How the Festive Season Puts Pressure on Supply Chains
The holiday season is full of happiness and enjoyment alongside a lot of shopping. For many businesses, however, it also signals the onset of one of the most challenging times of the year. Demands from customers rise, triggering a chain of events and challenges, especially when it comes to the supply of products and delivery systems.
This puts a lot of pressure on supply systems and for companies to be successful in this peak period, there must be effective supply chain management.
If you’re drawn to logistics and supply chain management, consider joining the supply chain management profession. Supply chain management qualifications needed to enter this field are offered by the IMM Graduate School to equip you with the ability to overcome such challenges and perform well in the profession.
The Festive Season’s Unique Supply Chain Challenges
The holiday season elicits several supply chain aspects which may be challenging, such as:
1. Delays in Shipping
The increased amount of cargo carried out creates congestion with regards to the transport systems. Therefore, shipping gets delayed.
2. Out Of Stock Situations
Businesses selling to consumers or other businesses often find it difficult to manage their inventory during this time. However, when there is too much stock, such excess can lead to overstock expenses, while in cases of too low stock, customers and sales may be lost.
3. Changes in Consumer Behaviour
The tastes and preferences of consumers during the festive season may be difficult to predict. For instance, a certain product could be so popular that it increases the demand for that product to levels that the producers are not able to cope with.
4. External Factors
External factors such as a natural disaster, strikes or unemployment, or even the threat of crime, such as robbery, increase supply chain risk levels more during this time of the year.
These challenges highlight the necessity for effective planning and management techniques to enhance customers’ satisfaction and avert potential losses from sales that could not be made.
Strategies for Managing Festive Season Demand
1. Forecasting
Organisations can make use of historical data and forecasting techniques to predict consumer demands and manage their inventories accordingly.
2. Inventory Management
Achieving and maintaining the right levels of stock, and having reliable suppliers, helps retailers to adjust to changes in demand promptly.
3. Improving Logistics Efficiency
Improving core operations such as shipping and distribution may further reduce other forms of delays. For example, many e-commerce players have employed local partners for their in-house delivery in a bid to make use of the local infrastructure and reach their customers on time.
4. Communication with the Customers
Customers tend to appreciate the efforts made when they are informed about the availability of stock and when to expect restocking which helps calm discontent caused by delays.
The Role of Technology in Meeting Seasonal Demand
1. Predictive Analytics
In most cases, businesses using AI and machine learning can better forecast the demand for products and services.
2. Automation in Warehousing
Automated systems are designed to provide order fulfilment service efficiencies by eliminating errors introduced when fulfilling orders manually and facilitating the quick distribution of goods.
3. Real-Time Tracking
Modern technology enables real-time tracking of products, and this keeps customers informed thereby building good relationships through communication and reducing complaints that are service related.
By embedding such systems and methods into business processes, the pain of dealing with the busy festive season can be alleviated and operations have a better flow.
Preparing for Supply Chain Management Careers with the IMM Graduate School
The holiday period brings several challenges that underscore the need for professional supply chain managers.
In response to this demand, the IMM Graduate School provides robust and innovative supply chain management programmes aimed at training students to meet the challenges of this vibrant industry.
Why Choose the IMM Graduate School?
- Practical Learning: Learn how to navigate challenging seasons.
- Specialised Skills: Understand forecasting, as well as logistics and strategic planning around peak periods.
- Industry-Relevant Curriculum: Learn what is new in the supply chain industry.
The graduates in the supply chain management programmes offered at the IMM Graduate School are ready to face challenges like those presented during the festive season, ensuring that the businesses can still operate under pressure.
Explore IMM Graduate School’s supply chain management qualifications today.
Conclusion
The festive season comes with serious supply chain management challenges, and at the same time brings in opportunities for businesses. From a professional perspective, it also draws attention to the need for fresh skills and qualifications when it comes to the management of supply chains.
Are you ready to contribute to this important field? Then level up your skills with the IMM Graduate School and become a supply chain professional who can handle even the most stressful peaks of the year.