Fully Automated e-commerce DC in KSA

Savoye, a leading global warehouse automation integrator and software publisher in the Middle East, partnered with CJ Logistics, a 3PL services company operating for iHerb, the leading global eCommerce retailer for health and wellness, in Riyadh, Kingdom of Saudi Arabia (KSA), to deliver world-class automation solutions for its e-commerce Global Distribution Centre (GDC). The strategic partnership is a significant development for Savoye in KSA, following its recent expansion into the region.

Under the terms of the partnership, Savoye will implement a fully automated fulfilment center, the first-of-its-kind in the region, which includes a X-PTS Goods-To-Persons (GTP) shuttle system, Warehouse Execution Software (WES), Zone to Zone fast picking system and automated orders packing to process 15K orders per day. Savoye’s flagship X-PTS shuttle technology will be central to the project, serving as the foundation for an effective and ergonomic Goods-To-Person solution.

Savoye’s high-end solution is seamlessly designed to reduce picking and packing time by utilizing Savoye’s highly ergonomic GTP stations for prompt high-speed picking operations. In addition, Savoye has designed fully automated packing lines that are in charge of closing and labeling the prepared orders before automatically sorting them into the various shipping lanes. The latest agreement marks a significant milestone for all parties as they actively work towards transforming the Middle Eastern supply chain industry by boosting productivity and encouraging innovation.

Alain Kaddoum, Managing Director of Savoye Middle East, stated: “We are proud to embark on this journey with CJ Logistics and iHerb to further explore the Saudi Arabian market with our tailored automated solutions. This partnership holds great significance as it demonstrates our dedication to advancing the supply chain and logistics industry. Our combined efforts are also focused on meeting the industry’s expanding needs while advancing Saudi Arabia’s Vision 2030 and the Health Sector Transformation Program. We thus look forward to making significant strides together and establishing new benchmarks for automated solutions in the region.”

The partnership is in line with the Health Sector Transformation Program, a part of Saudi Arabia’s Vision 2030, which aims to restructure the healthcare industry into a comprehensive, efficient, and integrated system based on the wellness of people and the community at large. Using Savoye’s automated solutions, logistics companies in the health and wellness sector can easily meet evolving client requirements, thereby supporting the program’s goals and driving the continued development of healthcare services in Saudi Arabia.

iHerb chose KSA as its base in the Middle East due to its increasing demand for health and wellness products, as well as the promising business environment. iHerb aims to enhance distribution of its products across the region to meet the local growing demands. Through the partnership, CJ Logistics will integrate Savoye’s cutting-edge automated solutions to optimize its operations and boost productivity to advance this goal.

NEOM and DSV Establish Logistics Joint-venture

NEOM and DSV have announced a $10 billion exclusive logistics joint venture to support the development of the ambitious projects taking shape in NEOM, Saudi Arabia. The partnership will focus on providing logistics services for NEOM in the coming years.

Under the agreement, the joint venture will provide end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure as well as transport and delivery of goods and materials within NEOM.

NEOM will hold 51% of the joint venture with DSV holding the remaining 49%.

NEOM envisions unparalleled demand for construction logistics through to 31 December 2031, with sustained growth in non-construction logistics thereafter. In addition to its impact on the logistics landscape, the venture is expected to boost the Saudi economy, through infrastructure development and creating more than 20,000 job opportunities.

Nadhmi Al-Nasr, CEO of NEOM, said, “the projected demand in both construction and non-construction logistics will make NEOM one of the largest customers in the world, and this partnership allows NEOM to create value from its demand. Working alongside one of the world’s leading logistics companies, the joint venture with DSV will build on expertise and know-how to drive innovation and sustainability throughout the logistics value chain. The economic benefit to this partnership will not only provide tens of thousands of jobs, but it will also enable growth to capture local and regional market share. It’s a living example of Saudi Vision 2030 in action, fostering job creation and building a future-leaning economy.”

Jens Bjørn Andersen, Group CEO, DSV, commented, “NEOM is one of the largest and most complex projects in the world. It provides a unique opportunity for DSV to support a development that is at the forefront of innovation, technology and digital transformation. DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity for us in the region and we look forward to working with NEOM Company and bringing our logistics capabilities to the table.”

NEOM and DSV are committed to driving innovation and will allocate a portion of the JV’s revenues to foster the development of ground-breaking technologies and commercialise new sustainable next-generation logistics solutions. The vision extends further by establishing a dedicated innovation centre at NEOM’s clean and advanced manufacturing hub, Oxagon.

The new joint venture is a significant milestone demonstrating NEOM’s commitment to revolutionising Saudi Arabia’s logistics sector and paves the way for pioneering sustainable logistics solutions, marking a new chapter in its journey towards realising Vision 2030. Completion of the partnership is awaiting customary regulatory approvals, which are expected to be obtained in the second quarter of 2024.

