EFFICIENT PRODUCTION
As a manufacturer, Areej Vegetable Oils & Derivatives continuously adapts its entire value chain system to end users' needs and requirements.
BIOGRAPHY
Salem Nasser Al Bortmany graduated with a bachelor's degree in chemical engineering from the UK and obtained his MBA there. He attended various management and leadership programs including senior executive programs at Harvard Business School. He joined AVOD as an executive engineer and subsequently took on various positions. He sits on numerous boards including Reem Batteries and Power Appliances, Oman Textile Mills, and Al Madina Logistics Company. He is chairman of the Working Group Committee of Export Development Committee at Ithraa and a member of Oman Product Exhibition OPEX Committee.
How has digital transformation enhanced your company's productivity?
Management information systems and digital planning are becoming crucial for us. We have an enterprise resource planning (ERP) system that is a state-of-the-art quality management, namely SAP. It helps unify our entire information bank as well as the flow of information from planning to procurement, ingredients, packaging, products, and all the raw materials. It also links our sales and marketing, which helps us come up with manufacturing to see the optimum quantity and quality that goes into manufacturing and production.
Looking to the next three to five years, how do you see these market requirements evolving?
The dynamic of the market has two main elements: the needs and requirements of the end users. The lifestyle in Oman has changed, also changing the entire concept of the needs and requirements of end users with it. As a manufacturer, we have to adapt with our entire value chain system to the end users' needs and requirements. This requires an understanding of modern trade, where they come from, where they come in, and the power of negotiations.
What does it mean for the pricing strategy?
The power of the negotiation was once in the hands of manufacturers; however, today it is in the hands of large, chain supermarkets. Before getting into the pricing structure, first, one has to register the product and then make it available on the shelves that the company has rented. If a product is slow moving, then it obstructs other products from the shelves. This means it needs a more exposed location, though then the fees will increase. We have to remember that we are not alone in the market, and other similar products are also available.
How do changes in customer needs and increasing manufacturing costs reflect on your strategy?
That is the challenge. At the end of the day, we want our product on the shelves at a cost-effective, competitive, and affordable price. The game is to increase the entire value chain efficiency, whereby the cost of production has to fall, and the capacity of factory utilization should be at economy of scale. The more one produces, the lower the cost of production, the greater the power of negotiation they will have with their supplier, and the more cost effective it will be for their products to be on shelves.
How would you evaluate the government's efforts to modernize the logistics sector?
The logistics sector plays a crucial role, particularly for the products we export to foreign markets. The strategic location of the Sultanate of Oman facilitated our exports and enabled us to expand our units, since we are within 1,800km of these markets. This logistical advantage helped us to increase our export volumes, as we are able to also import materials, produce them there, and reexport them to the West and the MENA region.
How can the national logistic strategy be improved in terms of customs and regulatory issues?
There is a synergy between the public and private sectors, with the government helping the industrial sector by attracting FDI and increasing employment opportunities. This synergy is crucial, since it serves the country's economic growth, as well as encourages companies to enter new markets and develop new products. We also have more than 75 companies that support our products around Kenya and have had success in the East African region, where we have exported many of our products. This is why expanding in Africa is beneficial, so our next step is Central Africa. In turn, the coordination between the private and public sector is growing, and it is beneficial for both parties.
What are your strategic priorities for 2020, and how do they incorporate innovation?
We seek to identify the activity per unit to define each individual's goals and overall activity to increase productivity and effectiveness. We are also using more sophisticated tools to eliminate defects in production lines. Hence, our priorities for 2020 are three important elements: efficiency, effectiveness, and productivity.
EFFICIENT PRODUCTION
TABLE OF CONTENTS
Focus: Future foreign policy
Friends to all, enemy to none
In championing the late Sultan Qaboos' non-interference foreign policy, the new ruler of Oman, Sultan Haitham bin Tariq Al Said, is determined to work for friendship and peace, justice and harmony, and coexistence and positive constructive dialogue.
read articleInterview
David Kalife, CEO, Oman Oil Marketing Company (OOMCO)
Despite Oman's fuel market slowing down, OOMCO increased its sales volume of lubricants by 36% in 2019 and is constructing a greenfield bunker terminal at the Port of Duqm. The company has transformed while growing its expertise in Marketing and Digital.
read articleInterview
Azzan Al Busaidi, CEO, Ithraa
Azzan Al Busaidi is an expert in competitiveness and economic growth. He was appointed CEO of Ithraa in 2019 after 17 years spent covering managerial roles in the organization. Al Busaidi was previously Ithraa's director general of planning and studies and is a strong advocate of the potential of digitization. He holds an MBA from the University of Strathclyde and a BSc in Economics from Sultan Qaboos University.
read articleInterview
Qais bin Mohammed Al Yousef, Minister of Commerce, Industry & Investment Promotion & Former Chairman, Oman Chamber of Commerce and Industry
Private Omani companies will be able to benefit greatly from the Fourth Industrial Revolution by enhancing their local value-added strategies and upskilling the workforce.
read articleInterview
Tahir Bin Salim Bin Abdullah Al Amri, Executive President, Central Bank of Oman (CBO)
The Central Bank of Oman's job is to ensure there is adequate liquidity in the system and that banks remain robust and resilient to meet the credit requirements of all segments without undermining financial stability.
read articleB2B
Capital markets
CMA and MSM are supporting Vision 2040 by providing financing to government companies that intend to go public, financing expansion of existing and new IPOs, and widening the investors base in Oman by enhancing and developing the investment funds and insurance industries.
read articleInterview
Khalid Al Balushi, CEO, Khazaen Economic City
International investors and business owners can benefit from Khazaen Economic City's strategic location and its close proximity to the main gateways of the country to import, process, manufacture, distribute locally, and export their goods and services.
read articleFocus: Port 4.0
Destined for greatness
Investments in world-class infrastructure have generated huge rewards for Oman. The goal now is to leverage technology as a disruptive enabler, build human capacity across the public and private logistics sectors, and drive operational efficiencies to build an integrated logistics business environment that is benchmarked against the world's best.
read articleFocus: Gap in tourism services
All bases covered
An amalgamation of local companies and unique experiences in Oman has created an original flavor that is further differentiating Oman's tourism offering from other countries and in the process attracting scores of tourists from all across the world.
read articleB2B
Engineering design
Renardet Engineering Consultants and Design Unit Engineering are recognized experts in their fields. While the former is an international company strongly committed to excellent engineering consultancy services and environmental practices, the latter is an Oman-based team of architects and engineers that incorporates local culture and traditions.
read articleB2B
Construction materials
Oman's construction sector is facing a host of challenges, but Hempel Paints and Al Maha Ceramics are confident that a mix of forward-thinking business models, unique products, and strong government initiatives will help them through turbulent times and generate positive returns in the long run.
read articleInterview
Salim Razvi, CEO, Oman Academic Accreditation Authority (OAAA)
Focusing on higher education institutional accreditation, program accreditation, and the updating and maintaining of the Oman Qualifications Framework, OAAA is helping further advance higher education in the Sultanate.
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