Annual Report 2020 En · Page 21

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National Industrial Development & Logistic Program
Annual Report 2020
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40   |   
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National Industrial Development & Logistic Program
Annual Report 2020
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Improving Supply Chains and Logistics
The basis of a robust successful supply chain is its ability to operate efficiently and continuously 
when crises unfold. The Pandemic has brought to the surface the fragility of the supply chain 
infrastructure in most countries, which requires proper planning and storage of quantities that 
can mitigate any supply delays or repackaging. Such challenges demonstrate the importance 
of the logistics and supply chains on which NIDLP operates. NIDLP’s Delivery Plan strives to 
improve the link between the Kingdom’s cities and industrial and mining regions, which will 
contribute to acting proactively when similar crises occur. The Delivery Plan also helps to en-
sure the continuity of production affected by the disruption of supply chains by adopting the 
Fourth Industrial Revolution technologies, such as activating and consolidating 3D printing 
technology for sensitive and important spare parts for national security, and creating a da-
tabase and digital designs for the high priority sectors in the Kingdom,  including the food, 
pharmaceutical and military sectors, taking into account all the risks and their mitigation plans 
such as increasing dependence on local suppliers and producers to elevate the GDP and un-
cover greater job opportunities.
Achieving Food Security
NIDLP seeks to reinforce food security by establishing a regional food hub to ensure that all 
food needs are met by local manufacturers, thereby increasing the competitiveness of the 
main locally produced foods such as meat, poultry, seafood, dates, and dairy products to cover 
75% of local demand for processed food products by 2025, up from 66% in 2019. Specialized 
food manufacturing clusters will be established, linking farmers, manufacturers, packaging 
plants, and retail companies in order to enable the local food processing sector to meet 85% 
of local demand for processed food products by 2030. By strengthening supply chains and es-
tablishing specialized industrial clusters, the Kingdom will increase the value of its food market 
to over SAR 255 billion by 2025.
Accelerating the adoption of the Fourth Industrial Revolution
The strength and resilience of the advanced economies around the world in the face of crises lies 
in their adoption of digital technologies. The COVID-19 pandemic has brought about a significant 
change in the priorities and strategies of the Fourth Industrial Revolution, specifically with regard 
to workforces and supply chains. NIDLP focuses on accelerating the Fourth Industrial Revolution 
in Saudi Arabia and the localization of technologies that reduce dependence on labor and exter-
nal companies in a wide range of activities, including surveillance and remote monitoring equip-
ment, autonomous vehicles, drones, vision systems for quality control, and augmented reality, 
thereby helping to ensure business continuity in all circumstances. NIDLP also works to support 
the innovation of advanced technologies and ensure that all its focus sectors benefit from artificial 
intelligence (AI) such as seaports, factories, mines, and smart electricity girds, in order to support 
improving operations and analytical capabilities across all the sectors to ensure that they can take 
proactive actions towards future crises. 
Enhancing Energy S