Dubai has been considered the hub for international trading and transport logistics for quite a few years now. A steep amount of growth has been noted in the concerned areas; however, this also brings forth troubling challenges in front of the nation. Trade of goods in the Far East, whether export or import, has brought several complexities into the supply chain systems. New products are being launched at a faster pace than ever, but the life cycles of already established goods are also deteriorating. Following are some of the challenges that the logistic service providers in Dubai have to face:
Cutting transportation costs has continued to be one of the most significant strategic challenges in global logistics. Since it constitutes a major portion of the current expenses, it is the biggest challenge for the logistics companies in Dubai.
Due to the high surge in fuel prices, it has been considerably difficult for the logistic service providers in Dubai to contribute well to the ‘cutting transportation cost’ concern. Higher fuel prices are a backlash to transportation costs as it constantly pushes up the fuel surcharges. These prices will significantly affect the cost of wages and transportation for shippers.
Business process improvement
The satisfaction of a customer by a company is essential for its success in the industry, but many times, it is not convenient for the service providers to fulfill all those requirements. Today’s customers expect certain features when they order from your online store.
Every day we experience the onset of some kind of new technology which many of us are not familiar with. The same type of challenge is posed by the logistic service providers in Dubai, as it has become quite difficult for them to stay on top of new advances for business processes. However exciting these new technologies may sound, adapting to them, and on boarding them in their work is a dilemma still faced by many.
It has been a prime concern for many of the big businesses to reduce greenhouse gas emissions, and ultimately focus on the conservation of the environment for the collective good of the people. Numerous studies have shown the negative impact big business supply chains have on the environment. Logistic service providers in Dubai that have adapted and reduced their carbon footprints have succeeded better because both partners and consumers are more aware than before.
Another challenge in today’s logistics industry is managing manpower. Dealing with workers, warehouse staff, drivers, and transporters are some of the essential tasks that require completion on a daily basis. They should be handled in a respectful and efficient manner, and also provide them with the cooperation and teamwork they need to get their work fulfilled. It is highly recommended to ensure a smooth functioning inside the company by providing managers in significant locations and quality communication.
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