State of Supply Chain Education 2011 Middle East Series (1)

2011 B2G Copyright - Middle East Series 1

State of Supply Chain Education - 2011

Middle East Series

B2G Consulting

Supporting Growing Markets


Table of Contents

00 Table of Contents

Introduction

Executive summary

Acknowledgements

Current outlook of Supply Chain Management in the Middle East

Supply Chain Performance in the GCC Countries

Supply Chain Issues and Solutions: Results from B2G Survey

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

Organization

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

Definition of Main Procurement and Supply Chain Positions

Current Recruitment Trends in the Supply chain Sector

Interview BATELCO Managing Supply Chain Talents in Changing Techno-

logical Environments

Overview of Educational Programs in the SCM Sector

Overview of the GCC Countries educational systems

Interview Middlesex University Opening a new MBA Program speciali-

zation in Operations and Logistics

00

01

02

03

3.1

3.2

04

4.1

4.2

05

5.1

2

4

6

8

9

10

12

14

21

22

24

28

31

33

35


Table of Contents

University Supply Chain Programs

Interview Bahrain Polytechnic Preparing Future Logistics Professionals

Certifications

Interview Supply Chain Council Bringing a world class supply chain or-

ganization to North Africa & Middle East

Training Centers for professionals

Corporate Trainings

Interview Bahrain Water Bottling & Beverage Empowering a supply

chain organization by transforming each employee into a general man-

ager

Future Outlook for the Supply Chain Workforce

Future outlook for the Supply Chain sector

Future demand for Supply Chain professionals

New comers in the Supply Chain job market

Interview GARMCO Deploying Lean Six Sigma Methodologies in the

Aluminum sector

Conclusion

Appendix

5.2

5.3

5.4

5.5

06

6.1

6.2

6.3

07

08

40

44

51

54

59

61

63

67

68

69

72

73

77

80


01 s the world recovers from the credit crunch,

global trade is becoming greater than ever.

With an economic growth of 4.9% in 2001

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

forcing its strategic position as an important logis-

tics hub between Europe, Asia and Africa. Mean-

while, senior managers are facing serious chal-

lenges in recruiting and retaining supply chain tal-

ent to support this expansion in business. During

the crisis, only a few companies took stock to

strengthen their post-crisis operational readiness

by managing their talent and resources ade-

quately. -Many others opted for short-term cost

cutting solutions which involved ruthless head-

count downsizing as a means of survival.

So how are senior managers going to respond to

the upturn needs in their market? This short-

termist strategy seems to pose an even bigger

problem: How are companies and governments

going to cope with the severe global shortage of

skilled talent in this field? Although this shortage

is exacerbated in the Middle East, the growing

trend is threatening every market, regardless of its

maturity or geographical locale.

A

1. Introduction


Introduction

In addition to that, as supply chains have become

more complex, it is creating demand for profes-

sionals to possess a new set of skills, both hard

analytical and soft leadership skills. Not only to

manage a global and complex supply chain in a

highly dynamic environment, but to also be able

to integrate the big picture. A business scenario

typically begins horizontally from suppliers to cus-

tomers and continues vertically from finance or

sales and marketing strategy to basic logistics op-

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

key differentiator between competitors, the edu-

cation and training of people is becoming increas-

ingly important. In a region where most govern-

ments are demonstrating their willingness to em-

power the local workforce, how are organizations

going to cope with manpower challenges? What

are the current supply chain educational programs

available? How many specialized professionals will

be required in the coming years?

The answers to these questions will be addressed

by B2G Consulting in their report:State of Supply

Chain Education in Middle East 2011


02

ccording to the World Bank, the Logistics

Performance Index (LPI) of the Middle East pre-

sents a number of significant gaps in several key

areas, specifically in terms of logistics services,

compared to other zones in the world such as the

US or most European countries. To unveil the supply chain challenges currently

faced in the region, a recent survey conducted by

B2G consulting showed that most of the difficul-

ties 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-

sionals which has forced some companies to out-

source part of their activities such as logistics,

warehousing or IT.

Finding a way to recruit and retain talent to ad-

dress these new challenges has become an impor-

tant hardship for companies wanting to maintain

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 profes-

sionals. Industries which require Supply Chain tal-

ent the most are; (1) Civil Engineering, (2) Manu-

facturing and Production, (3) Logistics Services

and, (4) Petroleum and Energy. While most de-

A

2. Executive Summary


Executive Summary

manded skills include a broad knowledge of Trans-

portation, Distribution and Warehousing opera-

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

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

chain operations. 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 re-

duce the skills gap, is not fulfilled by the current

offering of corporate training and educational pro-

grams. Although a few of corporations have estab-

lished a positive momentum by launching promis-

ing training initiatives, with the support of consult-

ing firms or local universities, the road towards a

meaningful progress in supply chain education is

still a long journey.

According to our estimates, the supply chain func-

tion 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

Mr. Sebastian Thomas

Senior VP Supply Chain

ZAFCO

Mr. Ahmed Al Janahi

General Manager

Media Relations

BATELCO

Dr. Cedwyn Fernandes

MBA Program Leader

MIDDLESEX UNIVERSITY

Mr. John Webb

Project Manager

BAHRAIN POLYTECHNIC

Mr. Mohamed Shalaby

Chairman of North Africa &

Middle East Chapter

SUPPLY CHAIN COUNCIL

Mr. Subbs Mukherjee

General Manager

BAHRAIN WATER &

BOTTLING COMPANY

Mr. Khwaja Moinuddin,

Head of Excellence

GULF ALUMINIUM

ROLLING MILL COMPANY

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 contribu-

tions 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:



03


n order to better assess the talents that Mid-

dle Eastern organizations will require to bet-

ter manage their supply chain, it is necessary to

have a good understanding of the issues that the

profession is currently facing. Benchmarking sup-

ply chain management practices currently applied

in the GCC countries with other parts of the world

is an interesting approach to evaluate the gaps

that the profession will require to bridge in the

near term.

Competitiveness of a country infrastructures and

regulations can play an important role in the level

performance that local companies can reach in

terms of supply chain management. The ability to

contract efficient logistics service providers is also

essential for a company willing to optimize its sup-

ply chain performance. One of the most compre-

hensive tools that are available to compare coun-

tries competitiveness in terms of logistics services

is the World Bank Logistic Performance Index. This

indicator combines the feedbacks given by supply

chain operators on the logistics friendliness in the

countries in which they operate with quantitative

measures of the performance of key components

of the supply chain such as customs, logistics ser-

vices providers and transportation infrastructures.

It is designed to help the governmental agents to

identify the challenges and opportunities they

face in trade logistics performances but some of

its components also provides significant insights

on the performance of private logistics operators.

A review of GCC overall logistic performance

(Exhibit 3.1) shows disparity amongst GCC coun-

tries: UAE, Bahrain, Kuwait and Saudi Arabia

showing significantly better logistics performance

compared to Qatar and Oman. UAE which ranks

1st amongst GCC countries and 24th in the world

has made strong efforts to optimize its logistics

attractiveness according to the feedback from lo-

gistic operators. More than 70% of respondents

recognize that the country has improved its cus-

toms and official procedures since 2005. More-

over more than 85% of them think that transport,

trade, telecommunications and IT infrastructures

have improved since 2005. Bahrain which ranks

second in the region has also recently made sig-

nificant efforts to increase its logistics efficiency in

terms of infrastructures and customs procedures

since 2005. For other countries such as Saudi Ara-

bia and Kuwait, the percentages of respondents

who noticed improvements in these fields are

much lower (0% to 25%).

The performance of logistics services (Exhibit 3.2)

I

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?


Current Logistics Performance in the Middle East: Overall Performance


cation and

training of

people who

will have to

manage com-

panies sup-

ply chains is

becoming the

Exhibit 3.1: 2009 Logistics Performance Index: Logistics Performance Index overall score reflects per-ceptions 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 con-signee 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 part-nership 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

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

4.14 4.123.92

3.53 3.36 3.333.11

2.572.37

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Germany Singapore United States

United Arab

Emirates

Bahrain Saudi Arabia

Kuwait Qatar Oman

4.11 4.093.86

3.633.37 3.28 3.22

2.95 2.84

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Germany Singapore United States

United Arab

Emirates

Bahrain Kuwait Saudi Arabia

Qatar Oman

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 simi-

lar 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


Top Supply Chain Issues

World Bank, a very high percentage (85% to 100%) of respondents agreed to say that private logistics ser-

vices 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 improve-

ment 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 deci-

sions (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 Con-

sulting 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.

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

In order to learn more about the issues and chal-

lenges in Supply Chain Management currently

faced by Middle Eastern organizations, B2G Con-

sulting conducted a survey amongst Supply Chain

executives in 2010. More than 225 professionals

from a wide range of industries have answered to

a questionnaire which dealt with the current is-

sues and challenges they faced as well as with the

solutions they found to optimize Supply chain

practices within their organization.

Amongst the issues that were cited by supply

chain professionals, better demand forecasting

(74%) and optimization of inventory levels (63%)

Supply Chain Issues and Solutions: Results from B2G Survey

What are current Supply Chain Managers issues and solutions?

Exhibit 3.3: Top Supply Chain Issues cited by Supply Chain Managers

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

performance of suppliers (42%) and logistics costs

(41%) are also main concerns for Supply Chain

managers.

74%

63%

58%

42%

41%

Improve demand forecasting

Reduce and optimize inventory levels

Reduce delivery lead times

Improve supplier performance

Reduce logistics costs


Top Supply Chain Initiatives


Optimizing demand forecasting (42%) is the first

initiative that Supply Chain professionals will con-

duct in the coming 12 months. Reducing logistics

costs (37%), delivery lead times (34%) and inven-

tory 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 strate-

gies can be implemented: Increasing the numbers

of functions to be outsourced, reduction of the

number of suppliers in order to engage into long

term collaborations. Such collaborations can

benefit from better coordination of logistic proc-

esses and from the implementation of shared IT

solutions. Outsourcing initiatives usually concern

Logistics (29%), Manufacturing (18%), Warehous-

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

One of the main issues that were pointed out by

this survey is the difficulty for supply chain profes-

sionals to recruit in the region. 84% of respon-

dents declared that it is relatively difficult to re-

cruit Supply Chain professionals. This main con-

cern is leading to a lack of skills within the supply

chain function and can be related to the other is-

sues that were presented in Exhibit 3.3. The chal-

lenge for supply chain organization to attract and

retain talents will be largely discussed in the next

part of this study.

next biggest

challenge, in

a region

where most

Governments

have strongly

d e m o n -

strated their

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

Top Outsourcing Initiatives

Exhibit 3.5: Top Outsourcing Initiatives cited by Sup-ply Chain Managers

The Supply Chain Job Market:

Difficulty to recruit

Exhibit 3.6: Opinion of Supply Chain professionals on the Supply Chain job market.

42%

37%

34%

32%

21%

Improve demand forecasting

Reduce logistics costs

Reduce delivery lead times

Reduce and optimize inventory levels

Improve supplier performance

84%

12%

4% Relatively difficult

Normal

Relatively easy

29%

18%

16%

13%

11%

Logistics

Manufacturing

Warehousing

R&D

IT


Mr. Sebastian Thomas is a Senior VP Supply Chain at ZAFCO, Managing the Global supply chain at strate-

gic 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. Sebas-

tian 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

activity?

In 1993, Zafco started their operations in Dubai

as a tire & battery distributor. Today, Zafco is

the uncontested leader in the region, and one

of the top companies worldwide in the sector,

with more than 1 million tires in stock and op-

erations in more than 85 countries. ZAFCO de-

veloped own brand ZEETEX tires and batter-

ies which are distributed in various countries.

The latest focus of the company is to invest

heavily into retail sector and planning to open

65 retail outlets in GCC during the next couple

of year.

Could you please give an overview of the sup-

ply chain at ZAFCO?

Supply chain is considered as an integral part

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

ply chain covers Demand forecasting, procure-

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



ment, customs brokerage, warehousing, inven-

tory management and distribution. It is very

crucial for us to closely manage all the aspects

of supply chain management as this is one of

the core areas where there is huge potential

for cost efficiency.

Considering the importance of supply chain,

Zafco management gives considerable focus in

managing this core functional area with highly

experienced profession-

als. At Zafco, we claim

Supply Chain as one of

our core competency

which supports our

growth and helps towards realising our dream

of Going Global mantra. The world class facil-

ity equipped with most modern warehouse

equipments and most powerful Warehouse

Management System along with our highly tal-

ented and experienced professionals, enable

us to exceed our customers expectation.

We have taken all measures to ensure a per-

fect and performing supply chain division

which is best in class. Zafco supply chain is sec-

ond to none and meets with and often exceeds

our customers expectation. The processes are

defined, accountability and timeframe are set

to ensure smooth delivery of performance at

various stages of end to end supply chain.

