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State of Supply Chain Education - 2011

Middle East Series


B2G Consulting
Supporting Growing Markets

2011 B2G Copyright - Middle East Series

Table of Contents

00
00

Table of Contents

01

Introduction

02

Executive summary

Acknowledgements

Current outlook of Supply Chain Management in the Middle East

03
3.1

Supply Chain Performance in the GCC Countries

10

3.2

Supply Chain Issues and Solutions: Results from B2G Survey

12

04

Interview ZAFCO Developing a best-in-class cross-functional supply chain


Organization

14

Supply Chain Challenges in the Middle East: A Focus on Manpower

21

4.1

Definition of Main Procurement and Supply Chain Positions

22

4.2

Current Recruitment Trends in the Supply chain Sector

24

Interview BATELCO Managing Supply Chain Talents in Changing Technological Environments

28

Overview of Educational Programs in the SCM Sector

31

05
5.1

Overview of the GCC Countries educational systems


Interview Middlesex University Opening a new MBA Program specialization in Operations and Logistics

2011 B2G Copyright - Middle East Series

33
35

Table of
Contents
5.2

University Supply Chain Programs


Interview Bahrain Polytechnic Preparing Future Logistics Professionals

5.3

Certifications
Interview Supply Chain Council Bringing a world class supply chain organization to North Africa & Middle East

40
44
51
54

5.4

Training Centers for professionals

59

5.5

Corporate Trainings

61

06

Interview Bahrain Water Bottling & Beverage Empowering a supply


chain organization by transforming each employee into a general manager

63

Future Outlook for the Supply Chain Workforce

67

6.1

Future outlook for the Supply Chain sector

68

6.2

Future demand for Supply Chain professionals

69

6.3

New comers in the Supply Chain job market

72

Interview GARMCO Deploying Lean Six Sigma Methodologies in the


Aluminum sector

73

07

Conclusion

77

08

Appendix

80

2011 B2G Copyright - Middle East Series

1. Introduction

01
A

s the world recovers from the credit crunch,

quately. -Many others opted for short-term cost

global trade is becoming greater than ever.

cutting solutions which involved ruthless head-

With an economic growth of 4.9% in 2001

count downsizing as a means of survival.

(according to IMF forecasts), Middle East is rein-

So how are senior managers going to respond to

forcing its strategic position as an important logis-

the upturn needs in their market? This short-

tics hub between Europe, Asia and Africa. Mean-

termist strategy seems to pose an even bigger

while, senior managers are facing serious chal-

problem: How are companies and governments

lenges in recruiting and retaining supply chain tal-

going to cope with the severe global shortage of

ent to support this expansion in business. During

skilled talent in this field? Although this shortage

the crisis, only a few companies took stock to

is exacerbated in the Middle East, the growing

strengthen their post-crisis operational readiness

trend is threatening every market, regardless of its

by managing their talent and resources ade-

maturity or geographical locale.

2011 B2G Copyright - Middle East Series

Introduction

In addition to that, as supply chains have become

cation and training of people is becoming increas-

more complex, it is creating demand for profes-

ingly important. In a region where most govern-

sionals to possess a new set of skills, both hard

ments are demonstrating their willingness to em-

analytical and soft leadership skills. Not only to

power the local workforce, how are organizations

manage a global and complex supply chain in a

going to cope with manpower challenges? What

highly dynamic environment, but to also be able

are the current supply chain educational programs

to integrate the big picture. A business scenario

available? How many specialized professionals will

typically begins horizontally from suppliers to cus-

be required in the coming years?

tomers and continues vertically from finance or

The answers to these questions will be addressed

sales and marketing strategy to basic logistics op-

by B2G Consulting in their report:State of Supply

erations. In fact, as supply chain is fast becoming a

Chain Education in Middle East 2011

key differentiator between competitors, the edu 2011 B2G Copyright - Middle East Series

2. Executive Summary

02
A

ccording to the World Bank, the Logistics

sionals which has forced some companies to out-

Performance Index (LPI) of the Middle East pre-

source part of their activities such as logistics,

sents a number of significant gaps in several key

warehousing or IT.

areas, specifically in terms of logistics services,

Finding a way to recruit and retain talent to ad-

compared to other zones in the world such as the

dress these new challenges has become an impor-

US or most European countries.

tant hardship for companies wanting to maintain

To unveil the supply chain challenges currently


faced in the region, a recent survey conducted by
B2G consulting showed that most of the difficulties encountered, were related to; (1) inaccurate
demand forecasting, (2) high inventory levels and,
(3) long delivery lead times. Managing the supply
chain has become increasingly complex, especially
coupled with the acute shortage of skilled profes 2011 B2G Copyright - Middle East Series

or gain a competitive edge.


Current trends reveal that UAE, Saudi Arabia and
Qatar are still the biggest players in the region for
recruiting Supply Chain and Procurement professionals. Industries which require Supply Chain talent the most are; (1) Civil Engineering, (2) Manufacturing and Production, (3) Logistics Services
and, (4) Petroleum and Energy. While most de6

Executive
Summary

manded skills include a broad knowledge of Trans-

lished a positive momentum by launching promis-

portation, Distribution and Warehousing opera-

ing training initiatives, with the support of consult-

tions, it is also required of the individual/s to pos-

ing firms or local universities, the road towards a

sess a full understanding of the end-to-end supply

meaningful progress in supply chain education is

chain operations.

still a long journey.

Education reform is at the top of the priority list of


Middle East governments; however, Supply Chain
management which is vital to prepare this pool of
highly skilled workforce for the future, is lacking at
universities and private training centers. The need
to develop best talents across the region and reduce the skills gap, is not fulfilled by the current
offering of corporate training and educational programs. Although a few of corporations have estab 2011 B2G Copyright - Middle East Series

According to our estimates, the supply chain function will count more than 700,000 professionals in
the GCC countries by 2013. At management level,
about 1,500 new supply chain managers will be
needed on a yearly basis until 2013. Meanwhile in
reality, only 600 students (40% of requirement)
with a specialization in Supply Chain Management
are entering the market each year.

Acknowledgments

Acknowledgments

B2G Consulting Research team would like to thank all of the companies, academics and individuals who
shared their experiences and insights with us through focus interviews and on-line survey. Your contributions are invaluable to the analysis of the survey results and the ideas expressed in this report. We also
would like to thank each one of the following persons which contribution have been critical to this study:

Dr. Cedwyn Fernandes


MBA Program Leader
MIDDLESEX UNIVERSITY

Mr. Ahmed Al Janahi


General Manager
Media Relations
BATELCO

Mr. Khwaja Moinuddin,


Head of Excellence
GULF ALUMINIUM
ROLLING MILL COMPANY

Mr. Subbs Mukherjee


General Manager
BAHRAIN WATER &
BOTTLING COMPANY

Mr. Mohamed Shalaby


Chairman of North Africa &
Middle East Chapter
SUPPLY CHAIN COUNCIL

Mr. Sebastian Thomas


Senior VP Supply Chain
ZAFCO

Mr. John Webb


Project Manager
BAHRAIN POLYTECHNIC

2011 B2G Copyright - Middle East Series

03
Current outlook of Supply
Chain Management
in the Middle East

2011 B2G Copyright - Middle East Series

3. Current outlook of Supply Chain Management in the Middle East

03
Supply Chain Performance in the GCC Countries
What is the performance of GCC Countries in term of Supply Chain?

n order to better assess the talents that Mid-

identify the challenges and opportunities they

dle Eastern organizations will require to bet-

face in trade logistics performances but some of

ter manage their supply chain, it is necessary to

its components also provides significant insights

have a good understanding of the issues that the

on the performance of private logistics operators.

profession is currently facing. Benchmarking supply chain management practices currently applied

A review of GCC overall logistic performance

in the GCC countries with other parts of the world

(Exhibit 3.1) shows disparity amongst GCC coun-

is an interesting approach to evaluate the gaps

tries: UAE, Bahrain, Kuwait and Saudi Arabia

that the profession will require to bridge in the

showing significantly better logistics performance

near term.

compared to Qatar and Oman. UAE which ranks


1st amongst GCC countries and 24th in the world

Competitiveness of a country infrastructures and

has made strong efforts to optimize its logistics

regulations can play an important role in the level

attractiveness according to the feedback from lo-

performance that local companies can reach in

gistic operators. More than 70% of respondents

terms of supply chain management. The ability to

recognize that the country has improved its cus-

contract efficient logistics service providers is also

toms and official procedures since 2005. More-

essential for a company willing to optimize its sup-

over more than 85% of them think that transport,

ply chain performance. One of the most compre-

trade, telecommunications and IT infrastructures

hensive tools that are available to compare coun-

have improved since 2005. Bahrain which ranks

tries competitiveness in terms of logistics services

second in the region has also recently made sig-

is the World Bank Logistic Performance Index. This

nificant efforts to increase its logistics efficiency in

indicator combines the feedbacks given by supply

terms of infrastructures and customs procedures

chain operators on the logistics friendliness in the

since 2005. For other countries such as Saudi Ara-

countries in which they operate with quantitative

bia and Kuwait, the percentages of respondents

measures of the performance of key components

who noticed improvements in these fields are

of the supply chain such as customs, logistics ser-

much lower (0% to 25%).

vices providers and transportation infrastructures.


It is designed to help the governmental agents to
2011 B2G Copyright - Middle East Series

The performance of logistics services (Exhibit 3.2)


10

cation
training
people

and
of
who

will have to
manage companies supply chains is
becoming the

Current outlook of
Supply Chain
Management in the
Middle East

Current Logistics Performance


in the Middle East: Overall Performance
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

4.11

4.09

Germany Singapore

3.86

United
States

3.63

United
Arab
Emirates

3.37

Bahrain

3.28

Kuwait

3.22

Saudi
Arabia

2.95

2.84

Qatar

Oman

Exhibit 3.1: 2009 Logistics Performance Index: Logistics Performance Index overall score reflects perceptions of a country's logistics based on efficiency of customs clearance process, quality of trade- and
transport-related infrastructure, ease of arranging competitively priced shipments, quality of logistics
services, ability to track and trace consignments, and frequency with which shipments reach the consignee within the scheduled time. The index ranges from 1 to 5, with a higher score representing better
performance. Data are from Logistics Performance Index surveys conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in
international logistics. Source: World Bank

Current Logistics Performance


in the Middle East: Competence and Quality of Logistics Services
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

4.14

4.12

3.92
3.53

3.36

3.33

3.11
2.57

Germany Singapore

United
States

United
Arab
Emirates

Bahrain

Saudi
Arabia

Kuwait

Qatar

2.37

Oman

Exhibit 3.2: 2009 Logistics Performance Index: Competence and Quality of Logistics Services. Source:
World Bank

index focuses on the competence and the efficiency of logistics services providers such as
transport operators or customs brokers. The ranking of GCC Countries is more or less similar to the one obtained with the overall index that encompasses other aspects of Supply
Chain performance. One noticeable aspect is that according to the surveys conducted by the
2011 B2G Copyright - Middle East Series

11

3. Current outlook of Supply Chain Management in the Middle East

World Bank, a very high percentage (85% to 100%) of respondents agreed to say that private logistics services had improved since 2005 in almost all GCC countries except for Saudi Arabia (only 25% of respondents
noticed improvements of private logistics services).
This review of Supply Chain performance across GCC countries shows that there is still room for improvement if this performance is benchmarked with European countries or with the US. However the Logistics
Performance Index and its components only gives an broad view of the supply chain performance in any
given country. It focuses mainly on factors of the supply chain which largely depend on government decisions (customs procedures, regulations, infrastructures) and on the performance of logistics operators.
Other aspects of Supply Chain which relate to demand forecasting, inventory management, procurement,
green logistics are not taken into account. In order to have another point of view on the current state of
Supply Chain Management in the Middle East, the main results of a survey conducted in 2010 by B2G Consulting amongst 225 Supply Chain professionals is presented in the next section. The complete survey
State of Supply Chain Management: Middle East is available on B2G website.

Supply Chain Issues and Solutions: Results from B2G Survey


What are current Supply Chain Managers issues and solutions?
In order to learn more about the issues and chal-

came first in the list. Delivery lead times (58%),

lenges in Supply Chain Management currently

performance of suppliers (42%) and logistics costs

faced by Middle Eastern organizations, B2G Con-

(41%) are also main concerns for Supply Chain

sulting conducted a survey amongst Supply Chain

managers.

executives in 2010. More than 225 professionals

Top Supply Chain Issues

from a wide range of industries have answered to


a questionnaire which dealt with the current is-

Improve demand forecasting

sues and challenges they faced as well as with the

Reduce and optimize inventory


levels

solutions they found to optimize Supply chain


practices within their organization.

Reduce delivery lead times

74%

63%

58%

Improve supplier performance

42%

Reduce logistics costs

41%

Amongst the issues that were cited by supply


chain professionals, better demand forecasting
(74%) and optimization of inventory levels (63%)
2011 B2G Copyright - Middle East Series

Exhibit 3.3: Top Supply Chain Issues cited by Supply


Chain Managers
12

next biggest
challenge, in
a

region

where most
Governments
have strongly
d e m o n strated their

Current outlook of
Supply Chain
Management in the
Middle East

Optimizing demand forecasting (42%) is the first

Top Supply Chain Initiatives

initiative that Supply Chain professionals will conduct in the coming 12 months. Reducing logistics
costs (37%), delivery lead times (34%) and inventory levels (32%) will also be key initiatives that
supply chain managers plan to implement in the
near future.
Improving relationships with suppliers (21%) was
also part of the initiatives that will be conducted
within supply chain organizations. Various strategies can be implemented: Increasing the numbers

Improve demand forecasting

42%

Reduce logistics costs

37%

Reduce delivery lead times

34%

Reduce and optimize inventory


levels

32%

Improve supplier performance

21%

Exhibit 3.4: Top Supply Chain Initiatives to be implemented in the next 12 months according to Supply
Chain Managers

Top Outsourcing Initiatives

of functions to be outsourced, reduction of the


number of suppliers in order to engage into long

Logistics

29%

term collaborations. Such collaborations can


benefit from better coordination of logistic proc-

Manufacturing

esses and from the implementation of shared IT

Warehousing

solutions. Outsourcing initiatives usually concern

R&D

18%
16%
13%

Logistics (29%), Manufacturing (18%), WarehousIT

ing (16%), R&D (13%) and Logistics IT (11%).


One of the main issues that were pointed out by

Exhibit 3.5: Top Outsourcing Initiatives cited by Supply Chain Managers

The Supply Chain Job Market:


Difficulty to recruit

this survey is the difficulty for supply chain professionals to recruit in the region. 84% of respondents declared that it is relatively difficult to re-

4%

cruit Supply Chain professionals. This main concern is leading to a lack of skills within the supply

11%

Relatively difficult
Normal

12%

Relatively easy

chain function and can be related to the other issues that were presented in Exhibit 3.3. The challenge for supply chain organization to attract and

84%

retain talents will be largely discussed in the next


part of this study.

