DLC to be strategic platform for transport services

DUBAI — Global logistics expenditure is slightly less than $4 trillion and accounts for a substantial part of total GDP. In the UAE most of the companies are spending 12 to 15 per cent of their revenues on logistics and supply chain management, according to a survey.

By Moushumi Das Chaudhury

Published: Fri 24 Feb 2006, 10:58 AM

Last updated: Sat 4 Apr 2015, 2:40 PM

To discuss and highlight the growth and requirement of the logistics and supply chain management industry , speakers discussed the various aspects of the logistics industry at the Dubai Global Supply Chain and Logistics Conference at Jumeirah Beach Hotel.

Abdul Rahman Ghanem Al Mutaiwee, director general of the DCCI , said: “The supply chain and logistics organisations in Dubai contribute 8 per cent to the emirate's GDP as Dubai attracts all business volumes compared to other known cities. Due to the importance of this business sector, Dubai started establishing the Dubai Logistics City (DLC) which will be operational by 2007 to become the first integrated logistics and multi-modal transport platform in the world for air, sea and road services.’’

He also added: “Dubai Logistics City can help companies to achieve major inventory efficiencies and boost customer service levels, and it is believed to meet the region's logistics demands until 2050 by dealing with more than 12 million tons of air-cargo a year through 10 cargo stations."

The main factors of the growth of logisitics and SCM industry in the UAE is attributed to the booming economy, affluent market as the economy is dependent on imported goods. Moreover, Dubai's strategic location has contributed to developing the re-export business and the supply chain and logistics services as the emirate succeeded in attracting a large number of international companies of this sector.

According to an official of DLC, “The DLC once completed will have its own unique, dedicated, modern road system which will separate professional logistics from public traffic . All DLC customers will have direct access to Jebel Ali Port and Jebel Ali Airport without having to leave the free zone. An ocean container can be transferred from the port's container terminal to the airport’s cargo terminal without customs clearance and without any delay. This will maximise the freedom to do business."

The supply chain management (SCM) is a process of planning, implementing and controlling the operations of the supply chain with the purpose of satisfying customers' requirements in a market where all organisations compete to provide high quality services.

Omar Hijazi, chief executive officer of Tejari, explained how E-procurement streamlines the SCM and how it saves money by online trading. He said: “Tejari launched the portal Tejari. Link to help connect people and their business partner. The concept behind Tejari Link is to really lower any barrier to entry for smaller to mid-sized companies that want to realise the benefits of online procurement."

He also added, The on-line market achieved 30 per cent growth last year and logistics helped in the growth of various business in Dubai. We are planning to build e-commerce in a major way and supply chain management is one of the key factors in this development.

The conference provided an interesting opportunity for companies dealing in logistics to know the best effective ways to improve the logistics services sector for the best benefits of these companies. The conference was held in cooperation with the Council of Supply Chain Management Professionals (CSCMP) and the Supply Chain and Logistics Group (SCLG) which operate under the umbrella of the DCCI, in the line of the Chamber's new strategy which aims at supporting the activities of all business sectors in Dubai.

The DCCI's director general pointed out that the success of this conference would help provide an additional support to Dubai's significant location and position as a world trade business centre as such it would help promote Dubai as an international centre for supply chain and logistics, mainly after the participants be introduced to the available facilities which the Dubai Logistics City (DLC) provides.