2011 was a difficult year for most local logistics firms.
1. Tom Nauwelaerts, managing director, Al Futtaim Logistics
From an economic perspective how would you rate your company’s performance in 2011?
We had a very good year to my amazement. We had a very challenging target and we performed above this. People are still consuming a lot of products − we see healthy consumption in the market and as such, we correlate with that. Overall I’m very happy with a good performance, especially in a volatile year.
What have been your major achievements throughout 2011?
What we managed to do was to work on our productivity further. We delivered more results with the same team. We refurbished a massive PDI centre (pre delivery inspection) and accessory fitting centre which enabled us to change our business model. From this, we were able to shift our focus from buying high end cars, to importing basic specification cars and upgrading them according to customer needs. It’s a big change in the supply chain and it gives us more flexibility to deliver as per specific customer requirements or specific marketing campaigns.
What were the main challenges for you to deal with in 2011?
The main challenges are always there. There is always a natural disaster to deal with, or a political crisis to deal with. In 2011, the earthquake and tsunami which occurred in Japan massively disrupted the inbound supply chain of cars and electronics into the UAE. This was a huge challenge where we went from adequate stock levels to a situation where there was not enough to supply customers. As a result, we had to implement all sorts of logistics tricks to get the product quicker into the country when it became available.
What plans do you have for 2012?
I think things will quiet down in terms of volatility for the supply chain. We are looking to regional expansion in countries such as such as Sri Lanka, India, and Africa, to develop our own logistics presence further. We are also looking at Oman and Qatar, and to a lesser extent Saudi Arabia.
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