Zafco supply chain can be treated as one of the

best in this region. 100% of our local deliveries

are effectively done within 24 Hours across the

U.A.E.

Supply chain plays a vital

role in:

- Excellent service level

and customer satisfaction

- Product availability

- Cost efficiency

- Continual service improvement

- Delivery within 24 hours to all our UAE cus-

tomers

- Inventory management

- Measuring and controlling ageing inventory

- Measuring and reporting stock days

It is very crucial for us to closely

manage all the aspects of supply

chain management

Industry

Insights




What was your biggest challenge in supply

chain at ZAFCO?

When I joined Zafco in 2009, my mission was

to re-engineer and design a suitable supply

chain model to manage the global supply chain

of ZAFCO more cost effectively. The company

was planning for major expansion through

wider global reach and diversification which

necessitated a strong supply chain depart-

ment.

In the global competitive envi-

ronment where the company

is evolving, the supply chain

department needed to reach a

more professional level, to provide higher ser-

vice level and to become a competitive advan-

tage embedded into the companys DNA.

Company embarked upon major expansion

drive and the volume increased tremendously

and also the geographical reach which itself

created a challenge for supply chain. Through

re-structuring and hiring of highly experienced

professionals, and process re-engineering we

at Zafco supply chain made a big leap in capac-

ity and service level.

The success of supply chain for a great extend

depends on how healthy is the interface be-

tween cross functional departments as well as

communication between the external stake-

holder. How effectively we manage the flow of

material and information throughout the sup-

ply chain is crucial.

My objective was then to break the silos be-

tween departments. I decided

to establish SOPs (Standard

Operating Procedures) to de-

fine the roles, responsibilities,

tasks and timeframe of each

cross functional departments involved directly

or indirectly in the management of the Supply

Chain. This has enabled the departments to

share their information and resolve their issues

as a team and not as separate departments

during cross-functional meetings. In addition,

the development of KPIs (key performance in-

dicators) was very important to bring a quanti-

tative measure of the improvements. All these

measures paved way for continuous improve-


My objective was then to

break the silos between

departments



ment in service level and customer satisfac-

tion. As of today, the supply chain department

has been ranked as one of the best perform-

ing department in Zafco.

Regarding manpower in general and specifi-

cally in Supply Chain Management, what are

the challenges that you are currently facing?

The main issue that we are facing is that most

of the people that we see

during the recruitment proc-

esses have yet some experi-

ence and exposure in supply

chain management but do

not hold any degrees or recognized qualifica-

tions in Supply Chain Management or Logistics.

Another negative aspect is that we rarely find

true supply chain professionals who are capa-

ble of managing the end to end supply chain.

In more cases, their experience is only limited

to the logistics aspect of the supply chain, but

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

end discipline (from suppliers to customers).

How does ZAFCO manage to retain talents?

Any specific program?

At Zafco, we established a talent retention pro-

gram that measures the performance and

identify the potential talents who need to be

retained in the organization. The employee

who meets with the predefined criteria, and

who is capable of going up to two levels, will

be trained with the appropriate training, re-

gardless of his current func-

tion, position or depart-

ment. Someone who has

been highly proficient in cus-

tomer service, for example,

could receive training in sales or marketing.

Promotion along with an above-the-market

package is also a key element in the talent re-

tention. The vacancies are communicated in-

ternally before being advertised outside.

What are the skills the most lacking? How

does the Company overcome this challenge?

There are four main areas where I have identi-

fied some clear areas of improvements:

We established a talent

retention program that

measures the performance

Industry

Insights




1. Demand forecasting

In any trading organization, Procurement is a

fundamental function which plays a predomi-

nant role in deciding the sales turnover of the

company. What to buy, When to buy and How

much to buy is a crucial decision, which needs

careful calculations based on demand forecast-

ing using various data and tools. Demand fore-

casting and sales fore-

casting are integral parts

of procurement, and

therefore these core ele-

ments need careful at-

tention as we cant afford these areas to go

wrong.

In reality, many organizations miserably fail on

achieving forecast accuracy and as a result ei-

ther product availability is affected or encoun-

ter overstock situation. Very rarely we find

procurement professionals who have got some

recognized degree level qualification in Pur-

chasing or procurement.

2. Inventory management

This is another area which is generally ne-

glected by companies. People tend to ignore

the great advantage of managing the inventory

in a smart way as a significant lever to improve

the bottom line.

Especially during recession, capital funding is

usually very difficult, so the only way to im-

prove the companys financial performance is

through reducing logistics and inventory costs.

How soon we transfer

stock into cash is very

important. At Zafco, we

realized this truth and

took various effective

measures to ensure a healthy inventory posi-

tion and we defined an inventory policy with a

clear baseline and realistic targets, we were

able to set up aggressive goals in order to

reach 45 days of days of inventory holding and

achieved the same with the support and drive

of all the stake holders.

3. Stock management

The stock management is basically the respon-

sibility of the Warehouse and encompasses the

management of bin accuracy, picking accuracy,


Very rarely we find procurement

professionals who have got some

recognized qualification



stock accuracy, space capacity, labor produc-

tivity and etcas there is a strong correlation

between the service level and the performance

of the warehouse, we decided to put in place a

strong management of the stock at Zafcos fa-

cilities.

4. Continuous improvement in ser

vice level.

Besides these 3 areas, pro-

curement, inventory man-

agement and stock manage-

ment, companies have to

keep their focus on continu-

ous improvement in customer service, which is

critical to retain the customers and sustain

growth. At Zafco, we realize that we operate in

a highly competitive environment where we

evolve, forces us to deliver excellent level of

service. We started to realize the importance

of the customer and we initiated this mindset

change where the customer should be posi-

tioned at the center of our focus.

What are the profiles in Supply chain the

most searched?

Ensuring product availability is a major chal-

lenge for supply chain department, we cant

sell what we dont have, Health of the inven-

tory determines the health of the organiza-

tion, controlling the ageing stock is another

crucial area, defining the inventory cover and

managing it well is equally

crucial, and retaining the

talents and focus on deliv-

ering excellent service level

is of paramount impor-

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

compromise on providing excellent training to

our team in order to improve their skill set to

perform well.

How is the level of Education in SC in UAE /

Dubai?

As said previously, it is very difficult to recruit

qualified supply chain professionals in the re-

gion, and the reason lies in the fact that there

are not many universities that propose supply

Industry

Insights



Ensuring product availability

is a major challenge for

supply chain department


chain management as part of their curriculum.

