With companies downsizing and allocating their warehousing and distribution responsibilities to specialist organisations, the challenge for those who have undertaken the responsibilities is how to maintain their services at the highest level and stave off competition that may arise even from organisations far from their shores.

But Bahrain's Gulf Warehousing and Distribution Centre (GWDC), a division of Intercol and the largest and technologically most advanced establishment of its kind in the country, is confident it can rise to the situation. In just over a year that it has been in existence as a third party logistics centre, it has managed to foster business ties with local parties and multinationals. A good start has been made, engendering confidence. Kevin Croucher, GWDC manager for logistics, says third-party business has increased over 50 per cent, and he is enthusiastic that there will be progress this year as well. He has forecast a 10 to 15 per cent surge for 2001.

"We expect 2001 to be a strong year based on what we did last year including signing third-party logistics contracts," said Croucher. "Demand is rising for our services because people do not want to invest in capital expenditure."

Parties using GWDC facilities include such prominent companies and institutions as Nestle. Philip Morris, Reckitt Benkiser, Danone, Shell, Alcatel, Sheaffer, Roche, Conagra and the US Navy.

The GWDC national operating system consists of two groups - a market services group responsible for operating the company's state-of-the art warehouses and managing customers' inventories and the logistics services group responsible for developing and implementing supply chain logistics solutions. In place is a sophisticated warehouse management information system created by Exe Techn-ologies called "Exceed"

The warehouse complex, consisting of two main sections - refrigerated/frozen and air-conditioned - operates through a computerised management system, and is well secured and surrounded by neighbouring buildings on three sides while maintaining security monitored access on the fourth. A security tower containing state-of-the-art security options has been incorporated to keep a check on the warehouse and in its surrounding areas.

Twenty video cameras have been installed outside and inside in addition to security alarms placed at the exit doors.

Within the complex, located at Mina Sulman, are two areas designated as free zones. The complex itself has impressive facilities including two frozen zones, one operating at minus 18 degrees and the other at minus 28 degrees C, a chiller zone operating at 8 degrees C, a dry goods zone operating at 22 degrees C, a bonded warehouse, a machine room for the ammonia plant, office space for third-party clients, a mezzanine for storage of archives and light- weight material and a packing and labelling area.

There are storage areas for pharmaceuticals, cosmetics and perfumery items, cigarettes and tobacco products, food and non-food products. The complex also houses standby generators, an in-rack storage system, an in-rack sprinkler system, an elevator for moving cargoes from the ground floor to two separate mezzanines and a cool dock area.

Product quality and timely distribution are ensured thanks to GWDC's efficient and flexible transportation services involving in-house fleet or common carriers or a combination of both.

Croucher feels the best place to have a distribution centre is Bahrain because of its strategic location in the Gulf. Just 18km from the east coast of Saudi Arabia, Bahrain is situated within the central part of the Middle East and enjoys easy access to Europe, India and the Far East. Some of the overflow from neighbouring states could easily be accommodated on the island. "The strongest challenge is to take business away from Jebel Ali. Also a challenge is the upcoming free zone in Dammam," says Croucher. GWDC is already serving UAE companies and feels it could do good business with Qataris. Outside the Gulf, it has developed ties with Jordanian and Syrian firms.