter Spaarwater, CEO

Number of vehicles the

company has at its disposal

2,500

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7 4 O c t o b e r 2 0 1 4

“From point of order in the UK to final store delivery takes us a week which quite an achievement considering the strict rules and regulations at customs in the Kingdom”

– Pieter Spaarwater, CEO

Looking after its people, who ultimately make use of the technology and drive the processes, is also crucial. Hala SCS employs 300 permanent staff with seasonal temporary workers fluctuating through the year, and gauging both employee and customer feedback is something Spaarwater actively pursues.

He said: “We have an annual cultural audit which is carried out by independent consultants and our aim is to cultivate a positive ownership culture. This is supported by wide-ranging training opportunities for staff as a major component of human capital investment. We have on-the-job, internal classroom training and externally facilitated training, and our top performers are sponsored to attend

Pieter Spaarwater, CEO Hala Reception area

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M I D D L E E A S T

www.ha lagroup .com 7 5

Company Information

I N D U S T RY

Supply Chain

H E A D Q U A RT E R S

Kingdom of Saudi Arabia

F O U N D E D

2003

E M P L O Y E E S

300+

R E V E N U E

$90 million

P R O D U C T S /

S E R V I C E S

Logistics, Warehousing,

Forwarding, Clearance

internationally-recognised courses.”The company is also bringing in expertise to help

the workforce adapt to lean six sigma principles. Hala SCS, while proudly holding platinum

status in regards to its employment of Saudi nationals, is an extremely diverse organisation.

“Our environment is a microcosm of the cultures and nationalities within Saudi Arabia,” Spaarwater added. “In my team of reportees alone, I have a Belgian, South African, Indian, Pakistani, Jordanian and a Saudi national.”

Such diversity could well be translated into the company’s geographical remit in the coming years, for once it has consolidated its core Saudi operations the horizons may widen to incorporate other GCC countries.

Hala Reception area

Page 76: Supply Chain Digital - October 2014
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7 7

SKA International Group

Continues to raise the business profile of the toughest environments

Written by: Tom Wadlow Produced by: Craig Daniels

Page 78: Supply Chain Digital - October 2014

7 8 O c t o b e r 2 0 1 4

SKA INTERNATIONAL GROUP

SKA International Group is an expert in doing big business in difficult places, underlined by its $80-100 million

investment in a state-of-the-art fuel storage facility 20km upstream from the Iraqi coast, testament to more than 10 years’ experience of operating in the war-stricken country.

Having excelled in supplying and transporting fuel and equipment during the major US occupation years, the Dubai-based company, with more than 700 employees and turnover in excess of $500 million, is increasingly looking to oil and gas opportunities in Iraq and other countries across the Middle East and Africa with challenging circumstances.

SKA has significant ongoing investments in Somalia and Uganda, and is raising the profile of the Ras Al Khaimah International Airport in the UAE with a 10 year agreement, where it has built and operates an Aviation Fuel Storage Facility.

SKA’s capabilities include a wide range of fuel

Despite press coverage depicting the likes of Iraq and Somalia as notorious hotbeds of instability, the company is proving that commercial potential in such places can be extracted by offering vital fuel supply and logistics operations where many would turn and run

727 Freighter

Page 79: Supply Chain Digital - October 2014

S U P P LY C H A I N

www.ska-arab ia .com 7 9

SKA INTERNATIONAL GROUP

supply chain management services, aviation services, ground logistics, life support, facility construction, and security services.

Working as a good corporate citizen, and helping to develop business, people and communities while supporting charitable initiatives, lies at the heart of what CEO and President, and 100 percent owner Mike Douglas is vying to achieve.

“Despite the negative coverage of the countries we are in there is huge potential for development,” he said. “We are already changing that negative impression and a big part of what we do is give back to the communities we do business in.

Key Personnel Mike DouglasCEO and President

SKA Bedford Trucks in Mogadishu

Page 80: Supply Chain Digital - October 2014

Aggreko Middle East Ltd.PO Box 16875, Dubai, UAET: +9714 808 6100 F: +9714 883 1825

Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact

Kuwait City, Kuwait+965 23983648

Abu Dhabi, UAE+971 (0)2 5549494

Dammam, KSA +966 (0)13 8580301

Dubai, UAE +971 (0)4 8086100

Jeddah, KSA+966 (0)12 2727640

Sharjah, UAE+971 (0)6 5345999

Riyadh, KSA +966 (0)8 111005060

Muscat, Oman +968 (0)24 501872

Yanbu, KSA+966 (0)14 3963993

Doha, Qatar+974 44606178

Istanbul, Turkey+90 212 4652050

Manama, Bahrain+973 17723381

Providing Turn-key Rental Power Solutions to the Oil & Gas IndustryWhether you need temporary power for the operation of oilfields, the construction of platforms, early production, planned or emergency maintenance or loadtest of main power systems, Aggreko has the solution.

We offer full project planning, installation and commissioning, and 24/7 service maintenance.

Aggreko, Power Specialists in Oil & Gas

59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1 06/02/2014 12:55

Aggreko Middle East Ltd.PO Box 16875, Dubai, UAET: +9714 808 6100 F: +9714 883 1825

Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact

Kuwait City, Kuwait+965 23983648

Abu Dhabi, UAE+971 (0)2 5549494

Dammam, KSA +966 (0)13 8580301

Dubai, UAE +971 (0)4 8086100

Jeddah, KSA+966 (0)12 2727640

Sharjah, UAE+971 (0)6 5345999

Riyadh, KSA +966 (0)8 111005060

Muscat, Oman +968 (0)24 501872

Yanbu, KSA+966 (0)14 3963993

Doha, Qatar+974 44606178

Istanbul, Turkey+90 212 4652050

Manama, Bahrain+973 17723381

Providing Turn-key Rental Power Solutions to the Oil & Gas IndustryWhether you need temporary power for the operation of oilfields, the construction of platforms, early production, planned or emergency maintenance or loadtest of main power systems, Aggreko has the solution.

We offer full project planning, installation and commissioning, and 24/7 service maintenance.

Aggreko, Power Specialists in Oil & Gas

59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1 06/02/2014 12:55

Aggreko Middle East Ltd.PO Box 16875, Dubai, UAET: +9714 808 6100 F: +9714 883 1825

Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact

Kuwait City, Kuwait+965 23983648

Abu Dhabi, UAE+971 (0)2 5549494

Dammam, KSA +966 (0)13 8580301

Dubai, UAE +971 (0)4 8086100

Jeddah, KSA+966 (0)12 2727640

Sharjah, UAE+971 (0)6 5345999

Riyadh, KSA +966 (0)8 111005060

Muscat, Oman +968 (0)24 501872

Yanbu, KSA+966 (0)14 3963993

Doha, Qatar+974 44606178

Istanbul, Turkey+90 212 4652050

Manama, Bahrain+973 17723381

Providing Turn-key Rental Power Solutions to the Oil & Gas IndustryWhether you need temporary power for the operation of oilfields, the construction of platforms, early production, planned or emergency maintenance or loadtest of main power systems, Aggreko has the solution.

We offer full project planning, installation and commissioning, and 24/7 service maintenance.

Aggreko, Power Specialists in Oil & Gas

59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1 06/02/2014 12:55

Aggreko Middle East Ltd.PO Box 16875, Dubai, UAET: +9714 808 6100 F: +9714 883 1825

Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact

Kuwait City, Kuwait+965 23983648

Abu Dhabi, UAE+971 (0)2 5549494

Dammam, KSA +966 (0)13 8580301

Dubai, UAE +971 (0)4 8086100

Jeddah, KSA+966 (0)12 2727640

Sharjah, UAE+971 (0)6 5345999

Riyadh, KSA +966 (0)8 111005060

Muscat, Oman +968 (0)24 501872

Yanbu, KSA+966 (0)14 3963993

Doha, Qatar+974 44606178

Istanbul, Turkey+90 212 4652050

Manama, Bahrain+973 17723381

Providing Turn-key Rental Power Solutions to the Oil & Gas IndustryWhether you need temporary power for the operation of oilfields, the construction of platforms, early production, planned or emergency maintenance or loadtest of main power systems, Aggreko has the solution.

We offer full project planning, installation and commissioning, and 24/7 service maintenance.

