• A look inside the expansive Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
    A look inside the expansive Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
  • Supplies are received at the Amazon fulfilment centre in DXB3, Dubai. They are physically inspected and given a safety check, a process that takes about five minutes. Pawan Singh / The National
    Supplies are received at the Amazon fulfilment centre in DXB3, Dubai. They are physically inspected and given a safety check, a process that takes about five minutes. Pawan Singh / The National
  • Staff scan and perform quality control checks on products received at the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
    Staff scan and perform quality control checks on products received at the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
  • After items are received at Amazon's facility, they are scanned and placed on to the Amazon system, then customers are able to order them instantly. Pawan Singh / The National
    After items are received at Amazon's facility, they are scanned and placed on to the Amazon system, then customers are able to order them instantly. Pawan Singh / The National
  • As part of Covid-19 safety measures, screens have been installed between stationary work spaces. Pawan Singh / The National
    As part of Covid-19 safety measures, screens have been installed between stationary work spaces. Pawan Singh / The National
  • Staff moving stock through the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
    Staff moving stock through the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
  • Geoffrey Khalil, the inbound operations manager, explaining how items are stowed away. Pawan Singh / The National
    Geoffrey Khalil, the inbound operations manager, explaining how items are stowed away. Pawan Singh / The National
  • An overview of the large distribution centre. Pawan Singh / The National
    An overview of the large distribution centre. Pawan Singh / The National
  • Crates travel down from upper levels on a spiral conveyor for delivery. Pawan Singh / The National
    Crates travel down from upper levels on a spiral conveyor for delivery. Pawan Singh / The National
  • A member of staff placing a crate of orders on the spiral conveyor. Pawan Singh / The National
    A member of staff placing a crate of orders on the spiral conveyor. Pawan Singh / The National
  • Batched orders are ready to move through the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
    Batched orders are ready to move through the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
  • Items move though Amazon's fulfilment centre on automatic conveyor belts. Pawan Singh / The National
    Items move though Amazon's fulfilment centre on automatic conveyor belts. Pawan Singh / The National
  • A completed order is boxed and sealed for delivery, but still does not have an address label - that comes at the Slam station. Pawan Singh / The National
    A completed order is boxed and sealed for delivery, but still does not have an address label - that comes at the Slam station. Pawan Singh / The National
  • Orders ready to be delivered to customers. Pawan Singh / The National
    Orders ready to be delivered to customers. Pawan Singh / The National
  • Covid-19 safety precautions have tables well spaced out in the staff canteen at the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
    Covid-19 safety precautions have tables well spaced out in the staff canteen at the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
  • An inside view of the floors of stock at the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
    An inside view of the floors of stock at the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National

Behind the scenes at Amazon: Inside the e-commerce giant's biggest fulfilment centre in the UAE


Farah Andrews
  • English
  • Arabic

It is likely that we have all ordered from Amazon at least once or twice. Since the US e-commerce site launched in the UAE in May 2019, with Amazon Prime coming a month later, it has become a convenient go-to, with next-day and same-day delivery.

But just how does an operation as giant as Amazon work? We took a look inside its largest fulfilment centre in the UAE, stocked with more than 4 million products, spread over 32,700 square metres with more than 650 staff members, to find out.

Modern Willy Wonka

Touring the DXB3 centre, in Dubai Logistics City, we felt like we had been shown behind the curtain of a top-secret space, with an almost Charlie and the Chocolate Factory-level of intrigue.

The well-oiled machine is as you'd expect – noisy, fast-paced and vast, but also incredibly slick. To the untrained eye, there does not seem to be an idle hand (or pair of feet) on the floor.

It is expansive, with seemingly endless shelving, branded boxes as far as the eye can see, and carousels spiralling crates down from upper levels of the centre to the ground floor.

Touring the Amazon fulfilment centre

In the US, Canada and at various sites in Europe, members of the public could take tours of Amazon's fulfilment centres, giving customers a chance to see what happens after they click "Buy Now", as well as working conditions within the spaces. However, these are on pause during the Covid-19 pandemic.

Prashant Saran, director of operations for Amazon Mena, does not rule this kind of transparency out for the Dubai fulfilment centres.

"Given Covid-19 right now, of course there are restrictions. We try to keep safety first, but that is definitely something we want to enable in this region," Saran told The National following our tour.

Prashant Saran, director of operations for Amazon Mena. Pawan Singh / The National
Prashant Saran, director of operations for Amazon Mena. Pawan Singh / The National

Process of an Amazon package 

We were given a detailed breakdown of the journey of a package by Geoffrey Khalil, the inbound operations manager. In a nutshell, everything coming into the fulfilment centre, and the people working with that inventory, fall under his remit.

You won't find a row of pet food, followed by a row of beauty products and children's toys – the fulfilment centre is not set-up like a library or supermarket

"Everything at the fulfilment centre is enabled by the wonderful people that work for us; they are some of the most customer-obsessed people on the planet," Saran explains. "And through technology, which is the secret sauce, it enables the whole process."

