TEAM: NAVIGATORS

INTRODUCTION

For nearly half a century, seafarers have been cabling, phoning and, more recently, e-mailing GAC, confident of a professional and courteous reception when they reached port. And it's precisely that peace of mind that has come to be associated with every aspect of GAC's operations today. From its start as a regional player, GAC has grown to become the largest independent shipping and transport services provider in the world. Its hallmark: providing clients with the highest standards in shipping, logistics and marine services. GAC has evolved into a modern, sophisticated enterprise while retaining some reassuringly traditional values. Belief in the importance of face-to-face contact keeps it an unusually personal kind of company in an otherwise technological age. Awareness that other suppliers can offer similar services has only reinforced an abiding determination to do things well. And lessons learned in locations far off the beaten path serve as a reminder that the world is still a big, and sometimes formidable, place.

European Institute of Management & Technology

Page 1

TEAM: NAVIGATORS

1.1. INDUSTRY PROFILE

The GAC Group is committed to ensuring customers needs for quality shipping, logistics and marine services are understood and met. The GAC Group is committed to ensuring customers needs for quality shipping, logistics and marine services are understood and met. And with over 10,000 professionals working around the clock at more than 300 offices in over 40 countries, we deliver on that promise. Since the first GAC operation was set up in Kuwait by Swedish entrepreneur Bengt Lindwall in 1956, the Group has evolved into the widely-recognized global provider of integrated shipping, logistics, marine and related services we are today. GACs globalization strategy is to use steady and consistent geographical expansion, achieved through organic / opportunistic growth, joint ventures, partnerships and acquisitions. GAC is local in action and global in attitude. The value of human dignity is one of the cornerstones of GAC's operating philosophy. We value long-term relationships - with business partners, customers, suppliers and our own staff. Wherever you go, you will find GAC people striving for excellence in everything they do, driven by a sense of urgency and a desire to meet all their customers every service need. That combination of the personal touch with fierce professional pride is our corporate signature Everything you need to succeed Since 1956, GAC has grown to become one of the largest integrated providers of shipping, logistics and marine-related on the planet. Today, GAC employs over 10,000
European Institute of Management & Technology Page 2

TEAM: NAVIGATORS

professionals, operates 300 offices in more than 40 countries and works with trusted partners to cover over 1,000 locations worldwide. Our complete suite of integrated services allows customers to enhance operational efficiency, control costs and increase revenue driving towards long-term growth. Its an unmatched combination of operational expertise, global reach and strategic focus. Although GAC innovates constantly and continues to expand, we also maintain traditional values. We invest in long-term relationships; we know that deeds are more powerful than words; and we recognize that trust must be earned A privately-owned company, the GAC Group focuses on long-term commitments and lasting relationships with customers, suppliers and partners.

Our financial strength, global reach, strong reputation and innovation enable us to expand in step with our customers worldwide, responding to their needs and the changing demands of local, regional and global markets. Our customers are central to everything we do. It is their ever-increasing demand for competitive solutions that drives us to refine and integrate our services to meet their needs. Shipping was GACs first business unit, dating back to when our first office opened in Kuwait, to provide lightering and ship agency services, in 1956. Today, GAC Shipping is one of the worlds biggest providers of services to ship owners and operators. Shipping was GACs first business unit, dating back to when our first office opened in Kuwait, to provide lightering and ship agency services, in 1956. Today, GAC Shipping is one of the worlds biggest providers of services to ship owners and operators. Logistics operation originated from our forwarding, warehousing and distribution operations in Dubai. Today, GAC Logistics has grown into a global network providing a rich array of general and specialist logistics services.
European Institute of Management & Technology Page 3

TEAM: NAVIGATORS

Marine operation centers around our modern and expanding fleet of supply craft and barges that provide vital support for offshore exploration, construction and production, heavy lift cargo towage, etc. GAC Marine operates in key locations in the Middle East Gulf, West Africa and Caspian Sea. GAC takes full advantage of the diversity of our portfolio of services, our worldwide infrastructure, resources and expertise to deliver integrated solutions that result in time and cost efficiency. Sectors such as the oil & gas industry, in particular, benefit from GACs unique ability to offer a tailor-made service package covering ship agency, bunker fuels, project logistics, offshore logistics and more. Other sectors that can benefit from our wide range of services include cruise, dry bulk, automotive, FMCG, retail, technology, healthcare, sports, entertainment/events, projects, offshore, etc. We know that you must first sow before you can reap. Thats why GAC has always believed in investment: in long-term relationships with our clients, partners, brand ambassadors and suppliers; in the technology and equipment to get the job done - and done well; and in training our people, as evidenced by the establishment of the GAC Corporate Academy in 2007. Individual GAC companies operate with a high degree of autonomy, giving them the flexibility to act in accordance with local conditions and specific customer needs whilst maintaining the global outlook and standards of the Group. Headquarters

Corporate Headquarters Jebel Ali Free Zone PO Box 18006 Dubai United Arab Emirates Tel.: +971-4-881 1411 Fax.: +971-4-881 1511 E-mail: [email protected]

1.2. COMPANY PROFILE

Gulf Agency Company Ltd.

