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March 16, 2021

Challenges faced by the logistics sector in Dubai

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Any economy would require a strong logistics sector to function properly. Despite the logistics and transportation sector of Dubai being strong, there are a few drawbacks. Every sector faces challenges.

What matters is how it deals with the situation and emerges stronger. It seems to be a difficult way for smaller enterprises in today’s time, owing to the cut-throat competition that they face from the big industrial giants.

Balancing transportation costs

Transportation costs can get quite tricky if not handled in time. The transportation cost accounts for approximately thirty percent of the total cost.

  • With the fuel prices at an all-time high, it is getting more difficult to manage the expenses.
  • The logistics sector in Dubai is quite big, and the trucks travel long distances.
  • This leads to increased expenses that can accumulate into a bigger sum for the entire shipment.
  • The total expense includes the bulk rates, fuel expenses, etc. All of this needs to be taken into consideration to avoid any excess costs.

Poor customer service

Customer service is one of the most crucial aspects of the logistics business. However, every company needs to make sure that it retains its loyal customer base. In order for that to happen, every business should improve its customer service policies to keep its customers satisfied with it.

Poor customer service may include not picking up calls promptly or resolving issues at the correct time. This can lead to customers being disappointed and can become a challenge to the logistics sector to maintain their reputation.

Standardizing customer service is essential in this case. It would ensure that no customer is left dissatisfied, and every company gets its chance to flourish.

Lack of technological advancement

Technological advancements all around the world have become primary for running any business.

  • As for the logistics sector, these technological developments must be put to use.
  • Not adopting these can lead to a failed business system as the whole world runs on data now.
  • Right from keeping track of the inventory to setting up the customer database- technology is important at every step.
  • Those companies that fail to adopt these changes end up facing multiple issues.
  • Understanding and incorporating new technological advancements should be on the top of the list for any business.

 

These help in multiple ways, such as on-time deliveries and keeping track of the payments without much hassle.