Moreover, there is not much demand among

the students here to pursue Supply chain Man-

agement as discipline. This represents a major

issue considering the importance of this func-

tion in this part of the world. The supply chain

and Logistics infrastructure plays a pivotal role

in the economic development of any country,

which is not different in GCC and therefore, we

expect to have more fo-

cus towards professional

courses and degree pro-

grams in Supply chain

management and Logis-

tics.

According to you, what is the future outlook

for the supply chain workforce in the region?

Supply chain management and Logistics will

continue to hold a very important place in GCC

business arena. Supply chain professional will

continue having predominant place in the or-

ganizations. The importance of supply chain

management became very evident during eco-

nomic recession; this in return caused the or-

ganizations to focus towards this business dis-

cipline.

Having said that, Supply Chain management

should not be taught only in some avant-

gardist universities but as early as at high

school level. As a fundamental discipline, SCM

should be a mandatory course such as mathe-

matics, physics or com-

merce in order to be

aligned with the market

demand for qualified sup-

ply chain professionals. I

strongly recommend that it is high time for us

to introduce supply chain and Logistics to stu-

dents at school level which will create interest

among them to pursue this for higher studies.

As Middle East is focusing on becoming a ma-

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

ble that education in SCM becomes a top prior-

ity to overcome the current manpower chal-

lenges.


Supply Chain professionals will

continue having predominant

place in the organizations

Industry

Insights




Supply Chain Challenges in the Middle East: A Focus on

Manpower

04


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 chal-

lenge: after reviewing the main job positions that are currently encountered in most supply chain organiza-

tion, 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.

The Supply Chain Function could be theoretically

considered as quite simple: It includes planning,

procurement, manufacturing, delivery and return

of manufactured products. However further analy-

sis of potential roles within the supply chain func-

tion shows several challenges.

One of the challenges is the definition of the dif-

ferent roles within the supply chain function. The

limit between the Supply chain function and other

departments of the organization such as Procure-

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

stance, one sourcing division in one company can

be doing the job that would be done by the pro-

curement team in another company.

The fact that these functions are not always very

well defined makes other entities of the company

such as HR or Finance not always understand the

different roles and responsibilities which are in-

volved in the Supply Chain organization.

Another challenge results in the fact that even if

the supply chain function is more and more widely

recognized, Supply Chain leaders may still not

have enough influence nor enough experience in

some organizations to cope with the strategic im-

portance of this function.

Exhibit 4.1 and Exhibit 4.2 presents the main job

functions that can be found in most Supply Chain

organizations.

Once the different roles are well defined within

the Supply Chain function, the most challenging

difficulties remain in the ability of the Supply

Chain leader to recruit new talents. This will be

discussed in the next section.

A

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

04

Definition of Main Procurement and Supply Chain Positions

What are todays main Procurement and Supply Chain Positions?


Supply Chain Chal-lenges in the Middle East: A Focus on Manpower

willingness to

empower the

local work-

force. How

do organiza-

tions cope

with man-

power chal-

Exhibit 4.1: Main procurement positions

Job Title Key Roles Skills

Chief Procurement

Officer

Achieve cost reduction objectives Manage purchasing organization and pol-

icy

Ensure that business need are satisfied in terms of delivery time and quality

Enhance outsourcing activity and manage contracts

Procurement Process Reengineering

Usually: Business or Engineering Degree, MBA.

Ability to interact with high level senior executives.

Strong negotiation skills Deep understanding of contractual frame-

work, import / export policies and procure-ment processes.

Buyer

Select products according to company requirements

Negotiate prices with suppliers Ensure that proper documentation is filled

(Purchase order, invoice)

Strong negotiation skills Good understanding of procurement proc-

esses

Good understanding of contractual frame-works

Category Manager

Analyze the supply market for the identi-fied category

Builds and maintain profiles of current and potential suppliers for the identified cate-gory

Ensure that materials meets company requirements for the identified category

Prepare cost analyses for products for the identified category

Technical expertise on category materials and on product functionalities

Good understanding of procurement proc-esses

Sourcing Manager

Manage relationship with suppliers Prepare invitation to bid documents and

analyze bids from suppliers

Prepare and monitor contractual frame-work

Prepare cost analyses for products and services

Strong negotiation skills Good understanding of contractual frame-

works and bidding documentations

Good understanding of procurement proc-esses



Job Title Key Roles Skills

Chief Sup-ply Chain

Officer

Design and enhance Company Supply Chain Strat-egy

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

Usually: Business or Engineering Degree, MBA. Ability to interact with high level senior execu-

tives.

Certifications such as Six Sigma, Inventory Management

Experience and deep understanding of supply chain functions

Supply Chain

Manager

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

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

Ware-house Op-erations Manager

Manage receiving / issuing / return activities Supervise warehousing staff (schedules, training,

security)

Plan cycle counts and reduce inventory discrepan-cies

Monitor performance and optimize warehousing productivity

Deep knowledge of warehousing operations and material handling

Strong leadership and management skills Knowledge of safety and security standards

Supply Chain Ana-

lyst

Gather and analyze logistics data (costs, productiv-ity, 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

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)

Demand Planner / Forecaster

Prepare monthly statistical forecast reports and report to management

Ensure that inventory targets are met Optimize forecasting techniques and forecast accu-

racy

Adjust forecast and inventory targets based on changes in demand and market trends

Strong analytical skills Strong computer skills: spreadsheet, database,

ERP, logistics software


just in time, FIFO)

Expertise in use of planning tools

Distribu-tion Man-

ager

Manage delivering and return activities Supervise distribution staff (schedules, training,

security)

Monitor performance and optimize warehousing productivity

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

S&OP Manager

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

Strong computer skills: spreadsheet, database, ERP, logistics software


just in time, FIFO)

Expertise in use of planning tools

Exhibit 4.2: Main supply chain positions



lenges? What

are the cur-

rent supply

chain educa-

tional pro-

grams avail-

able? How

many special-

fter several years of tremendous growth,

few people had forecasted the economic

downturn that hit the Middle East Region in 2009.

The United Arab Emirates, which is the second

economy of the region, was hit especially hard

during the last two years due to a slowdown in

real estate, construction and tourism industries.

These sectors suffered from oversupply and short-

age of financing causing many expatriates to leave

the country and the number of immigrants to slow

down. The logistics sector, which is very important

in Dubai, was largely impacted by the slowdown of

the economy. Companies had to change their

forecast, conduct cost reduction initiatives and

recruitment activity was reduced to a minimum.

