IKEA gets its foot in the Middle East door
In an attempt to expand its retail operations in the Middle East, IKEA is building a regional distribution center in Dubai, which is due to be finished in September, 2015. As a result, IKEA has become part of the Dubai World Central (DWC) – one of the most extensive logistics projects in the Dubai region. The new IKEA distribution center will be able to handle 50,000 twenty-foot equivalent containers annually, which will increase to 70,000 within three years.
DWC provides IKEA with a multimodal platform with a highly integrated sea, road and air network. It is the only place in the world where products can be transported from sea to land to air in under one hour.
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Volvo strikes a deal with DHL
DHL Supply Chain has signed a five-year contract with Volvo Cars to deliver its aftermarket parts to more than 120 dealers in the UK. According to the deal, DHL will also be managing the warehousing of Volvo parts.
To fulfill the agreement, DHL will utilize its fuel-efficient vehicles, 35 of which are equipped with forward facing cameras, full closure tail lifts, double deck trailers, and Microlise vehicle tracking systems. Deliveries will be made during the night via DHL’s Auto Alliance collaborative platform, which consists of cross-docking facilities across the UK. During the daytime, DHL will use its same day service to make the deliveries to all the Volvo Cars dealers in the UK.
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Is Coca-Cola shrinking?
According to third-quarter results, Coca-Cola’s profit has shrunk by 14%. Disappointing figures urged the world’s biggest beverage maker to announce a $3 billion cost cut, which will be implemented by 2019. One of the ways Coca-Cola is going to reach this target is by restructuring its global supply chain. The company is planning to refranchise two-thirds of its North American bottling territories until 2017, and another significant share of the remaining territories by no later than 2020. This will help Coca-Cola move away from the capital intensive and low-margin business of distribution.
To read the full story, click here.
Have a nice weekend!