Amajdouie Group's MDR Logistics has described as a real success the implementation of the SNS warehouse management solution at Natpet in Yanbu.

MDR Logistics is Natpet's total logistics service contractor for plant operations. 

'MDR Logistics prides itself in providing cutting edge technology through strategic partnership with world-class providers and has chosen SNS for the implementation of the warehouse management solution at Natpet's Yanbu site,' an MDR Logistics statement said. 'The implementation included integration with Natpet SAP system in an effort to streamline operations and minimise processing time.'

MDR Logistics is a joint venture between Almajdouie and De Rijke group of the Netherlands. De Rijke is considered a world leader in silo and warehouse services, while Almajdouie is a leader in integrated logistics solutions in the Saudi market.

'We are on the eve of major developments; the joint venture wants to be among the pioneers to deliver sustainable supply chain solutions to petrochemical producers,' said MDR Logistics  managing director SI Mustafa.

Natpet produces 400,000 tonnes per year of polypropylene and is linked to a 40,000 sq m storage facility. The warehouse, including a 14,000 sq m covered facility and 26,000 sq m of open yard and silo space, handles the storage of raw material for production as well as finished goods from the factory.

SNS customised the warehouse management solution to automate the receiving and putting away procesesses of pallets from production, a 24/7 operation. The system automatically converts the estimated production quantity evaluated in tonnes into bag and pallet quantity and determines the number of bin locations required for storage.

A new module was also added extending the WMS functionalities beyond the warehouse walls to handle the proof of delivery (POD) entry received from the shipping lines.

In addition to the WMS a Web portal version was implemented allowing Natpet to view their transactions and inventor levels on line and on a real-time basis.

Challenging project
'The implementation of a warehouse management system at a polypropylene facility the size of Natpet's Yanbu site is a challenging project,' said Bernard van den Wouwer, general manager of MDR Logistics.

Van der Wouwer: warehouse management solution 'a real success'

 'The highly skilled deployment team ensured that all involved parties were always on the same page;  a special close attention was maintained on training and testing to ensure a smooth Go-Live in a very sensitive operation. We can speak of a real success project.'

Meanwhile, MDR Logistics has also successfully started another project for a major petrochemical producer in Yanbu.  MDR Logistics is entrusted with value-adding supply chain activities such as bagging and palletising, stocking, inventory management and loading of the containers or trucks for dispatch to the final destination. These activities take place inside the plant-boundaries of the customer.

Additionally, MDR Logistics is operating an open-sky multi-customer warehouse in the vicinity of the customer complex.  This facility serves as an inventory complement to the already existing in-plant stock locations.

Considering the growth opportunity and importance of a multi-customer and multi-discipline warehouse in Yanbu, MDR Logistics has decided to directly invest in a new storage terminal in Yanbu.

It has acquired a plot of 220,000 sq m to develop storage and handling activities for the local petrochemical industry. Construction is ongoing and the project is expected to be full operation by mid-2010 .

'We will use the learning-curve momentums acquired at our storage terminal in Jubail in order to ensure smooth and safe operations at this new place,' said Van den Wouwer.

Safety is a top priority considering that most of MDR logistics' activities deal with hydrocarbon plants.