Major factors affecting food distribution companies in the UAE

The UAE is a dynamic market economy, and there is a variety of selling options available in the UAE. The most common sales approach is the appointment of a distributor or local commercial agent for the entire country or in specific emirates. Food logistics may seem easy, but the process involves a lot of complications. Studies from the Logistics Bureau have shown that 33% of food is lost or wasted during the shipping process, and perishable goods spend half of their shelf life being transported. Shipping is just one factor, there are various factors that affect food distribution companies in multiple ways. To understand the food distribution companies in the UAE we should first know what are the core factors affecting them.

1. Change in Customer Preferences

Food preferences in today's time have been majorly affected by the pandemic. People are turning to more healthy substitutes and the competition in the same area is increasing day by day. These drastic changes have made the distribution more challenging and unpredictable. Food distribution market players have elevated the marketing game to such a level that customers are spoilt for choice even as competition grows. This is making the customer base unstable and is affecting brand loyalty. In a quest to control customer attrition, food delivery businesses are deploying marketing strategies and tactics to increase engagement.

2. Unstable Market Prices

Apart from the customer base, food costs are also highly volatile. Several factors are responsible for the uncertainty of pricing in the food distribution market. Businesses dealing in food distribution are unable to track or keep up with market prices and struggle to find the right pricing strategy.

Along with inflation and rising revenue deficits of their partners, food distribution companies in Dubai also have to focus on adopting offensive or defensive pricing models to deal with their competitors. This puts even more pressure on margins and affects profitability.

3. Optimizing Schedules and Routes

One effective way to achieve scheduling and route optimization is to adapt advanced communication technology and tracking equipment. New technologies enable distributors to be more responsive to supplier and vendor demands by streamlining interactions and enabling partners to make quick changes to their scheduled deliveries. Some distributors may even consider offering discounts reflective of inventory they're trying to unload in a given area to further optimize delivery schedules.

4. Advanced technology

Even though the food distribution industry has witnessed the benefits of these technologies, most shipping companies are still struggling with implementing them. This is mainly due to the finances required and difficulty maintaining the technologies.

5. Smart Warehousing

With the rapidly changing world, staying one step ahead of your competitors will require you to keep up. Whether you are a well-established business or a start-up with limited resources to handle all your operations, hiring a third-party logistics company will come in handy.

Hence, at Almaya Distribution, we study every factor with detailed analysis to avoid such drawbacks in the future. This practice has helped our distribution company to process more efficiently and reliably for our customers.

So, if you are looking for carbonated or nutrition drinks in UAE, visit a nearby Al Maya supermarket and look for the brands mentioned above. They are not only nutritional but also delicious.