Challenges and Recommendations for Global Logistics and Transport in Panda Retail Company

This document discusses the major challenges faced by Panda Retail Company's global logistics network and provides recommendations to overcome them. It covers the background of Panda Retail Company, its products and services, and the retail market of Saudi Arabia. The challenges include transportation cost, leading change and improving business processes, enhancement of customer service, monitoring the supply chain, adequate finance, sustaining the economy, and technological progression.

Global Logistics and
Transport

Contents
INTRODUCTION...........................................................................................................................4
Background of Panda Retail Company............................................................................................4
Products and services offered by Panda Retail Company...........................................................4
Retail Market of Saudi Arabia.....................................................................................................5
Major Challenges faced by Panda Retail Company’s global logistics network..............................5
Recommendations............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Global Logistics can be defined as term, which includes different processes like movement
of final entities from one place to another with the help of various transporting related facilities.
Train, truck, ship and plane are said to be the good examples of transporting facilities, which are
used by most of the organisations to distribute products among different national and
international areas (Antonowicz, 2020). Including this, the company that has been taken into
consideration is Panda Retail Company and this firm was found in the year of 1978.
On the other hand, Panda is one of The Savola Group’s subsidiaries and this particular group
was basically ranked 9th among hundreds of companies which are working in retail market of
Saudi Arabia, Egypt. Away with this, organisation’s supply chain and logistics department has
faced a range of challenges and some of them are going to be presented in this report. Including
this, there are a range of recommendations will also be given to Panda through which they can
easily turn challenges into opportunities.
Background of Panda Retail Company
Panda Retail Company was found in 1978 and in today’s market it is recognised as one of
the leading organizations in retail sector in the Kingdom of Saudi Arabia. In the year of 1994,
due to some circumstance Panda basically merged with Azizia Company and become Azizia
Panda United. Also in 1998, Panda Retail Company was acquired by Savola Group, a leading
retail company specializing in food products and immediately revolutionized its business model.
Away with this, it has been observed that that Panda Retail Company has started dealing with a
range of difficulties which led this firm to face low productivity and profitability as well. There
are a range of challenges, which needs to be changed among different opportunities in order to
fulfil the desired objective i.e. to improve profit ratios in much effective and in efficient manner
(Ceniga and Sukalova, 2020).
Products and services offered by Panda Retail Company
With a focus on higher quality, Panda Retail Company specifically introduced in the year of
2009 where they have developed an effective portfolio of a range of private labelled products
and services, that were specifically ranged from non-food, personal care, food, beauty care and
home care related products as well.

Retail Market of Saudi Arabia
Saudi Arabia retail market is projected to show a CAGR of around 6% during the gauge
time of 2019-2024, developing from $ 112.9 billion of every 2018 to $ 159 billion by 2024, by
virtue of expanding individual discretionary, change in utilization design from staple food
towards better food, and moving spotlight from reliance on fuel to different areas (Dębicki,
2020). As far as item class, Saudi Arabia retail market has been ordered into food and
refreshments, attire and footwear, machines, adornments, drug store and others (Cichosz,
Nowicka and Ocicka, 2020).
Of these, food and drinks class represented an almost 33% piece of the overall industry in
2018 and the section is foreseen to keep up its market predominance during the gauge time
frame.
Figure 1: CONSUMER GOODS AND RETAIL
Major Challenges faced by Panda Retail Company’s global logistics network
Transportation Cost:
One of the biggest challenge for Panda Retail Company is to reduce the transportation
cost in order to carry out the operations related to the transpiration and logistics in the minimum
budget. The fuel prices are on peak and the logistics department of the respective company has
no control over the hike in the fuel prices. Thus, they need to bear with the same and control or
limit the fuel expenses so as to adapt to the budget designed for the same. The carrier charges are
high and the company needs to incest in the same so as to reach out to the global customer base

