3,000m2 expansion features country's first retail cross-dock facility catering to increased demand for 3PL services


Dubai, UAE - 9 February 2004 – GAC Samudera Logistics, a joint venture company between the GAC Group and the Samudera Indonesia Group, announced an expansion of its US$6 million Central Distribution Centre (CDC) in Indonesia today. Worth US$3 million, this expansion is expected to be completed by March this year.
 
Strategically located in Lippo Cikarang in the Bekasi district near to Jakarta, the CDC is the only multi-user warehousing facility and distribution centre in Indonesia. Another 3,000m2 is being added to the current built-up space of 10,368 m2, offering a total of 17,250 pallet positions. This represents a 30 per cent expansion to warehousing space since the facility officially opened in January 2003.
 
Mr G Shankar, General Manager of GAC Samudera Logistics, said, “The expansion will enhance GAC Samudera Logistics’ capability as a one-stop shop for all logistics requirements, providing clients with a truly integrated logistics service in Indonesia.”
 
“Our provision of sophisticated IT-led, multi-user services will enable clients to share staffing and storage costs while enjoying dedicated logistics services. This helps drive down cost elements within the supply chain,” he added.
 
Dedicated cross-dock facility – First of its kind in Indonesia
 
A key addition to the CDC is the retail cross-dock facility, the first of its kind in Indonesia. Said Mr Shankar, “Cross-docking helps retailers streamline the supply chain from point of origin to point of sale, thus enabling them to reduce operating costs, increase throughput and minimise inventory levels.”
 
Cross-docking, a growing logistics trend, involves taking a finished product from the manufacturing plant and delivering it to the end customer with little or no handling in between.
 
GAC Samudera Logistics’ new cross-docking facility is designed to receive goods from a truck or container at one end, and then immediately loading to a designated platform at the other - without putting them in a rack or deep floor storage. The goods are then consolidated and transported with products from several other inbound loads to its final destination.
 
Expansion in line with clients’ changing needs
 
Mr Masli Mulia, President Director of GAC Samudera Logistics said that the company’s years of experience in Indonesia have given them an edge in anticipating and adapting to changing market conditions, thus helping clients cut costs. An example he cited was the racking configuration in the CDC which changed from wide to narrow aisle to maximise storage space and drive efficiencies.
 
“Our track record in helping clients achieve their business goals has resulted in an expanding clientele of large manufacturers and retailers,” Mr Mulia said, “GAC Samudera Logistics has consistently achieved a 30 percent growth annually, and the business is expected to double over the next few years.” The company’s clients include Johnson & Johnson, Mead Johnson, Makro, Ajinomoto and Valu$.
 
Mr Mikael Jinglöv, GAC Logistics' Business Development Manager for Third-Party Logistics in Asia, noted that there is a growing opportunity in the Indonesian logistics industry and the company’s expansion is reflective of the demand.
 
“More companies in Indonesia are recognising the value that 3PL companies bring to the table and are increasingly outsourcing their logistics activities,” Mr Jinglöv said, “GAC Samudera Logistics has extensive market knowledge, experience and both logistics and IT infrastructure that enables it to stay ahead of its competitors.”
 
Ends-
 
Editor’s Notes
 
About the GAC Group
The GAC Group (GAC) is the world’s largest independent shipping and transport services provider, with over 200 offices worldwide.
 
Established in 1956, GAC’s core business covers three key areas – shipping, logistics and marine services. The GAC brand reflects value for money, quality, continuity, innovation and global reach.
 
GAC employs more than 5,000 people worldwide. The GAC Group corporate head office is in Dubai, in the United Arab Emirates.
 
About the Samudera Indonesia Group
Founded in 1964 by Mr. Soedarpo Sastrosatomo along with other member of shareholders. For almost 40 years, Samudera Indonesia has grown and expanded its business from ocean going shipping company into integrated transportation company providing shipping, agency and terminal, and logistics services. And since 1999, the Company has been publicly listed on the Jakarta Stock Exchange.
 
Throughout its operations, Samudera Indonesia employs around 2,300 employees and is supported by 30 branch offices and agencies in the major ports in Indonesia, and 41 agencies in the major ports cities in Asia.
 
About GAC Logistics
GAC Logistics, the freight forwarding and distribution division of the GAC Group, specialises in a comprehensive range of supply chain and logistics solutions. These include air and sea freight, warehousing and distribution, door-to-door transportation, project logistics, international moving and courier services.
 
GAC Logistics operates an integrated worldwide network, serving international manufacturers, distributors and retailers from the FMCG, textiles, pharmaceutical, automotive, electronics and oil & gas industries.
 

© Press Release 2004