Logistics (FMS) & Procurement Director
Dr. Mohammad Deeb Eed Group of Companies
Total years of experience :14 years, 7 Months
Set an action plan for the inventory liquidation & a procurement plan to insure inventory replenishment with fast moving items to keep the company self-funded themselves thru their sales operation without any financial support from the mother holding group till they find an interested buyer for the company.
After 6 months almost 48% of Dead items liquidated & mutually agreed to extend the contract for another 2 months, finally we liquidate successfully 68% of the dead items & To the ensure company self-funding from its sales operations a list of fast-moving items prepared based on consolidated data base from market demand analysis & company sales history for the past 4 years to insure positive cash flow.
Al-Nafie Steel is a Steel Trading & Service Providing company, having branches & sales-outlets across KSA & UAE. SSD is a key SBU achieving highest GP amongst all company business units/activities with annual sales revenue >30 MSR where operations managed thru corporate H.Q in Jeddah.
Nominated for this position by Al-Nafie Group Financial Director & External Financial Auditor as they were looking for a subject matter expert to Remodel the Inventory/Product Portfolio, pinpoint the slow moving & dead items, Initiate & supervise an effective liquidation program & modernize the supply chain operation to minimize On-Hand Inventory Level to be within safe side (INVENTORY TOR > 1.0
Performance Management: Monitoring & analysis of performances across all business operations, driving improvements in performances to realize goals. Executing strategic action plans focused on improving financial performance & profitability, creation of revenue streams, optimizing costs, setting strategic “Dynamic” pricing policy to financial returns, preparing and administering budgets, tracking and controlling expenditures.
•Sales Management: Directing product strategy and road map, advice sales and marketing operations, identified & corrected competition critical problems, differentiated products VS competitors, strengthened product gross margins, visited most of customers personally & organized meetings with sales team on weekly basis to ensure understanding of & gain buy-in for newly-implemented changes.
•Competitiveness Management: Held fully responsibility for pricing of SSP; set strategic “Dynamic” pricing policy to; improve financial returns, eliminate the risky effect of international steel & metals prices volatility, achieve sales targets of each region (Area), grow market position.
•Supply Chain Management: Manage procurement activities & developed strategic sourcing principle to; retool sourcing & supply processes, leverage purchasing power, control (lower) unacceptably high inventory level, enhance deliveries reliability and converting to 2rd party channels while eliminating direct channels. In addition, visited onsite the vendors to form strategic alliances, prequalify their products, negotiate prices, develop partnership, and source new opportunities.
•Inventory & Warehouses Development: Implemented flexible service process in W.H dept and managed capital budget for the installation of new fully automated machineries "Band-saw" to; increase the productivity & efficiency, decrease service cycle time, reduce manpower, enhance provided service quality and improve customer satisfaction. Improved deliveries reliability "On-time delivery" & reduced/streamlined inter-company product transfer cost & master the pre-orders distribution "pre-positioning" of products in every retail sales outlet
Key Achievements
•Empower Sales Staff by restructure the Sales Dept Hierarchy (Assign an Area Sales Supervisors) & Delegated them with needed authorities as per Preset Authority Matrix to decrease the lost sales opportunities, improve AlNafie Steel Competitiveness & enhancing the customer satisfaction. By considering the saudi market regression beginnings 2015, we successfully maintained the sales drop between 2018 & 2014 achievements less than 32% while improve the GP% by 4.28% over 2 years.
•Collect 63% of bad depts & transfer the balance to legal cases dept and avoid later any credit sales for non-trusted customers & maintain collecting 83% of due amount within due time which reflected on Days of Receivables to be less than 98 Days on the other hand improving days of payables to be later than 110 Days.
•Decrease the Inventory Turn-Over Ratio from 0.44 to 0.76 by improve sales forecast accuracy, introduce new vendors, reduce min orders quantities thru hard negotiations with the vendors & by introduce new vendors and increase purchasing frequency. Also decrease On-Hand Inventory from 37.6 Million (COGS) to 23.8 Million; thru apply active liquidation program based on AASS (Alternated Alloys/Sizes System).
