Optimization and Consolidation of Logistics Flows
As part of its missions, AMDL has to coordinate and to implement sector-based action-plans, which associate public actors and private economic operators in order to improve, structure, and develop the logistics chains of the main flows of goods.
In this connection, during the year 2013, the Agency hosted a number of work-committees which brought together ministerial departments and the private sector with a view to translating the State-CGEM Program-contract into sector-based application contracts, all of which aimed to ameliorate the supply chains of certain merchandise flows.
Accordingly, three sector-based applications were signed before His Majesty King Mohammed VI (May Allah assist him) in Zenata on May 13, 2014. These contracts relate to logistics competitiveness in import-export flows, construction materials flows, and domestic distribution flows.
Works are currently underway in order to finalize the draft application contracts aimed at improving logistical chains covering agricultural and hydrocarbon flows.
Foreign trade constitutes an essential component of the Moroccan economy. Through exports, foreign trade serves to bolster employment, to enhance the country’s foreign currency reserves, and to shore up the radiance of Morocco across the world. Besides, thanks to imports, foreign trade makes it possible to access consumer products and resources emanating from other countries and to contribute to the improvement of citizens’ living standards and to the development of the Kingdom’s business and industrial fabric.
Thus, the optimization of logistics competitiveness of import-export flows –notably through the development of infrastructures—the adoption of good practices in logistics (integration, outsourcing, and services rendered to customers), and the development of competencies in the area of international logistics, constitute a priority-topic, inasmuch as its outcomes have direct and positive impacts on the Moroccan economy in these areas:
- Enhancement of the attraction of foreign investments to Morocco;
- Improvement of the quality of logistics services all along the chain: from the producer or importer all the way to the ultimate customer (end-user);
- Upgrading of company operational and commercial performance (speed of delivery; responsiveness; flexibility and capacity of delivery);
- Availability of international forwarding services at competitive prices.
With these objectives in mind: the reduction of logistics costs; the improvement of the reliability of logistics chains; and the reduction of import-export operations-related impacts on the environment, the contract specifically covers four types of flows generated by import-export, namely:
- Agricultural produce and fisheries flows;
- Textiles and traditional craft industry products flows;
- Industrial goods flows;
- Container flows.
These objectives hinge on five major focal points that constitute the main lever of change towards the improvement of the logistics competitiveness of the import-export flows (IE).
- Focal Point 1: Support for the Emergence of the Import-export Logistics chains’ Aggregators:
IE Action 1 Definition and adoption of a legal frame governing access to, the organization of, and the exercise of the “freight-forwarder” profession. IE Action 2
Booking of such logistics premises within Logistics Parks as would foster the development of freight forwarders. IE Action 3
Support and promotion of the development of virtual logistics and fret service-provision market. IE Action 4 Encouragement for the creation of MEAD and the establishment of control services within the planned logistics parks’ network. IE Action 5
Fostering the development and the promotion of aggregation schemes and the emergence of sector-based export loader committees. IE Action 6 Launch of study designed to work out an action-plan in order to reduce logistics surcharges arising from the return of empty containers. IE Action 7 Sensitization of inter-professions engaged in import-export to the importance of outsourcing the logistics function and resorting to freight forwarding.
- Focal Point 2: Development of Logistics Infrastructures Specifically designed for Import-Export Flows:
IE Action 8 Booking of such logistics premises within Logistics Parks as would meet the current and future needs of import-export flows, as expressed by the sectors of traditional craft industry, industrial goods, and textiles. IE Action 9 Creation of conditions favorable to the development of cereal silos by operators within Logistics Parks so as to meet current and future storage needs, as expressed by the sector. IE Action 10
Putting harbor cereal transit capacity on-line, in step with the development of future cereal platforms within Logistics Parks, along with the crushing capacities that are located closest to entry-points. IE Action 11
Setting up better complementariness between the logistics offer designed for agricultural export flows within logistics parks and those provided for within Agropole (or, the agricultural city). IE Action 12
Launch of actions designed to promote the logistics offer at the level of Logistics Parks, both nationally and internationally.
