Learn About the Logistics System of Al Almiya Alhura and Its Importance

Logistics is the science and art of managing the flow of goods, energy, information, and other resources (such as products, services, and even humans) from an area of production to an area of consumption. That is, it is the process of planning, implementing, and controlling all activities related to the transportation, storage, and distribution of goods and services.

The logistics system offers a wide range of services that can be divided into two main categories:

1. Basic services:

• Aggregation: Collecting information about demand for products and raw materials.
• Transportation: Moving products and raw materials from one place to another.
• Storage: Storing products and raw materials in warehouses.
• Distribution: Distribution of products and raw materials to customers.

2. Ancillary services:

• Physical Processing: Physically processing products and raw materials (such as packaging).
• Packaging: Packaging products to protect them during transportation.
• Information Management: Managing information related to the supply chain.
• Customer Service: Providing customer service related to products and services.
• Insurance: Insuring products and goods against risks during transportation.
• Financing: Providing financing to companies working in the field of logistics.
• Customs clearance: Assisting companies in clearing goods from customs.
• Track and Trace: Track the movement of products and goods from source to destination.



These services can be provided by companies that specialize in logistics just like Al Almiya Alhura or by the companies themselves. Certainly, we guarantee that you will obtain the highest quality logistics systems as you obtained them from Al-Alamiah Al-Hurra Company, which provides its services throughout the entire Arab world.

Logistics can be divided into different types according to different criteria. Here are some of the most important types of logistics:

1. Logistics systems by application area:

• Production logistics: related to logistics activities within the factory, such as transporting raw materials between production stages.
• Distribution logistics: which relates to post-production logistics activities, such as transporting products from the factory to warehouses and then to customers.
• Purchasing logistics: These are logistics activities related to purchasing raw materials from suppliers.
• Reverse Logistics: Logistics activities related to returning defective or unwanted products from customers.

2. According to the direction of the flow of goods:

• Inbound Logistics: Logistics activities related to the flow of goods from suppliers to the company.
• Outbound Logistics: Related to the logistics activities associated with the flow of goods from a company to customers.

3. According to the scope of work:

• Domestic Logistics: Logistics activities within one country.
• International Logistics: It is related to logistics activities between two or more countries.

4. By type of goods:

• General goods logistics: These are the logistical activities related to the transportation, storage, and distribution of general goods.
• Special Goods Logistics: Related to logistics activities related to the transportation, storage, and distribution of special goods, such as hazardous materials or food.

5. According to the means of transportation:

• Land Logistics: Logistical activities related to transporting goods via land roads.
• Maritime Logistics: Related to logistical activities associated with transporting goods across seas and oceans.
• Air Logistics: Logistics activities related to transporting goods via aviation.

6. By service level:

• Full Service Logistics: Provides all logistics services from the point of collection to the place of distribution.
• Partial service logistics: which provides only some logistics services, such as transportation or warehousing.

Logistics is an essential component of the supply chain, encompassing a set of interconnected activities that ensure the efficient and effective transportation, storage, and distribution of goods and services. Here are the most important logistics activities:

1. Planning:

• Determine customer needs for goods and services.
• Planning the flow path of goods from source to destination.
• Choose appropriate means of transportation and storage.
• Determine costs and budget.

2. Assembly:

• Collect information about demand for products and raw materials.
• Collect products and raw materials from suppliers.

3. Transportation:

• Transporting products and raw materials from one place to another using various means of transportation (such as land, sea, and air).
• Ensure the safety of products during transportation.
• Track the movement of products during transportation.

4. Storage:

• Storing products and raw materials in equipped warehouses.
• Inventory management and organization.
• Ensure the safety of products during storage.

5. Distribution:

• Distributing products to customers.
• Ensuring that products reach customers on time and in good condition.

6. Customer service:

• Providing customer service related to products and services.
• Dealing with customer complaints and resolving them.

7. Information management:

• Supply chain information management.
• Using IT systems to improve logistics efficiency.

8. Packaging:

• Packaging products to protect them during transportation.
• Design suitable packaging for products.

9. Physical processing:

• Physically processing products and raw materials (e.g. packaging).
• Sorting and classifying products.

10. Insurance:

• Insuring products and goods against risks during transportation.
• Choose a suitable insurance company.

11. Customs clearance:

• Assisting companies in clearing goods from customs.
• Preparing the necessary documents for customs clearance.

12. Track and Trace:

• Tracking the movement of products and goods from source to destination.
• Use advanced track and trace systems.

