IMPORTANCE IMPORTANCE OFOF

VOCATIONAL VOCATIONAL TRAININGTRAINING

ININ ROAD TRANSPORT ROAD TRANSPORT

““LAS REGION LAS REGION ““

Istanbul, 11 May 2011Istanbul, 11 May 2011

Bahiej Al-BiqawiBahiej Al-BiqawiDirector, Supply Chain Management, Almajdouie Group, KSADirector, Supply Chain Management, Almajdouie Group, KSA

(c) IRU Academy 2011(c) IRU Academy 2011

- One of the most growing sectors; it goes in line with One of the most growing sectors; it goes in line with any growth regardless from where it comes.any growth regardless from where it comes.

Logistics and Transport Sector Logistics and Transport Sector

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- Introduction of new business lines (i.e. Warehousing, Introduction of new business lines (i.e. Warehousing, Packaging, Door to Door Distribution, etc.).Packaging, Door to Door Distribution, etc.).

- Transport companies are more of family businesses Transport companies are more of family businesses with wide range of small size ones.with wide range of small size ones.

- The Arab world highly depends on drivers from Non-The Arab world highly depends on drivers from Non-Arab countries and some with no experience Arab countries and some with no experience sometimes.sometimes.- The low perception of driver profession looked at as The low perception of driver profession looked at as low and less important.low and less important.

- High unemployment rates among many of the Arab High unemployment rates among many of the Arab countries.countries.

Training… Is it important?Training… Is it important?

• An average of 17 Saudi Arabian residents die on the An average of 17 Saudi Arabian residents die on the country’s roads each day, a report by the Kingdom’s country’s roads each day, a report by the Kingdom’s General Directorate of Traffic has revealed. General Directorate of Traffic has revealed.

• Estimated that 8,000 people are killed and 32,000 hurt Estimated that 8,000 people are killed and 32,000 hurt on Egyptian road accidents each year. on Egyptian road accidents each year.

• By the year 2020 forecasts suggest that, as a cause of By the year 2020 forecasts suggest that, as a cause of death, road accidents will move up to third place.death, road accidents will move up to third place.

• $60 Billion is the cost of accidents in the Arab $60 Billion is the cost of accidents in the Arab countries.countries.

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Road Accident Costs by Region (in US$ Billion)Road Accident Costs by Region (in US$ Billion)

RegionRegion Regional GNP Regional GNP 19971997

Estimated Annual Accident CostsEstimated Annual Accident Costs

GNP (%)GNP (%) CostCost

AfricaAfrica 370370 1.01.0 3.73.7

AsiaAsia 24542454 1.01.0 24.524.5

Latin America/ Latin America/ CaribbeanCaribbean

18901890 1.01.0 18.918.9

Middle EastMiddle East 495495 1.51.5 7.47.4

Central & Eastern Central & Eastern EuropeEurope

659659 1.51.5 9.99.9

HMCHMC 22,66522,665 2.02.0 453.0453.0

Total 518.0518.0

• In 2005, the total cost of accident was 815 Billion.In 2005, the total cost of accident was 815 Billion.44

Accidents All Over The WorldAccidents All Over The World

•SyriaSyria

•EgyptEgypt

•Saudi ArabiaSaudi Arabia

•A REVIEW OF GLOBAL ROAD ACCIDENTS FATALITIESA REVIEW OF GLOBAL ROAD ACCIDENTS FATALITIES•G D Jacobs & Amy Aeron-ThomasG D Jacobs & Amy Aeron-Thomas

No. of accident No. of accident fatality in KSA in fatality in KSA in 2009 was 6,400.2009 was 6,400.

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•SyriaSyria

•EgyptEgypt

•Saudi ArabiaSaudi Arabia

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Accidents All Over The WorldAccidents All Over The World

•A REVIEW OF GLOBAL ROAD ACCIDENTS FATALITIESA REVIEW OF GLOBAL ROAD ACCIDENTS FATALITIES•G D Jacobs & Amy Aeron-ThomasG D Jacobs & Amy Aeron-Thomas

We need to…We need to…

• Have safer roads & reduce the no. of accidents. Have safer roads & reduce the no. of accidents.