- Focal Point 3: Amelioration of the Transportation Offer designed for Import-Export Flows :
IE Action 13
Launch of a study aimed at improving rail/marine interoperability, in line with the new harbor strategy and the planned ZLMF (Logistics Consolidation Parks) network. IE Action 14
Reinforcement of the offer of service in rail transportation of cereals, in line with its cereal freight plan and the national cereal platform scheme. IE Action 15
Support and promotion of development and optimization projects pertaining to certain import-export logistics chains. IE Action 16
Support to the development of national actors in International Road Transportation and improvement of their competitiveness and the quality of the services rendered. IE Action 17
Bolstering of the competitiveness of the marine import-export chain link, through the implementation of the measures recommended by the new strategy of the marine transportation sector and the development of the National flag.
- Focal Point 4: Facilitation of Logistics Operations at Border Points:
IE Action 18
Reinforcement of the means of information, the processing of complaints and the responsiveness to emergencies at the level of the Kingdom’s airports. IE Action 19
Taking additional initiatives designed to improve the conditions of cereal-transit via ports. IE Action 20
Improvement of the coordination and the synchronization of control operations within Border inspection/check points, as is the case in the Casablanca Harbor. IE Action 21
Amelioration of the transparency, de-materialization, and simplification of the harbor and airport transit procedures. IE Action 22
A dynamic analysis designed to evaluate Morocco’s main import-export logistics chains, with a special focus on the transit chain-link. IE Action 23
Creation and animation of logistics committees tasked with on-going improvement of the handling of import-export flows.
- Focal Point 5: Bolstering the Security and Integrity of the Merchandise:
IE Action 24
Beefing up regulation and control mechanisms intended to improve the security and smooth flow of trucks bound for or exiting from or within ports. IE Action 25
Consolidation of controls and compliance with cold-chain rules in the transportation of perishable goods. IE Action 26
Establishment of installations –whenever they are warranted—designed to ensure compliance with the continuity of the cold-chain at the level of the Kingdom’s ports and airports. IE Action 27
Improvement of the traceability of merchandise, harmonization, and adaptation of working hours in the Kingdom’s ports and airports.
The optimization of the logistics pertaining to construction materials is a priority subject, inasmuch as any reduction in logistics costs –reckoned to be 15% of the value of the materials—is bound to have a direct and positive impact on the following:
- The purchasing power of households at the moment of the acquisition, construction, or rental of a housing unit;
- The creation of employment in the construction material sector (manufacturers, intermediaries, logisticians, distributors, and construction workers);
- The budgets allocated to central and local administrations, through cutting the costs of building public infrastructures and curbing unregulated and randomly-built houses;
- Sustainable utilization of natural resources which are used in the manufacture of construction materials, through enhanced professionalization of the actors in the sector.
This contract specifically covers three types of materials, namely:
- Quarry materials (sands, gravel, marble, and clay …)
- Materials used in structural works (cement, concrete, steel, bricks)
- Material used in secondary works (ironworks, plumbing, ceramics, electrical components …)
Construction materials should be differentiated, because of the different logistics stakes applying to them:
- The flow of quarry materials is relatively a simple and convenient process. Their transit is mainly direct –from the producer to the end-user—owing to the density of the extraction site and the ponderous nature of the products concerned. The problematic issue facing the flow of quarry-derived materials relates more to the conditions of their transportation than to their consolidation.
- On the other hand, the flow of materials used in structural works, as well as in secondary works, is more complex and requires considerable structuring efforts, owing to the low maturity of the actors in intermediary storage and final distribution.
In this respect, four objectives have been deemed to be top-priority:
- Consolidation of flows, notably between production and importation sites, on the one hand, and the construction/impoundment areas, on the other hand;
- Follow-through of the development of modern networks of wholesalers who bring genuine added-value;
- Follow-through of the development of added-value services provided near work sites;
- Contribution to the reduction of underground activities in the sector.
The actions provided for by this contract revolve around three major foci, to wit:
- Focal Point 1: Consolidation of Flows from Production Areas to Construction/Impoundment Areas:
MDC Action 1 Putting land at the disposal of professional actors, at affordable rates, within logistics parks that are especially designed for construction materials. MDC Action 2 Promotion of construction material storage platforms for the benefit of the operators in the sector. MDC Action 3 Scheduling and setting up of construction materials platform within Multi-flows Logistics Parks, in harmony with the development of construction materials eco-systems/Construction production clusters and Integrated Rental Industrial Estates/Parks.
- Focal Point 2: Follow through the Development of Professional Wholesalers and Distributors, offering Added-value Services:
MDC Action 4
Support to projects aimed at creating consortiums of independent specialized distributors or multi-specialty distributors. MDC Action 5
Promotion of good logistics practices in small and medium-sized construction sites. MDC Action 6 Organization of awareness-raising workshops on the outsourcing of logistics activities for the benefit of operators in the sector.
