Policies and Procedures

Logistics Department Policies and Procedures – A 360-Degree Approach

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

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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.

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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.

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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.

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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%.

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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%.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.