Mazen knew that due to increasing demands especially in Dubai pharmacies and increasing
cost of transportation of goods from Sharjah to Dubai, XL distribution network in Dubai is not
working efficiently leading to high-operational cost (Figure 1). There is also an issue of an
ineffective computerized system. The current system is an independent computerized
system used for day-to-day sales, transaction and stock update information. Thus, the
coordination between branches and knowledge transfer between the individual pharmacies
is often limited, with only a direct communication between the head warehouse and
pharmacies.