DB Schenker Opens Parts Distribution Center for Ford in Dubai

DB Schenker has partnered with Ford to inaugurate a state-of-the-art Parts Distribution Center (PDC) in Dubai South, the largest urban development project focused on aviation, logistics, and real estate. The grand opening ceremony on January 9, 2025, marks an important milestone in enhancing the efficiency and scalability of automotive supply chains in the region.

(Essen/Dubai) The 42,000 square meter facility is set to set new standards in operational efficiency and technological innovation, representing a monumental step in reshaping the logistics landscape of the region. Attendees at the opening ceremony included HE Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, Ako Djaf, Vice President of Contract Logistics and SCM at DB Schenker in the Middle East and Africa, Kay Hart, President of the International Markets Group at Ford Motor Company, Ravi Ravichandran, President of Ford Middle East, as well as other senior representatives.

The new PDC places DB Schenker’s expertise at the center of its operations, utilizing modern material handling equipment (MHE) and a sophisticated racking system designed for maximum storage capacity and picking efficiency. This includes narrow aisle systems (VNA), multi-tier mezzanines (MTM), deep selective racks (DSR), and cantilever racks (CR) that streamline order fulfillment and ensure smooth operations. Additionally, the facility features 20 container docks—10 for inbound and 10 for outbound operations—allowing simultaneous activities to reduce delivery times.

Power of Collaboration and Innovation

Ako Djaf, Vice President of Contract Logistics and SCM at DB Schenker in the Middle East and Africa, said: “At DB Schenker, we are very proud to support Ford’s ambitious vision for operational excellence in the Middle East. The new Parts Distribution Center is a testament to the power of collaboration and innovation. It has been designed to optimize supply chain processes, enhance customer satisfaction, and contribute to sustainability goals. By leveraging our global expertise and advanced logistics solutions, we are excited to play a central role in Ford’s efforts to provide unparalleled service to its customers across the region.”

“We are pleased to welcome Ford with the opening of its new facility in Dubai South. With the expertise and capabilities of DB Schenker, we are confident that this collaboration will strengthen Ford’s expansion efforts while providing top-notch services to its customers across the region. In Dubai South, our mission is to support the government’s plans for economic diversification through the comprehensive services and solutions we offer to both local and international businesses, underpinned by our state-of-the-art infrastructure. We remain committed to positioning Dubai as one of the world’s leading logistics hubs,” said Mohsen Ahmad, CEO of the Logistics District, Dubai South.

The operations of the PDC are based on DB Schenker’s expertise in implementing the SAP S/4HANA warehouse management software, which enables paperless picking with barcode scanning for unmatched precision and speed. A dedicated Vehicle Off Road (VOR) processing team also ensures that critical parts are prioritized, avoiding delays and enhancing customer satisfaction.

Streamlined and Efficient Process

“The new PDC will enable us to create a more streamlined and efficient process that improves parts availability, optimizes inventory management, and enhances customer service,” said Ravi Ravichandran, President of Ford Middle East. “By unlocking these operational efficiencies, we fulfill our promise to improve service and delivery times in the region, and we are excited that this latest Ford project in Dubai is coming to fruition.”

The PDC is strategically located in Dubai South and consolidates Ford’s storage and distribution in a single, technologically advanced hub serving key markets across the Gulf Cooperation Council and Sub-Saharan Africa. The facility increases its capacity by 20 percent compared to its predecessor, significantly improving inventory management and operational efficiency.

DB Schenker’s commitment to sustainability is reflected in the design of the facility, which incorporates environmentally conscious practices. A 400 kW solar power system, set to be installed by the end of 2025, will reduce energy consumption by 35 percent and decrease the CO2 footprint by 290 tons per year. Responsible waste management, including recycling and eco-friendly disposal, further strengthens the environmentally sustainable operation of the facility. This modern distribution center demonstrates how committed DB Schenker is to redefining logistics innovations. By employing the latest technologies and sustainable practices, DB Schenker continues to set industry standards and enables global brands like Ford to succeed in the region.

Outcome of Logistical Innovation

The Dubai South logistics zone is the outcome of logistical innovation, embedded in a top-notch infrastructure. It offers premier services and operations as well as unobstructed access to the Jebel Ali Port via a duty-free corridor. The district consists of several zones that have direct access to the cargo terminals at Al Maktoum International Airport.

Photo: © Dubai South