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Ramadan Report – A Logistics Manager’s Guide for E-Commerce

Introduction

The holy month of Ramadan, like any other seasonal activity, creates a surge in demand for various consumer products. Overseeing logistics during Ramadan can be a massive challenge, especially in high-demand industries like e-commerce. Supply chains across the world scramble to keep up with this spike, particularly those tied to Muslim-majority countries. The pressure is most felt by logistics managers.

If you’re a logistics service provider, an in-house manager, or someone curious about how companies handle logistics for e-commerce during Ramadan, this guide is for you. We’ll paint a clear picture of how Ramadan affects consumer shopping, its implications, and some best practices for our friends in logistics.

How Ramadan Affects Consumer Buying Behavior

The festivities and the spirit of the holy month bring everyone closer. On average, people socialize more, joining friends and families to break their fast at dusk (known as iftar). Observing intermittent fasting increases the demand for certain consumer products. The million-dollar question is: How do these social and cultural factors affect consumers? The answer is simple: They start buying more.

Ramadan Affects Consumer Buying Behavior

Most consumers prefer to buy in bulk and stock up their pantries in advance, either once at the beginning or at regular intervals throughout the month. The majority of consumers begin their Ramadan shopping in advance. According to Facebook IQ, 34% of Ramadan shoppers globally plan their purchases 1-2 weeks before the start of Ramadan, 10% plan more than three months in advance, and 17% don’t plan ahead.

Data from Google tells a similar story. For instance, “online grocery shopping” peaks a few weeks before Ramadan. In the UAE, 36% of Ramadan shoppers plan their purchases 1-2 weeks prior to Ramadan, and about 41% of shoppers report that they spend more than usual during Ramadan.

What Does It All Mean for Logistics Managers? [A Blueprint for Smooth Sailing]

Considering historical data and its implications, as a manager, you need a sound game plan for executing smooth logistics in Ramadan. Implementing certain best practices at the right time is crucial.

Do Accurate Forecasting

First, calculate the demand for your best-selling products or raw materials as accurately as possible. This will help you estimate requirements for inventory, labor, and shipments. Use data from previous years and factor in external variables that might affect demand, such as changes in preferences and prices. Maintain close collaboration with the marketing team and stay on top of various economic, behavioral, political, and industrial trends.

Pick an Appropriate Inventory Planning Strategy

Depending on your current labor resources, warehousing capacity, and projected demands, you can choose one of two strategies for planning your inventory for Ramadan:

Purchase Later: Stock up closer to Ramadan, but not too close to avoid stock-outs. This strategy saves on warehousing costs but requires higher labor resources in a short timeframe.

Purchase Early: Stock up a few months prior to Ramadan. This strategy avoids stock-outs and requires fewer labor resources but needs additional warehousing capacity.

Take Shipment Emergencies/Delays into Account

Factor in shipment delays when planning. Even slight delays during a peak season like Ramadan can be catastrophic for sales and revenue. Maintain close communication with partners, track orders and shipments in real-time, leverage data for insights, and use predictive analytics to handle sudden demand surges.

Communicate Clearly When Handling Stock-Outs

Despite your best efforts, stock-outs can happen. Maintain close communication with all concerned departments and partners about demand forecasts, purchasing, labor, warehousing requirements, and potential shipment delays. This minimizes the risk of stock-outs and allows you to communicate potential shortages with your customers, retain them, and come up with solutions in advance.

Ending Note

If there’s any time to test your logistics management process, it’s the month of Ramadan. The secret to capitalizing on all the positioning and conversion opportunities it offers is a proactive approach, ample planning for the peak, and close communication throughout the month. Regardless of your strategy, it’s always better to kick-start your shipments at least two weeks prior to Ramadan.

About Qafila

As a premier e-commerce solutions provider, Qafila delivers tailored logistics solutions to meet the unique needs of online businesses. We excel in efficient and secure ecommerce shipping and fulfillment services, ensuring timely and safe delivery of your products. Learn how Qafila can optimize your ecommerce global solutions and take your business to the next level.

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Ramadan Report – A Logistics Manager’s Guide for E-Commerce

Introduction

How Ramadan Affects Consumer Buying Behavior

Ramadan Affects Consumer Buying Behavior

What Does It All Mean for Logistics Managers? [A Blueprint for Smooth Sailing]

Do Accurate Forecasting

Pick an Appropriate Inventory Planning Strategy

Take Shipment Emergencies/Delays into Account

Communicate Clearly When Handling Stock-Outs

Ending Note

About Qafila

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Table of Contents

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