Dubai, United Arab Emirates Services Products - Services, Public. Ltd. Firm Since 0 GAC is the world's leading provider of shipping, logistics and marine services - wherever you go Since it started operations in the mid-1950s in Kuwait, the Group has steadily expanded its geographical coverage and range of operations to serve customers around the world. Today, it is a truly global operator serving the shipping,
European Institute of Management & Technology Page 4

TEAM: NAVIGATORS

logistics and marine industries on all continents. GAC delivers on its promises with day-to-day activities that represent value for money, quality, continuity, innovation and global reach, offering services that seamlessly combine its expertise and experience in the shipping, logistics and marine fields. More than 6, 000 employees around the world, with over 200 offices speaking most of the worlds major languages and representing most of the worlds cultures, make up the GAC community. Wherever you go, you will find GAC professionals dedicated to working together to provide the best possible service as they work across cultures, borders and time zones. GAC is global today thanks to the winning combination of international business skills and thorough local knowledge. GAC is there to serve you? WHEREVER YOU GO. Its thirty years ago, and youre on an oil tanker bound for Dubai. In addition to a shipment of crude, youll be taking on bunkers, fresh water, stores and spares and replacing part of the crew. The owner has made all the arrangements with his agent, but they have to be confirmed. As the letters CONFIDENCE DUBAI, the local address of GAC, are typed in on the telex, theres a feeling of calm. You know youre in good hands. For more than half a century, seafarers have been cabling, phoning and, more recently, emailing GAC, confident of a professional and courteous reception when they reached port. And its precisely that peace of mind that has come to be associated with every aspect of GACs operations today. From its start as a regional player, GAC has grown to become the largest independent shipping and ransport services provider in the world. Its hallmark: providing clients with the highest standards in shipping, logistics and marine services. GAC has evolved into a modern, sophisticated enterprise while retaining some reassuringly traditional values. Belief in the importance of face-to-face contact keeps it an unusually personal kind of company in an otherwise determination to do things well. And lessons learned in locations far off the beaten path serve as a reminder that the world is still a big, and sometimes formidable, place. In short, GAC is the kind of partner you can look forward to encountering wherever you choose to go. More than 8,000 GAC employees around the globe are dedicated to providing excellence in shipping, logistics and marine services. As globalization marches steadily across the business landscape, GAC has chosen a course on target with the times. In 1956, the company started its operations in the Middle East; now, GACs reach has grown to span the world. A unique combination of services allows GAC to offer multinational businesses a single, experienced source for all their shipping and transport requirements. In addition to the ships agency services on which the company was founded, GAC meets companies needs in the related areas of logistics and offshore support offering integrated solutions that complement customers