CoGri opens Saudi Arabia office

As part of its global expansion plans, CoGri Group has recently opened a new office in Saudi Arabia, adding to its existing facilities in Dubai. The new company formation allows all work in the Kingdom to be handled directly, as opposed to outsourcing it through CoGri Dubai or its partner, Osis Group, led by Nikos Marketis in Qatar, as previously was the case. Thus, Cogri can expand outside of this continuing long-term partnership with Osis in the Middle East. The newly opened office, combined with the appointment of talented staff members, brings the expected CoGri standards of excellence to KSA.

CoGri Middle East General Manager, Thomas Hanks, said: “After two years of planning (delayed due to COVID travel restrictions), we are happy to announce the opening of CoGri KSA alongside our Saudi partner. We are also delighted that within the first month, CoGri KSA has been awarded floor construction, wire guidance, and repair projects.

“On the floor construction front, we were awarded three projects totalling around 110,000 sq m. The first was for a multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories, among other goods and home services in Riyadh. This is now completed.

“We immediately moved on to the next job in Riyadh for one of the largest private owners and developers of warehousing and light industrial parks in the Middle East, Africa, and Asia. This is currently underway.

“After this, we will be working in Jeddah for a 15,000 sq m freezer store project. The Saudi market remains positive, and CoGri KSA has several large projects on the horizon.”

New appointments

To maintain the high level of service both expected and delivered to Saudi Arabia, CoGri KSA has strengthened its team with the recruitment of Hisham Mahdi (pictured, left), who joined as Business Development Manager, overseeing operations in Saudi. Also, Fahad Al Wani (pictured, right), who joined as Civil Engineer.

Commenting on his new role, Mahdi said: “2021 was an excellent year for CoGri in Saudi Arabia and we look forward to building on this success in 2022. With the growing distribution and logistics industry in Saudi, there is an increasing need for CoGri’s services and we’re glad to meet this demand. Our customers understand the importance of a well-finished floor fit for purpose; with CoGri’s experienced team and international reach we are able to deliver successfully.”

Mahdi joins from a Saudi-based main contractor where he was a Business Development Manager and has had various interactions with CoGri in the past. He previously worked in the oil fields of China and Oman for an oil field service company. Mahdi has a Saudi and Irish background, spending time in both countries whilst growing up, as well as studying in Australia.

Al Wani joined CoGri KSA from a large racking supplier in Saudi, bringing along extensive knowledge and experience of working with both good- and poor-quality floors whilst installing racking systems. He, therefore, fully understands the importance of a ‘fit for purpose’ floor.

Commenting on their appointments, Hanks said: “The establishment of CoGri KSA and initial staff appointments is a long-awaited move for our Middle Eastern operations. The Saudi market is one which we feel can be seriously developed and deserves our full attention with a Saudi based establishment. Hisham and Fahad have an existing knowledge of the industry within Saudi which will act as a good starting point from which to help in the growth of CoGri KSA”.

FedEx grows to meet Saudi Arabia demand

FedEx Express has announced its transition to a direct-serve presence in the Kingdom of Saudi Arabia to meet the country’s growing international shipping demands. The company will invest more than SAR1.5bn (c.US$400m/€345m) into the country’s economy over the next 10 years through talent management and local operations and infrastructure.

This investment will reaffirm the company’s commitment to the country’s non-oil economic growth, in line with Saudi Arabia’s Vision 2030 goals, and the ‘National Industrial Development and Logistics Program’ which seeks to increase non-oil exports to more than SAR1tr (c. US$266bn/€230bn).

FedEx Express has been facilitating trade in Saudi Arabia since 1994, offering international solutions and connectivity through local service providers, most recently through SAB Express. This announcement and the company’s direct presence in the country will further help local businesses trade with ease and expand their reach into the more than 220 countries and territories FedEx serves.

Jack Muhs, regional president of FedEx Express Middle East, Indian Subcontinent, and Africa, said: “Our customers will be able to take advantage of FedEx digital tools and a wider service portfolio. This strategic expansion in the Kingdom will help Saudi-based businesses connect to new markets and customers around the world, supporting Saudi Arabia’s Vision 2030 goals to diversify the national economy.

“In addition to our commitment to the Saudi economy, we see FedEx Express playing an important role in developing the small and medium enterprise environment in Saudi Arabia, which forms the backbone of the economy, and represents 99% of Saudi Arabia’s private sector.”

FedEx Express will continue to work closely with SAB Express to provide pickup, delivery, and customs clearance services across the country.

Sheikh Salah Al Bluewi, chairman of SAB Express, said: “We’re happy to continue supporting FedEx Express in Saudi Arabia with their growth journey, and join them in playing a critical role in developing Saudi Arabia’s logistics infrastructure, in line with the country’s coordinated efforts and strategy in diversifying the economy. The logistics sector is a key contributor towards employment, investment, and overall economic growth in our nation.”

Under Saudi Vision 2030, the Kingdom is committed to increasing its total air cargo capacity. With nearly 50 years of experience, specialised services, and advanced technology solutions, FedEx will support the trade requirements of the healthcare, e-commerce, technology, energy, aerospace, automotive, and petrochemical sectors.

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