Al Jaber Leasing Services has become the first company in the Middle East to take advantage of Intertruck MENA’s Vendor Managed Inventory (VMI) package.
Last week, PMV reported preliminary details of a three-year operations agreement between the two companies. In an announcement at Automechanika Dubai 2014, Intertruck revealed that it will implement VMI at Al Jaber Leasing Services’ main warehouse in Mussafah, UAE.
“VMI is a concept that Intertruck has set up with a large customer in Abu Dhabi, Al Jaber,” explained Marcel van Eeuwen, CEO of Intertruck Group.
“We look at the fleet of the customer. What units do you have? How many do you have? What do you need? What is your use of spare parts? Once we’ve mapped this information, we take over their spare parts business. That is what VMI involves; we go into the warehouse, we take over their operations, and we make sure that everything they need is there.”
The announcement was made during a ceremony at which Intertruck finalised distribution deals with parts manufacturers Eaton and Wabco. Parts, argued van Eewing, represent the core of Intertruck’s expertise. In turn, VMI is a service aimed at businesses – such as Al Jaber – for whom this is not a primary focus.
“It’s our core business and our competence, whereas most of the time, for fleet owners, it’s not their core business; it’s their core business to use the fleet,” he told the crowd.
Intertruck claims that the VMI concept has been introduced in response to a local need in the Gulf region. The parts specialist claims that the system results in cost savings for customers, and 20% to 30% improvements in the efficiency of their local supply chains.
Automechanika Dubai 2014 will continue until Thursday 5 June.