European Institute of Management & Technology

Page 5

TEAM: NAVIGATORS

businesses and allow them to operate more efficiently. One world; one agent. Its a simple concept that makes life a lot easier for customers. GACs shipping; logistics and marine services are co-ordinate by regional offices in Houston, Cairo, Dubai and Singapore. The Corporate head office is located in Jebel Ali, in the United Arab Emirates .Working together with trusted local partners, the company is represented in more than 300 offices, covering over 1,000 locations worldwide. GAC has grown to meet the needs of some of the worlds largest companies. But its commitment to addressing each customers unique challenges remains un wavered. So wherever a company needs support, GAC is there. More than a century of success in some of the worlds most challenging environments has given GAC a solid reputation in the ship ping arena. And the lessons learned from those experiences are every bit as relevant today in Houston as they are in Hong Kong. An outstanding track record has helped make GAC the largest independent shipping agent in the world. Whether in ports nearby or far afield, ship owners and operators know they can rely on GAC to act on their behalf, and in their interests. GAC Shipping meets the port and hub agency service needs of its more than 3,500 Principals through an effective combination of GAC offices and trusted network agents. In addition to ships agency, a number of special services have been created to assist international ship owners and operators in their work. These include Bunker Supplies, Ship-to-Ship transfers, Canal Transit and Ship Supply Services. GAC also acts as correspondents for most of the International Group P&I Clubs. Through a new business area, GAC Solutions, GAC offers innovative products in areas like Fire, Rescue & Safety and Weather Routing. More than 50,000 vessels choose to have GAC by their side every year. GAC represents the interests of more than 3,500 Principals worldwide and attends to more than 50,000 vessels annually. Modern facilities worldwide and sophisticated IT systems facilitate GAC Logistics effective transportation solutions. The more global the company, the more critical and complex the logistical challenges. For businesses interested in maximizing operational efficiency, GAC is an obvious choice. With its vast shipping and marine expertise, GAC stands out from the field of purely logistics players. GAC Logistics specializes in a comprehensive range of supply chain and logistics solutions, including air and sea freight, warehousing and distribution, door-to-door transportation, project logistics, ship spares logistics, international moving and courier services. The companys solutions are characterized by innovative thinking and the effective use of advanced technology. Indeed, manufacturers and retailers of everything from automobiles to healthcare, fashion and consumer goods regularly turn to GAC to meet their diverse yet unique logistics requirements. An integrated worldwide network of offices and representations offers businesses the efficiency and convenience of a one-stop shop. Such comprehensive coverage and accessibility ensure GAC not only stays close to its customers, but also helps them open up new market opportunities. And when it comes to delivering peace of mind? GAC has built strong relationships with
European Institute of Management & Technology Page 6

TEAM: NAVIGATORS

carriers, suppliers and customs authorities to expedite freight shipment and guarantee on-time delivery. Strict compliance with the highest inter- national security standards ensures a secure supply chain, in addition to a dependable one. The result is a customer who can rest assured that its destinations both on the map and in the boardroom are understood. And will be reached. Gulf Agency Company Ltd., which trades as GAC, is a leading global provider of shipping, logistics, and marine services. Its 200 offices span five continents and are staffed with knowledgeable locals. It handles logistics for a slew of multinational corporations. As part of its marine services, a fleet of crew supply vessels brings food and fresh water to oil platforms and passing freighters. Originally formed in Kuwait in the mid-1950s by Swedish shipping interests, the company is the largest shipping agent in the Middle East and operates at more than 1,000 locations around the world. Its international reach has been enhanced through acquisitions such as that of Benair Freight in 2005. GAC has a number of regional affiliates with local partners as majority shareholders. It also maintains a number of marketing alliances for regions of the world it does not cover on its own. Origins Gulf Agency Company (GAC) was originally set up as a Kuwait joint venture in 1956 by a top Swedish shipping agency, Nyman & Schultz, looking to expedite things at the country's busy seaport at the dawn of the containerized shipping age. Nyman & Schultz dated back to Carl Oscar Strindberg's shipping agency, which had been formed in Stockholm in 1861 and acquired by the Lindberg family in the 1920s. Offices were soon established in nearby Saudi Arabia and throughout the Arab world. Branches in Lebanon, Syria, Egypt, and Libya would eventually be closed, however, due to the outbreak of war or nationalization. Egypt closed the Suez Canal for eight years following the Six Day War with Israel in 1967. After it was reopened, GAC handled traffic to the Suez Canal from its Athens office. GAC also had opened an office at the Jebel Ali Free Zone in Dubai. GAC entered the Nigerian market in the 1970s, first overseeing ships to haul cement to the country's construction boom. Oil development later brought more business. GAC opened an office in Jordan in 1985. Within about ten years, reported Lloyd's List, it was the country's leading shipping agent. The shipping business in the Persian Gulf was going through an unprofitable couple of years, exacerbated by the war between Iran and Iraq. In January 1985 GAC began operating a less-thanEuropean Institute of Management & Technology Page 7

