Logistical challenges might arise in the coming months on Qatar's consumer supply side and the logistical footprint will have to be planned out in order to reduce delays in ‘last mile’ deliveries to consumers, researcher ValuStrat has said in a report.

During March and April, limited hindrances to food supply chain was observed due to the existence of buffer stocks. While there were some major readjustments to non-food supply chain due to existence of strict social mobility measures in exporting countries.

In the medium-term, when the retail market will be in recovery stage reliable routes will have to be established in order to contain the shortage of stocks and maintain a steady flow of goods. There might be increased reliance on local manufacturers to fill the gap particularly for essential products, ValuStrat noted.

Retailers of non-essential products will have to realistically forecast sales in the medium term to take into account changes in consumer demand in order to adjust supply chain routes so shortages or inventory built up can be avoided, ValuStrat said.

Logistical challenges might also arise in the coming months, it said.

There is a projected fall in the workforce within the short to medium-terms, and due to the existence of social mobility measures, the logistical footprint will have to be planned out in order to reduce delays in ‘last mile’ deliveries to consumers.

In addition, more businesses will be looking into E2E (end-to-end) or O2O (online-to-offline) supply chain visibility and resilience. All of this will have to be taken in account, to make necessary changes in supply chain and support the growing e-commerce sector.

The Government of Qatar signed agreements with some 14 food companies in May to raise the state's strategic stock of food commodities, which is considered sufficient to cover demand for a year, ValuStrat said.

The report noted Covid-19 boosted e-commerce in Qatar. As per the Ministry of Transport and Communications (MoTC), in 2019 60% of the consumers in Qatar had a desire to shop online. This referred to the extensive potential it had pre-Covid-19.

Due to the pandemic, e-commerce got an uplift as consumers forced to stay at home were motivated to rely on online channels. Retailers can leverage this trend and restructure their sales strategy, marketing tactics and supplier base to incorporate online sales platforms.

There is medium level potential for sellers of home and furniture, electronics, health and beauty to improve sales through online platforms, while high level potential for retailers of grocery and food products to expand revenue using e-commerce platforms, ValuStrat noted.


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