How Retailers Can Keep Up With Consumer Demand This Holiday Season
This time of year, around the time that summer comes to an end and we round the corner of another year, retailers prepare for their busiest season yet: the annual holiday season. Under normal circumstances, this is a relatively stressful time of year for just about everyone, but this year is forecasting to be particularly stressful for all parties involved in the retail supply chain.
It’s certainly not lack of demand that is the problem. In fact, it’s quite the opposite. Consumer demand is at an all time record high. So much so, that demand has disabled supply chains from recovering. The supply chain is not able to keep pace with demand and as a result, the supply chain has found itself in a never-ending game of catch up.
“Covid has turned supply chains on their head,” said Neel Jones Shah, global head of airfreight for Flexport, a logistics technology company. “We’re seeing an astronomical rise in shipping rates, a dramatic lengthening of transit times and a logjam of cargo at every port. Shippers are scrambling to figure out how to get their goods to market in time for the Christmas selling season.” (Forbes)
Ready or not, the holiday season will arrive sooner than we expect. According to the National Retail Federation, each year about 40 percent of consumers begin their holiday shopping before Halloween. This year, as looming uncertainty prevails, retailers must prepare as early as possible and stock shelf space with the most in-demand products to keep customers happy and the unhappy complaints to a minimum. Small businesses and retailers alike must maximize working capital, inventory, assets, and raw materials to navigate the chopping waters ahead and put their best foot forward.
They say retail is a game of supply and demand. With so much ambiguity around this upcoming holiday season regarding trend forecasts, clogged port, and historically slow shipping delays (to name a few), supply chains must utilize all available resources to position themselves to not only survive the supply chain nightmare, but to surpass and transcend the volatile landscape. But, how?
Our client-tailored supply chain finance solutions are created for Buyers and Sellers to unlock peace of mind in any circumstances, certain or uncertain. A revolving credit facility provides users with sense of security and a safety net, something that just about everyone needs right now. Our supply chain finance programs enable suppliers to be paid early, before payment is due, which in turn, frees up cash flow and prevents capital from getting stuck in transit. That extra cash flow can be used in a number of different ways such as to forecast demand and audit inventory management accordingly.
Bridge the revenue cycle. For more information on TradeRiver USA’s unique supply chain finance solutions please contact us at info@traderiverusa.com!