and deliver the products and services of the company effectively (Golnar and Beškovnik, 2020).
Sometimes, the company consolidates the shipment which leads to delay in the deliveries which
in turn adversely impact the retention and satisfaction of the consumers of the business
enterprise. In order to minimise and eliminate such cases, organisations need to rely on heavy
budgets which in turn enhance the transpiration expenditure incurred by the company.
Leading change and improving business processes:
The improvement and modification in the business processes and procedures is one of the
prevailing challenges for the Panda Retail company as the inability to do the same can impose
major threats on the growth and development of the company in its respective industry. It is very
essential for the individuals working in the logistics department to be well aware about the
functioning of the same. The department needs to have knowledge and competencies to analyse
and cater on the far side of the supply chains so as to implement necessary alterations and
modification in the operations of the business organisation. Since, the market environment of the
retail business is very aggressively competitive in nature so it becomes a necessity for the
company to manage and lead an effective and productive global logistics network in order to
cater to the large number of customers engaged with the respective company (Grant and
Chaisurayakarn, 2020). The business processes and procedures established by the business
organisation also needs to be flexible and financial stable so as to bear the uncertainties and risk
in the market envir5onment of the concerned business organisation. Thus, it can be said that
leading changes and improving the business processes is a big challenge for the Panda retail
company and the respective company needs to work hard on this challenge so as to combat and
overcome the same in the future run.
Enhancement of customer service:
Customer services is a major component of a company's success. In the recent times,
customers’ expectations from the business organisation have increased and the respective
consumers want the best services being catered to them in order to raise the standard of the
consumer experience. Since the market is dynamic in nature and the uncertainties associate with
the same has increased lately, it as leads to various challenges for the operations and functioning
of the supply chains taken into consideration by Panda Retail Company (Kotsios and Folinas,
2020). The supply chains are taking longer time phrase in order to make the good available to the
end consumers of the business enterprise. The delivery timing of the products is also adversely

effected by the same. Since, the supply chains are operating at a low pace, the service quality of
the company is also getting hampered due to the same. The customers’ expectations in relation
with the logistic department is to cater the best quality products and services within the minimum
time frames so as to enhance the overall experience of the customer. Thus, it becomes a
requirement for the Panda Retail company to hire the right individuals at the right positions with
the right skills in the logistics department who are able to solve the concerns and queries of the
consumers. The workforce of the logistics department should work to increment and
enhancement of the experience of the consumers across the global network(Kumar and
Anbanandam, 2020).
Monitoring the supply chain:
The improvement in the supply chain visibility is essential in order to implement
appropriate and accurate operational procedures which provides assistance to the concerned
company in facilitating right time deliveries. This is a difficult task for the company as it requires
a lot of time, money and expertise. The company needs to monitor and increase its visibility
towards the entire process of the supply chain management so as to make sure that the products
and services catered by the company are being positions at the right place and the movement of
the same is taking place accurately. It is required that the company effectively track the routes
and schedules of the shipments so as to identify any barriers that restricts the movement of the
same in the company. The company needs to identify the deviations that impose implications on
the supply chain management of the respective business organisation. It is very important for the
company to update the respective customers about the shipment details and expected date of
delivery so that the consumers are ready to receive the same (Nascimento, Rigatto and de
Oliveira, 2020). This particular challenge can be eliminated through the incorporation of some
measures that can facilitate in the smooth monitoring and operations of the supply chain
management of the Panda Retail Company.
Adequate Finance:
Acquisition of the finance in order to operate the logistics operations of the company
worldwide can be a challenge for the Panda Retail Company. The company is expected to
require huge investments so as to lead the logistics operations around the world. There have been
numerous cases in the retail industry wherein the business organisation may run out of finance or
their financial budget get disrupted due to to the heavy payment incurred by the same while

