N°17 NEWSLETTER SEPTEMBER 2019

TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE

www.sjl-group.com SUMMARY

EDITORIAL LATEST NEWS ABOUT SJL GUEST OF THE MONTH SPOTLIGHT ON LOGISTICS LAB LOGISTICS AGENDA

2 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE Editorial

Dear partners,

From the genesis of a product’s design to its launch, through its logistics and maintenance management, an organization’s logistics chain has a major impact on the environment.

Today and more than ever, the Moroccan logistics community is called upon to further rally around this subject through a proactive, inclusive and consistent approach in order to align the logistics sector with ’s efforts in the field of .

The impact of from the logistics and transport sector in Morocco is one of the most harmful factors, threatening the sustainability of resources and the future of future generations.

In this context, the Moroccan Logistics Development Agency has initiated, in partnership with the General Confederation of Moroccan Enterprises, the creation of a pool from the Moroccan logistics community whose work has made it possible, among other measures, to establish a collective charter for more environmentally friendly logistics.

SJL was one of the first to adopt this charter in favor of Green Logistics and continues to actively support the work of this commission. Indeed, green logistics allows an organization to reduce its inventory, reduce the risk of product obsolescence, lower transaction costs, be more responsive to market changes and promptly reply to customer requests.

This is why our group is committed to supporting this process of integrating sustainable development into our partners’ logistics chains and is incorporating this concept of sustainability into its entire growth strategy.

I hope you find this newsletter instructive!

Mohamed DIDOUCH CEO

3 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE LATEST NEWS ABOUT SJL

SJL PARTNERS WITH THE TDART- AFRICA “SDA” PROJECT

SJL is participating in the SOLAR DECATHLON AFRICA event organized by IRESEN & US Energy Department. SDA is a competition, organized in Benguerir, Morocco, which has an undeniable “Green” nature. SOLAR DECATHLON AFRICA is a competition featuring 20 countries with some 30 members each. The objective of this event is to build a net-zero-energy house that meets 10 criteria of excellence.

SJL STRENGTHENS ITS FLEET

In order to achieve its growth objectives, SJL has strengthened its logistics fleet with the acquisition of 124 trailers and 80 tractors. This allows SJL to anticipate its customers’ needs, improve its flexibility and reduce delivery times. Through its commitments, SJL has once again consolidated its leading role in the sector.

SJL DRIVERS USING A NEW APP

Technology and innovation are a must to meet the sector’s challenges. In order to deliver the best service to its partners, SJL is implementing the Ontrack tool. Ontrack is a world class application installed on electronic tablets integrated across the entire SJL fleet. The purpose of this mobile application is to:

Reduce logistics costs. Increase customer satisfaction. Reduce CO2 emissions. Increase road safety for our drivers.

4 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE GUEST OF THE MONTH JON OYARZABAL Quality Director at SJL

• WHAT ARE SJL’S MAIN ENVIRONMENTAL CHALLENGES?

Environmental protection is one of the main challenges for road freight transport and especially for SJL. By adopting new types of fuels, the use of new logistics technologies and the significant improvement of aforementioned factors to name a few, we are increasingly protecting the environment. The European Union’s objective is to reduce polluting emissions by around 70% by 2050. The freight transport sector plays a very important role in addressing this challenge because, currently, it is one of the sectors with the highest rate of polluting emissions. That is why SJL faces the following key challenges: • Reducing emissions of polluting gases into the atmosphere (CO2). • Saving energy and water consumption. • Sorting the different types of waste generated in our facilities for proper treatment. • Complying with environmental legal requirements to avoid possible sanctions. • Evaluating energy efficiency systems, sustainable mobility, and promoting employees’ use of public transport.

• WHAT GREEN SUPPLY CHAIN SOLUTIONS HAS SJL PLANNED OR PLANS TO IMPLEMENT?

Replacing old trucks with more sustainable ones European environmental legislation is becoming increasingly stringent regarding pollutant exhaust emissions from engines. Fuel economy regulations to which all freight transport vehicles in Europe are subject are very effective. Euro 6, which has been in force since 2006, has reduced trucks’ consumption by 9.61% compared to the Euro 4 standard, which was introduced in 2005. 90% of SJL’s truck fleet complies with Euro 6.