TEAM: NAVIGATORS

Container-load (LCL) freight forwarding service in the Persian Gulf through its Cargo Gulf unit, which grew quickly following the end of hostilities in the region. New Frontiers in 1990 The fall of the Soviet Empire opened new opportunities for GAC. It became the first international shipping agent in Poland in November 1989. GAC introduced a cargo service for the former Soviet republics several years later, in 1997, attracted in part by Azerbaijani oil developments. At the same time, GAC was expanding its reach to the east, working in partnership with a local carrier in Indonesia to begin operations there. A Singapore unit had opened a few years earlier. GAC staff had to be evacuated from Kuwait during its invasion by Iraq and the subsequent Operation Desert Storm. Growth soon resumed following this turbulence. A new door-to-door air freight unit, Air Gulf Express, was launched in May 1991. It began with connections from the Middle East to Europe and the United States. (Oil industry forwarder specialist Danaher America Inc. was its U.S. freight forwarding partner.) In 1993, GAC spent $3 million to open a large, technologically advanced freight center in the emerging trade center of Dubai. It had a capacity exceeding 3,000 containers a year, according to Lloyd's List, and was operated by GAC's freight forwarding division, Gulf Express Freight. A portion of the facility was temperature-controlled. GAC's Dubai distribution facility was instantly successful with multinational corporations, and underwent a $10 million upgrade within a couple of years. The shipping agent business was becoming more competitive, an official told Lloyd's List. The Dubai center offered co-packing and online services in addition to warehousing. Besides distribution and shipping agency, GAC's third main line of business was shipping support services. This included representation for property and indemnity clubs (a kind of marine insurance), repair facilities, and the ability to ferry cargo, supplies, or crew to or from passing ships that did not want to spare the time or expense of docking at port. The company was expanding the scope of its services, transporting heavy equipment such as construction cranes.

European Institute of Management & Technology

Page 8

TEAM: NAVIGATORS

In the mid-1990s, GAC began coordinating its European ports through a common hub office. The center of GAC's trade, the distribution facility in Dubai's Jebel Ali Free Zone, was expanded yet again in the late 1990s, bringing its total capacity to 75,000 cubic meters. It also began building a 10,000-square-meter facility in Bahrain in 1999. GAC benefited from the privatization of the agency business at the Suez Canal in 1998. The company subsequently formed GAC Egypt. The company was also active at the other end of the continent. Due to interest from its existing multinational clients in Nigeria, GAC launched operations in Angola. The company reported that within a few months, it had a 50 percent share of the tanker market there, which was booming following recent deepwater finds. GAC also was beginning to operate in South Africa. By 2000, GAC had about 4,000 employees and 160 offices in 60 countries around the world. It had amassed one of the largest truck fleets in the Middle East, noted Traffic World. As oil development intensified in the Caucasus, GAC opened an office in the Black Sea port of Novorossiysk in May 2001. New Headquarters in 2002 Headquarters were relocated from Athens to Dubai, the center of the company's trade, in January 2002. The new offices cost $4 million. The company continued to expand in Europe, adding offices in Denmark and Sweden. GAC's freight forwarding unit, GAC Cargo Systems, was growing rapidly through alliances and acquisitions. In 2001 it began a marketing agreement with Benair Freight International Limited, a U.K. freight forwarder focused on the Asian market. GAC bought Benair's Malaysian subsidiary within a year. It also acquired the Singapore shipping agency operations of Shell International Eastern Trading Company. GAC began a marketing agreement with Emirates SkyCargo in November 2001. The deal allowed Emirates to offer its customers door-to-door service, while providing preferential rates and treatment for GAC's air freight. GAC was restructured in 2002 into four geographic areas and three business units. GAC Marine Logistics, a marine parts supply business, was launched in 2003. The company was expanding its operations in India and West Africa. At the same time, GAC was undergoing an initiative to reduce costs and increase productivity
European Institute of Management & Technology Page 9

TEAM: NAVIGATORS

in a competitive market. According to Lloyd's List, GAC was seeing a dramatic increase in project cargo at its Abu Dhabi base related to construction of the $3.5 billion Dolphin gas pipeline and a desalination plant. GAC teamed up with Australia's Adstream Agency in 2002. The alliance allowed each to expand its geographical reach by sharing marketing and IT information. Other alliances were unveiled in the next two years, with U.S.-based Rice Unruh Reynolds, South Korea's Unipros, Malaysia's Kudrat Maritime, Panama's Wilford & McKay, and the Ultramar Group of South America. In 2003, the company revamped its corporate identity and logo. The initials "GAC" became the global brand rather than the traditional "Gulf Agency Company." The company adopted a new catchphrase, "wherever you go." One service offering GAC was growing was its door-to-door deliveries. GAC won a huge contract to handle United Nations food shipments to Iraq following the U.S. invasion to ouster Saddam Hussein. The war devastated Dubai's leisure cruise industry, however, for which GAC was the leading agent. The company's affiliate in Saudi Arabia was seeing more cruise business due to the opening of that market to nonreligious tourists. A company official told Lloyd's List that while the freight forwarding business was extremely competitive, GAC felt it had a distinct advantage in operating in emerging markets. It was planning further expansion in Southeast Asia, Africa, and Latin America. The company's reach from Europe to the Far East was strengthened by the 2005 purchase of Benair Freight International Ltd. and Benair Freight Pte from the United Kingdom's Dart Group plc for $9 million. Benair, which had been in business since the mid-1970s, offered GAC more truck and train capacity. 1.2.1. BACKGROUND AND INCEPTION OF THE COMPANY

