Top challenges faced by distribution companies in the UAE

#UAE | 30 December, 2021

Over the last few years, warehousing and distribution companies in the UAE have witnessed globalization because of which there has been an increase in demand and new product categories. Not only that, new products are getting launched at a more rapid rate these days to cater to the changing needs and expectations of consumers, and the life cycle of a product is decreasing with time. Because of the advancements that have come about because of globalization, there have been some issues faced by warehousing and distribution companies. These changes have been considerable and it has become essential for food distribution companies in the UAE to deal with these changes, in order to ensure a seamless supply chain system.

Let's take a look at the challenges faced by wholesale food distributors:

1) Inaccurate inventory
Inefficiency is a very important parameter when it comes to managing your inventory. Inaccurate inventory management can lead to issues, like improper stock levels, obsolete inventory, inefficient processes, lowered productivity, decreased revenue, and increased expenses. So, if you want to manage inventory the right way, make sure you focus on two major parameters, namely accuracy and efficiency.

2) Inadequate storage space
If you are not using your warehouse space adequately, it would surely not be profitable for you. Poor warehouse layout and inefficient use of storage space can be a major problem for managers.

3) Worthless processes
Since COVID-19 outbreak began, certain processes in warehouses have become redundant. Warehouse staff are used to handling products several times and since a product comes in contact with quite a few people involved in the process, it has become a health risk.

4) Labour costs
Experts in the realm of warehouse management always yearn to enhance productivity without increasing labour costs. Their goal is to minimize labour costs and ensure operational efficiency. However, using expensive equipment and ensuring a considerable number of labourers have led to increased labour costs.

5) Quality check
Since the pandemic came into existence, warehouse managers have been trying to meet the increasing demand by shipping more products on a regular basis, but with a smaller number of warehouse employees available. This has led to quality control issues since workers indulge in picking, packing, and shipping, and some errors go unnoticed until packages reach customers.

So, at Al Maya Trading, we have realized that these logistics challenges are handled on time by planning in advance and ensuring scalable and flexible processes. Warehouse managers should track and regulate these changes in today's fast-paced business environment and opt for responsive solutions.