Feature | 128 days ago |

Ford Motor Company has set up a parts distribution center at Jebel Ali Free Zone. It is expected to increase service availability through its faster supply-chain, says Jessica Rasic.

Ford Motor Company has invested US$53 Million in its new Middle East Parts Distribution Centre (PDC) in Dubai, the first of its kind in the region. The unveiling of the 29,500 square meter depot was held last month allowing the facilitation of 50,000 individual parts, or six million pieces in total, with an estimated $43 million inventory value.

Ford’s new PDC, located in the Jebel Ali Free Zone, is the company’s largest single investment in the region, aiming to centralize the supply of Ford replacement and service parts in the Middle Eastern region. Due to the convenient availability of the parts, the time customers will wait for the parts to arrive at their service locations will be drastically reduced, with parts being delivered in as little as two days. The goods themselves will arrive bundled as sea and airfreight consignments from the central Ford warehouses in North America, Europe and Asia.

Ford’s new PDC will significantly reduce the time customers will have to wait for parts to arrive at their service locations, as approximately 92 percent of the parts needed will be immediately available in the region for vehicle service or repairs. With the new PDC, parts will now be delivered to dealers in as few as 2 days. With parts more readily available, the PDC will improve the lead time for special-order parts as well, reducing vehicle downtime for customers.

Hal Feder, Director of Ford Export & Growth (E&G), revealed that sales had increased 55 percent in 2011 alone. Feder also emphasized the fact that ‘Ford is the fastest growing car brand in the region’, competing against other brands such as Toyota and Nissan, which have generally been the strongest hosts in the Middle Eastern markets. Ford’s tangible statistics, however, only further indicate its growth, as the new facility will ship its parts to eleven countries throughout the Middle East and Gulf Regions, with its service extending to and soon throughout Sub-Saharan Africa in 2012.

“The world is getting smaller, and there is a niche specialization for the car market in the Dubai and Middle Eastern markets,” highlighted Jost Hellman, Managing Director at Hellman Worldwide Logistics. While the joint business enterprise of Rudolph & Hellman (RHA) sees Rudolph Logistics Group, Baunatal, storing and picking for the PDC, the responsibility for distributing the parts in the region is held by Hellman Worldwide Logistics. Hellmann Worldwide Logistics will operate Ford’s distribution center in Dubai, with the number of employees set to increase to up to 100 in the foreseeable future. Hellmann, one of the world’s leading logistics providers, has more than ten years of experience working in the Middle East alone and offers extensive expertise in automotive parts distribution.

When questioned about the benefits of initiating such a centre for distributing parts in the Middle East, Hellman quite simply stated that “nobody is patient when it comes to fixing their cars”. He reiterated that both Hellman Worldwide Logistics and Ford share the mutual beliefs on commitment to quality, innovative solutions and strong dealer support. It was additionally emphasized that a facility such as the Ford PDC allows the dealer to have a closer relationship to its customer. “Just to put it on record, JAFZA (Jebel Ali Free Zone Authority) helped” he elaborated, describing their management as “very flexible”. Madhav Kurup, CEO (Middle East) Hellman Worldwide Logistics, further added that JAFZA’s flexibility helped ease the regulatory processes involved in the United Arab Emirates (UAE), including sponsorship licenses and documents, also stressing the appreciation of the help regarding the health and safety of those in the company.

Founded in 1871, Hellmann Worldwide Logistics has established itself as one of the leading logistics service providers around the globe. Hellmann offers all the traditional forwarding services by road and rail mediums, along with air and sea freight. It also offers an extensive range of CEP services, supply chain management and specific solutions for industry branches and IT as well as recycling solutions, training and insurance services. Ford Motor Company, a global automotive industry leader, manufactures and distributes automobiles across six continents.