Ho! Ho! Ho! The holiday season is here!
The holiday season puts much pressure on parents and the retail industry. Almost 30% of the annual demand happens between Black Friday and Christmas. Insiderintelligence projects this year’s US retail sales will reach 1.26$ trillion, which puts a lot of pressure on the supply chains.
There are promotional strategies, supply competition, customer demands, and delivery delays that must be considered while making a successful replenishment plan. The bottom line is that the supply chain must be designed to handle a high rise in demand during the upcoming holiday and promotional season. Let us discover some factors that need to be considered in which supply chains can be designed to handle high demand during the upcoming holiday and promotional season.
Customer Analysis
With several last-minute shoppers, many shift their brand loyalty during the holiday season. The organization must analyze customer data and project their buying habits beforehand. Key decision-makers can formulate promotional strategies and supply plans based on customer data. Monitoring the customer reports can help to forecast the demand and supply and can help to maintain adequate stock to avoid shortages.
Delivery and E-commerce
Lockdown made customer demand fast deliveries, and with online presence availability. Due to the increased parcel volume, some shipping providers charge seasonal supplements for their different services, with unstable tracking information. Moreover, because of the large number of orders, parcels may be damaged or even lost, which retailers need to prepare adequately.
Inventory Planning
Ineffective inventory planning processes can lead to other challenges for products and brands. Without the right solution, there can be a shortage or overstock, which can be harmful, especially during the holiday season. A robust solution equipped with AI can help companies build a better and more resilient supply chain.
Equipment Check
When it’s the peak time of sales, the addition of carts, technology, and forklifts, among others, are usually made to escalate productivity. So, checking and re-checking all the new installations and equipment is vital. So, it’s advisable to double-check equipment, procedures, and technology until the end of the holiday season.
Supply chains are under a lot of pressure during the holiday season, with around 43% of consumers shopping before the big day. We hope our checklist makes everyone’s Christmas a little bit merrier!
