Co-Op Islami beefs up distribution

The provider of halal food products is investing in its direct delivery network, whilst signing a third party distribution partner.

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By  David Ingham Published  September 5, 2005

Co-Op Islami has beefed up its direct delivery network and signed an agreement with a third party distributor. The company, which supplies a broad range of halal food products, says the investment in a hybrid distribution model will improve deliveries and service. “As a progressive organisation at the forefront of the industry, Co-Op Islami has always implemented initiatives in line with developments in the local, regional and international markets,” said Saleh Abdulla Lootah, chief executive officer of Co-Op Islami. To strengthen its direct distribution capabilities, the company will lease 27 trucks for three years from Super Price Rent A Car. All the leased vehicles have ‘state-of-the-art’ freezing facilities and include mobile partitions and cooling systems. The decision to lease the vehicles, rather than buy them, reflects Co-Op Islami’s decision to invest its capital in knowledge management initiatives. It recently embarked on the rollout of SAP’s enterprise resource planning software, a move aimed at improving operational efficiency and boosting profitability by up to 20%. The deal with Unikai allows Co-Op Islami to ‘reach out to new segments in the market.’ Co-Op Islami is listed in around 90% of the UAE’s hypermarkets and supermarkets, but is slightly less prominent in smaller c-stores and bikalas. According to Sajjad Ahmad, managing director of Unikai, his company has a fleet of more than 200 vehicles that distribute around the clock across the entire UAE. “This agreement represents a significant milestone in Co-Op Islami’s distribution strategy,” said Lootah. “Such an investment will have a positive impact on costs while at the same time increasing Co-Op Islami’s reach to a larger segment in the market.”

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