What are the top 5 challenges in the retail supply chain?

You will find the retail supply chain the busiest supply chain in every industry all around the world. They are constantly on a quest of doing innovations to keep serving the ever-changing needs of their customers. They also need to work consistently on the shift retail formats and the price and quality of the products. Al Maya supermarket is one of the biggest food distribution companies in the Gulf. It also ranks as one of the Top 10 supermarkets in UAE because of its service quality, product, delivery system, etc. 

Retailers need to monitor the supply chain closely to offer defect-free products to the customers. They must also try to have a low cycle time to make the different levels as smooth as possible. Some factors such as trade and tariff law, country-specific politics, quality control and international relationships affect the retail supply chain on a global level. The Al Maya supermarket is the best supermarket in Dubai that strives hard to provide world-class brands from around the globe to their customers. The retailers are constantly looking for strategies to help optimize their supply chain. Let us have a look at the top 5 challenges in the retail supply chain:

  1. 1. E-commerce platforms- The emergence and growth of e-commerce competitors like Amazon have also created great pressure on the existing supermarket business. The e-commerce platforms have attracted customers towards them because of their quality, price and service. This phenomenon further complicates the retail supply chain and increases the already existing challenges.
  2. 2. Profit margin is tight- The retail industry has the lowest profit margin across all sectors. This is because the retailers face continuous pressure to deliver a neat and thin profit margin. Therefore, many top executives are increasing profit margins on operations. But it remains a difficult task as the majority of customers are price sensitive. The increasing price of overheads, raw materials, and operations increases the misery of retailers. On the other hand, online shopping has allowed consumers to compare the prices of a product across various retailers. This makes it next to impossible to sell products at a high price. Thus, people prefer buying online or visiting the cheapest grocery store in Dubai. Meeting customer expectations- In the modern world, customers demand quality products at the lowest price available. Customers seek options and variety when purchasing a product. But retailers find it difficult to keep track of the demands of the customers as they focus on stocking up seasonal assortments and rages to keep them satisfied. It is a difficult task to satisfy customers who are scattered across multiple channels and markets. 
  3. 3. Inefficient operations- The best food distribution companies constantly work on their internal operations to keep providing quality products efficiently to the customers. Therefore, without a robust operations department, it is extremely tough to satisfy the customers. Retail companies require the latest ERP systems to keep their operations function up to date. 
  4. 4. Quality and compliance- Al Maya is one of the best food distributors in UAE because of their loyal customers who keep coming to their supermarkets. Now, the secret to having these loyal customers is to provide them with quality and compliance. Retailers need to gain the trust of the customers by ensuring quality products and complying with the rules and policies of the consumer bodies and government. This will mandate good quality standards that will attract more customers. 
  5. 5. Omni channel integration- Consumers shop from a minimum of three channels that varies in terms of cost and delivery schedule. The retailers must maintain a consistent supply chain across product quality, offering and customer experience. The inventory management and orders need to be streamlined for the functioning of a smooth business. Al Maya offers the best supply chain among the list of supermarkets in Dubai.