Introduction: Dubai Logistics City is part of Dubai government’s development program, in 1967 construction began in deep-water harbour, initially planned for four berths, but after completion it was able to harbour 35 berths. Later, a second port was developed in southern part of the city, which has become a world’s largest man made port. Dubai Logistics City (DLC) is the world’s first truly integrated logistics platform with all transport modes, logistics and value added services, including light manufacturing and assembly, in a single customs bonded and Free Zone environment.
DLC is adjacent to what will eventually be the world’s largest airport, the DWC-Al Maktoum International Airport. Already the regional centre for re-export, retail, leisure, aviation, IT and banking, Dubai has more than 60% of the entire Middle East’s imports transiting its borders. With a logistics market growing in excess of 20% annually, Dubai is now driving even further growth through the creation of DLC.
This unique platform supports the emirate’s market leading position as a logistics hub for the wider Middle East and beyond – a market of more than two billion potential customers from South East Europe, the CIS, Indian Sub- Continent, Middle East and Africa. DLC will have the capacity to turnover 12 million tonnes of air cargo annually, in addition to having its own Staff Village set in landscaped surroundings with sports and leisure facilities, restaurants, shops and service centres…
After completion of aviation city it will be the first logistics platform in the world with all modes of transport, it has the area of 21. 5 km with 16 air cargos with 30,000 square kilometres each, and also includes140 square kilometre urban aviation community centre. http://www. dwc. ae/site/DWC_Elements_DWC_FreeZone_Dubai_Logistics_City. html Four industry heavyweights are taking space in Dubai Logistics City (DLC), the warehousing and office component of the Dubai World Central development.
Contracts were signed between HH Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Aviation Corporation, Dubai World Central, and Aramex, Danzas, Kuehne+Nagel and Panalpina. “These signings demonstrate the power of the Dubai Logistics City business proposition and that of Dubai as a worldclass hub,” said Sheikh Ahmed. “These are the fi rst of what will be a partner portfolio that will evolve into a virtual ‘who’s who’ of the industry. ” 1. Management structure and its functions: Management is the governance of supply chain functions.
Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfilment , logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. To varying degrees, the logistics function also includes customer service, sourcing and procurement, production planning and scheduling, packaging and assembly. Logistics management is part of all levels of planning and execution — strategic, operational and tactical.
It is an integrating function, which coordinates all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology. The following diagram and the points represent the structure and functions of management. * Initial function is to work for creating a world’s largest supply chain community * Planning according to global consequences * Identifying the global inventory requirements &setting a long term goals * Providing replenishment techniques in global standards Exposing the project status to the global originations and their business partners time to time * Structured to meet the needs of modern city ,and support their business unit partners * Aiming to deliver shareholder value and maintain its status as a world class companies [1. 1] Supply chain management: This is one of the most important function performed by every logistics company, hear the supply chain management plays a crucial role in the development of DLC. In brief the supply chain management can splinted as fallow Supply chain management Humanitarian management
Logistics Design They satisfy the Holistic needs of entire supply chain by providing integrated logistic platform instead of the traditional and more limited focus on their operators and transport providers * They concentrate more interims of market service levels and lead times and costs as the requirements of supply chain * They have the unique platform with great infrastructure which addresses the needs of different supply chain players * Integrators are also able to focus their operations according to the needs of supply chain management http://supplychainasia. om/news-articles/archive/281-forum-past-speakers/2056-proffitt-michael-mr-advisorconsultant-dubai-logistics-city. html Humanitarian management: When we want to go in-depth into the humanitarian side of management, the Humanitarian Management minor will interest us. The minor gives us great knowledge of the humanitarian aid work as it focuses on developing countries, dealing with conflicts and areas that are facing disasters. We can analyse the consequences of a crisis for the country itself, and also for the international community and our own business. 1. 2]Humanitarian management in (DLC) International Humanitarian City (IHC) is a global humanitarian and aid hub, which aims to facilitate aid and development efforts by providing local and international humanitarian actors with facilities and services specifically designed to meet their needs. An independent free zone authority created by the Government of Dubai through the merger of Dubai Aid City (DAC) and Dubai Humanitarian City (DHC), IHC consolidates Dubai as an essential link in the humanitarian value chain.
Leveraging the proven Dubai free zone model, IHC addresses the specific needs of the humanitarian aid and development community, while grouping them in a secure environment that fosters partnerships, social responsibility and global change. At the same time, IHC offers commercial companies the opportunity to operate from a highly strategic location in a free zone environment that is adapted to their particular industry, while benefiting from attractive incentives and an array of value-added services.
