As part of its international expansion strategy, SCALLOG announces the signing of a commercial agreement with SPAN, a renowned player in the optimization and automation of distribution centers in the Near and Middle East.
During the Dubai World Expo where French innovation shines, SCALLOG agreed to enter into a partnership agreement with recognized intralogistics expert SPAN to market their “Goods to Man” robotic solutions in the Middle East, particularly in Egypt and the Arabian Peninsula, the United Arab Emirates, and Saudi Arabia. It marks SCALLOG’s desire to develop in a market with strong development potential, in search of innovative solutions to build the logistics of the future by capitalizing on a regional base, expertise in logistics, numerous references and a long-term relationship with SPAN. As Olivier Rochet, CEO of SCALLOG tells us: “We are pleased to partner with an intralogistics expert like SPAN who will bring our value proposition to the fastest-growing markets in the Middle East. A “made in France” robotic logistics solution, highly flexible and scalable, that automates and optimizes order picking, with agility and resilience, and with a constant focus on reducing costs and lead times.
An extremely heterogeneous and competitive market in search of innovation.
As in Europe, the Covid-19 epidemic in the Middle East and Arabian Peninsula has accelerated changes in buying behavior and triggered a boom in e-commerce. According to the latest Market Research Feedback study commissioned by Tiktok, 90% of the users of this social network in Saudi Arabia, 83% in the United Arab Emirates, and 79% in Egypt have significantly increased their online shopping habits in 2020. In order to meet the new omnichannel requirements for consumers, the distribution centers in these countries must now rationalize and automate their logistics operations to increase productivity and accelerate their throughput while limiting their labor requirements.
Hoda Daniel, Strategy and Communication Director at SPAN, explains to us the specific features of the market: “The Middle East is a heterogeneous market, as diverse as the countries it comprises. Today, three countries stand out in terms of investment and the deployment of intralogistics resources: Egypt, the United Arab Emirates, and Saudi Arabia. However, they each have their own criteria in terms of regulation, infrastructure, etc… Companies in these countries are therefore looking for a local partner, an expert in intralogistics, who perfectly understands their specific needs, provides tailored solutions and builds long-term relationships, just like SPAN.”
A leading player in intralogistics in the Middle East
Founded in 1989, SPAN is a key player in the modernization of intralogistics in distribution centers, in terms of advice and technological solutions. With a team of over 370 associates and a presence in Dubai, Doha, Abu Dhabi, Riyadh and Beirut, the company has unrivaled experience in its market with projects completed in over 30 countries across all sectors of activity. In addition, it is well known for its wide range of automation solutions, from the most traditional to the most innovative, for optimizing all warehouse operations.
Walid Daniel, CEO of SPAN, comments, “Faced with the numerous upheavals caused by the health crisis, from the impact on demand to the changes in buying habits, coupled with the instability in our region, we are now witnessing a fragmentation of the intralogistics market. In this context, we wanted to expand our technological offer of mobile robots and shelving, more flexible and less expensive than traditional handling systems, in order to respond to the growing demand for agility and efficiency from our clients in the face of a new economic situation, namely a recovery with many uncertainties.”
Three key factors motived SPAN’s choice to endorse and market SCALLOG’s solutions, in addition to cultural similarities and common values: the technological reliability of the robotic solution proved in the field in Europe and transparently described in a technological roadmap, a value-added approach which means technology is used to optimize processes and a perfect understanding of operational requirements in order to build “tailor-made” solutions for clients.
Walid Daniel, CEO of SPAN, adds: “We are excited to add SCALLOG technology to our offer which moves us fully into intralogistics 4.0, combining automation, robotics, and data intelligence. This new offer guarantees our clients more agility and flexibility in their processes to adapt to changes and be creative in their business”.
Remi Badaroux, Partners Network Manager, concludes: “With SPAN, combining dual expertise, consulting and integration, our ambition, based on SCALLOG robotic solutions, is to quickly bring value to warehouses to enhance the customer experience and the competitive edge of businesses in the Middle East.
The two partners anticipate the first deployments of SCALLOG solutions in the first half of 2022.