2011 B2G Copyright - Middle East Series

Exhibit 3.6: Opinion of Supply Chain professionals


on the Supply Chain job market.
13

Developing a best-in-class cross-functional supply chain organization

Developing a best-in-class crossfunctional supply chain organization


Mr. Sebastian Thomas is a Senior VP Supply Chain at ZAFCO, Managing the Global supply chain at strategic level including various overseas logistics projects. ZAFCO FZCO is a leading global player in tire and
battery distribution head quartered in Jebel Ali Free Zone. With more than 21 years in Dubai, Mr. Sebastian has been associated with some of the corporate giants like Seal-Land, P&G, Masterfoods, Philip
Morris, BAT, Marks & Spencer, IKEA, TOYS R US, Ace Hardware etc supporting their end to end Supply
chain management. During his close association with these blue chip organizations, Sebastian fine
honed his supply chain and management skill which enabled him to bag the prestigious Supply Chain
award Logistics Manager of the Middle East during SCATA award ceremony organized by ITP in 2007.
Currently Mr. Sebastian is a key note speaker for supply chain conferences and a lead figure in regional
supply chain associations.
Today, Mr.Sebastian is sharing with Frederic Gomer, partner at B2G Consulting, his deep insights on the
Challenges in Supply Chain Education for the GCC Region.

In few words, please describe your company

The latest focus of the company is to invest

activity?

heavily into retail sector and planning to open

In 1993, Zafco started their operations in Dubai

65 retail outlets in GCC during the next couple

as a tire & battery distributor. Today, Zafco is

of year.

the uncontested leader in the region, and one


of the top companies worldwide in the sector,

Could you please give an overview of the sup-

with more than 1 million tires in stock and op-

ply chain at ZAFCO?

erations in more than 85 countries. ZAFCO de-

Supply chain is considered as an integral part

veloped own brand ZEETEX tires and batter-

of our operation. At Zafco, the end to end sup-

ies which are distributed in various countries.

ply chain covers Demand forecasting, procure-

2011 B2G Copyright - Middle East Series

14

Industry
Insights
Mr. Sebastian Thomas
Senior VP Supply Chain

ment, customs brokerage, warehousing, inven-

ond to none and meets with and often exceeds

tory management and distribution. It is very

our customers expectation. The processes are

crucial for us to closely manage all the aspects

defined, accountability and timeframe are set

of supply chain management as this is one of

to ensure smooth delivery of performance at

the core areas where there is huge potential

various stages of end to end supply chain.

for cost efficiency.

Zafco supply chain can be treated as one of the

Considering the importance of supply chain,

best in this region. 100% of our local deliveries

Zafco management gives considerable focus in

are effectively done within 24 Hours across the

managing this core functional area with highly

U.A.E.

experienced profession-

Supply chain plays a vital

als. At Zafco, we claim It is very crucial for us to closely role in:


Supply Chain as one of manage all the aspects of supply - Excellent service level
our core competency
and customer satisfaction
chain
management
which
supports
our
- Product availability
growth and helps towards realising our dream

- Cost efficiency

of Going Global mantra. The world class facil-

- Continual service improvement

ity equipped with most modern warehouse

- Delivery within 24 hours to all our UAE cus-

equipments and most powerful Warehouse

tomers

Management System along with our highly tal-

- Inventory management

ented and experienced professionals, enable

- Measuring and controlling ageing inventory

us to exceed our customers expectation.

- Measuring and reporting stock days

We have taken all measures to ensure a perfect and performing supply chain division
which is best in class. Zafco supply chain is sec 2011 B2G Copyright - Middle East Series

15

Developing a best-in-class cross-functional supply chain organization

Developing a best-in-class crossfunctional supply chain organization


What was your biggest challenge in supply

ity and service level.

chain at ZAFCO?

The success of supply chain for a great extend

When I joined Zafco in 2009, my mission was

depends on how healthy is the interface be-

to re-engineer and design a suitable supply

tween cross functional departments as well as

chain model to manage the global supply chain

communication between the external stake-

of ZAFCO more cost effectively. The company

holder. How effectively we manage the flow of

was planning for major expansion through

material and information throughout the sup-

wider global reach and diversification which

ply chain is crucial.

necessitated a strong supply chain depart-

My objective was then to break the silos be-

ment.

tween departments. I decided

In the global competitive envi- My objective was then to to establish SOPs (Standard
ronment where the company break the silos between Operating Procedures) to deis evolving, the supply chain
fine the roles, responsibilities,
departments
department needed to reach a
tasks and timeframe of each
more professional level, to provide higher ser-

cross functional departments involved directly

vice level and to become a competitive advan-

or indirectly in the management of the Supply

tage embedded into the companys DNA.

Chain. This has enabled the departments to

Company embarked upon major expansion

share their information and resolve their issues

drive and the volume increased tremendously

as a team and not as separate departments

and also the geographical reach which itself

during cross-functional meetings. In addition,

created a challenge for supply chain. Through

the development of KPIs (key performance in-

re-structuring and hiring of highly experienced

dicators) was very important to bring a quanti-

professionals, and process re-engineering we

tative measure of the improvements. All these

at Zafco supply chain made a big leap in capac-

measures paved way for continuous improve-

2011 B2G Copyright - Middle East Series

16

Industry
Insights
Mr. Sebastian Thomas
Senior VP Supply Chain

ment in service level and customer satisfac-

How does ZAFCO manage to retain talents?

tion. As of today, the supply chain department

Any specific program?

has been ranked as one of the best perform-

At Zafco, we established a talent retention pro-

ing department in Zafco.

gram that measures the performance and


identify the potential talents who need to be

Regarding manpower in general and specifi-

retained in the organization. The employee

cally in Supply Chain Management, what are

who meets with the predefined criteria, and

the challenges that you are currently facing?

who is capable of going up to two levels, will

The main issue that we are facing is that most

be trained with the appropriate training, re-

of the people that we see

gardless of his current func-

We established a talent tion, position or departduring the recruitment processes have yet some experiretention program that ment. Someone who has
ence and exposure in supply
been highly proficient in cusmeasures
the
performance
chain management but do
tomer service, for example,
not hold any degrees or recognized qualifica-

could receive training in sales or marketing.

tions in Supply Chain Management or Logistics.

Promotion along with an above-the-market

Another negative aspect is that we rarely find

package is also a key element in the talent re-

true supply chain professionals who are capa-

tention. The vacancies are communicated in-

ble of managing the end to end supply chain.

ternally before being advertised outside.

In more cases, their experience is only limited


to the logistics aspect of the supply chain, but

What are the skills the most lacking? How

do not cover the entire scope of this end-to-

does the Company overcome this challenge?

end discipline (from suppliers to customers).

There are four main areas where I have identified some clear areas of improvements:

2011 B2G Copyright - Middle East Series

17

Developing a best-in-class cross-functional supply chain organization

Developing a best-in-class crossfunctional supply chain organization


1. Demand forecasting

glected by companies. People tend to ignore

In any trading organization, Procurement is a

the great advantage of managing the inventory

fundamental function which plays a predomi-

in a smart way as a significant lever to improve

nant role in deciding the sales turnover of the

the bottom line.

company. What to buy, When to buy and How

Especially during recession, capital funding is

much to buy is a crucial decision, which needs

usually very difficult, so the only way to im-

careful calculations based on demand forecast-

prove the companys financial performance is

ing using various data and tools. Demand fore-

through reducing logistics and inventory costs.

casting and sales fore-

How soon we transfer

casting are integral parts Very rarely we find procurement stock into cash is very
of procurement, and professionals who have got some important. At Zafco, we
therefore these core elerealized this truth and
recognized
qualification
ments need careful attook various effective
tention as we cant afford these areas to go

measures to ensure a healthy inventory posi-

wrong.

tion and we defined an inventory policy with a

In reality, many organizations miserably fail on

clear baseline and realistic targets, we were

achieving forecast accuracy and as a result ei-

able to set up aggressive goals in order to

ther product availability is affected or encoun-

reach 45 days of days of inventory holding and

ter overstock situation. Very rarely we find

achieved the same with the support and drive

procurement professionals who have got some

of all the stake holders.

recognized degree level qualification in Purchasing or procurement.


2. Inventory management
This is another area which is generally ne 2011 B2G Copyright - Middle East Series

3. Stock management
The stock management is basically the responsibility of the Warehouse and encompasses the
management of bin accuracy, picking accuracy,
18

Industry
Insights
Mr. Sebastian Thomas
Senior VP Supply Chain

stock accuracy, space capacity, labor produc-

What are the profiles in Supply chain the

tivity and etcas there is a strong correlation

most searched?

between the service level and the performance

Ensuring product availability is a major chal-

of the warehouse, we decided to put in place a

lenge for supply chain department, we cant

strong management of the stock at Zafcos fa-

sell what we dont have, Health of the inven-

cilities.

tory determines the health of the organiza4. Continuous improvement in ser

tion, controlling the ageing stock is another

vice

crucial area, defining the inventory cover and

level.

Besides these 3 areas, pro-

managing it well is equally

curement, inventory man- Ensuring product availability crucial, and retaining the
agement and stock manageis a major challenge for talents and focus on delivment, companies have to
ering excellent service level
supply
chain
department
keep their focus on continuis of paramount imporous improvement in customer service, which is

tance, this is what we do at Zafco. We dont

critical to retain the customers and sustain

compromise on providing excellent training to

growth. At Zafco, we realize that we operate in

our team in order to improve their skill set to

a highly competitive environment where we

perform well.

evolve, forces us to deliver excellent level of


service. We started to realize the importance

How is the level of Education in SC in UAE /

of the customer and we initiated this mindset

Dubai?

change where the customer should be posi-

As said previously, it is very difficult to recruit

tioned at the center of our focus.

qualified supply chain professionals in the region, and the reason lies in the fact that there
are not many universities that propose supply

2011 B2G Copyright - Middle East Series

19

Developing a best-in-class cross-functional supply chain organization

Industry
Insights
Mr. Sebastian Thomas
Senior VP Supply Chain

chain management as part of their curriculum.

management became very evident during eco-

Moreover, there is not much demand among

nomic recession; this in return caused the or-

the students here to pursue Supply chain Man-

ganizations to focus towards this business dis-

agement as discipline. This represents a major

cipline.

issue considering the importance of this func-

Having said that, Supply Chain management

tion in this part of the world. The supply chain

should not be taught only in some avant-

and Logistics infrastructure plays a pivotal role

gardist universities but as early as at high

in the economic development of any country,

school level. As a fundamental discipline, SCM

which is not different in GCC and therefore, we

should be a mandatory course such as mathe-

expect to have more fo-

matics, physics or com-

Supply Chain professionals will merce in order to be


courses and degree procontinue having predominant aligned with the market
grams in Supply chain
demand for qualified supplace
in
the
organizations
management and Logisply chain professionals. I
cus towards professional

tics.

strongly recommend that it is high time for us


to introduce supply chain and Logistics to stu-

According to you, what is the future outlook

dents at school level which will create interest

for the supply chain workforce in the region?

among them to pursue this for higher studies.

Supply chain management and Logistics will

As Middle East is focusing on becoming a ma-

continue to hold a very important place in GCC

jor logistics hub in the world, it will be inevita-

business arena. Supply chain professional will

ble that education in SCM becomes a top prior-

continue having predominant place in the or-

ity to overcome the current manpower chal-

ganizations. The importance of supply chain

lenges.

2011 B2G Copyright - Middle East Series

20

04
Supply Chain Challenges in
the Middle East: A Focus on
Manpower

2011 B2G Copyright - Middle East Series

21

4. Supply Chain Challenges in the Middle East: A Focus on Manpower

04
A

s it has been pointed out in the end of the previous chapter, recruiting qualified manpower is one of
the main concerns for Supply Chain executives, as 84% of respondents of B2G survey indicated that

recruitment of Supply Chain professionals was relatively difficult. This chapter deals with this specific challenge: after reviewing the main job positions that are currently encountered in most supply chain organization, this study presents the current trends of the Supply Chain job market based on the job vacancies
which were advertized on three of the most visited recruitment websites of the region.

Definition of Main Procurement and Supply Chain Positions


What are todays main Procurement and Supply Chain Positions?
The Supply Chain Function could be theoretically

different roles and responsibilities which are in-

considered as quite simple: It includes planning,

volved in the Supply Chain organization.

procurement, manufacturing, delivery and return


of manufactured products. However further analy-

Another challenge results in the fact that even if

sis of potential roles within the supply chain func-

the supply chain function is more and more widely

tion shows several challenges.

recognized, Supply Chain leaders may still not


have enough influence nor enough experience in

One of the challenges is the definition of the dif-

some organizations to cope with the strategic im-

ferent roles within the supply chain function. The

portance of this function.

limit between the Supply chain function and other


departments of the organization such as Procure-

Exhibit 4.1 and Exhibit 4.2 presents the main job

ment or Sales are not always very clear. For in-

functions that can be found in most Supply Chain

stance, one sourcing division in one company can

organizations.

be doing the job that would be done by the procurement team in another company.

Once the different roles are well defined within


the Supply Chain function, the most challenging

The fact that these functions are not always very

difficulties remain in the ability of the Supply

well defined makes other entities of the company

Chain leader to recruit new talents. This will be

such as HR or Finance not always understand the

discussed in the next section.

2011 B2G Copyright - Middle East Series

22

willingness to
empower the
local

work-

force.