Aggreko, Power Specialists in Oil & Gas

59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1 06/02/2014 12:55

Page 81: Supply Chain Digital - October 2014

SKA INTERNATIONAL

Aggreko Middle East Ltd.PO Box 16875, Dubai, UAET: +9714 808 6100 F: +9714 883 1825

Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact

Kuwait City, Kuwait+965 23983648

Abu Dhabi, UAE+971 (0)2 5549494

Dammam, KSA +966 (0)13 8580301

Dubai, UAE +971 (0)4 8086100

Jeddah, KSA+966 (0)12 2727640

Sharjah, UAE+971 (0)6 5345999

Riyadh, KSA +966 (0)8 111005060

Muscat, Oman +968 (0)24 501872

Yanbu, KSA+966 (0)14 3963993

Doha, Qatar+974 44606178

Istanbul, Turkey+90 212 4652050

Manama, Bahrain+973 17723381

Providing Turn-key Rental Power Solutions to the Oil & Gas IndustryWhether you need temporary power for the operation of oilfields, the construction of platforms, early production, planned or emergency maintenance or loadtest of main power systems, Aggreko has the solution.

We offer full project planning, installation and commissioning, and 24/7 service maintenance.

Aggreko, Power Specialists in Oil & Gas

59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1 06/02/2014 12:55

Aggreko Middle East Ltd.PO Box 16875, Dubai, UAET: +9714 808 6100 F: +9714 883 1825

Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact

Kuwait City, Kuwait+965 23983648

Abu Dhabi, UAE+971 (0)2 5549494

Dammam, KSA +966 (0)13 8580301

Dubai, UAE +971 (0)4 8086100

Jeddah, KSA+966 (0)12 2727640

Sharjah, UAE+971 (0)6 5345999

Riyadh, KSA +966 (0)8 111005060

Muscat, Oman +968 (0)24 501872

Yanbu, KSA+966 (0)14 3963993

Doha, Qatar+974 44606178

Istanbul, Turkey+90 212 4652050

Manama, Bahrain+973 17723381

Providing Turn-key Rental Power Solutions to the Oil & Gas IndustryWhether you need temporary power for the operation of oilfields, the construction of platforms, early production, planned or emergency maintenance or loadtest of main power systems, Aggreko has the solution.

We offer full project planning, installation and commissioning, and 24/7 service maintenance.

Aggreko, Power Specialists in Oil & Gas

59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1 06/02/2014 12:55

Aggreko Middle East Ltd.PO Box 16875, Dubai, UAET: +9714 808 6100 F: +9714 883 1825

Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact

Kuwait City, Kuwait+965 23983648

Abu Dhabi, UAE+971 (0)2 5549494

Dammam, KSA +966 (0)13 8580301

Dubai, UAE +971 (0)4 8086100

Jeddah, KSA+966 (0)12 2727640

Sharjah, UAE+971 (0)6 5345999

Riyadh, KSA +966 (0)8 111005060

Muscat, Oman +968 (0)24 501872

Yanbu, KSA+966 (0)14 3963993

Doha, Qatar+974 44606178

Istanbul, Turkey+90 212 4652050

Manama, Bahrain+973 17723381

Providing Turn-key Rental Power Solutions to the Oil & Gas IndustryWhether you need temporary power for the operation of oilfields, the construction of platforms, early production, planned or emergency maintenance or loadtest of main power systems, Aggreko has the solution.

We offer full project planning, installation and commissioning, and 24/7 service maintenance.

Aggreko, Power Specialists in Oil & Gas

59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1 06/02/2014 12:55

Aggreko Middle East Ltd.PO Box 16875, Dubai, UAET: +9714 808 6100 F: +9714 883 1825

Aggreko operates from over 190 locations throughout the world. For the location nearest you, please go to: www.aggreko.com/contact

Kuwait City, Kuwait+965 23983648

Abu Dhabi, UAE+971 (0)2 5549494

Dammam, KSA +966 (0)13 8580301

Dubai, UAE +971 (0)4 8086100

Jeddah, KSA+966 (0)12 2727640

Sharjah, UAE+971 (0)6 5345999

Riyadh, KSA +966 (0)8 111005060

Muscat, Oman +968 (0)24 501872

Yanbu, KSA+966 (0)14 3963993

Doha, Qatar+974 44606178

Istanbul, Turkey+90 212 4652050

Manama, Bahrain+973 17723381

Providing Turn-key Rental Power Solutions to the Oil & Gas IndustryWhether you need temporary power for the operation of oilfields, the construction of platforms, early production, planned or emergency maintenance or loadtest of main power systems, Aggreko has the solution.

We offer full project planning, installation and commissioning, and 24/7 service maintenance.

Aggreko, Power Specialists in Oil & Gas

59853 AGG C2C Adipec Downstream ad (210x276)_AW.indd 1 06/02/2014 12:55

SUPPLIER PROFILE

AGGREKO

Since its foundation over 50 years ago, Aggreko has grown to become the world’s leading provider of rental power and temperature control solutions. With over 5,700 employees operating from over 194 locations, Aggreko provides 24/7 availability and service support. Aggreko offers the highest levels of performance and customer service and is truly a global force in temporary power generation.

Aggreko in the Middle East Since opening its first regional office in Sharjah in 1991, Aggreko today offers round-the-clock service support and equipment availability in the Middle East through a network of twelve locations in eight countries; UAE, Oman, Qatar, Kuwait, Bahrain, Saudi Arabia, Turkey and Iraq.

Practical Solutions More than products, Aggreko has significant experience in providing power generators, electrical testing and temperature control services, offering total power and cooling solutions. Its equipment allows the flexibility of creative and novel solutions to suit customer needs - solutions that work not just on paper, but in practice. This means offering 24-hour back-up 365 days a year and making full use of a global network of depots to ensure that the equipment is on-site in the shortest possible time. The considerable success of Aggreko is due not only to the services provided, but the way in which those services are provided. The accomplishments are a result of the application of vision and creativity to customers and giving them ideas and solutions that improves their performance – every time. By working with Aggreko, our customers can focus on their core activities, secure in the knowledge their power supply is in the hands of an expert organisation.

Website: me.aggreko.com

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SKA INTERNATIONAL

“The company can continue to grow significantly in the next three to five years.”

Khor Al Zubair Iraq represents arguably the greatest challenges but also the greatest amount of activity for SKA, which operates under nine companies across six Middle Eastern and African countries.

Its current flagship investment lies at the Port of Khor Al Zubair, the first privately-owned fuel storage facility in Iraq, with a 20,000 tonne capacity, set to rise to 80,000 once phases two and three are completed.

The expansion, which will take total spend to upwards of $80 million, will allow SKA to deliver

Planned number of tonnes of fuel storage available

at the Port of Khor Al Zubair

80,000

Off loading cargo

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S U P P LY C H A I N

www.ska-arab ia .com 8 3

SKA INTERNATIONAL

more fuel to power vital industries in the future. “We have encountered some significant

challenges but we are very active, supplying fuel and importing refined products, and keeping power stations operational in what is a very difficult time,” Douglas added.

“The expansion will give us more capacity and will allow us to bring in bigger vessels which have lower freight premiums. Our plan is not only to handle our own fuel through the terminal but to handle third party imported products also.”

SKA also has a testing lab at the site where Intertek conducts international fuel certifications, giving peace of mind to customers in the knowledge that their fuel is of the highest

“The expansion will give us more capacity and will allow us to bring in bigger vessels which have lower freight premiums”– Mike Douglas

The company’s aim is to handle third party imported products

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SKA INTERNATIONAL GROUP

Fuel depot

www.briggsequipment.co.uk

To maximise your operations call:

03301 23 98 14

Complete supply chain solutions

Full materials handling range

Over 600 mobile support engineers

National expertise

Proud to support

SIXSQUARE LIMITEDYour International Supplier of Fresh Fruits, Flowers, Vegtables, Dry & Frozen Food andGeneral Items.

[email protected] | Cell - +254788559235

Toptech Systems is a leading provider of terminal automation software and hardware solutions. Since 1988, Toptech has delivered superior products and services to each customer.

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+32 (0)3 250 60 60

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A multi-solution batch controller that handles loading, dispensing, tracking, BS&W, and water cut.

The most widely used and trusted terminal automation system in the world.

Page 85: Supply Chain Digital - October 2014

M I D D L E E A S T

www.ska-arab ia .com 8 5

SKA INTERNATIONAL GROUP

“11 years in Iraq has given us the experience to manage our way through a lot of the problems”– Mike Douglas

standard, something which has been problematic in Iraq in the past.

