Following the news that Ford has broken ground on a new parts distribution centre (PDC) in the United Arab Emirates (UAE), the carmaker has revealed further details of the forthcoming operations there.
The 42,000 sq.m facility, which is located in the logistics district of Dubai World Central (DWC) economic zone, will commence operations in January 2025 and will provide consolidated storage and distribution, ensuring better availability of parts, optimising inventory management, and enhancing customer service, according to Ford.
Ford is leasing the PDC on a long-term contract with DB Schenker, which has contracted its construction with Atlantic Warehousing. However, Ford has invested in the storage, racking and shelving systems that will be used in the PDC. The carmaker currently plans to store 85,000+ stock keeping units (SKUs), process 3,500 outbound lines per day and 800,000 parts per month.
“This state-of-the-art distribution centre is a testament to our shared vision with DB Schenker of providing unparalleled service and value to our customers in the Middle East region,” said Nicolas Lory, Ford Customer Service Division director for the Middle East. “By leveraging cutting-edge technology and sustainable practices, we aim to set new standards in efficiency and environmental responsibility.”
The PDC will receive service parts from Ford’s global depots, including those in China, South Africa, Thailand, the UK and the US. It will also receive parts directly from global suppliers. From there Ford will ship to distributors in Gulf Cooperation Council (GCC) countries including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE. The PDC will also distribute parts to North and Sub-Saharan Africa and to some Asia Pacific markets, according to Lory.
Ford currently has 15 distributors across GCC and 39 dealers in the North and Sub-Saharan Africa, and Asia Pacific countries.
“Through unlocking efficiencies and streamlining operations, the new PDC won’t just ensure Ford Middle East can serve our customers better and more efficiently – it also sets us up to continue doing so following our recent and future growth, while demonstrating Ford’s commitment to the UAE and wider region,” said Ravi Ravichandran, president of Ford Middle East.
The Middle East as a whole is primarily an import-driven automotive market and as car ownership increases in the region, customer service demands are rising too, including fast and reliable vehicle delivery and aftermarket services.
Ford Middle East has launched a number of new models in the region recently, including the Ford Territory, Raptor and Expedition. It also plans to add a range of electric vehicles in 2024.
Ako Djaf, vice-president of contract logistics and supply chain management at DB Schenker Middle East and Africa, added: “By enabling faster and more reliable distribution of automotive spare parts, the new PDC will drive improved customer service and satisfaction while helping us strengthen the always-on relationship we strive to maintain with every Ford distributor and owner anywhere they are.”