Private Company Incorporated: 1956 Employees: 6,000 Sales: $1.2 billion (2005 est.) NAIC: 484110 General Freight Trucking, Local; 484121 General Freight Trucking, Long-Distance, Truckload; 484122 General Freight Trucking, Long-Distance, Less Than Truckload; 484220 Specialized Freight (Except Used Goods) Trucking, Local; 484230 Specialized Freight (Except Used

European Institute of Management & Technology

Page 10

TEAM: NAVIGATORS

Goods) Trucking, Long-Distance; 488320 Marine Cargo Handling; 488330 Navigational Services to Shipping; 488390 Other Support Activities for Water Transportation; 488490 Other Support Activities for Road Transportation; 488510 Freight Transportation Arrangement; 541614 Process, Physical Distribution, and Logistics Consulting Services 1.2.2. NATURE OF THE BUSINESS CARRIED

Logistics is the management of the flow of resources between the point of origin and the point of consumption in order to meet some requirements, for example, of customers or corporations. The resources managed in logistics can include physical items, such as food, materials, equipment, liquids, and staff, as well as abstract items, such as time, information, particles, and energy. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in logistics for import and export. Configuring and managing warehouses is a central concern for both business logistics and military logistics. Logistics management Logistics management is that part of the supply chain that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer requirements. A professional working in the field of logistics management is called a logistician. Materials management Channel management Distribution (or physical distribution) Origins and definition The prevalent view is that term logistics comes from the late 19th century: from French logistique (longer means to lodge). Others attribute a Greek origin to the word: accountant or responsible for counting. The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting material, personnel and facilities." However, the New Oxford American Dictionary defines logistics as "the detailed coordination of a complex operation involving many people, facilities, or supplies", and the Oxford Dictionary on-line defines it as "the detailed organization and
European Institute of Management & Technology Page 11

meaning reason or speech;

meaning

TEAM: NAVIGATORS

implementation of a complex operation". Another dictionary definition is "the time-related positioning of resources". As such, logistics is commonly seen as a branch of engineering that creates "people systems" rather than "machine systems". According to the Council of Logistics Management, logistics includes the integrated planning, control, realization, and monitoring of all internal and network-wide material, part, and product flow, including the necessary information flow, industrial and trading companies along the complete value-added chain (and product life cycle) for the purpose of conforming to customer requirements. Logistics is the process of planning, implementing, and controlling the effective and efficient flow of goods and services from the point of origin to the point of consumption. Logistics viewpoints Inbounding logistics is one of the primary processes of logistics, concentrating on purchasing and arranging the inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores. Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user. Logistics fields Given the services performed by logisticians, the main fields of logistics can be broken down as follows: Procurement logistics Production logistics Distribution logistics After-sales logistics Disposal logistics Reverse logistics Green logistics Global logistics Domestics logistics Concierge Service RAM logistics

Procurement logistics consists of activities such as market research, requirements planning, make-orbuy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process.
European Institute of Management & Technology Page 12

TEAM: NAVIGATORS

Production logistics connects procurement to distribution logistics. Its main function is to use available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control. Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption. Disposal logistics has as its main function to reduce logistics cost(s) and enhance service(s) related to the disposal of waste produced during the operation of a business. Reverse logistics denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics." Green Logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved trough intermodal freight transport, path optimization, vehicle saturation and city logistics. RAM Logistics (see also Logistic engineering) combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability, Availability and Maintainability are essential, ex: telecommunication systems and military supercomputers. Military logistics Punjab Regiment uses mules for carrying cargo during WWII. Animals have been used for logistic purposes by different people throughout history, the Roman army in particular preferred mules over donkeys for their carrying capacity. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucialsome would say the most crucialelement of military strategy, since an armed force without resources and transportation is defenseless. The defeat of the British in the American War of Independence and the defeat of the Axis in the African theater of World War II are attributed by some scholars to logistical failures.The historical leaders Hannibal Barcia, Alexander the Great, and the Duke of Wellington are considered to have been logistical geniuses. Military have a significant need for logistics solutions and so have developed
European Institute of Management & Technology Page 13

