Policies and Procedures

Logistics Department Policies and Procedures – A 360-Degree Approach

Ensuring Efficient, Compliant, and Cost-Effective Logistics Operations for Mega Construction Projects


1. Introduction

The Logistics Department at BEC Arabia follows a structured framework of policies and procedures to ensure:

  • Seamless material transportation and fleet management.

  • Cost-efficient workforce accommodation and mobility solutions.

  • Compliance with Saudi transport laws, customs regulations, and labor housing standards.

  • Minimization of logistics risks, project delays, and cost overruns.

  • Effective integration of digital tracking tools for real-time logistics monitoring.

A 360-degree logistics policy framework ensures that all logistics activities align with BEC Arabia’s operational standards, risk management protocols, and regulatory compliance requirements, ensuring efficient, cost-controlled, and legally compliant logistics operations.


2. Transportation & Fleet Management Policies

2.1 Fleet Utilization & Transport Scheduling

  • All logistics operations must be planned and scheduled to align with project timelines and material requirements.

  • GPS tracking and route optimization must be used to minimize fuel costs and travel time.

  • Transport schedules must be coordinated with Procurement and Site Management Teams to prevent material delays.

Key Deliverables:

  • Daily Fleet Utilization Reports & Transport Schedules

  • Logistics Cost Optimization Plans

Benchmark: Reduce fleet operating costs by 10% annually.


2.2 Driver Licensing & Road Safety Compliance

  • All drivers must have valid Saudi commercial driving licenses and undergo regular safety training.

  • Speed limits, rest periods, and traffic regulations must be strictly enforced to reduce accident risks.

  • Vehicles must be equipped with GPS monitoring systems to track compliance with driving policies.

Key Deliverables:

  • Driver Licensing Compliance Reports & Safety Training Logs

  • GPS Fleet Monitoring & Traffic Violation Logs

Benchmark: Maintain a 98% compliance rate with Saudi transport safety laws.


2.3 Heavy Equipment & Machinery Transport Policies

  • All heavy machinery (cranes, excavators, etc.) must be transported with permits and safety clearances.

  • Third-party contractors must meet equipment safety certification and insurance requirements.

  • Logistics teams must coordinate mobilization plans with the Engineering and Project Management Teams.

Key Deliverables:

  • Heavy Equipment Deployment & Transport Compliance Reports

  • Site-Specific Equipment Mobilization Plans

Benchmark: Reduce equipment mobilization downtime by 15%.


3. Warehouse & Material Handling Policies

3.1 Warehouse Storage & Inventory Distribution

  • All materials must be stored, handled, and transported following industry best practices.

  • Digital tracking must be implemented to monitor stock levels and reduce material wastage.

  • Storage capacity must be optimized to minimize inventory holding costs.

Key Deliverables:

  • Material Inventory Control Reports & Logistics Tracking Logs

  • Warehouse Utilization & Efficiency Improvement Plans

Benchmark: Optimize warehouse utilization efficiency by 15%.


3.2 Just-in-Time (JIT) Delivery Strategy

  • Construction materials must be delivered Just-in-Time (JIT) to minimize storage costs and prevent site congestion.

  • Delivery schedules must be aligned with project execution milestones.

  • Suppliers must adhere to strict delivery timeframes and performance KPIs.

Key Deliverables:

  • Material Delivery Coordination Plans & Supplier Performance Reports

  • JIT Logistics Risk Mitigation & Contingency Plans

Benchmark: Maintain 98% on-time material delivery performance.


4. Workforce Accommodation & Transportation Policies

4.1 Worker Housing & Camp Management Standards

  • Workforce accommodation must comply with Saudi labor housing laws and safety regulations.

  • Housing facilities must provide sufficient space, sanitation, ventilation, and fire safety measures.

  • Workforce transportation must be scheduled efficiently to reduce travel time and improve productivity.

Key Deliverables:

  • Worker Accommodation Compliance Reports & Health Inspections

  • Employee Transport & Travel Optimization Plans

Benchmark: Ensure 100% compliance with Saudi labor housing standards.


4.2 Employee Welfare & Camp Services Policies

  • Catering, medical support, and recreational facilities must be provided at worker accommodation sites.

  • Hygiene inspections must be conducted monthly to ensure health and safety standards are met.

  • Emergency response plans must be in place for fire, medical, and security incidents.

Key Deliverables:

  • Catering & Hygiene Compliance Reports

  • Emergency Response & Worker Welfare Audit Logs

Benchmark: Zero major health and safety violations in worker accommodations.


5. Customs Clearance & Regulatory Compliance Policies

5.1 Import & Export Documentation Compliance

  • All imported materials must comply with Saudi Customs clearance regulations and SASO standards.

  • Proper documentation (Bill of Lading, VAT compliance, Certificates of Origin) must be submitted for every shipment.

  • Logistics teams must work closely with Finance and Regulatory Authorities to prevent import delays.

Key Deliverables:

  • Customs Clearance Logs & Import Compliance Reports

  • VAT Documentation & Product Certification Records

Benchmark: Zero customs clearance delays due to documentation errors.


5.2 Etimad e-Procurement Compliance for Government Contracts

  • All logistics-related procurement transactions for government projects must be processed through Etimad.

  • Supplier contracts must be verified for financial compliance before shipment approval.

Key Deliverables:

  • Etimad Procurement Compliance Reports

  • Government Procurement Supplier Documentation Logs

Benchmark: 100% compliance with Etimad procurement regulations.


6. HSE (Health, Safety, and Environment) Compliance Policies

6.1 Logistics Safety & Risk Prevention

  • All logistics personnel must complete HSE training on accident prevention and emergency response.

  • Vehicles transporting hazardous materials must comply with environmental safety regulations.

  • Safety audits must be conducted monthly to assess logistics risks and mitigation strategies.

Key Deliverables:

  • HSE Compliance Reports & Safety Inspections

  • Emergency Response & Workplace Incident Logs

Benchmark: Zero major safety violations in logistics operations.


7. Digital Logistics Tracking & ERP Compliance Policies

7.1 Logistics Tracking & Digital Compliance Systems

Technology

Functionality

Application in Logistics

ERP System

Logistics Cost Control, Fleet & Warehouse Tracking

Ensures financial transparency and real-time logistics tracking

GPS Fleet Management

Vehicle Tracking, Route Optimization

Reduces logistics downtime and improves compliance with traffic laws

Aconex

Document Management & Regulatory Compliance Tracking

Ensures logistics approvals, customs documentation & safety records

Power BI Dashboards

Logistics Compliance & Performance Analytics

Provides real-time compliance tracking & risk assessment

Camp Management Software

Workforce Accommodation & Compliance Monitoring

Tracks housing allocation, safety, and worker living conditions

Benchmark: 100% of logistics and accommodation transactions must be digitally tracked and auditable.


8. Conclusion

The Logistics Department at BEC Arabia ensures:

  • Strict adherence to fleet management, warehouse handling, and transportation policies.

  • Full compliance with Saudi transport regulations, customs clearance laws, and worker housing standards.

  • Seamless material movement and logistics integration with ERP and digital tracking tools.

  • Implementation of cost-efficient logistics strategies to optimize resource utilization.

By embedding structured logistics policies and procedures, BEC Arabia ensures efficient, compliant, and cost-effective logistics operations, supporting successful project execution and workforce well-being.

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