| |
|
|
Al-Futtaim Logistics has announced plans to cancel its third party contracts for domestic transportation to reduce its operating costs by approximately 15%.
To support the company’s shift towards in-house fleet operations, it has placed an order for 35 tractor heads from Hino and Volvo, in addition to 60 customised container flatbeds, box-vans and taut-liner trailers from Munro International.
“The current economic climate has helped us look at all aspects of our business and after a detailed review, we felt there was a solid business case to move our transportation function in-house,” stated Tom Nauwelaerts, head of logistics at Al-Futtaim.
“Clearly, the numbers added up. We just knew that it would be better for our customers and thus better for us,” he added.
According to Nauwelaerts, deteriorating service levels, substandard equipment and increased prices from local subcontractors were identified as key drivers for the decision to bring the transportation function in-house.
“This move has enabled us to become extremely competitive by combining day time transportation with night time operations, thereby ensuring maximum utilisation of the
vehicles,” he explained.
“Throughout history, the UAE has been a central location on global trading routes. The major challenge for the logistics sector at the moment, however, is bringing professionalism to all facets of the industry.”
Should Al-Futtaim Logistics be included in a top 10 list of logistics companies in the Middle East? Click here to provide your thoughts!
 |
Site Map
 |
 |
 |
 |
|  |
| Articles | |
| Companies | |
 |
FEATURED COMMENT
Al Futtaim Logistics is the best which provides high service level to it's customer and exceeds the customer expectation