TEAM: NAVIGATORS

advanced implementations. Integrated Logistics Support (ILS) is a discipline used in military industries to ensure an easily supportable system with a robust customer service (logistic) concept at the lowest cost and in line with (often high) reliability, availability, maintainability, and other requirements, as defined for the project. In military logistics, logistics officers manage how and when to move resources to the places they are needed. Supply chain management in military logistics often deals with a number of variables in predicting cost, deterioration, consumption, and future demand. The United States Armed Forces' categorical supply classification was developed in such a way that categories of supply with similar consumption variables are grouped together for planning purposes. For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace. Some classes of supply have a linear demand relationship: as more troops are added, more supply items are needed; or as more equipment is used, more fuel and ammunition are consumed. Other classes of supply must consider a third variable besides usage and quantity: time. As equipment ages, more and more repair parts are needed over time, even when usage and quantity stays consistent. By recording and analyzing these trends over time and applying them to future scenarios, the US Armed Forces can accurately supply troops with the items necessary at the precise moment they are needed. History has shown that good logistical planning creates a lean and efficient fighting force. The lack thereof can lead to a clunky, slow, and illequipped force with too much or too little supply. Business logistics A forklift stacking a logistics provider's warehouse of goods on pallets. One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer. Business logistics incorporates all industry sectors and aims to manage the fruition of project life cycles, supply chains, and resultant efficiencies. The term business logistics has evolved since the 1960s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called "supply chain logisticians". In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption (see supply-chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities.
European Institute of Management & Technology Page 14

TEAM: NAVIGATORS

Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization. There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, while the other coordinates a sequence of resources to carryout one project.

1.2.3. VISION, MISSION & QUALITY POLICY.

Vision To provide leadership and innovation in global business and community life by delivering a flexible portfolio of services built on quality, safety, honesty, vigor and a commitment to long-term business relationships. Mission GAC is a worldwide service provider dedicated to building long-term relationships with customers, staff and suppliers. We are committed to delivering integrated services to the Shipping, Logistics, Marine and related markets at the highest levels of quality and safety. Policy GAC people are committed to adhering to GAC Compliance and Ethics policies so as to provide quality GAC Standard for al

European Institute of Management & Technology

Page 15

TEAM: NAVIGATORS

The GAC Code of Ethics is more than just corporate window dressing. It is a guide for action, not just words. A true code of practice. Our Code of Ethics covers how GAC people conduct themselves, whether we are dealing with each other, customers, suppliers or authorities. It emphasizes respect for the law and respect for people. At its core lies a determination to treat customers, suppliers and colleagues honestly, fairly and with dignity. GAC Anti-Corruption and Bribery Policy The GAC Anti-Corruption and Bribery Policy is at the heart of our commitment to conduct all our business in an honest and ethical manner. We take a zero-tolerance approach to bribery and corruption, and we are committed to acting professionally, fairly and with integrity in all our business dealings and relationships wherever we operate. GAC Whistle blowing Policy All organizations face the possibility of unknowingly harboring illegal or unethical conduct. The aim of the GAC Whistle blowing Policy is to encourage staff to report any suspected wrongdoing as soon as possible in the knowledge that their concerns will be taken seriously and investigated whilst, at the same time, respecting their confidentiality. GAC Sanctions Policy GAC is fully committed to complying with all sanctions and trade restrictions when conducting our business. Whether imposed by supranational authorities such as the United Nations or European Union or individual nations, we take a proactive approach to ensure that the interests of the GAC Group, our customers, suppliers and staff are protected at all times. Quality Policy Quality is the foundation of success, and has been at the heart of our working culture since GAC first started up in 1956. Today, GAC is an ISO-certified service provider, mainly audited by DNV. Our commitment to
European Institute of Management & Technology Page 16

TEAM: NAVIGATORS

quality is reflected in our in-house Strategic Management System, GAC TIME, which is based on the principles of Total Quality Management and is also reviewed by DNV. HSSE Policy Four interlinked elements create the best working space for GACs people and all who receive our services, step on to our premises, board our vessels or sit in our vehicles. Our commitment to quality is based on constant vigilance and attention to details. Steady feedback from our customers Safety Officers and regulatory authorities ensure our approach to health, safety, security and the environment remains clear, resolute and purposeful. Training, particularly in the offshore sector, is constant and rigorous. Corporate Social Responsibility As a successful business, at GAC we want to do well. But wherever possible, we also want to do good. That philosophy is at the heart of our commitment to corporate social responsibility, reflected in: omply;

-wide guidelines on health, safety, security and environmental (HSSE) matters;

In 2009, the Chairmans Award for Environmental Excellence was established, to promote environmental awareness and positive action by GAC companies.

