MDR Logistics, part of Almajdouie Group, has highlighted team efforts, training and safety as well as the technology it will deploy atpetrochemicals producer Natpet, which has chosen it to serve as a total logistics service contractor for its plant operations in Yanbu.

The Logistics Support Services contract includes producthandling, warehouse management, transportation and customs clearance of polypropylene from the point of production to FOB shipments and customer sites.

MDR, which provides cutting-edge technology through strategic partnerships with world-class providers, has chosen SNS for the implementation of the Warehouse Management Solution (WMS) at Natpet's Yanbusite. The implementation includes integration with the Natpet SAP. system in aneffort to streamline operations and minimise processing time.

Gulf Industry magazine erroneously stated in its headline inthe Jubail & Yanbu feature, December 2009 edition, that 'MDR has big rolein Yanpet,' whereas Yanpet should have read as Natpet. Regrettably, Yanpet wasagain wrongly mentioned in the standfirst and in the first two paras when thereference should have been to Natpet.

The Natpet site produces 400,000 metric tonnes per year ofpolypropylene and is linked to a 40,000 sq m storage facility. The warehouse,including a 14,000 sq m covered facility and a 26,000 sq m open yard and silospace, handles the storage of raw material for production as well as finishedgoods from the factory.

The team makes the difference
The strong foundation for the success story of MDRLogistics' Yanbu and Jubail activities is the continuous focus on staff.  In order to ensure compliance with thestringent rules and regulations of the petrochemical industry, a lot ofattention is deployed in training and development. 

These are considered the cornerstone of its daily operationsand drive future growth. As they are also the main competitive advantage, thecompany is permanently investing in training.  It is happy that most of its projects achieve above-KPItraining records, thereby exceeding customer expectations, MDR says.

The development of individual training programmes is done instrong cooperation with the extensive knowledge base of Almajdouie Group.  Cross-functional, cross-project andcross-industry training projects encourage staff members to develop theiracquired skill base. 

Safety first
Considering that most of MDR Logistics' activities aredeployed inside hydrocarbons plants, safety is an absolute top priority for management and staff.  Thechallenging working environment dictates strong rules on safety and security,which have to be abided by all team members.

Special training programmes have been set up in conjunction with various customers, suppliers and other stakeholders in order to obtain thehighest standards in safety skills at all levels of the organisation.

A critical element in this aspect is the continuous and open communication with customers regarding best practices, incidents andnear-misses.  This sharing of information is always done in the spirit of creating learning moments and notas blame or punishment.  This positive approach ensures that all remain focused on safety at all times, saida company statement.

Technology details
SNS customised the Warehouse Management Solution implemented at Natpet to automate the receiving and putaway processes of pallets fromproduction, a 24/7 operation. The system automatically converts the estimatedproduction quantity evaluated in metric tonnes into bag and pallet quantity anddetermines the number of bin locations required for storage.

Mustafa: spearheading operations

The WMS functionalities have been extended beyond thewarehouse walls to handle Proof of Delivery (POD) entry received from theshipping lines

Multiple reports were developed to enable MDR Logistics tooperate the fully paper-based processes while maintaining the accuracy andcontrol required by Natpet.

A web portal version allows Natpet to view theirtransactions and inventory levels on line and on a real-time basis.

MDR Logistics is a joint venture between De Rijke Group ofthe Netherlands and Saudi Arabia's Almajdouie Group.

De Rijke Group is a world leader in silo and ware house services which include on-site and off-site activities, while Almajdouie Groupis the leader in integrated logistics solutions in the Saudi market providing services such as logistics and distribution, heavy lift, customs clearance, container terminal and freight forwarding.

MDR Logistics offers end-to-end supply chain services to thepolymer industry in Saudi Arabia.

The joint venture took effect in 2006.  S I Mustafa, managing director of MDRLogistics, says the enterprise is on the eve of major developments and that thecompany wants to be among the pioneers to deliver sustainable supply chainsolutions to petrochemical producers.

Bernard van den Wouwer, general manager of MDR Logistics,said close attention was maintained on training and testing to ensure a smooth 'Go-Live' in a very sensitive operation and the project was a real success.

Other projects
MDR Logistics has also successfully started another Sabicproject for a major petrochemical producer in Yanbu.  Almajdouie is currently handling 3 million tonnes of solid petrochemical product at Yanbu for three plants.

MDR is also operating an open-sky multi-customer terminaland storage facility in the vicinity of the customer complex.  This facility serves as an inventorycomplement to the already existing in-plant stock locations.

Meanwhile an MDR storage facility in a 220,000 sq m plot inYanbu, being built for the local petrochemical industry, will be operational inmid-2010. For the new facility, the company says it will use the learning curve momentum it acquired at its storage terminal in Jubail.