Since then, oil price which remains the key driver

of economic growth in the region, has substan-

tially recovered from US$62 in February 2009 to

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

Saudi Arabia, Kuwait and Qatar, the economy,

which is based on immense oil and gas reserves,

remains therefore very healthy. After a period

where most projects were frozen, upstream and

downstream oil industries are now investing in

new facilities (New refining capacity in Saudi Ara-

bia, Expansion of Al Shaheen project in Qatar).

Additional projects are also planned in the region

in the Education sector especially in Saudi Arabia

(King Abdullah University of Science and Technol-

ogy, Princess Noura University) and in tourism and

entertainment (Soccer World cup 2022 in Qatar).

Investment will also be strong in country infra-

structures (Expansion of the airport in Oman, ad-

vanced telecommunications infrastructures in

Bahrain). In Dubai, the government plans to be

the world first logistics platform (Dubai Strategic

Plan 2015) and has developed a comprehensive

roadmap to expand roads, highways, rail and ma-

rine infrastructures.

These new investments will generate derived de-

mand for Supply Chain professionals and have sev-

eral consequences on the Supply Chain job mar-

ket. Job search which was very challenging in 2008

and 2009 is now becoming much easier for experi-

enced professionals as well as for young talents.

Supply Chain workers which had a tendency to

hold on their current jobs during the financial cri-

sis are now looking for better opportunities in the

job market. Supply Chain leaders which had no or

low recruitment budget are now able to add new

talents to their team. However, as the job market

is recovering, they might be confronted to higher

turnover than during the past two years. They

may also face more difficulties in attracting highly

skilled professionals.

A

Current Recruitment Trends in the Supply chain Sector

Impact of economic recovery on the Supply Chain job market.



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

recruitment websites in the Middle East during

the first quarter of 2011.

According to this analysis, UAE is the first country

where Supply Chain and Procurement profession-

als are needed. Most of this additional workforce

is demanded in sectors such as Civil Engineering,

Distribution, Logistics, Retail and Wholesale which

were recovering in the UAE. These industries are

the ones which recruit the most in the Supply

Chain job market in this region.

Saudi Arabia, where a lot of opportunities are also

available in Engineering, Retail, Distribution and

Logistics but also in Manufacturing, in Information

Technology and in Education, is the second coun-

try of the region to recruit supply chain workers in

2011.

In Qatar, which came third for the number of Sup-

ply Chain job vacancies, additional professionals

are needed in industries such as Catering, Services

and Restaurants as well as in the Oil & Gas indus-

try.

Most advertized positions are posted to recruit

Mid Career and Management professionals with 5

to 10 years of experience in Supply chain or Pro-

B SCM Job Vacancies:

Geographical Locations

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

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)

13%

1%

15%

32%

40%

Kuwait

Oman

Qatar

Saudi Arabia

United Arab Emirates

20%

2%

5%

2%

7%

14%8%

7%

6%

10%

19%

Civil Engineering

Education / Training / LibraryHealthcare / PharmaceuticalHospitality / Tourism /

TravelInformation Technology

Manufacturing /

ProductionPetroleum / Energy

Retail / Wholesale

Transportation /

ShippingWarehousing /

Distribution / LogisticsOther



ized profes-

sionals will

be required

in the coming

years? These

are the ques-

tions that

B2G Consult-

curement. Few entry levels positions are available.

Most of them are positions for Warehouse opera-

tors, truck drivers or administration staff for distri-

bution and logistics services companies.

The main skills which are generally demanded by

recruiters to Supply Chain professionals are pre-

sented below. They concern in most cases knowl-

edge of basic supply chain functions such as Trans-

portation, Shipping, Distribution, Warehousing

Operations (Receiving, Issuing and Return) and

Procurement.

Other skills are needed to apply for certain posi-

tions such as Supply Chain analyst which requires

demand planning and forecasting experience. In-

terestingly enough understanding of an ERP Appli-

cation is demanded for about 20% of supply chain

positions.

Compensations have also increased for Supply

Chain and Procurement professionals. Gulf Talent

reported an increase in salary of Logistics and

Transportation professionals of 6.4% in 2010 com-

pared to a 5.6% increase of average SCM salaries

in 2009. According to the same study this sector is

amongst those with the largest increases in sala-

ries in 2010. This confirms the fact that companies

try to keep and attract supply chain skills within

their organization.

SCM Job Vacancies: Level of Experience

Exhibit 4.5: Demand for Supply Chain professionals Based on required level of experience for advertized vacancies (Source: Bayt.com, Gulftalent.com, Monster-gulf.com 1st Quarter of 2011)

SCM Job Vacancies: Skills Demanded

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)

7%

60%

31%

2%

Entry Level

Mid Career

Management

Executive/Director

52%

28%

24%

19%

12%

10%

9%

7%

5%

3%

Transport / Shipping / Distribution

Warehousing Operations

Procurement

ERP Applications

Inventory Management

Demand Forecasting

Contract Management

Production Planning

Project Management

Supply Chain Strategy


Mr. Ahmed Al Janahi supports the Board of Directors and Executive Management in shaping the devel-

opment of the Batelco Group throughout the region. Successful careers in Real Estate, Industry Equip-

ment 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 tal-

ents in a constantly evolving environment such as the Telecommunications sector.

In few words, please describe your company

activity?

Batelco was created in 1980 and became a

public company in 1989. Batelco Group owns

participations in several telecommunication

companies in the Middle East, in South Asia

and in Africa including Batelco Bahrain (100%),

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

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

Sabafon Yemen (26.9%), Atheeb Saudi Arabia

(15%). These companies offer telecommunica-

tion services (MPLS based regional data solu-

tions, GSM mobile and WiMax broadband ser-

vices) to residential, business and government

customers.

Could you please give an overview of the sup-

ply chain at Batelco?

Supply Chain Management is centralized under

the Procurement and Logistics department

acquisitions, deliveries, distribution, repairs

and returns, disposals. All incoming and outgo-

ing flow of goods is passing the Central Stores

for a proper recording of all transactions, and

Managing Supply Chain Talents in Changing Technological Environments



Industry

Insights

further distribution of goods to appropriate

projects/cost centers. Procurement and Mate-

rial Management processes are being auto-

mated in SAP. Freight and insurance, as well as

import and export customs formalities are be-

ing outsources to the external agents. Profes-

sional Procurement, Material Management

and Planning are the key functions of our Sup-

ply Chain.

Regarding manpower in

general and specifically in

Supply Chain Management,

what are the challenges

that you are currently facing?

