SNS implements WMS for MDR Logistics and Natpet Petrochemical Storage Facilities

MDR Logistics is the joint venture of two professional business houses, De Rijke group based in the Netherlands - a world leader in Silo & Warehouse services which include on-site and off-site activities - and Almajdouie - the leader in Integrated Logistics Solutions in the Saudi Arabian market, providing services such as Logistics & Distribution, Heavy Lift, Customs Clearance, Container Terminal and Freight forwarding. MDR Logistics offers end-to-end supply chain services to the polymer industry in Saudi Arabia.

NATPET (owned at 57% by Alujain Corporation) has chosen MDR Logistics as its total logistics service contractor for the plant operations in Yanbu. The Logistics Support Services contract includes product handling, warehouse management, transportation and customs clearance of polypropylene from the point of production to FOB shipments and customer sites.

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 Yanbu site. The implementation included integration with NATPET SAP system in an effort to streamline operations and minimize processing time.

NATPET Yanbu site produces 400,000 metric tons per year of polypropylene and is linked to a 40,000 sqm storage facility. The warehouse includes a 14,000 sqm covered facility and 26,000 open yard and silo space and handles the storage of raw material for production as well as finished goods from the factory. The daily inbound volume from the production line is of around 900 pallets with an outbound daily volume to containers and trucks of about 850 pallets.

The Warehouse Management Solution implemented at NATPET was customized by SNS to automate the receiving and putaway processes of pallets from production, a 24/7 operation. The system automatically converts the estimated production quantity evaluated in Metric Tons 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. Due to the nature of warehouse and yard operations, multiple reports were developed on the Infor WM to enable MDR Logistics to operate the fully paper-based processes while maintaining the accuracy and control required by NATPET.

In addition to the WMS, a Web portal version developed by SNS was implemented allowing NATPET to view their transactions and inventory levels on line and on a real-time basis.

"The implementation of a warehouse management system at a polypropylene facility the size of NATPET Yanbu site is a challenging project. SNS' skills in project management ensured that all involved parties were always on the same page; a special close attention maintained on training and testing to ensure a smooth Go-Live in a very sensitive operation."

said Bernard Van Den Wouwer, General Manager of MDR Logistics.

The interfaces developed on Boomi Platform between Infor WMS and SAP ensured a smooth integration between both systems. SNS' previous experience with SAP system guaranteed a successful implementation in collaboration with the IT team of MDR Logistics. This integration ensured the elimination of paper and email documents, full data integrity and full visibility and control of process flows.

"We were in the mid of the implementation of SAP at NATPET when the Yanbu facility was starting operation," said Ahmad Annan IT Manager at NAPTET. "It was the first implementation for our IT team on SAP integration and SNS' expertise ensured that the interfaces were well designed and operational from day one."

"We are grateful for MDR Logistics and NATPET for the trust they have placed in our team" said Mario Ghosn, General Manager at SNS. "The implementation of Infor WM at the Yanbu site is SNS' first Petrochemical facility project and we are confident that more will come. We have proven once again that our solutions are adaptable to different environments and operations."