Solving the logistics nightmare

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Kuehne + Nagel have addressed the logistics problem by introducing a warehouse in Jebel Ali.

The Middle East is built on speed: it is fast-growing, fast-moving, fast-serving. So just how does such an industry deal with delays?

As the tourism industry booms, hotels have realised that there are numerous logistical issues that need to be addressed if visitors are to continue to receive the high standard of service they have come to expect from the Middle East.

Teething problems

Kuehne + Nagel Management's vice president of hotel logistics, Achim Glass, explains that there are different logistical problems waiting to rear up at each stage of a hotel's development.

"Right from the start, when the hotels are still being built, they need to receive the furniture, fittings and electronics (FF&E) and operating supplies and equipment (OS&E) at a sequenced time," Glass explains.

"For instance you don't want to bring in the furniture if the carpet hasn't been laid, so you must have the right delivery sequence.

"Bringing all the material to Dubai is not an issue; many of the luxury manufacturers are based or have subsidiaries there. The difficulty is having the storage space to keep the goods available nearby, in order to bring them to site with a structured approach."

As Glass points out, even the slightest delay in the early stages of a hotel's development can have costly repercussions.

"Labour may be fairly cheap, but skilled labourers such as carpenters are expensive, so hotels want to keep those costs down. And if those labourers are sitting around and can't do anything because the material is stuck in a lorry somewhere, that's a big problem," Glass says.

"What the hotels need at this stage is a warehouse close to site that they can order all the material in to. That way there's only a short distance to cover from the warehouse to the job site."

Indeed that is exactly how Kuehne + Nagel has addressed this problem: by introducing a warehouse at Jebel Ali, storing the supplies and then delivering the materials required for the following day's work at night.

"We deliver the necessary material at night time, when there's almost no traffic, to a secured storage area. Then the material is available on site for exactly when it is needed," explains Glass.

The deeper issues

But once a hotel opens, there are a whole new set of logistical problems to be dealt with.

"After the hotel actually opens, it has to deal with the issue of guest amenities," Glass says.

"The essential amenities fall into four distinct categories. The first is soaps and liquids, so basically every hygiene product you find in the guestrooms. Every day people are using these products, so every day they need to be replenished. This is the most important category," stresses Glass.

"Secondly you have the bed and bath linen, so that's duvets, pillow cases, sheets, towels. Then you have the feather items, like duvets and pillows.

And last but not least, the branded and disposable items, so everything you have a company logo on: slippers, pens and so on. Obviously getting those things replenished regularly is vitally important to the hotel."

But the very issue of obtaining these branded items can cause the hotels difficulties.

Glass explains: "In the past, a five-star hotel brand had problems. They had certain products to be used in their hotels which were brand-stamped, and used in their properties across the world. So in every Marriott or Hilton, there would be the same soap. The companies do not want different hotels to buy pirate products from their local markets: they want them to use the brand-standard items.

"Previously, if the hotels wanted to replenish those categories, they would have to send 10 different purchase orders to 10 different suppliers around the world. The problem then is the delivery time," states Glass.

"If you order something from the UK it might take two days via air-freight, but that's very expensive. You could order it via sea-freight, but that could take up to four weeks. But regarding the logistical requirement of the hotel industry in the Middle East right now, they want it delivered yesterday.They want fast availability of the product and they also want an easy order mechanism."

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