Keys to the Kingdom

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Saudi Arabia Supply Chain Intelligence Report: How logistics functions are managed by KSA companies.

DB Schenker's

Saudi Arabia has been highlighted as a major component in DB Schenker's continued expansion throughout the Middle East. Although the international logistics company has previously been represented by a number of partners in the Kingdom, it established Schenker Saudi Arabia LLC as a separate trading company last month, supported by a central office in Riyadh and additional facilities in Damman, Jeddah and Al Jubail. "Schenker Saudi Arabia LLC is fully integrated into DB Schenker's worldwide network and offers a full range of logistics services.

A major focus of our activities lies in the global project logistics business and we can now offer high-quality integrated solutions from a single source in this important Arab country," says Dr Detlef Trefzger, board member for contract logistics and supply chain manager at Schenker AG. "There are also plans to set up cooperation agreements to deepen and expand the business."

WARID (Warehousing and Distribution Holding Company)

As a relative newcomer to Saudi Arabia's logistics industry, WARID (Warehousing and Distribution Holding Company) was established in 2008 to capitalise on the growing number of companies that were outsourcing their supply chain operations in the Kingdom. A joint venture between Construction Products Holding Company (CPC) and Zahid Holding Group, WARID has focused on developing its brand presence in 2009 and plans to establish a network of warehousing facilities throughout the Kingdom.

"There are many opportunities in Saudi Arabia's logistics industry and we intend to align our activities with the Kingdom's new economic cities and logistics hubs," reveals Faysal Alaquil, director of business development at CPC. "WARID will provide a range of warehousing, transportation and logistics solutions for a broad customer base in the construction, industrial and trading sectors, not only in Saudi Arabia but throughout the Middle East and North Africa."

Kuehne + Nagel

Kuehne + Nagel crossed an important milestone in 2008 after becoming the first international logistics provider to operate a wholly-owned national subsidiary in Saudi Arabia. "This development has provided us with significant strategic and operational advantages," says Werner Kleymann, regional manager of Kuehne + Nagel in the Middle East. "Customers can fully leverage the quality and scope of our comprehensive portfolio of forwarding and logistics services."

SEKO

Back in January 2008, the US-based logistics company SEKO announced plans to increase its Saudi Arabian operations, with offices in Jeddah, Damman and Riyadh. "Saudi Arabia adds an integral element to our global network," says William Wascher, CEO of SEKO. "With increasing volumes of imports into Saudi Arabia and exports to worldwide destinations, the office is well positioned to take advantage of this flourishing trade zone and will greatly benefit from the country's growing infrastructure."

Agility

Compared to a number of developed markets around the world, Saudi Arabia's logistics industry has been relatively unscathed by the global recession, prompting a sharp increase in investment from warehousing and transportation companies. Agility, for example, has revealed plans to develop its network of storage facilities throughout the Kingdom, with warehousing being constructed in key cities such as Dammam and Jeddah. "We have a plan to establish a network of warehousing facilities and transportation assets across KSA that are capable of offering local, regional, and global solutions," states John Gould, the company's CEO in Saudi Arabia.

Hala Supply Chain Services

Emerging as a leading player in Saudi Arabia's logistics industry, Hala Supply Chain Services (HSCS) has helped to showcase the benefits of outsourcing warehouse operations. Indeed, despite the global recession, Hala actually claims to have benefited from current market conditions. "Looking for opportunities from the downturn is definitely possible because customers are looking to reduce their supply chain costs," says Pieter Spaarwater, business deployment manager at HSCS. "What sets Hala apart is a proud history that is firmly rooted in Saudi Arabia, access to global best practices and our team of highly skilled and experienced professionals."

DHL Supply Chain

DHL Supply Chain is taking a fairly conservative approach towards the economic slowdown and has reviewed variable scenarios for its Saudi Arabia operations. Although the company is still targeting growth, it has become more selective in the opportunities that it pursues, according to Nabil Khojah, managing director in Saudi Arabia.

"The local economy is still very strong and companies that may not have previously considered going into Saudi, have now changed direction and are trying to enter, because it is viewed as a market of great untapped business potential," he says.

Namma Cargo Services

With over 25 years of experience in Saudi Arabia, Namma Cargo Services can safely be considered a veteran in the supply chain sector, with nine offices throughout the Kingdom. "We are strong national company and have an exclusive agreement with DHL Global Forwarding," says CEO Wadeea Derar.

"Our workforce is well versed with the national market and we have a loyal and trusted customer base, with tremendous goodwill among our clients varying from project EPC companies and commercial clients to telecommunication, manufacturing and trading companies. This trust and goodwill came after exerting a lot of hard work with passion and sincerity."

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