Al-Futtaim Logistics, Al-Futtaim’s supply chain management solutions provider, has purchased 35 tractor heads and 60 customised container flatbeds, box-vans and taut-liner trailers, in a move to bring its transportation business in-house.

While the tractor heads were bought from Hino and Volvo, both Al-Futtaim Group companies, the customised trailers came from Munro International, a well established transport equipment provider.

Al-Futtaim Logistics estimates this move will enable the company to reduce operating costs by 15 per cent over the lifetime of the vehicles. Delivery of the vehicles started in March ’09.

“The current economic climate has helped us look at all aspects of our business and after a thorough review we felt there was a solid business case to move our transportation function in-house,' said 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 said.

Tom Nauwelaerts also said deteriorating service levels, increased prices from transportation subcontractors and substandard equipment that did not truly match the requirements were identified as the 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 utilization of the vehicles. Throughout history, the UAE and Dubai in particular, has been a central location on global trading routes. The major challenges for the logistics industry at the moment however, despite major transformations, are bringing professionalism to all players and facets of the sector,” added Tom.

Al-Futtaim Logistics offers a full range of supply chain solutions that include temperature controlled warehousing and distribution, road transportation, sea and airfreight forwarding to a blue chip clientele and currently has over 200 Volvo and Hino vehicles in its fleet.-TradeArabia News Service