Importance of Supply Chain Excellence To Push Downstream Success

Transcription

1 GPCA Supply Chain Conference 2016 Importance of Supply Chain Excellence To Push Downstream Success Eng. Saleh I. Al-Rasheed Director General MODON

2 Content 1 About MODON 2 Driving Downstream Industrial Growth 3 Driving Downstream Supply Chain & Logistics Development 2

3 About MODON

4 About MODON Vision To provide distinctive and unique industrial cities and technology zones of the highest quality throughout the Kingdom Mission To establish, develop and operate industrial cities and technology zones in partnership with the private sector, enabling us to provide integrated services that meet the needs of investors, contribute to community development, and preserve the environment. 4

5 About MODON MODON is the responsible organization for the management and development of industrial cities in KSA with integrated infrastructure and services History Established by the Council of Ministers, KSA. Founding year: 2001 Real Start: 2007 Value Proposition Offer residential commercial land for rent. Provide transportation and logistic services in selected cities. Facilitate reduced transaction cost for investors. Develop public/private sector partnerships. Develop security, safety and firefighting services in the cities. Role Independent self-funded public organization Responsible for development infrastructure & Services and management of the industrial cities in the Kingdom. Success 35 existing & underdevelopment cities. 2,900 + producing factories in the existing industrial cities. Investment exceeding 500 billion riyals. More than employees 5

6 MODON 2020 Focused Initiatives About MODON MODON Strategic Initiatives Building selected cities to be full service residential neighborhoods (housing, commercial centers, schools, institutes, medical centers... etc) through partnership with the private sector and the government bear the first phase of these projects. Strengthen the development of MODON oases to be areas of technology + business and industry centers. ( 3-5 oases). Provide logistical services in selected industrial cities, by linking them to various land and air transportation networks. Encouraging specific and concise value-added industries (such as gas, energy, mining, medical, transportation, etc...). And convert the existing cities and develop new cities to this trend. MODON to be the largest developer of industrial lands in the Kingdom targeting downstream industries. Maximize the Kingdom's comparative advantage and ensure balanced growth to the national economy from global fluctuation of oil prices via industrial diversification Achieve progress in adoption of technology and development of skills via the development of SME's and other traditional industries Attract Saudi & foreign investment to increase the value added of the targeted industries and promote industrial integration Industrialization Vision for the Kingdom (National Industrial Strategy 2020) 6

7 About MODON Industrial Environment 7

8 Driving Downstream Industrial Growth

9 Driving Downstream Industrial Growth Riyadh 2 Industrial City Jeddah 1 Industrial City 9

10 Industrial Cities Growth Before MODON After MODON 3 Industrial Cities/year Industrial Cities/year 0 10

11 Factories Growth Before MODON After MODON Factories/year Factories/year

12 Service Commitment التطور بتقديم الخدمات Initial Review Before MODON Payment 26 Days Request Completion Days After MODON Days Providing Product Internal Process 12

13 International Partners التطور بتقديم الخدمات 13

14 Local Partners التطور بتقديم الخدمات 14

15 Logistics Partners التطور بتقديم الخدمات 15

16 35 Industrial Cities التطور بتقديم الخدمات Access to Market Promising Cities vs. Populated Cities Access to Suppliers Impact on Environment Logistics Infrastructure Impact on Society Benefits of Industrial Cities 16

17 Driving Downstream Supply Chain & Logistics Development

18 1 Free Zone Study MODON Key الخدمات Supply Chain بتقديم & Logistics التطور Initiatives MODON initiated a Free Zone Study Examined the benefits of Free Zones to economic development Considered examples of best practice globally and nearer home Placed in the context of Saudi Arabia (how, where, who?) Made recommendations to develop Free Zones in Saudi Arabia Incorporated as part of CEDA economic improvement plan 18

19 2 Connecting Industrial Cities by Rail (1/2) MODON Key الخدمات Supply Chain بتقديم & Logistics التطور Initiatives MODON strategy to connect IC s with ports/markets etc.: Identified key industrial cities to connect by rail / MOU with SAR Developed the Saudi multimodal logistics terminal (MLT) concept Listened to stakeholders and developed the MLT service scope High level design and shortlisted our MLT partner / operator (RFI) Development cost and revenue stream feasibility / re-evaluation 19

20 2 Connecting Industrial Cities by Rail (1/2) Current planned MODON MLT s Current & planned Rail Co Dry Ports 20

21 3 Improving Logistics Quality in Saudi Arabia MODON Key الخدمات Supply Chain بتقديم & Logistics التطور Initiatives MODON strategy to connect IC s with ports/markets etc.: Listened to manufacturing customers to understand their needs Listened to LSPs to understand their needs (interviews / workshop) Create an operating environment and incentives to attract LSPs Developed design, build and operational warehouse standards Developing partnerships with high caliber innovative LSPs 21

22 4 Import & Export Study (1/2) MODON Key الخدمات Supply Chain بتقديم & Logistics التطور Initiatives MODON and CEDA initiated the import/export study in 2015 Study current export & import processes & run test consignments Interview stakeholders (industry-wide and government) Conduct gap analysis with best practices Evaluate exports & imports challenge Frequency and impact 28key solutions identified & classified by responsibility 22

23 Low Medium High 4 Import & Export Study (2/2) MODON Key الخدمات Supply Chain بتقديم & Logistics التطور Initiatives KSA Import & Export Process and Infrastructure Assessment (Management Summary) Consolidation Solutions Evaluated improvements opportunities -Preliminary Report- Complexity 28 Phase 3 Strategic 9 2 Later Phase Solutions in phase in Phase 2 9 & in Phase 3. 4Monitor Quick Wins Phase 1 Low Medium High Benefit Incorporated into CEDA economic improvement plan SLC: Shelf Life Certificate CoO: Certificate of Origin 23

24 MODON Design of Ready-Made Warehouses التطور بتقديم الخدمات MODON Key Supply Chain & Logistics Initiatives 24

25 In Conclusion: التطور بتقديم الخدمات MODON Key Supply Chain & Logistics Initiatives MODON is leading downstream industrial growth in Saudi Arabia We listen to our stakeholders to understand their needs We search for best practices and keep raising the bar We initiate change to increase efficiency and competitiveness MODON values the importance of supply chain excellence to achieve downstream success and is happy to its development MODON values the importance of supply chain excellence to achieve downstream success and is happy to lead its development in Saudi Arabia 25

26 Thank You