IHC believes that humanitarian operations will benefit from the integration of commercial suppliers of goods and services. By co-locating, non-profit and commercial entities will be encouraged to share best practices to increase their operational efficiencies and improve institutional learning. IHC is a non-religious, non-political and non-profit organisation, chaired by HRH Princess Haya Bint Al Hussein, Wife of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE, Ruler of Dubai. http://www. victoryventure. com/freezone/international_humanitarian_city. tml [1. 3]Logistics and Transportation Management: Logistics management is a relatively new occupational area that has emerged within The past two decades. Logistics links all the processes involved in a company, from Obtaining the raw materials through to delivering the finished goods to the customer. The function covers more than distribution – it has responsibility for the management Of the whole supply chain: a complex network that links together raw material Suppliers, manufacturers, transport providers (e. g. sea, air, road and rail), retailers And, increasingly, the end customer.
The logistics or supply chain manager or Director is responsible for the total operation. Coming to the logistics DLC is currently targeting * Logistics service providers * Airfreight shipments * Many modals (Multimodal) of transport needs * 3rd party logistics and contracts based on logistics service providers * Warehousing and distribution with multimodal transport requirements * Value added services * Distributing trading and manufacturing companies who need Warehousing and multimodal transport * Light manufacturing as part of the order fulfilment process.
Logistics and transport include: * Manufacturing – major roles include, installation of distribution facilities, creating * manufacturing, procurement and supply chain strategies, managing the production * process, managing the introduction of product, process and technology changes DLC serves every transport mode, logistics need and value-adding operation in the supply chain, including light manufacturing and assembly, all within a single-bonded free zone environment.
It is a transit hub linking continents and markets such as Asia, Europe and Africa by providing: * Air-air transport to connect even remote sources with core world markets * Sea-air transport to ensure on-time delivery within intercontinental supply chains and keep costs under control * The option to combine transit with customization, packaging or labelling of goods and other value-adding services http://www. logistics-skills. org/CLSC_full_report. pdf [1. 4]Product and Service Management:
Product (or service) management includes a wide range of management activities, ranging from the time that there’s a new idea for a product to eventually providing on-going support to customers who have purchased the new product. Every organization conducts product management, whether it’s done intentionally or unintentionally. * DLC is a free zone and have customs duties, no taxes, liberal visa policy, free capital transfer, 100% ownership, logistics know-how, quality labour at competitive cost and above all abundant space. The bridge that link DLC and Jebel Ali Port is Free Zone allowing for goods to move freely once they are offloaded from a ship or flight. * Foreign companies can setup free local ownership * 15 years guarantee of no taxation * Providing 200 plots which is 10,000 square meters dedicated for forwarders * Providing tri-modal logistics services * Customers can take advantage of increased quality and productivity and organizations which will set up facilities at DLC, will benefit from improved efficiencies and competitiveness
Dubai Logistics City supports the emirate’s market leading position as a logistics hub for the wider Middle East and beyond. It serves the growing needs of multinational companies involved in a range of different fields such as: * High-tech and electronics * Spare parts and after-sales * Healthcare and life sciences * Consumer goods and fashion * Relief aid and NGOs http://managementhelp. org/prod_mng/prod_mng. htm [1. 5]Inventory management: Inventory Management is the last and vital link in DLC supply chain. Everything they do – or don’t do – has an immediate effect on their customer.
That’s why it’s so important for DLC to get it right, whether they managing it them self or using a contractor. Aviation city is the answer for their inventory management; it has been designed to accommodate intense traffic. Set against the ambitious and visionary backdrop of Dubai World Central, it has: * Facilities, infrastructure, management and business environment in which technology-based initiatives will thrive * Conducive environment for world-class research, commercial implementation and business practice in the development of new technologies * Manufacturing and Associated Industries Maintenance, repair and Overhaul – MRO-centric companies shall enjoy state-of-the-art infrastructure, amenities and facilities with access to a regional maintenance hub with capabilities to conduct all types of checks for all types of aircraft. * Support services, Design and Consultancy – At the aviation hub for the region and the world, companies providing support, design and consultancy services can exploit the growth demands of the region and the knowledge-base of professionals from the worldwide aviation fraternity. Research and development training – with a mission to the premier resource and location that will facilitate world-class research, commercial implementation and business practices, Dubai Aviation City shall foster a community of professionals dedicated to significant technological breakthroughs in the industry. * Incubation and innovation – Dubai, with its expertise in nurturing successful growth centres like across different industries hosts an entrepreneurial centric working and living culture that will be vital for start-ups focusing on the aviation industry.
