Key Takeaways:
- DMS automates inventory management. It facilitates accurate demand forecasting and reduces wastage.
- DMS optimizes logistics and reduces vendor-related expenses.
- DMS software centralizes data and ensures smarter decision-making.
In the UAE, retail companies work in a market where operating expenses have the potential to rapidly skyrocket. According to studies, energy expenditures alone can make up as much as 20% of operating expenses, which has a big effect on profitability. UAE merchants also face challenges such as inefficiencies in transportation and inventory management. This can result in losses of up to 25% of sales.
Consider a supermarket in Dubai that is having trouble with expired inventory as a result of overbuying. Additionally, imagine an Abu Dhabi fashion retailer that has to deal with expensive logistics due to delayed supplies. Although these problems are widespread, technology provides useful ways to deal with them.
Here are five ways UAE retailers can leverage technology to reduce operational costs effectively.
Automating Inventory Management : Reducing Wastage and Stockouts
Inventory mismanagement is a costly issue for retailers. Advanced Distributor Management System (DMS) tools can help automate inventory tracking. Furthermore, it improves demand forecasting and minimizes wastage.
Example :
Consider a Carrefour store in Dubai getting ready for Ramadan. They run the danger of overstocking perishable commodities and wasting them if they don’t have a precise demand estimate. Utilizing a DMS technology, they examine past sales data to make precise demand predictions, guaranteeing ideal stock levels and cutting losses by 20%.
Optimized Logistics for Faster and Cheaper Deliveries
Unpredictable delivery and a lack of supply chain insight are examples of logistics inefficiencies that can raise costs and cause operational disruptions. Retailers can increase delivery accuracy, track vendor performance, and centralize logistics data with a robust DMS software.
Example :
Imagine a fashion retailer in Abu Dhabi struggling with frequent shipment delays and unexpected stock shortages. By implementing a DMS, they get access to delivery monitoring and supplier schedules in real time. To guarantee that shipments arrive on time, the software also optimizes delivery schedules.
Workforce Automation: Saving Time and Boosting Productivity
Manual processes slow down operations and increase errors. Automating tasks facilitates processes like scheduling, performance analysis, and sales tracking.
Example :
Assume a Dubai-based electronics retailer automates its daily inventory counts. Employees may now spend more time helping customers, which improves service quality and significantly increases sales.
Centralized Data for Better Decision-Making
Fragmented data dispersed across several systems is a common problem for retail businesses, which can result in inefficiencies and lost opportunities. All operational data is centralized by a strong Distribution Management System (DMS), which offers a single source of truth for improved decision-making.
Example :
Consider a chain of supermarkets in the United Arab Emirates that has locations in Sharjah, Abu Dhabi, and Dubai. Each branch keeps different records for supplier performance, sales, and inventory. This makes it challenging to spot patterns or inefficiencies. The retailer compiles all of this data onto a single platform by putting in place a DMS. Additionally, it informs which products sell better in Abu Dhabi than elsewhere, allowing for targeted stock modifications. The outcome? Higher productivity, lower expenses, and more effective use of resources.
Data-Driven Decision Making for Smarter Operations
Retailers often miss opportunities due to a lack of actionable insights. Analytics tools within DMS and ISP systems provide data to identify cost-saving opportunities.
Example :
Consider a network of luxurious supermarkets that operate in the United Arab Emirates and other Middle Eastern nations, examining sales data to determine which products are slow-moving. They find that a high-end imported snack isn’t appealing to consumers. By swapping it out for something locally supplied, they save 15% on storage expenses and boost sales.
Make Efficiency Your Competitive Edge
Reducing operating expenses is crucial for maintaining competitiveness in the UAE’s changing retail sector. Businesses in the UAE can increase profitability, reduce inefficiencies, and streamline procedures by implementing technology like DMS and ISP.
Are you prepared to cut expenses and revolutionize your business? Discover how Nural’s innovative solutions can help you achieve operational excellence. Schedule a demo today.