How

do organiza-

Job Title

Chief
Procurement
Officer

man-

power

chal-

Achieve cost reduction objectives


Manage purchasing organization and policy
Ensure that business need are satisfied in
terms of delivery time and quality
Enhance outsourcing activity and manage
contracts
Procurement Process Reengineering
Select products according to company
requirements
Negotiate prices with suppliers
Ensure that proper documentation is filled
(Purchase order, invoice)

Analyze the supply market for the identified category


Builds and maintain profiles of current and
potential suppliers for the identified category
Ensure that materials meets company
requirements for the identified category
Prepare cost analyses for products for the
identified category
Manage relationship with suppliers
Prepare invitation to bid documents and
analyze bids from suppliers
Prepare and monitor contractual framework
Prepare cost analyses for products and
services

Sourcing
Manager

with

Skills

Category
Manager

cope

Key Roles

Buyer

tions

Supply Chain Challenges in the Middle


East: A Focus on
Manpower

Usually: Business or Engineering Degree,


MBA.
Ability to interact with high level senior
executives.
Strong negotiation skills
Deep understanding of contractual framework, import / export policies and procurement processes.
Strong negotiation skills
Good understanding of procurement processes
Good understanding of contractual frameworks
Technical expertise on category materials
and on product functionalities
Good understanding of procurement processes

Strong negotiation skills


Good understanding of contractual frameworks and bidding documentations
Good understanding of procurement processes

Exhibit 4.1: Main procurement positions

2011 B2G Copyright - Middle East Series

23

4. Supply Chain Challenges in the Middle East: A Focus on Manpower

Job Title
Chief Supply Chain
Officer

Supply
Chain
Manager

Warehouse Operations
Manager

Key Roles

Skills

Design and enhance Company Supply Chain Strategy


Manage Supply Chain Organization
Monitor Supply chain KPIs
Ensure that business need are satisfied in terms of
delivery time and quality
Supply Chain process Re-engineering
Manage Supply Chain Organization
Monitor Supply chain KPIs
Ensure that business need are satisfied in terms of
delivery time and quality
Supply Chain process Re-engineering

Manage receiving / issuing / return activities


Supervise warehousing staff (schedules, training,
security)
Plan cycle counts and reduce inventory discrepancies
Monitor performance and optimize warehousing
productivity
Gather and analyze logistics data (costs, productivity, demand forecasts)
Monitor and analyze Supply chain KPIs and produce
performance reports
Provide technical insight to support projects and
new business opportunities
Monitor logistic contractors activities and ensure
compliance to delivery schedules
Prepare monthly statistical forecast reports and
report to management
Ensure that inventory targets are met
Optimize forecasting techniques and forecast accuracy
Adjust forecast and inventory targets based on
changes in demand and market trends
Manage delivering and return activities
Supervise distribution staff (schedules, training,
security)
Monitor performance and optimize warehousing
productivity

Adjust the level of production output according to


forecasted sales
Prepare monthly production planning and report
to management
Optimize planning tools and sales and operations
planning process

Supply
Chain Analyst

Demand
Planner /
Forecaster

Distribution Manager

S&OP
Manager

Usually: Business or Engineering Degree, MBA.


Ability to interact with high level senior executives.
Certifications such as Six Sigma, Inventory
Management
Experience and deep understanding of supply
chain functions
Usually: Business or Engineering Degree
Ability to interact with senior management.
Certifications such as Six Sigma, Inventory
Management
Experience and good understanding of supply
chain functions
Deep knowledge of warehousing operations
and material handling
Strong leadership and management skills
Knowledge of safety and security standards

Strong analytical skills


Strong computer skills: spreadsheet, database,
ERP, logistics software
Good understanding of supply chain functions.
Broad knowledge of logistics concepts (MRP,
just in time, FIFO)

Strong analytical skills


Strong computer skills: spreadsheet, database,
ERP, logistics software
Good understanding of supply chain functions.
Broad knowledge of logistics concepts (MRP,
just in time, FIFO)
Expertise in use of planning tools
Usually: Business or Engineering Degree
Ability to interact with senior management.
Certifications such as Six Sigma, Inventory
Management
Experience and good understanding of supply
chain functions
Strong computer skills: spreadsheet, database,
ERP, logistics software
Good understanding of supply chain functions.
Broad knowledge of logistics concepts (MRP,
just in time, FIFO)
Expertise in use of planning tools

Exhibit 4.2: Main supply chain positions


2011 B2G Copyright - Middle East Series

24

lenges? What
are the current

supply

chain educational

pro-

grams available?

How

many special-

Supply Chain Challenges in the Middle


East: A Focus on
Manpower

Current Recruitment Trends in the Supply chain Sector


Impact of economic recovery on the Supply Chain job market.

fter several years of tremendous growth,

(King Abdullah University of Science and Technol-

few people had forecasted the economic

ogy, Princess Noura University) and in tourism and

downturn that hit the Middle East Region in 2009.

entertainment (Soccer World cup 2022 in Qatar).

The United Arab Emirates, which is the second

Investment will also be strong in country infra-

economy of the region, was hit especially hard

structures (Expansion of the airport in Oman, ad-

during the last two years due to a slowdown in

vanced telecommunications infrastructures in

real estate, construction and tourism industries.

Bahrain). In Dubai, the government plans to be

These sectors suffered from oversupply and short-

the world first logistics platform (Dubai Strategic

age of financing causing many expatriates to leave

Plan 2015) and has developed a comprehensive

the country and the number of immigrants to slow

roadmap to expand roads, highways, rail and ma-

down. The logistics sector, which is very important

rine infrastructures.

in Dubai, was largely impacted by the slowdown of


the economy. Companies had to change their

These new investments will generate derived de-

forecast, conduct cost reduction initiatives and

mand for Supply Chain professionals and have sev-

recruitment activity was reduced to a minimum.

eral consequences on the Supply Chain job market. Job search which was very challenging in 2008

Since then, oil price which remains the key driver

and 2009 is now becoming much easier for experi-

of economic growth in the region, has substan-

enced professionals as well as for young talents.

tially recovered from US$62 in February 2009 to

Supply Chain workers which had a tendency to

nearly US$99 by the end of 2010. In Abu Dhabi,

hold on their current jobs during the financial cri-

Saudi Arabia, Kuwait and Qatar, the economy,

sis are now looking for better opportunities in the

which is based on immense oil and gas reserves,

job market. Supply Chain leaders which had no or

remains therefore very healthy. After a period

low recruitment budget are now able to add new

where most projects were frozen, upstream and

talents to their team. However, as the job market

downstream oil industries are now investing in

is recovering, they might be confronted to higher

new facilities (New refining capacity in Saudi Ara-

turnover than during the past two years. They

bia, Expansion of Al Shaheen project in Qatar).

may also face more difficulties in attracting highly

Additional projects are also planned in the region

skilled professionals.

in the Education sector especially in Saudi Arabia


2011 B2G Copyright - Middle East Series

25

4. Supply Chain Challenges in the Middle East: A Focus on Manpower

Analysis of current job vacancies

2G Consulting analyzed more than 400 job


vacancies for Supply Chain professionals

that were posted online on three of the reference


SCM Job Vacancies:
Geographical Locations

recruitment websites in the Middle East during


the first quarter of 2011.

13%

where Supply Chain and Procurement profession-

Kuwait

1%

According to this analysis, UAE is the first country

Oman

40%

15%

als are needed. Most of this additional workforce

Qatar

is demanded in sectors such as Civil Engineering,

Saudi Arabia

Distribution, Logistics, Retail and Wholesale which

United Arab
Emirates

were recovering in the UAE. These industries are

32%

the ones which recruit the most in the Supply


Chain job market in this region.
Saudi Arabia, where a lot of opportunities are also

Exhibit 4.3: Demand for Supply Chain professionals


Based on geographical location of advertized vacancies
(Source: Bayt.com, Gulftalent.com, Monstergulf.com
1st Quarter of 2011)

SCM Job Vacancies:


Company Industries

available in Engineering, Retail, Distribution and


Logistics but also in Manufacturing, in Information
Technology and in Education, is the second coun-

Civil Engineering

try of the region to recruit supply chain workers in


19%

2011.

20%

In Qatar, which came third for the number of Supply Chain job vacancies, additional professionals
are needed in industries such as Catering, Services
and Restaurants as well as in the Oil & Gas industry.

2%

10%

5%
2%

6%

7%
7%
8%

Most advertized positions are posted to recruit


Mid Career and Management professionals with 5
to 10 years of experience in Supply chain or Pro 2011 B2G Copyright - Middle East Series

14%

Education / Training /
Library
Healthcare /
Pharmaceutical
Hospitality / Tourism /
Travel
Information Technology
Manufacturing /
Production
Petroleum / Energy
Retail / Wholesale
Transportation /
Shipping
Warehousing /
Distribution / Logistics
Other

Exhibit 4.4: Demand for Supply Chain professionals


Based on company industry of advertized vacancies
(Source: Bayt.com, Gulftalent.com, Monstergulf.com
1st Quarter of 2011)
26

ized

profes-

sionals
be

will

required

in the coming
years? These
are the questions

that

B2G Consult-

Supply Chain Challenges in the Middle


East: A Focus on
Manpower
SCM Job Vacancies: Level of Experience

curement. Few entry levels positions are available.


Most of them are positions for Warehouse opera-

2%

7%
Entry Level

31%

tors, truck drivers or administration staff for distriMid Career

bution and logistics services companies.

Management

The main skills which are generally demanded by


Executive/Dire
ctor

recruiters to Supply Chain professionals are presented below. They concern in most cases knowledge of basic supply chain functions such as Transportation, Shipping, Distribution, Warehousing
Operations (Receiving, Issuing and Return) and
Procurement.

60%

Exhibit 4.5: Demand for Supply Chain professionals


Based on required level of experience for advertized
vacancies (Source: Bayt.com, Gulftalent.com, Monstergulf.com 1st Quarter of 2011)

SCM Job Vacancies: Skills Demanded


Other skills are needed to apply for certain positions such as Supply Chain analyst which requires
demand planning and forecasting experience. Interestingly enough understanding of an ERP Appli-

Transport / Shipping /
Distribution

52%
28%

Warehousing Operations

24%

Procurement

cation is demanded for about 20% of supply chain


positions.

19%

ERP Applications

12%

Inventory Management

Compensations have also increased for Supply


Chain and Procurement professionals. Gulf Talent
reported an increase in salary of Logistics and

10%

Demand Forecasting
Contract Management

9%

Transportation professionals of 6.4% in 2010 compared to a 5.6% increase of average SCM salaries
in 2009. According to the same study this sector is

Production Planning
Project Management

7%
5%

amongst those with the largest increases in salaries in 2010. This confirms the fact that companies
try to keep and attract supply chain skills within
their organization.
2011 B2G Copyright - Middle East Series

Supply Chain Strategy

3%

Exhibit 4.6: Demand for Supply Chain professionals


Based on required skills for advertized vacancies
(Source: Bayt.com, Gulftalent.com, Monstergulf.com
1st Quarter of 2011)
27

Managing Supply Chain Talents in Changing Technological Environments

Managing Supply Chain Talents


in Changing Technological
Environments
Mr. Ahmed Al Janahi supports the Board of Directors and Executive Management in shaping the development of the Batelco Group throughout the region. Successful careers in Real Estate, Industry Equipment Sales, the Hotel Industry, Finance and Aviation prepared Mr. Al Jahani well for the wide ranging
responsibilities he undertook upon joining Batelcos Corporate Affairs Department in 2003. His wealth
of knowledge and his experience combined with his unmatched enthusiasm serves him well in his multi
faceted role as Group Board Secretary and voice of Batelco.
Today, Mr. Ahmed Al Janahi, General Manager of Media Relations at the Batelco Group, is sharing with
Frederic Gomer, partner at B2G Consulting, his deep insights on the management of Supply Chain talents in a constantly evolving environment such as the Telecommunications sector.

In few words, please describe your company

tions, GSM mobile and WiMax broadband ser-

activity?

vices) to residential, business and government

Batelco was created in 1980 and became a

customers.

public company in 1989. Batelco Group owns


participations in several telecommunication

Could you please give an overview of the sup-

companies in the Middle East, in South Asia

ply chain at Batelco?

and in Africa including Batelco Bahrain (100%),

Supply Chain Management is centralized under

Batelco Egypt (100%), Umniah Jordan (96%),

the Procurement and Logistics department

QualityNet Kuwait (44%), StelIndia (42.7%),

acquisitions, deliveries, distribution, repairs

Sabafon Yemen (26.9%), Atheeb Saudi Arabia

and returns, disposals. All incoming and outgo-

(15%). These companies offer telecommunica-

ing flow of goods is passing the Central Stores

tion services (MPLS based regional data solu-

for a proper recording of all transactions, and

2011 B2G Copyright - Middle East Series

28

Industry
Insights
Mr. Ahmed Al Janahi,
General Manager Media Relations

further distribution of goods to appropriate

How does Batelco manage to retain talents?

projects/cost centers. Procurement and Mate-

Any specific program?

rial Management processes are being auto-

Batelco is one of the most respected employ-

mated in SAP. Freight and insurance, as well as

ers in the country offering an extensive set of

import and export customs formalities are be-

social benefits, excellent working environment

ing outsources to the external agents. Profes-

and facilities, professional education and ca-

sional Procurement, Material Management

reer progression programmes. Batelco is com-

and Planning are the key functions of our Sup-

mitted to providing excellent training opportu-

ply Chain.

nities for its staff through the Companys Training Centre, which ensures

We place a strong emphasis they have the necessary


general and specifically in
on telecom and information skills to compete in todays
Supply Chain Management,
competitive market.
technology education
what are the challenges
Regarding

manpower

in

that you are currently facing?

What are the skills the most lacking? How

We dont face challenges related to the avail-

does the Company overcome this challenge?

ability of the qualified manpower. Our major

We employ over 1300 talented employees in

task is retaining our talented people and devel-

Bahrain and together this workforce provides a

oping their skills for their personal benefit and

wide variety of skills. The main challenge

the good of Batelco. Our employees are highly

comes from remaining up to date with the con-

qualified and experienced, and many remain

stantly changing technology that is prevalent in

with the company during their entire profes-

the telecommunications market. Therefore, we

sional life.

place a strong emphasis on telecom and information technology education to help our staff

2011 B2G Copyright - Middle East Series

29

Managing Supply Chain Talents in Changing Technological Environments

Industry
Insights
Mr. Ahmed Al Janahi,
General Manager Media Relations

in the relevant divisions to not only keep pace,

How is the level of Education in SC in Bahrain?

but to be in the forefront, so that Batelco re-

Were now educating our staff locally under

tains its leadership position in Bahrain.

the CIPS programme, which is a major boost to


their professional qualifications. Generally,

How does Bahrainisation program impact the

solid general education plus experience plus

company?

professional training in CIPS make a perfect

Batelco is a leading Bahraini company and the

mix for an SC professional. What we then add

leading telecommunications provider in the

to this mix is the technical knowledge of tele-

Kingdom of Bahrain. The

com specific subjects.


Solid
general
education
plus
Company is committed to
the retention and develop- experience plus professional According to you, what is
future outlook for the
ment of its Bahraini profestraining make a perfect mix the
supply chain workforce in
sionals.
for an SC professional
the region?
What is the level of maturity in SC at Batelco?

Supply Chain is attracting a major attention in

Our supply chain is generally mature, and

the region for a number of years, so the work-

were working to enhance it with the specific

force is already quite experienced and edu-

advanced techniques to further improve the

cated. So, I dont see any shortage in the work-

cost side spare part management, vendor

force, rather a need to develop their specific

managed inventory, procurement collabora-

skills and qualifications attributable to a par-

tion etc.

ticular business of their company.

