The Christmas Supply Chain
The annual commercial holiday of the year, Christmas. Many supply chains have kicked into high gear to satiate consumer’s heightened demands. Manufacturers, suppliers, and third-party logistics providers are anticipating challenges within the supply chain to proactively combat them and fulfill consumer orders
According to the National Retail Federation, 2019’s Christmas gross spending is estimated to beat 2018’s $730.7 billion by 3.8 - 4.2%. U.S. consumers are expected to spend roughly $1,048 on average for holiday gifts. Retailers are forecasting and prepping for a strong season.
See Holiday Consumer Spending Chart below:
Maintaining an agile supply chain is crucial during this time of year for manufacturers and suppliers in industries such as retail in order to fulfill consumer expectations, over-deliver to ensure returns, and meet the market’s spike in demand.
To avoid and eliminate breaks in the supply chain, internal operations and departments must be streamlined. Companies are increasingly optimizing inventory to maintain pace, manage stock, and help fulfill orders efficiently. Creating blueprints that hold everyone accountable and, on the same page, has helped companies align historical sales data with market intelligence to inform operations. To seize opportunities, the supply chain must be receptive to market changes and consumer trends/demand.
What determines the success of a supply chain is its ability to appropriately maintain the right amount of stock to maximize sales and simultaneously mitigate risk. The ultimate key to success is striking the right balance between the cost of carrying extra stock and managing the risk of running out of stock.
While companies spend their year planning for this holiday season, it’s important to consider how your supply chain can best produce and execute to contribute added value to the consumer holiday experience.