1.2.4 PRODUCTS/SERVICE PROFILE

services GAC works exclusively with like-minded moving companies around the world that are firmly established and committed to providing quality moving services. Our global network comprises over 300 carefully selected partner agents in most major cities. All our agents' performances are measured on an ongoing basis to ensure that everything goes smoothly and that your belongings are handled professionally from start to finish. Your origin or destination agent wills have the professional experience and local knowledge to handle all customs clearance formalities and arrange delivery of your household goods to your new home.

European Institute of Management & Technology

Page 17

TEAM: NAVIGATORS

Relocation is in itself a challenge. And we believe that you already have enough to think about without worrying about your forthcoming move. Thats why we treat every item with care, and every move with pride. Throughout the Middle East, youll find modern GAC facilities and helpful GAC staff members, dedicated to ensuring that your moving experience is as stress free as possible. To fully understand the requirements of your move, a GAC moving consultant will meet you at your home. He or she will then recommend the appropriate mode of shipment, discuss insurance options and provide a comprehensive written quotation for your move. Packing dates can also be scheduled at this time.

considering when sending a small shipment of essential items in advance of your sea shipment, or if you only have a relatively small shipment to send. Full container load shipments After export packing has been completed, your shipment will be loaded into a steel shipping container, which will carry only your goods. Where access allows, it will be loaded and closed at your residence before being returned to the port of exit for loading on the next available vessel to your destination country. Less than container load shipments This method is used for sea freight shipment where a full container would not be cost-effective. Your goods will be loaded into a purpose built wooden shipping case at our warehouse. This will then be loaded inside a steel shipping container and sent to your final destination. Group age shipments Several shipments to a common destination are consolidated at our warehouse on Dubai prior to being loaded into a shipping container. If your moving and delivery dates are flexible and you have a fairly small shipment, then this service will be more cost effective compared the normal way of sending household goods. Door-to-door insurance GAC offers comprehensive insurance for your move. Insuring your shipment is highly recommended as your goods may transported through different climates across the world. Secure storage Choosing the best location for storage of your household good is so important. You can rest assured with GAC, as all our warehousing facilities meet the highest security and infrastructure standards and are manned by trained personnel. GAC also provides high-quality services in shipping, logistics and marine and are represented in more the 1000 location around the globe.

European Institute of Management & Technology

Page 18

TEAM: NAVIGATORS

Products : GAC is the world's leading provider of shipping, logistics and marine services. Our Services Such as : * Shipping: - 1. Shipping agency 2. Ship supply services 3. Canal Transit Services 4. P & I 5. Bunker fuels 6. Hub Agency Services 7. Chartering 8. MyGac 9. GAC Marine Logistics 10. Target Markets 11. GAC Shipping brochures * Logistics: - 1. Air Freight 2. Sea Freight 3. Sea/Air Freight 4. Warehousing & Distribution 5. Supply Chain Management 6. Project Cargo 7. International Moving 8. GAC Marine Logistics 9. Target Markets 10. GAC Logistics brochures * Marine 1. Offshore support 2. Towage & Barge Operations 3. Project cargo 4. Marine civil construction 5. Fleet list 6. Ship-To-Ship Transfer 7. Accreditations 8. Target Markets 9. GAC Marine Brochures * Online services 1. GAC Inventory 1.2.5. Area of operation

GAC also provides high-quality services in shipping, logistics and marine and are represented in more the 1000 Location around the globe. GAC

GAC works exclusively with like-minded moving companies around the world that are firmly established and committed to providing quality moving services. Our global network comprises over 300 carefully selected partner agents in most major cities. All our agents' performances are measured on an ongoing basis

European Institute of Management & Technology

Page 19

TEAM: NAVIGATORS

to ensure that everything goes smoothly and that your belongings are handled professionally from start to finish. Your origin or destination agent wills have the professional experience and local knowledge to handle all customs clearance formalities and arrange delivery of your household goods to your new home. Relocation is in itself a challenge. And we believe that you already have enough to think about without worrying about your forthcoming move. Thats why we treat every item with care, and every move with pride. Throughout the Middle East, youll find modern GAC facilities and helpful GAC staff members, dedicated to ensuring that your moving experience is as stress free as possible. To fully understand the requirements of your move, a GAC moving consultant will meet you at your home. He or she will then recommend the appropriate mode of shipment, discuss insurance options and provide a comprehensive written quotation for your move. Packing dates can also be scheduled at this time. Area of operation:

1.2.6. COMPETITORS INFORMATION Principal Competitors Barwil Agencies A.S. Globalink Transportation & Logistics Worldwide LLP Hull Blyth & Co. Inchcape Shipping Services The Kanoo Group. 1.2.7 Infrastructural facilities Parking place Canteen
Page 20

European Institute of Management & Technology

TEAM: NAVIGATORS

Visiting room Wifi Meeting room Factory Ports Air ports

1.2.8 Achievement / Award if any GAC Bunker Fuels Ltd awarded ISO 9001:2008 management quality certification GAC USA awarded Customs Brokers License GAC triumphs in the Logistics Category at Lloyds List Asia Awards 2013 GAC wins Bulk Ships Agent accolade at International Bulk Journal Awards

1.2.9. Future growth and prospects GAC Logistics has announced the renewal of its contract 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, except Saudi Arabia. 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 - the UAE, Kuwait, Oman, Qatar and Bahrain - including the world's largest Marks & Spencer store outside the U.K., at 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, then prepares and delivers the stock by the next day. A comprehensive host of tailored value added services are also provided. Further, GAC 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. Investment GAC Dubai Managing Director Dan Hjalmarsson says that the company is making an investment in resources which demonstrate GAC Logistics' commitment to key clients like Marks & Spencer.

European Institute of Management & Technology

Page 21

TEAM: NAVIGATORS

"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 dedicated to the Marks & Spencer business, that meets their strict quality requirements" he adds. Continuing partnership 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 consistently 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 Chan model is considered as one of the most efficient logistics solutions in the region," says Mr. Thomas. He adds that with major expansion plans in the pipeline, Al Futtaim Retail values and expects the partnership with GAC to continue supporting its business growth. 1.2.10 Work flow model DUBAI: GAC Protective Solutions has published a new position paper calling for ship owners and operators to adopt a more systematic approach to sea defense that is based upon a multi-layered model of non-lethal risk mitigation measures, rather than automatically relying on armed guards for vessel protection. The position paper entitled Sea Crime: Replacing The Fear has been published by GAC Protective Solutions, a partnership between global shipping, logistics and marine services provider GAC and maritime intelligence agency AKE. GAC Protective Solutions argues for an alternative approach to sea defense, replacing an undue reliance of armed guards on vessels travelling through high-risk areas with a more systematic approach based on the concept of the Maritime Risk Management Onion.

European Institute of Management & Technology

Page 22

TEAM: NAVIGATORS

The Maritime Risk Management Onion sets out a multi-faceted, layered approach to sea defence, based around the principles of Intelligence, Detection, Communications, Defend & Deter, Control and the Safe Haven. Rick Filon, Director of Maritime Security at GAC, said: The number of successful attacks on vessels crossing the Indian Ocean has fallen from one out of every 4,000 vessels to around one in 13,000. Whilst there is no room for complacency, ship owners and operators should certainly take the opportunity to undertake a rational assessment of all the security options available to them. History informs us that the best security solution lies in a robust system, rather than a single device. That is why we believe that a security system comprising several layers of non-lethal threat mitigation measures, as set out in the Maritime Risk Management Onion, is the right solution. Christer Sjdoff, Group Vice President, and GAC Solutions, commented: This paper sets out GACs vision of sea defense. A comprehensive, layered maritime security system, built upon training, intelligence and non-lethal security measures, is a worthwhile long-term investment for ship owners and operators. 1.2.10 SWOT ANALYSIS

STRENGTH Financial strength Strong reputation Innovation enables us to expanding steps with our customers world wide GAC groups focuses on long time commitment and lasting relationship with customers ,suppliers and partners Worldwide service WEAKNESS Negative reports Effect of global crisis Financial crisis

European Institute of Management & Technology

Page 23

TEAM: NAVIGATORS

OPERTUNITIES GAC Logistics announced the renewal of its contract with Al Futtaim Retail-which holds the marks &Spencers franchise to manage the international retail brands warehousing and distribution needs across the Gulf co-operation council states, except Saudi Arabia GAC also provides high quality services in sipping, logistics and marine and are respected in more than 1000 THREATS Principle competitors Barwil Agencies .A.S Global ink Transportation and Logistics Worldwide LLP Hull Blyth and Co. Inchcape Shipping Services The Kanoo Group

European Institute of Management & Technology

Page 24