2011 B2G Copyright - Middle East Series

30

05
Overview of Educational
Programs in the
SCM Sector

2011 B2G Copyright - Middle East Series

31

5. Overview of Educational Programs in the SCM Sector

05
T

oday, the global supply chain has become

the era of Knowledge: while in the UAE and Qatar

more complex with more integrated per-

private institutions are booming, in Saudi Arabia

spectives, linking suppliers and customers. And

the focus is less on private universities, but rather

one of the most important drivers for success in

on improving the quality of public universities

deploying and running an efficient supply chain is

such as KAUST. Bahrain is making a point to differ-

People. The challenge for supply chain executives,

entiate itself from Dubai and Qatar by offering

in the Middle East, is to understand which knowl-

training in services to cater for various sectors,

edge and skills are required, and to define the ap-

including banking and hospitals. However, has

propriate training and education for their existing

Supply Chain management found its place in the

staff. As the scarcity of skilled supply chain re-

academic programs and degrees of GCC universi-

sources is exacerbated in the region, training ap-

ties and private institutions?

pears to be an adequate solution more than anywhere else.

The present chapter starts with a review of the


different educational systems of the GCC coun-

Education reform is on the top priority list of the

tries. Then, it presents the university programs

GCC governments, as the need to develop best

that are available for students willing to pursue a

talents across the region becomes urgent to tackle

career in Supply Chain Management. The chapter

the skills gaps, in a globalised economy. As a re-

ends with a review of the professional certifica-

cent discipline, Supply chain management is lack-

tions and trainings in Supply Chain and in Procure-

ing of universities and private training centers to

ment and with a sample presentation of some ini-

prepare a highly skilled workforce for the future in

tiatives the were conducted by corporations to

the Middle East. In this process, several major ini-

enhance professional trainings.

tiatives in Education have been launched to enter

2011 B2G Copyright - Middle East Series

32

ing
dressed
the

adin
re-

port:State of
Supply Chain
Education in
Middle East
2011.

Overview of Educational Programs in


the SCM Sector

Overview of the GCC Countries educational systems


How does the educational system work in each one of the GCC countries?
Bahrain

willing to study abroad through educational insti-

In 2007, Bahrain spent nearly 50 million USD in

tutions such as the Ministry of Higher Education,

training and education. The number of students in

the Civil Service Commission, the Kuwait Institute

secondary education was then about 80,000. Re-

for Scientific Research or the Public Authority of

cently, several universities have opened in Bah-

Applied Education and Training. The main private

rain. The AMA Computer university offers some

universities are the Gulf Institute of Science and

four-year-programs in Engineering, Information

Technology (GUST), the Arab Open University

Technology and Management. The Ahlia Univer-

(AOU), the Australian College of Kuwait (ACK), the

sity and the Brunel University also deliver MBAs,

American University of the Middle East (AUM), the

MScs and PhDs diplomas in a wide range of fields

American University of Kuwait (AUK), Box Hill Col-

of study. Local educational organizations have also

lege Kuwait, the Kuwait Maastricht Business

opened and deliver trainings for jobseekers in re-

School and the British University of Kuwait.

tail, hospitality, tourism and as well as in many


technical fields. The fields of study that are most

Oman

chosen by Bahraini students include accounting,

All male and female citizens of the country can

management, engineering, finance and insurance,

benefit from free education until the end of sec-

information technology, law, public relations and

ondary education. However education is not man-

marketing.

datory. Most popular universities include Sultan


Qaboos University, Dhofar University, Sohar Uni-

Kuwait

versity, Oman Medical College, and Middle East

In Kuwait, almost 95% of country citizens are

College of Information Technology.

working in the public sector. The government has


been engaged in important reforms in order to

Qatar

allow the Kuwaiti nationals as well as the young

Qatar counts more than 250 private schools and

population to work for the private sector. The Ku-

educational institutions for about 55,000 students

wait University is the only state university. How-

(60% of whom are Qatari nationals). The primary,

ever several programs are available for Kuwaitis

preparatory and secondary levels are completed

2011 B2G Copyright - Middle East Series

33

5. Overview of Educational Programs in the SCM Sector

05

Overview of Educational Programs in


the SCM Sector

in 12 years. During the final two years, students

grams according to the demand from the job mar-

can choose between scientific and literacy orien-

ket. A very important scholarships program is also

tations. At the end, of the twelfth year, students

available for Saudi willing to study abroad. More

take the General Secondary Education Certificate

than 3,000 students can benefit from this govern-

administered by the Ministry of Education. The

ment program and attend US universities each

university system has been recently reformed:

year.

Universities now benefit from financial and administrative autonomy. The first educational institu-

United Arab Emirates

tion for technical studies is the College of North

During the past few years, important investments

Atlantic Qatar. It delivers courses in engineering

have been made in education in the United Arab

technology, business, information technology and

Emirates to cope with the rapid rise in population.

health sciences.

All male and female citizens of the country can


benefit from a free education from the kindergar-

Saudi Arabia

ten to university. It is also possible to pursue

In Saudi Arabia, the duration of primary, interme-

courses at the university abroad at government

diate and secondary education totals 12 years.

expense. The primary, intermediate and secon-

Male and Female students enroll in separate

dary levels last respectively 6, 3 and 3 years.

schools. Unless they are in private high schools

School is mandatory until the ninth grade. In most

schools, Saudi students are taught in Arabic. Addi-

schools, male and female students are separated.

tional education systems are available for foreign

Aside from the UAE education system, private

students (Indian, Pakistani, French, American).

schools allow foreigners to benefit from the In-

Most well-known universities include King Saud

dian, Pakistani, American or French education sys-

University, King Fahd University of Petroleum &

tems. The post graduate degrees which are most

Minerals, Umm Al-Qura University, Imam Muham-

chosen by Emirati students include Business Ad-

mad Ibn Saud Islamic University, King Abdullah

ministration, Aerospace Engineering, Education,

University of Science and Technology. These state

Medicine, Civil Engineering and Finance.

universities are encouraged to revise their pro 2011 B2G Copyright - Middle East Series

34

Industry
Insights
Dr. Cedwyn Fernandes, MBA Program Leader

Opening a new MBA Program specialization in Operations and Logistics


Dr. Cedwyn Fernandes is Associate Professor in economics and the MBA Program Leader at Middlesex
University Dubai. He holds a Ph.D. in economics, and worked in the airline industry for over a decade
prior to joining academia, giving him a unique blend of academic and senior corporate expertise. Cedwyn is a prominent lecturer and researcher in supply chain issues and is a member of the Consultative
Committee of the Supply Chain and Logistics Group. He was responsible for organizing the prestigious
Supply Chain Executive Forum and for establishing in the UAE the first full fledged Masters degree in
supply chain management and an MBA in Operations & Logistics. Cedwyn is currently involved with setting up a supply chain research center at Middlesex University Dubai.
Today, Dr. Cedwyn Fernandes is presenting this new MBA Program in Operations and Logistics to Thibauld de Sazilly, Senior Consultant with B2G Consulting and sharing his insights on the future outlook
for the Supply Chain workforce in the Middle East.

When will this MBA in Operations and Logis-

What made you decide to offer this new pro-

tics start?

gram? Any specific reason?

The MBA in Operations and Logistics is a new

Dubai has positioned itself as a world class lo-

program which will be launched in October

gistics hub attracting a number of middle and

2011. This is an enhancement of our general

senior management supply chain professionals

MBA program which has been offered at Mid-

to the region. The number of management

dlesex University Dubai since 2005.

level positions in the logistics industry will also

2011 B2G Copyright - Middle East Series

35

Opening a new MBA Program specialization in Operations and Logistics

Opening a new MBA Program specialization in Operations and Logistics


increase and to cater to this segment we intro-

The dissertation module which consists of 60

duced the MBA with specialization in Opera-

credits will be on an operations or logistics is-

tions & Logistics. At the GETEX Exhibition in

sue. In effect 55% of credits will be focused on

April 2011 the maximum enquiries amongst

operations & logistics. The supply chain mod-

the MBA specializations were for Operations &

ule deals with a wide range of topics (Demand

Logistics.

Management, Global Supply Chain Strategy,


Supply Management, and Contemporary issues

Are you confident that the demand for your

in Supply Chain Management). Contemporary

program will remain strong?

issues relating to supply chain management

We are confident that the


demand for this program
will remain strong. We believe that the blend between an MBA with a spe-

The number of management


level positions in the logistics
industry will also increase

will be covered via case


studies

and journal re-

search articles.
The program is unique in
the sense that in addition

cialization in Operations & Logistics will cater

to the academic content there are four Applied

to students across industries and not just logis-

Learning Experience (ALE) and four Executive

tics related industries.

Skills Development (ESD) workshops. One of


the ALE is the business simulation MIT opera-

What is the content of the program?

tions and supply chain strategy game where

The core modules cover the managerial com-

students have a hands on experience in under-

petencies of strategy, human resource man-

standing the causes of the Bullwhip effect. One

agement, finance, economics and marketing.

of the ESDs is a two day workshop on project

The specialization modules will cover opera-

management. The ALE International Field trip

tions strategy and supply chain management.

is a week long trip to Paris, Milan, Shanghai or

2011 B2G Copyright - Middle East Series

36

Industry
Insights
Dr. Cedwyn Fernandes, MBA Program Leader

Hong Kong. It is expected that the filed trip for

Currently in our MBA program, we have 140

the MBA Operations & logistics will be to

students. After the October 2011 intake, we

Shanghai.

will have 200 students in our MBA program if


we take into account all specializations.

Which type of courses are the students most

We expect that for the MBA in Operations &

demanding?

Logistics specialization we will have between

The enquiries we get relate to MBA related

30 and 40 students in the first year. We expect

programs rather than just a specialized pro-

the program to expand substantially later on.

gram in Logistics. The MBA

We are currently in the

program develops your The enquiries we get relate process of signing up one of
managerial competencies to MBA related programs
the prominent supply chain
and at the same time gives
industry
representative
rather
than
just
a
specialized
you an advanced knowledge
group as an Industry Partner
of operations & logistics.
for the program.
program in Logistics.
The program is designed for managers who
wish to have a complete overview of the sup-

What is the background of the students / pro-

ply chain functions within the company. Stu-

fessionals?

dents wishing to specialize in a specific area of

We require 3 years of experience but not nec-

supply chain such as procurement can under-

essarily in a Supply Chain function. Most of our

take certification courses from reputed supply

students in the current program have between

chain certification bodies.

5 to 7 years of work experience. The average


age is between 26 to 30 years old. Our MBA

How many students are you planning to enroll

program caters to the ambitious professionals

in your MBA Program?

looking to enhance their career. Our MBA pro-

2011 B2G Copyright - Middle East Series

37

Opening a new MBA Program specialization in Operations and Logistics

Opening a new MBA Program specialization in Operations and Logistics


gram gives our students management compe-

As a University, what are the challenges that

tencies which enables them to perform more

you are facing while offering a SCM Program?

efficiently at their job.

Or what prevents you from proposing more


SCM programs? Any specific difficulties?

Do you have an idea of your placement suc-

So far we have not faced any difficulties to of-

cess results?

fer this program and it has been well received.

All our MBA classes are held in the evening


which enables our students to continue to

What are the skills that your feel most compa-

work while studying so placement is not an

nies are looking for in the Supply Chain job

issue. We have a very

market in the Middle

proactive career depart- Most companies are looking for East?


ment which is constantly
candidates with a complete Companies are looking
advertising industry refor people to manage
knowledge
of
the
Supply
Chain
quirements.
their logistics related
functions within their
functions rather than just
In which areas do you
companies and/or their
functional
specialists.

expect that your stu3PL suppliers. Most comdents will be employed after the program?

panies are looking for candidates with a com-

We expect that many of them will be working

plete knowledge of the Supply Chain functions

in logistics services companies or within the

rather than just functional specialists. As Dubai

Supply Chain function of a company. Currently

is becoming a World Class Logistics Hub, and is

our students work in a range of industries in

doing more and more value added operations,

the finance, tourism, logistics, oil & gas, manu-

more and more professionals with higher level

facturing and government agencies.

of management skills are needed. This is what


is going to make a difference in the job market

2011 B2G Copyright - Middle East Series

38

Industry
Insights
Dr. Cedwyn Fernandes, MBA Program Leader

in the next few years.

search for their MBA project under the umbrella of the center of supply chain and excel-

Do you have any special partnership with any

lence.

company in the region?


The Supply Chain and Logistics Group (SCLG)

According to you, what is the future outlook

has been designated as the Industry Partner of

for the supply chain workforce in the region?

the MBA (Operations & Logistics) program.

Do you feel that the demand for Supply Chain

Middlesex University will designate one 100%

and Procurement professionals will remain

SCLG Excellence scholarship for SCLG members

strong?

for this program. SCLG will provide industry

My personal view is that the future of Dubai is

professionals to con-

linked to the Supply

My personal view is that the


University and provide
future of Dubai is linked to the
opportunities for internships in its mem- Supply chain and Logistics industry

chain

ber companies.

Dubai World Central

duct workshops at the

and

Logistics

industry. It is one of
the major drivers of
growth in Dubai. The

project will be central to the restructuring of


Do you plan to have as well research partner-

the supply chains of global companies which

ships?

will contribute to the economic growth in the

Our goal is to build a center of excellence for

region. I believe it will bring a lot investment

Supply Chain Management with one of the big-

and create a lot of opportunities for Supply

gest 3PL companies in Dubai. Hopefully this

Chain professionals.

will be done after one year. Our first step is to


launch the MBA Program in October 2011 and
subsequently students can carry out their re 2011 B2G Copyright - Middle East Series

39

5. Overview of Educational Programs in the SCM Sector

05
University Supply Chain Programs
Overview of Supply Chain programs offered by local universities

ccording to a recent study from Arabian

Logistics whereas others offer Supply Chain

SupplyChain.com, 76.3% of potential stu-

courses as a part of a more general degree.

dents estimate that there is a lack of suitable Supply Chain courses in the Middle East. Moreover,

The University of Wollongong proposes a Master

62.9% think that the quality of Supply Chain

of Science in Logistics in Dubai which was the first

courses in the Middle East is lower than in other

program to be launched in the United Arab Emir-

regions.

ates. It is a one year full time program but it can


also be studied part time while working in the in-

However, a lot of new Supply Chain university pro-

dustry. The program offers a wide range of gen-

grams have appeared in the region in the past few

eral courses on Logistics (Supply Chain Manage-

years. B2G Consulting has reviewed their curricu-

ment, Strategic Supply Chain Management, Inven-

lum and interviewed some of their faculty mem-

tory Management, Procurement Management,

bers in order to have a better understanding of

Inventory Management). It also covers some tech-

the possibilities that they offer to future Supply

nical aspects of the Supply Chain (Logistics System

Chain professionals.

