Dubai Port World Firm’s Supply Chain Processes

DP World is a multinational firm that specializes in logistics and it is based in Dubai, United Arab Emirates (UAE). The company has ventured into cargo logistics, port terminal management, maritime operations, and free trade zones as depicted in Figure 1 below. In supply chain affairs, the firm is certified as a member of the Customs-Trade Partnership Against Terrorism (C-TPAT) (Ziadah, 2018). The business is among the examples of companies that have perfected the supply chain through resilient management of global chains without being disrupted by various business issues. One of the metrics on how the establishment handles supply chain issues is through consideration of shorter manufacturing hubs which helps in lowering many companies’ reliance on the Asian region. The purpose of this paper is to report on the supply chain issues for DP World including the design of products and supplier and customer levels.

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Supply chain solutions at DP World ("How do we make supply chains more resilient?”
Figure 1: Supply chain solutions at DP World (“How do we make supply chains more resilient?” 2021).

The Internal Processes in the Company

DP world is a leading player in the world for smart end-to-end supply chain issues that enable the flow of trade across the UAE and other parts of the planet. The establishment has comprehensive categories and services that cover all the connected supply chains (“DP World: Controlling fast logistics,” 2021). For instance, there are maritime and inland terminals that cover marine services as well as industrial parks that are driven by technology to power customer relations. The firm’s website has information about a raft of internal processes that are undertaken by the personnel involved in the business. The firm delivers all the logistical services through a vast interconnected world network that covers more than 120 business entities within 55 countries on all continents (Jacobs & Chase, 2021). DP World has a significant stable market in all the countries which are highly grown to overtake its competitor’s hence, taking a notable competitive advantage in the market.

The internal processes allow DP World to operate and integrate sustainable and responsible corporate matters into its business portfolio. Through the chief executive officer (CEO), Mr. Sultan Ahmed bin Sulayem, the firm has excelled in expanding its ports and customs business not only in the middle east but also in other countries (“DP World: Controlling fast logistics,” 2021). The logistics, maritime and free trade segments in the business have made it easier for the firm to strive for a positive role in growing the economy of the region and communities where it operates. Human resource management, which is a critical department, has worked in ensuring there is diversity in the processing of various issues (Ziadah, 2018). The selection and recruitment are made every year and so far, has covered more than 134 countries that deliver valuable services to all customers.

There is another notable faction that is worth mentioning is the establishment’s internal processes. The focus on mutual relationships with the government, shippers, traders, and other significant stakeholders in the business has enabled the provision of exemplary logistical solutions. The partnership made through foundational engagements has built the business to ensure there is sustainability in the firm (“How do we make supply chains more resilient?”, 2021). The leadership arm in DP World has enabled anticipation of changes and deployment of industry-leading tech that furthers the broad digital vision in trade. For instance, freight management is done by critical integration of various technology by using machines that have modern human intelligence as a result of microservices architecture.

Design of Products and Services

DP World helps clients in handling cargo movement from the points of manufacture to where the items will be resold. The process is done while considering the management of costs and consolidation of gains by factoring in the stability of returns on revenue. The ports and terminals play a sensitive role by having strategic operations that have a network of ports and marine points that have been a notable business hub in the global logistical market (Sundarakani, 2017). DP World has expanded its portfolio by ensuring there is a network of acquisitions and concession concurrences that demonstrate a committed firm in driving the world economy. As shown in Figure 2 below, the terminal handling is necessitated by having deep seaports and marine points that have set a collaborative base to goods on transit. Therefore, the ports and terminals play a key role as one of the services offered towards logistics.

Terminal and ports processes at DP World ("How do we make supply chains more resilient?
Figure 2: Terminal and ports processes at DP World (“How do we make supply chains more resilient?” 2021).

Logistics

Through logistics utility, DP World enables the production and movement of freight in the world hence, connecting the gaps between the company’s global network of ports and terminals with modern cloud-based technology (“DP World: Controlling fast logistics,” 2021). Through the connections made by DP World business portfolios, there is the efficient provision of global production and consumption centers where the logistical solutions are offered at a smooth flow from ship to shore and beyond. Through logistics, DP World enables its customers to grow their enterprises hence improving the efficiency in the supply chains.

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There is efficacy in developing markets due to the exploration of new opportunities enabled by DP World. As seen in Figure 3 below, the business has been effective in handling cargo through blockchain optimization of the supply chain (“DP World: Controlling fast logistics,” 2021). The firm has been a key player in facilitating commuting of items in places where there is the ongoing construction of multi-level plants such as those belonging to technology companies. For example, transportation of materials for building major infrastructure around the world has been effective through the logistics utility.

DP World’s port in Dubai, UAE ("How do we make supply chains more resilient?
Figure 3: DP World’s port in Dubai, UAE (“How do we make supply chains more resilient?” 2021).

Marine Services

The company has a special subsidiary known as P&O Maritime Logistics that has led to the development of solutions for maritime services. DP World has specialists in vessel handling and has improved operational skills that are deployed in all the cargo ports to all the locations globally (Barbuscia, 2021). The firm is a member of the Marine Contractors Association (MCA) and has perfected modern standards in the marine business. The company recently acquired Drydocks World, which allows collaboration in ship repair and enhancing support services in the marine business.