Investing in Iraq This project is representative of a shift towards focusing on the oil and gas markets in the country following a number of huge and varied projects based around the US military.

SKA handled most of the logistics freight for the US government in a six-year contract and carried out an enormous 180,000-hectare crop spraying scheme in 2006; this while being the key fuel supply chain operator.

It now has a fleet of 500 trucks in Iraq moving all kinds of fuel and equipment, and is working with global oil and gas companies including BP and Lukoil. The company’s local knowledge and experience is central to its success.

“Security is a major issue in a lot of our regions,” Douglas said. “But 11 years in Iraq has given us the experience to manage our way through a lot of the problems. We have a thorough security plan in place and an extensive evacuation procedure should the need ever arise.

“Our experience and knowledge of what happens on the ground is our greatest asset – we can foresee issues before they come to us.”

The resoluteness of SKA has played an important part in convincing businesses to invest in Iraq, and Douglas, himself having served in the armed forces, is an active figure at the Iraq British Business Council. This body works tirelessly to

Number of trucks in Iraq

moving all kinds of fuel

and equipment

500

Page 86: Supply Chain Digital - October 2014

PO Box 29781, Sharjah, United Arab Emirates Tel +971.6.5530776 Fax +971.6.5538466

[email protected]

ENGINEER.PROCURE.CONSTRUCT.MANAGE

EPC SERVICES

Chemie-Tech is a professional Industrial solutions provider, offering high quality Engineering, Procurement Construction & Project Management services to Oil & Gas, Petrochemical & Process, Power & Water Industries. The sphere of activity is focused in providing expertise and turnkey solutions to clients throughout Middle East, Australasia, Africa and North America.

With Global Operations and technical expertise to respond to the complex challenges of the Bulk Liquid Storage Tank Terminal/Depots Installation, Offsite, Utilities, Pipeline, Process Plants (Refinery & Petrochemical), Topside Facilities, Fuel Ethanol Plants, Bio Diesel Plants or Used Oil Recycling Plants, Chemie-Tech delivers Quality Projects.

ENGINEERING & CONSTRUCTION SOLUTIONS FOR STORAGE INDUSTRY

Chemie-Tech

Page 87: Supply Chain Digital - October 2014

SKA INTERNATIONAL GROUP M I D D L E E A S T

www.ska-arab ia .com 8 7

bring in investment to the country and SKA is a founding member.

Ras Al Khaimah Closer to its Dubai headquarters, the company is working to improve the commercial profile of Ras Al Khaimah International Airport.

A $10 million aviation fuel storage facility, recently commissioned, is the first step in attracting both cargo and passenger carriers to the airport. Douglas believes the incentive of a competitive fuel and handling package will draw in investment where before it may not have been attractive.

“As the UAE rapidly expands there is a lot of congestion at Dubai International, but currently at Ras Al Khaimah there is a very low level of activity,” he said. “We are injecting some fresh ideas and the large amount of hotel developments going on also shows the tourism potential.”

Somalia, Uganda and beyond Aviation is also a crucial part of SKA’s work in Africa, not least in Uganda and Somalia, arguably the most unstable nation on the continent.

Here SKA has several contracts with the United Nations (UN) mainly based around life support and fuel supply, and continues to provide supply chain services to Mogadishu airport having given it a new lease of life between 2010 and 2013.

SKA has operated helicopters as well as its own fixed-wing aircrafts and truck fleet in Somalia,

SKA has operated

helicopters as well

as its own fixed-wing

aircrafts and truck fleet

in Somalia

Page 88: Supply Chain Digital - October 2014

8 8 O c t o b e r 2 0 1 4

SKA INTERNATIONAL

with a significant focus now being turned towards oil and gas operations.

Douglas added: “We have been on the ground for coming up four years and have developed a unique capability in terms of being able to do business.

“There is a big opportunity here for oil and gas and a lot of mineral resources which are yet to be explored. We are long-term investors, here for the long haul.”

In Uganda, the company is set to begin building a 20,000-tonne fuel storage facility just outside Kampala, with operations looking to commence in 2015. The site is strategically placed on the rail and road networks from Mombasa, facilitating increased import of refined goods.

SKA is also about to retain its air operating certificate, an important step on continuing work

“We pride ourselves on having local staff and taking good care of them, giving opportunities they otherwise wouldn’t have”– Mike Douglas

The company invests significantly in training

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M I D D L E E A S T

www.ska-arab ia .com 8 9

SKA INTERNATIONAL

here and for other UN projects in the likes of the DRC, South Sudan and Central African Republic.

Building up communities An ultimate end for Douglas is to revitalise the societies in which the company works, with a big part of this revolving around employing and developing local people in the business. SKA employs more than 700 people, a mixture of former armed forces personnel, commercially-focused personnel, as well as local nationals.

“We pride ourselves on having local staff and taking good care of them, giving opportunities they otherwise wouldn’t have,” Douglas added. “We invest a lot in training and sending people abroad to become qualified – I want a loyal group to take us forward.”

The company also invests heavily in the charitable sector, for example in Iraq where it supports many events run by the Amar International Charitable Foundation.

By continuing to improve its own offering, SKA International Group can keep on driving commercial growth in the world’s most challenging environments where help is needed the most, ultimately uplifting the lives of communities that have endured years of hardship.

Douglas concluded: “Despite the negative media headlines there is a huge amount of opportunity in African and Middle Eastern countries. The message I want to give is that we are here to stay.”

Company Information

I N D U S T RY

Supply Chain & Energy

H E A D Q U A RT E R S

Dubai, UAE

F O U N D E D

2003

E M P L O Y E E S

700+

R E V E N U E

Not Disclosed

P R O D U C T S /

S E R V I C E S

Logistics

Page 90: Supply Chain Digital - October 2014

Safetyin Movement

Overcoming borders with competitive solutions and logistics in transportation

Written by: Rebecca Castrejon Produced by: Lucy Verde

Interviewee: Jose de Jesus Castañeda Bañuelos, CEO of Trucka

Safetyin Movement

Page 91: Supply Chain Digital - October 2014

9 1

Safetyin Movement

Overcoming borders with competitive solutions and logistics in transportation

Written by: Rebecca Castrejon Produced by: Lucy Verde

Interviewee: Jose de Jesus Castañeda Bañuelos, CEO of Trucka

Safetyin Movement

Page 92: Supply Chain Digital - October 2014

9 2 O c t o b e r 2 0 1 4

TRUCKA

Trucka, a family success story

Commitment, responsibility and innovation are just some of the values that identify Trucka, the Mexican company that

provides logistics and transportation solutions. The history of “Transportes Unidos Castañeda

de Aguascalientes” began in 1944, when founder Sergio Castañeda Guerra opened the company’s headquarters in the state of Aguascalientes after purchasing his first truck at age 30.

By March 13 of 2000, Jose de Jesus Castañeda Bañuelos, Financial Administration executive and the youngest son of Don Sergio, took over as the new CEO of the company. In a little over 10 years of leading the renewed “TRUCKA” (Transportes Unidos Castañeda), Castañeda transformed the direction of the company under a strategic-international drive, expanding the business to all corners of the country and increasing the fleet of trucks from 27 to more than 400 units by the end of 2012.

“We believe that in five years the company will double in size through organic growth and a clear plan of mergers and acquisitions”– Jose de Jesus Castañeda Bañuelos, CEO of Trucka

Headquarters

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w w w. t r u c k a . c o m . m x 9 3

L AT I N A M E R I C ATRUCKA

This 2014, the highly competitive Trucka has reached a national level and seeks to consolidate their operations throughout Mexico with a continued investment in developing markets. Trucka has been a “Top Company” for four consecutive years, according to CNN-Expansion’s ranking and won the award for “Outstanding Performance” by Chrysler. Their main certifications include ISO 9001:2008, C-TPAT, LCT, BASC and ISO 9000.

The company seeks internationalization for the collective progress of their “Truckanianos” (employees), administrative staff and partners.

Flotilla

Page 94: Supply Chain Digital - October 2014

9 4 O c t o b e r 2 0 1 4

TRUCKA

Trucka is synonymous of more than 70 years of experience in the automotive industry, an experience that shows in their range of services and professionalism of all departments, from their drivers, presence and procedures, to their fleet of 400 trucks.

