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Supply Chain Case Study: NMC Trading

by Ahmad Lala on Dec 20, 2012




NMC Trading, fully owned subsidiary of NMC Healthcare, unveiled its new expanded logistics centre at the Dubai Investments Park last month. Logistics Middle East asked Binay Shetty, CEO at NMC Healthcare, to tell us about the firm’s logistics operations.

“As one of the largest distribution companies in the UAE, with a diverse portfolio comprising Fast Moving Consumer Goods, pharmaceuticals, scientific and medical equipment, food and personal care products, veterinary and educational products; NMC Trading performs the mission critical logistics functions for all its customers,” says Shetty.

“With more than 65,000 Stock Keeping Units (SKUs) brought in from over 500 companies from around the world, NMC Trading manages the storage and distribution of these products using its infrastructure of warehouses and its fleet of trucks and vans across the UAE. These products reach more than 5150 outlets including hospitals, pharmacies, clinics, hypermarkets, supermarkets, groceries, retailers, schools and animal care institutions that serve as our customers."

Facilities

The logistics infrastructure of NMC Trading includes warehouses, delivery trucks and vans, and the processes, systems and technologies that allow us to manage inventories and maintain delivery schedules across hundreds of suppliers and thousands of customers. Our warehouses are segmented allowing efficient storage and distribution of different types of products which require varying temperature control and storage requirements. We have over 500,000 sq ft of warehouse space across six warehouses in Ajman, Dubai Investments Park, Dubai Industrial City and Al Quoz, in Dubai, Abu Dhabi and Al Ain. Our warehouses offer the latest storage technologies such as chillers, freezers, and also the first electronically operated mobile stacker unit of its kind in the United Arab Emirates.

Sourced products

NMC Trading sources a wide range of products across its multiple divisions from Germany, USA, UK, France, Switzerland, Austria, Sri Lanka, Australia, Belgium, India and more than two dozen other countries around the world. The top brands in our portfolio include Nivea, Pfizer, 3M, Siemens, Himalaya, Sara Lee, Americana, Kiwi, Frooti, Rasna, Sanofi Pasteur and several others.

Distribution

The bulk of the products we distribute are imported into the country. The goods typically arrive by air or sea. Our trucks pick up the goods from the airports and ports and move them to our feeder warehouses.Our fleet of more than 180 trucks and vans ensure the timely delivery of products across the length and breadth of the country.

Challenges

Unlike most logistics companies that deal with a single line of products, NMC Trading’s multi segmented product lines increase the complexity of operations. Each segment follows a specified regulatory procedure in terms of imports, storage, and distribution requirements of the products. The ability of NMC Trading to meet these complex challenges has evolved over three decades of experience in managing a wide assortment of products and following stringent storage and distribution practices. Just to give an example of the kind of challenges we are talking about, consider one of our warehouses which has to house frozen meats at negative 18 degrees Celsius, peas at 2 to 8 degrees Celsius and pharmaceuticals at room temperature. Now add the complexity of storing wheelchairs, stretchers, electronic equipment and reagents used in school laboratories.

Volumes

NMC Trading distributes over Dh80 million worth of goods each month on average. The products which are stored at the NMC warehouses are transferred by a fleet of NMC owned and operated 1-tonne, 3-tonne and 5-tonne trucks and vans to our respective customers.

Efficiency

There are numerous advantages NMC Trading enjoys because of our extensive logistics infrastructure. We get improved distribution efficiency, expanded and flexible storage capacity and an ability to handle a complex range of products. These things set us apart from the competition and make us unique in this business. Some of the other positives are: our own transhipment centre; location intensive; expanded and flexible warehousing capacity; reduced inventory holding time and a flexible distribution pattern.
 


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