GAC Logistics has announced its contract renewal with Al Futtaim Retail - which holds the Marks & Spencer’s franchise - to manage the international retail brand’s warehousing and distribution needs across the Gulf Co-Operation Council (GCC) states, with the exception of Kingdom of Saudi Arabia (KSA).

Under the continuing arrangement, GAC Logistics manages Marks & Spencer’s distribution centre in Dubai and handles delivery to the global retailer’s nine stores across five GCC countries, namely United Arab Emirates, Kuwait, Oman, Qatar and Bahrain, including the largest Marks & Spencer store in the world outside the United Kingdom located within Dubai Festival City.

As part of its total supply chain solution, GAC also manages specific orders from each store which are processed in line with daily sales, prepares, and delivers the stock, by the following day. A comprehensive host of tailored value added services from suppliers are provided. GAC also supports Marks & Spencer with consultancy on store loading bay design and store stock rooms, sale pricing, shop fitting assembly, in-store merchandising and even in-store staff assistance during sales periods.

GAC Dubai Managing Director Dan Hjalmarsson says that the company is investing more resources which demonstrates GAC Logistics’ commitment to key clients like Marks & Spencer.

‘We are investing US$3.6 million for a specialised hanging garment system to support the future growth requirements and provide them with an infrastructure that meets their strict quality requirements, dedicated to the Marks & Spencer business,’ he added.

GAC has been in partnership with Al Futtaim Retail since 1996.

Sebastian Thomas, Supply Chain Manager, Al Futtaim Retail Division says that the new long-term contract makes GAC one of their main logistics partner and is an affirmation of the GAC’s relentlessly high service levels over the years. GAC’s contribution as a key supply chain partner was recently acknowledged with its ‘Service Excellence Award’ in 2007.

‘GAC has played a dominant role in designing, developing and managing our supply chain for a number of our retail brands. The Marks and Spencer Supply Chain model is considered as one of the most efficient logistics solutions in the region.’

With major expansion plans for the retailer in the pipeline, Al Futtaim Retail values and expects the partnership with GAC to continue supporting its business growth, he adds.