GAC
research shows Dubai companies believe outsourcing logistics operations
improves efficiency and productivity
Posted: 25 April 2004
Companies in Dubai, including those that manage their logistics
in-house, generally acknowledge that there are major benefits in
outsourcing these operations, according to a recent market research
by the GAC Group.
The in-depth qualitative survey was conducted amongst a representative
mix of retail and business-to-business organisations, including
GAC Logistics’ diverse customer base in Dubai.
Third-party logistics a viable option
One of the key findings reveals that these companies consider third-party
logistics (3PL) services a feasible option and a critical component
of the overall corporate strategy. The results demonstrate a clear
understanding amongst businesses that 3PL helps reduce the time
in getting goods to market, shorten inbound and outbound lead times
as well as minimise inventory level throughout the supply chain.
As efficient 3PL services offer more accurate and retrievable inventory
information, respondents believe that outsourcing their logistics
operations to specialists can result in higher customer service
level and customer retention rate.
Companies also recognise that outsourcing frees up important resource,
enabling them to focus more closely on its core competencies.
Leveraging 3PL to expand
Several of GAC Logistics’ clients surveyed see the use of
3PL services as playing a pivotal role in helping them extend their
reach beyond the Middle East, and supporting their operations in
emerging markets.
These customers further state that collaborating with a 3PL specialist
will bring about opportunities to improve various aspects of supply
chain performance over the next five years. Areas identified include:
improvement in customer service, increase in inventory turn without
additional capital employed and customisation of inventories.
Positive outlook
The survey findings are encouraging for GAC Logistics and for the
industry on the whole, said Damien O’Donoghue, Manager for
Strategy and Development, Logistics Services, GAC Dubai, who coordinated
the project.
“The results provide valuable insight into what businesses
in this region expect from 3PL service providers in the medium term,
and give us strategic indications for the future direction and development
in the industry,” Mr O’Donoghue adds.
“And the good news is that the market is well aware of the
advantages in using 3PL services. It is clear that there are tremendous
opportunities for the logistics industry to convert that awareness
into business as we continue to raise the bar to meet the growing
demands of businesses in the Middle East.”
The market research is conducted as part of the international shipping
and logistics services provider’s ongoing initiatives to monitor
market trends and better understand client needs.
About the GAC Group
The GAC Group (GAC) is the world’s largest independent shipping,
logistics and marine services provider, with over 200 offices worldwide.
Estabished in 1956, GAC’s core business covers three key
areas – shipping, logistics and marine services. The GAC brand
reflects value for money, quality, continuity, innovation and global
reach.
GAC employs more than 5,000 people worldwide. The GAC Group corporate
head office is in Dubai, in the United Arab Emirates.
About GAC Logistics
GAC Logistics specialises in a full range of supply chain and logistics
solutions. These include air and sea freight, warehousing and distribution,
road transportation, project logistics, global marine logistics,
and international moving and courier services.
GAC Logistics operates an integrated worldwide network, serving
international manufacturers, distributors and retailers from the
fast moving consumer goods (FMCG), textiles, pharmaceutical, automotive,
electronics, entertainment, as well as oil and gas industries.
For more information see www.gacworld.com
Posted by Richard Price,
Editor Pipeline Magazine
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