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

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