DHL Global Forwarding, the leading international provider of air, sea and road freight services, has been selected by Strata Manufacturing, the advanced composite aero structures manufacturing company wholly-owned by Mubadala Investment Company PJSC, to provide Fourth Party Logistics (4PL) services spanning its entire supply chain.
The five-year agreement aims to minimize Strata Manufacturing’s shipment times along its global supply chains, with DHL Global Forwarding taking responsibility for all warehousing, freight and customs clearance of aero-structures produced at Strata Manufacturing’s facility in the Nibras Al Ain Aerospace Park — the multi-faceted development that supports the establishment of a sustainable aerospace industry in the Emirates with a vision to become a global benchmark in the aerospace industry.
The partnership will see DHL Global Forwarding set up a 2,500-square-meter warehouse in Abu Dhabi for storage and consolidation of all Strata shipments, equipped with high-volume racking, as well as fully-managed kitting, packing and dispatch process to support the company’s growing capacity requirements.
“We’re excited to partner with Strata Manufacturing to support its growth strategies. With the aviation industry expecting positive growth[1], Strata’s growth horizons for its wing components and tail assemblies continue to look optimistic,” said Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa.
“Strata has established itself as a strong global player in the aero-structures manufacturing sector and we require world-class logistics capabilities to ensure our technology and manufacturing best practices reach our international customers at speed and without compromise,” said Ismail Ali Abdulla, CEO, Strata Manufacturing. “DHL’s global freight network and warehousing infrastructure, coupled with its expertise in handling the sensitivities of aerospace products, will support our goals for further international growth.”
The fully-managed supply chain will support both time-critical “aircraft on ground” needs — where planes require immediate support with replacement components — as well as consolidated outbound shipments to Strata’s overseas customers; Airbus and Boeing, which are two of the largest aircraft manufacturers in the world.
“I am settling in well to my new role in Abu Dhabi and looking forward to working with my team to take our partnership with Strata to new heights. We are committed to continuous innovation to meet Strata’s business requirements. Our successful testing and adoption of groundbreaking practices, such as the Kanban approach developed to manage aerospace inventory shipment based on demand and supply, is testament of our deep knowledge of this industry,” said Kapil Grover, the newly-appointment country manager for DHL Global Forwarding in Abu Dhabi — an industry veteran with over two decades of experience. Grover oversaw a two-fold increase in revenue growth over five years when he was Head of Industrial Projects for Danzas.
Under the agreement, DHL Global Forwarding will also provide end-to-end control tower services spanning the movement of shipments, from manufacturing facilities in Al Ain to storage in the new Abu Dhabi warehouse and DHL’s European warehouses, which serve as global hubs for overseas distribution. At each stage, DHL’s customs clearance personnel will work with Strata Manufacturing to ensure the seamless flow of goods both into and out of the country. DHL Global Forwarding will also automate a significant part of the 4PL process, including deployments of integrated management platforms for warehousing, ordering and transport; as well as employing lean methodologies to reduce manufacturing, packing and transit times.