Their vehicles are located in various terminals of the Mexican Industrial Corridor and ready to provide solutions 24/7 to both domestic and foreign clients, respecting delivery deadlines and safety regulations at all times. Trucka is currently crossing national barriers, delivering in the United States and Canada through strategic alliances with 36 American lines.

The company is present in 11 strategic locations in the cities of Guadalajara, Monterrey, Queretaro, Saltillo, San Luis Potosi, Manzanillo, Nuevo Laredo, Mexico City, Aguascalientes and Silao, the home of their corporate headquarters and Operating Centre (COT).

Competitive Advantages

Trucka has integrated the latest resources to provide greater efficiency in their daily operations, such as an updated GPS system, software SRP and digitalization of all internal movements.

As part of their vision for 2020, they have implemented the “400 Renewal Plan” to keep their vehicles in constant maintenance and with an average life of three years, a process that began in 2011.

Reaching all corners of

the country

“We hope to make our first debt issue

in 2015, and in the not too distant future, become a public company”

– Jose de Jesus Castañeda Bañuelos, CEO

of Trucka

Page 95: Supply Chain Digital - October 2014

w w w. t r u c k a . c o m . m x 9 5

L AT I N A M E R I C ATRUCKA

Working 24/7

Strategic Partners

Suppliers are critical to the growth of the company. They provide a mutual progress with developments in the industry that will place them in new markets. Year after year the company strengthens their relationship and verifies that the supply provided go pair in pair with the

Key People Jose CastañedaCEO of Trucka

Page 96: Supply Chain Digital - October 2014

TRUCKA

company’s vision, a vision of quality, efficiency, cost-effectiveness, time management and the inclusion of new technologies.

Responsible Activities

In partnership with the Autonomous University of Aguascalientes, Trucka has ventured into the production of biodiesel to supply its fleet, benefiting the environment with friendlier operations.

Their social responsibility goes beyond environmental management, since they also support renowned sports and charity

Transportations

that mark a fixed

destination

Page 97: Supply Chain Digital - October 2014

w w w. t r u c k a . c o m . m x 9 7

L AT I N A M E R I C ATRUCKA

organizations, such as the Integral Rehabilitation Center Telethon (CRIT), club Necaxa based in Aguascalientes and the baseball team Rieleros de Aguascalientes.

THE INTERVIEW

In an interview with Jose de Jesus Castañeda Bañuelos, current CEO of Trucka, he mentioned the company’s growth plans, their projections and 2020 objectives. Here his answers.

BRAL. ¿What is the company’s vision for the next five years?

Customer service

Page 98: Supply Chain Digital - October 2014

9 8 O c t o b e r 2 0 1 4

TRUCKA

JC: In Trucka we have a business plan called “Vision 2020” which clearly defines the objectives of the company by sector.

In broad terms we believe that in five years the company will double in size through organic growth and a clear plan of mergers and acquisitions.

We can achieve this with the incursion into a private equity fund as a shareholder of the company to accelerate its growth. We hope to make our first debt issue in 2015, and in the not too distant future, become a public company.

Human resources

Mechanical

competitiveness

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w w w. t r u c k a . c o m . m x 9 9

L AT I N A M E R I C ATRUCKA

Company Information

I N D U S T RY

Land transportation

and logistics

H E A D Q U A RT E R S

San Francisco de los

Romo, Aguascalientes,

Mexico

F O U N D E D

1932

E M P L O Y E E S

700+

P R O D U C T S A N D

S E R V I C E S

- Logistics and

transportation

- Orders for loading and

unloading

R E V E N U E

USD $75 million

BRAL. ¿What is your greatest success as the CEO of Trucka?

JC: Having managed to turn a family business into a corporate one by maintaining a stable and lasting relationship with all the members. And always knowing what you can expect from a family business.

BRAL. ¿What are some of your environmental policies?

JC: In Trucka we are concerned about the environment, every year we renew our vehicle fleet in order to have the most modern engines and to emit fewer pollutants. We have an R&D center in which we made great efforts to produce biodiesel and in analyzing the recycle process of used oil.

Our organizational communications department sensitizes our staff in the proper use of resources, and in the use of environmental safety regulations in the workplace.

BRAL. ¿Are you planning to expand operations to other markets?

JC: In the coming years we see a consolidating phase in the domestic market. But so far we have not laid eyes on other international markets.

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CorporativoUNNE:

Distance andcost reduction

UNNE’s key factor for growth has been the ambition to broaden their business

units, thus improving every single step toaccomplish flawless logistics

Written by: Mateo Rafael Tablado Interview by: Rebecca CastrejónInterviewee: Noe Paredes, CEO

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1 0 1

CorporativoUNNE:

Distance andcost reduction

UNNE’s key factor for growth has been the ambition to broaden their business

units, thus improving every single step toaccomplish flawless logistics

Written by: Mateo Rafael Tablado Interview by: Rebecca CastrejónInterviewee: Noe Paredes, CEO

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CORPORATIVO UNNE

Corporativo UNNE hails back to 1972, with the opening of a building materials warehouse serving mostly all of the

companies involved in PEMEX Miguel Hidalgo refinery’s construction, in the city of Tula, Hidalgo. Soon after the warehouse opens, the materials’ freight operation began, as did other services during the next decades. Up until today the corporation is segmented in four large business units:

- Cargo and logistics- Truck maintenance, tire retreading- Fuel and power supply for different trades- Mining (extraction, shipment and sales)

UNNE’s entire operation involves a network comprised of local businesses, companies known nationwide and global corporations, enabling the company to bring goods from air, land and sea into Mexico’s largest markets, making it seem like shipment’s distance and costs are being reduced.

“One of the facts I’m proudest of was the transition from being a family-run business into a fully-established company in order to partner with global corporations,” says Noe Paredes, CEO for UNNE, and part of the front office since 1992 after completing his education in Business Management, which were followed by a Top Management course.

In recent years, Mexican companies able to

Dicomex

“We are consolidating our existing business lines by creating

new business opportunities for

each”

– Noe Paredes, CEO, Corporativo UNNE

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L AT I N A M E R I C ACORPORATIVO UNNE

keep a sustained growth rate, partnerships and engage in diversification are not a product of casualty. These businesses have been through ups, downs and the unexpected changes of fluctuating economies proper of still-under-development countries: from well-documented booms in certain trades including optimist growth and progress forecasts to crisis, currency

Key People Noe ParedesCEO of Corporativo UNNE

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CORPORATIVO UNNE

devaluation and markets’ change of pace. It takes more than just will power or healthy fund reserves for some companies to survive, but traits such as flexibility, adaptation and a cunning ability to spot and take part in new business opportunities are also required.

Most of these qualities have shaped Corporativo UNNE, starting as a retail outlet for construction materials; it didn’t take long for them to start transporting these goods to customers elsewhere and ending up as a very important logistics company in Mexico. “We recently built a terminal port in the state of Hidalgo, a transfer facility to products brought from cargo ports on their way towards large markets,” says the company’s CEO regarding Terminal Intermodal Logistica Hidalgo (TILH) logistics port, a facility to ease transit and paperwork for different products, including some whose origin or final destination is abroad.

“We have had faithful suppliers from day one: they saw our birth, growth and development along with theirs”– Noe Paredes, CEO, Corporativo UNNE

Services in mines

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L AT I N A M E R I C ACORPORATIVO UNNE

Consolidation: base for growth

UNNE’s continuous growth is not to be based merely on the acquisition of new units for their cargo services or diversifying into new, previously unexplored ventures, but much rather by focusing in every improvement possible for the existing business units and their procedures in order to bring them to fulfill their potential which, as a result, will naturally bring the need for new transport units as well as operative and office personnel. “We have a future project involving compressed natural gas (CNG), we have a housing construction project pending... we are consolidating the existing mining, construction, energy, cargo and logistics lines by creating new business opportunities for each,” says Paredes.

Competitive transportation

Mine Xiteje

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CORPORATIVO UNNE

In fact, there’s also a project which will go beyond plain fuel vending, by obtaining energy from residues to be used for industrial or residential purposes. “The ongoing energy reform in Mexico will create new necessities not only in the energy sector, but in every industry sector in our country,” said Noe Paredes.

