The holidays can be a turbulent time of year for many businesses, especially those in manufacturing that experience high levels of demand volatility due to seasonal fluctuations. As customers seek the best deals and compare prices across different retailers, it is important for businesses to be agile in their approach and quickly adapt to deliver superior customer service.
Experts predict this year to be challenging but successful. Holiday retail sales are likely to increase between 3.5% and 4.6% in 2023 for the November-January timeframe, according to Deloitte’s annual holiday retail forecast. Deloitte also forecasts e-commerce sales will grow between 10.3% to 12.8% year-over-year during the 2023-2024 holiday season. This will likely result in e-commerce holiday sales reaching between $278 billion and $284 billion this season.
In this White Paper, we will discuss strategies on how businesses can successfully manage demand volatility during the holiday season through innovative tactics such as predictive analytics, omnichannel capabilities, and real-time product availability management.
Armed with these strategies, your business will have all the tools to identify and respond quickly to consumer behavior shifts while delivering seamless customer experiences this holiday season. So let’s get started!
- Utilize Data to better anticipate demand in the current season– Data is an invaluable asset in demand planning during the holiday season. By analyzing supply and sales data, businesses can identify patterns and trends that will aid in forecasting future demand.
- Strategically adjust inventory levels based on historical and anticipated sales for specific holiday items– Manufacturing products for the holiday season can be a tricky task. Striking the right balance between inventory levels and anticipated sales is essential for a successful holiday season.
- Work with suppliers to increase supply chain flexibility to meet peak demand.- Maintaining a flexible supply chain during the holiday season presents numerous benefits. It allows businesses to quickly respond to abrupt changes in demand, ensuring that popular products are continually available and minimizing the risk of stockouts. This flexibility can increase customer satisfaction and loyalty, as consumers appreciate a reliable supply of desired products.
- Establish partnering relationships with other retailers or distributors to manage periods of high demand– While increased sales can mean more revenue, it also puts pressure on staffing suppliers to meet production schedules and fulfill orders in a timely manner. Partnering with other retailers or distributors can be a smart move in these situations.
As we approach another peak shopping season, successful retailers must recognize the importance of predicting and managing demand. Creating a sound inventory strategy requires analyzing past data, leveraging forecasting techniques, strategically adjusting inventory levels, utilizing sales promotions during peak periods, optimizing stock levels, and establishing partnering relationships with other retailers or distributors.
By taking these measures into consideration and remaining agile during this period of high demand, businesses can remain competitive and prepared for the upcoming holiday season. So what are you waiting for? Now is the perfect time to get started on creating your own actionable plan that anticipates peak demand. Doing so can help drive revenue growth while ensuring customer satisfaction—critical components of long-term business success.
Download our white paper to learn more about each these strategies to manage demand volatility during peak season.
