The Panalpina Group has opened a new assembly center in Dubai, United Arab Emirates, or UAE, for Ericsson, customizing products from semi-knocked down, or SKD, units to specific customer requirements. Panalpina engineers and technicians pick SKD units, configure, assemble and test them with the latest software uploaded. Panalpina then inspects and packs the finished products on site before delivering them directly to Ericsson's end customers in the region.

The configure-to-order process customizes the product as late as possible in the supply chain. It allows materials to be allocated against orders only when required in the order fulfilment process. Ericsson's customers, the mobile operators in the region, also benefit from more flexibility, shorter network roll-out times and, ultimately, a higher return on investment as they build their networks.

To be able to support Ericsson, Panalpina Dubai was required to obtain an assemblies trade license in addition to its logistics trade license. Prior to that, the new customs processes that would result from the manufacturing operations had to be vetted and approved by Dubai Customs. Since go-live of the operations in November 2015, Panalpina has successfully completed various Ericsson process verification tests and is now accredited to fully assemble and test different cabinets. The two companies have worked together in the United Arab Emirates since 2010.