Expect the Unexpected – Contract Logistics in Saudi Arabia

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Over the past three years, Contract Logistics is a product that has really developed in the Kingdom of Saudi Arabia. From starting out by offering 4PL services back in 2014, we have now grown and developed to have a solid international customer base totaling 23,000 square meters (sqm) of 3PL warehousing footprint spreading across different verticals. From 2015 to 2016 we achieved a revenue growth of 764% followed by an additional increase of 33% in 2017. As a product, contract logistics closed 2017 contributing $4,200,000 to the overall revenue of Hellmann Worldwide Logistics, Saudi Arabia.

Exciting times remain ahead as two additional customers have been secured early in 2018; they are currently in the process of being implemented. We anticipate this will add another 20% growth in 2018 with an additional 5,000 square meter. Along the way, the journey has been exciting, interesting and challenging at times. Without the solid teamwork from both regional and local resources, this growth would not have been possible. Thank you to everyone who has been involved in this journey and I look forward to the continued momentum.

By Simon Reah, Chief Operating Officer for Contract Logistics Middle East and South Asia

Hellmann and SIG – A Promising Partnership in Packaging

SIG Combibloc Obeikan Ltd. is considered one of the world’s leading suppliers of aseptic packaging, establishing their facilities of production plants and warehouses located at Obeikan City, Riyadh in Saudi Arabia.

In October 2015, Hellmann Worldwide Logistics formalized a partnership with SIG to manage/run all warehouse operations at the SIG manufacturing facilities in Riyadh. On January 3rd, 2016, the warehouse facilities became operational with 29 Hellmann employees maintaining the operations. In the beginning, Hellmann handled the finished goods and laminated boards within 4 warehouses. However, 10 months later Hellmann was given the additional responsibility of handling the issuance of laminated boards to their printing and packaging lines. During this time of growth, storage space became an issue and Hellmann offered our expertise with the addition of drive-in and push-back racking with increased storage from 1000 pallets to 1500 pallets; which is a 50% increase.

Due to the exceptional service, which Hellmann provided in 2016 we were given yet another process by SIG which was the receiving of laminated boards from the extrusion machine. During the brief two years, Hellmann has broken 2 SIG records with the first being the first time 600 million sleeves where shipped within one month. This record was beaten yet again 8 months later by shipping 700 million sleeves in a month. Currently, Hellmann handles 585 SKU’s of finished goods, 54 for laminated boards and 27 for packaging materials. However, these numbers continue to rise as our partnership grows with SIG.

By Akram Muhammed, Warehouse Assistant Manager at Hellmann Worldwide Logistics Saudi Arabia L.L.C

From Floors to Storage Racks

February 2016, marked the beginning of a strategical partnership for Hellmann Worldwide Logistics Saudi Arabia and one of the largest chemical and consumer goods companies in the world.  

Gone are the days when they used to store their products on the floor in bulk storage without the use of racks or a warehouse management system. Hellmann Saudi Arabia now provides the services for their German based customer in 19 dedicated warehouses located side by side that consist of a drive-in, double deep and temperature controlled racking solutions. Within these facilities, there is enough room to handle 25,000 average pallets per month of inbound and outbound while maintaining the accurate inventory at 11,400 pallet locations. The facility is strategically located at Al-Sulay – Al Mishaal District in Riyadh, Saudi Arabia.

Equipped with Hellmann’s warehouse management system – LFS, the 28 employees are now able to provide on-time monitoring of all pallet movements while providing the client with valuable daily, weekly and monthly reports that help improve the efficiencies within the supply chain. We pride ourselves on the long-lasting relationship we have achieved through transparency, customer satisfaction, and effective communication. This has provided our customer with the trust that Hellmann can get the job done which is now resulting in additional business in the near future.

By Haq Nawas, Warehouse Assistant Manager at Hellmann Worldwide Logistics Saudi Arabia L.L.C.

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