Economic Zones

The firm has been able to create zones of opportunity in global trade as one way of enhancing international shipping. DP World has a Parks and Economic Zone that has led to the management of a massive Jebel Ali Free Zone in the UAE. Through such business ventures, the firm has been phenomenal in expanding industrial parks, cargo points, and other economic zones that improve trade for the company (“How do we make supply chains more resilient?” 2021). For example, the DP World Gateway is an example of how the establishment has improved business operations. The two-year business involvement has built new facilities by companies such as SH Pratt, which specializes in fruit importation.

Supplier and Customer Levels

It is important to note that DP World suppliers are required to register online or fill a vendor registration paper for a business transaction. The tender bids must be applied when a business has 2-5 years in business operation (“DP World supplier handbook,” 2021). The purpose of having a comprehensive suppliers list is to be able to get updates when changes occur relating to products and services for the firm. For a supplier to work with DP World, they have to maintain consistent high-quality items and services to the firm (“How do we make supply chains more resilient?”, 2021). The performance of suppliers is monitored and examined after some time, and results are given to the vendors when they require them. The criteria for evaluating suppliers include various options as discussed below.

Supplier responsiveness must be a consideration by checking time, courtesy, and technical clarifications. The other criterion is pricing, where the charges should be competitive and sustainable (Sundarakani, 2017). Quality is also a must-do for the suppliers as there should be a reliable and durable form of the products. Delivery is also key for a supplier to be considered by DP World focuses on-time delivery, order accuracy, damage, and packaging issues. Lastly, suppliers must be responsible for sales and services that involve technical support and training, including warranties. Therefore, the information provided by the above part shows the supplier levels for business interaction with DP World.

Examples of businesses that have transacted with DP World include Singapore’s marine logistics provider Feedertech Group. The firm has become a subsidiary establishment and the transactions have started since 2020. DP World said in a statement by one of the executives that “Feedertech, a 100 percent owned subsidiary of DP World PLC, announces the acquisition of a 77 percent stake in Feedertech Group” (Sundarakani, 2017). Thus, it means that the company assists in supply chain management in Singapore and the neighboring places. Other suppliers include Bank of Nova Scotia BNS, and Standard Chartered, among others.

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Customers

DP World has been doing business in many parts of the world. The customer levels for this group include established businesses that get involved in their services as shown under the services section (“Customers give supply chain reality check,” 2021). Some of the notable companies that have notably transacted with DP World include United Sugar Company of Egypt, EZZ Rolling Mills, Cemex, Egypt, International Drilling Material Manufacturing (IDM), Reliance Logistic, including other businesses (Barbuscia, 2021). All the customers that have dealt with the firm have shown interest in more business due to the organization and linear flow of matters courtesy of the management.

The customer base has enabled the DP World to have a master plan and capacity aspects that drive more changes in the business. For example, Through the EZZ Rolling firm, DP World has been able to develop an administrative and management center that acts as a product support chain in the region hence giving a stable competitive advantage (Barbuscia, 2021). Through other companies such as IDM, the firm has achieved major objectives of having modern infrastructure due to the collaborative aspects in business that show a system of effective flow of products.

The level of customer that DP World deals with enables strategic alignment with the establishment’s goals. For example, while interacting with the United Sugar Company of Egypt, the firm has formed an exemplary first and fully automated terminal Egyptian ports hence, making a unique portfolio that gives the business a competitive advantage (Barbuscia, 2021). Through the key locations that the firm has put the ports, some gateway businesses such as that of London enabled DP World to acquire many minor companies that make its operations effective.

References

Barbuscia, D. (2021). Exclusive: Dubai signs up banks for $9 billion DP World debt deal – sources. U.S. Web.

Customers give supply chain reality checks. (2019). DP World. Web.

DP World reports strong volume growth of 11.9% for 9M2021. (2021). DP World. Web.

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DP World: Supplier handbook. (2019). DP World. Web.

DP World: Controlling fast logistics. (2019). Automotive Logistics. Web.

How do we make supply chains more resilient? (2019). DP World. Web.

Jacobs, F., & Chase, R. (2021). Operations and supply chain management (16th ed.). McGraw-Hill.

Sundarakani, B. (2017). Transforming Dubai logistics corridor into a global logistics hub. Asian Journal of Management Cases, 14(2), 115-136. Web.

Swissterminal and DP World enter a strategic partnership. (2020). DP World. Web.

Ziadah, R. (2018). Transport infrastructure and logistics in the making of Dubai Inc. International Journal of Urban and Regional Research, 42(2), 182-197. Web.

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NerdyTom. (2022, November 18). Dubai Port World Firm’s Supply Chain Processes. Retrieved from https://nerdytom.com/dubai-port-world-firms-supply-chain-processes/

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"Dubai Port World Firm’s Supply Chain Processes." NerdyTom, 18 Nov. 2022, nerdytom.com/dubai-port-world-firms-supply-chain-processes/.

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NerdyTom. 2022. "Dubai Port World Firm’s Supply Chain Processes." November 18, 2022. https://nerdytom.com/dubai-port-world-firms-supply-chain-processes/.

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