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 survey was conducted amongst a representative mix of retail and business-to-business organizations, including GAC Logistics' diverse customer base in Dubai. 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 minimize inventory level throughout the supply chain.
Companies also recognise that outsourcing frees up important resource, enabling them to focus more closely on its core competencies. 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.
"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," said Manager for Strategy and Development, Logistics Services for GAC Dubai, Damien O'Donoghue, who coordinated the project. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
