Why international groups use 3PLs for logistics support

Alan Morgan-George, CEO of Abu Dhabi National Hotels Compass Middle East, says that using logistics specialists can be a ‘win-win’ situation.

ADNH/Compass is the largest contract catering and support services organization in the UAE. We employ some 17,000 staff and service 450 valued clients in over 600 locations and produce over 1.5 million meals per week.

Our core values are Health and Safety, great food great service and great people. This is a competitive environment where our clients expect the best and for us to be innovative and provide good value.

As a company that makes its living from outsourcing we in turn do believe in outsourcing our core activities such as warehousing, logistics and distribution to the experts. In this case we have chosen Mohebi Logistics as our partner of choice and we are now into our 4th year of working together.

Transparency and openness in business dealings are key to the success of the project and we have successfully decoupled supply chain costs from that of the core food and non food products that we purchase. This has given us better control on quantities and quality, enabling us to remain very competitive.

Mohebi Logistics have invested heavily and wisely in state of the art warehousing, climate controlled vehicles and I.T. systems that are world class. They compare with best-in-class organizations in other mature markets such as Europe and North America.

Health and Safety, our number one priority, has benefited from the Mohebi Logistics set up as both organizations core values are similar. It is reassuring to know that our food is being stored and delivered to the highest international standards and this has challenged some existing suppliers to improve their procedures and raise their game.

Naturally as in all business dealings the working relationship between levels of management is very important. It takes time, patience, mutual understanding and what I always call a ‘win-win’ situation as a vision for success. Positively this has been achieved with ADNH/Compass and Mohebi Logistics. It has been further enhanced by flexibility and quick-to-market decision making.

Finally and importantly the success of a decoupled supply chain has to be measured in order to quantify its real value. So to conclude on a positive note, we have put in a set of KPIs and in-house measurements for the decoupled supply chain. These demonstrate real value created!