Management, Logistics Information Systems). The


program has recently signed an agreement with

Several types of university programs are available

Maersk Logistics to benefit from insights from in-

in the region. Some universities offer Supply Chain

dustry professionals.

programs to undergraduates (Bahrain Polytechnic,


University of Bolton, University of Dubai, Middle-

The Master in Supply Chain and Logistics Manage-

sex University).

ment offered by Strathclyde Business School is


also very specialized in Supply Chain. It provides a

Other programs are Master of Science specialized

variety of courses on strategic and operational

in Logistics and Supply Chain Management

aspects of Supply Chain but also some courses on

(University of Wollongong, Heriot-Watt University,

Total Quality, on Project Management and on Fi-

University of Bolton, Strathclyde Business School).

nancial Management. A consistent part of the cur-

Some of these programs are specialized degrees in

riculum is dedicated to business applications (case

2011 B2G Copyright - Middle East Series

40

Overview of Educational Programs in


the SCM Sector

Overview of main Supply Chain University


Programs in the Middle East
University

Name

Location

% of
SCM
Content

Program Length

University of Wollongong Dubai Campus

MSc in Logistics

Dubai, UAE

86%

16 Months

Bahrain Polytechnic

Bachelor of International Logistics


Management

Isa Town, Bahrain

50%

4 years

MSc in Logistics and Supply Chain


Management

Dubai, UAE

NA

Diploma in Logistics and Supply


Chain Management

Dubai, UAE

NA

Global MBA Program - Specialization in Supply Chain Management

Dubai, UAE /
Singapore

20%

Heriot-Watt University
Dubai Campus

S P Jain Center of Management


University of Bolton
RAK Campus
Strathclyde Business
School Dubai Campus
University of Dubai

Middlesex University
Dubai

BA in Business Management
MSc in Supply Chain Management
Master in Supply Chain and Logistics Management
BBA in Supply Chain & Logistics
Management
MBA Program in Logistics & Operations Management
MBA Program
BA in Business Management /
Business Administration

Ras Al Kaimah,
UAE
Ras Al Kaimah,
UAE
Bahrain, Oman,
UAE

12 Months (Full
time) 24 Months
(Part Time)
9 Months (Full
time) - 21 Months
(Part Time)
1 year (6 Months in
Dubai / 6 Months
in Singapore)

NA

3 years

NA

1 year

60%

1 year full time, 2


years part time

Dubai, UAE

21%

4 years

Dubai, UAE

38%

1 year

Dubai, UAE

13%

2 years

Dubai, UAE

NA

3 years

Exhibit 5.1: Main Supply Chain University Programs in the Middle East

2011 B2G Copyright - Middle East Series

41

5. Overview of Educational Programs in the SCM Sector

05
studies, master project). The program can be com-

Middle East through its campus in Ras Al Khaimah,

pleted in two years part time in various locations

UAE offers the possibility to both undergraduates

in the Middle East (Dubai, Abu Dhabi, Riffa, Mus-

and graduates to get a UK degree in Supply Chain

cat).

Management.

Bahrain Polytechnic has recently started to offer a

Other universities propose MBA programs with

Bachelor of International Logistics Management

more general business courses but including a

for about 80 students per year. The university pro-

Supply Chain module within their optional spe-

vides a variety of specialized courses in the field of

cializations.

Logistics and Transportation (Freight and Warehouse Operations, Fleet Management, Transport

This is the case of the Middlesex University in Du-

Law, Maritime Shipping Systems,). After comple-

bai which offers a specialization module in Supply

tion of the program, students enter in various pro-

Chain Management that includes courses strategic

fessions in the Navy, the Customs, the Police or

and operational aspects of Logistics. The Univer-

Airline, Maritime or Railway companies. Some ca-

sity has recently been endorsed by the Supply

reers are also possible within Transportation and

Chain & Logistics Group (SCLG) who are desig-

Logistics services companies.

nated as the industry partner for their MBA.

Heriot-Watt University also offers a Master of

S P Jain Center of Management also has a spe-

Science in Logistics and Supply Chain Manage-

cialization in Supply Chain Management as an op-

ment. The program can be studied within one year

tional module for their program. This university

full time or two years part time. It includes

allows the MBA students to study 6 months in Du-

courses such as design and operations of logistics

bai and 6 months in Singapore which are both two

systems, freight transport, global purchasing and

important logistics hubs.

supply and maritime logistics. The university is


also recognized in the field of green logistics as

The University of Dubai offers a 4 year bachelor

the professor who delivers this course is also chair

degree in Business Administration with a major in

of the World Economic Forums Council on the

Supply Chain and Logistics Management which is

Future of Transportation.

designed to prepare students for entry-level position in Logistics. They also have a 1 year MBA pro-

The University of Bolton which is present in the


2011 B2G Copyright - Middle East Series

gram in Logistics and Supply Chain Management.


42

Overview of Educational Programs in


the SCM Sector

Supply Chain content of main university programs

Contract Management
Production Planning
Project Management

Supply Chain IT
(ERP, WMS)

Demand Forecasting

Supply Chain Strategy

Middlesex
University
Dubai

University of
Dubai

Strathclyde
Business
School

SP Jain Center of Management

University of
Bolton RAK

Heriot-Watt
University
Dubai

Inventory Management

Bahrain
Polytechnic

Procurement

University of
Wollongong
Dubai

Transport, Shipping &


Distribution
Warehousing Operations

Topic is studied during a more general course


Topic is the main subject of a dedicated course

Exhibit 5.2: Supply Chain content of main university programs

2011 B2G Copyright - Middle East Series

43

5. Overview of Educational Programs in the SCM Sector

Preparing Future Logistics


Professionals
John Webb is the Project Manager for the School of Logistics and Maritime Studies at Bahrain Polytechnic and has responsibility for the academic direction and industry partnerships that are vital to the acceptance of the Bachelor of International Logistics Management (BILM) in Bahrain and the Middle East
region. John was educated in New Zealand and holds degrees from two New Zealand universities, he
has a Masters Degree in Transport Management from Lincoln University and a Bachelor of Arts from the
University of Auckland.
John is relatively new to education having joined Bahrain Polytechnic in 2009 after spending a year as a
Lecturer at Lincoln University. Prior to this he spent his nearly twenty years in various roles within the
maritime side of the international logistics industry. His first specialised logistics qualification was that
of a logistics officer within the Royal New Zealand Navy which provided a solid logistics background and
understanding of the maritime environment that would assist in following positions within the industry.
After his military career John joined the stevedoring industry in New Zealand as a Stevedoring Supervisor and worked in a number of positions before eventually becoming the General Manager of Operations for New Zealands third largest port which is located at Lyttelton. John has substantial experience
in all types of cargo operations in a port and shipping environment having managed bulk, general cargo,
container terminal, marine and security departments within the New Zealand port environment.

How strong is the demand for logistics / SCM

Within the Economic Development Board of

programs in the Middle East? When did you

Bahrain 2030 Vision the transport and logistics

start your program? Why?

sector is identified as an industry that has the

2011 B2G Copyright - Middle East Series

44

Industry
Insights
Mr. John Webb, Project Manager
Bahrain Polytechnic

potential to grow and add value to the Bahrain

of developing a transport and logistics hub

economy in the future. This focus on the indus-

within Bahrain which will be a vital part of the

try has lead to a demand from young Bahraini

future prosperity of the Kingdom. As such the

and other GCC nationals for academic qualifi-

degree course of study is very broad and it is

cation, skills and training that will assist them

planned to offers majors in Supply Chain Man-

in a career in this developing industry.

agement, Maritime Logistics, Aviation Logistics,

To assist young Bahraini and other GCC nation-

Transport Security

als in fulfilling their academic goals, Bahrain


Polytechnic has developed the Bachelor of International

What is the trend for your university? Devel-

Logistics

oping more SCM prothe


transport
and
logistics
sector
is
Management (BILM)
grams?
which is now in the identified as an industry that has Once the BILM has
second year of delivthe potential to grow and add value been embedded at
ery.
Bahrain Polytechnic
to the Bahrain economy
This has led to very
there are plans that
strong demand for places in the BILM at Bah-

could see the delivery of graduate certificates

rain Polytechnic. There are currently 120 stu-

and diplomas and Masters level qualifications.

dents enrolled in the first two years of the

The rational for this is to support the progress

BILM with an expected 80 additional students

of individuals already working in the industry

to begin studies in the degree in September

who need to up-skill in order to advance in

2011.

their career as well as of individuals that are

The BILM is not strictly a Supply Chain Manage-

seeking a career change from their current in-

ment (SCM) program. It is a logistics degree

dustry having identified the logistics sector as a

that has been designed to meet the challenges

growth area with solid long term prospects.

2011 B2G Copyright - Middle East Series

45

Preparing Future Logistics Professionals

Preparing Future Logistics


Professionals
It is also being discussed that a SCM major

some success in this process. However we do

could also be offered within the Bachelor of

encounter every semester students keen to

Business Studies that would provide Bahrain

join the program but who have parents that

Polytechnic students who are more focused in

need convincing that the transport and logis-

traditional business careers a background un-

tics industry has opportunities for lifetime ca-

derstanding in the international logistics indus-

reers.

try that can provide them with career options

This has been overcome through education

in this growing industry.

forums with parents and potential students


where the make-up, size and opportunities of

As

University,

the

international

the biggest challenge was educating logistics industry are


what are the challenges that you are parents of potential students in the discussed. This usufacing while offering
ally has a number of
basics
of
the
logistics
industry
a SCM Program?
parents expressing
There have been a number of challenges that

their surprise at the number and diversity of

have been faced while developing the BILM. In

the careers available in this industry.

the first year of offering a programme in logis-

Another challenge has been to develop the

tics the biggest challenge was educating par-

acceptance of the BILM and our future gradu-

ents of potential students in the basics of the

ates in the local, regional and international

logistics industry as many had never previously

logistics industry. To assist in this process a

heard of the sector.

Curriculum Advisory Committee (CAC) has

We believe that student demand for positions

been formed that consists of senior managers

in the BILM would show that we have had

within the Bahrain logistics industry. This com-

2011 B2G Copyright - Middle East Series

46

Industry
Insights
Mr. John Webb, Project Manager
Bahrain Polytechnic

mittee meets to discuss the courses on offer

dards of the education they have received

and provide guidance on the direction of the

through the global recognition of the CILT part-

BILM as a course of study. The importance of

ner awards.

the CAC committee to the BILM students is

Other non CILT sourced courses of study are

that they be assured that what they are learn-

developed on behalf of Bahrain Polytechnic by

ing is in partnership with and relevant to indus-

a group of transport and logistics professors

try.

and academics headed by Emeritus Professor

To ensure that the BILM from Bahrain Poly-

Chris Kissling from Lincoln University. The

technic has international recognition we have

group utilises professionals from across the

partnered with the

logistics sector to

To ensure international recognition develop papers speChartered Institute


of Logistics and we have partnered with the Chartered cifically sourced for
Transport (CILT) and
Bahrain Polytechnic
Institute
of
Logistics
and
Transport
their
Certificate,
and customized for
Diploma and Advanced Diploma courses are

local, regional and international perspectives.

embedded within the degree course of study.

This ensures that Bahraini and other nationali-

The certificate level courses are compulsory

ties that study at Bahrain Polytechnic under-

and the other qualifications are optional for

take papers that are of a global standard hav-

students. The CILT based qualifications are

ing been written and audited by well respected

awarded to students as they progress through

academics and industry professionals. This pro-

the BILM. This awarding of duel qualifications

vides graduates with a unique insight into the

will assist BILM students in proving to interna-

potential situations that they will face in their

tional employers the validity and high stan-

working careers.

2011 B2G Copyright - Middle East Series

47

Preparing Future Logistics Professionals

Preparing Future Logistics


Professionals

To support all of the above points the BILM

What is the background of the students / pro-

also has an international monitoring pro-

fessionals?

gramme to ensure that the courses being of-

Currently the majority of our students are

fered are at an internationally accepted stan-

school leavers. This is due to the fact that we

dard. The monitor for the BILM is Professor

are still an institute in a post set up phase. Our

Ross Robinson who is the Dean of the Austra-

long term vision is to be the institute of choice

lian Maritime College at the University of Tas-

for adult learners and those pursuing part-time

mania as well as being a globally respected

study in the Kingdom of Bahrain.

academic in regards to supply

Our long term vision is What is the ratio between SC


tics environment.
to be the institute of courses and the rest?
Bahrain Polytechnic also delivchoice
for
adult
learners
Which type of courses are the
ers degree courses in Busichains and the maritime logis-

students most demanding: Procurement, Sup-

ness, Engineering, Design, Information Tech-

ply Chain Strategy, Freight and Transport?

nology and Office Administration.

The BILM is only on the second year. To date

Bahrain Polytechnic also has a foundation pro-

the areas of maritime logistics and aviation

gramme that many of our students complete

logistics have been identified by our first co-

before undertaking their degree course of

horts of students as their preferred areas of

study. This runs for a semester or two and is

study.

aimed at assisting students in the challenge of


completing a degree in a second language

2011 B2G Copyright - Middle East Series

48

Industry
Insights
Mr. John Webb, Project Manager
Bahrain Polytechnic

The School of Logistics and Maritime Studies

Employers are looking for graduates that have

has approximately 10% of the students cur-

a very good academic knowledge of the indus-

rently enrolled at Bahrain Polytechnic.

try as a whole, traditional business degrees


with SCM majors will always have their place in

How many students do you have each year?

the market but more and more logistics com-

The BILM has two enrollment periods per year.

panies are seeking degree graduates that have

It was initially expected to have approximately

focused primarily on the logistics industry.

30 students per semester but this is currently

As mentioned earlier the BILM involves indus-

being reviewed due to


the interest from students in the programme.
What are the skills that

All employers are looking for a


solid academic qualification in
their potential employees

try leaders in all phases


of the BILM development
so that graduates are
deemed by employers to
be relevant to industry.

your feel most companies are looking for in

In our relationship with employers we have

the Supply Chain market in the Middle East?

ascertained that academic understanding must

All employers are looking for a solid academic

be developed along with a series of critical

qualification in their potential employees. The

soft skills. These soft skills include such

Middle East is developing into a centre for

things as the importance of appearance and

global hubbing and the associated production

punctuality, ability to work individually and in

networks and secondary business functions

groups, confidence in various forms of commu-

that develop in trans-shipment and production

nications and a desire to be a life long learner.

hubs.

2011 B2G Copyright - Middle East Series

49

Preparing Future Logistics Professionals

Industry
Insights
Mr. John Webb, Project Manager
Bahrain Polytechnic

To meet the demands of industry and the ex-

The School of Logistics and Maritime Studies is

pectations of potential employees these soft

also developing a partnership with Maersk

skills are embedded within all courses of study

Training that will concentrate on more industry

at the polytechnic and are referred to as

focused skills development. This potential part-

employability skills.

nership will allow students to be trained by a


global logistics leader and will allow the devel-

Do you have any special partnership with any

opment of specialized skills in such areas as the

company in the region?

maritime and offshore industries.