Alternative fuels Manufacturers are currently working hard to create new, more efficient fuel models. Natural gas is the main type of for heavy goods vehicles and everything suggests that in the future it will continue to gain prominence before the implementation of more restrictive emission regulations. Natural gas is a fuel that helps achieve 50% savings in terms of cost of use, reduces CO2 emissions by more than 30% and completely eliminates the hazardous nitrous oxides and extremely harmful sulfur compounds. SJL currently has 26 CNG (compressed natural gas) trucks, and 16 LPG (liquefied petroleum gas) trucks.

5 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE GUEST OF THE MONTH JON OYARZABAL Quality Director at SJL

Choosing the most efficient mode of transport There is a proposal to make greater use of rail, which is currently a residual means of transport for the transport of goods, since the flexibility it provides makes it possible to dispatch a small package or a fully loaded truck.

Managing fleets appropriately Advanced fleet management systems identify the fastest routes and even optimize them to the point of anticipating delays or other unforeseen events on the route, suggesting alternatives to the drivers. They also record all the route data so that conclusions can be drawn, and improvements can be made on the basis of the errors made.

• WHAT WOULD BE THE IMPACT OF IMPLEMENTING THESE SOLUTIONS ON SJL’S BUSINESS AND ITS PARTNERS’ PERFORMANCE?

Efficient driving Training drivers in a variety of techniques that, together with an appropriate driver attitude, generate a driving style that achieves significant fuel savings and reduced emissions for the environment, not to mention improved safety.

Acquiring environmentally friendly machinery and equipment Diesel engines today are much cleaner than they were a few years ago. However, there is still room for improvement. Industry players and research teams around the world are working on various technologies to reduce truck emissions, consume less energy and better capture polluting gases. With these measures and several others, we will be able to reduce pollution levels and reduce the ecological footprint of road freight transport.

Circulation at full load As a result, nowadays, thanks to practices such as groupage, fewer trucks circulate and, obviously, the negative impact is much lower than if four trucks were circulating at a 25% load.

Reduced fuel consumption Vehicle, tire and accessory manufacturers are increasingly focusing on this issue. Trucks and heavy-goods vehicles use tires that reduce friction and are more aerodynamic, which can reduce fuel consumption by up to 10%.

6 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE GUEST OF THE MONTH JON OYARZABAL Quality Director at SJL

• WHAT IMPACT WOULD THE IMPLEMENTATION OF THESE SOLUTIONS HAVE ON SJL’S BUSINESS AND ON THE PERFORMANCE OF ITS PARTNERS?

• Commitment to the environment improves the company’s image with suppliers and customers, while motivating employees. • A competitive edge on the market. • Efficient control of resources, saving water, energy and other raw materials, improving the efficiency of production processes and reducing the amount of waste produced. • Prevention and mitigation of environmental risks. • Facilitation of compliance with current legislation and the company’s environmental policy. • Promotion of relations with local government, access to public assistance and subsidies. • Improvement of the quality of services provided and the efficiency in the development of its business through the definition and documentation of work procedures and guidelines.

7 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE SPOTLIGHT ON…

THE GREEN SUPPLY CHAIN: A COMPETITIVE EDGE

Long held back by the misconception that it is impossible to combine economic performance with environmental principles, the latest studies have revealed that the implementation of a Supply Chain that respects environmental fundamentals can provide a competitive advantage.

Indeed, the components of a green supply chain are the same as those of a traditional supply chain.

The reflection begins prior to production, during the product design phase. It must be designed by reducing the number of polluting substances and to the extent possible, using recyclable materials.

The «green» design of the product will then direct the producer to suppliers that can meet, throughout the production process, the environmental criteria set by the company (carbon emissions, energy efficiency, , etc.). In addition, traditional requirements in terms of quality, cost and timeliness remain unchanged. Distribution also needs to be reconsidered to reduce carbon emissions. Similarly, packaging is changing to reduce the amount of cardboard used to reduce costs and waste generated.