Leverage through partnerships

As a way to gain competitiveness in Mexico, UNNE partnered with a global company to offer logistics services, this eased the link between cargo ports and large consumption markets (with

Dual unit

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L AT I N A M E R I C ACORPORATIVO UNNE

Mexico City being, basically, the largest in the country) through terminal ports where train freight and land freight meet. “At the end of the day, the purpose is to simplify every procedure for our clients into cost-reducing volumes while having their products close to their marketplace... there lies our leverage,” says Paredes.

Partners for a lifetime

One of the most productive partnerships for UNNE in recent years is the one held with HPH (Hutchison Port Holdings), who performed a large investment in the TILH terminal port project.

Tank UNNE

Maintenance on tractor

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CORPORATIVO UNNE

There have been other strategic partners during the 40-plus year operation; local land freight companies and banks have placed their trust and resources in UNNE’s hands. “We have had faithful suppliers from day one: they saw our birth, growth and development along with theirs’ in unique synergy,” said UNNE’s CEO.

Sustainable energy as part of new ventures

The ongoing problems of waste management and groundwater pollution are to be solved with residues being transformed into electric power. Other measure towards reduction of the

Integral Solutions

Banded

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Company Information

I N D U S T RY

Cargo / Logistics

H E A D Q U A RT E R S

Tula, Hidalgo, México

F O U N D E D

1972

E M P L O Y E E S

1,200

R E V E N U E

US$900 million

corporation’s impact on the environment is the transition from diesel into CNG-fueled vehicles; part of UNNE’s companies’ vehicle fleet is being fueled by compressed natural gas already.

Networking for long run operations

Paredes is positive that the best upcoming opportunities for the corporation will come through the logistics unit, which is to be strengthened and developed to its fullest potential. UNNE’s efforts have produced results as mid and long-term investments; each new venture is sometimes a preceding step towards a larger enterprise and there’s also the adaptation factor when the whole business spectrum outside the corporation is also changing. “During the last couple of years we have experienced delays in a new construction boom all over the country, which may seem to reset during the next two to five years,” says Paredes.

“A new construction boom over the country may seem to reset during the next two to five years”– Noe Paredes, CEO, Corporativo UNNE

Page 110: Supply Chain Digital - October 2014

Transport Matte1 to 100, and BeyondThe transport company that started with a single truck has become a leader in the transport industry thanks in part to the hard-working family behind it all. Written by: Kevin Smead Produced by: Michael Magno

Page 111: Supply Chain Digital - October 2014

1 1 1

Transport Matte1 to 100, and BeyondThe transport company that started with a single truck has become a leader in the transport industry thanks in part to the hard-working family behind it all. Written by: Kevin Smead Produced by: Michael Magno

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COMPANY NAME

Transport Matte started with one truck, purchased by Hervé and Monique Matte in 1951.

They had a contract to transport forest residue to the Donnacona paper mill in Quebec. More than 60 years and 100 trucks later, the company is in its third generation of family ownership and continues to grow.

How has this family-run business remained strong for more than half a century?

According to owner Melany Matte, the company’s success comes from a number of factors, all stemming from a company culture of hard work.

Like Rings in a Tree In looking at the company’s history,

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S E C T O R

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COMPANY NAME

there are several big milestones, much like the rings of the trees Matte sometimes transports.

In 1955, two more trucks were added to the fleet. However, everything was operated from the Matte home. Monique took care of accounting and dispatch as well as cooking the drivers’ meals they would eat at the family house before

leaving for another trip. Hervé was mostly on the road to find new clients in addition to working on the weekends as master of ceremony to make ends meet.

The company continued to grow in the 1970s, adding more trucks to meet the needs of its customers. The couple’s children also decided at that time to join the company

Page 114: Supply Chain Digital - October 2014

More than just a truck!

CAT CT660

General truck repairand maintenance

S•O•S fluid analysislaboratory

Dynamometer test

Engine overhaul

Premium servicefor transporters

Parts inventory

Financing

Service par Excellence1 855 439-4888 | hewitt.ca/truckFor more details, contact us.

Hewitt Truck Centre

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TRANSPORT MATTE C A N A D A

www.t ranspor tmat te .com 1 1 5

founded by their parents. However, tragedy struck and in 1981, Hervé died. In wanting to carry on the business, his 4 children took over.

“They had a lot of obstacles to overcome,” Matte said, “but they succeeded because of their great efforts and the company continued to grow.”

During those years, between 1981 and the early 2000s, different companies were formed by family members to meet other needs and comply with regulations of that time. In 2006, all merged together to form Transport Matte Limited.

“Since 2004, I and two of my cousins have been ensuring the continuation of the family

More than just a truck!

CAT CT660

General truck repairand maintenance

S•O•S fluid analysislaboratory

Dynamometer test

Engine overhaul

Premium servicefor transporters

Parts inventory

Financing

Service par Excellence1 855 439-4888 | hewitt.ca/truckFor more details, contact us.

Hewitt Truck Centre

You work hard every day and you count on rugged, reliable products to keep your operation up and running. Hewitt’s Truck Centre has the expertise required to be your service partner and help you achieve success with your projects, supplying equipment that meets the demands of the world’s toughest industries. In 8 specialized Truck Service Centres located in Quebec and Western Labrador, Hewitt Equipment Limited is the authorized Caterpillar CT660 truck dealer and provides the following services:

• General truck repair and maintenance • S•O•S fluid analysis laboratory • Dynamometer test • Engine overhaul • Parts inventory • CAT Finance • Premium service for transporters /carriers

Hewitt, Service par Excellence Contact us: 1 855 439-4888 Visit our Website: www.hewitt.ca/truck

SUPPLIER PROFILEHEWITT EQUIPMENT LTD

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TRANSPORT MATTE

w w w . f r e i g h t l i n e r q u e b e c . c o m

i n t r o d u c i n g t h e a l l n e w 5 7 0 0 X e

Camions Freightliner Québec Inc.2380 Dalton Avenue Quebec QC Canada G1P-3x1

(418) 657-2425 | 1-800-463-5603

Camions Freightliner Québec Inc. is a major truckdealership in quebec city. freightliner quebec has a stockof more than 1.6 million dollars of parts in inventory.our consultants guide you in your choice of vehiclesfrom two leading brands of trucks in north america.our experienced technicians are always at your service.

business,” Matte said. “Even with Transport Matte becoming a bigger company—we have 120 employees now—we’re still a family business and our operations reflect that spirit.”

24/7 Service—Literally Transport Matte has not only succeeded because of its work ethic, but also the company’s strong commitment to providing the best service to its customers, every time.

“Our mission is to maintain our

leading position in the bulk transport of forest residues by meeting the needs of our customers with service that exceed expectations and staying abreast of their specific transportation needs,” Matte said.

The company operates in Quebec, Ontario, and the Canadian Maritimes. They have a diverse fleet of trucks and trailers that serve a number of different industries.

“We have a fleet of 100 trucks and 190 trailers in different regions,” Matte said. “This allows

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TRANSPORT MATTE

us to quickly serve our customers regardless of their location.”

This commitment to service also includes always being on call when a customer may need something.

“We have good and diversified equipment which allows us to be flexible and have a very short response time,” Matte said. “We’re also open 24 hours a day, 7 days a week, so there’s always someone on the phone who can quickly answer any question or address any problem for the client or the driver.”

In the end, it’s all about doing the best work they can for the customer.

“Service is what matters most to us,” Matte said. “Our team makes all the necessary efforts to make sure the clients always receive the number of loads they ask for and that it’s delivered on time.”

Driving Success While the family plays a major role in the company, its drivers and maintenance crew are equally important. The company takes a very personal approach when it comes to its employees, making its growing business still seem small.

“All of our drivers have their

assigned truck,” Matte explained, “so they don’t need to share it with anyone else.”

Also, drivers are supported by a top-notch maintenance team who are always working to ensure the trucks are cared for and maintenance is preventative rather than reactive.

In addition, the company works to create a culture that people want to be a part of.

“As a family business, we have human management and consider our employees as part of our success,” Matte said. “They know that we’re always there to help them in any way. Even if they have personal problems, we’re always there to listen.”

60 More Years? In 2011, the company celebrated its 60th anniversary and is continuing to improve and grow, including taking a more high-tech approach to transport.

“We have invested a lot in recent years to use new computer systems to improve our competitiveness and service,” Matte said. “For example, we’re now developing a

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TRANSPORT MATTE

new dispatch program to meet our specific needs. We’re also finishing installing GPS tracking systems in every truck so our dispatchers can know at all times where our trucks are and better distribute them on the territory we serve in order to respond more effectively to our customers.”

