Saudi Arabian food producer Almarai has commissioned Switzerland-based Swisslog to automate its distribution logistics for its operations in Al Kharj, Saudi Arabia.

The order value is approximately €43 million ($46.2 million), said a statement.

By the end of 2018, Swisslog will implement automation projects in five phases. In addition to innovative warehouse logistics, Swisslog will also handle on-site system operations, it said.

Almarai is the world’s largest vertically integrated dairy company, also specialising in fruit juices, bakery products, poultry and infant nutrition. It will link this major project to a strategic reorientation of its logistics operations. It plans to achieve additional competitive advantages by optimising and significantly accelerating its logistics processes, it added.

The company is a major supplier of dairy and other food products in the region

The scope of the Swisslog order includes cranes, conveyors, monorail systems, automated truck loading and automated picking modules. To control all goods movements, Swisslog will install warehouse management software based on the extended warehouse management (EWM) warehouse management module from SAP. Dynamic simulation will make it possible to visualise and optimise all data from goods throughput to system performance, said the statement.

Additionally, Almarai management has opted for Swisslog’s System Operation service to ensure smooth warehouse operations. Swisslog service technicians will maintain and support the systems on site, it added.

Daniel Hauser, Swisslog’s managing director for Germany, Austria, Switzerland and the Middle East, said: “Almarai is the second Middle Eastern company in a short period of time that we were able to gain as a customer.

“This is proof that, thanks to our innovative solutions and powerful network in the region, we can provide tailor-made solutions to meet the requirements of each and every customer.”

Dr Christian Baur, chief operating officer of the Swisslog Group and president of the Warehouse and Distribution Solutions division, said: “The Middle East region is an important growth market.  It’s a major milestone for additional growth in the region.”