The key to the success of any sustainable green supply chain lies in how an organization can change the way it collaborates and works with its customers and suppliers.

The «life cycle analysis» approach requires a much greater degree of collaboration, transparency and integration of supply chain processes and systems than ever before.

The fundamental foundations of these new principles for collaboration are smart end-to-end supply chain management, with seamless communication with all stakeholders. It thus makes it possible to create, at a lower cost, a cross-cutting network of clean and sustainable transactions. Implementing a sustainable Supply Chain is therefore a real strategic choice, with a beneficial impact on the company’s financial performance over the long term. The main associated benefits are an improved brand image and lower operating costs.

Sources : • Green logistics: Concepts, state of play in Morocco and proposals for an approach to implementation among Moroccan manufacturers and logistics providers by Said Kammas, Professor-Researcher. • The green supply chain is becoming a priority. L’Express L’Entreprise. • Green Supply Chain Management» a new growth driver for companies.

8 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE LABO LOGISTIQUE

TOWARDS A GREEN SUPPLY CHAIN: THE ROLE OF TRUCK MAINTENANCE

If you wish to avoid mechanical problems and extend the useful life of vehicles, maintaining a fleet of heavy-duty trucks is strategic. Regular maintenance increases the profitability of the fleet and reduces the risk of unwanted vehicle downtime. For example, more stringent control of vehicle smoke opacity makes it possible to better detect excess particulate emissions, such as those caused by the fouling of particulate filters.

Embedded pollutant emission control systems allow for real-time scheduling of maintenance and planning in anticipation of a major anomaly. In addition, routine vehicle data collection is essential, including individual levels of carbon dioxide emissions and hydrocarbon ignition. This monitoring thus makes it possible to determine the long-term representation of the thermodynamic state of the engine, thus predicting a risk of major failure that could lead the vehicle to a complete shutdown.

In addition, simply training mechanics and heavy vehicle drivers to carry out a thorough preventive maintenance program allows the company to:

Increase the Reduce the Avoid unplanned Maximize service life of environmental impact downtime availability rate trucks in the logistics process

Through planning, monitoring and prevention, the company ultimately achieves enormous savings. It is therefore essential for any organization to develop comprehensive maintenance plans for all types of vehicles and equipment. These plans can be developed with the help of manufacturers, who adopt the best recommendations. In addition to the maintenance program, drivers must perform a daily check-up of their truck according to a clearly established routine. If minor repairs are necessary, they can be scheduled for the next day; if they are major, they must be fixed immediately. Drivers also play a fundamental role in the Green Supply Chain, particularly through their driving style. Through the responsible behavior of all Supply Chain players and drivers, environmental objectives can be easily achieved. In addition to the economic impact of a Green Supply Chain, the company will also benefit from an avant-garde image in terms of sustainable development and will build a greater sense of trust among all its partners.

Sources : • Ministry of Ecological Transition and Solidarity. French government website. • Verification and mechanical maintenance of heavy vehicles. Société Assurance Automobile Québec. • Heavy duty trucks: The secrets of a successful interview. Website: www.energir.com

9 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE LOGISTICS AGENDA

Eco-responsible transport and logistics The initiators of the Voluntary Commitments for are organizing the event the Environment (VCE) program first «Rendez-vous du transport et de la logistique September 19th in Paris éco-responsables» (Eco-responsible transport and logistics event) on September 19 in Paris at the Cité internationale universitaire. This event is intended for all companies involved in the supply chain and passenger transport «because past experience has proven the benefits of acting collectively in a dynamic sector», according to the organizers. Shippers, forwarders, wholesalers, carriers and local authorities are thus invited to share best practices.

Supply Chain Event 2019 The 8th edition of the Supply Chain Event, the major event for supply chain decision-makers, will be held 3rd and 4th December 2019 in Paris on 3 and 4 December 2019 in Hall 5.2 of the Parc des Expositions de la Porte de Versailles from 9am to 6pm. Around 100 exhibitors and more than 3,000 participants are expected.

10 SJL | TRANSPORT | LOGISTICS | FREIGHT FORWARDING | CUSTOMS BROKERAGE www.sjl-group.com