We dont face challenges related to the avail-

ability of the qualified manpower. Our major

task is retaining our talented people and devel-

oping their skills for their personal benefit and

the good of Batelco. Our employees are highly

qualified and experienced, and many remain

with the company during their entire profes-

sional life.

How does Batelco manage to retain talents?

Any specific program?

Batelco is one of the most respected employ-

ers in the country offering an extensive set of

social benefits, excellent working environment

and facilities, professional education and ca-

reer progression programmes. Batelco is com-

mitted to providing excellent training opportu-

nities for its staff through the Companys Train-

ing Centre, which ensures

they have the necessary

skills to compete in todays

competitive market.

What are the skills the most lacking? How

does the Company overcome this challenge?

We employ over 1300 talented employees in

Bahrain and together this workforce provides a

wide variety of skills. The main challenge

comes from remaining up to date with the con-

stantly changing technology that is prevalent in

the telecommunications market. Therefore, we

place a strong emphasis on telecom and infor-

mation technology education to help our staff

Mr. Ahmed Al Janahi,

General Manager Media Relations

We place a strong emphasis

on telecom and information

technology education


in the relevant divisions to not only keep pace,

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

tains its leadership position in Bahrain.

How does Bahrainisation program impact the

company?

Batelco is a leading Bahraini company and the

leading telecommunications provider in the

Kingdom of Bahrain. The

Company is committed to

the retention and develop-

ment of its Bahraini profes-

sionals.

What is the level of maturity in SC at Batelco?

Our supply chain is generally mature, and

were working to enhance it with the specific

advanced techniques to further improve the

cost side spare part management, vendor

managed inventory, procurement collabora-

tion etc.

How is the level of Education in SC in Bahrain?

Were now educating our staff locally under

the CIPS programme, which is a major boost to

their professional qualifications. Generally,

solid general education plus experience plus

professional training in CIPS make a perfect

mix for an SC professional. What we then add

to this mix is the technical knowledge of tele-

com specific subjects.

According to you, what is

the future outlook for the

supply chain workforce in

the region?

Supply Chain is attracting a major attention in

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

force is already quite experienced and edu-

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

force, rather a need to develop their specific

skills and qualifications attributable to a par-

ticular business of their company.

Industry

Insights


Mr. Ahmed Al Janahi,

General Manager Media Relations

Solid general education plus

experience plus professional

training make a perfect mix

for an SC professional


Overview of Educational Programs in the

SCM Sector

05


oday, the global supply chain has become

more complex with more integrated per-

spectives, linking suppliers and customers. And

one of the most important drivers for success in

deploying and running an efficient supply chain is

People. The challenge for supply chain executives,

in the Middle East, is to understand which knowl-

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

propriate training and education for their existing

staff. As the scarcity of skilled supply chain re-

sources is exacerbated in the region, training ap-

pears to be an adequate solution more than any-

where else.

Education reform is on the top priority list of the

GCC governments, as the need to develop best

talents across the region becomes urgent to tackle

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

cent discipline, Supply chain management is lack-

ing of universities and private training centers to

prepare a highly skilled workforce for the future in

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

tiatives in Education have been launched to enter

the era of Knowledge: while in the UAE and Qatar

private institutions are booming, in Saudi Arabia

the focus is less on private universities, but rather

on improving the quality of public universities

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

entiate itself from Dubai and Qatar by offering

training in services to cater for various sectors,

including banking and hospitals. However, has

Supply Chain management found its place in the

academic programs and degrees of GCC universi-

ties and private institutions?

The present chapter starts with a review of the

different educational systems of the GCC coun-

tries. Then, it presents the university programs

that are available for students willing to pursue a

career in Supply Chain Management. The chapter

ends with a review of the professional certifica-

tions and trainings in Supply Chain and in Procure-

ment and with a sample presentation of some ini-

tiatives the were conducted by corporations to

enhance professional trainings.

T

5. Overview of Educational Programs in the SCM Sector

05


Overview of Educa-tional Programs in the SCM Sector

ing ad-

dressed in

the re-

port:State of

Supply Chain

Education in

Middle East

2011.

Overview of the GCC Countries educational systems

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

Bahrain

In 2007, Bahrain spent nearly 50 million USD in

training and education. The number of students in

secondary education was then about 80,000. Re-

cently, several universities have opened in Bah-

rain. The AMA Computer university offers some

four-year-programs in Engineering, Information

Technology and Management. The Ahlia Univer-

sity and the Brunel University also deliver MBAs,

MScs and PhDs diplomas in a wide range of fields

of study. Local educational organizations have also

opened and deliver trainings for jobseekers in re-

tail, hospitality, tourism and as well as in many

technical fields. The fields of study that are most

chosen by Bahraini students include accounting,

management, engineering, finance and insurance,

information technology, law, public relations and

marketing.

Kuwait

In Kuwait, almost 95% of country citizens are

working in the public sector. The government has

been engaged in important reforms in order to

allow the Kuwaiti nationals as well as the young

population to work for the private sector. The Ku-

wait University is the only state university. How-

ever several programs are available for Kuwaitis

willing to study abroad through educational insti-

tutions such as the Ministry of Higher Education,

the Civil Service Commission, the Kuwait Institute

for Scientific Research or the Public Authority of

Applied Education and Training. The main private

universities are the Gulf Institute of Science and

Technology (GUST), the Arab Open University

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

American University of the Middle East (AUM), the

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

lege Kuwait, the Kuwait Maastricht Business

School and the British University of Kuwait.

Oman

All male and female citizens of the country can

benefit from free education until the end of sec-

ondary education. However education is not man-

datory. Most popular universities include Sultan

Qaboos University, Dhofar University, Sohar Uni-

versity, Oman Medical College, and Middle East

College of Information Technology.

Qatar

Qatar counts more than 250 private schools and

educational institutions for about 55,000 students

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

preparatory and secondary levels are completed


in 12 years. During the final two years, students

can choose between scientific and literacy orien-

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

take the General Secondary Education Certificate

administered by the Ministry of Education. The

university system has been recently reformed:

Universities now benefit from financial and admin-

istrative autonomy. The first educational institu-

tion for technical studies is the College of North

Atlantic Qatar. It delivers courses in engineering

technology, business, information technology and

health sciences.

Saudi Arabia

In Saudi Arabia, the duration of primary, interme-

diate and secondary education totals 12 years.

Male and Female students enroll in separate

schools. Unless they are in private high schools

schools, Saudi students are taught in Arabic. Addi-

tional education systems are available for foreign

students (Indian, Pakistani, French, American).