- Focal Point 3: Support to the Professionalization of the other Actors in the Construction Materials’ Sector:
MDC Action 7
Support and promotion of the development of virtual logistics service-provision markets and on-line freight which integrate the transportation of construction materials. MDC Action 8
Animation of an exchange forum designed to promote multimodal transportation solutions for finished construction material products. MDC Action 9
Beefing up of road controls to ensure compliance with authorized total weight and load, as applicable to the transporters of construction materials and to their principals/originators. MDC Action 10
Follow through of national constructors in anticipation of future invitation to tender for the realization of logistics infrastructures. MDC Action 11
Follow through of construction and public works companies in the improvement of their logistics performances. MDC Action 12
Reinforcement of the controls of the storage and transportation of hazardous construction materials.
As an essential component of the Moroccan economy, domestic trade also plays the role of an indispensable intermediary between producers and importers, on the one hand, and consumers, on the other hand. The logistics cost is significant, accounting for 20% of the selling price of goods, on average.
The optimization of the logistics of domestic trade flows, notably domestic distribution flows, will have a considerable impact on the following:
- The purchasing power of household, for which the estimated logistics costs pertaining to consumer goods, represent roughly 10% of their budgets;
- The security of the country’s food supply, through the securing of logistics chains;
- Consumer sanitary safety via compliance with the rules underpinning the cold-chain in transportation, handling, and storage activities;
- Sustainable development achieved by a reduction in the number of “tons x kilometers” and curbing greenhouse effect gas emissions;
- The quality of life lived by the citizens, on account of urban congestion and sound, visual, and atmospheric pollution generated by the transportation of goods ;
- Development of modern distribution, considering the potential of jobs that this process entails, while modernizing the traditional distribution network.
This contract covers current finished consumer products, which are processed and not intended to be transformed before being handed to the end-user. The objectives of the contract are as follows:
- The consolidation of flows, through the creation of logistics parks that are specially designed for this sector;
- The development of an offer of high value-added logistics services;
- The improvement of urban logistics.
The actions provided for by this contract revolve around three major foci, namely:
- Focal Point 1: Consolidation of Flows and Development of Sub-contracting:
Dist Action 1
Booking of such logistics premises within Multi-flow Logistics Parks as would be necessary to the development of domestic distribution operators. Dist Action 2
Promotion of domestic distribution and sub-contracting platforms for the benefit of the operators in the sector. Dist Action 3
Launch of qualitative and quantitative market studies in order to define needs for logistics service-provision as per region relative to domestic distribution flows. Dist Action 4
Launch of a pilot project for partial land-sharing in Commercial/business Activities Estates (ZAC), as provided for by the strategy for the development logistics park-based domestic distribution business. Dist Action 5
Setting up follow-up and communication tools on the evolution of offer and demand for logistics services which are outsourced both at the regional and national scales. Dist Action 6
Organization of workshops designed to raise awareness about the outsourcing of logistics activities for the benefit of operators in the secto. Dist Action 7
Promoting the development of virtual transport and logistics exchange market which is geared towards domestic distribution and sub-contracting.
- Focal Point 2: Follow-through the Modernization of Traditional Trade from the Logistics Stand-point
Dist Action 8
Support for the launch of an independent retailer consortium, which is endorsed by a professional purchasing. Dist Action 9
Enhancement of the efficiency of loading operations intended for domestic distribution products. Dist Action 10
Enhancement of control to ensure compliance with cold-chain rules in the transportation and storage of perishable goods. Dist Action 11
Support for the development of the pre-sale delivery techniques among wholesalers and retailers (optimization of the last kilometer).
- Focal Point 3: Contribution to the Structuring of Urban Logistics
Dist Action 12
Launch of a study of the problematic issues facing urban logistics, which would consist in establishing a diagnostic and working out an action plan. Dist Action 13
Bolstering of the regulations in force, relative to the storage and handling of the merchandise covered by the present contract. Dist Action 14
Elaboration of regional action-plans designed to spur operators to move warehouses currently located in city-centers and relocate in future logistics parks catering to domestic distribution and sub-contracting activities. Dist Action 15
Mobilization and sensitization of public actors, at the local and national scales, to the main logistics stakes related to urban distribution.