In a conversation with Hamza El Shaer, Starlinks’ Marketing and Growth Executive Director, Vibha Mehta explores the company’s digital innovation transforming businesses.
Established in 2019 as part of the AZAQ Investment Holding Group in Saudi Arabia, Starlinks swiftly rose as a leading supply chain solutions provider in the GCC. Their primary focus on customer satisfaction and innovative problem-solving has empowered businesses seeking transformation and rapid expansion. Initially concentrating on B2B warehousing and transportation, they expanded into e-commerce, providing comprehensive last-mile services. In 2022, they introduced Starlinks Global, enabling tech-driven cross-border e-commerce shipping. The highlight came in 2023 with the introduction of their pioneering hybrid fulfilment centre, seamlessly integrating manual and robotic operations. In 2024, they unveiled Starlinks Solutions, leveraging their automation, software, and robotics expertise to offer businesses a streamlined ‘SMART’ supply chain solution.
Unique Elements
Starlinks’ e-commerce fulfilment service introduces a groundbreaking hybrid solution, the first in the market. “Our groundbreaking approach seamlessly integrates manual picking operations within a ground-plus-four-level pick-tower, alongside a state-of-the-art robotics picking and sorting station,” shares Hamza El Shaer, Marketing and Growth Executive Director of Starlinks. This state-of-the-art system can handle an extensive inventory of up to 9 million items and efficiently process 60,000 daily shipments. Using their unique tech aggregator system, they collaborate seamlessly with various 3PL partners, ensuring smooth operations. With this integrated approach, they achieve impressive performance metrics, such as a 95% ship-out rate, a 99% first delivery attempt rate within SLA, and leading same-day delivery service in critical hubs like Riyadh, Jeddah, and Dammam.
Digital Transformation
Starlinks prioritizes technology in all operations, utilizing advanced solutions from infrastructure development to final customer delivery to enrich customer experiences. Hamza adds, “Our facilities boast the latest Material Handling Equipment (MHEs) and adhere to rigorous Quality, Health, Safety, and Environment (QHSE) standards, ensuring utmost safety and efficiency.”
Teaming up with renowned firms like Geek+, they integrate cutting-edge technologies like Autonomous Mobile Robots (AMRs) to enhance picking, sorting, and conveyance efficiency. They also employ route optimization systems, on-time address validation, and transport management tools to simplify operations and facilitate smooth cross-border shipping. This technology-focused strategy extends to empowering staff, seamlessly integrating technology into their daily tasks. Through their commitment to technology, they aim to enhance customer satisfaction, boost employee productivity, and achieve operational excellence across their value chain.
Trends In 2024
According to Hamza, there’s a notable rise in consignee and end-consumer demands for logistics and supply chain services in the Kingdom. Quick order fulfilment has become the norm, with same-day delivery becoming increasingly common. The presence of multinational corporations and the adoption of electric vehicles (EVs) are undergoing a shift in the logistics sector, indicating significant transformation ahead.
This shift will result in expanded operations into broader regions, such as the Red Sea and Neom, necessitating a more comprehensive logistics network and enhanced road infrastructure to facilitate connectivity with other GCC countries. “Additionally, we anticipate a rise in bonded/free zones not only near ports but also within mainland areas, further optimizing trade and distribution processes,” explains Hamza.
This transformation mirrors a vibrant environment where innovation and flexibility are crucial in addressing the market’s changing needs. It is essential for sustaining growth and competitiveness within the Kingdom’s logistics sector.
Challenges
“People remain our foremost challenge, particularly in a competitive environment like the Kingdom where attracting top talent is a constant endeavour for all,” highlights Hamza. Starlinks recognizes the significance of cultivating a skilled workforce and has invested in a second-to-none employer branding program.
He continues, “Our program ensures every employee has access to personalized growth plans and career development opportunities.” In the future, they aim to introduce The Starlinks Academy, an innovative project to transform supply chain progress in the Kingdom. Their focus on employee growth and promoting a culture of ongoing learning and progression aims to attract top talent, retain them, and empower them to lead innovation and excellence in the company and the wider sector.
Sustainability
The sector is experiencing a significant shift toward sustainability as firms adopt measures like renewable energy, eco-friendly packaging, and green transportation. Prioritizing sustainability offers more than environmental benefits; it also boosts competitiveness, builds customer loyalty, and ensures long-term profitability. Essentially, sustainability is ethically necessary and strategically vital for resilience, innovation, and sustained success in a changing environment.
Foresight
In the future, Starlinks will lead the way in e-commerce logistics innovation by introducing the Starlinks Solutions Division in 2024. Utilizing their automation, software, and robotics proficiency, they provide businesses with an advanced ‘SMART’ supply chain solution that surpasses conventional services.
“Our approach includes comprehensive services such as facility design, construction, lifecycle management, and operational support. This end-to-end solution, encompassing Design, Build, Operate, and Transfer (DBOT) capabilities, is tailored to meet each client’s specific needs. In Starlinks KSA’s Contract Logistics segment, our ‘Operate’ function operates as a traditional 4PL model, seamlessly integrating with our holistic approach,” says Hamza.
As they prepare to develop new supply chains to accommodate the region’s expanding economy, Starlinks is dedicated to providing effective and customized solutions that guarantee a smooth and gratifying customer experience both domestically and internationally.