EXECUTIVE SUMMARY:
This report will analyze the Supply Chain and Logistics Industry in the United Arab Emirates during the last five years. The tools and techniques used for this analysis shall be PESTEL and PORTER’S 5 forces. Further this report shall discuss about the Industry type based on the competition existing in the market and its current phase in the Industry cycle.
This report shall be considering the Industrial study conducted by major players in the Supply Chain and Logistics Industry in UAE and Logistics Reports issued by various government departments and other Logistics companies existing in the market, to discuss the critical success factors and identify the strategic groups existing.
Industry Sector:
Supply Chain and
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The decline of global trade in 2009 led to a dip of 8% but picked up in the following years. The World Bank’s logistics performance index issued in 2010 rated Dubai as the best for its logistics infrastructure in Middle East.
Added, an increase in globalization has demanded for improved industrial efficiency. Other infrastructural developments such as the Al Maktoum Airport and Dubai Logistics City have provided a multi model logistics hub. Supply chain and Logistics industry in Dubai has contributed towards 14% of UAE’s GDP in the year 2012.
Further infrastructural developments in the future includes Khalifa port in Abu Dhabi, expansion of Port Khalid in Sharjah, extensive goods rail networks connecting the GCC countries and other Airport and Port expansions. This vigorous investment in the sector is essential due to same trend prevailing among other GCC countries. This would further improve the market size and continue growth in sector.
Socio-cultural:
Social factors do have a profound influence in the industry and the market. Industries have to evolve with the change in living standards and income level of the consumers. As per the World Bank specification, UAE is classified as a ‘High income and Mid-sized populated ' country. The local market has not grown to the required level compared to the other high income group economies, which attracts a substantial percent of expatriates to invest in the local market. High Standards of
With a high per capital income and very profitable enterprises, the UAE a prime trading destination in the Eastern market The UAE welcome foreign investors to enter their territory as they offer complete ownership of enterprises and no taxes
Globalization is a general term describing how different people, companies and governments come together usually initiated by international trade and investment and complemented by information technology. Currently, globalization is necessary in every country, whether it is already developed or developing, big or small. Since its inception in 1980, it has brought about technological advancements in the transport and communication sectors and opening up developing countries to international trade and investment. Every country, even the poorest are trying to take a chance in globalization by utilizing the world markets of manufactured products and services with their huge labor. Globalization mainly affects three main areas in a country: social, cultural and economic. UAE, which is one of the wealthiest member countries in the Middle East, has hugely benefited from globalization. Globalization has influenced UAE positively because it has increased the foreign investments, encouraged domestic investment and even stimulated free trade with other countries. UAE runs an autocratic government whereby one person possesses the power. They have a foreign policy that runs on the principle of non-interference in the internal matters of other countries and believes on peaceful resolutions in case of a dispute.
The ISOL + Group produces and sells a series of insulating products for the construction industry, sheathing for pipes, and rigid boards blanket insulation. The firm’s subsidiary has its own production plant and increases its own production capacity through buying from another of the Group’s plants those products it cannot manufacture due to technical reasons or in situations when it is operating at full capacity. The company’s production department is in charge of logistics in addition to other functions such as end-product distribution. The subsidiary, ISOL + FRANCE has initiated an extensive rethinking of logistics matters in the Group. This process was geared towards evaluating the situation
With all this exponential development comes the funds required to subsidize it. UAE possesses approximately 10% of the world’s petroleum and natural gas reserves. Which makes trading with UAE a necessity since the world uses around 85 million barrels of oil each day. Dubai utilizes an international airport for exporting but additionally uses the ports in the Persian Gulf. This is a potential hazard because hostilities within the gulf could eradicate the commerce exchange routes. Even with perilousness,
Lonsdale, C, (2013),”SP&SM Lectures Notes Week 1 to Week 10”, University of Birmingham Business School
26 Conclusion ............................................................................................................................................................. 28 Appendix 1 – 4PL Definition .......................................................................................................................................... 30 Appendix 2 – Main GCC Logistics Players...................................................................................................................... 36 Appendix 3 – Key GCC Logistics Hubs ........................................................................................................................... 54 Appendix 4: Map of the Arabian Gulf Countries (GCC) ................................................................................................. 55
The UAE has one of the most diversified economies in the region. Abu Dhabi holds 90% of the Federation’s hydrocarbon reserves. A down side of that is that now the UAE is dependent on the revenues Abu Dhabi can obtain from the reserves. On the other hand, the service industry in Dubai has been booming, as Dubai has the 7th largest port in the world and has become the largest business center in the region. Additionally, there seems to be political stability across the Federation, which increases the chances of people doing business. There have been reports of the lack of transparency of para-public entities and businesses, which is something
Starting from humble beginnings to the international powerhouse it is today, Emirates Airlines is one of the most recognizable in the world. This is a direct result of the growth of its operations from a regional airline service focused to encompassing an international component. The company’s global headquarters is located in Dubai. In regards to industry standards, Emirates is young being in operation for just 28 years. Since then, it has grown to service 138 destinations globally, servicing 39.4 million customers, with an employment size of 48,000 (Figure 1, Appendix) and annual sales of $19.9 billion. One of its most dominant regions on the globe at the moment is the Middle East where it is the largest airline flying internationally 2,500 times in a given week.
