We’re all familiar with the fact that Ramadan is one of the busiest times in Middle Eastern countries. As work hours decrease, there’s a noticeable surge in both online and in-store shopping during this period. If you aim to capitalize on this opportunity, it’s crucial to ensure your supply chain and logistics operation align to rising product demands.
In this article, we’ll give you some tips for effective logistics management during the Holy Month. So, keep reading.
Ensure Timely Shipping
Despite shorter working hours and reduced business activity during the holy month of Ramadan, consumer demand typically surges. Hence, it’s imperative to avoid any product shortages in the market, as this could lead to losing customers and revenue to competitors.
If you opt for sea freight, whether it’s LCL or FCL, for international shipments to countries observing Ramadan, it’s recommended to plan well in advance. Aim for your goods to reach the destination country at least a week before Ramadan begins.
While air freight offers quicker delivery, it’s still advisable to arrange for your goods to arrive well ahead of time, considering the increased demand during this period.
Reasons to Ship in Advance
Secure Ample Inventory in the Market
As previously noted, shipping well ahead of time guarantees a sufficient inventory presence in the market, preventing stockouts during peak sales periods. With heightened purchasing activity in Middle Eastern countries during Ramadan, insufficient stocks would be highly undesirable.
Reduced Customs Clearance Hours
In many Ramadan-observing countries, customs authorities, like other businesses, operate on shorter schedules. This can potentially cause delays in the port clearance process.
Reduced Business Operations
In numerous Ramadan-observing countries, working hours are reduced during the fasting month, resulting in slower business activities. This applies to various logistics companies, customs agents, brokers, and shipping firms, all operating for fewer hours. Consequently, work accumulates, yet the limited working hours contribute to overload and delays.
Increased Shipping Rates
With everyone aiming to capitalize on the Middle Eastern markets during Ramadan, there’s a surge in demand for space in shipping lines, airlines, and roadways. Consequently, shipping rates typically rise during this period to accommodate the heightened demand.
Demurrage, Damages, and Delays
Due to reduced working hours at customs offices, shipment processing may exceed expected timelines. This situation could result in demurrage charges, potential damage or loss of goods, and delays to your consignment.
Hence, to guarantee smooth operations and capitalize on the vast opportunities in Middle Eastern markets, it’s imperative to implement effective logistics management during Ramadan, particularly for international shipping.
Develop an Inventory Storage Strategy
For businesses like yours, which have proactively shipped goods in anticipation of heightened shopping demand, it’s crucial to devise a plan for inventory storage and distribution to maintain market readiness. Given the accelerated movement of goods during this period, engaging a warehousing provider adept at swift storage, distribution, and reverse logistics is paramount. While you may already have a warehouse service provider, the increased storage requirements during this time may necessitate additional space. In such instances, consider either expanding your current provider’s capacity or seeking out another third-party warehouse provider, such as Total Freight International.
If your products are sold both online and in-store, effective management of distribution and reverse logistics becomes essential. With an expected surge in orders, returns are also likely to increase. Entrusting your inventory management to a third-party logistics provider can prove advantageous in navigating these challenges.
Reasons to Have an Inventory Plan
Ensure Product Availability
Having an inventory plan in place prevents potential loss of business to competitors by ensuring timely availability of stock at the right time and place. With a well-established inventory plan, you can anticipate in advance whether your stocks need replenishing and allocate sufficient time to take appropriate action.
Streamlined Distribution and Returns
Opting for a third-party warehouse service provider offers enhanced experience, expertise, knowledge, and infrastructure to address heightened customer demands, ensuring prompt delivery and efficient returns management.
Customer Satisfaction
While some delays in delivery may be expected during Ramadan, excessive delays could have detrimental effects. Given the intense competition in the retail and e-commerce sector, ensuring effective and timely delivery is crucial for fostering customer satisfaction. Keeping your customers delighted should always be a top priority.
TFI – Your 3PL Partner for Ramadan and All Seasons
Ramadan is in full swing, so make sure you’re all geared up to capitalize on this season. A third-party logistics provider, such as ourselves, can assist you with comprehensive logistics solutions to optimize your outcomes.
With our global freight forwarding network, ISO-certified processes, customs-bonded warehouse facility, 30+ years of experience, and in-house team of customs experts, we’re equipped to ensure seamless operations for your supply chain throughout the Holy Month and other peak seasons.