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Inventory, And Logistics Management In The UAE


January 13, 2022
6 MIN READ
Vinculum
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UAE companies are experiencing explosive growth in e-commerce. This transformation has been partly influenced by the young, tech-savvy cohorts of the UAE, but the market design has been changed to accommodate digitalization. It seems like the whole market scenario in the UAE is undergoing a shift as e-commerce transforms the entire market scenario, right from the growing consumption of e-commerce marketplaces to foreign merchants coming to claim their digital properties.

You have a lot of opportunities to extend your reach across multiple channels, maintain loyal customers, and refine your marketing strategy.

Would you like to start an online store in the UAE?

Perhaps you already have a brick-and-mortar business, but you’re having trouble synchronizing your inventory and orders? Are your operational costs keeping you from growing your bottom line, even if ayou have a fabulous online presence? It’s not just about speeding up inventory turnaround; it’s also about synchronizing your orders, inventory, and logistics.

We should first focus on the opportunities in the market today and see what is still untapped for e-commerce companies!

Opportunities in the UAE

Technology is used not just by consumers to improve their lives but also by businesses to improve their retail capabilities. The GCC region currently has the most significant penetration rate for e-commerce globally. A study conducted by Bain & Company estimates the UAE penetration rate at 4.2%.

While going to the regional marketplaces, you cannot miss out on that opportunity as a seller. Amazon dominated the UAE market with US$338 million revenue in 2020, followed by Namshi.com with US$144 million gain and noon.com with US$128 million payment. Especially if you are a startup seeking niche consumers, there are still other e-commerce platforms you can use besides Amazon.

The goals of each e-commerce business are aimed at achieving operational excellence, so e-commerce businesses cannot leave the logistics aside. Companies in the region may be primarily concerned with enhancing their logistics and supply chain management capabilities. Still, You can leverage new and improved technologies, like GPS-driven solutions, RFID tracking, and 3D printing to support organizational growth. Furthermore, SMEs have been empowered by the emergence of shipping companies.

Then, you may wonder how you can use these lying opportunities to your advantage?

Are you aware of the challenges you face here? Let’s talk! Although it is evident that working in sync and maximizing operational efficiency should be the top priority, how can you overcome the obstacles that act as a hindrance in your e-commerce journey, especially when you are in the UAE?

Challenges in the UAE

As technology becomes increasingly important in our digital age, choosing the right technology to handle and manage your operations has become increasingly important. You can perform various tasks ranging from managing inventory, automating order updates to connecting your business with the leading logistics service providers.

Let’s explore the processes and steps to solving order, inventory, and logistics challenges.

  1. Inventory Management

It is essential to understand the depth of multichannel and omnichannel retail by centralizing inventory to analyze stock levels and stockouts and updating lists online, offline, and in warehouses in real-time using an Inventory Management System. Aside from that, inventory management software enables you to do the following:

  • In real-time, monitor and update the stock levels on multiple marketing channels.
  • Customers can enjoy omnichannel experiences by seamlessly integrating offline and online inventory.
  • Keep stock movement in check across all sales channels to have a steady stock pipeline.
  • The stock needs to be synced automatically to ensure accurate visibility, increase sales, and minimize order cancellations.
  • Rotate stock in response to multichannel challenges, such as evaporation of freshness, decay of old stock, damage, and unmoving stock that costs the company money
  1. Order Management 

The addition of an order management system doubles the sales volume when a multichannel sales tactic is deployed intelligently. When products of mixed pricing are present, and the nature of orders varies (fragile, flammable, expensive), the order fulfillment software enables fast order processing.

Scalable order management systems should give you the following features:

  • Handle bulk orders, from order creation to printing and mailing of invoices, labels, and shipping arrangements in various internal systems and marketplaces
  • With unified orders across all channels, your orders will be processed faster while saving both time and resources so that you can spend your efforts on expanding your business.
  • Build customer loyalty across multiple touchpoints to ensure brand loyalty
  • Streamlining the reverse logistics process by reducing the processing time of orders
  1. Logistics Management

The role of logistics in our operations management processes helps us fulfill orders quicker and enables us to improve our delivery services to enhance customer satisfaction. The following logistics management solutions are required in the UAE:

  • Make sure orders are delivered quickly and efficiently by outsourcing experienced logistics professionals.
  • Hire local delivery agents so they can deliver seamlessly without the use of postal codes since they are familiar with the city’s nooks & crannies
  • Market platforms like noon.com, which have invented a geo tagging system that captures customer locations automatically, could be effective.
  • Integrate Unicommerce’s eCommerce platform with world-class platforms like Aramex, Fetchr, DHL Global, ClickPost, FedEx, Ships, and many others to enable fine-tuned delivery on the last mile, including Aramex, Fetchr, DHL Global, ClickPost, FedEx, Ships, among others.

Due to the consumer’s changing preferences, the E-commerce industry in the UAE is on the brink of a massive shift. As a seller, you must be aware of the upcoming challenges and solutions. Why? Since your operations are the foundation of your business, if you prepare to face all the challenges, you will surely be able to accelerate your business growth, which is something that everyone wants, right?

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