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Leading the way to a new logistics landscape

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Leading the way to a new logistics landscape. Image: LogiPoint
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LogiPoint set for phenomenal expansion, buoyed up by Saudi Arabia’s farsighted ‘Vision 2030’ ambitions

LogiPoint, operating a network of integrated Logistics Parks and notably the first and largest bonded and re-export zone Saudi Arabia, is all set to expand its investment base in the Kingdom by building capacities and broadening its presence and services in 2020.

2020 is slated to become a turning point year for LogiPoint as they seek to enlarge thier footprint, widen product offerings and expand operations across Saudi Arabia. LogiPoint strategy envisions the provision of a high degree of professionalism, high efficiency, high performance standards, streamlining systems, developing the IT infrastructure, building capacity and portfolio of services.

The multi-award winning LogiPoint is a subsidiary of Saudi Industrial Services Co– SISCO, a joint stock company listed on the Tadawul, the country’s Stock Exchange.  Thanks to rapid takeoff, the company is witnessing heavy demand for its warehousing solutions, both for pre-built and for the ‘Built-to-Suit’ facilities.

According to LogiPoint, this projected and cascading demand will drive LogiPoint’s investments to acquire additional warehousing space of about 55,000sqm and add substantially to the number and capacity of the warehouses.

LogiPoint further elaborated that in its quest to extend across the Kingdom, LogiPoint will invest considerably in developing new state-of-the-art Logistics Parks and completing the outstanding construction projects in The Logistics Park (Modon Jeddah) in 2020.

The company has recently signed a long-term agreement with Aramex, a leading global provider of comprehensive logistics and transportation solutions, for the construction of ‘Build-to-Suit’ facilities for Aramex’s Western Province ground operations.

LogiPoint currently has a total of 72,000sqm multipurpose warehousing area customised to client needs, fully equipped with sophisticated features such as: round-the-clock temperature monitoring with remote alert and battery back-up; redundant HVAC systems to ensure continuous operation; security systems with video surveillance and alarms; epoxy-sealed floors to ensure dust-free environment; full GMP and GDP compliance; pest control procedures; quality control processes and many more.

In addition, new buildings of about 55,000 Sqm are being built, which will be ready in 2020-21.

One of the landmark new services that LogiPoint introduced last year was the cross-border multimodal movement for shipments into the GCC. Eastbound shipments from the Western origins can now be discharged in Jeddah and moved via bonded trucking to their final destinations in the GCC.

This helps reduce the transit time for the imports into the region by approximately seven to 10 days and introduces unprecedented efficiencies for the regional logistics sector. On the flip side, West-bound shipments originating from the East can now be discharged on the regional ports in the Arabian Gulf on the East, and moved under bond to Jeddah for onward multimodal movement to final destinations in Africa, Europe and the Americas.

LogiPoint is constantly re-evaluating its value-added services for its clients to see how it can bring greater new efficiencies, cost savings and better profits to their business. The Regional exporters can now avail our value-added services to serve their export markets in the Mena region and beyond when they use LogiPoint as their regional logistics hub.

Targets

LogiPoint’s contribution to the Saudi market has been remakable. Twenty years ago, when it commenced operations, the bonded zone was an unfamiliar concept to the logistics industry in the Kingdom. Today, the industry is able to plan, develop and deliver highly sophisticated logistics solutions to the market because of the initiatives the company has been pioneering and introducing over the years.

In this way, LogiPoint has attracted extensive new investments into the Kingdom, enabling the freight forwarding and logistics industry to offer cost-effective and efficient services to the market.

LogiPoint continue to see their role as one of making active contribution to the ‘Saudi Vision 2030’ through enabling the logistics and supply chain industries.

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CEVA Logistics wins five-year contract with Airbus in Hamburg

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CEVA Logistics wins five-year contract with Airbus in Hamburg. Image: Wikipedia/ Jim Grossmann
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In a further strengthening of its international aerospace business, CEVA Logistics is pleased to announce it has been awarded a five year contract to manage spare parts and components for Airbus at the aircraft manufacturer’s site in Hamburg, Germany.  Effective February 2020, CEVA will become responsible for consolidating spare parts and components at the site from other locations across Europe, including Germany, France, Spain and the UK.

Improvement Projects

At the 21,000 sq metre facility, CEVA plans to implement more than 20 improvement projects to transform and improve the efficiency of the site over the next five years.  Dedicated to spare parts kits, the facility is expected to expand in the coming years to cater to Airbus’ own production development plan.

Quality and Value-Added Services

The stock that will be managed is divided into shelving, pallets and large scale parts with an average of 31 kit line items. The core process are Inbound and require 100% quality, put away, picking of materials and advance kitting with outbound and special consolidations projects being available to meet special airline requirements. The CEVA team will put particular emphasis on quality and value added services.

Service performance for Airbus will be improved across the board with new KPIs introduced year on year. Helping the customer with new challenges such as additional warehouse units and an improvement project strategy for the following years will also be areas of focus.

Says CEVA’s CEO, Mathieu Friedberg: “CEVA’s exceptional capabilities in aerospace logistics have been recognised by Airbus with the awarding of this long-term contract. Our two companies have successfully worked together on other projects previously and the depth of CEVA’s specialist knowledge in this industry combined with its operational and delivery solutions have been key to securing this new business.”

CEVA has taken on some 250 staff at the site under TUPE.

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A.P. Moller – Maersk to acquire the warehousing and distribution company Performance Team

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A.P. Moller - Maersk to acquire the warehousing and distribution company Performance Team. Image: Maersk
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A.P. Moller – Maersk announces that it has reached an agreement to acquire Performance Team, a US-based warehousing and distribution company, to further strengthen its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers. As a leader in North America Warehousing & Distribution, Performance Team specializes in B2B and B2C distribution solutions within retail, wholesale and e-commerce with 24 warehousing sites. It has a track record of profitable growth of 17% per year for the last four years, and revenue for 2019 of USD 525m.

“With this acquisition we invest in premium operational capabilities to significantly boost our existing Warehousing & Distribution offering. This will strengthen our ability to deliver products and solutions that meet our customers’ end-to-end supply chain needs. With its strong platform, Performance Team is a good match for A.P. Moller – Maersk as they complement our current Warehousing & Distribution proposition to customers in North America and will enable future growth,” said Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller – Maersk.

Maersk is targeting the Warehousing & Distribution component to offer more supply chain options and flexibility to its Ocean customers. The global size of the Warehousing & Distribution sector is estimated at more than USD 200bn and for North America it is USD 50bn.  There is a significant growth opportunity for 3rd party Warehousing & Distribution players as only a small part of the Warehousing & Distribution sector in North America is currently outsourced and e-commerce is growing 12% annually.

“We are going all the way for our customers, offering new ways to optimize their supply chains, grow their e-commerce business and find warehouses and distribution options. Performance Team’s expertise, market reputation and scalability will create significant performance gains for our customers that grow and complement our existing Maersk Warehousing & Distribution product in North America. We are especially excited to strengthen our e-commerce fulfillment capabilities since many of our retailers are looking to grow online retail sales in 2020 and beyond,” said Narin Phol, Regional Managing Director of Maersk in North America.

Performance Team is a family run business that began operations in 1987 in California, US. Today, the company operates 24 warehousing sites covering 800,000 square meters across strategic supply chain locations.

“Joining a global container logistics leader like A.P. Moller – Maersk is the ideal fit for Performance Team’s future growth, our customers and associates. Maersk has a significant presence here in the US. They have a continuous improvement mindset like ours and together we can clearly deliver attractive logistics solutions that make our customers more competitive while ensuring our employees grow with the business. Our focus will continue to be customer-centric and we are excited about delivering results for years to come,” said Craig Kaplan, CEO of Performance Team – who will remain CEO of Performance Team once the transaction closes.

In North America, Maersk Warehousing & Distribution is based in South Gate, California and has a regional network of 20+ facilities strategically located in the United States and Canada that offer warehouse and distribution solutions, including domestic consolidation, e-commerce fulfillment, inland drayage, facility and yard management and other value-added services.

The value of the transaction is USD 545m (EV) including IFRS 16 lease liabilities of around USD 225m. Performance Team 2019 EBITDA adjusted for IFRS 16 effects is estimated at USD 90m. The acquisition is subject to regulatory approvals and the transaction is expected to close 1 April 2020. Until obtaining required regulatory approvals and closing of transaction, Maersk and Performance Team remain two separate companies and thus will do their business as usual.

Profile of the combined entity:

Performance Team Maersk Warehousing & Distribution North America Combined business

Sites

24

22

46

Area (Square meters)

800,000

563,000

1,363,000

Turnover (USD milion)

525m

406m

931m

[1] Transport Intelligence (2019), Global Contract Logistics

[2] Transport Intelligence (2019), Global e-commerce Logistics

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Logistics & Supply Chain

PlaceMakers transforms building supply distribution in New Zealand with Descartes

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PlaceMakers transforms building supply distribution in New Zealand with Descartes. Image: Pixabay
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Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, announced that PlaceMakers, New Zealand’s leading supplier of building materials and hardware, is using the cloud-based Descartes Route Planner™ solution to centralize distribution planning operations across the country.

The Bestrane Group, a Descartes ‘United by Design’ partner in New Zealand, implemented the solution to automate route planning and execution to better serve PlaceMakers’ more than 300,000 retail and trade customers.

“We sought to transform our customer delivery experience by moving each of our 63 branches from dispatching and executing deliveries with multiple logistics services providers to centralized logistics planning and our own fleet,” explained Wayne Armstrong, Business Transformation Manager at PlaceMakers. “With the Descartes deployment almost complete, we’ve seen a 40-50% increase in delivery satisfaction and achieved significant financial savings. We’ve also reduced inbound calls by 16%, increased load utilization by 13% and reduced loading times by 14%. It’s a world-class, end-to-end solution that is helping us provide an industry-leading customer experience.”

Descartes Route Planner is a cloud-based solution that helps improve operational efficiency and the customer experience through optimized route planning and execution. It supports companies with dynamic delivery environments including same-day delivery by offering flexible, optimal, and reliable time windows and delivery options. With an integrated GPS-based mobile application, the solution has the capability to coordinate drivers, dispatchers and call centers to help ensure that routes are executed according to plan and exceptions are handled efficiently.

“We’re pleased to support PlaceMakers’ initiative to dramatically improve its customer experience, delivery productivity and agility,” said Lee Karlinsky, Senior Vice President, Emerging Markets at Descartes. “Leading companies, like PlaceMakers, are seeing the customer service differentiation, cost savings and improved operational effectiveness that centralized route planning combined with mobile applications for execution can provide.”

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