From the moment items are received at the centre and added to the site's inventory physically as well as virtually, they can be bought by customers.

The items are then stowed away on shelves. Interestingly, there is no strict system that dictates exactly where a product is stored. A system of barcodes guide staff to where products are found, but you won't find a row of pet food, followed by a row of beauty products and children's toys – it is not set up like a library or supermarket.

The Amazon term for collecting items for orders is "picking", the process during which staff members walk among the shelves and select items as indicated on their scanners. They shout "corner" before turning around bends as a health and safety precaution with or without a trolley; it's a call that becomes a soundtrack to the day.

Orders, or parts of orders, are batched in yellow crates, and then separated into complete orders, a process they call "rebinning". When a staff member is picking, they are not necessarily working on one single order or even whole orders – they're broken up by an AI system that assigns orders to be collected in the most time-efficient manner.

When orders are regrouped and ready to go to the customer, they are scanned and packed, but remain unlabelled.

Then comes the "slam" process. Slam is an acronym, which stands for Scan, Label, Apply and Manifest. The technology at this station scans the box and, based on the weight, immediately knows to print the correct shipping label on the box.

From there, the item leaves the building and is shipped off to the customer.

Covid-19 and Amazon 

It is no secret that Amazon as a whole has benefited from the Covid-19 pandemic. A time when people could not leave their houses made a company that would bring shopping to their doors – be it essential or luxury buys – almost indispensable. Its 2020 sales surged 38 per cent to $386.1 billion from a year earlier, according to figures released by the company in February.

Saran plays this down, saying that "the onset of the pandemic was a challenging time for all of us". However, he is clear that the company's primary focus was introducing safety measures that would allow them to continue to function.

Social distancing is mandatory at the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National
Social distancing is mandatory at the Amazon fulfilment centre in DXB3, Dubai. Pawan Singh / The National

"As we [at Amazon] started to come to terms with this new reality, we were absolutely clear that our topmost priority was safety. We had to make sure we put in place robust mechanisms, including technology innovations, process changes and training, to make sure that people are safe."

Walking around the centre there are clear processes. There is an AI camera system that sounds an alarm if people are walking within two metres of each other, tables in the lunchroom are amply spaced out and there are screens between the stationary workspaces, as well as mandatory face masks and hand sanitiser dispensers, which have been installed throughout the centre.

The company claims to have invested $11.5 billion on more than 150 processes related to Covid-19.

KEY%20DATES%20IN%20AMAZON'S%20HISTORY
%3Cp%3E%3Cstrong%3EJuly%205%2C%201994%3A%3C%2Fstrong%3E%20Jeff%20Bezos%20founds%20Cadabra%20Inc%2C%20which%20would%20later%20be%20renamed%20to%20Amazon.com%2C%20because%20his%20lawyer%20misheard%20the%20name%20as%20'cadaver'.%20In%20its%20earliest%20days%2C%20the%20bookstore%20operated%20out%20of%20a%20rented%20garage%20in%20Bellevue%2C%20Washington%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EJuly%2016%2C%201995%3A%3C%2Fstrong%3E%20Amazon%20formally%20opens%20as%20an%20online%20bookseller.%20%3Cem%3EFluid%20Concepts%20and%20Creative%20Analogies%3A%20Computer%20Models%20of%20the%20Fundamental%20Mechanisms%20of%20Thought%3C%2Fem%3E%20becomes%20the%20first%20item%20sold%20on%20Amazon%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E1997%3A%3C%2Fstrong%3E%20Amazon%20goes%20public%20at%20%2418%20a%20share%2C%20which%20has%20grown%20about%201%2C000%20per%20cent%20at%20present.%20Its%20highest%20closing%20price%20was%20%24197.85%20on%20June%2027%2C%202024%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E1998%3A%3C%2Fstrong%3E%20Amazon%20acquires%20IMDb%2C%20its%20first%20major%20acquisition.%20It%20also%20starts%20selling%20CDs%20and%20DVDs%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2000%3A%3C%2Fstrong%3E%20Amazon%20Marketplace%20opens%2C%20allowing%20people%20to%20sell%20items%20on%20the%20website%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2002%3A%3C%2Fstrong%3E%20Amazon%20forms%20what%20would%20become%20Amazon%20Web%20Services%2C%20opening%20the%20Amazon.com%20platform%20to%20all%20developers.%20The%20cloud%20unit%20would%20follow%20in%202006%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2003%3A%3C%2Fstrong%3E%20Amazon%20turns%20in%20an%20annual%20profit%20of%20%2475%20million%2C%20the%20first%20time%20it%20ended%20a%20year%20in%20the%20black%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2005%3A%3C%2Fstrong%3E%20Amazon%20Prime%20is%20introduced%2C%20its%20first-ever%20subscription%20service%20that%20offered%20US%20customers%20free%20two-day%20shipping%20for%20%2479%20a%20year%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2006%3A%3C%2Fstrong%3E%20Amazon%20Unbox%20is%20unveiled%2C%20the%20company's%20video%20service%20that%20would%20later%20morph%20into%20Amazon%20Instant%20Video%20and%2C%20ultimately%2C%20Amazon%20Video%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2007%3A%3C%2Fstrong%3E%20Amazon's%20first%20hardware%20product%2C%20the%20Kindle%20e-reader%2C%20is%20introduced%3B%20the%20Fire%20TV%20and%20Fire%20Phone%20would%20come%20in%202014.%20Grocery%20service%20Amazon%20Fresh%20is%20also%20started%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2009%3A%3C%2Fstrong%3E%20Amazon%20introduces%20Amazon%20Basics%2C%20its%20in-house%20label%20for%20a%20variety%20of%20products%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2010%3A%3C%2Fstrong%3E%20The%20foundations%20for%20Amazon%20Studios%20were%20laid.%20Its%20first%20original%20streaming%20content%20debuted%20in%202013%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2011%3A%3C%2Fstrong%3E%20The%20Amazon%20Appstore%20for%20Google's%20Android%20is%20launched.%20It%20is%20still%20unavailable%20on%20Apple's%20iOS%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2014%3A%3C%2Fstrong%3E%20The%20Amazon%20Echo%20is%20launched%2C%20a%20speaker%20that%20acts%20as%20a%20personal%20digital%20assistant%20powered%20by%20Alexa%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2017%3A%3C%2Fstrong%3E%20Amazon%20acquires%20Whole%20Foods%20for%20%2413.7%20billion%2C%20its%20biggest%20acquisition%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E2018%3A%3C%2Fstrong%3E%20Amazon's%20market%20cap%20briefly%20crosses%20the%20%241%20trillion%20mark%2C%20making%20it%2C%20at%20the%20time%2C%20only%20the%20third%20company%20to%20achieve%20that%20milestone%3C%2Fp%3E%0A
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Results

