Prepare companies for Christmas business

The Christmas business is fast approaching us. Don’t let this fast-paced, volatile season cause problems for your business. Research the latest consumer spending trends (preferably twice) to ensure you’re ready across your entire value chain.

According to a recent Opinion poll by Deloitte Development LLC, two-thirds (66 percent) of respondents plan to do their holiday shopping the week of Thanksgiving (up from 49 percent in 2022) to take advantage of special offers during Black Friday and Cyber ​​Monday week (BFCM). to benefit. A recently published one NRF Study came to the same conclusion with over 196 million holiday shoppers shopping over Thanksgiving weekend last year.

NRF also finds that most holiday shopping occurs online (58 percent), followed by brick-and-mortar stores (49 percent), discount stores (48 percent), and grocery stores and supermarkets (44 percent). Vouchers continue to be very popular (55 percent), followed by clothing and accessories (49 percent), books, video games or other media (28 percent) and personal care or beauty items (25 percent).

The turbulent Christmas business with its peak demand and logistics problems is no real surprise to anyone. However, supply chain disruptions in the form of empty shelves and backorders undermine customer satisfaction.

Analyzing consumer data helps manufacturers and retailers identify risks in the supply chain and take proactive measures in the form of contingency plans to avoid potential problems or delays.

Forecasting customer demand

For Christmas business, accurate demand forecasts are essential to enable efficient logistics chain management, especially during BFCM week and at the start of the Christmas season. As purchasing patterns change due to economic uncertainty and potential demand spikes, accurately predicting demand remains a challenge that also makes optimal inventory management complex.

The use of AI in the supply chain can contribute to a resilient and sustainable supply chain by allowing you to quickly forecast and adapt to customer demand. It also improves operational efficiency through AI-powered visual inspections, anomaly detection, and intelligent automated scheduling, increasing overall production efficiency.

Identification of alternative sources of supply

Events like that Drought in Panama and production outages at Toyota factories show once again how vulnerable the global supply chain is, especially when companies only have a single source of supply.

However, to minimize risks and have stock available more quickly for the holiday season, companies should work with multiple suppliers and contract manufacturers in multiple regions for their key materials and products to avoid production outages or delivery delays.

Optimization of transport and logistics

During the stressful BFCM week and the Christmas season, there may be transport bottlenecks as many companies have to deliver at the same time.

With help of a Transportmanagementsystems (TM), companies can not only better manage their vehicle fleet, but also optimize transport routes with real-time GPS data. Deliveries not only arrive on time, but also cause fewer CO2 emissions and transport costs.

In addition, the information collected can be used to issue traffic warnings at an early stage and to develop suggestions for alternative routes to reduce the risk of delays.

more transparency

A real-time overview of the entire logistics chain plays a crucial role in successful Christmas business and satisfied customers. This transparency provides insight, monitoring and optimization at every stage, from raw materials to delivery, reducing inefficiencies and product recalls.

With the help of modern technologies such as AI, companies can ensure a pleasant shopping experience during the holiday season while setting the course for growth in the new year.