The type of activities undertaken by a logistics company depends on the needs of its customers and the type of products it offers. Here are some factors that affect logistics activities:

• Product Type: Some products may require special handling during transportation and storage.
• Product Demand: Products in high demand may require more efficient logistics systems.
• Location of customers: The distance between the company and customers may affect the cost and duration of transportation.
• Costs: Companies must balance the cost of logistics activities with their revenues.

First: A General Presentation of Logistics Systems in the Saudi Market

The Kingdom of Saudi Arabia is one of the largest markets in the Middle East, as it has an advanced logistics system that connects it to the world. The following is an overview of logistics systems in the Saudi market:

1. Infrastructure:

Saudi Arabia has an extensive road network linking all parts of the Kingdom. The Kingdom has several international airports that connect it to the world. It also owns several seaports on the coast of the Red Sea and the Arabian Gulf.

2. Logistics Service Providers:

There are a large number of logistics service providers in Saudi Arabia, both local and international companies, and these companies provide a wide range of logistics services, such as transportation, warehousing, and distribution.

3. Technology:

Saudi companies use information technology systems to improve the efficiency of logistics systems. These systems are used to track the movement of products and goods, manage inventory, and provide customer service.

4. Challenges:

Logistics systems in Saudi Arabia face some challenges, such as a shortage of trained personnel and the high cost of logistics services.

Second: Ways to Improve Logistics Systems In Saudi Arabia

There are many opportunities to improve logistics systems in Saudi Arabia, such as investing in infrastructure, developing technology, and training personnel. Below are some of the most important advantages of logistics systems in Saudi Arabia:

High efficiency: Logistics systems in Saudi Arabia are characterized by their high efficiency, as products and goods are transported and distributed quickly and effectively.

Low cost: The cost of logistics services in Saudi Arabia is relatively low compared to other countries in the region.

Wide network: Saudi Arabia has a wide network of logistics service providers, providing companies with wide options.

Third: The challenges facing logistics systems in Saudi Arabia

Here are some of the most important challenges facing logistics systems in Saudi Arabia:

Lack of trained personnel: Saudi companies face a shortage of trained personnel in the field of logistics.

High cost of logistics services: The cost of logistics services in Saudi Arabia is still relatively high compared to developed countries.

Bureaucracy: Saudi companies face some bureaucratic obstacles that affect the efficiency of logistics systems.

Fourth: The most important opportunities to improve logistics systems in Saudi Arabia

However, there are many opportunities to improve logistics systems in Saudi Arabia, such as:

Investing in infrastructure: The Saudi government can invest in logistics infrastructure, such as developing roads, ports, and airports.

Technology development: Saudi companies can use IT systems to improve the efficiency of logistics systems.

Training cadres: The Saudi government and Saudi companies can work on training cadres in the field of logistics.

Fifth: Factors that affect the cost of logistics systems in Saudi Arabia

The cost of logistics systems in Saudi Arabia varies depending on several factors, the most important of which are:

Type of service: such as transportation, warehousing, and distribution.

Distance: The cost of transportation increases as the distance between the source and destination increases.

Type of goods: The cost of transporting and storing goods varies depending on their type, such as general goods or special goods.

Size of goods: Of course, the cost of transporting and storing goods increases as their size increases.

Speed of service: Increasing the speed of the required service increases the cost of the logistics system.

Fuel prices: There is no doubt that fuel prices affect the cost of transportation.

Port and airport fees: Port and airport fees affect the cost of international transportation.

Taxes and duties: Taxes and duties affect the cost of logistics.

Storage cost: The cost of storage varies depending on the type of warehouse and its location.

Insurance cost: The insurance cost varies depending on the type of goods and their value.

In general, the cost of logistics systems in Saudi Arabia ranges between 1% and 5% of the value of the goods.

Sixth: The most important tips for reducing the cost of the logistics system in Saudi Arabia

Here are some tips to reduce the cost of logistics systems in Saudi Arabia:

Choosing a suitable logistics service provider: Compare the offers of logistics service providers before choosing a service provider.

Good planning: Plan your supply chain well to avoid additional costs.

Use of technology: Use IT systems to improve the efficiency of logistics systems.

Storage in appropriate warehouses: Choose warehouses suitable for your type of goods.

Cargo Insurance: Make sure your goods are insured against risks.

In conclusion, the logistics systems in Saudi Arabia and the Arab world have many advantages, but some challenges must be faced. However, there are many opportunities to improve logistics systems, which will help increase the efficiency and effectiveness of the supply chain in the Kingdom and the Arab world.