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AIT Worldwide Logistics Partners with Aramex
AIT Worldwide Logistics has entered into a partnership agreement with Aramex International in the Middle East.
Aramex, a Jordanian-based company, will be AIT's primary international partner in the following Middle Eastern countries:
Jordan, Bahrain, Kuwait, United Arab Emirates, Saudi Arabia, Qatar, Oman, Lebanon, Egypt, Libya, Morocco and Algeria.
To learn more about Aramex, please visit their website: www.aramex.com.
Passport to Partnership with Aramex
Christine Nicholson, corporate public relations coordinator for AIT, recently conducted a Q and A with Safwan Tannir, Chief Freight Officer of Aramex.
Nicholson: Global supply chain management is a rapidly changing environment. What risks/challenges are associated, and how do your global partnerships assist in managing and mitigating these risks?
Tannir: The challenging global environment has directly impacted the supply chain industry, and key players across the manufacturing, distribution and sales sectors are looking for cost-effective ways to reach their end markets. Consequently, we are bound to witness a significant change in global trade routes, including a greater role for logistics hubs such as Singapore and Dubai. Unlike earlier times, Europe will no longer be the sole distribution hub, as Singapore and Dubai are now poised to effectively serve all the emerging markets such as the Middle East, Africa and Central Asia.
As an asset-light company, Aramex has been able to develop a unique global network through two key partnership systems: "Global Distribution Alliance (GDA)," which serves our express product to perfection; and the "World Freight Alliance (WFA)." This business model of collaboration and/or alliance has helped Aramex be more effective in its global reach and more resilient in the face of challenges resulting from the recent economic crisis.
Nicholson: Describe the concept of "globalization" in the ever more dynamic world of logistics. How has it transformed in recent years? What are some of the notable trends you have observed in your particular region of the marketplace?
Tannir: Globalization, especially in our business, is a must. The era of arguing about its feasibility has ended. In our industry in particular, technology has transformed the business positively and irrevocably. Thus, technology has become the key enabler for globalization.
Today, Aramex provides integrated transportation and logistics solutions to over 50,000 companies worldwide, serving all major business segments. With such immense reach, our ability to offer integrated solutions from domestic express to 3PL is important to our global operations.
Nicholson: How does your company remain competitive in the ever-increasing aggressive and cut-throat nature of the global marketplace?
Tannir: We have seen that our asset-light business model has been central to our successful track record. It has helped us remain flexible, agile and quick to capitalize on opportunities and highly efficient in servicing our customers and adjusting to changing market scenarios. As a result, Aramex has continued to be profitable and in a much stronger cash position relative to many other operators in the industry. It is worth mentioning here that we have just reported 24% increase in our net profits in the first nine months of 2009 despite a decline in our revenues compared to last year's.
We are hard at work devising better ways to communicate with our customers, creating more adaptable supply chain solutions and being creative in our customer care.
In addition to operational areas, we have also been selective about our expansion plans focusing on key emerging markets in the Middle East, Africa and South Asia regions.
Last but not least, the fact that we offer multi-product solutions to our customer base has given us tremendous flexibility and a strategic competitive edge in all core markets.
Nicholson: What logistics best practices can be used in order to effectively react and respond to varying customer demands as dictated by different markets/economies?
Tannir: We believe that innovation is required at every stage to adjust to the needs of customers. This can apply to day-to-day operations as well as to product development. For instance, Aramex recently launched "Value Express," an economical solution for shipping express shipments within the Middle East, North Africa and South Asia region. It was developed to support the region's commercial sector in achieving greater cost efficiencies in the current economic climate.
Likewise, with the retail industry being quite significant in the Middle East, region, for example, we support clients with customized services including warehouse management, distribution, management of supply chains, Customs brokerage, inventory management and other value-added services as well.
Aramex has geared up to divert much traffic to ocean cargo and/or land freight to meet reduced volumes and changing customer requirements. Aramex is flexible enough to switch to any freight mode that the markets need be it air, ocean, land or multi-model freight.
Nicholson: In your opinion, what is the best way to identify foreign market opportunities?
Tannir: Markets that show promising opportunities for business growth and where we can obtain good margins are important to us. As a global logistics solutions provider focusing on emerging markets, we keep exploring the growth potential in both underdeveloped and developing markets such as those in Africa, Southeast and Central Asia. We have a growing focus on China and India as well.
Furthermore, our expansion planning not only consists of attractive acquisition opportunities but also includes investments in existing operations and in widening our franchisee base in emerging markets.
Nicholson: What are some of the more challenging areas of the world in which to conduct your business, and why?
Tannir: Business and economic conditions and infrastructure development vary across the markets we operate in, but we have been able to overcome the many challenges that we had to face. For instance, we have been operating since day one in the Middle East, a market with challenging regulations and a young logistics industry. However, our corporate culture and the resilience of our business structure have helped us grow despite the challenging conditions and tough obstacles.
As we expand into emerging markets in Africa and Central Asia now, our experience, expertise and strong network will help us play a key role in these markets.
Nicholson: How do you measure the value of your global partnerships?
Tannir: In working with our partners, our aim is to maximize our reach across the globe and to provide innovative and speedy solutions to all our clients. Our partners around the world are measured by their ability to provide service consistency to our clients. We cherish the ability of the partner(s) to develop mutually beneficial business opportunities, push-pull selling and seamless flow of information.
Nicholson: What factors can improve global partner effectiveness?
Tannir: Engaging more closely with a partner to better understand the needs of both parties is crucial for us. Partner loyalty and mutual investment for the long term is paramount to us. Actively supporting them in developing businesses and providing solutions that cater to market-specific needs are also very important to us. At Aramex, we work with our partners on an ongoing basis, developing soft infrastructure mainly through close coordination and flexible business-doing.
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