In addition to these, Dubai World Central Aviation City will house dedicated and exclusive executive jet and airline hangars and fully equipped aircraft maintenance hangars. Additional resources: * Abundant and inexpensive energy * Excellent IT/telecommunications infrastructure * Easy availability of skilled labour at competitive cost * Liberal Visa regulations And in final these are some of the advantages which DLC has; * state-of-the-art office buildings; * long leasehold land plots for dedicated industrial business’s; * trading companies; * distributors; * logistics service providers and forwarders; shared facilities, such as warehouses; * modern air-side cargo handling facilities; * E-customs for all shipments. * Air-air transport to connect even remote sources with core world markets. * Sea-air transport to ensure on-time delivery within intercontinental supply chains. * The option of combining transit with customization, packaging or labelling of goods and other value-adding services. http://www. dubaidirectory. org 2 nd question 2. In the light of above I recommend the operations strategy that prospective logistics providers (LSPs) have lot of advantages by adopting this project. The advantages are mentioned as fallow: They can understand warehousing and logistics requirements and specify market pressure before adopting strategic approach to make their supply chain sustainable * They can have complex computer aided warehousing and transport planning tools such as CAST,CLASS and paragon to create truly be spoken solution * They can utilise industry leading modelling tools to refine and test proposals * Customaries or build new facilities to meet customer satisfaction * They can operate and manage optimised transport orientations * They can re-engineer supply chains for greater efficiency * They can get strength and intelligence to handle door-to-door-to logistics requirements with confidence * They can access to large global network to pertness allows more flexible lead times * Empowered to improve services and drive down costs for their customers * They can implement cutting edge system solutions where these are appropriate to meet operational requirements * They can have direct access to Jebel Ali Port and JXB airport without having to leave the free zone. * have its own unique, dedicated, modern road system which will separate professional logistics from public traffic to ensure clients can provide a quality and speedy service to their customers * They can enjoy value adding logistics operations such as merge-in-transit, customization, postponement, packaging and labelling, final assembly
As DLC distribution hub for the greater region while reducing number of required warehouses and improving their customer service They can re-gain control of the distribution channel, e. g. by the introduction of direct sales They can deliver a business-friendly, free zone platform, offering state-of-the-art infrastructure and services operated by highly experienced logistics professionals. DLC is part of the Dubai World Central Free Zone. It delivers all the advantages of a Dubai free zone: No taxes: no corporate tax, no personal income tax, no customs duties within the area of DLC/JXB/DXB/Port/JAFZA 100% foreign company ownership, free capital transfers, access to 2 billion consumer market
Liberal Visa regulations and easy availability of skilled workforce DLC provides this free zone platform exclusively for logistics businesses to ensure the logistics community can optimally collaborate and will find sufficient space to expand in the future. http://www. skyscrapercity. com/showthread. php? t=219208 They can be the part of: * Companies with multi-modal transportation needs * Corporations seeking professional logistics environments and free trade facilities * Range of innovative, value-added logistics services * Businesses requiring speedy air freight, multi-modal transportation and complex logistics service Benefits * 100% ownership with no taxation and 100% repatriation of capital and profits * World’s first truly integrated logistics and multi-nodal transport platform with the favourable tax and regulatory advantages of a free zone * Any type of businesses possible Commercial independence and flexibility needed to deliver world-class logistics services for every kind of process and every kind of customer. The service providers, forwarders, integrators and airlines within the community provide a total package of professional logistics solutions to a wide range of industries like trading companies, light manufacturing and assembly businesses. Air cargo from the existing Dubai International Airport will be linked to DLC via bonded and professionally operated road and rail corridor.
This scheduled resource will operate round-the-clock, several times an hour, delivering cargo directly to the heart of the DLC business community. From the above: Their facility is a significant milestone that demonstrates our long-term strategy and continuous commitment to strengthen and expand our logistics infrastructure in the Middle East and North Africa to cater to the increasing demand for outsourcing logistics services across our core markets in the region,” “This timely launch of their Logistics Centre will further enhance the ability to deliver cost-effective and reliable logistics solutions for the regional and global clients, while providing them with greater capacity for their logistics needs. http://www. gowealthy. com/gowealthy/wcms/en/home/real-estate/uae/dubai/dubai-logistics-city/dubailogisticmore. html A total logistics solution Since DLC will be serving a wide cross-section of industry sectors and service providers, it will create a diverse and uniquely focused tenant mix such as * • leading global and regional manufacturers and trading companies; * • a broad spectrum of logistics service providers, including airlines, integrators with dedicated regional sorting centres, regional and global freight forwarders and third party logistics operations; and * • multi-national companies involved in high-tech, spare parts, healthcare and life sciences, consumer goods and related industries, relief aid and NGOs, as well as a wide range of value added services. * Since we have successfully managed to attract Smart City to Malta, I believe that there are other opportunities calling us to take the right decisions at the right time with the right people and with the cost and service model in place. * We have the right place, therefore I think it is time to have the right strategy and take the right decisions