Adaptation is key, as the market is quite a difficult one to be in. However, Matte sees that more as a chance to excel rather than be hindered.

“The wood market that we’re in is not growing—it’s actually been going down since the crisis in

2008,” she explained. “It started with a wood crisis which was followed up by the financial crisis. This challenges us to innovate more and diversify our operations in order to maintain our position on the market.”

The company is constantly looking for the best employees and to seize opportunities that could lead to furthering its growth. In the end, though, it all comes back to the family.

“The hard work of all our family members has made us what we are today,” Matte said. “Our family has always considered the well-being of

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TRANSPORT MATTE

the company, its clients, and employees before themselves. We’re all very committed to the company and we put all necessary efforts in place to ensure its longevity.”

In pondering longevity, one might wonder what Transport Matte might look like in another 60 years. Melany Matte believes the company has found new life and stands at the beginning of a bright future.

“Right now, we’re in the third generation of the company’s business,” she said. “I would say it’s bringing a breath of fresh air to everything. We bring new ideas and solutions to improve our operations and service. We’re taking the company and hoping to continue it for another 60 years.”

For a company where one truck has become 100, there’s no telling what 100 might become.

Company Information

I N D U S T RY

Transportation

H E A D Q U A RT E R S

Quebec, Canada

F O U N D E D

1951

E M P L O Y E E S

120

R E V E N U E

20 Million

Page 120: Supply Chain Digital - October 2014

Bay Ship & Yacht Sailing the Seas of SuccessFrom battleships to superyachts, this company has worked on ships of all sizes. But its roots remain grounded in the belief of offering the best customer satisfaction while ensuring their staff’s well-being Written by: Stephanie C. Ocano Produced by: Jason Wright

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1 2 1

Bay Ship & Yacht Sailing the Seas of SuccessFrom battleships to superyachts, this company has worked on ships of all sizes. But its roots remain grounded in the belief of offering the best customer satisfaction while ensuring their staff’s well-being Written by: Stephanie C. Ocano Produced by: Jason Wright

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BAY SHIP & YACHT

San Francisco Bay is a mecca for sailors and home to a major port. From small boats

to military ships, these waters have seen it all. One company, who began by repairing wooden ships in the late ‘70s, has grown to become one of the most recognized build-and-repair names within the commercial vessel

industry: Bay Ship & Yacht Co. In 1977, Bill Elliot began Bay

Ship with the intent of working on wooden ships, his primary passion. As opportunities arose in the commercial and military vessel market, Elliot decided to fuel that passion and opened a shipyard on San Francisco Bay in 1994 and has

San miguel

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BAY SHIP & YACHT

grown and developed it into the “21st Century Shipyard”.

David Ashton, Sales Manager at Bay Ship, began working at the company in 2008 and has since seen the business steadily increase.

“It’s been very fun and exciting to be a part of a company that has undergone so many significant and positive changes. [Bay Ship] has embarked on [various] programs because it believes so deeply in our mission statement of ‘Absolute Customer Satisfaction,’” said Ashton.

The programs Ashton referred to include the investment in a new drydock; expansion of the machine, fabrication, and hydraulic shops; and the development of a new quality management system to ensure continuous improvement.

3Safe-Conscious and Environmentally-Friendly Bay Ship’s singular priority is safety and protection of our customers’ vessels. By ensuring a safe workplace, Bay Ship can ensure that projects are conducted efficiently and to the letter of the contract.

“For nearly two years [Bay Ship] has invested in a Quality Management System (QMS),” said Ashton. “The QMS is geared towards business improvements, but it’s most significant contribution is ensuring that our business processes are such that we can ensure we provide the highest quality of work and work fulfillment to our customers; while providing the safest environment for our employees.”

The QMS system ensures procedural fulfillment through a series of checks and accountability. It also exploits problematic areas to determine the root causes and the corrections thereof.

“Safety starts with understanding the scope of work and planning for it,” added Ashton. “Our culture that we have developed at [Bay Ship] is such that any person, anywhere in the company, can stop a project if they feel that an unsafe practice is occurring; so we spend lots of time ensuring that it never gets to that.”

Beyond safety, Bay Ship makes certain to take care of the land and waters they work on, as well.

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Since 2009, Champion Scaffold Services has equipped Bay Area homeowners, commercial

general contractors, and businesses with superior products and exemplary services. Priding

ourselves on outstanding customer service and high quality production, our staff, management,

and qualified estimators will be readily available to aid you from initial inquiry to dismantle.

Our goal is to establish a beneficial relationship with our customers in order to produce a safe,

reliable infrastructure, allowing your project to proceed without delay.

CommerCial, reSidential and induStrial projeCtS | inStallation and diSmantle

Stair towerS | Hill SideS | mobile towerS | large SHipS

1563 SOlanO ave. BOx #332 • Berkeley, Ca. 94707

510-788-4731 • Fax: 510-327-0301 • www.championscaffold.com

large or Small projeCtS, safety is our #1 priority.

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“[Bay Ship] is located on the San Francisco Bay and as such we are extremely sensitive to ensuring that neither the air, land or water is polluted,” said Ashton. “[Bay Ship] goes through great detail of ensure that we are as environmentally sensitive as we can be, including environmental containment and shrouding of vessels during certain operations; the recycling of petroleum waste products; the recycling of various metals; and our waste stream is segregated to maximize environmental sensitivity.”

Employing the Right People “Recruiting of smart people to carry out the work is very important if we are to remain a cutting-edge 21st century shipyard,” says Ashton.

As a complex organization that requires skilled individuals from project to business managers, Bay Ship has developed its own extensive training program for new hires.

“It’s quite unique to our shipyard,” said Ashton. “We work in multiple disciplines and each discipline requires its own training … We bring in outside vendors, safety consultants, and others to conduct training of our workforce for specific

Since 2009, Champion Scaffold Services has equipped Bay Area homeowners, commercial

general contractors, and businesses with superior products and exemplary services. Priding

ourselves on outstanding customer service and high quality production, our staff, management,

and qualified estimators will be readily available to aid you from initial inquiry to dismantle.

Our goal is to establish a beneficial relationship with our customers in order to produce a safe,

reliable infrastructure, allowing your project to proceed without delay.

CommerCial, reSidential and induStrial projeCtS | inStallation and diSmantle

Stair towerS | Hill SideS | mobile towerS | large SHipS

1563 SOlanO ave. BOx #332 • Berkeley, Ca. 94707

510-788-4731 • Fax: 510-327-0301 • www.championscaffold.com

large or Small projeCtS, safety is our #1 priority.

Here at Champion Scaffold Services we take care of every clients unique needs and projects. Our staff is efficient, professional and courteous. One of goals here is to make sure you feel good about your decision to use our services, so we work hard for you. We perfect and map out each and every project’s details, and complete things in a timely manner.You can rest assured you are using the best of the best!

Website: www.championscaffold.com

SUPPLIER PROFILECHAMPION SCAFFOLD SERVICES

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BAY SHIP & YACHT

actions, but have an extensive in-house training staff for our routine education.”

“To my knowledge, the training program at [Bay Ship] is unique among all shipyards,” added Ashton. “Where other shipyards have some training, our training is so extensive it has earned a renowned reputation worldwide.”

Bay Ship’s staff is proof to the theory that with the right people, you

can reach success anywhere.“The most important aspect

of managing a workforce is empowering them to be a part of their own future,” said Ashton.

Looking to the Horizon Bay Ship & Yacht Co. has worked on some impressive projects. From the legendary U.S. Navy battleship USS Iowa to the presidential yacht the Potomac, Bay Ship is anchored

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BAY SHIP & YACHT

in its mission of delivering top quality work and customer satisfaction.

“[The year] 2015 should be a great year for [Bay Ship] and our customers,” said Ashton. “Every time we re-invest in our company, our customers benefit from it. We continually try to improve because it’s the right thing to do for our employees and our customers.”

One thing can be known for sure about Bay Ship’s future, this company is one that is setting its sails towards a grand voyage.

