30_SHD_May:ShD re-design 1/5/07 09:39 Page 30
■ Distribution Services
Continuous investment
The growing importance of the Asia Pacific region as the global and regional
manufacturing base for many companies has led to an increased demand for
experienced Third Party Logistics (3PL) service providers. In this article, we look at how
global shipping and logistics company GAC is tackling this burgeoning market.
“The growing economies in Asia are GAC’s warehouse and distribution centres
populous and companies face significant have gone beyond the traditional services
challenges in distribution and operational offered by most to include retail distribution
costs,” says Gurumurthi Shankar, GAC and value added services such as packing,
Regional Business Development Manager kitting, labelling and quality sampling/testing
for Third Party Logistics Services, Asia. – outlining GAC’s commitment to a complete
“GAC’s expertise and experience in seamless integrated service that adds value
managing such operations brings and overall cost savings to its customers.
efficiencies and overall cost cuts to our
clients. Investing in growing markets
“The growing retail sector is setting very In Asia, GAC started its 3PL arm in 1997 in
high service expectations in the region and Indonesia, by investing US$9 million to build
thus forcing the market to perform better, the largest and most modern state-of-the-art
which leads to more and more outsourcing facility in the country, serving top
opportunities,” continues Mr. Shankar. “GAC
is consciously targeting the developing
“The growing retail sector is
markets that have a need for infrastructure,
rather than mature economies where 3PL
setting very high service Gurumurthi Shankar
systems are advanced and little value can be
expectations in the region
division to the Philippines the following year,
added. Our extensive world-wide network,
and thus forcing the market
Sri Lanka in 2001, Pakistan and Malaysia in
integrated logistics services and state-or-the- 2002 and by mid 2007, US$6 million fully-
art warehouse and distribution centres
to perform better, which
fledged logistics facility in Thailand will be
throughout the region ideally positions GAC
leads to more and more
operational.
to handle 3PL services in-country, regionally
and globally,” he added.
outsourcing opportunities”
Strategically located in the Amata Nakorn
Industrial Estate, the facility occupies a land
GAC’s unique selling point is that it is able area of 10,000 sq m and offers more than
to sell itself as both integrator and logistics international brands in the consumer foods, 14,000 racking positions.
service provider. “We offer import, export, pharmaceuticals and electronic sectors. The Once completed, the distribution centre will
customs clearance, haulage to warehousing, GAC’s facility offers almost 18,000 pallet offer end-to-end supply chain management
inventory management, quality control testing positions, making it one of the largest and solutions including inbound logistics,
for sensitive products. We transport directly to most modern of its kind in the country. It also warehousing, retail distribution and value
stores, distribution centres or back to port or offers cross docking capabilities which allows added services such as packing, kitting,
airport. We can manage clients’ systems or retailers to streamline their supply chain, labelling and quality sampling/testing.
process sales orders and have our system reducing inventory and operating costs as well The distribution centre will boast an
interfaced with our clients’ systems,” says Mr. as increase economies of scale. efficient racking layout, enabling maximum
Shankar. Continuing to invest, GAC expanded the storage and fast throughput with the latest
The GAC Logistics Park in the Jebel Ali Free Zone.
material handling and
transportation equipment,
warehousing and inventory
tracking IT systems, as well
as special storage facilities for
climate controlled products. It
is also designed to allow for
future expansion in response
to customers’ demand.
“The decision to invest in
this multi-user facility follows
GAC’s successful
Continued on p.32...
30 ShD May 2007 www.PressOnShD.com
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