MCB celebrates 40 years, overcoming challenges with a resilient logistics transformation.
In 1984, Mineral Circles Bearings (MCB) began in Baghdad, founded by a closeknit family with a big dream. From the collective vision, this unassuming start blossomed into a legacy of unwavering resilience, technological prowess, and cutting-edge logistic infrastructures that celebrates progress.
Imagine the inception — a handful of dedicated family members of which Mr. Amar Ridha was the leader, nurturing the seeds of an exceptional venture. The days were marked by handwritten catalogues, sales orders, and meticulously crafted receipts in an era before digital transformation graced the industry.
From 1989 to 1996, MCB expanded its presence by establishing branches in the United Arab Emirates. A pivotal moment in Mineral Circles Bearings’ history unfolded in 1996 with the establishment of their Jebel Ali headquarters, a visionary initiative spearheaded by Co-Founder Mr. Safa Alwan. This transformative step birthed a revolutionary vision — an ambitious leap beyond local confines.
With becoming the go-to bearings supplier in the Middle East and African region as a drive, a momentous order from Japan ignited MCB’s journey into the international market, laying the foundation for their global outreach. This strategic shift underscores the need for enhanced logistics capabilities.
This transformation required upskilling and adapting to the complexities of global operations.
Amidst successes, MCB confronted growth challenges, managing a surge in special product requests. Expanding horizons prompted a shift to emailcentric procurement, reshaping networks, and pricing. A centralised structure rejuvenated purchase and logistics, redefining operations. Recognising traditional methods limitations for an industry giant, MCB embraced technological integration, partnering with industry leaders like NTN & SNR, SKF, ILJIN, SEDIS, MBS, DAYCO, MUSASHI, CORTECO, and FREUDENBERG, enhancing its logistics standing.
In 2004, the company implemented the ‘Facts’ ERP system, further streamlining their processes and enhancing their operational agility. These enabled efficient warehousing, logistics and dispatching operations and more precise data analytics, sales, purchase forecasting and customer behaviour.
Until 2008, MCB’s warehouse capacity stood at a modest 24,000 sq ft. However, defying the challenges posed by the global economic recession, MCB took a bold step to expand warehousing facilities to over triple the size, showcasing the company’s resilience and robustness in the face of adversity. This strategic move became a testament to MCB’s commitment to logistical excellence even during turbulent times.
Mineral Circles Bearings has triumphed over the historical evolution of SKU numbers, seamlessly managing the transition from 5,000 in the 90’s to an impressive 10,000 in the 2000’s, and around 30,000 today. Navigating the logistical challenges that accompany a higher SKU count, the company strategically implemented advanced Warehouse Management Systems (WMS). This successful shift in SKU numbers reflects the company’s adaptability to market trends, positioning itself competitively and consistently exceeding evolving consumer expectations.
In the past half-decade, a significant transformation has occurred in consumer buying habits, marked by a preference for a greater variety of Stock Keeping Units (SKUs) with reduced volume. This departure from traditional purchasing patterns directly impacts logistics processes, necessitating agile and adaptable supply chain strategies.
As a forward-thinking bearing company, MCB have adeptly navigated and successfully adapted to these evolving customer behaviours, ensuring resilience and relevance in a dynamic market landscape.
Moving into international markets means dealing with diverse geographies, varying infrastructures, and different regulatory landscapes. Each country has its own set of customs regulations and compliance requirements. Adapting to these diverse standards necessitates a robust understanding of international trade laws and customs procedures. MCB enhanced logistics capabilities navigate these complexities seamlessly.
Mr. Hassanein Alwan’s tenure marked a transformative phase for the company, propelling it to new heights. His visionary approach to integrating disparate divisions within the department, particularly purchase and logistics, ushered in a significant change. This strategic collaboration not only fostered greater stability but also significantly enhanced operational efficiency.
Realising the necessity for a more comprehensive approach, MCB took a significant step by adopting Oracle NetSuite software. This move catapulted them into a new era of unified and advanced management systems. With NetSuite, they streamlined their order management, enabling swift and precise processing of orders, overseeing shipments, and tracking deliveries. This capability became crucial in meeting customer needs promptly and accurately. The COVID-19 pandemic posed immense challenges to various industries globally. Many manufacturing facilities faced workforce shortages, operational restrictions, and social distancing measures, impacting production efficiency and capacity. Airfreight cancellations, reduced shipping capacities, and transportation constraints hindered the timely delivery of bearings to international customers, affecting overall logistics efficiency. However, MCB emerged resilient due to its robust logistics operations, enabling successful navigation through these tough times.
In 2023, MCB marked significant growth and sustainability achievements. The company revealed a newly expanded warehouse, now twice the size of its previous facility, showcasing its dedication to meeting industry demands and adopting responsible business practices. This enhancement allows the MCB warehouse to accommodate up to 12,000 pallets.
The new eco-friendly warehouse, equipped with thermal insulator panels, ensures efficient operations and energy conservation. MCB has embraced modern technology with high-efficiency pallet stackers, enhancing material handling.
To foster a connected work environment, MCB implemented a Wi-Fi 6 Mesh network. Streamlining operations, a unique barcoding system ensures precision in tracking consignments within the expansive warehouse. Safety remains paramount, with MCB maintaining zero accidents to date through safety measures. MCB is set to install solar panels, aligning with its commitment to a greener future and reducing environmental impact. These initiatives highlight MCB’s dedication to innovation, sustainability, and maintaining high standards.
The integration of a larger, eco-friendly warehouse, advanced technology, and a commitment to renewable energy positions MCB as a leader in the bearing industry, exemplifying responsible business practices.
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