Company Information

I N D U S T RY

Repairing, building of

commercial and military

vessels and superyachts

H E A D Q U A RT E R S

Alameda, CA

F O U N D E D

1977

E M P L O Y E E S

201-500

R E V E N U E

+1M

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Comprehensive LogisticsMasters of the Supply ChainThe 111-year-old company has certainly evolved over time, but it’s still the best is the business when it comes to supply chain management. Written by: Kevin Smead Produced by: Jason Wright

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Comprehensive LogisticsMasters of the Supply ChainThe 111-year-old company has certainly evolved over time, but it’s still the best is the business when it comes to supply chain management. Written by: Kevin Smead Produced by: Jason Wright

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While Comprehensive Logistics Co. Inc. (CLI) is more than 100 years old,

they’re anything but “old school.” CLI is an award-winning third-party logistics provider that gives businesses a lean and flexible supply chain, allowing them to manage the tumultuous world that is modern business.

The company was founded in 1903

by J.V. McNicholas, who started by handling general transport with a horse and cart. With the advent of new technologies, the business expanded and took on several different forms. CLI in its modern form was came to be in 1995 and continues to provide the high-quality logistics service its customers continue to expect.

CLI primarily focuses on the needs

Tonkin image / Shutterstock.com

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of manufacturers, distributors, and shippers. They serve needs from the most basic, to the highly complex. The company is proud of its flexibility, citing its lean size and process-driven culture as main factors in its ability to modify and adapt to meet ever changing needs.

Keeping costs low is also a major focus at CLI. The company is committed to Continuous

Improvement and operates a Change Management Request (CMR) process, allowing for streamlined and effective improvements.

CLI also puts the client in the driver seat, affording them full transparency and control of the supply chain. Using an online tool, CLI allows its clients to access and manage their end-to-end

Page 132: Supply Chain Digital - October 2014

Over 27 years ago, Peregrine, Inc. invented the Quad-Steer Tracker™ material-handling trailer. There is still only one Quad-Steer Tracker™. We have produced several types of trailers and accessories to fit thousands of applications. We do the dirty work and provide custom engineering at no cost to best fit your application while maintaining the highest standards for safety and ergonomics. Since cost drives your business, put low maintenance and product life expectancy on your bottom line.

8 0 0 - 7 7 7 - 3 4 3 3 | w w w. p e r e g r i n e - i n c . c o m5301 North 57th Street Suite 102 | Lincoln, NE 68507-3164 | Phone: (402) 466-4011 | Fax: (402) 466-1639

P O S I T I V E - T R A C K I N G T R A I L E R S

Time to go Lean.

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COMPREHENSIVE LOGIST ICS U S A

www.complog .com 1 3 3

supply chain, ensuring everything is running as expected. Also, clients are able to fully view and understand everything from CLI’s end as well, giving customers the highest level of confidence that there will be no surprises, monetary or otherwise.

With its 99.97% inventory accuracy rate, 99.4% on-time delivery rate, and less than five defects per million, CLI is one of the best in the business when it comes to logistics and supply chain management.

While these numbers are certainly impressive, stay tuned for our feature next month where we’ll break down what makes Comprehensive Logistics so successful.

Company Information

Comprehensive

Logistics Co. Inc. (CLI)

gives you the lean,

flexible supply chain

you need to compete

in today’s complex,

unpredictable business

environment. We are

a premier, non-asset-

based provider of

engineered logistics

services for complex

supply chains. As an

award-winning third-

party logistics provider,

we are experienced

in exceeding the most

stringent logistics

requirements.

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As a leader in the retail distribution segment, the company covers 100% of the domestic territory and is a benchmark in the country. Written by Flávia Brancato | Produced by Taybele Piven

Servindo bem “Serving well, alwayS”

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T he capacity to adjust itself to the market, innovation and professionalism are the praised and proudly acknowledged

features that help further strengthen the relations of Martins Atacado with its business partners and collaborators. Not many would have guessed over a century ago, that a small convenience store barely bigger than 100m^2 would become a benchmark in the Brazilian market.

As a leader in the bulk distributor segment, Martins Atacado’s experience carries close to 14 thousand consumer products to small retailers, being present in 100% of Brazilian municipalities. To serve its 350 thousand active clients, a fleet of more than 1,150 owned vehicles travel close to 40 million kilometers per year. For the success of such operations, the company relies on the professionalism and dedication of more than 5 thousand collaborators as well as 4 thousand professionals in the commercial area, including salespeople, independent commercial representatives and telemarketers.

Among the main missions of Martins Atacado is the focus on supporting, developing and offering opportunities for small entrepreneurs to realize their dreams, keep excellent relations with commercial partners, collaborators and the community, while establishing its brand with an ethical and responsible behavior, and basing every action strategy on values, responsibility and citizenship.

First warehouse facade Borges & Martins

Martins fleet of trucks from early 1970s

“The differential is that we work with specific solutions for each type of business and needs of the client”– Walter Faria, CEO

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Martins atacado

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Strategies and ServicesMartins Atacado upholds a mentality that supports the development of the Brazilian small retailer, through the best solutions in distribution, management, technology, and training and logistics. According to the CEO of Martins Atacado, Walter Domingues Faria, “the differential is that we work with specific solutions for each type of business and needs of the client. Beyond that, together with the strategy, sits innovation, which indeed is one of our values that leads to growth in the results.”

Additionally, the company offers business

Key People

Alair MartinsBoard of Directors President and founder of grupo Martins

Walter Faria Jr.CeO of grupo Martins

The company is managed by a Board of Directors composed of shareholders and external counselors. The management is done by a CeO, walter Faria, and a group of executives constituted by Directors in the sectors of purchasing, sales, data processing, human development and storage, other channels (telemarketing, e-commerce), financial, Smart supermarkets and logistics.

A modern system of radio frequency to control Martins’ stock

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plans to Brazilian retailers, providing opportunities to improve product category management through a commercial strategy and through excellent relations with the industry in general. From its foundation, Martins uses the experience accumulated in the market throughout the years to teach small and medium-sized retailers how to better understand the consumer and their business. Faria explains that “trainings go from how to present products in the displays and how to deal with the consumer, to how to do business accounting.”

One of the examples can be observed in the courses offered through the Martins do Varejo University (UMV). Deemed as a center of excellence in the development and application of technology focused on the growth of the retail industry, the projects offered by UMV apply management concepts focused on marketing and merchandising practices. in-class and distant courses are constantly offered, as well as technical seminars, in addition to store modernizing projects for small and medium-sized

Martins atacado

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Respeite os limites de velocidade.

www.man-la.com

MAN Latin America, fabricante dos Caminhõese Ônibus Volkswagen e Caminhões MAN.

MARTINS, obrigado por depositar tantaconfiança nessa parceria feita sob medida.

Este reconhecimento tambémmerece uma comemoraçãosob medida.

TrucksBuseswww.man-la.com

MAN Latin America, manufacturer of VolkswagenTrucks and Buses and MAN Trucks.

MARTINS, thank you for putting so muchtrust in this tailor-made partnership.

This recognition also deservesa tailored celebration.

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retailers, and to company clients. Since 1990, the Martins do Varejo University has already trained close to 300,000 people and modernized more than 15,000 stores throughout the country.

The regional division of Martins also allowed the company to utilize the concept of Management by Category, which consists of organizing and managing the correct supply of products at the point of purchase, according to the needs of the consumer. “We started acting in a segmented manner, with a more specialized sales team that thinks about the management of product categories from the supplier up to the sale by our client to the end consumer,” Faria says.

Since such concepts can be applied in all

Manufacturer of Volkswagen and MAN trucks and buses, MAN Latin America is the larg-est manufacturer of trucks and second largest manufacturer of buses in South America. In 2013, the company assured its 11th consecutive year of leadership in truck sales in Brazil, position also guaranteed in the first half of 2014, according to Anfavea.It is also the major export of such product. Customers in more than 30 countries in two continents benefit from MAN Latin America’s philosophy to offer tailor-made products. With resellers and importers located strategically through Latin America and Africa, MAN Latin America offers fleet owners and autonomous importers complete transport solutions that do not sum up only to vehicle sales, since, just as the sturdiness of its products, the company’s post-sale services is renowned.

www.man-la.com

Supplyer profile

MAN LAtiN AMericA

UMV training for small business

Martins atacado

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CONTEÚDOS

MAIS DE R$ 3.000EM CONTEÚDOS.*

MULTIPOSSIBILIDADES

ACESSE VÁRIOS APLICATIVOS NA MESMA TELA.