Most well-known universities include King Saud

University, King Fahd University of Petroleum &

Minerals, Umm Al-Qura University, Imam Muham-

mad Ibn Saud Islamic University, King Abdullah

University of Science and Technology. These state

universities are encouraged to revise their pro-

grams according to the demand from the job mar-

ket. A very important scholarships program is also

available for Saudi willing to study abroad. More

than 3,000 students can benefit from this govern-

ment program and attend US universities each

year.

United Arab Emirates

During the past few years, important investments

have been made in education in the United Arab

Emirates to cope with the rapid rise in population.

All male and female citizens of the country can

benefit from a free education from the kindergar-

ten to university. It is also possible to pursue

courses at the university abroad at government

expense. The primary, intermediate and secon-

dary levels last respectively 6, 3 and 3 years.

School is mandatory until the ninth grade. In most

schools, male and female students are separated.

Aside from the UAE education system, private

schools allow foreigners to benefit from the In-

dian, Pakistani, American or French education sys-

tems. The post graduate degrees which are most

chosen by Emirati students include Business Ad-

ministration, Aerospace Engineering, Education,

Medicine, Civil Engineering and Finance.


05 Overview of Educa-tional Programs in the SCM Sector


Industry

Insights

Dr. Cedwyn Fernandes, MBA Program Leader

Opening a new MBA Program speciali-zation 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. Ced-

wyn 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 set-

ting 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 Thi-

bauld 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-

tics start?

The MBA in Operations and Logistics is a new

program which will be launched in October

2011. This is an enhancement of our general

MBA program which has been offered at Mid-

dlesex University Dubai since 2005.

What made you decide to offer this new pro-

gram? Any specific reason?

Dubai has positioned itself as a world class lo-

gistics hub attracting a number of middle and

senior management supply chain professionals

to the region. The number of management

level positions in the logistics industry will also


increase and to cater to this segment we intro-

duced the MBA with specialization in Opera-

tions & Logistics. At the GETEX Exhibition in

April 2011 the maximum enquiries amongst

the MBA specializations were for Operations &

Logistics.

Are you confident that the demand for your

program will remain strong?

We are confident that the

demand for this program

will remain strong. We be-

lieve that the blend be-

tween an MBA with a spe-

cialization in Operations & Logistics will cater

to students across industries and not just logis-

tics related industries.

What is the content of the program?

The core modules cover the managerial com-

petencies of strategy, human resource man-

agement, finance, economics and marketing.

The specialization modules will cover opera-

tions strategy and supply chain management.

The dissertation module which consists of 60

credits will be on an operations or logistics is-

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

operations & logistics. The supply chain mod-

ule deals with a wide range of topics (Demand

Management, Global Supply Chain Strategy,

Supply Management, and Contemporary issues

in Supply Chain Management). Contemporary

issues relating to supply chain management

will be covered via case

studies and journal re-

search articles.

The program is unique in

the sense that in addition

to the academic content there are four Applied

Learning Experience (ALE) and four Executive

Skills Development (ESD) workshops. One of

the ALE is the business simulation MIT opera-

tions and supply chain strategy game where

students have a hands on experience in under-

standing the causes of the Bullwhip effect. One

of the ESDs is a two day workshop on project

management. The ALE International Field trip

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

Opening a new MBA Program specialization in Operations and Logistics

The number of management

level positions in the logistics

industry will also increase



Industry

Insights

Hong Kong. It is expected that the filed trip for

the MBA Operations & logistics will be to

Shanghai.

Which type of courses are the students most

demanding?

The enquiries we get relate to MBA related

programs rather than just a specialized pro-

gram in Logistics. The MBA

program develops your

managerial competencies

and at the same time gives

you an advanced knowledge

of operations & logistics.

The program is designed for managers who

wish to have a complete overview of the sup-

ply chain functions within the company. Stu-

dents wishing to specialize in a specific area of

supply chain such as procurement can under-

take certification courses from reputed supply

chain certification bodies.

How many students are you planning to enroll

in your MBA Program?

Currently in our MBA program, we have 140

students. After the October 2011 intake, we

will have 200 students in our MBA program if

we take into account all specializations.

We expect that for the MBA in Operations &

Logistics specialization we will have between

30 and 40 students in the first year. We expect

the program to expand substantially later on.

We are currently in the

process of signing up one of

the prominent supply chain

industry representative

group as an Industry Partner

for the program.

What is the background of the students / pro-

fessionals?

We require 3 years of experience but not nec-

essarily in a Supply Chain function. Most of our

students in the current program have between

5 to 7 years of work experience. The average

age is between 26 to 30 years old. Our MBA

program caters to the ambitious professionals

looking to enhance their career. Our MBA pro-


The enquiries we get relate

to MBA related programs

rather than just a specialized

program in Logistics.


gram gives our students management compe-

tencies which enables them to perform more

efficiently at their job.

Do you have an idea of your placement suc-

cess results?

All our MBA classes are held in the evening

which enables our students to continue to

work while studying so placement is not an

issue. We have a very

proactive career depart-

ment which is constantly

advertising industry re-

quirements.

In which areas do you

expect that your stu-

dents will be employed after the program?

We expect that many of them will be working

in logistics services companies or within the

Supply Chain function of a company. Currently

our students work in a range of industries in

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

facturing and government agencies.

As a University, what are the challenges that

you are facing while offering a SCM Program?

Or what prevents you from proposing more

SCM programs? Any specific difficulties?

So far we have not faced any difficulties to of-

fer this program and it has been well received.

What are the skills that your feel most compa-

nies are looking for in the Supply Chain job

market in the Middle

East?

Companies are looking

for people to manage

their logistics related

functions within their

companies and/or their

3PL suppliers. Most com-

panies are looking for candidates with a com-

plete knowledge of the Supply Chain functions

rather than just functional specialists. As Dubai

is becoming a World Class Logistics Hub, and is

doing more and more value added operations,

more and more professionals with higher level

of management skills are needed. This is what

is going to make a difference in the job market

Opening a new MBA Program specialization in Operations and Logistics


Most companies are looking for

candidates with a complete

knowledge of the Supply Chain

functions rather than just

functional specialists.


in the next few years.

Do you have any special partnership with any

company in the region?

The Supply Chain and Logistics Group (SCLG)

has been designated as the Industry Partner of

the MBA (Operations & Logistics) program.