As mentioned above

The companies inThe


companies
involved
in
assisting
Bahrain industry leadvolved in assisting
ers have been fully the development of the BILM have the development of
involved in the develthe BILM have been
been extremely supportive
opment of the BILM

extremely supportive

which has formed close partnerships with a

as they all recognize the importance of edu-

number of Bahraini and Bahrain entities of

cated and motivated staff to the future devel-

large multi-nationals. The BILM development

opment and potential of their companies and

has been closely assisted by APM Terminals,

organizations.

Agility, the General Organisation of Seaports in


Bahrain, the Kingdom of Bahrain Civil Aviation
Affairs, DHL, First Bahrain and others.

2011 B2G Copyright - Middle East Series

50

Overview of Educational Programs in


the SCM Sector
Certifications
Certifications: An opportunity to get recognized as a Supply Chain or a Procurement professional.

here are a number of international certifica-

Association for Operations Management

tions which are available to Supply Chain

The Association for Operations Management

and Procurement professionals. They provide a

(APICS) proposes 3 professional certifications

way to increase knowledge as well as the opportu-

(CSCP, CPIM, CFPIM). The CPIM focuses on Pro-

nity to be part of a professional network.

duction Planning and on Inventory Management


whereas the CSCP encompasses a wider range of

Chartered Institute of Logistic and Transport

supply chain aspects. Unless working in a manu-

The Chartered Institute of Logistic and Transport

facturing related work, the CSCP would be in gen-

(CILT) claim 33,000 members working into 100

eral more adapted to a Supply Chain professional

countries worldwide. It was established in 1919 in

willing to increase his knowledge in all Supply

the UK and its main objective is to promote and

Chain functions. The APICS claims that there are

encourage the art and science of Logistics and

about 8,300 APICS CSCP designees and about

Transport. It proposes several levels of certifica-

90,000 APICS CPIM designees worldwide. The

tions: The certificate is intended for entry level

CFPIM designation is awarded to an elite group of

positions. It focuses on operational aspects of Sup-

CPIM holders who participate in the development

ply chain (Freight, Warehousing and Port Opera-

of the CPIM certification.

tions). The International Diploma in Logistics and


Transport includes additional material such as In-

Institute of Operations Management

ventory Management and Transport Economics

The Institute of Operations Management proposes

and Finance and is typically adapted for middle

3 levels of certifications specialized in Operations

management positions. The last level, Interna-

Management. Some modules can be also used by

tional Advanced Diploma in Logistics and Trans-

CILT candidates. The program is focusing on pro-

port focuses on strategic aspects of Supply Chain

duction and operations management but some

and is intended for senior management profes-

courses are also related to Procurement, Inven-

sionals.

tory, Materials Requirement Planning.

2011 B2G Copyright - Middle East Series

51

5. Overview of Educational Programs in the SCM Sector

Overview of Main Supply Chain Professional Associations


Organisation

Origin

Middle
East
Location

Chartered Institute
of Logistic and Transport (CILT)

UK

Dubai
(UAE)

Association for Operations Management (APICS)

US

None

Institute of Operations Management


(IOM)

UK

None

UK

Dubai
(UAE)

US

None

US

Cairo
(Egypt)

US

None

Chartered Institute
of Purchasing and
Supply (CIPS)

Supply Chain Council


(SCC)
Council of Supply
Chain Management
Professionals
(SSCMP)
Institute for Supply
Management (ISM)

Professional Certifications

International Certificate in Logistics and Transport


International Diploma in Logistics and Transport
International Advanced Diploma in Logistics and Transport
Certified Supply Chain Professional (CSCP)
Certified in Production and Inventory Management (CPIM)
Certified Fellow in Production and Inventory Management
(CFPIM)
Certificate in Operations Management
Diploma in Operations Management
Advanced Diploma in Operations Management
Level 2 Introductory Certificate in Purchasing and Supply
International Certificate in Purchasing and Supply
Level 3 Certificate in Purchasing and Supply
International Advanced Certificate in Purchasing and Supply
Level 4 Foundation Diploma in Purchasing and Supply
Level 5 Advanced Diploma in Purchasing and Supply
Level 6 Graduate Diploma in Purchasing and Supply
Level 7 Executive Diploma in Purchasing and Supply
SCOR Scholar (SCOR-S)
SCOR Professional (SCOR-P)
Education material only
Certified Professional in Supply Management (CPSM)
Certified Professional in Supplier Diversity (CPSD)

Exhibit 5.3: Overview of Main Supply Chain Professional Associations


2011 B2G Copyright - Middle East Series

52

Overview of Educational Programs in


the SCM Sector

Chartered Institute of Purchasing and Supply

rica. There is no direct presence in the region but

The Chartered Institute of Purchasing and Supply

a Middle East Chapter has been founded in De-

offers several certifications in Purchasing and Sup-

cember 2010 and regularly organizes training

ply to Procurement professionals. The institute is

events and conferences.

based in the UK but proposes international certifications and has a subsidiary in Dubai. Their claim

Council of Supply Chain Management

65,000 certified members worldwide.

Professionals
The Council of Supply Chain Management Profes-

Supply Chain Council

sionals (CSMCP) is an organization which counts

The Supply Chain Council (SCC) is a US based or-

about 8,500 Supply chain professional members.

ganization that developed, a framework to evalu-

This organization does not deliver any certification

ate supply chain processes and performance

but focuses on providing online and onsite re-

across companies.

This methodology named

search and educational resources to its members.

SCOR for Supply Chain Operations Reference

The organization regularly organizes roundtables

model has continuously been updated over the

events in Egypt and in Turkey.

past fifteen years of its existence. The Supply


Chain council provides a four day training which

Institute for Supply Management

ends with a SCOR certification. SCOR-P certifica-

The Institute for Supply Management (ISM) is a US

tion is only available for professionals who can

based organization which was founded in 1915. It

justify at least 5 years of working experience in

includes more than 40,000 supply management

Supply

Chain. Another SCOR-S certification is

members within the US and internationally. The

available to students willing to learn more about

Certified Professional in Supply Management

the SCOR model and benefit from the networking

(CPSM) requires the passing of 3 examinations and

opportunities of the Supply Chain Council mem-

proof of 3 years of full time professional experi-

bership. The Supply Chain Council claims one

ence. The institute does not have any affiliate in

thousand corporate members worldwide and has

the Middle East but the exams can be passed

established international chapters in North Amer-

through INDEC, their representative in Saudi Ara-

ica, Europe, Greater China, Japan, Australia/New

bia.

Zealand, South East Asia, Brazil and Southern Af 2011 B2G Copyright - Middle East Series

53

Bringing a world class supply chain organization to North Africa & Middle East

Bringing a world class supply chain


organization to North Africa & Middle
East
Mohammed Shalaby, as the chairman of the Supply Chain Council Middle East Chapter, cordially accepted
to share his insights of the state of supply chain education in the region.
Graduated of a Master of Science in Engineering from the American University in Cairo, followed by an
executive MBA at ESC Rennes in France, Mohammed Shalaby recalls that, right after his graduation, he
jumped into the supply chain discipline very early while doing a summer internship at REVLON in UK. After
holding various managerial positions in process engineering, production, quality control, supply chain and
purchasing at international companies such as Unilever, he joined Seasons Company a sister company of
Olympic Group, a leading Egyptian conglomerate of companies in domestic appliances, as a plant director
in 2008.
Beyond the manufacturing aspect, his responsibilities cover the extended supply chain as it encompasses
operations, supply chain and R&D. This particular umbrella ensures a critical link between Operations and
Research so as to guarantee the operation-ability and supply chain-ability of any new products.

What is the Supply Chain Council?

widely accepted framework for evaluating and

Supply Chain Council (SCC) is a global nonprofit

comparing supply chain activities and their per-

organization whose methodology, diagnostic,

formance. The frameworkthe Supply Chain

and benchmarking tools help nearly a thou-

Operations Reference (SCOR) modellets

sand organizations make dramatic and rapid

organizations quickly determine and compare

improvements in supply chain processes. SCC

the performance of supply chain and related

has established the supply chain worlds most

operations within their company or against

2011 B2G Copyright - Middle East Series

54

Industry
Insights
Mr. Mohamed Shalaby
Chairman of North Africa & Middle East Chapter

other organizations. SCC continually advances

Council's membership consists primarily of

its tools and educates members about how

practitioners representing a broad cross sec-

organizations are capitalizing on those tools.

tion of industries, including manufacturers,

By using its tools, SCC members are able to

services, distributors, and retailers.

rapidly overcome the first difficult step in supply chain improvement: determining what

Why have you embarked in such a journey to

processes to improve first and how much to

bring the SCC in NA & ME?

improve them.

Having worked in multi-

The first difficult step in Supply national companies with


was organized in 1996
a high level of maturity
Chain
improvement:
Determining
by Pittiglio Rabin Todd &
in supply chain (strongly
McGrath (PRTM) and what processes to improve first service oriented and
AMR Research, and inihighly focused on costand
how
much
to
improve
them
tially included 69 volunefficient operations), I
Supply

Chain

Council

tary member organizations. Supply Chain

hadnt realized the hard truths of the current

Council now has close to 1,000 corporate

state of supply chain until recently, for the ma-

members worldwide and has established inter-

jority of companies in the Middle East, espe-

national chapters in Australia/New Zealand,

cially for the local ones. While dealing with lo-

Europe, Greater China, Japan, Latin America,

cal suppliers, I have been hit by a clear lack of

North America, South East Asia, Middle East

supply chain knowledge from their teams.

and Southern Africa. Development of addi-

Consequently, I felt the need of engaging my-

tional chapters is underway. Supply Chain

self in a recognized organization that could

2011 B2G Copyright - Middle East Series

55

Bringing a world class supply chain organization to North Africa & Middle East

Bringing a world class supply chain


organization to North Africa & Middle
East
help companies in the region to improve the

tives such as providing supply chain profiles,

level of maturity of their supply chains. As I

from our network, to companies which are

had clear ideas on how to develop my plan, I

seeking out highly qualified professionals.

found a very enthusiastic team to support it

In addition, we are developing partnerships

and conceptualized it through the Supply Chain

with universities such as American Academy in

Council Middle East Chapter.

Cairo and the Arab Academy to build specific


educational programs based on the SCOR

What is the chapters mission? What are your

Model for MBAs, and then to extend it to un-

long term goals?

dergraduates. We noticed

We are developing partner- that the lack of experience


The mission of the SSC
Middle East Chapter is to ships with universities to build in supply chain was mainly
support the development
due to the scarcity of spespecific
educational
programs
of the supply chain discicialized programs in the
pline for the benefits of all organizations in

region. So to address this situation in the long

Middle East, by creating a dynamic momentum

run, we have made the point that we needed

with a strong group of supply chain leaders.

to work on the root cause.

Our well experienced team has the mission to

More supply chain professionals with the abil-

grow in number and importance the second

ity to cover the entire scope of the supply

line of supply chain leaders to prepare the re-

chain (sourcing/procurement, manufacturing,

placement of the few strong calibers in the

demand/supply planning, logistics / distribu-

region.

tion, CRM etc) are required to tackle our cur-

In this regard, we intend to launch new initia-

rent challenges.

2011 B2G Copyright - Middle East Series

56

Industry
Insights
Mr. Mohamed Shalaby
Chairman of North Africa & Middle East Chapter

Our last objective is to diffuse the supply chain

tions through their global operations.

best practices amongst the practitioners. We

We need more benchmarks to be able to iden-

intend to encourage best-in-class companies to

tify the gaps to be filled to reach world class

share their textbook case studies with local

levels. Today, although the situation tends to

companies. We want to emulate organizations

get better, it is quite infrequent to find a

to strive for the best by understanding how

proper SCORcard or a long term strategic plan.

other companies manage to deliver out-

Actually, this lack of visibility has refrained the

standing results. This could only be done

supply chain from developing faster in addition

through proper benchmark-

to other specific challenges

The Supply Chain is still at like ineffectiveness in planing that the Supply Chain
Council Globally sponsors in its infancy stage, except for ning, complexity of inadeall its chapters to allow
quate information systems,
a
handful
of
multinationals
member companies to deinability to conceptualize
fine where they stand today on their Key Sup-

etc

ply Chain KPI's.


According to you, what are the Manpower
How do you perceive the Supply Chain in the

challenges currently faced? What are the skills

region?

the most lacking?

Frankly speaking, the Supply Chain is still at its

The most striking manpower challenge in the


Middle East is the relative lack of strong calibers in supply chain. Very few supply chain
professionals have a recognized academic

infancy stage, except for a handful of multinationals such as P&G, Master Foods or Unilever,
which are recognized as best-in-class organiza-

2011 B2G Copyright - Middle East Series

57

Bringing a world class supply chain organization to North Africa & Middle East

Industry
Insights
Mr. Mohamed Shalaby
Chairman of North Africa & Middle East Chapter

background, but rather show an extensive onthe-ground experience.


This work experience is generally much limited
to a specific area of the supply chain like purchasing or shipping or warehousing but hardly
covers the end-to-end scope.
Some professionals have been certified
through recognized organizations like APICS
(CSCP, CPIM) or SCC
(SCOR) to accredit their
work experience; however it does not replace
an academic background provided by a Master of Science in Supply Chain for instance.
According to me, the skill the most lacking lies
in the planning function, which is a critical
component of the supply chain performance.
At both levels, operational (forecasting, demand/supply planning, scheduling etc) and
strategic (strategic SC planning), there are major areas for improvement.
According to you, what will SCOR certification

bring to supply chain professionals in the region?


Amongst all existing certifications, SCOR is
much closer to the real operational world and
help companies to map and organize their Supply Chain to understand and better optimize its
potentials, with a specific focus on planning
aspects. For all these reasons, I believe that the
SCOR Model should
bring a lot of benefits
to the professionals in
the region, in particular to help them improving their planning inefficiency.
Generally speaking, supply chain is a great vector for delivering significant improvement in
the region. Even at a personal level, people can
obtain better results with a better understanding of this complex discipline, to the point that
delivering outstanding customer service becomes an everlasting addiction.

Generally speaking, supply chain is


a great vector for delivering significant improvement in the region.

2011 B2G Copyright - Middle East Series

58

Overview of Educational Programs in


the SCM Sector

Training Centers for professionals


Training Centers for professionals: A variety of short training solutions

or Supply Chain and Procurement profession-

Most of them as Blue Ocean Academy, IRR Middle

als willing to gain more knowledge in their

East or ITI Institute propose a wide range of solu-

area of expertise, some trainings are offered by

tions that are not limited to Supply Chain nor Pro-

several educational organizations in the region.

curement. They generally provide training solu-

A list of some professional training centers avail-

tions in various areas of management. Middle East

able in the Middle East is available in Exhibit 4.4.

Logistics Institute on the other hand is specialized

This list is not comprehensive. The main training

in Logistics.

solutions that these organizations are proposing in


the field of Supply Chain are presented in Exhibit
4.5.