TELA SUPER AMOLED

EXPERIÊNCIA EM ALTA DEFINIÇÃO 4 VEZES HD QUE GARANTE CORES MAIS VIVAS E DEFINIDAS.

ULTRAFINO E LEVE

DESIGN E ESTILO AONDEQUER QUE VOCÊ VÁ.

Imagens meramente ilustrativas.*Saiba mais em www.samsung.com.br/conteudos.

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types of businesses, it has helped transform the micro and small retailer into a profitable and sustainable business. in addition to that, the project as a whole supports such retailers from the ambiance of the store and visual communication, to the development of services for better customer satisfaction.

TechnologyContinuing with innovation, Martins was a pioneer in the use of technology in the distributor retailer segment, using informatics in its internal management processes and in the automation of its sales force. For over a decade, the Martins group adopted demand forecast models, analytics intelligence and statistical modeling, and once completing the mobility of its salespersons, it implemented operations with netbooks, tablets, mobile phone and smartphones.

in order to act in synergy a true “industry of solutions for retail market” was created. Martins integrated Systems (Sistema integrado Martins

Samsung electronics of Amazon has has two industrial complexes, located in Manaus (AM) and Campinas (SP). The Company currently count with more than 12 thousand employees and it is present in the segments of smartphones, tablets, audio and video products (TV, DVD, Blu-Ray, home theater, mini systems e smart cameras), appliances, air conditioning, monitors, notebooks and printing solutions. In Brazil since 1986, Samsung continues to invest in Research and Development, as well as in modern and efficient production structures.

www.samsung.com

Supplyer profile

About SAMSuNg iN brAziL

Martins atacado

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– SiM) enables the development of the whole consumption chain. “Through SiM, we are capable of caring for the needs of the industry, its clients and its consumers in a cycle. We created a bank tasked with offering financial solutions (Tribanco), a cards company for consumer credit solutions (Tricard), an insurance broker, an e-commerce portal, and a telephone sales center (Telesales), among others,” Faria proudly says. in addition to that, regional Business Units were established in strategic areas of the country, focused on facilitating and perfecting the rendering of services to clients.

Today, the integration of informatics systems of the companies in sales, storage, distribution and trace of the fleet is so synergic that it is possible

Mercedes-Benz is the largest truck and bus manufacturer in South America. It started operating in São Bernardo do Campo, state of São Paulo, Brazil in 1956. Since then, over two million commercial vehicles have come out of the production line straight onto the roads of Brazil and over 50 countries to which Mercedes-Benz exports its products.Mercedes-Benz makes the engines, gearboxes and shafts used in its vehicles. The company has plants dedicated to the production of trucks (Atron, Atego and Axor), bus chassis and aggregates in São Bernardo do Campo (SP), trucks (Accelo and Actros) in Juiz de Fora (MG), and also a Parts Distributor and a Training Center in Campinas (SP).

www.mercedes-benz.com.br

Supplyer profileMercedeS-beNz brAziL

Martins’ sales team have access to tablets in their rotine

Martins atacado

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fi rst in intralogistics

Top Level Order Picking.

The new dimension in order picking - the EK-X.It is the king of order picking and the star in any narrow aisle warehouse: The vertical order

picker EK-X sets new standards in terms of performance, reach height, residual capacity and

ergonomics. With driving speeds up to 13 km/h and lift speeds of up to 0.4 m/s, the EK-X

enters into new dimensions of effi cient turnaround in warehousing. At a maximum reach height

of outstanding 12 meters the spacious, shock absorbing cabin also leaves the driver with more

freedom of movement than ever before.

www.still.co.uk/ek-x

Anzeige_EK-X_A4_ENG.indd 1 07.03.2014 10:42:36

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fi rst in intralogistics

Top Level Order Picking.

The new dimension in order picking - the EK-X.It is the king of order picking and the star in any narrow aisle warehouse: The vertical order

picker EK-X sets new standards in terms of performance, reach height, residual capacity and

ergonomics. With driving speeds up to 13 km/h and lift speeds of up to 0.4 m/s, the EK-X

enters into new dimensions of effi cient turnaround in warehousing. At a maximum reach height

of outstanding 12 meters the spacious, shock absorbing cabin also leaves the driver with more

freedom of movement than ever before.

www.still.co.uk/ek-x

Anzeige_EK-X_A4_ENG.indd 1 07.03.2014 10:42:36

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Technology is present at all times in the operation

to carry out 3 trillion information combinations, using them to increase the productivity and the competitiveness of the company. it is a common opinion among suppliers, mostly multi-national companies, that the application of technology in the logistics of Martins has no equivalent in the market. in 2009, the Gartner Group – one of the biggest business consulting firms in the world—acknowledged Martins systems as one of the best Bi implementations (Business intelligence) globally. in the end, the action philosophy of the Martins companies is to integrate production and consumption through a quality relations system that trains its members to cooperate and compete, acting according to sustainability principles, and

Martins is one of the few companies in Brazil to have their own bank, Tribanco

Martins atacado

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generating consistent results for all stakeholders.

Instituto Alair Martins (IAMAR)Created in 2005, iAMAr, through the zAPe – Entrepreneurship Virtues Program, acts jointly with youngsters and teenagers, developing their potential to build visions of the future and turn them into reality through Education for Entrepreneurship. This way, it contributes to their growth in the personal, social and product fields, as well as in the promotion of an environmental preservation culture. iAMAr has strategic partnerships with instituto Ayrton Senna and Junio Achievement, both with national coverage. it foments volunteering with its collaborators through the Vem Ser program. All these projects and programs arise from the values of Alair Martins himself, which are absorbed by the collaborators of the company:

IAMAR develops programs to the community

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humility, justice, loyalty, innovation, discipline, integrity, love for what they do, and the idea that together, everyone is worth more. These values are passed onto those who relate to the group and are almost a religion among its collaborators.

Highlights of the Journey1994 - in addition to being among the 500 Best and Greatest Companies in Brazil (Exame magazine), Martins hits the benchmark of r$ 1 thousand million invoicing.

URN Camaçari (BA) warehouse

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1996 - Opening of the new Di-3 Storage Module, with advanced automation automated operation system and capacity for 26 thousand pallet positions.

2000 - The Smart Network is opened, to promote the profitable development of the small and medium-sized retailer.

2002 - eFacil, the Martins e-commerce (B2C) site, is up. Tricard is created, a company focused on the development of credit cards and services for consumers.

2005 - instituto Alair Martins (iAMAr) is created to develop the entrepreneurial potential in youngsters through social-environmental and

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COPOS E TAÇAS NADIR, A MELHOR COMPANHIA PARA A SUA CERVEJA.

www.nadirfigueiredo.com.br facebook.com/nadirfigueiredo

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anuncio_prazeres_da_mesa2.pdf 1 05/09/14 14:11

eFácil is a communication tool between Martins and customers

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cultural initiatives.

2010 - Three more regional Business Units (UrNs) are inaugurated: Jaboatão dos Guararapes (PE), Camaçari (BA) and Ananindeua (PA), totalling five units with João Pessoa (PB) and Manaus (AM).

2013 - Martins closes year 2012 with an 11% growth and revenues amounting to r$ 4.4 thousand millions. it moves towards its 60 years with a record: r$ 2 thousand millions billing during the first semester, the greatest ever.

Company Information

i n d u s t ry

Supply Chain

h e a d q u a rt e r s

Uberlândia, Minas Gerais

f o u n d e d

1953

e M p l o y e e s

5.300

p r o d u c t s /

s e r v i c e s

Wholesale distributor – food, electronics, beauty, cleaning, construction material, IT.

r e v e n u e

US$ 2 billion

M a n a g e M e n t

Walter Faria, CEO

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eFácil is a communication tool between Martins and customers

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More than ever before, the key to efficient production lies in implementing energy-saving measures. These range from the use of energy-efficient drives to the shutdown of complex pro-duction processes. In the past, this shutdown had to be done manually, making it very time-consuming. Today, a standard-ized data interface ensures that power consumers can be

switched off centrally in a coordinated and risk-free manner, thus enabling plant operators to achieve energy savings of up to 80 percent during production pauses. We would be delighted to provide you with information about our portfolio of energy-efficient products, solutions and service, which will enable you to quickly achieve lasting gains in efficiency.

Answers for industry.

siemens.com/energy-efficient-production

Productive plants don’t have to run around the clock, they just have to run efficiently.Realize the potential of energy-efficient solutions more quicklyE2

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