Cyprus is an island and as a result, the continental short and efficient trucking transit times and costs are not achievable. Sea freight and Air freight services are used to affect the transit time and the cost respectively
It is a favoured seasonal destination for more than two million tourists, three times the local population, which creates demand variations stretching to as much as 3:1 in monthly comparisons in specific areas
98% of the businesses in Cyprus are small and medium size enterprises. This fact is also reflected in the chilled, frozen and temperature controlled foods supply side as well as at the POS (Point of Sale) side. Additionally, part of the Cyprus market is consisted by local producers of chilled goods. As a result, the supply chain has more orders of lower values to many POSs thus adding to the logistic costs
Electronic ordering and invoicing is not yet developed in Cyprus. For this reason, the overall administration cost to both suppliers and retailers is getting increased