Professional Training Centers


in the Middle East
Organization
Blue Ocean Academy
IRR Middle East
ITI Institute
MEIRC Training & Consulting
Middle East Logistics Intitute (MELI)
Phoenix Educational Institute

Website
http://www.blueoceanacademy.org
http://www.iirme.com
http://www.itiinstitute.org
http://www.meirc.com/
http://www.meli.edu.sa/en/main.aspx
http://www.phoenixuae.org/

Exhibit 5.4: Overview of Professional Training Centers in the Middle East

2011 B2G Copyright - Middle East Series

59

5. Overview of Educational Programs in the SCM Sector

Supply Chain Training Programs


in the Middle East
ITI
Institute

MEIRC
Training &
Consulting

Middle East
Logistics
Intitute
(MELI)

Phoenix
Educational
Institute

Dubai

Abu Dhabi,
Doha, Dubai, Riyadh

Dubai

Abu Dhabi,
Beirut, Doha,
Dubai, Istanbul, Jeddah
Riyadh

Dammam

Dubai

Transport &
Logistics

Warehousing
Operations

Procurement

Inventory
Management

Organization

Training Locations

T
r
a
i
n
i
n
g
C
o
n
t
e
n
t

Blue
Ocean
Academy

IRR
Middle
East

Demand
Forecasting

Contract
Management

Production
Planning

Project
Management

Supply Chain
Strategy

Supply Chain
IT

Exhibit 5.4: Overview of Supply Chain Training Programs in the Middle East. Supply Chain content can change over
time.

2011 B2G Copyright - Middle East Series

60

Overview of Educational Programs in


the SCM Sector

Corporate Trainings
How Middle Eastern companies train their own employees?

nother solution for professionals to improve

According to this study, the frequency of the Sup-

in Supply Chain Management is to benefit

ply Chain staff trainings was below 5 times a year

from training programs provided internally. How-

in 68% of the cases and in 28% of the cases, sup-

ever a recent questionnaire conducted by B2G

ply chain staff had not received any company

Consulting to Supply Chain Executives showed

training during the previous year.

that this solution had still not gained momentum.

However a review of press releases on company


websites (Exhibit 5.6) shows that a lot of initiatives

Frequency of Corporate Trainings


provided to Supply Chain Staff

are conducted in order to develop training programs in the Middle East. Large organizations such
as Sabic or Schlumberger are building dedicated

4%

building and facilities to increase the competen-

28%

cies of their employees. Some logistics services


Never

providers such as Agility Logistics are establishing

Below 5 times a year

partnership with consulting firms in order to build

Between 5 to 10
times a year

better training solutions for their employees.

68%

Other companies such as Aramex chose to rely on


a local university to enhance the logistics skills of
their staff. Saudi Aramco offers a wide range of

Exhibit 5.5: Frequency of Corporate Trainings provided to Supply Chain Staff

training opportunities for students who want to


join the oil & gas company. The company has also
developed some eLearning tools for its employees
(Online training tools, online management courses
and online libraries).

2011 B2G Copyright - Middle East Series

61

5. Overview of Educational Programs in the SCM Sector

Overview of Educational Programs in


the SCM Sector

Agility
Logistics

Agility Logistics recently partnered with a training and consulting organization, Rasmussen &
Simonsen International for its company Logistics University. Employees from the supply
chain solutions provider will benefit from training programs delivered by Rasmussen & Simonsen International consultants in order to enhance their logistic skills.

Aramex recently launched the ARAMEX Center of Excellence for Logistics with the German
Jordan University. The center, where academic staff will work closely with Aramex experts,
will play a role in designing the Supply Chain related university programs and allow professionals to learn latest logistics techniques. It will also contribute to raise logistics standards
in the region.

The oilfield services company has built along with Abu Dhabi National Oil company the
Schlumberger Middle East and Asia Learning Center in Abu Dhabi. The training facilities
include meeting rooms, workshops, laboratories as well as oil field equipments to train petroleum engineers and operators. Both Adnoc and Schlumberger employees will be able to benefit from this new training center in Abu Dhabi. It is now the fourth that the company possesses after the ones which were built in the United States, in the United Kingdom and in
France.

Sabic is constructing a 10,000, sq. meter building in Riyadh to train its employees. The new
facility should open in 2011 and will be able to host up to 500 employees at the same time in
26 meeting rooms. This project called the Learning and Development Center is part of Sabic
2020 strategic plan to become a learning organization.

The petrochemical company is also developing a Learning Management system that will be
common across all Sabic affiliates. The system will enable employees and their managers to
set some objectives and to follow up on the development of required competencies.

The company is also working on the standardization of training courses in order to have the
same offerings in all regions. The goal is to enable employees to better work together and
understand each other.

Saudi Aramco sponsors a selected number of employees each year to study a bachelor degree
in one technical field chosen according to the company current needs. The company also offers a 4 week program to about 60 selected students each year.

Saudi Aramco provides the possibility for its Saudi engineers and technicians to work for an
international company for a few years in order to increase their professional experience.

Saudi Aramco regularly organizes The Saudi Aramco Leadership Forum that allows middle
and senior management executives to discuss one topic of importance for the company.

Aramex

Schlumberger

Sabic

Saudi Aramco

Exhibit 5.6: Some example of corporate training initiatives in the Middle East

2011 B2G Copyright - Middle East Series

62

Industry
Insights
Mr. Subbs Mukherjee, General Manager
Bahrain Water Bottling & Beverage Company

Empowering a supply chain organization by transforming each employee


into a general manager
Mr. Subbs Mukherjee is General Manager at Bahrain Water Bottling & Beverage Company, the leading
water bottling company in Bahrain. Dedicated to delivering excellence in customer service, Mr. Mukherjee has been supporting various organizations for more than 20 years to enhance their operational capability while improving their financial performance. This energetic and passionate general manager
shares with us his broad knowledge and deep vision on the challenges of empowering employees to
think and act as a General Manager.
Today, Mr. Subbs Mukherjee is sharing with Frederic Gomer, partner at B2G Consulting, his deep insights on the Challenges in Supply Chain Education for the GCC Region.

In few words, please describe your company

tilled water, manufacturing the brands Tylos,

activity?

Delta and Salsabil. As of January 1, 2007, BWBB

Bahrain Water Bottling & Beverage Co. (BWBB)

operates as a subsidiary of General Trading &

manufactures bottles, and markets bottled

Food Processing Company B.S.C (TRAFCO). The

drinking water and beverages. BWBB is a lead-

parent company TRAFCO is a Bahrain-based

ing Bahrain Supplier of mineral water and dis-

public shareholding company engaged in the

2011 B2G Copyright - Middle East Series

63

Empowering a supply chain organization by transforming each employee into a general manager

Empowering a supply chain organization by transforming each employee


into a general manager
import and distribution of frozen, canned and

tles delivered per month from our facility in

dry food products. TRAFCO imports interna-

Bahrain, with major customers such as Gulf Air.

tional consumer food products under such

With more than 120 suppliers and 3500 cus-

brands as Sadia, Rainbow, Friendship, Honig,

tomers, our perspective of supply chain man-

Noor, Koka, Al-Zamil food, Royal Norfolk, Wes-

agement goes end-to-end from suppliers to

sex and Best Choice. The Company also im-

customers including the end consumers. In this

ports and distributes fresh fruits and vegeta-

regard, we have chosen to integrate our cus-

bles across Bahrain. It operates six subsidiaries,

tomers into our supply chain, or I should rather

Bahrain Fresh Fruits Co. WLL, Awal Dairy Co.

say that in most cases we have chosen to be

WLL, Bahrain Water Bot-

fully part of our custom-

tling and Beverage Com- we could have leaner operations ers supply chain. In this
pany BSC, Kuwait Bahhighly competitive marthat would be resulting in
rain Dairy Co. WLL, Al
ket, we have understood
significant
cost
savings
Qataria Bahraini Food
that it is really important
Trade Company, and Bahrain Live Stock Com-

that the entire supply chain becomes competi-

pany WLL.

tive and not only limited to our company.

Could you please give an overview of the sup-

What was your biggest challenge in supply

ply chain at BWBB?

chain at BWBB?

At BWBB, our supply chain covers our core ac-

Currently we are facing four main challenges at

tivities from water wells management, water

BWBB, cost containment, risk management,

bottling, storage and distribution. The volume

working capital optimization and supply visibil-

of activity represents more than 3,600,000 bot-

ity:

2011 B2G Copyright - Middle East Series

64

Industry
Insights
Mr. Subbs Mukherjee, General Manager
Bahrain Water Bottling & Beverage Company

1. Cost containment

they need their cash faster. So we had to figure

We have realized that we could have leaner

out ways to optimize our own working capital

operations that would be resulting in signifi-

considering theses constraints.

cant cost savings. Our objective is to reach the

4. Supply visibility

best landed cost considering the price fluctua-

As the old adage says: whatever visible is sel-

tion and the raw material distribution cost.

lable, so it is crucial to have a complete visibil-

2. Risk management

ity of the end-to-end supply chain amongst

Considering the major risks that we are facing,

business partners in order to take better busi-

one of them is related to the significant price

ness decisions. Todays supply chains are com-

fluctuation. In our

industry prices fluc- It is really important that the entire


tuation of raw mate- supply chain becomes competitive and
rials is a major issue
not only limited to our company
that has a negative

plex and more extended,

which

forces companies to
synchronize better
their

information

impact on the companys profitability. We

flows and their communication means be-

need to secure the prices at a reasonable level

tween them.

by integrating as much as possible our suppliers in our value chain.


3. Working capital optimization

How does BBWB manage to retain talents?


Any specific program?

Due to the credit crisis, companies had to face

When I joined BWBB, my first intention was to

high pressure on their working capital. The

empower my team, from the operators to the

consequence is that most suppliers are now

management team. We do experience difficul-

requesting to reduce the accounts payables as

ties in recruiting qualified professionals, how-

2011 B2G Copyright - Middle East Series

65

Empowering a supply chain organization by transforming each employee into a general manager

Industry
Insights
Mr. Subbs Mukherjee, General Manager
Bahrain Water Bottling & Beverage Company

ever I believe that besides the skills aspect

indeed. What we were lacking in the past was

people can become better achiever when they

a program to empower our local workforce,

own their job. I mean when they really own

now it becomes easier to recruit well qualified

what they do. So before providing any training,

young Bahraini professionals. The govern-

I first installed a sense of fairness to make my

ments focus is now on achieving better profes-

team feels secured as a family. Then, I focused

sional education in Bahrain, which is a funda-

my effort on developing a sense of ownership

mental step in the process of growing talents

and to instill it throughout the entire company.

in any nation.

Today my team takes its own decision without


having me to command them; they naturally
consult me for guidance

How important is innovation at BWBB?


Compared to our biggest

and final validation but The governments focus is now competitors such as Cocathe course of actions is on achieving better professional cola, Nestle or Pepsi Cola,
proposed by them and
we have to differentiate
education
in
Bahrain.
the decision is made acourselves with innovative
cordingly. I am very proud to see that I have

services and products in order to maintain and

more than just employees in my team but

develop our market shares. Recently we have

rather general managers. Each functional man-

launched an innovative format with a new bot-

ager has grown as a general manager within

tle with a capacity of 180ml, which is the first

the scope of their function. By doing that, the

bottle in this small format ever made. Our

staff turnover is virtually close to none.

innovation team is a cross-functional team


based on a transversal collaboration mode that

How does the Bahrainization program affects

enables us to consider all aspects of a new

your company?

product development.

Bahrainization is perceived as a great process


2011 B2G Copyright - Middle East Series

66

06
Future outlook for the
Supply Chain Workforce

2011 B2G Copyright - Middle East Series

67

6. Future outlook for the Supply Chain Workforce

06
T

he chapters 3 and 4 of the present document revealed that Supply Chain organizations are currently
facing many challenges. A review of educational programs available in the region (Chapter 5) showed

that there are a lot of training opportunities for Supply Chain professionals willing to improve thei skills as
well as for students willing to start their career in the logistics field. One question remains however unanswered: Will the efforts made to develop more Supply Chain programs and to educate young skilled professionals enough to overcome the issues that Supply Chain organizations will be facing in the Middle East?
This section attempts to answer this question and to provide insights on the future equilibrium of the Supply Chain job market in the Middle East.

Future outlook for the Supply Chain sector


Growing trends for the Supply Chain sector
Assessing the potential outlook of Middle Eastern
economies in the near term and especially the
possible growth of the logistics sector will help to

IMF Forecasted Growth in the


GCC Countries

evaluate the future needs for Supply Chain professionals.

United Arab Emirates


Saudi Arabia

5.64%
4.77%

5.64%
5.12%

5.64%
4.96%

According to IMF forecasts (Exhibit 6.1), economic


growth in the GCC countries will still be very satis-

Qatar

6.61%

5.47%

5.49%

2011
2012

fying during the coming years. As for the Supply

Oman

5.82%

5.62%

Chain sector, a review of logistics performance

Kuwait

5.85%

5.93%

(Comparison of Logistics Performance Indicators ,

Bahrain

5.51%

5.80%

5.62%

2013

6.02%
5.99%

Exhibit 4.1 & 4.2) revealed that there is still potential for improvement and that this sector has not
2011 B2G Copyright - Middle East Series

Exhibit 6.1: IMF Forecasted Growth in the GCC Countries. Percentage Growth of GDP constant prices.
68

Future outlook for


the Supply Chain
Workforce

yet reached maturity. On the other hand, the Mid-

Logistics Sector Growth


in the Middle East (Billion USD)

dle East, with a strategic position between


Europe, Asia and Africa should benefit from new
developments of international trading. These con-

25.0

20.0

siderations tend to promote the idea of a strong


expansion of the Logistics sector in the coming
years. According to forecasts from Transport Intel-

15.0

reach nearly 27 billion USD in 2012. In order to be


sustainable, however, this growth should be supported by new entrants in the Supply Chain job

4.3
4.0

10.0

Road Transport

3.0

Sea Freight

5.7

Freight Forwarding

5.0

2.8

Warehousing (Third
Party Logistics)

2.7
2.5

3.0
2.0

ligence presented in Exhibit 6.2, the market value


of the logistics sector in the Middle East should

4.9
4.6

2.2
3.4

4.0

4.8

4.9

5.4

6.0

6.6

7.3

2008

2009

2010

2011

2012

Exhibit 6.2: Logistic Sector Growth in the Middle East.


Sources: Transport Intelligence; IMF, central banks of
GCC countries.