Middlesex University will designate one 100%

SCLG Excellence scholarship for SCLG members

for this program. SCLG will provide industry

professionals to con-

duct workshops at the

University and provide

opportunities for in-

ternships in its mem-

ber companies.

Do you plan to have as well research partner-

ships?

Our goal is to build a center of excellence for

Supply Chain Management with one of the big-

gest 3PL companies in Dubai. Hopefully this

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-

search for their MBA project under the um-

brella of the center of supply chain and excel-

lence.

According to you, what is the future outlook

for the supply chain workforce in the region?

Do you feel that the demand for Supply Chain

and Procurement professionals will remain

strong?

My personal view is that the future of Dubai is

linked to the Supply

chain and Logistics

industry. It is one of

the major drivers of

growth in Dubai. The

Dubai World Central

project will be central to the restructuring of

the supply chains of global companies which

will contribute to the economic growth in the

region. I believe it will bring a lot investment

and create a lot of opportunities for Supply

Chain professionals.

Industry

Insights


My personal view is that the

future of Dubai is linked to the

Supply chain and Logistics industry


University Supply Chain Programs

Overview of Supply Chain programs offered by local universities

ccording to a recent study from Arabian

SupplyChain.com, 76.3% of potential stu-

dents estimate that there is a lack of suitable Sup-

ply Chain courses in the Middle East. Moreover,

62.9% think that the quality of Supply Chain

courses in the Middle East is lower than in other

regions.

However, a lot of new Supply Chain university pro-

grams have appeared in the region in the past few

years. B2G Consulting has reviewed their curricu-

lum and interviewed some of their faculty mem-

bers in order to have a better understanding of

the possibilities that they offer to future Supply

Chain professionals.

Several types of university programs are available

in the region. Some universities offer Supply Chain

programs to undergraduates (Bahrain Polytechnic,

University of Bolton, University of Dubai, Middle-

sex University).

Other programs are Master of Science specialized

in Logistics and Supply Chain Management

(University of Wollongong, Heriot-Watt University,

University of Bolton, Strathclyde Business School).

Some of these programs are specialized degrees in

Logistics whereas others offer Supply Chain

courses as a part of a more general degree.

The University of Wollongong proposes a Master

of Science in Logistics in Dubai which was the first

program to be launched in the United Arab Emir-

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

also be studied part time while working in the in-

dustry. The program offers a wide range of gen-

eral courses on Logistics (Supply Chain Manage-

ment, Strategic Supply Chain Management, Inven-

tory Management, Procurement Management,

Inventory Management). It also covers some tech-

nical aspects of the Supply Chain (Logistics System

Management, Logistics Information Systems). The

program has recently signed an agreement with

Maersk Logistics to benefit from insights from in-

dustry professionals.

The Master in Supply Chain and Logistics Manage-

ment offered by Strathclyde Business School is

also very specialized in Supply Chain. It provides a

variety of courses on strategic and operational

aspects of Supply Chain but also some courses on

Total Quality, on Project Management and on Fi-

nancial Management. A consistent part of the cur-

riculum is dedicated to business applications (case

A


05


Overview of Educa-tional 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 Wollon-gong Dubai Campus

MSc in Logistics Dubai, UAE 86% 16 Months

Bahrain Polytechnic Bachelor of International Logistics Management

Isa Town, Bah-rain

50% 4 years

Heriot-Watt University Dubai Campus

MSc in Logistics and Supply Chain Management

Dubai, UAE NA 12 Months (Full time) 24 Months (Part Time)

Diploma in Logistics and Supply Chain Management

Dubai, UAE NA 9 Months (Full time) - 21 Months (Part Time)

S P Jain Center of Man-agement

Global MBA Program - Specializa-tion in Supply Chain Management

Dubai, UAE / Singapore

20% 1 year (6 Months in Dubai / 6 Months in Singapore)

University of Bolton RAK Campus

BA in Business Management Ras Al Kaimah, UAE

NA 3 years

MSc in Supply Chain Management Ras Al Kaimah, UAE

NA 1 year

Strathclyde Business School Dubai Campus

Master in Supply Chain and Logis-tics Management

Bahrain, Oman, UAE

60% 1 year full time, 2 years part time

University of Dubai

BBA in Supply Chain & Logistics Management

Dubai, UAE 21% 4 years

MBA Program in Logistics & Op-erations Management

Dubai, UAE 38% 1 year

Middlesex University Dubai

MBA Program Dubai, UAE 13% 2 years BA in Business Management / Business Administration

Dubai, UAE NA 3 years

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


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

pleted in two years part time in various locations

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

cat).

Bahrain Polytechnic has recently started to offer a

Bachelor of International Logistics Management

for about 80 students per year. The university pro-

vides a variety of specialized courses in the field of

Logistics and Transportation (Freight and Ware-

house Operations, Fleet Management, Transport

Law, Maritime Shipping Systems,). After comple-

tion of the program, students enter in various pro-

fessions in the Navy, the Customs, the Police or

Airline, Maritime or Railway companies. Some ca-

reers are also possible within Transportation and

Logistics services companies.

Heriot-Watt University also offers a Master of

Science in Logistics and Supply Chain Manage-

ment. The program can be studied within one year

full time or two years part time. It includes

courses such as design and operations of logistics

systems, freight transport, global purchasing and

supply and maritime logistics. The university is

also recognized in the field of green logistics as

the professor who delivers this course is also chair

of the World Economic Forums Council on the

Future of Transportation.

The University of Bolton which is present in the

Middle East through its campus in Ras Al Khaimah,

UAE offers the possibility to both undergraduates

and graduates to get a UK degree in Supply Chain

Management.

Other universities propose MBA programs with

more general business courses but including a

Supply Chain module within their optional spe-

cializations.

This is the case of the Middlesex University in Du-

bai which offers a specialization module in Supply

Chain Management that includes courses strategic

and operational aspects of Logistics. The Univer-

sity has recently been endorsed by the Supply

Chain & Logistics Group (SCLG) who are desig-

nated as the industry partner for their MBA.

S P Jain Center of Management also has a spe-

cialization in Supply Chain Management as an op-

tional module for their program. This university

allows the MBA students to study 6 months in Du-

bai and 6 months in Singapore which are both two

important logistics hubs.

The University of Dubai offers a 4 year bachelor

degree in Business Administration with a major in

Supply Chain and Logistics Management which is

designed to prepare students for entry-level posi-

tion in Logistics. They also have a 1 year MBA pro-

gram in Logistics and Supply Chain Management.


05


Overview of Educa-t

Documents

State of Supply Chain Education 2011 Middle East Series (1)