Unlike the customary trend, the UAE anticipates a 10 percent reduction in consumer spending this holy month, as reported by Redseer Strategy Consultants.
Yet, according to Arabian Gulf Business Insights, the majority still hold a positive outlook on the month's potential, particularly in the retail sector.
In light of the latest demand projections for the upcoming weeks, our team has compiled this guide to assist retailers in fine-tuning their inventory during Ramadan.
Optimizing Inventory During Ramadan: Best Practices
In the warehousing sector, Ramadan brings unique challenges to supply chain logistics and distribution operations. Consumption patterns change dramatically, with increased demand for food and grocery items building up to Iftar each evening. Throughout the month, warehousing and distribution operations need to be adjusted to ensure efficient last-mile delivery and omnichannel fulfillment, despite increased road traffic and potential restrictions. Here are some of the best practices for optimizing inventory during Ramadan:
1️⃣ We choose warehouse spaces with modular shelving and movable partitions to swiftly reconfigure layouts and accommodate varying product sizes and quantities as demand dictates.
2️⃣ Systems like Dematic's modular conveyor system are particularly beneficial as they can be easily reconfigured to accommodate changes in product types and order volumes typical of the Ramadan season.
3️⃣ Scalable automation solutions like UiPath for Logistics, HighJump WMS, or Swisslog AutoStor can be adjusted for varying order volumes, allowing for efficient handling of both predictable and unexpected surges in product movement.
4️⃣ Ordering 5–10% above average inventory levels of Ramadan essentials like food, beverages, clothing, and gifts will account for any surge in demand. In fact, some prefer to employ statistical models like Economic Order Quantity (EOQ) to determine optimal quantities.
5️⃣ Implementing dynamic reorder points based on actual consumption rather than forecasts can trigger automated restocking when inventory reaches predetermined levels. The integration of point-of-sale data enables real-time visibility.
6️⃣ We prefer to allocate safety stock across different warehouses to redirect products quickly to meet localized demand. Also, collaborating with vendors to swap slower-selling regular stock with Ramadan best-sellers is always beneficial.
7️⃣ Just-in-time (JIT) inventory management is critical for maintaining minimal Ramadan stock levels. Advance ship notices and daily inventory synchronization with suppliers reduce excess inventory carrying costs while preventing stockouts. This is to meet fluctuating delivery volumes, especially for FMCG e-tailers who must meet on-Iftar and on-Sahur deliveries.
8️⃣ To meet these delivery windows, planning additional inbound shipments and strategic staffing ahead rapidly replenishes fast-moving products and allows us to handle the load while respecting the fasting practices of the workforce during the holy month.
9️⃣ For JIT to be successful, we incorporate real-time tracking with responsive replenishment systems using IoT sensors and RFID for precision inventory monitoring and automated restocking. This caters to real-time demand fluctuations and reduces stockout and overstocking risks.
🔟 Cross-docking inventory allows for continuous replenishment so that products can be received, sorted, and shipped directly to stores without sitting in warehouses. This reduces carrying costs and eliminates stockouts.
Last-minute Warehousing and Distribution Services in the UAE
At Vervo Middle East, a premier logistics company in the UAE, we offer warehousing and distribution solutions customized for the pressing demands of the Ramadan season in the UAE; How can we help?
✔️ Specialized storage facilities for perishables and FMCG.
✔️ Specialized deliveries: expedited, same-day, and next-day shipping.
✔️ Proactive inventory management with advanced WMS with fast-track fulfillment in peak times.
✔️ A suite of added value logistics services: customs clearance, real-time tracking, and insurance.
✔️ Reliable last-mile delivery with extended hours to meet pre-Iftar, Suhoor, and post-Taraweeh orders.
Streamline your logistics and distribution this Ramadan with last-minute logistics solutions — Our team is dedicated to providing an exceptional logistical experience. Connect Today!
Fill the free quote form to request a FREE quote, or email our team: