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Challenges faced by Logistics Sector in Dubai

Challenges faced by logistics sector in dubai

Globalization has led to a rapid growth in the industry of logistics. Outsourcing of goods to the Far East has brought a great deal complexity into the supply chain systems. To add to this, new products are being launched at a faster rate than ever before, the life cycles of products is greatly decreasing, increase in demanding customers and companies are looking to reduce their inventory. These changes are massive and need to be handled efficiently by the logistics and supply chain teams to maintain the financial health of the companies.

Supply chain disruption is soon becoming more of risk due to the drastic advancements being made and complexities increasing through globalization. Dubai has received the opportunity to host the Expo 2020 being the first country in all of Middle East to be privileged with this opportunity. A huge logistics effort will undergo to make sure that everything is executed successfully in 2020. The Expo 2020 that is to be held in Dubai, is expected to attract 25 million visitors among which 70% are expected to arrive from overseas.

To be able to rightfully manage the entire event which is to take place for 6 months, Dubai has planned to invest in 4 major areas — accommodation, transportation, a strategic site and a supply chain that is highly scalable. During these 6 months, there will be a massive increase in demands on both Dubai’s retail as well as food and beverage sectors. The retail stores in all of Dubai need to take extra steps to ensure that they are always well-stocked and don’t run out of supplies. Dubai has a vast number of professional supply chain management companies that are helping to make sure things don’t go haywire and are handled smoothly.

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Dubai logistics suppliers that are highly scalable are going to be targeted as they will be able to fully support the changing conditions of the market. Availability of stock, planning demands beforehand and FMCG understanding will become much more critical. Much of the multi-national companies which includes Starwood and McDonalds already have their scalable solutions set up.

Dubai will face massive challenges as they embark on the journey to make Expo 2020 a success. However, logistics challenges are being tackled by planning ahead of time and making predictions about crucial statistics. Estimating the number of people who will arrive for the Expo 2020 gives a good estimate of rising demands, thus they need to keep up with these demands by keeping supplies high at all times.

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