Exclusive interview: Walid Daniel, SPAN Group

With such a large number of material handling providers in the Middle East these days, it’s hard to remember a time when the market was served by only a handful of dedicated companies. However, for Walid Daniel, managing director of SPAN Group, those early days are fresh in his memory, providing a pleasant reminder of how his business has not only survived the numerous peaks and troughs of the past 20 years, but developed into a regional powerhouse along the way.

SPAN started its operations with humble beginnings in 1989 as a Dubai-based company that provided system shelving and pallet racking to customers in the United Arab Emirates. “Back then, the main activity was focused around the industrial areas of Aweer, Mussafah, Rashidiyah, Al Quoz and Sharjah. There were very few warehouses as we know them today and very few companies were using racking systems,” Daniel reminisces. “Although our start was modest, we had a primary objective from the beginning and that was to utilise our knowledge to benefit clients and provide them with solutions that made sense.”

Looking back at the late 1980s, around five companies were active in the local storage solutions market, of which only a couple are still around today, the most prominent being the SPAN Group. “Competitors have come and gone, which shows that companies require a lot of attention and effort to survive and adapt to changes,” Daniel smiles. “To be honest, it has been an interesting and challenging uphill journey. We have managed to develop our company by constantly improving and bringing storage solutions that made sense to customers, while maintaining quality and personalised services.”

The growth of the SPAN Group has been staggered over the years, starting with the import of racking solutions from Europe and North America, followed by the launch of a design and customer service unit that helps businesses to incorporate the most suitable warehouse layouts. In the early nineties, this portfolio was expanded to include light material handling equipment, dock levellers, packing equipment, carton sealing, strapping and stretch wrapping machines, while warehouse management systems and barcoding were also incorporated into a new IT division in the mid-nineties.

To support the diversity of these activities, SPAN Group also established a centre of excellent for warehouse design and operations, managed by a dedicated engineering and research division. “This was a focal point in our growth strategy, as we managed with the help of a professional engineering unit to work on large project designs for the most prestigious warehouses and distribution centres in the region,” states Daniel.

“This led to an increase in business volumes and gave us the knowledge base and opportunity to design and contract manufacture our own branded racking products, with added features and advantages specific to our local market. We further expanded by acquiring distribution rights for the full range of Jungheinrich trucks, in addition to the launch of our warehouse automation division, which provides solutions such as ASRS, sorters, conveyors, garment on hangers, carousels and shuttle systems.”

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FEATURED COMMENT Walid is one of my oldest friends in Dubai - I cherished his vision of building his business when LOGISTIC was not a big   1 Comments Read more comments »

At present, SPAN Group has around 250 employees and covers most countries in the GCC and wider Middle East region, with a head office in Dubai and supporting facilities in Qatar and Lebanon. Smaller offices are also operational in Abu Dhabi and Saudi Arabia, with plans to expand into Jordan and even further afield, following the launch of a recent joint venture in India.

“Growth and expansion come with a lot of planning effort and sacrifices,” states Daniel. “We learned a lot along the way to becoming a leading company in this field. To make a story very short, and not talk about the text book challenges that every company faces, the transition to a successful business is revenue and the main challenge to bringing this revenue lays in how a vendor treats its customers. In essence, the main challenge is to make your customers and vendors feel the true partnership spirit.”

The importance of such partnerships has been reinforced in recent years, with a growing number of competitors being established in the Middle East, together with an influx on international players also entering the local market. However, such developments have left Daniel unfazed, especially since he’s grown used to witnessing the rise and fall of numerous rivals. “At any given point in time there is competition. This is good because it keeps us alert, but most importantly, it provides an opportunity for customers to interact with multiple vendors and compare prices, knowledge, expertise and service levels,” he states.

“Over the years, I have experienced some companies entering the market and some companies exiting the market. Each entry and exit comes with its own challenges and lessons to be learned.”

If anything, the global recession has fuelled even more changes in the market, although SPAN Group has utilised its vast experience to implement a development strategy that focuses on the positives. “Every change in the market comes with opportunities. It is true that business volumes were somewhat affected in our main market in the GCC and we were faced early on, like all other companies, with the prospect of scaling down and letting some staff go. However, we have worked very hard on developing our people and they have become our biggest asset,” he admits.

“So, we re-organised our geography and our attention to smaller markets, such as Oman, Jordan, Lebanon, Syria, while also focusing on entering India and Africa. I am more than happy to now see the positive results of this re-organisation. Moving forward, we have plenty of other surprises in store for the market and the entire team is optimistic about our continued success in 2010.”

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