Multi-year agreement will see GAC Dubai handle approximately 17,000 SKUs across multiple product categories
Lagardère Travel Retail has appointed GAC Dubai’s Contract Logistics team to handle a range of goods sold at Duty Free retail stores at airports in Saudi Arabia and the futuristic Abu Dhabi Midfield Terminal Complex (MTC).
Under the multi-year agreement signed by the two companies commencing 1 March 2019, GAC Dubai will take care of the port haulage, receipt, storage, pick and pack, transportation, customs clearance and Federal Tax Authority documentation for goods including chocolates, fine foods, fashion, beverages, electronics, cigarettes and cigars, personal care, perfumery and make-up.
The companies expects to manage approximately 17,000 SKUs (stock keeping units) across a variety of product types and will also handle the formalities required for the storage and handling of some categories of beverages on behalf of Lagardère Travel Retail.
Part of GAC Dubai’s contract logistics facility at Dubai South will be dedicated exclusively to the account, and a G+5 interlock mezzanine deck with multiple aisles and shelves is being constructed for better product segregation and picking. Approximately 3.5mn picked units of goods are expected to be handled by GAC Dubai every year under the contract.
“This marks the beginning of a long-term relationship with a world leading duty-free operator, which is now expanding in the Middle East. It is an excellent fit with GAC Dubai’s long-term vision for its contract logistics business to move into specialised storage and handling operations,” remarked Ronald Lichtenecker, Managing Director, GAC Dubai.
“This is Lagardère Travel Retail’s first warehousing venture in the region, so the awarding of a long-term agreement is testament to the strength and knowledge of GAC’s management and staff,” said Neil McMaster, General Manager–Contract Logistics, GAC Dubai.
“We are delighted to be starting this new partnership with one of the strongest logistics operators in the Middle East. It will enable us to reinforce the fluidity and reliability of our regional supply chain, which is key to delivering excellent service to our customers,” commented Vadim Motlik, CEO, Lagardere Travel Retail-UAE.
