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A major transport and fleet operator in Dubai has completed the purchase of 35 tractor heads from Hino and Volvo, as well as 60 customised container flatbeds, box-vans and taut-liner trailers in a bid to bring its entire fleet operations in house.
Al-Futtaim Logistics estimates this move will enable the company to reduce operating costs by 15% over the lifetime of the vehicles. Delivery of the vehicles started in March this year.
Tom Nauwelaerts, head of logistics at Al-Futtaim said: “The current economic climate has helped us look at all aspects of our business and after a thorough review we felt there was a solid business case to move our transportation function in-house.
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He also said that deteriorating service levels, increased prices from transportation subcontractors and substandard equipment that did not match the requirements were identified as the key drivers for the decision to bring transport in-house.
The group offers a range of supply chain solutions including road transportation, sea and airfreight forwarding. It currently has over 200 Volvo and Hino vehicles in its fleet. Both brands are supplied by the parent Al Futtaim group.
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