Many months of planning are involved in the November – December sales rush every year. So, what is different this year? Trading is almost exclusively online in the UK, except for essentials. It starts with the now-traditional Black Friday and Cyber Monday events and runs until after Christmas. Shopping behaviour has been forced to change from part-in-store and part online to mostly online.
Companies have been planning for this busy period for months, anticipating increased sales despite there being less disposable cash about due to job losses and reduced salaries. According to PwC, consumers were expected to spend 20% less during this period coming up compared to previous years. Retailers are tempted to discount TVs, smart devices, and other gadgets to attract the big spenders, the bargain-hunters and early Christmas shoppers. On the plus side, consumers enjoy the opportunity to compare prices, avoid crowds and get 24hour access to special deals, so all is not lost for retailers.
Warehouse planning and supporting logistics
Established E-commerce retailers will have already designed their operations to cope with the expected demand. Companies like John Lewis, Argos and Tesco have routines for hiring temporary staff for their distribution centres and logistics operations and have processes in place to support the increase in sales. Amazon and Royal Mail each hire close to 20,000 staff to cope during this 4-week period.
Warehouse and logistics planning includes many hours of collaboration between suppliers and third-party service providers to ensure a seamless operation. Leaders will have focussed on supply chain visibility. The need to know where items are at any given point vs where they are supposed to be is paramount, so that action can be taken to rectify problems. These companies will have reviewed their track and trace systems and those of their logistics service providers looking for gaps and bottlenecks.
Troubles may arise for companies whose operations have caused them to increase their online presence. Their planning may have been inadequate or too late (not always their fault) and lacking in the necessary level of detail. There is still time to tackle some areas that might cause problems in the next few weeks.
The Supply Chain Consulting Group can help with the unexpected and tackle any unpleasant surprises. Having back-up plans for every activity, professional consultants are ready to deal with potential difficulties your warehouse may face.
For further information visit www.sccgltd.com or call our head office +44 (0)1926 430 883
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