How to do it?How to do it?77

• Deliver on time and have better Customer Service. Deliver on time and have better Customer Service.

• Retain drivers. Retain drivers.

• Generate more money to the business.Generate more money to the business.

• Have satisfied drivers and less work-related stress.Have satisfied drivers and less work-related stress.

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To invest properly,To invest properly,

thethe employeremployer must providemust provide

trainingtraining as one of the needed as one of the needed toolstools for for

employees to get the employees to get the job donejob done. .

TrainingTraining

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TheThe sharingsharing of information through of information through trainingtraining isis

our most valuable our most valuable tooltool toto developdevelop our most our most

valuablevaluable asset…asset…

ourour EmployeesEmployees..

Why Training?Why Training?

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The industry and government in the United The industry and government in the United States spend approximately States spend approximately $90 Billion $90 Billion each each year on employee training and educationyear on employee training and education ..

Average Japanese companies spend about Average Japanese companies spend about 6% 6% of budget on training.of budget on training.

Examples of Training InvestmentExamples of Training Investment

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A study of major automobile manufacturers A study of major automobile manufacturers found US automakers spend about found US automakers spend about 40 hours 40 hours training new employees compared to training new employees compared to 300 hours 300 hours for Japanese automakers.for Japanese automakers.

Examples of Training InvestmentExamples of Training Investment

Motorola’s CEO required all divisions to spend at Motorola’s CEO required all divisions to spend at least least 2%2% of budget on of budget on trainingtraining. Over the next 7 . Over the next 7 years, profits increased by years, profits increased by 47%47% and it was estimated and it was estimated that each that each $1.00 $1.00 in training yielded in training yielded $30.00 $30.00 in return.in return.

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Employers:Employers:

How can I be sure the organisation will benefit?How can I be sure the organisation will benefit?

Training is so expensive – how will I know if it has Training is so expensive – how will I know if it has been effective?been effective?

Will this affect the goal of developing and Will this affect the goal of developing and implementing standards and protocols for the implementing standards and protocols for the organisation?organisation?

““If I train them, they’ll leave.”If I train them, they’ll leave.”

How do we perceive training?How do we perceive training?

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Individual:Individual:

““How is that related to what I do?”How is that related to what I do?”

““I’m good at my job anyway, I have no time.”I’m good at my job anyway, I have no time.”

““I suppose that’s my weekends shot for months!”I suppose that’s my weekends shot for months!” (Waste of time)(Waste of time)

““Are they trying to get rid of me?”Are they trying to get rid of me?”

Attitudes to Training Attitudes to Training

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1.1. Respond to Respond to technology changes technology changes affecting job affecting job requirements.requirements.

2. Respond to 2. Respond to organizational restructuring.organizational restructuring.

3. Adapt to increase 3. Adapt to increase diversity of the workforce.diversity of the workforce.

4. Support 4. Support career development.career development.

5. Fulfill employee need for 5. Fulfill employee need for growth.growth.

Why Do We Need Training?Why Do We Need Training?

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Benefits of Training - IndividualsBenefits of Training - Individuals

Do job more efficiently – learn new methods. Do job more efficiently – learn new methods. Professional approach to work, engaged in Professional approach to work, engaged in

best practice routines.best practice routines.

Personal satisfaction – felt valued. Personal satisfaction – felt valued.

Recognized qualification to add to CV.Recognized qualification to add to CV.

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Keeps Good Employees.Keeps Good Employees.

Expands Your Offerings & Business.Expands Your Offerings & Business.

Provides Better Customer Service.Provides Better Customer Service.

Makes you Makes you MONEY!MONEY!

Benefits of Training – Business Benefits of Training – Business

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““Thanks to my company, I become Thanks to my company, I become

a truck manager!”a truck manager!”

Can we change our perception Can we change our perception

about training?about training?

1. Needs 1. Needs

AssessmentAssessment

2. Developing &2. Developing &

Conducting Conducting

TrainingTraining

3. Evaluating3. Evaluating

TrainingTraining

Training Process Model Training Process Model

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““Tell me and I forget, teachTell me and I forget, teachme and I remember, involve me me and I remember, involve me and I learn.”and I learn.”

- - Benjamin FranklinBenjamin Franklin

How Do Employees How Do Employees Learn the Best?Learn the Best?