THIS DISSERTATION IS SUBMITTED IN PART FULFILMENT OF THE REQUIRMENTS FOR THE CILT DIPLOMA IN LOGISTICS AND SUPPLY CHAIN MANAGMENT
Education and labour skills are essential for a fully functioning logistics and supply management system. In Southern Africa there is a lack of education and skills within the logistics system, which means unskilled labour and less effectiveness and efficiency. Education is the single most important aspect in order for a country to achieve success and wealth, the more educated people are, the more people can make intelligent and effective decisions about the economy and the logistics and supply chain management functions. Southern Africa does not have a strong education system in comparison to the global market in which Southern Africa compete in, which limits its full potential that it has to be a functioning logistic powerhouse which
UAE is one of the largest ports in the world and has become the region's centre for trade, essentially by developing its location as a leading transhipment and re-export centre, based on a long-standing trading history and a generally pro-business stance.
In order to deal with the ever growing changes in competition in the market, the company must take into consideration the speed, efficiency, and other conditions in the operation of strategies, and in crossing these socio economic barriers management plays a really important role, in the deployment of strategic plan s and objectives to deal with each issue that rises from every and each one of these barriers, therefore the industry needs to pay attention to the vertical integrative relationship among upstream suppliers, midstream retailers, as well as downstream retail customers, the transformational process of the global industry, and the need of the logistics management system is gradually
In less than two decades National Logistics Management has already become one of the most successful and fast growing logistics companies of the USA. Despite increasing competition in logistics, NLM continues to adapt itself to the changing environment. Suffice to state just one fact: two years in a row ( in 2004 and 2005 respectively) - two reputable and well-known magazines- Inc. magazine and Start magazine recognized NLM as one of the most innovative and fast growing companies. Undoubtedly, the innovative strategy of providing cost-effective way to facilitate and expedite premium freight is behind the success of the company. However, will NLM be able to maintain and enhance its profitable business in the new era of increased competition
Saudi Arabia is considered to be UAE’s most important neighbor. It is the largest neighbor in terms of economy, geographical size and population. KSA’s gross domestic product (GDP) in 2007 was $ 376 billion while UAE’s GDP was $193 billion [1]. Both UAE and KSA are oil-producing countries, which implies that the exports and imports commodities are not crude oil. However, UAE imports refined petrochemicals and plastics, which are considered to be the downstream product of crude oil. Other commodities the UAE imports are steel, cement, fertilizers and foodstuff. On the other hand, UAE exports to Saudi Arabia are re-exports goods such as cars and electrical commodities. In fact, UAE is the third most important re-export
In developed countries the portion of revenues from logistics sector is about 13-14%, while in Kazakhstan the number is only 8%. The number can be much higher since our country lies in the heart of Eurasia and many trade roads are passing through Kazakhstan. This opportunity can be used for generating wealth for the country and getting more trade partners. The development of logistics will also cut the costs of the production of domestic producers which will lead the Republic to the new stage of competitiveness in the world market.