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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