carrying out the logistics functions. The panda retail company needs to learn and gain relevant
insights through these examples in order to formulate effective budgeting plans which can
facilitate the company in running its logistics operations productively so as to reduce the
interruptions in relation with the same (Peters, 2020).
Sustaining the Economy:
In order to maintain sustainability in the organisation Panda Retail company is focusing
on eliminating waste disposal in high amount because of the regulations imposed by the
governing body of Saudi Arabia as a domestic market. As the organisation is working globally,
the enterprise has to bound by the rules and regulations of other governing bodies as well in the
respective country it is performing its operations. Along with the impositions by government,
this also helps in reducing the cost as major of the waste can be recycled. The organisation is
facing many issues in complying by the routes of delivery, maintaining loads, reducing
emissions and selecting replaceable fuel which is highly affecting the terms of survival in the
market of Saudi Arabia. As heavy loads are required to be transmitted from enterprise to
receivers or consumers, the managers have to comply by various measures. Some of the
compliances that are required to be followed are adopting high efficiency trucks with upgraded
and high performing engines, high mileage, less pollution causing and others. The trucks of latest
model should be well equipped and upgraded with techniques that were lacked beforehand. This
will enable in enhancing the business and can cater the flexibilities of environment. Complying
by all these issues and challenges in an appropriate manner that lead to meeting the global
logistics and establish a good brand name in market (Temjanovski and Jovanov, 2020).
Technological Progression:
It is highly required for an organisation that wants to remain in the good books of market
and its consumers to go hand on hand with the various technological developments that is going
on in the market and they need to adopt them so that they are able to cope up with the global
logistics. As the enterprise is dealing in wide variety such as grocery store, foods and beverages
and others which are considered a significant for human living. When an organisation is dealing
globally, it has to undergo various technical advancements and has to come up with them so that
international logistics are developed which helps both the organisation and economy as well. To
maintain with the global advancements robotics and autonomous machinery has been also
developed by many retail company so that work is eased and cost is reduced. Despite of using

such techniques, an enterprise can face challenges like trouble in learning and implying the
related techniques in executing the same. Introducing various technical developments will enable
feasibility in tracking the shipments so that delivery can be customised if required. This can
enhance the consumer experience, improvise operational efficiencies and promote safety and
security measures. At times companies lack trained manpower to imply various robotics and
autonomous machinery and face challenges. To reduce this a proper training session should be
conducted thus making the work force habitual with the technical advancements so that company
can go hand on hand. In today's era which is highly flexible and to keep up with this, technical
knowhow is required to be updated.
Recommendations
As per the context it has been advised that there are so many modes for the company to
manages these challenges:
 It is advised to the company Panda Retail in order to maintain these challenges they can
minimise their cost and price of transportation. Minimising fuel expensing develop more
profitability because the company cannot control the fuel prices but they can control the
fuel expenses.
 As per the challenges they can also develop and enhance the procedure of business in
order to improve its challenges. It is advised that they should acquire more effective and
efficient strategies to direct the business smoothly.
 To increase their productivity and growth it is advised that the company panda retail
should focus on financial sector means they are required to be more financial stable and
flexible (Zhang and Schramm, 2020).
 To grab wide range of customer base in order to improvise these challenges they are
advised to increase and improve their consumer services because as they are operate in
international level and the market or industry re much dynamic now a days so the supply
chains has become more complex and the requirements of the customers has been
changes so it is much require for the company to maintain and improve the customer
services in order to attract much consumers because consumers are very important for the
company to grow in the market.

 It is also advised that the company should develop and enhance their supply chain
visibility because in order to get correct and exact information of their deliveries time the
company are required to have entire visibility on every aspects of the chain of supply.
 To maintain the challenges of supply chain finance, the company is advised to assure
clean and clear business activity and the improvement of cash flow management. The
maintain the supply chain of finance is much important for the company because of in
today’s period there is some unexpected custom duties, fluctuations in rates and price,
some natural disaster and many more so this is reason company is advised to focus on
this challenges.
 The Panda retail company is also advised to use their resources in a very efficient and
sustainable way because the wastage of resources create impact on environment so for
maintaining these wastages they required to maintain sustainability.
 In the Panda retail company there is deficiency effective coordination and also lack of
advanced technologies so they are required to maintained the coordination among the
management team because they give much and effective outcomes to the company.
Nowadays consumers want more advancement and much facilities so it is become more
mandatory for the company to improve the technology advancement because technology
advancement help the company to raise and increase their productivity by reducing their
efforts and by applying more technologies (Peters, 2020).
 To improve and minimise the effects of these challenges they should focus on these
recommendation of minimising cost, time, and some more because that will help the
company to increase their productivity.
CONCLUSION
With the help of above mentioned report, there are numerous challenges prevailing in the
market environment of Panda Retail Company such as transportation cost, supply chain
management, enhancement of customer service, modifications in business process. Company is
required to come up with various strategies in order to combat and effectively overcome the
mentioned challenges.

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