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• • Look at training as an investment.Look at training as an investment.

• • Compare the costs & time of training to those of lost Compare the costs & time of training to those of lost of productivity & waste.of productivity & waste.

• • Factor in the potential long-term gains from having Factor in the potential long-term gains from having trained, highly-skilled personnel & well-tuned systems.trained, highly-skilled personnel & well-tuned systems.

• • Start by assessing your situation. Define your needs.Start by assessing your situation. Define your needs.

• • Create a plan. Ask for help.Create a plan. Ask for help.

Training... Make It Work For You!Training... Make It Work For You!

Time is Money. Spend both wisely.Time is Money. Spend both wisely.

2020

ALMAJDOUIE LogisticsALMAJDOUIE Logistics

(Dutch Partner)(Dutch Partner) (Chinese Partner)(Chinese Partner)

(British & Italian (British & Italian Partner)Partner)

•Almajdouie Logistics Almajdouie Logistics

(Japanese Partner)(Japanese Partner)

MTRMTR

MTAMTA

MHLMHL CFCCFC

MLDMLD

RPLRPL

MDRMDR

MPSCMPSC

MAXXMAXX

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Almajdouie Logistics… Almajdouie Logistics… at present and the at present and the future!future!

Equipment & Asset 2007 2008 2009

Trucks 1200 1600 2200

Trailers 1,200 2,000 2,400

Reach Stackers 10 25

Forklifts 40 169

Products / Container Terminal

310,000 m2 1,000,000 m2 1,600,000 m2

Manpower 3,000 4,000 4,600

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Accident Accident HistoryHistory

YearYear Trucks Trucks Accident Rate (%) Accident Rate (%) Accident / Truck / YearAccident / Truck / Year

2005 1,000 0.3

2006 1,200 0.25

2007 1,200 0.2

2008 1,600 0.175

2009 2,200 0.15

We invested in training. We invested in training.

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Almajdouie Efforts – As a Result.Almajdouie Efforts – As a Result.

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Middle East Logistics Institute (MELI)Middle East Logistics Institute (MELI), , established in Saudi Arabia in 2010 by established in Saudi Arabia in 2010 by Almajdouie Group, envisions being the leading-Almajdouie Group, envisions being the leading-edge academic institute in the region.edge academic institute in the region.

MELIMELI seeks to build globally competitive seeks to build globally competitive logistics capacities to the business community logistics capacities to the business community in the Kingdom of Saudi Arabia through in the Kingdom of Saudi Arabia through developing and improving both the awareness developing and improving both the awareness and logistics skills of young professionals, and logistics skills of young professionals, practitioners, managers and executives, practitioners, managers and executives, providing them with specialized training in providing them with specialized training in Logistics and Supply Chain Management and Logistics and Supply Chain Management and obtaining levels of professional certifications in obtaining levels of professional certifications in the field of logistics.the field of logistics.

MELIMELI

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MELI’s International PartnersMELI’s International Partners

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Michigan State University (MSU)Michigan State University (MSU)

International Road Transport Union (IRU) International Road Transport Union (IRU)

The Chartered Institute of Logistics and The Chartered Institute of Logistics and Transport (CILT) Transport (CILT)

MELI AchievementsMELI Achievements

10 Advanced Short Courses in Supply Chain Management.

First accredited SCM certification program in KSA (on three levels).

First IRU-Accredited Institute in the Middle East for ADR.

First IRU-Accredited Instructors (7) on ADR last September 2010.

IRU-Accredited Instructors (3) on CPC Manager April 2011

Training Dept. (soon to be come Drivers Training Center).

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MELI Future PlansMELI Future Plans

CPC Training for Drivers and Managers to be CPC Training for Drivers and Managers to be conducted. conducted.

Drivers Training Center to be established:Drivers Training Center to be established:

- Latest Simulator.- Latest Simulator.

- Latest Driving Range to be developed. - Latest Driving Range to be developed.

- Professional trainers and materials.- Professional trainers and materials. International Accreditation Standards to be International Accreditation Standards to be

implemented. implemented.

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Do Less, Do Less, Save More.Save More.

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(c) IRU Academy 2011(c) IRU Academy 2011