Emitac plans Iraq logistics
After being awarded HP IPG, PSG and ISS rights for Iraq, Dubai-based distributor Emitac has been fine-tuning its logistics model
Emitac will offer the Iraqi channel a variety of ways to source HP kit. As well as shipping product to the port of Basra, Emitac will offer resellers the choice of picking up product from Jebel Ali or stocking points in Jordan and Kuwait. The Dubai-based regional distributor was awarded Iraq rights for HP's Personal Systems Group (PSG), Imaging and Printing Group (IPG) and Industry Standard Servers (ISS) last month.
Operating as both a Logistics Service Provider (LSP) and Channel Development Partner (CDP), Emitac expects early demand in Iraq to be primarily driven by government spending and corporate IT investment.
Vivek Gupta, finance and operations manager at Emitac distribution, says: “HP product destined for Iraq will be routed through Jebel Ali. Because Emitac also holds distribution rights in Kuwait and Jordan, Iraqi customers can pick up and consolidate goods there. Alternatively, Iraqi resellers can consolidate their shipments at Jebel Ali and move product from there.”
“We also expect to move product by sea from Jebel Ali to Basra and from there it will move to Baghdad,” adds Gupta. “Emitac will not do the product clearing for the product being shipped to Iraq. This will be the task of the freight forwarders that the customer decides to use.”
With large accounts expected to drive HP sales in Iraq, providing these customers with services and support is a necessity. “We are still in the process of identifying the right personnel resources to locate inside Iraq, possibly through a joint venture arrangement,” adds Gupta. “We already have staff trained up here in Dubai that can be used in Iraq. The infrastructure is in place to train people up in Iraq and also impart the skills and know-how available in our existing service centres.”
Besides developing its Iraqi operations, Emitac is also poised to flesh out its pan-regional coverage in the next few months. As well as finalising a joint venture in Kuwait, Emitac hopes to strike a similar deal in Saudi Arabia during the next quarter. Kuwait will also be the location for a service centre capable of serving Iraqi resellers buying HP product. Longer-term, Egypt is also on Emitac’s radar as a country to build coverage in through a joint venture.
Emitac’s IT distribution operation remains heavily focused on HP although plans are afoot to add complementary vendors.