Future demand for the Supply Chain professionals


Almost 20,000 additional Supply Chain professionals will be needed in 2013

n order to evaluate the number of Supply

casted growth in GCC countries. (Source: IMF

Chain Managers and Executives that will be

Forecasts, B2G industry benchmarks). The current

needed in the coming years in the region, B2G

and future requirements for Supply Chain profes-

used a quantitative approach based on the current

sionals are presented in Exhibit 6.3 and Exhibit

demographics of the Middle Eastern countries

6.4.

labor force (source: International Labor Office,


statistical offices of GCC offices) and on the pros-

Taking into account all level of educations and all

pects for Supply Chain Management in each one

GCC countries, B2G Consulting estimates that

of the GCC countries (Demand for Supply Chain

there are currently requirements for about

professionals in each industrial sector and fore-

700,000 professionals (Exhibit 6.3) in various func-

2011 B2G Copyright - Middle East Series

69

6. Future outlook for the Supply Chain Workforce

06

Requirements for Supply Chain Professionals per Job function

Function
Senior Management

Position Title
Senior Managers
Warehouse Managers

Warehousing

Mail and message distribution Operators

9,329

Material Handlers

Marketing and Sales

Logistics Information Systems

74,029

Store Keepers

41,645
7,790
29,357

Customs & Ship Brokers

5,886

Transportation Schedulers

4,291

Dispatchers and radio operators

2,522
119,477

Administrative and Support Services Managers

15,091

Supervisors, Recording, Distribution and


Scheduling staff

23,280

Purchase and Inventory Clerks

43,420

Purchasing Managers

10,171

Purchasing Agents

31,480

Retail and wholesale buyers

24,925

Sales and marketing managers

3,521

Information Systems Managers

10,379

Industrial and Manufacturing Technicians

16,439

Database Administrators
Computer Analysts
Website Developers

Total

187,985

Packaging and Product processing Operators

Shippers and Receivers

Purchasing

27,599
5,234

Transportation Managers

Inventory Management

7,436

Courier Service Managers

Longshore Workers

Transportation

Total Estimated Employees 2011

343
10,576
747
712,952

Exhibit 6.3: Requirements for Supply Chain Professionals Estimations based on current number of Supply chain professionals in the Middle East. Sources: International Labor Office, Statistical Offices of GCC countries, B2G Consulting
2011 B2G Copyright - Middle East Series

70

Future outlook for


the Supply Chain
Workforce

tion of the Supply Chain. The requirements for

Requirements for Supply Chain Managers

these professionals concern warehousing personal


for 50% of total job positions, transportation per-

3,500

sonal for 23% of total job positions. Inventory

3,000

management positions represent about 11% of

2,500

total SCM jobs requirements. Purchasing should

2,000

concern about 9% of total job positions. Interest-

1,500

ingly, Senior management positions should represent only 1% of total job positions in 2011.
If we take into account forecasted growth in the
GCC countries and the personal that will retire in
the coming years, additional 17,800 Supply Chain
professionals are needed in 2011, and about
18,700 should be needed in 2012 and 19,600 in

Oman
Kuwait
Bahrain
Qatar

1,000

UAE

500

KSA

2011

2012

2013

Exhibit 6.4: Requirements for Supply Chain Professionals Estimations based on level of education of current Supply chain professionals. Sources: International
Labor Office, Statistical Offices of GCC countries, IMF
Forecasts, B2G Industry Benchmarks

2013. Amongst these professionals, more than


2,500 additional Supply Chain managers and executives will be required on the job market on a
yearly basis in the GCC countries.
The next section will evaluate the number of job
seekers, qualified in the field of Supply Chain, that
should be available on the job market in the coming years.

2011 B2G Copyright - Middle East Series

71

6. Future outlook for the Supply Chain Workforce

Future outlook for


the Supply Chain
Workforce
New comers in the Supply Chain job market
Only about 600 young professionals will possess a solid background in Supply
Chain Management

2G Consulting also estimated the number of


students that will enter the job market in the

Number of Supply Chain Managers entering


the job market.

GCC countries using Unesco data. We estimated

350,000

that between 280,000 and 320,000 students each

300,000

year will enter the job market between 2011 and

250,000

2013 with a university degree. Amongst these,

200,000

between 17,000 and 20,000 students will have

150,000

done technical studies. However, only about 600


students will possess a degree with a focus on
Supply Chain Management. Compared to the

tering the job market is therefore very low. Supply


Chain will face a severe shortage of talent in the
GCC countries. Part of the job positions in Supply
Chain Management will be filled by foreign expats.
Additional positions will be also probably filled by
engineers and students from business schools that
possess no or little background in Supply Chain
Management.

Saudi Arabia

Qatar
Oman

100,000

Kuwait
50,000

Bahrain

2.500 job positions that should assigned to Supply


Chain Managers, the number of SCM students en-

United Arab
Emirates

2011

2012

2013

Exhibit 6.5: Number of students with Tertiary Education available on the job market. Scope: GCC Countries.
Estimations based on current number of students in
Tertiary Education programs. Sources: Unesco, Statistical Offices of GCC countries

Number of students with engineering background available on the job market.


25,000

United Arab
Emirates

20,000

Saudi Arabia

15,000

Exhibit 6.6: Number of students with engineering background


available on the job market. Scope: GCC Countries. Estimations
based on current number of students in Engineering and
Manufacturing programs. Sources: Unesco, Statistical Offices
of GCC countries
2011 B2G Copyright - Middle East Series

Qatar

10,000

Oman

5,000

Kuwait

Bahrain

2011

2012

2013

72

Industry
Insights
Mr. Khwaja Moinuddin, Head of Excellence
Gulf Aluminium Rolling Mill Co.

Deploying Lean Six Sigma Methodologies in the Aluminum sector


Over the past 10 years, Mr. Khwaja Moinuddin, certified Six Sigma Master Black Belt, has implemented
numerous continuous improvement (lean six sigma) projects in manufacturing and logistics industries in
US. He has worked with people at all levels from shop floor to senior management and trained them on
continuous improvement methodologies.
He has been invited to give lectures in Universities in Middle East and Asia on continuous improvement
methodologies and change management specific to CI. He has also been invited to give expert advice on
lean six sigma change management in manufacturing conferences in Asia and has also published technical papers in specific journals in US (Journal of cost management).
Today, Mr. Khwaja Moinuddin, head of excellence at GARMCO, is sharing with Frederic Gomer, partner
at B2G Consulting, his deep insights on the challenges in instilling a Lean culture in a GCC company with
the related specific constraints.

In few words, please describe your company

GARMCO produced its first 20,000 tonnes of

activity?

rolled aluminium in 1986.Today, GARMCO is

Gulf Aluminium Rolling Mill Co. (GARMCO) was

the largest downstream aluminium facility in

formed in 1981 following a decree issued by

the Arabian Gulf region and our success is

His Highness the Late Amir of Bahrain, Sheikh

complemented by the continued success of our

Isa Bin Salman Al Khalifa undertaken together

close neighbor, ALBA.

with the governments of Saudi Arabia, Kuwait,

The original GARMCO facility had an annual

Iraq, Oman, and Qatar.

capacity of 40,000 tonnes. Through equipment

2011 B2G Copyright - Middle East Series

73

Deploying Lean Six Sigma Methodologies in the Aluminum sector

Deploying Lean Six Sigma Methodologies in the Aluminum sector


enhancement, this increased to 70,000 tonnes

are not well coordinated together and operate

by 1990. GARMCO then invested in a second

relatively concurrently. Each function has its

cold-rolling mill and related facilities, resulting

own objectives, performance indicators and

in the current annual capacity of 125,000 ton-

incentives, which does not really reflect yet the

nes. A further update of the facilities was done

end-to-end supply chain that we are all striving

in 2004 to raise the capacity to 145,000 ton-

for.

nes. In 2005 another fine tuning on the existing


equipment was carried out to reach a capacity

What was your biggest challenge in supply

of 165,000 tonnes.

chain at GARMCO?

A foil mill installation with a


capacity of 10,000 tonnes
commenced in 2000 and upgraded to 20,000 tonnes. In
2006 a new initiative to also

Each function has its own


objectives, performance indicators and incentives

upgrade it to 35,000 tonnes.

Coming from a lean six sigma


culture, the challenge I encountered at GARMCO was to
shift the company culture to
a highly controlled and disci-

plined environment. The syndrome of the


burning platform that I like to recall is missing

Could you please give an overview of the sup-

in the Middle East, where there is no sensation

ply chain at GARMCO?

of the fire approaching, so we do not feel

The supply chain at GARMCO is a fairly new

forced to over perform. This metaphor illus-

concept, as the company has been manufac-

trates the lack of strong competition in the

turing-driven from its inception. Consequently

region (for the moment), that does not help

its Supply Chain is still organized in silos where

companies to push the envelope.

all functions such as procurement, production,

Besides the cultural aspect, one of the biggest

shipping (and also technical quality or finance)

technical challenges that we are facing is re-

2011 B2G Copyright - Middle East Series

74

Industry
Insights
Mr. Khwaja Moinuddin, Head of Excellence
Gulf Aluminium Rolling Mill Co.

lated to capacity planning. Planning is a diffi-

but it is a real problem in the whole Middle

cult discipline and it involves more than just

East region. At every level, from operational to

our internal environment. In fact, customers

strategic, we can hardly find the right candi-

and suppliers are also fully part of this critical

dates who fit our business requirements.

process. Specifically as our model is based on a

As this discipline is still emerging, we cannot

make-to-order basis, we really need the col-

expect a knowledge transfer from our more

laboration of our business partners to improve

experienced staff to the new hired, so we need

the accuracy of our forecasting tools, which is

to provide training from external firms to inject

the cornerstone of our planning process. From

basic knowledge in supply chain management

that point, we will be able

inside the company.

We have recently launched a


ity planning tool once the
What are the skills the
cross-functional
audit
with
my
quality of the information
most lacking? How does
team
gathered is enhanced. Oththe Company overcome
to work on a better capac-

erwise, the accuracy of the resulting forecasts

this challenge?

will be still biased.

We have recently launched a cross-functional


audit with my team that covers Supply Chain,

Regarding manpower in general and specifi-

Operations, Maintenance and Finance. So far,

cally in Supply Chain Management, what are

we have reached the conclusion that in a

the challenges that you are currently facing?

strong manufacturing environment, we need

We are clearly facing difficulties to recruit

more staff with an engineering background to

qualified people in supply chain management,

be more at ease with lean 6 sigma concepts

especially those with end-to-end expertise.

and tools.

This major issue is not only limited to GARMCO

On the purely supply chain side, planning is

2011 B2G Copyright - Middle East Series

75

Deploying Lean Six Sigma Methodologies in the Aluminum sector

Industry
Insights
Mr. Khwaja Moinuddin, Head of Excellence
Gulf Aluminium Rolling Mill Co.

critical and requires qualified professionals to

not occupied. Obviously, Training will have to

run the forecasting process that feeds the

play a center role in the success of this long

planning function with timely and accurate

transition, but the effort will definitely worth

information.

the great benefits in the long run.

How is the level of Education in SC in UAE /

According to you, what is the future outlook

Dubai? According to you, what is the future

for the supply chain workforce in the region?

outlook for the supply chain workforce in the

Major changes can only occur in very challeng-

region? How does the Bah-

Bahrainization should be ing environment, so unless


rainization impact your
we release our self from the
seen
as
a
great
opportunity
to
operations?
confinement of the relaBahrainization should be
empower the workforce in tively protected conditions
seen as a great opportunity
in the Middle East market,
Bahrain.

to empower the workforce


the transformation will be
in Bahrain. Generally speaking, supply chain

slow. To a certain extent, a fierce competition

resources are scarce in the region, and to sus-

helps companies and individuals to outperform

tain a long term functioning situation, compa-

their own capability limitations. I believe that

nies should come up with local solutions. Bah-

we need to have this burning platform to

rainization will help companies to realize that

trigger the necessity to make the required

they are able to tap in the unexploited local

drastic changes to compete at a global scale.

workforce to fulfill positions that are virtually

2011 B2G Copyright - Middle East Series

76

07
Conclusion

2011 B2G Copyright - Middle East Series

77

7. Conclusion

07
T

odays supply chains face a severe

The supply chain professional must be able to in-

global shortage of talent and skills whereas the

tegrate the big picture in his strategy which in-

demand in the profession has never been greater.

cludes finance, sales and marketing, across the

This growing phenomenon, although exacerbated

different partners for both suppliers, and custom-

in the Middle East partly explains the lower per-

ers. The strategic position of this discipline, has

formance in the regions logistics output com-

forced many managers and directors to develop

pared to the other parts of the world. One of the

an effective communication with top manage-

most important drivers for success in deploying

ment by addressing strategic issues. In doing so

and running an efficient supply chain is its

many top management teams are beginning to

People. The Middle East must lead the emer-

see the competitive edge that a skillful supply

gence of a new breed of professionals possessing

chain team brings to the business.

new skills of both hard analytical and soft

Aside from the challenge of recruiting highly quali-

leadership skills to meet these new demands.

fied people, succession planning is essential in ensuring the continuity and growth of these profes-

2011 B2G Copyright - Middle East Series

78

Conclusion

sionals. Developing, training and retaining a pool

grams specializing in supply chain is evidence of

of local supply chain talent will become critical. So

the importance they are according to this field.

far, investment in training has been relatively

Corporations are developing centers of excellence

modest in the region. There is a lack in adequate

to provide their employees with training. Many

universities and private training centers to pre-

international associations are setting up regional

pare the workforce for the future. Although there

chapters to enable networking, training and shar-

have been recent initiatives in education and cor-

ing of best practices for professionals. With these

porate training to combat this lack, a radical in-

positive signs, will the emulsion of these educa-

crease in such services will have to be offered in

tion and training initiatives be in time and suffi-

order to reduce the shortage of talent in this field

cient to cope with the future challenges expected

now and into the future.

in the Middle East?

Despite the grim outlook, the urgent skills gap is

This important question remains entirely open for

on the top priority list of many local governments,

debate.

and universities. The launch of a Masters pro 2011 B2G Copyright - Middle East Series

79

08

Appendix

About B2G Consulting:

Based in the Middle East, B2G consulting is


a newly created firm focusing on supporting growing markets. From A to Z, we help
our clients to build profitable businesses in
new and challenging markets, transforming
their critical challenges into high value opportunities, and our capabilities to support
organizations encompass every operational
aspect:

Definition of operational strategy

Hands-on support for implementation

Execution and interim management

B2G Consulting currently operates in Eastern Europe, Middle East & Africa, Asia Pacific and China, the organization is embarking on an ambitious expansion plan with
the goal of reaching 25 emerging markets
by 2020
Authors:
Frederic Gomer
Partner
B2G Consulting

Thibauld de Sazilly
Senior Consultant
B2G Consulting

frederic.gomer@b2g-consulting.com

thibauld.desazilly@b2g-consulting.com

2011 B2G Consulting .This document is the result of primary research performed by B2G Consulting. B2G Consulting methodologies
provide
for independent
2011
B2G Copyright
- Middleand
Eastobjective
Series fact-based research and represent the best analysis available at the time of publication.
80
Unless otherwise noted, the entire contents of this publication are copyrighted by B2G Consulting and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by B2G Consulting.

2011 B2G Copyright - Middle East Series

81

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