The facility, adjacent to Al Maktoum International Airport, supports circular supply chains and will enable Panalpina to grow its logistics and freight forwarding business in the Middle East, Africa and CIS (MEAC) region. Three times bigger than the previous facility and with state-of-the-art infrastructure, it offers plenty of room to further grow with both existing and new customers.
Most of the operational space is used for inbound to manufacturing (I2M) and vendor managed inventory (VMI) services in support of Logistics Manufacturing Services (LMS) and also for outbound distribution services. There are separate areas for the break-down or build-up of air freight, for the safe intermediary storage of valuable goods, and for other special activities.
More and more companies want to configure and customize their products closer to market and then deliver them to the end customer as quickly and efficiently as possible. As part of a circular economy, Panalpina is also seeing increased demand for reverse logistics including diagnostics and ultimately repairs for their customers’ products.
“Our hub here in Dubai is designed to take advantage of the changing dynamics of supply chains. With the trend of distributed manufacturing close to point of consumption, the emphasis on sustainability, the Internet of Things and the makerspace movement, as well as technological advances such as additive manufacturing, we will see more logistics facilities like this one in the future, where we can add value to our customers’ supply chains,” said Mike Wilson, global head of Logistics and Manufacturing at Panalpina.
Currently, Panalpina mainly serves customers from the technology, oil and gas as well as consumer and retail sectors in Dubai. Important telecom and consumer electronics customers were smoothly moved right across the street from the previous 13,000 m² building to the new 40,800 m² facility when it was completed in October of 2016.