1.30pm Handicap (PA) Dh50,000 (Dirt) 1,400m

Winner Al Suhooj, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)

2pm Handicap (TB) 68,000 (D) 1,950m

Winner Miracle Maker, Xavier Ziani, Salem bin Ghadayer

2.30pm Maiden (TB) Dh60,000 (D) 1,600m

Winner Mazagran, Tadhg O’Shea, Satish Seemar

3pm Handicap (TB) Dh84,000 (D) 1,800m

Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer

3.30pm Handicap (TB) Dh76,000 (D) 1,400m

Winner Alla Mahlak, Adrie de Vries, Rashed Bouresly

4pm Maiden (TB) Dh60,000 (D) 1,200m

Winner Hurry Up, Royston Ffrench, Salem bin Ghadayer

4.30pm Handicap (TB) Dh68,000 (D) 1,200m

Pakistanis%20at%20the%20ILT20%20
%3Cp%3EThe%20new%20UAE%20league%20has%20been%20boosted%20this%20season%20by%20the%20arrival%20of%20five%20Pakistanis%2C%20who%20were%20not%20released%20to%20play%20last%20year.%20%0D%3Cbr%3E%0D%0D%0D%3Cbr%3E%3Cstrong%3EShaheen%20Afridi%20(Desert%20Vipers)%20%3C%2Fstrong%3E%0D%3Cbr%3ESet%20for%20at%20least%20four%20matches%2C%20having%20arrived%20from%20New%20Zealand%20where%20he%20captained%20Pakistan%20in%20a%20series%20loss.%20%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EShadab%20Khan%20(Desert%20Vipers)%20%3C%2Fstrong%3E%0D%3Cbr%3E%0DThe%20leg-spin%20bowling%20allrounder%20missed%20the%20tour%20of%20New%20Zealand%20after%20injuring%20an%20ankle%20when%20stepping%20on%20a%20ball.%20%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAzam%20Khan%20(Desert%20Vipers)%20%3C%2Fstrong%3E%0D%3Cbr%3EPowerhouse%20wicketkeeper%20played%20three%20games%20for%20Pakistan%20on%20tour%20in%20New%20Zealand.%20He%20was%20the%20first%20Pakistani%20recruited%20to%20the%20ILT20.%20%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMohammed%20Amir%20(Desert%20Vipers)%20%3C%2Fstrong%3E%0D%3Cbr%3EHas%20made%20himself%20unavailable%20for%20national%20duty%2C%20meaning%20he%20will%20be%20available%20for%20the%20entire%20ILT20%20campaign.%20%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EImad%20Wasim%20(Abu%20Dhabi%20Knight%20Riders)%20%3C%2Fstrong%3E%0D%3Cbr%3EThe%20left-handed%20allrounder%2C%2035%2C%20retired%20from%20international%20cricket%20in%20November%20and%20was%20subsequently%20recruited%20by%20the%20Knight%20Riders.%26nbsp%3B%3C%2Fp%3E%0A

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5