•As we provide cut to size services; Along with AASS I had applied a restricted cutting policy which leads to reduce the remnant pieces by more than 65% within one year leads saving more than 650 KSR (70 Ton).
•Replace old cutting machines with 4 new full automated cutting machines at very competitive price (25% less than old prices) & cover cost of all machines within the 1st year from only 3 sales orders would never gained with the available manual machines, which also leads to reduce the consumption of cutting blades (consumables) more than 40%
ASL is a Steel Trading & Servicing company with annual sales revenue of > 1 Billion USD, having branches & sales-outlets across KSA, GCC & MENA Region; the biggest steel "stockiest & service provider" in the region with wide product range.
SSD is the key SBU achieving highest GP amongst all business divisions with annual sales revenue >135M SR where operations managed thru corporate H.Q in Jeddah.
Promoted after 7 months for challenge previously attempted & failed by predecessors to be SSD Director for multi-billion steel business (Attieh Steel Co Ltd) +2 years (Grew revenue +200%, EBITDA +165% & Avoid Losses in 2008 Crises).
Growth Path
Divisional Restructuring: Recruitment and building leadership teams, rejuvenating underperforming team, setting staff initiatives in right direction focused to results, rationalizing performance metrics, setting benchmarks
•Business Planning: Strategic approach to business, gathering market intelligence and setting short and long range business plan, directing product strategy and road map, advising sales and marketing operations, deciding on pricing with competitiveness and reasonable margin,
•Fiscal Management: Executing strategic action plans focused on improving financial performance & profitability, creation of revenue streams, optimizing costs, setting strategic “Dynamic” pricing policy to financial returns, preparing and administering budgets, tracking and controlling expenditures
•Performance Management: Monitoring/review/analysis of performances across all business operations in the procurement - production - sales - distribution cycle, driving improvements in performances to realize goals
Key Achievements
•Successfully grew sales-revenues & financial earnings; Grew within two years the sales revenue +200% , competed well-positioned enterprises specialized in SSP & doubled our market-share across KSA & GCC region to be ~ 20% to become one of the most recognizable names in the business filed. Controlled GP% decrease to be less than (3.7%) led to grow EBITDA +165%; even during 2008/2009 financial crises the SSD found to be the only division kept generating profits amongst all other operating divisions.
•Capitalize on growth opportunities for the whole region economies through:
•Expanded effective market penetration; built and developed integrated sales staff through practical training & motivational programs led to penetrate 360 New Clients (Manufacturers / Fabricators / Contractors).
•Developed & successfully launched 2 New Products that exactly meet customer's requirements/needs led to increase the earning by 15%.
•Established 2 Retail Sales Branches dedicated for SSP sales & 3 Regional Service Centers across KSA.
•Re-engineered SSP inventory program by segmenting the portfolio into 8 groups instead of 4 which; improved supply chain efficiency thru enhancing 34% the accuracy of sales-forecast & improving inventory turnover ratio 28% and aligned with the corporate financial plans thru growing sales revenues & enhancing cash flow.
•Collaborated with procurement dept & supported their efforts thru; source, communicate & evaluate new possible vendors and visiting these vendors "in-site" for prequalification which led to; successfully register 13 New Vendors, reduce COGS 11% and establish strategic partnership with 2 vendors
Managed a team of 11 direct reports (Managers) & 110 indirect-reports and directly reporting to the MD (owner). SSG comprise two companies; Shaaban Steel Co. (special steel stockiest & distributor) and Hadaeed Special Steel Factory Co. (manufacturer of special steels).
The group turnover is SR 45 Million, and supplies special steels for all industrial sectors across KSA & Bahrain. Handpicked to mastermind revival/rejuvenation of multi-million ailing steel segment business KSA (Shaaban Steel Group) & reversed losses to profits within 2nd year (Grow EBITDA 36%, EBIT 64% & Net Income 99%).
Organizational Transformation: Structure, management effectiveness, performance benchmarks, culture ownership/ innovation/best practices, customer-orientation, employee engagement
•Financial Turnaround: Improvement of net profits & cash-flow, enforcement of fiscal discipline, optimization of resources productivity, control of overhead and operational expenses
•Business Competency Building: Nurturing talents, performance improvement through coaching/mentoring/ training, infrastructure & logistics rebuilding, strengthening effectiveness of sales & production team, setting up inter-organization communication and reporting system, bringing in ERP system, enhancement of customer responsiveness and service delivery capability
•Supply Chain Management: Prospecting and building cost-effective and reliable product sources, entering into long term and exclusive partnership agreements, synergizing procurement & distribution logics, order fulfillment
Key Achievements
•Drove Sales Revenues Growth +45%, achieved (CAGR) +9.75% over 4 years & control GP% variation to be -2.78% thru; expanding effective market penetration (17% of revenues; generated from new clients), increasing market share, improving business with major accounts (28%); creating new sales channels, launching 3 new product lines which grows revenues +9%.
•Reversed losses to profits within 2nd year, improved profitability & simultaneously strengthened key financial metrics; increase Gross Income (EBITDA) 36%, increase Operational Income (EBIT) 64%, increase Net Income 99%, improved Return On Sales (ROS) 21%.
•Ensured Free-Cash-Flow performance thru improving Operating Cash Flow (OCF) 63%, controlling Days of Receivables to be less than 56-Days, improving days of payables to be later than 87-Days.
•Reduced production cost 11% thru; trimming variable-production cost 12%, Reducing indirect-production costs 6%, improving scrap rate 9%; reached an average 4.7% inventory cost reduction by retooling inventory planning, sourcing and supply.
•Saved 416, 000 SR in annual payroll thru; restructuring & upgrading the leadership team (Pump fresh blood to build top-performing team & generate momentum in business) & consolidating functional Dept's “Procurement, Finance, Delivery, HR & IT” for both entities into group HQ; reduced headcount 10%, eliminated 4 unnecessary senior positions & executed staff replacement plan “recruited 4 new managers”.
•Decrease employee turnover ratio (Employees left to claim better opportunities) for national “Saudi” employees from 27% to 6% & for expatiates "Non-Saudi" from 8% to 3%.
•Drove 165, 000 SR in annual savings thru reduce Cost of
SMU Operations Management: Raw Material planning, production scheduling, process re-engineering, manpower management, operational troubleshooting, performance management, inventory management, productivity and efficiency enhancement, maintenance coordination, target management
Key Achievements
•Operations Re-engineering: Led SMU team in identifying & correcting the wrong/futile steelmaking procedures; reduced and streamlined direct & indirect production cost, improve product gross margins, overhauled refractory's repairs procedures & decisions, resolved quality defects.
•New Process Implementation; Introduced latest scientifically approved modern steelmaking techniques and adapt solutions & actions gained from; strong metallurgical background continues learning & analytical observations.
•Enhanced steelmaking process effectiveness & revealing the following parameters/metrics:
•Enhance Gross Margin 13% from overall SMU operations thru decrease direct operational cost & improve the productivity & efficiency considering the following:
•Decrease the power consumption per Ton of liquid steel from 520 KWh to 430 KW.h .
•Decrease Tap-to-Tap time from 150~180 min to 120~130 min.
•Decrease on-power time 20% to be 100~110 min.
•Improve scrap-to-liquid steel yield ratio to be 89% instead of 78%.
•Improve daily SMU Productivity from 400 Ton to 500 Ton.
•Freeze Gross Margin deteriorate induced by continuous rising costs of EAF refractory's repairs:
•Double EAF refractory's lining life from 380 Heats to 680 heats.
•Decrease the cost of EAF lining repairs 20% by decrease the consumption of:
Gunning mix 28% to be 2.1 kg/ton of liquid steel & Ramming mass 13% to be 1.3 kg/ton of liquid steel.
•Corrected poor safety records and minimize all related compensation costs: Decrease No of injuries incidents per year from 21 to be 7 injuries; through implementing of management safety tours/audits “daily safety talks”, support ergonomic-risk assessment team, plant safety committee and emergency response team.
•Addressed and resolved quality issues within SMU: Implemented advanced/modern steelmaking procedure that improve quality & boosted efficiency levels; the new procedure (same used to decrease energy consumption), check lists & statistics reports led to decrease the number of returned heats to 3 heats/year (comparing to 28) & shrink defected Billets to 1.37% instead of 2.87%.